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06/18/2024 PACKET
REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, JUNE 18, 2024 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PROCLAMATIONS PRESENTATIONS Communications Update RECOGNITIONS PUBLIC COMMENT ON AGENDA/CONSENT Citizens may speak on the Consent Agenda and Regular Agenda Items 1-7, 9&10 (or any other topic). Item 8 has already been heard in a Public Hearing therefore, citizens cannot speak on that item. 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 June 4, 2024, City Council meeting minutes. B. Council to consider amending Resolution 24-001 to have a rest the week of July 16, 2024. C. Council consider a resolution approving the annual renewal for server hosting of the Cityworks and ArcGIS servers by NewEdge Services, LLC of Frisco, TX. D. Council consider a resolution approving an annual maintenance agreement from ESO Solutions, Inc. of Dallas, TX that is utilized by Fire and EMS. E. Council consider a resolution authorizing the acceptance of a ten foot (10’) wide non- exclusive Sanitary Sewer Easement. F. Council consider a resolution authorizing the settlement of the claim for Danette Mickens. REGULAR AGENDA 1. Council consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2024, and authorizing the Mayor or City Manager and Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof for both series and to execute all documents related to the sale of the Bonds. 2. Council approve a resolution awarding Hotel Occupancy Tax Grant awards for FY25 funding. 3. Council consider a resolution accepting maintenance of the water improvements in Wesley Addition Subdivision. 4. Council consider a resolution approving the repair of two pumps for the Royal Street Underpass Pump Station. 5. Council consider a resolution authorizing the City Manager to award a contract to Underground Construction Solutions, LLC, of Houston, Texas for the LaBelle Park Waterline Extension (IH – 10 – LNVA Canal to Walden Road). 6. Council consider a resolution accepting maintenance of the street, storm sewer, water, and sanitary sewer improvements in Spring Wood Subdivision, Section 4. 7. Council consider an ordinance denying Texas Gas Service Company proposed rates. 8. Council consider a request to abandon a sanitary sewer easement in Lot 8 of the College Acres Addition. PUBLIC HEARING Council to Conduct a Public Hearing to update the City’s Drought Contingency Plan and Conservation Plan as required every 5 Years by the Texas Water Development Board. Citizens can make Public Comments Regarding Either Plan and the Changes Proposed. The Drought Contingency Plan lays out the Guidelines for Implementing and Enforcing Water use during Periods of High Demand and the Conservation Plan sets Goals to Reduce Water Use Per Capita. Council conduct a public hearing to receive comments related to the property located at 328-338 Bowie Street & 486-498 Pearl Street. REGULAR AGENDA 9. Council consider a resolution adopting the 2024 Water Conservation Plan and the revised Drought Contingency Plan by updating and renewing the City’s commitment to Chapter 22, Article 22.06, of the Code of Ordinances. 10. Council consider an ordinance to declare 328-338 Bowie & 486-498 Pearl Street, also known as “The Gilbert Building,” as Imminent Danger and order the owner to raze the said structure within 5 days. If the property owner fails to comply within 5 days, staff is requesting City Council authorization to demolish said structure without further notification to the property owner or City Council action. WORK SESSION Council to Discuss Current Airport Operations and Proposed Hangar Improvements. 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: June 18, 2024 REQUESTED ACTION: Council to consider approving the June 4, 2024, City Council meeting minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the Minutes. ATTACHMENTS Minutes - June 4, 2024 Minutes – June 4, 2024 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 JUNE 4, 2024 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 June 4, 2024, 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 1-3 & 9. (or any other topic). Items 4-8 have already been heard in a Public Hearing therefore, citizens can’t speak on those items. Mayor West called the council meeting to order at 1:30 p.m. Andrew Wilson with Revival Culture 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, Councilmembers Durio, Getz, Feldschau and Samuel. Absent: Mayor Pro Tem Turner and Councilmember Neild. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation and Recognition “National Men’s Health Month” – June 2024 – Accepting; Norma Sampson, Executive Director with Gift of Life along with Regina Rogers, Founder of Gift of Life Public Comment: Persons may speak on the Consent Agenda/Regular Agenda Items 1-3 & 9. (or any other topic). Items 4-8 have already been heard in a Public Hearing therefore, citizens can’t speak on those items. (Public comments can be heard or seen at the City of Beaumont website at beaumonttexas.gov) Michelle Modica 3200 16th St. #116 Washington DC Charlie Crabbe 925 East Dr. Beaumont TX Minutes – June 4, 2024 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 May 21, 2024, City Council Meeting minutes. B. Council to consider a resolution approving the purchase of a projector and screen for the Jefferson Theatre – Resolution 24-133 C. Council to consider a resolution approving the purchase of the Axon Unlimited Transcription tool from Axon Enterprise of Scottsdale, AZ – Resolution 24-134 D. Council to consider a resolution renewing the authorized grant officials for the Southeast Texas Auto Theft Task Force to receive funding for the Task Force grant program through the Motor Vehicle Crime Prevention Authority for the 2025 grant year – Resolution 24- 135 E. Council to consider a resolution changing authorized representatives for our Southside Bank Business Platinum Advantage Investment Money Market Checking Account – Resolution 24-136 F. Council to consider a resolution to approve the purchase of GoodSAM software as a service from GoodSAM Instant.Help, based in London, for use by public safety dispatchers – Resolution 24-137 G. Council to consider a resolution to approve a Master Service Agreement with Trinnex, based in Manchester, NH, for the leadCAST® Predict data collection system, which will be utilized by Water Utilities – Resolution 24-138 Councilmember Feldschau moved to approve the Consent Agenda. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED REGULAR AGENDA 1. Council to consider a resolution authorizing the City Manager to execute Change Order No. 3, accept maintenance, and authorize final payment to Viking Industrial Painting, LLC, of La Vista, NE, for the Southwest Elevated Storage Tank Rehabilitation Project. On April 18, 2023, by Resolution No. 23-104, the City Council awarded a contract to Viking Painting, LLC, of La Vista, Nebraska, in the amount of $1,348,440.00, for the Southwest Elevated Storage Tank Rehabilitation Project. Minutes – June 4, 2024 Previous Change Order Nos. 1-2 had no dollar amount. Proposed Change Order No. 3, in the amount of ($14,545.20), is required to adjust the estimated quantities in the contract to reflect the actual quantities used and the addition of 57 calendar days to reflect the actual time used in the completion of the project. If approved, the final contract amount will be $1,333,894.80. 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. 3, maintenance, and final payment in the amount of $61,922.70 is recommended. Funds will come from the Water Revenue Bonds. Approval of the resolution. Councilmember Getz moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 3, IN THE AMOUNT OF ($14,545.20), THEREBY DECREASING THE TOTAL CONTRACT AMOUNT TO $1,333,894.80 FOR THE SOUTHWEST ELEVATED STORAGE TANK REHABILITATION PROJECT, AND THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO MAKE FINAL PAYMENT IN THE AMOUNT OF $61,922.70 TO VIKING PAINTING, LLC, OF LA VISTA, NEBRASKA. Councilmember Durio seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED RESOLUTION 24-139 2. Council to consider a resolution approving the emergency repair of a pump for Royal Street Underpass Pump Station. Royal Underpass Pump Station pumps storm water from Dr. Martin Luther King, Jr. (MLK) Parkway in the section between Franklin St and College St. The station operates four (4) submersible pumps. Due to the age of the pumps and the abrasive nature of the storm water, the pumps began to fail and need significant repairs to continue to function until new pumps can be acquired. The station is currently operating with one pump, supplemented by three (3) temporary pumps. Triangle Rotating Equipment Specialists of Nederland, TX, was hired to repair a second pump, transport it to their repair shop, inspect the pump, and determine what repairs, if any, were required. The repair scope is to blast and prime all parts; clean, rewind, dip, and bake the motor; replace all bearings; repair all seals and furnish new O-rings; reassemble motor and pump; test run start up. The cost to perform the work is $51,439.29. Funds will come from the Certificates of Obligation. Minutes – June 4, 2024 Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO AWARD A CONTRACT TO TRIANGLE ROTATING EQUIPMENT SPECIALISTS, OF NEDERLAND, TEXAS, FOR THE EMERGENCY REPAIR OF A PUMP FOR THE ROYAL STREET UNDERPASS PUMP STATION IN THE AMOUNT OF $51,439.29. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED RESOLUTION 24-140 3. Council to consider a resolution authorizing the City Manager to accept maintenance and authorize final payment to Aranda Industries, LLC, for the Caldwood Area Storm Sewer Point Repairs (REBID) Project. On December 19, 2023, by Resolution No. 23-391, the City Council awarded a contract to Aranda Industries, LLC, of Houston, in the amount of $93,000.00, for the Caldwood Area Storm Sewer Point Repairs (REBID) Project. Previous Change Orders Nos. 1 - 2, in the amount of $8,983.00. Proposed Final Change Order No. 3, in the amount of $5,000.00, is needed to adjust the estimated quantities in the contract to reflect the actual quantities used in the completion of the project. If approved, the adjustment in quantities would result in a final contract amount of $106,983.00. 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 Final Change Order No. 3, maintenance, and final payment in the amount of $11,490.90 is recommended. Funds will come from the Certificates of Obligation. 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. 3, IN THE AMOUNT OF $5,000.00, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT TO $106,983.00 FOR THE CALDWOOD AREA STORM SEWER POINT REPAIRS (REBID) PROJECT AND THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO MAKE FINAL PAYMENT IN THE AMOUNT OF $11,490.90 TO ARANDA INDUSTRIES, LLC, OF HOUSTON, TEXAS. Councilmember Getz seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL Minutes – June 4, 2024 NAYS: NONE MOTION PASSED RESOLUTION 24-141 4. Council to consider a request to abandon a portion of Cottonwood Avenue right-of-way located south of 2505 Gulf Street, between Gulf Street and Jirou Street. The City of Beaumont is requesting to abandon a portion of the right-of-way located south of 2505 Gulf Street, between Gulf Street and Jirou Street. The right-of-way is approximately 60’ x 300’ and the City has no plans to develop the unimproved right-of- way, and it appears surrounding properties have been using the area in relation to their businesses. At a Joint Public Hearing held on May 20, 2024, the Planning Commission recommended 8:0 to approve the request to abandon a portion of Cottonwood Avenue right-of-way for property located south of 2505 Gulf Street, between Gulf Street and Jirou Street, with the following conditions: 1. The City of Beaumont will retain a utility and access easement for the full width of the existing right-of-way for both existing water and sewer utilities. 2. No permanent structures or appurtenances shall be placed within the easement property. Approval of the ordinance, with the following conditions: 1. The City of Beaumont will retain a utility and access easement for the full width of the existing right-of-way for both existing water and sewer utilities. 2. No permanent structures or appurtenances shall be placed within the easement property. Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ABANDONING A PORTION OF COTTONWOOD AVENUE RIGHT-OF-WAY LOCATED SOUTH OF 2505 GULF STREET BETWEEN GULF STREET AND JIROU STREET, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED ORDINANCE 24-023 5. Council to consider a request for a Specific Use Permit to allow an event center in the CBD (Central Business District) for property located at 515 Magnolia Avenue. Minutes – June 4, 2024 Ebonia Winfield is requesting a Specific Use Permit to operate an event center in the CBD (Central Business District). TPB Studio will operate as an event center or venue offering flexible space configurations for gatherings of different sizes. The Central Business District is intended to accommodate the commercial offices and service, residential and public activities. The use of an event center at this location will promote pedestrian activity and aid in economic growth of the downtown area. Although the CBD district does not have parking requirements, our City’s Traffic Engineer has concerns that on-street parking could become overcrowded and prevent emergency services access during larger events. At a Joint Public Hearing held on May 20, 2024, the Planning Commission recommended 8:1 to approve the request for a Specific Use Permit to allow an event center in the CBD (Central Business District) for property located at 515 Magnolia Avenue, with the following conditions: 1. Construction plans must meet all requirements by Water Utilities for water and sanitary sewer services, including any requirements of the City’s backflow, pre-treatment and/or FOG program. 2. Construction plans shall comply with all applicable Fire and Building Code requirements. 3. To ensure safety and prevent future parking issues during large events, the owner will need to submit a written parking agreement with nearby property owners to ensure proper overflow parking. It will be the responsibility of the owner to enforce overflow parking during events. Approval of the ordinance, with the following conditions: 1. Construction plans must meet all requirements by Water Utilities for water and sanitary sewer services, including any requirements of the City’s backflow, pre-treatment and/or FOG program. 2. Construction plans shall comply with all applicable Fire and Building Code requirements. 3. To ensure safety and prevent future parking issues during large events, the owner will need to submit a written parking agreement with nearby property owners to ensure proper overflow parking. It will be the responsibility of the owner to enforce overflow parking during events. Approval of the ordinance. Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT TO ALLOW AN EVENT CENTER WITHIN THE CBD (CENTRAL BUSINESS DISTRICT) FOR PROPERTY LOCATED AT 515 MAGNOLIA AVENUE, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL Minutes – June 4, 2024 NAYS: NONE MOTION PASSED ORDINANCE 24-024 6. Council to consider a request for a Specific Use Permit to allow a mother-in-law suite in an RS (Residential Single-Family Dwelling) District for property located at 165 Manor Street. Matthew Thompson is requesting a Specific Use Permit to allow a mother-in-law suite to remain at 165 Manor Street. This property is located within the RS (Residential Single- Family Dwelling) District and as such a two-family dwelling requires a Specific Use Permit. When purchased by Mr. Thompson the existing structure had all utilities connected as it was a utility shed. Mr. Thompson made minor alterations to the existing structure, converting the existing structure into a dwelling unit. Mr. Thompson is selling the property and to ensure compliance with the City of Beaumont he is seeking approval of the unit. At a Joint Public Hearing held on May 20, 2024, the Planning Commission recommended 9:0 to approve the request for a Specific Use Permit to allow a mother-in-law suite in an RS (Residential Single-Family Dwelling) District for property located at 165 Manor Street, with the following condition: 1. The mother-in-law suite shall not be used as individual rental property. Said condition shall be disclosed to the buyer at the time of sale of this property. Approval of the ordinance, with the following condition: 1. The mother-in-law suite shall not be used as individual rental property. Said condition shall be disclosed to the buyer at the time of sale of this property. Approval of the ordinance. Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT TO ALLOW A MOTHER-IN-LAW SUITE WITHIN AN R-S (RESIDENTIAL SINGLE- FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 165 MANOR STREET, WITH THE CONDITION, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED ORDINANCE 24-025 7. Council to consider a request for an Amended Specific Use Permit to expand a parking lot for Nutrition Services in an RM-M (Residential Multiple Family-Medium Density) District for property located at 4590 Concord Road. Minutes – June 4, 2024 Janci Kimball of Nutrition and Services requests approval of an Amended Specific Use Permit to allow a parking lot expansion at their property located at 4590 Concord Road. Nutrition and Services has served Jefferson and Hardin County for over forty (40) years, providing meals to seniors daily, transportation to life-sustaining appointments and grocery programs. The request to expand the parking lot will be intended to serve as additional parking to the establishment in conjunction with the existing site. At a Joint Public Hearing held on May 20, 2024, the Planning Commission recommended 9:0 to approve the request for an Amended Specific Use Permit to expand a parking lot for Nutrition Services in an RM-M (Residential Multiple Family-Medium Density) District for property located at 4590 Concord Road. Approval of the ordinance. Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE PERMIT TO EXPAND A PARKING LOT FOR NUTRITION AND SERVICES IN A RM-, (RESIDENTIAL MULTIPLE FAMILY-MEDIUM DENSITY) DISTRICT FOR PROPERTY LOCATED AT 4590 CONCORD ROAD IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Feldschau seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED ORDINANCE 24-026 8. Council to consider a request for a Rezoning from RM-H (Residential Multiple Family- Highest Density) District and NC (Neighborhood Commercial) District to GC-MD (General Commercial-Multiple Family Dwelling) District for properties located at 7090 Phelan Boulevard and 7095 Prutzman Road. Gerald Callas of Kare Infusion is requesting approval for a Rezoning from RM-H (Residential Multiple Family-Highest Density) and NC (Neighborhood Commercial) District to GC-MD (General Commercial-Multiple-Family Dwelling) District for the properties located at 7090 Phelan Boulevard and 7095 Prutzman Road. The intent of the request is to rezone the properties to allow for more amenities along Phelan Boulevard and expansion of the parking lot of the existing business to Prutzman Road. Furthermore, Phelan Boulevard is categorized as a major arterial and common planning practices encourage commercial uses along such roadways. At a Joint Public Hearing held on May 20, 2024, the Planning Commission recommended 9:0 to approve the request for a Rezoning from RM-H (Residential Multiple Family- Highest Density) District and NC (Neighborhood Commercial) District to GC-MD (General Commercial-Multiple Family Dwelling) District for property located at 7090 Phelan Boulevard and 7095 Prutzman Road. Approval of the ordinance. Minutes – June 4, 2024 Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RM-H (RESIDENTIAL MULTIPLE FAMILY-HIGHEST DENSITY) DISTRICT AND NC (NEIGHBORHOOD COMMERCIAL) DISTRICT TO GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTIES LOCATED AT 7090 PHELAN BOULEVARD AND 7095 PRUTZMAN ROAD, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Durio seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED ORDINANCE 24-027 PUBLIC HEARING Council to conduct a Public Hearing regarding a grant application and execute a contract with the Federal Transit Administration (FTA) to receive the remaining apportionment of Operating Assistance funds for the BMT Zip. Public Hearing Open: 2:02 p.m. None Public Hearing Close: 2:02 p.m. REGULAR AGENDA 9. Council to consider a resolution authorizing the City Manager to submit a grant application and execute a contract with the Federal Transit Administration (FTA) to receive the remaining apportionment of Operating Assistance funds for the BMT Zip. The City of Beaumont through its transit operator the BMT Zip has prepared a grant application for FY2024 partial grant funds from the FTA. The partial grant will help fund labor, fringe benefits, vehicles, parts and supplies, purchased services, utilities, insurance, licenses, and all other miscellaneous expenses needed for the operation and maintenance of the BMT Zip incurred in FY2024. In addition, funds will be used for bus stop benches and shelters, automatic gate to bus yard, shop lift, credit card processing software and hardware, fueling area canopy, tractor mower and an ADA ramp to transit headquarters facility. The partial grant period runs from March 1, 2024, to September 30, 2024. Funds will come from the Federal Transit Administration. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO SUBMIT A GRANT APPLICATION AND EXECUTE A CONTRACT WITH THE Minutes – June 4, 2024 FEDERAL TRANSIT ADMINISTRATION (FTA) TO RECEIVE THE REMAINING APPORTIONMENT OF OPERATING ASSISTANCE FUNDS FOR THE BEAUMONT ZIP. Councilmember Feldschau seconded the motion. AYES: MAYOR WEST, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: NONE MOTION PASSED RESOLUTION 24-142 COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen at the City of Beaumont website at beaumonttexas.gov) With there being no Executive Session, the meeting adjourned at 2:06 p.m. Roy West, Mayor Tina Broussard, City Clerk B TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Tina Broussard, City Clerk MEETING DATE: June 18, 2024 REQUESTED ACTION: Council to consider amending Resolution 24-001 to have a rest the week of July 16, 2024. BACKGROUND Council to consider amending Resolution 24-001 to have a rest the week of July 16, 2024. A revised City Council Meeting Calendar is attached. FUNDING SOURCE None RECOMMENDATION Approval of the resolution. ATTACHMENTS Resolution 24-001 Revised 2024 City Council Meeting Calendar 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 approve a rest the week of July 16, 2024, and to approve the calendar for the remainder of FY2024 for the City Council meetings, this calendar will be posted on the City’s website. The attachment is substantially in the form attached hereto as Exhibit "A," and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _____________________________ - Mayor Roy West - RESOLUTION NO. 24- 001 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and lie is hereby, authorized to approve a calendar for the remainder of FY2024 for the City Council meetings, this calendar will be posted on the City' s website. The attachment is substantially in the form attached hereto as Exhibit " A," and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Governn- ient Code, Chapter 551. 2024. PASSED BY THE CITY COUNCIL of the City of Beaumont tl s the 9th day of January, Mayor Roy West - Sun Mon Tues Wed Thur Fri Sat 2125 2023 121.2672023 1212712023 1212812023 1212912023 1213012023 Holiday 12I3112023 1 2 3 4 5 6 P 7 8 9 10 11 12 13 1: 33 PM Ely counci€ 44 mmmaAS Y o © y 16 17 16 19 20 21 221 23 24 25 26 27 F: 3fl PM city council 28 29 30 31 Sun Mon Tues Wed Thur Fri Sat 1 2 3 4 5 6 We PM city council 7 6 9 10 11 12 13 14 15 16 17 18 iml9 Holiday 20 1: 30 PM city Council 21 22 23 24 26 26 27 28 29 i Sun MoQj Tues Wed Thur Fri Sat 1 2 3 4 5 6 7 8 9 1: 30 PM city council 10 11 12 13 14 15 16 17 18 19 20 21 22 23 i:30 PM City Council 24 25 26 27 2$ 29 30 Hol{ day 31 Sun I Mon Toes Wed Thur Fri I Sat 1 2 3 4 5 6 1: 30 PM City Council 7 8 9 10 11 12 13 14 15 16 17 18 19 20 130PM City Council 21 22 23 24 25 26 27 26 29 30 5: 30 PM City counclt WRINAPTOW Sun I Mon I Tues I Wed Thur Fri Sat 1 2 3 4 5 6 7 1130 PM Sun Mon Tues Weal Thur Fri Sat 1 2 3 4 5 B 1: 30 PM City Council Holiday 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1130 PM Chy Coontil 21 22 23 24 25 26 27 28 29 30 31 5: 30 PM C#ty Councli Sun Mon Tues Wed Thur Fri Sat 1 2 3 4 5 6 1: 30 PM City Council 7 8 9 10 11 12 13 14 15 16 11 18 19 20 1! 3fl PM City council 21 22 23 24 25 26 27 28 29 30 31 N r _ Sun Mon Tues Wed Thur Fri Sat 1 2 Holiday 3 1: 30 PM City Caundl k 5 6 7 T 9 10 11 12 13 14 15 16 17 1: 30 PM City Council 18 19 20 21 22 23 24 25 26 27 28 29 30 Sun Mon I Tues Wed I Thur I Fri I Sat 1 2 3 4 5 1: 3e PM City Council 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1: 30 PM city Council 20 21 22 23 24 25 26 27 28 29 30 31 5: 30 PM City Council Sun I Mon I Tues I Wed- 1 Thur Fri Sat 1 2 3 4 5 6 7 8 9 1130 PM City CounC3 10 All 12 13 14 15 16 Holiday 17 18 19 20 21 22 23 1: 30 PM City Councli 24 25 26 27 28 29 30 Holiday Holiday Sun Mon I Tues Wed I Thur Fri Sat 1 2 3 4 5 6 7 1; 30 PM City Counc9 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1: 30 PM city cound! 22 23 24 IW5 26 27 28 Holiday 29 30 31 jL11202ti Im 11212025 102025 1/ 4/ 2025 Holiday C:\Usersljackie.gunner\ Desklop\Council Ceiandar 2024.xlsx CRY counci€ 8 9 10 41 12 13 14 15 16 17 18 19 20 21 1: 30 PM City Council 22 23 24 25 26 M7 Holiday 28129 30 31 J U N E 2024 Sun Mon I Tues I Wed Thur Fri Sat 1 2 3 4 1: 30 PM City Council 5 6 7 a 9 10 11 42 13 14 15 16 17 18 1t3C PM city Council 19 Holiday 20 21 22 23 24 25 26 27 28 20 30 C: 1Usersllackie. gunnerlDeskloplCouncil Calendar 2024.xlsx C TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Angela Wright, Chief Technology Officer MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution approving the annual renewal for server hosting of the Cityworks and ArcGIS servers by NewEdge Services, LLC of Frisco, TX. BACKGROUND NewEdge Services, LLC is the City's designated vendor for implementation and server hosting of Cityworks software, providing implementation and support services for both Cityworks and ArcGIS. These essential products must be accessible both onsite for City employees and offsite for citizens and field workers. To leverage the high availability of cloud server options and maximize the benefits of our partnership with NewEdge, the Cityworks and ArcGIS servers are managed through the NewEdge cloud hosting service. This agreement spans an annual period beginning in April 2024, with a total cost of $95,000. FUNDING SOURCE General Fund and Water Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS City of Beaumont #3290.pdf 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 renew an annual contract for server hosting of the Cityworks and ArcGIS servers with NewEdge Services, LLC, of Frisco, Texas in the amount of $95,000.00. 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 18th day of June, 2024. _______________________________ - Mayor Roy West - INVOICE BALANCE DUE $95,000.00 Please note: For Texas entities, Texas Government Code, Chapter 2251 (Texas Prompt Payment Act) stipulates that all local governments shall pay for goods and services within thirty (30) days of the invoice date or interest is automatically imposed. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. IF EFT is not being used, please send payment to: NewEdge Services, LLC P.O. Box 5473 Frisco, TX 75035 INVOICE TO: City of Beaumont Attention: Angela Wright 801 Main Street, Suite 330 Beaumont, Texas 77701 USA INVOICE # 3290 DATE 04/07/2024 TERMS Net 30 PO 433472 DESCRIPTION AMOUNT Cityworks Cloud Hosting May 1, 2024 - April 31, 2025 50,000.00 Enterprise GIS Cloud Hosting May 1, 2024 - April 31, 2025 45,000.00 D TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Angela Wright, Chief Technology Officer MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution approving an annual maintenance agreement from ESO Solutions, Inc. of Dallas, TX that is utilized by Fire and EMS. BACKGROUND Fire and EMS utilize the ESO Electronic Health Record (EHR) suite for patient care reporting (PCR), quality management, analytics, patient tracking, state and federal data reporting, automatic faxing of PCR data to hospitals, dispatch system integration, billing system integration, and personnel management. This procurement is not subject to competitive bidding as the software is exclusively provided by a single source with sole rights for modification and maintenance. The contract amount of $53,589.07 is for an annual renewal, effective from July 4, 2024. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS Invoice_ESO-142162.pdf 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 approve an annual maintenance agreement from ESO Solutions, Inc., of Dallas, Texas in the amount of $53,589.07. 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 18th day of June, 2024. _______________________________ - Mayor Roy West - Please send payments to: ESO Solutions, Inc. PO Box 679449 Dallas, TX 75267-9449 Invoice Date: 6/4/2024 Invoice # ESO-142162 Terms Net 30 Due Date 7/4/2024 PO# 1 of 2 Bill To Ship To City of Beaumont Public Health EMS 2870 Laurel Beaumont TX 77702 United States Angela.Wright@beaumonttexas.gov City of Beaumont Public Health EMS 2870 Laurel Beaumont TX 77702 US Item From To QTY UOM List Amount Discount Total ESO EHR Suite Patient care reporting suite, includes EHR web and mobile client, Quality Management, AdHoc Reports, Analytics, Patient Tracker. Allows for unlimited users, unlimited mobile applications, live support, state and federal data reporting, ongoing weekly web training, software updates and upgrades. 7/4/2024 7/3/2025 25,000 Incidents USD $40,824.65 USD $0.00 USD $40,824.65 EHR Fax Enables faxing of patient care records to destination facilities. 7/4/2024 7/3/2025 25,000 Incidents USD $3,223.94 USD $0.00 USD $3,223.94 EHR Cardiac Monitor Integration Cardiac monitors integration. Allows for import of cardiac monitor data via local or cloud integration. Ongoing maintenance included. Unlimited connections. 7/4/2024 7/3/2025 25,000 Incidents USD $2,262.73 USD $0.00 USD $2,262.73 EHR CAD Integration Allows for integration of CAD data into EHR mobile and web application. Ongoing maintenance included. Additional fees from your CAD vendor may apply. 7/4/2024 7/3/2025 25,000 Incidents USD $4,770.24 USD $0.00 USD $4,770.24 EHR Billing Interface Allows for integration of discrete ePCR data into third-party billing software. Ongoing maintenance included. 7/4/2024 7/3/2025 25,000 Incidents USD $1,188.09 USD $1,188.09 USD $0.00 Personnel Management Includes tracking of Training classes, certifications, credentials, immunization records. Integrated with ESO EHR and Ad Hoc Reporting. 7/4/2024 7/3/2025 50 Employees USD $2,507.51 USD $0.00 USD $2,507.51 Please send payments to: ESO Solutions, Inc. PO Box 679449 Dallas, TX 75267-9449 Invoice Date: 6/4/2024 Invoice # ESO-142162 Terms Net 30 Due Date 7/4/2024 PO# 2 of 2 Invoice Message: ACH/EFT bank information: PNC Bank Routing: 031207607 Account Number: 8026412499 Swift Code: PNCCUS33 Check Remittance lockbox address: ESO Solutions, Inc. PO Box 679449 Dallas, TX 75267-9449 Total (Without Tax): USD $53,589.07 Tax: USD $0.00 Grand Total: USD $53,589.07 Amount Paid/Credit: USD $0.00 Total Recurring: USD $53,589.07 Total One-Time: Invoice Balance: USD $53,589.07 Please submit payment remittances to accountsreceivable@eso.com to ensure correct invoice application. Amounts invoiced are per your agreement(s) which may include annual uplift and an increase in quantities based on usage overages. Your payment of this invoice serves as acceptance of such increases. Questions? Contact: AccountsReceivable@eso.com 866-766-9471 option 8 Tax ID: 36-4566209 ESO will never e-mail you soliciting payment information. Please call us or e-mail AccountsReceivable@eso.com if you have any questions or wish to make a change. This invoice presents the total net price of the product(s) and/or service(s) which is inclusive (net) of any discount. As the buyer of such product(s)/service(s), you may have additional reporting obligations to federal or state health care programs (including pursuant to 42 CFR 1001.952(h)) and/or upon inquiry by the HHS Secretary or other state or federal agencies. As the buyer, you must adhere to any other relevant federal or third-party payer requirements. For a 3% fee, pay via Card Direct Card Payment Link: https://app.suitesync.io/payments/acct_1FelgtGvY2g6ha8S/custinvc/7284767/?amount=5519674.21 Pay via Online Bank Transfer Direct Bank Transfer Link: https://app.suitesync.io/payments/acct_1FelgtGvY2g6ha8S/custinvc/7284767/?card=false E TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a ten foot (10’) wide non-exclusive Sanitary Sewer Easement. BACKGROUND O’Reilly Auto Enterprises, LLC, has agreed to convey a ten foot (10’) wide non-exclusive Sanitary Sewer Easement to the City of Beaumont. The easement is described as being a 0.0630 acre tract out of the David Brown League, Abstract No. 5, Jefferson County, Texas. The sanitary sewer easement is to relocate an existing sanitary sewer line for a new auto parts store located at 4595 College Street. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. ATTACHMENTS Sanitary Sewer Easement RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, O’Rilley Auto Enterprises, LLC, has agreed to convey a ten (10’) foot wide non-exclusive Sanitary Sewer Easement to the City of Beaumont, said easement being a 0.0630 acre tract out of the David Brown League, Abstract No. 5, Jefferson County, Beaumont, Texas, as described in Exhibit “A,” and attached hereto, to the City of Beaumont for a new parts store located at 4595 College Street; and, WHEREAS, the City Council has considered the purpose of said conveyance and is of the opinion that the acceptance of said conveyance is 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 easement conveyed from O’Reilly’s Auto Enterprises, LLC, be and the same is hereby, in all things, accepted. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _____________________________ - Mayor Roy West - F TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Sharae Reed, City Attorney MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution authorizing the settlement of the claim for Danette Mickens. BACKGROUND The claim of Danette Mickens was presented and discussed in Executive Session held on May 21, 2024. The City Attorney is requesting authority to settle this suit in the amount of $32,000.00. FUNDING SOURCE General Liability Fund RECOMMENDATION Approval of the resolution ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, the claim of Danette Mickens was discussed in Executive Session properly called and held on Tuesday, May 21, 2024; and, WHEREAS, the City Attorney is requesting authority to settle this claim; 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 claim of Danette Mickens for the sum of Thirty-Two Thousand and 0/100 Dollars ($32,000.00); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the claim. 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 18th day of June, 2024. _____________________________ - Mayor Roy West - 1 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Cheryl Ray, Chief Financial Officer MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2024, and authorizing the Mayor or City Manager and Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof for both series and to execute all documents related to the sale of the Bonds. BACKGROUND As presented in a work session during the budget process, $60 million is required to complete projects related to water and sewer infrastructure improvements that are currently under construction and/or design. With the quickly changing financial markets, the most favorable time to enter the market may not be the day before a City Council meeting. Instead, the ability of a local government to time its entry into the financial markets and thereby obtain the best borrowing terms can significantly impact the borrowing costs. Section 1207.007 Texas Government Code allows a City to enter into the bond market at any time in accordance with parameters established and approved by the City Council. Through a parameter bond ordinance, a Council delegates final pricing authority to a Pricing Officer, usually the Mayor or City Manager, CFO and/or City Manager’s Designee, and establishes and approves bond sale parameters such as maximum interest rate, minimum savings threshold for refunding, maximum aggregate principal amount of issue, final maturity date and expiration of delegated authority which is normally six (6) months. The Pricing Officer can only approve the sale if all parameters are met. This results in flexibility such that the bond issue may be priced at any time and in an interest rate environment that is advantageous to the City rather than being locked into pricing on the date of Council meetings. The proposed parameters included in the proposed ordinance for Series 2024, as described above, includes: Delegated Pricing Officers: Mayor or City Manager and Chief Financial Officer Maximum Principal Amount Series 2024: $60 million Interest Rate: Not greater than 6.0% per annum Expiration of Parameter Authority: December 15, 2024 Interest will be payable semiannually in March and September beginning March 1, 2025. FUNDING SOURCE Water Utilities Fund RECOMMENDATION Approval of the ordinance. ATTACHMENTS ORDINANCE NO. ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024 IN ONE OR MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED; AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING THERETO; PROVIDING FOR THE PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS. THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS, The City of Beaumont, Texas (the “City”) is authorized, pursuant to Chapters 1371 and 1502, Texas Government Code, as amended, to issue bonds, without election, payable from the net revenues of its waterworks and sewer system to provide money for acquisitions, purchases, expansions, extensions, construction, reconstruction, renovation, equipping, and improvement of such system; and, WHEREAS, the City now desires to issue bonds in order to provide funds to finance the expansion, repair, renovation and related improvements to the City’s waterworks and sewer system; and, WHEREAS, by this Ordinance the City Council of the City (the “City Council”) is authorizing the issuance of its bonds in the principal amount not to exceed $60,000,000.00; and, WHEREAS, the City shall by this Ordinance, in accordance with the provisions of Chapter 1371 and 1502, Texas Government Code, as amended, delegate to a Pricing Officer (hereinafter designated) the authority to determine the principal amount of Bonds to be issued and negotiate the terms of sale thereof; and, WHEREAS, the City Council hereby finds and determines that it is a public purpose and in the best interests of the City to issue the Bonds with such terms to be included in a pricing certificate (the “Pricing Certificate”) to be executed by the Pricing Officer, all in accordance with the provisions of Chapters 1371 and 1502, Texas Government Code, as amended; and, WHEREAS, the City Council hereby finds that it may purchase a credit agreement in the form of a municipal bond insurance policy or policies with respect to the Bonds if it deems such purchase is cost effective; and, WHEREAS, the bonds to be issued pursuant to the terms and provisions of this Ordinance will be secured by a pledge of and lien on the Net Revenues (as hereinafter defined); and, WHEREAS, the City is a home-rule municipality that: (i) adopted its charter under Section 5, Article XI, Texas Constitution; (ii) has a population of more than 50,000 and (iii) has outstanding long-term indebtedness that is rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for a long-term obligation. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: 1. Findings and Determinations. It is hereby found and determined that the matters and facts contained in the preamble to this Ordinance are hereby found to be true and correct. 2. Definitions. Throughout this ordinance the following terms and expressions as used herein shall have the meanings set forth below: The term “Additional Parity Bonds” shall mean any credit agreement created pursuant to Section 27 herein or additional bonds issued with the same priority lien as the Bonds. The term “Average Annual Debt Service Requirements” shall mean the average annual debt service for the Parity Bonds. The term “Blanket Issuer Letter of Representations” means the Blanket Issuer Letter of Representations between the City and Depository Trust Company, of New York, New York, or any successor securities depository. The term “Bond Insurer” shall mean any third-party financial institution that provides a credit agreement in the form of a municipal bond insurance policy as provided herein. The term “Bond Register” shall mean the books of registration kept by the Registrar in which are maintained the names and addresses of, and the principal amounts of the Bonds registered to, each Owner. The terms “Bonds” shall mean the City of Beaumont, Texas Waterworks and Sewer System Revenue Bonds, Series 2024. The term “Business Day” shall mean any day which is not a Saturday, Sunday, a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent/Registrar or Bond Insurer, if any, is located, are authorized or required by law or executive order to close, or a legal holiday. The term “City” shall mean The City of Beaumont, Texas. The term “Closing Date” means the date of the initial delivery of and payment for the Bonds. The term “Code” means the Internal Revenue Code of 1986, as heretofore and hereafter amended and, with respect to a specific section thereof, such reference shall be deemed to include (a) the Regulations promulgated under such section, (b) any successor provision of similar import hereafter enacted, (c) any corresponding provision of any subsequent Internal Revenue Code, and (d) the Regulations promulgated under the provisions described in (b) and (c). The term “Comptroller” means the Comptroller of Public Accounts of the State of Texas. The term “DTC” means The Depository Trust Company of New York, New York, or any successor securities depository. The term “DTC Participant” means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. The term “Gross Revenues” shall mean all revenues, income and receipts of every nature derived or received by the City from the operation and ownership of the System (but excluding any utility deposits) and the interest income from the investment or deposit of money in the Revenue Fund, and the Interest and Sinking Fund. The term “Insurance Policy” shall have the meaning assigned to that term in Section 27 of this Ordinance. The term “Insured Bonds” shall mean the Bonds during the time period in which the payment of principal and interest in connection with such bonds is guaranteed by the Bond Insurer. The term “Interest Payment Date”, when used in connection with any Bond, shall mean March 1 and September 1 of each year, beginning March 1, 2025, and continuing thereafter until maturity or earlier redemption of such Bond. The term “Issuer” shall mean the City. The term “Maintenance and Operation Expenses” shall mean the reasonable and necessary expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, and all payments under contracts, now or hereafter defined as operating expenses by the Legislature of the State of Texas. Depreciation shall never be considered as a Maintenance and Operation Expense. The term “MSRB” shall mean the Municipal Securities Rulemaking Board. The term “Net Revenues” shall mean all Gross Revenues remaining after deducting the Maintenance and Operation Expenses. The term “Ordinance” as used herein and in the Bonds shall mean this ordinance authorizing the Bonds and all amendments and supplements hereto. The term “Outstanding” shall mean, in connection with the Bonds, any Bonds that remain outstanding until maturity, refunding or defeasance. The term “Owner” shall mean any person who shall be the registered owner of any Bonds. The term “Parity Bonds” shall mean the Bonds, the City’s outstanding Waterworks and Sewer System Revenue Bonds, Series 2014A and 2014B, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Series 2015A, the City’s Waterworks and Sewer System Revenue Bonds, Series 2017, the City’s Waterworks and Sewer System Revenue and Refunding Bonds, Series 2020A, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Taxable Series 2020B, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Taxable Series 2022, the City’s Waterworks and Sewer System Revenue Bonds, Series 2023 and any Additional Parity Bonds. The term “Paying Agent” for the Bonds shall mean the Registrar. The term “Pricing Certificate” shall mean a certificate or certificates to be signed by the Mayor, the City Manager or the Chief Financial Officer of the City pursuant to Section 5 hereof and delivered to the City Clerk, in substantially the form attached hereto as “Exhibit A.” The term “Pricing Officer” shall mean the Mayor, City Manager, or Chief Financial Officer of the City. The term “Record Date” shall mean, for any Interest Payment Date, the fifteenth (15th) calendar day of the month next preceding each Interest Payment Date. The term “Registrar” shall mean UMB Bank, N.A., Houston, Texas, and its successors in that capacity. The term “Regulations” means the applicable proposed, temporary or final Treasury Regulations promulgated under the Code or, to the extent applicable to the Code under the Internal Revenue Code of 1954, as such regulations may be amended or supplemented from time to time. The term “Reserve Fund Requirement” shall mean an amount equal to the average annual principal and interest requirement on the Parity Bonds, which may be determined and redetermined each year by the City but in no event less frequently than upon the issuance of each series of Parity Bonds. The term “Rule” shall mean SEC Rule 15c-12, as amended from time to time. The term “SEC” shall mean the United States Securities and Exchange Commission. The term “Special Project” shall mean, to the extent permitted by law, any property, improvement or facility declared by the City not to be part of the System and substantially all of the costs of the acquisition, construction and installation of which is paid from proceeds of a financing transaction other than the issuance of bonds payable from ad valorem taxes or Net Revenues of the System, and for which all maintenance and operation expenses are payable from sources other than revenues of the System, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction and installation under such financing transaction. The term “System” shall mean all properties, facilities, improvements, equipment, interests and rights constituting the waterworks and sewer system of the City, including all future extensions, replacements, betterments, additions, improvements, enlargements, acquisitions, purchases and repairs to the System, but excluding all Special Projects. The term “Underwriter” shall mean the underwriting syndicate identified in the Pricing Certificate. 3. Authorization. The Bonds shall be issued in fully registered form in the total authorized aggregate principal amount not to exceed SIXTY MILLION AND NO/100 DOLLARS ($60,000,000.00) for the purpose of providing funds to (i) finance capital expenditures acquisition, purchase, construction, reconstruction, improvement, renovation, expansion, or equipping of property, buildings, structures, facilities, or related infrastructure for the City’s waterworks and sewer system (the “Project”), and (ii) pay costs of issuance of the Bonds. 4. Designation, Date, and Interest Payment Dates. The Bonds shall be designated as “THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024.” The Bonds shall be dated, mature, bear interest from the dates and at the rates per annum and be payable on the dates and in the principal amounts as set forth in the Pricing Certificate. 5. Sale of Bonds. As authorized by Chapters 1371 and 1502, Texas Government Code, as amended, the Pricing Officers are hereby authorized to act on behalf of the City in selling and delivering the Bonds and carrying out the other procedures specified in this Ordinance, including any additional designation or title by which the Bonds shall be known, the number of subseries of Bonds to be issued and the principal amount of each subseries, the price at which each series of the Bonds will be sold, the manner in which the Bonds should be delivered, the date or dates (which may be different dates for each series of the Bonds) on which the Bonds shall be sold, the form in which the Bonds shall be issued whether as current interest bonds, as compound interest bonds, or as a combination of current interest bonds and compound interest bonds, any additional designation or title by which the Bonds shall be known, the year or years in which each series of the Bonds will mature, the principal amount to mature in each of such years, the aggregate principal amount of each series of the Bonds, the rate of interest to be borne by each such maturity, the first interest payment date or compounding date, as the case may be, the dates, prices, and terms, if any, upon and at which each series of the Bonds shall be subject to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund redemption provisions, or make-whole provisions, and such officers are also hereby authorized to act on behalf of the City in approving all other matters relating to the issuance, sale and delivery of the Bonds and the purchase of a bond insurance policy or policies for all or any portion of the Bonds, all in accordance with the terms below: (a) the price to be paid for each series of the Bonds shall not be less than 90% of the aggregate original principal amount of the current interest bonds plus accrued interest, if any, thereon from their date to their delivery; (b) none of the Bonds shall bear interest at a rate greater than 6% per annum or in excess of the maximum rate allowed by Chapter 1204, Texas Government Code; (c) each series of the Bonds to be issued, prior to delivery, must have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long-term obligations; (d) to the extent the City shall purchase any Insurance Policy (one or more) issued by one or more Bond Insurers such policy or policies shall be determined to be most cost effective to the City for the Bonds and shall result in a net interest rate savings to the City which is greater than the costs of the premium of such policy or policies, for a term not to exceed thirty (30) years, payable from and secured by Net Revenues, with an authorization period of ninety (90) days, as may be certified in the Pricing Certificate; and Any finding by the Mayor, City Manager or the Chief Financial Officer relating to the sale and delivery of the Bonds and the purchase of bond insurance shall have the same force and effect as a finding or determination made by the City Council. 6. Bond Numbers and Denominations. Each series of Bonds shall be numbered from R-1 and upward (except the Initial Bond, which shall each be numbered I-1), and may be transferred and exchanged as set out in this Ordinance. Such Bonds shall mature on September 1 in each of the years and in the amounts set forth in the Initial Bond. The Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall be in the denomination of $5,000.00 or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as the Bonds or Bonds in lieu of which they are delivered. 7. Execution of Bonds; Seal. The Bonds shall be signed by the Mayor or Mayor Pro Tem and countersigned by the City Clerk or Deputy City Clerk, by their manual, lithographed, or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City had been manually impressed upon each of the Bonds. If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. 8. Approval by Attorney General; Registration by Comptroller. The Bonds to be initially issued shall be delivered to the Attorney General of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration Bond of the Comptroller of Public Accounts substantially in the form provided in the Pricing Certificate shall be attached or affixed to the Bonds to be initially issued. 9. Authentication. Except for the Bonds to be initially issued, which need not be authenticated by the Registrar, only such Bonds which bear thereon a certificate of authentication, substantially in the form provided in Section 19 of this Ordinance, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder. 10. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Bonds. The principal of and premium, if any, on the Bonds shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, whether at maturity or by prior redemption, at the principal corporate trust office of the Registrar. The interest on each Bond shall be payable by check on the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record Date, to the address of such Owner as shown on the Bond Register. Any accrued interest payable at maturity on a Bond shall be paid upon presentation and surrender of such Bond at the principal corporate trust office of the Registrar. If the date for payment of the principal of or interest on any Bond is not a Business Day, then the date for such payment shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the original date such payment was due. 11. Successor Registrars. The City covenants that at all times while any Bonds are outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Registrar for the Bonds. The City reserves the right to change the Registrar for the Bonds on not less than sixty (60) days written notice to the Registrar, so long as any such notice is effective not less than sixty (60) days prior to the next succeeding principal or interest payment date on the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Bond Register or copies thereof to the new Registrar, and the new Registrar shall notify each Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 12. Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) days prior to the Special Record Date, to each affected Owner of record as of the close of business on the day prior to the mailing of such notice. 13. Ownership; Unclaimed Principal and Interest. The City, the Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of principal of and premium, if any, or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the owner of any Bond in accordance with this Section 13 shall be valid and effectual and shall discharge the liability of the City and the Registrar upon such Bond to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Owner after the expiration of three (3) years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law, including Title 6 of the Texas Property Code, as amended. 14. Registration, Transfer, and Exchange. So long as any Bonds remain outstanding, the Registrar shall keep the Bond Register at its principal corporate trust office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of this Ordinance. If the Registrar does not maintain its principal offices in the State of Texas, the City agrees to keep a Bond Register at its offices which is identical to the Bond Register maintained by the Registrar and the Registrar will notify the City as to any changes in the Bond Register within 1 business day. Each Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three (3) business days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same type, maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal corporate trust office of the Registrar for a Bond or Bonds of the same type, maturity and interest rate and in any authorized denomination, in an aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section 14. Each Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the City. Neither the City nor the Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Bond called for redemption in part. 15. Mutilated, Lost, or Stolen Bonds. Upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange there for a replacement Bond of like maturity, interest rate, and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Registrar may require the Owner of a mutilated Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar. The City or the Registrar may require the Owner of a lost, apparently destroyed or wrongfully taken Bond, before any replacement Bond is issued, to: (1) furnish to the City and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (2) furnish such security or indemnity as may be required by the Registrar and the City to save them harmless; (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (4) meet any other reasonable requirements of the City and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Registrar to pay such Bond. Each replacement Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. 16. Cancellation of Bonds. All Bonds paid in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding such payment. The Registrar shall furnish the City with appropriate Bonds of destruction of such Bonds. 17. Book-Entry System. (a) Notwithstanding any other provision hereof, upon initial issuance of the Bonds but at the sole election of the Underwriter, the ownership of the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, and except as otherwise provided in this Section, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. The definitive Bonds shall be initially issued in the form of a single separate Bond for each of the maturities thereof. If the Underwriter shall elect to invoke the provisions of this Section, then the following provisions shall take effect with respect to the Bonds. (b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than an Owner of a Bond, as shown on the Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than an Owner of a Bond, as shown in the Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the City and the Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on the Bonds, for the purpose of all matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the respective Owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City’s obligations with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner as shown in the Register, shall receive a Bond evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word “Cede & Co.” in this Ordinance shall refer to such new nominee of DTC. (c) In the event that the City in its sole discretion determines that the beneficial owners of the Bonds be able to obtain Bonds, or in the event DTC discontinues the services described herein, the City shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify DTC and DTC Participants, as identified by DTC, of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC , as identified by DTC. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. (d) The execution and delivery of the Blanket Letter of Representations is hereby ratified and approved and the Mayor is hereby authorized and directed to execute a new Blanket Letter of Representations, if required, with such changes as may be approved by the Mayor or City Manager of the City. (e) Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bonds, and all notices with respect to such Bonds, shall be made and given, respectively, in the manner provided in the Blanket Letter of Representations. 18. Redemption and Defeasance. (a) Optional Redemption. The Bonds shall be subject to redemption prior to the stated maturity, at the option of the City at such times, in such amounts, in such manner and at such redemption prices as may be designated and provided for in the Pricing Certificate. (b) Partial Redemption. If less than all of the Bonds are to be redeemed pursuant to this Section, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity or maturities and in such principal amounts for redemption at the close of business on the Business Day next preceding the date of mailing such notice. (c) Notice of Redemption. Notice of any redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least thirty (30) days prior to the date fixed for any such redemption, to the registered owner of each Bond, or portion thereof to be redeemed, at its address as it appeared on the Register on the close of business on the business day next preceding the date of mailing such notice; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/ Registrar shall record in the Register all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000.00, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. Bonds may be redeemed only in integral multiples of $5,000.00. If a Bond subject to redemption is in a denomination larger than $5,000.00, a portion of such Bond may be redeemed, but only in integral multiples of $5,000.00. Upon surrender of any Bond for redemption in part, the Registrar, in accordance with Section 14 hereof, shall authenticate and deliver in exchange there for a Bond(s) of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond(s) so surrendered. The City, at least forty-five (45) days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Bonds to be redeemed. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. (d) Conditional Redemption. The City reserves the right in the case of an optional redemption to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date or (ii) that the City retains the right to rescind such notice at any time prior to the scheduled redemption date if the City delivers a certificate of the City to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected owners. Any Bonds subject to conditional redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not constitute an Event of Default. Further, in the case of a conditional redemption, the failure of the City to make moneys and/or authorized securities available in part or in whole on or before the redemption date shall not constitute an Event of Default. (e) Defeasance. The City may defease the provisions of this Ordinance or any ordinance applicable to any Parity Bonds being defeased and discharge its obligation to the Owners of any or all of the Bonds, or any or all Parity Bonds to pay principal, interest and redemption premium, if any, thereon in any manner permitted by law, including by depositing with the Paying Agent/Registrar, or if authorized by Texas law, with any national or state bank having trust powers and having combined capital and surplus of at least $50 million, or with the State Treasurer of the State of Texas either: (a) cash in an amount equal to the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; or (b) pursuant to an escrow or trust agreement, cash and/or direct bonds of, or bonds the principal of and interest on which are guaranteed by or secured by the pledge of direct bonds of the United States of America, in principal amounts and maturities and bearing interest at rates sufficient to provide for the timely payment of the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; provided, however, that if any of such bonds being defeased are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance or ordinance applicable to the Parity Bonds being defeased. Upon such deposit, such bonds being defeased shall no longer be regarded to be outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. 19. Form. The Form of Bond as set forth in the Pricing Certificate is hereby approved. The form of the Bonds, including the form of the Registrar’s Authentication Certificate, the form of Assignment, and the form of Registration Bond of the Comptroller of Public Accounts of the State of Texas which shall be attached or affixed to the Bonds initially issued shall be, respectively, substantially as set forth in the Pricing Certificate, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Ordinance. 20. Legal Opinion; CUSIP Numbers. The approving opinion of Holland & Knight LLP, Houston, Texas, Bond Counsel, and CUSIP Numbers may be printed on the Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Bonds. 21. (a) Pledge and Source of Payment. The City hereby covenants and agrees that all Gross Revenues of the System shall, as collected and received by the City, be deposited and paid into the special funds established in this Ordinance, and shall be applied in the manner hereinafter set forth, in order to provide for (i) the payment of all Maintenance and Operation Expenses and (ii) the payment of principal, interest and any redemption premiums on the Bonds, and all expenses of paying, securing and insuring the same. The Bonds are special obligations of the City payable solely from and secured by a lien on and pledge of the Net Revenues of the System, which Net Revenues shall, in the manner hereafter provided, be set aside for and are hereby pledged by the City to the payment of the Bonds and any Parity Bonds. The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the City or the System, except with respect to the Net Revenues. THE HOLDER OF THIS OBLIGATION IS NOT ENTITLED TO DEMAND PAYMENT OF THIS OBLIGATION OUT OF ANY MONEY RAISED BY TAXATION. IT IS ORDERED AND DIRECTED that this Ordinance pledging Net Revenues for the payment of the Bonds to the extent provided herein be filed and recorded in the records of the City as necessary to cause the pledge to be valid under Section 1201.44 of the Government Code of Texas. At any time while any of the Bonds are outstanding, if it is determined by the City or demanded by the holder of any Bonds that further action by the City is required to make the pledge valid or maintain the validity of the pledge, the City covenants and hereby directs the officers of the City to make such filings, including but not limited to appropriate filings under Chapter 9 of the Business and Commerce Code of Texas as are necessary to make the pledge valid or continue its validity. (b) Rates and Charges. So long as any Parity Bonds remain outstanding, there shall be fixed, charged and collected rates and charges for the use and services of the System, which may be fully sufficient at all times: (i) to pay all Maintenance and Operation Expenses; and (ii) to produce Net Revenues in each fiscal year at least equal to 110% of the principal and interest requirements scheduled to occur in such fiscal year on all Parity Bonds then outstanding, but in no event less than the amount required to establish and maintain the Interest and Sinking Fund, and, to the extent that funds for such purpose are not otherwise available, to pay all other outstanding obligations payable from the Net Revenues of the System as and when the same become due. The City covenants that it will not grant or permit any free service from the System except for public buildings and institutions operated by the City. (d) Special Funds. The following special funds shall be maintained and accounted for as hereinafter provided so long as any of the Parity Bonds remain outstanding: (i) Waterworks and Sewer System Revenue Fund (the “Revenue Fund”); (ii) Waterworks and Sewer System Revenue Bond Interest and Sinking Fund (the “Interest and Sinking Fund”); and (iii) Waterworks and Sewer System Bond Reserve Fund (the “Reserve Fund”). The Revenue Fund shall be maintained as a separate account on the books of the City. The Interest and Sinking Fund and the Reserve Fund shall be maintained at an official depository bank of the City, separate and apart from all other funds and accounts of the City, and shall constitute trust funds which shall be held in trust for the benefit of the holders of the Parity Bonds, and the proceeds of which (except for interest income, which shall be transferred to the Revenue Fund) shall be and are hereby pledged to the payment of the Parity Bonds. All of the funds named above shall be used solely as provided in this Ordinance so long as any Parity Bonds remain outstanding. (e) Flow of Funds. All Gross Revenues of the System shall be deposited as collected into the Revenue Fund. Moneys from time to time on deposit to the credit of the Revenue Fund shall be applied as follows in the following order of priority: (i) First, to pay Maintenance and Operation Expenses and to provide by encumbrance for the payment of all obligations incurred by the City for Maintenance and Operation Expenses which may include an operating reserve equal to one month’s estimated Maintenance and Operation Expenses. (ii) Second, to make all deposits into the Interest and Sinking Fund required by this Ordinance and any ordinance authorizing the issuance of any outstanding Additional Parity Bonds. (iii) Third, to make all deposits into the Reserve Fund required by this Ordinance and any ordinance authorizing the issuance of Additional Parity Bonds. (iv) Fourth, to pay any amounts due to any bond insurer of Parity Bonds not paid pursuant to subsections (ii) or (iii) above. (v) Fifth, for any lawful purpose, including transfers to the General Fund as permitted by law. Such permitted transfers to the General Fund are hereby expressly authorized by this Ordinance and the purposes for which such surplus revenues may be used shall include, but not be limited to, payment of any other debt, expense, or obligation of the City. Whenever the total amounts on deposit to the credit of the Interest and Sinking Fund and the Reserve Fund shall be equivalent to the sum of the aggregate principal amount of all outstanding Parity Bonds plus the aggregate amount of all interest accrued and to accrue thereon, no further payments need be made into the Interest and Sinking Fund, and the Reserve Fund. (f) Interest and Sinking Fund. On or before the last Business Day of each month so long as any Parity Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, there shall be transferred into the Interest and Sinking Fund from the Revenue Fund the following amounts: (i) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the interest scheduled to become due on the Parity Bonds on the next interest payment date; and (ii) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the next maturing principal of the Parity Bonds, including the principal amounts of, and any redemption premiums on, any Parity Bonds payable as a result of the exercise or operation of any redemption provision contained in this Ordinance or in any ordinance authorizing the issuance of Parity Bonds. Moneys deposited to the credit of the Interest and Sinking Fund (except for interest income, which shall be transferred to the Revenue Fund) shall be used solely for the purpose of paying principal (either at maturity or prior redemption or to purchase Parity Bonds in the open market to be credited against mandatory redemption requirements), interest and redemption premiums on the Parity Bonds, plus all bank charges and other costs and expenses relating to such payment, on a pro rata basis among all series of Parity Bonds. On or before each principal and/or interest payment date for the Parity Bonds, the City shall transfer from the Interest and Sinking Fund to the paying agents for the Parity Bonds an amount equal to the principal, interest and redemption premiums payable on the Parity Bonds on such date, together with an amount equal to all bank charges and other costs and expenses relating to such payment. The paying agents for the Parity Bonds shall totally destroy all paid Parity Bonds and coupons (if any) and shall provide the City with an appropriate Bond of destruction. (g) Reserve Fund. Unless the Reserve Fund is fully funded, on or before the last Business Day of each month so long as any Parity Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, and after making the transfers into the Interest and Sinking Fund required in the preceding Section, there shall be transferred into the Reserve Fund from the Revenue Fund an amount at least equal to one- sixtieth (1/60 th ) of the average annual principal and interest requirements on the Parity Bonds, so that the Reserve Fund shall contain, in no more than sixty (60) months after the issuance of each such issue of Parity Bonds, money and investments in an aggregate amount at least equal to the average annual principal and interest requirements on all Parity Bonds then outstanding. After such amount has accumulated in the Reserve Fund and so long thereafter as such Fund contains such amount, no further deposits shall be required to be made into the Reserve Fund, and any excess amounts may be transferred to the Revenue Fund. But if and whenever the balance in the Reserve Fund is reduced below such amount, monthly deposits into such fund shall be resumed and continued in amounts at least equal to one-sixtieth (1/60 th ) of the average annual principal and interest requirements on the Parity Bonds until the Reserve Fund has been restored to such amount; provided however, if a Reserve Fund Policy has been obtained by the City pursuant to the next paragraph below, then the provisions of such next paragraph shall govern and control with respect to replenishment of amounts drawn under the Reserve Fund Surety Policy. The Reserve Fund shall be used to pay the principal of and interest on the Parity Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose and it may be used finally to pay and retire the last Parity Bonds to mature or be redeemed. To the extent permitted by law, the City expressly reserves the right at any time to satisfy all or any part of the amounts required to be on deposit in the Reserve Fund (the “Reserve Fund Requirement”) by obtaining for the benefit of the Reserve Fund one or more Reserve Fund Surety Policies (a “Reserve Fund Surety Policy”). The purchase of such Reserve Fund Surety Policy is approved, and the Mayor, Mayor Pro-Tem, City Manager, Chief Financial Officer, City Clerk, Deputy City Clerk, and all other appropriate officers and agents of the City are each authorized to execute such documents, including but not limited to a reimbursement agreement, to grant a subordinated pledge and lien on the Net Revenues as security for the payment of amounts due under the reimbursement agreement (which grant if made is hereby approved), and to do any and all things necessary or desirable to obtain such a Policy if in the discretion of the acting official deems its acquisition in the best interests of the City. In the event the City elects to substitute at any time a Reserve Fund Surety Policy for any funded amounts in the Reserve Fund, it may apply any bond proceeds thereby released, to the greatest extent permitted by law, to any purposes for which the bonds were issued, and if all such purposes have been satisfied, to the payment of debt service on such bonds, and it may apply any other funds thereby released to any of the purposes for which such funds may lawfully be applied including the payment of debt service on the Parity Bonds. A Reserve Fund Surety Policy shall be an insurance policy or other similar guarantee in a principal amount equal to the portion of the Reserve Fund Requirement to be satisfied which is issued by a financial institution or insurance company with a rating for its long-term unsecured debt or claims paying ability of at least an investment grade category by two major municipal securities evaluation sources. The premium for any such policy shall be paid from bond proceeds or other funds of the City lawfully available for such purpose. The City reserves the right to fund any increase in the Reserve Fund Requirement caused by the issuance of Additional Parity Bonds by the purchase of a Reserve Fund Surety Policy in the amount of such increase or by making transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts sufficient to accumulate the increase in the Reserve Fund Requirement within sixty (60) months of the issuance of such Additional Parity Bonds. If the Reserve Fund contains only cash and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement at any time, the City shall make monthly transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts sufficient to restore the balance in the Reserve Fund to the Reserve Fund Requirement within twelve (12) months of the date on which the balance in the Reserve Fund was so reduced. If the Reserve Fund contains a Reserve Fund Surety Policy (and no cash) and a draw is made against such policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to reimburse the amount drawn under such policy within twelve (12) months. If the Reserve Fund contains a combination of cash and a Reserve Fund Surety Policy, and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement by a combination of cash withdrawals and draws against the Reserve Fund Surety Policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to restore the cash balance in the Reserve Fund and reimburse the amount drawn under such policy within twelve (12) months, with reimbursement to be made for all amounts drawn under such policy before any cash deposits are made into the Reserve Fund. Any reimbursement of amounts drawn against a Reserve Fund Surety Policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided herein. Notwithstanding anything to the contrary contained herein, the requirement set forth above in this subsection to maintain the Reserve Fund Requirement in the Reserve Fund shall be suspended for such time as the Net Revenues for each Fiscal Year are equal to at least 1.30 times the Average Annual Debt Service Requirements. In the event that the Net Revenues for any Fiscal Year are less than 1.30 times the Average Annual Debt Service Requirements, the City will be required to commence making Required Reserve Fund Deposits, as provided above, and to continue such Required Reserve Fund Deposits until the earlier of (i) such time as the Reserve Fund contains the Reserve Fund Requirement or (ii) the Net Revenues in each of two consecutive years have been equal to not less than 1.30 times the Average Annual Debt Service Requirements. During such time as the Reserve Fund contains the Reserve Fund Requirement or the obligation to maintain the Reserve Fund Requirement has been suspended pursuant to the paragraph above, the City may, at its option, withdraw all surplus funds in the Reserve Fund and deposit such surplus in the Interest and Sinking Fund or otherwise use such amount in any manner permitted by law. (h) Deficiencies in Funds. If in any month there shall not be deposited into any Fund maintained pursuant to this Section 21 the full amounts required herein, amounts equivalent to such deficiency shall be set apart and paid into such Fund or Funds from the first available and unallocated money in the Revenue Fund, and such payment shall be in addition to the amounts otherwise required to be paid into such Funds during the succeeding month or months. To the extent necessary, the rates and charges for the System shall be increased to make up for any such deficiencies. (i) Investment of Funds; Transfer of Investment Income. Money in each Fund maintained pursuant to this Section of this Ordinance may, at the option of the City, be invested as permitted by law, provided that all such deposits and investments shall be made in such manner that the money required to be expended from any Fund will be available at the proper time or times. Any obligation in which money is so invested shall be kept and held in the Fund from which the investment was made. All such investments shall be promptly sold when necessary to prevent any default in connection with the Parity Bonds. All interest and income derived from such deposits and investments shall be transferred or credited as received to the Revenue Fund, and shall constitute Gross Revenues of the System; provided, however, to the extent such interest and income is derived from bond proceeds, such interest and income shall not constitute Gross Revenues of the System and shall only be used for the purposes for which the bond proceeds may be used. 22. Additional Bonds. (a) Additional Parity Bonds. In addition to the right to issue bonds of inferior lien as authorized by law, the City reserves the right to issue, for any lawful purpose, including the refunding of any previously issued, Parity Bonds or any other bonds or obligations of the City issued in connection with the System, one or more series of Additional Parity Bonds payable from, and secured by a lien on and pledge of, the Net Revenues of the System, on a parity with the Bonds and any other Additional Parity Bonds then outstanding; provided, however, that no Additional Parity Bonds may be issued unless: (i) The City shall not hereafter issue any additional obligations possessing a lien on the Net Revenues of the System superior to that to be possessed by the Parity Bonds; (ii) The Additional Parity Bonds mature on September 1, and interest is payable on March 1 and September 1; (iii) The Interest and Sinking Fund and the Reserve Fund contain the amount of money then required to be on deposit therein; (iv) For either the preceding Fiscal Year or any consecutive 12-month calendar period ending no more than ninety (90) days prior to adoption of the ordinance authorizing such Additional Parity Bonds, Net Revenues were equal to at least 125% of the average annual principal and interest requirements on all Parity Bonds that will be outstanding after the issuance of the series of Additional Parity Bonds then proposed to be issued, as certified by the City’s Finance Officer or by an independent certified public accountant or firm of independent certified public accountants; or (v) If the City cannot meet the test described in (iv) above, but a change in the rates and charges applicable to the System becomes effective at least sixty (60) days prior to the adoption of the ordinance authorizing Additional Parity Bonds and the City’s Finance Officer certifies that, had such change in rates and charges been effective for the preceding fiscal year or 12 consecutive calendar month period ending no more than ninety (90) days prior to adoption of said ordinance, the Net Revenues for such period would have met the test described in (iv) above. (b) Subordinate Lien Obligations. The City reserves the right to issue, for any lawful purpose, bonds, notes or other obligations (including but not limited to reimbursement agreements undertaken to obtain reserve fund security policies) secured in whole or in part by liens on and pledges of the Net Revenues that are junior and subordinate to the lien on and pledge of Net Revenues securing payment of the Parity Bonds. Such subordinate lien obligations may be further secured by any other source of payment lawfully available for such purposes. (c) Special Project Bonds. The City reserves the right to issue revenue bonds secured by liens on and pledges of revenues and proceeds derived from Special Projects. 23. Covenants and Provisions Relating to all Parity Bonds. (a) Punctual Payment of Parity Bonds. The City will punctually pay or cause to be paid the interest on and principal of all Parity Bonds according to the terms thereof and will faithfully do and perform, and at all times fully observe, any and all covenants, undertakings, stipulations and provisions contained in this Ordinance and in any ordinance authorizing the issuance of Additional Parity Bonds. (b) Maintenance of System. So long as any Parity Bonds remain outstanding, the City covenants that it will at all times maintain the System, or within the limits of its authority cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical manner at a reasonable cost and in accordance with sound business principles. In operating and maintaining the System, the City will comply with all contractual provisions and agreements entered into by it and with all valid rules, regulations, directions or order of any governmental, administrative or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation of the System. (c) Sale or Encumbrance of System. So long as any Parity Bond remains outstanding, the City will not sell, dispose of or, except as permitted in this Ordinance, further encumber the System; provided, however, that this provision shall not prevent the City from disposing of any portion of the System which is being replaced or is deemed by the City to be obsolete, worn out, surplus or no longer needed for the proper operation of the System. Any agreement pursuant to which the City contracts with a person, corporation, municipal corporation or political subdivision to operate the System or to lease and/or operate all or part of the System shall not be considered as an encumbrance of the System. (d) Insurance. The City further covenants and agrees that it will keep the System insured with insurers of good standing against risks, accidents or casualties against which and to the extent insurance is customarily carried by political subdivisions of the State of Texas operating similar properties, to the extent that such insurance is available. The cost of all such insurance, together with any additional insurance, shall be a part of the Maintenance and Operation Expenses. All net proceeds of such insurance shall be applied to repair or replace the insured property that is damaged or destroyed, or to make other capital improvements to the System, or to redeem Parity Bonds. (e) Accounts, Records and Audits. So long as any Parity Bonds remain outstanding, the City covenants and agrees that it will maintain a proper and complete system of records and accounts pertaining to the operation of the System in which full, true and proper entries will be made of all dealings, transactions, business and affairs which in any way affect or pertain to the System or the Gross Revenues or the Net Revenues thereof. The City shall after the close of each of its Fiscal Years cause an audit report of such records and accounts to be prepared by an independent certified public accountant or independent firm of certified public accountants. Each year promptly after such audit report is prepared, the City shall furnish a copy thereof without cost to the Municipal Advisory Council of Texas and any holders of Parity Bonds who shall request same. All expenses incurred in preparing such audits shall be Maintenance and Operation Expenses. (f) Competition. To the extent it legally may, the City will not grant any franchise or allow for the acquisition, construction or operation of any competing facilities which might be used as a substitute for the System and will prohibit the operation of any such competing facilities. (g) Pledge and Encumbrance of Net Revenues. The City covenants and represents that it has the lawful power to pledge the Net Revenues to the payment of the Parity Bonds and has lawfully exercised such power under the Constitution and laws of the State of Texas. The City further covenants and represents that, other than to the payment of the Parity Bonds, the Net Revenues are not and will not be pledged to the payment of any debt or obligation of the City, or in any other manner encumbered unless such pledge or encumbrance is junior and subordinate to the lien and pledge securing payment of the Parity Bonds. (h) Remedies. This Ordinance shall constitute a contract between the City and the holders of the Parity Bonds from time to time outstanding and shall remain in effect until the Parity Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall have been made as provided herein. In the event of a default in the payment of the principal of or interest on any of the Parity Bonds or a default in the performance of any duty or covenant provided by law or in this Ordinance, the holder or holders of any of the Parity Bonds, as appropriate, may pursue all legal remedies afforded by the Constitution and laws of the State of Texas to compel the City to remedy such default and to prevent further default or defaults. Without in any way limiting the generality of the foregoing, it is expressly provided that any holder of any of the Parity Bonds may at law or in equity, by suit, action, mandamus, or other proceedings, enforce and compel performance of all duties required to be performed by the City under this Ordinance, including the making and collection of reasonable and sufficient rates and charges for the use and services of the System, the deposit of the Gross Revenues thereof into the special funds as herein provided, and the application of such Gross Revenues and Net Revenues in the manner required in this Ordinance. Acceleration of payment of principal of or interest on the Parity Bonds shall not be a remedy of default. (i) Legal Holidays. In any case where the date fixed for payment of interest on or principal of the Parity Bonds or the date fixed for redemption of any Parity Bonds shall be a legal holiday or a day on which a paying agent for the Parity Bonds is authorized by law to close, then payment of interest or principal by such paying agent need not be made on such date but may be made on the next succeeding business day with the same force and effect as if made on the date fixed for such payment and no interest shall accrue for the period from such date to the date of actual payment. (j) Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. 24. Further Proceedings. After the Bonds to be initially issued shall have been executed, it shall be the duty of the Mayor and other appropriate officials and agents of the City to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General of the State of Texas, for examination and approval. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Bonds to be initially issued, the Comptroller of Public Accounts (or the Comptroller’s bond clerk or an assistant bond clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller’s Registration Certificate prescribed herein and the seal of said Comptroller shall be impressed or placed in facsimile, thereon. 25. Engagement of Professionals. The City Council hereby (i) confirms the engagement of RBC Capital Markets, LLC, as Municipal Advisor, to the City, (ii) confirms the engagement of Holland & Knight LLP, as bond counsel to the City, and (iii) approves the underwriting syndicate as identified in the Pricing Certificate. 26. Proceeds of Sale. Proceeds from the sale of the Bonds, together with other funds of the City, if any, shall, promptly upon receipt by the City, be applied as set forth in the Pricing Certificate. Any proceeds remaining after the accomplishment of such purposes, including interest earnings on the investment of such proceeds, shall be deposited to the Interest and Sinking Fund. 27. Bond Insurance. (a) In order to obtain the lowest attainable interest rates on the Bonds, the Pricing Officers are authorized to enter into a credit agreement with one or more Bond Insurers to obtain one or more bond insurance policies with respect to all or a portion of the Bonds as set forth in the Pricing Certificate. The Pricing Officers are authorized to execute, and the City Clerk is authorized to attest and affix the City’s seal to any documents required in connection with the purchase of any such policy or policies. The City hereby agrees to the provisions set forth in the Pricing Certificate. Any reimbursement of amounts drawn against such insurance policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided therein. Such amounts shall be limited to the extent permitted by law and subject to annual appropriation by the City. 28. Paying Agent/Registrar Agreement. The paying agent/registrar agreement (the “Paying Agent Agreement”) by and between the City and the Paying Agent, a form of which is attached to the Pricing Certificate, is hereby approved, together with such changes or revisions as may be necessary to accomplish the refunding or benefit the City, an is hereby authorized to be executed by the Mayor or Mayor Pro Tem and City Clerk for and on behalf of the City. 29. Official Statement. The Preliminary Official Statement and the Official Statement prepared in the initial offering and sale of the Bonds have been and are hereby authorized, approved and ratified as to form and content. The use of the Preliminary Official Statement and the Official Statement in the reoffering of the Bonds by the Underwriter is hereby approved, authorized and ratified. The proper officials of the City are hereby authorized to execute and deliver a Bond pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein, dated as of the date set forth herein. 30. No Personal Liability. No recourse shall be had for payment of the principal of or interest on any Bonds or for any claim based thereon, or on this Ordinance, against any official or employee of the City or any person executing any Bonds. 31. Continuing Disclosure Undertaking. (a) Annual Reports. The City undertakes and agrees for the benefit of the Bond holders to provide annually to the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized in this Ordinance (i) under the headings “CITY WATERWORKS AND SEWER SYSTEM REVENUE DEBT,” “ADMINISTRATION OF THE CITY,” “THE SYSTEM-WATER AND SEWER RATES” and in APPENDIX B. The information to be provided shall include the financial statements of the City prepared in accordance with the accounting principles the City may be required to employ from time to time pursuant to State law or regulation and audited, if the audit is completed within the period during which they must be provided. If the audit of such financial statements is not completed within such period, then the City shall provide unaudited financial statements for the applicable fiscal year to the MSRB within such six (6) month period and audited financial statements when the audit report on such statement becomes available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. (a) Material Event Notices. The City shall notify the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: i. Principal and interest payment delinquencies; ii. Non-payment related defaults, if material; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit enhancements reflecting financial difficulties; v. Substitution of credit or liquidity providers, or their failure to perform; vi. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determination of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; vii. Modifications to rights of Bondholders, if material; viii. Bond calls, if material, and tender offers; ix. Defeasances; x. Release, substitution or sale of property securing repayment of the securities, if material; xi. Rating changes; Note to paragraph (xi): For the purposes of the event identified in paragraph (k) of this section, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. xii. Bankruptcy, insolvency, or receivership, or similar event of the obligated person; xiii. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement or undertake such action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; xiv. Appointment of a successor or additional paying agent or the change of name of a paying agent, if material: xv. Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material; and xvi. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City any of which reflect financial difficulties. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with section (a) above. All documents provided to the MSRB shall be accompanied by identifying information as prescribed by the MSRB. The City reserves the right to file all information and notices required under this Article through the facilities of DisclosureUSA or any other central post office approved by the SEC for such purpose. (b) Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an “obligated person” with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with Texas law that causes Bonds no longer to be outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION OR FROM ANY STATEMENT MADE PURSUANT TO THIS SECTION. HOLDERS OR BENEFICIAL OWNERS OF BONDS MAY SEEK AS THEIR SOLE REMEDY A WRIT OF MANDAMUS TO COMPEL THE CITY TO COMPLY WITH ITS AGREEMENT. No default by the City with respect to its continuing disclosure agreement shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status or type of operations of the City, if (i) the agreement, as amended, would have permitted the Underwriter to purchase or sell the Bonds in the initial primary offering in compliance with the Rule, taking into account any amendments or interpretations of such rule to the date of such amendment, as well as such changed circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment, or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also amend or repeal the obligations and agreement in this Section if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, and the City may amend the agreement in its discretion in any other circumstance or manner, but in either case only to the extent that its right to do so would not prevent an underwriter from lawfully purchasing or reselling the Bonds in the primary offering of the Bonds in compliance with the Rule. If the City amends its agreement, it must include with the next financial information and operating data provided in accordance with its agreement an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of information and operating data so provided. 32. Repealer. All orders, resolutions, ordinances, and parts thereof inconsistent herewith are hereby repealed to the extent of such inconsistency. 33. Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so ordered. 34. Amendment of Ordinance. (a) If and to the extent permitted by this Ordinance, the owners of the Bonds aggregating in the principal amount of 51% of the aggregate principal amount of the outstanding Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City provided, however, that without the consent of the owners of all of the Bonds at the time outstanding, nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Bonds so as to: (1) Make any change in the maturity of the outstanding Bonds; (2) Reduce the rate of interest borne by any of the outstanding Bonds; (3) Reduce the amount of the principal payable on the outstanding Bonds; (4) Modify the terms of payment of principal of or interest on the outstanding Bonds, or impose any conditions with respect to such payment; (5) Affect the owners of less than all of the outstanding Bonds then outstanding; (6) Change the percentage of the principal amount of outstanding Bonds, necessary for consent to such amendment. (b) If at any time the City shall desire to amend this Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial newspaper or journal published in The City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agent for inspection by all owners of the Bonds. Such publication is not required, however, if notice in writing is given to each owner of the outstanding Bonds. Not less than thirty (30) days’ notice of the proposed amendment shall also be given by the City to the Underwriter. (c) Whenever at any time not less than thirty (30) days, and within one (1) year, from the date of the publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the owners of at least 51% in aggregate principal amount of the Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agent, the City Council may adopt the amendatory resolution in substantially the same form. (d) Upon adoption of any amendatory resolution pursuant to the provision of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory resolution, and the respective rights, duties and Bonds under this Ordinance of the City and all the owners of then outstanding Bonds, shall thereafter be determined, exercised and enforced hereunder, subject in all respect to such amendments. (e) Any consent given by the owner of the outstanding Bonds pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section and shall be conclusive and binding upon all future owners of the same Bonds, during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agent and the City, but such revocation shall not be effective if the owners of 51% in aggregate principal amount of the then outstanding Bonds, as in this Section defined have, prior to the attempted revocation, consented to and approved the amendment. (f) For the purpose of this Section, the fact of the owning of Bonds, by any owner of Bonds, and the amount and number of such Bonds, and the date of their owning same shall be determined by the Registration Books of the Paying Agent/Registrar. (g) The foregoing provisions of this Section notwithstanding, the City by action of the City Council (or as item (2) by the City Council or by the Mayor, Mayor Pro Tem, City Manager or Chief Financial Officer as to changes prior to issuance to comply with requirements by the Attorney General of Texas or Underwriter) may amend this Ordinance for any one or more of the following purposes: (1) To add to the covenants and agreements of the City in this Ordinance contained, other covenants and agreements thereafter to be observed, grant additional rights or remedies to the owners of bonds or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of clarifying matters or questions arising under this Ordinance, as are required by the Attorney General of Texas to obtain the Attorney General’s approval of the issuance of the Bonds or required by the Underwriter before their issuance or for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained in this Ordinance, or at any time before or after issuance as are necessary or desirable and not contrary to or inconsistent with this Ordinance, and in all events which shall not adversely affect the interests of the owners of the Bonds. (3) To modify any of the provisions of this Ordinance in any other respect whatever, provided that: (i) such modification shall be, and be expressed to be, effective only after all Bonds outstanding at the date of the adoption of such modification shall cease to be outstanding, and (ii) such modification shall be specifically referred to in the text of all Bonds issued after the date of the adoption of such modification. 35. Related Matters. To satisfy in a timely manner all of the City’s obligations under this Ordinance, the Mayor or Mayor Pro Tem, City Manager, Chief Financial Officer, City Clerk or any Deputy City Clerk, and all other appropriate officers and agents of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance of the Bonds, including without limitation, executing and delivering on behalf of the City all Bonds, consents, receipts, requests, and other documents as may be reasonably necessary to satisfy the City’s obligations under this Ordinance and to direct the application of funds of the City consistent with the provisions of this Ordinance. 36. Open Meeting. It is hereby officially found and determined that the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551 of the Texas Government Code. 37. Interpretations. All terms defined herein, and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Parity Bonds and the validity of the lien on and pledge of the Net Revenues to secure the payment of the Parity Bonds. 38. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. PASSED BY THE CITY COUNCIL of the City of Beaumont this 18th day of June, 2024. ________________________________ -Mayor Roy West- ATTEST: _______________________________ City Clerk 1 CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS § COUNTY OF JEFFERSON § I, the undersigned City Clerk of the City of Beaumont, Texas (the “City”), hereby certify as follows: 1. The City Council of the City convened in regular meeting on June 18, 2024, at the place stated in the notice of such meeting given as stated below, and the roll was called of the duly constituted official and members of said City Council, to wit: Roy West Mayor Albert Turner Councilmember Randy Feldschau Councilmember Taylor Neild Councilmember Mike Getz Councilmember Audwin Samuel Councilmember Charles Durio Councilmember And all of said persons were present, thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024 IN ONE OR MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED; AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING THERETO; PROVIDING FOR THE PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER 2 RELATED DOCUMENTS; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS was duly introduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said ordinance be adopted; and after due discussion, such motion, carrying with it the adoption of said ordinance, prevailed and carried by the following vote: AYES: All those present voted “aye” NOES: ABSTENTIONS: 2. That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said ordinance has been duly recorded in said City Council’s minutes of said meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from the said City Council’s minutes of said meeting pertaining to the adoption of said ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place, and purpose of the aforesaid meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by the Texas Open Meetings Act. SIGNED AND SEALED this __________________, 2024. ______________________________________ City Clerk City of Beaumont, Texas (SEAL) 3 ORDINANCE NO. 24-__ ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024 IN ONE OR MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED; AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING THERETO; PROVIDING FOR THE PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS, The City of Beaumont, Texas (the “City”) is authorized, pursuant to Chapters 1371 and 1502, Texas Government Code, as amended, to issue bonds, without election, payable from the net revenues of its waterworks and sewer system to provide money for acquisitions, purchases, expansions, extensions, construction, reconstruction, renovation, equipping, and improvement of such system; and WHEREAS, the City now desires to issue bonds in order to provide funds to finance the expansion, repair, renovation and related improvements to the City’s waterworks and sewer system; and WHEREAS, by this Ordinance the City Council of the City (the “City Council”) is authorizing the issuance of its bonds in the principal amount not exceed $60,000,000; and WHEREAS, the City shall by this Ordinance, in accordance with the provisions of Chapter 1371 and 1502, Texas Government Code, as amended, delegate to a Pricing Officer (hereinafter designated) the authority to determine the principal amount of Bonds to be issued and negotiate the terms of sale thereof; and WHEREAS, the City Council hereby finds and determines that it is a public purpose and in the best interests of the City to (1) issue the Bonds with such terms to be included in a pricing certificate (the “Pricing Certificate”) to be executed by the Pricing Officer, all in accordance with the provisions of Chapters 1371 and 1502, Texas Government Code, as amended; and 4 WHEREAS, the City Council hereby finds that it may purchase a credit agreement in the form of a municipal bond insurance policy or policies with respect to the Bonds if it deems such purchase is cost effective; and WHEREAS, the bonds to be issued pursuant to the terms and provisions of this Ordinance will be secured by a pledge of and lien on the Net Revenues (as hereinafter defined); and WHEREAS, the City is a home-rule municipality that: (i) adopted its charter under Section 5, Article XI, Texas Constitution; (ii) has a population of more than 50,000 and (iii) has outstanding long-term indebtedness that is rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for a long-term obligation. Now, Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: 1. Findings and Determinations. It is hereby found and determined that the matters and facts contained in the preamble to this Ordinance are hereby found to be true and correct. 2. Definitions. Throughout this ordinance the following terms and expressions as used herein shall have the meanings set forth below: The term “Additional Parity Bonds” shall mean any credit agreement created pursuant to Section 27 herein or additional bonds issued with the same priority lien as the Bonds. The term “Average Annual Debt Service Requirements” shall mean the average annual debt service for the Parity Bonds. The term “Blanket Issuer Letter of Representations” means the Blanket Issuer Letter of Representations between the City and DTC. The term “Bond Insurer” shall mean any third party financial institution that provides a credit agreement in the form of a municipal bond insurance policy as provided herein. The term “Bond Register” shall mean the books of registration kept by the Registrar in which are maintained the names and addresses of, and the principal amounts of the Bonds registered to, each Owner. The terms “Bonds” shall mean the City of Beaumont, Texas Waterworks and Sewer System Revenue Bonds, Series 2024. The term “Business Day” shall mean any day which is not a Saturday, Sunday, a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent/Registrar or Bond Insurer, if any, is located, are authorized or required by law or executive order to close, or a legal holiday. 5 The term “City” shall mean The City of Beaumont, Texas. The term “Closing Date” means the date of the initial delivery of and payment for the Bonds. The term “Code” means the Internal Revenue Code of 1986, as heretofore and hereafter amended and, with respect to a specific section thereof, such reference shall be deemed to include (a) the Regulations promulgated under such section, (b) any successor provision of similar import hereafter enacted, (c) any corresponding provision of any subsequent Internal Revenue Code, and (d) the Regulations promulgated under the provisions described in (b) and (c). The term “Comptroller” means the Comptroller of Public Accounts of the State of Texas. The term “DTC” means The Depository Trust Company of New York, New York, or any successor securities depository. The term “DTC Participant” means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. The term “Gross Revenues” shall mean all revenues, income and receipts of every nature derived or received by the City from the operation and ownership of the System (but excluding any utility deposits) and the interest income from the investment or deposit of money in the Revenue Fund, and the Interest and Sinking Fund. The term “Insurance Policy” shall have the meaning assigned to that term in Section 27 of this Ordinance. The term “Insured Bonds” shall mean the Bonds during the time period in which the payment of principal and interest in connection with such bonds is guaranteed by the Bond Insurer. The term “Interest Payment Date”, when used in connection with any Bond, shall mean March 1 and September 1 of each year, beginning March 1, 2025 and continuing thereafter until maturity or earlier redemption of such Bond. The term “Issuer” shall mean the City. The term “Maintenance and Operation Expenses” shall mean the reasonable and necessary expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, and all payments under contracts, now or hereafter defined as operating expenses by the Legislature of the State of Texas. Depreciation shall never be considered as a Maintenance and Operation Expense. The term “MSRB” shall mean the Municipal Securities Rulemaking Board. 6 The term “Net Revenues” shall mean all Gross Revenues remaining after deducting the Maintenance and Operation Expenses. The term “Ordinance” as used herein and in the Bonds shall mean this ordinance authorizing the Bonds and all amendments and supplements hereto. The term “Outstanding” shall mean, in connection with the Bonds, any Bonds that remain outstanding until maturity, refunding or defeasance. The term “Owner” shall mean any person who shall be the registered owner of any Bonds. The term “Parity Bonds” shall mean the Bonds, the City’s outstanding Waterworks and Sewer System Revenue Bonds, Series 2014A and 2014B, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Series 2015A, the City’s Waterworks and Sewer System Revenue Bonds, Series 2017, the City’s Waterworks and Sewer System Revenue and Refunding Bonds, Series 2020A, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Taxable Series 2020B, the City’s Waterworks and Sewer System Revenue Refunding Bonds, Taxable Series 2022, the City’s Waterworks and Sewer System Revenue Bonds, Series 2023 and any Additional Parity Bonds. The term “Paying Agent” for the Bonds shall mean the Registrar. The term “Pricing Certificate” shall mean a certificate or certificates to be signed by the Mayor, the City Manager or the Chief Financial Officer of the City pursuant to Section 5 hereof and delivered to the City Clerk, in substantially the form attached hereto as Exhibit A. The term “Pricing Officer” shall mean the Mayor, City Manager, or Chief Financial Officer of the City. The term “Record Date” shall mean, for any Interest Payment Date, the fifteenth (15th) calendar day of the month next preceding each Interest Payment Date. The term “Registrar” shall mean UMB Bank, N.A., Houston, Texas, and its successors in that capacity. The term “Regulations” means the applicable proposed, temporary or final Treasury Regulations promulgated under the Code or, to the extent applicable to the Code under the Internal Revenue Code of 1954, as such regulations may be amended or supplemented from time to time. The term “Reserve Fund Requirement” shall mean an amount equal to the average annual principal and interest requirement on the Parity Bonds, which may be determined and redetermined each year by the City but in no event less frequently than upon the issuance of each series of Parity Bonds. The term “Rule” shall mean SEC Rule 15c-12, as amended from time to time. 7 The term “SEC” shall mean the United States Securities and Exchange Commission. The term “Special Project” shall mean, to the extent permitted by law, any property, improvement or facility declared by the City not to be part of the System and substantially all of the costs of the acquisition, construction and installation of which is paid from proceeds of a financing transaction other than the issuance of bonds payable from ad valorem taxes or Net Revenues of the System, and for which all maintenance and operation expenses are payable from sources other than revenues of the System, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction and installation under such financing transaction. The term “System” shall mean all properties, facilities, improvements, equipment, interests and rights constituting the waterworks and sewer system of the City, including all future extensions, replacements, betterments, additions, improvements, enlargements, acquisitions, purchases and repairs to the System, but excluding all Special Projects. The term “Underwriter” shall mean the underwriting syndicate identified in the Pricing Certificate. 3. Authorization. The Bonds shall be issued in fully registered form in the total authorized aggregate principal amount not to exceed SIXTY MILLION AND NO/100 DOLLARS ($60,000,000) for the purpose of providing funds to (i) finance capital expenditures acquisition, purchase, construction, reconstruction, improvement, renovation, expansion, or equipping of property, buildings, structures, facilities, or related infrastructure for the City’s waterworks and sewer system (the “Project”), and (ii) pay costs of issuance of the Bonds. 4. Designation, Date, and Interest Payment Dates. The Bonds shall be designated as “THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024.” The Bonds shall be dated, mature, bear interest from the dates and at the rates per annum, and be payable on the dates and in the principal amounts as set forth in the Pricing Certificate. 5. Sale of Bonds. As authorized by Chapters 1371 and 1502, Texas Government Code, as amended, the Pricing Officers are hereby authorized to act on behalf of the City in selling and delivering the Bonds and carrying out the other procedures specified in this Ordinance, including any additional designation or title by which the Bonds shall be known, the number of subseries of Bonds to be issued and the principal amount of each subseries, the price at which each series of the Bonds will be sold, the manner in which the Bonds should be delivered, the date or dates (which may be different dates for each series of the Bonds) on which the Bonds shall be sold, the form in which the Bonds shall be issued whether as current interest bonds, as compound interest bonds, or as a combination of current interest bonds and compound interest bonds, any additional designation or title by which the Bonds shall be known, the year or years in which each series of the Bonds will mature, the principal amount to mature in each of such years, the aggregate principal amount of each series of the Bonds, the rate of interest to be borne by each such maturity, the first interest payment date or compounding date, as the case 8 may be, the dates, prices, and terms, if any, upon and at which each series of the Bonds shall be subject to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund redemption provisions, or make-whole provisions, and such officers are also hereby authorized to act on behalf of the City in approving all other matters relating to the issuance, sale and delivery of the Bonds and the purchase of a bond insurance policy or policies for all or any portion of the Bonds, all in accordance with the terms below: (a) the price to be paid for each series of the Bonds shall not be less than 90% of the aggregate original principal amount of the current interest bonds plus accrued interest, if any, thereon from their date to their delivery; (b) none of the Bonds shall bear interest at a rate greater than 6% per annum or in excess of the maximum rate allowed by Chapter 1204, Texas Government Code; (c) each series of the Bonds to be issued, prior to delivery, must have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long-term obligations; (d) to the extent the City shall purchase any Insurance Policy (one or more) issued by one or more Bond Insurers such policy or policies shall be determined to be most cost effective to the City for the Bonds and shall result in a net interest rate savings to the City which is greater than the costs of the premium of such policy or policies, for a term not to exceed 30 years, payable from and secured by Net Revenues, with an authorization period of 90 days, as may be certified in the Pricing Certificate; and Any finding by the Mayor, City Manager or the Chief Financial Officer relating to the sale and delivery of the Bonds and the purchase of bond insurance shall have the same force and effect as a finding or determination made by the City Council. 6. Bond Numbers and Denominations. Each series of Bonds shall be numbered from R-1 and upward (except the Initial Bond, which shall each be numbered I-1), and may be transferred and exchanged as set out in this Ordinance. Such Bonds shall mature on September 1 in each of the years and in the amounts set forth in the Initial Bond. The Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall be in the denomination of $5,000 or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as the Bonds or Bonds in lieu of which they are delivered. 7. Execution of Bonds; Seal. The Bonds shall be signed by the Mayor or Mayor Pro Tem and countersigned by the City Clerk or Deputy City Clerk, by their manual, lithographed, or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City had been manually impressed upon each of the Bonds. If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall 9 nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. 8. Approval by Attorney General; Registration by Comptroller. The Bonds to be initially issued shall be delivered to the Attorney General of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration Bond of the Comptroller of Public Accounts substantially in the form provided in the Pricing Certificate shall be attached or affixed to the Bonds to be initially issued. 9. Authentication. Except for the Bonds to be initially issued, which need not be authenticated by the Registrar, only such Bonds which bear thereon a certificate of authentication, substantially in the form provided in Section 19 of this Ordinance, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder. 10. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Bonds. The principal of and premium, if any, on the Bonds shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, whether at maturity or by prior redemption, at the principal corporate trust office of the Registrar. The interest on each Bond shall be payable by check on the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record Date, to the address of such Owner as shown on the Bond Register. Any accrued interest payable at maturity on a Bond shall be paid upon presentation and surrender of such Bond at the principal corporate trust office of the Registrar. If the date for payment of the principal of or interest on any Bond is not a Business Day, then the date for such payment shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the original date such payment was due. 11. Successor Registrars. The City covenants that at all times while any Bonds are outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Registrar for the Bonds. The City reserves the right to change the Registrar for the Bonds on not less than 60 days written notice to the Registrar, so long as any such notice is effective not less than 60 days prior to the next succeeding principal or interest payment date on the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Bond Register or copies thereof to the new Registrar, and the new Registrar shall notify each Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 12. Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The 10 Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) days prior to the Special Record Date, to each affected Owner of record as of the close of business on the day prior to the mailing of such notice. 13. Ownership; Unclaimed Principal and Interest. The City, the Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of principal of and premium, if any, or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the owner of any Bond in accordance with this Section 13 shall be valid and effectual and shall discharge the liability of the City and the Registrar upon such Bond to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law, including Title 6 of the Texas Property Code, as amended. 14. Registration, Transfer, and Exchange. So long as any Bonds remain outstanding, the Registrar shall keep the Bond Register at its principal corporate trust office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of this Ordinance. If the Registrar does not maintain its principal offices in the State of Texas, the City agrees to keep a Bond Register at its offices which is identical to the Bond Register maintained by the Registrar and the Registrar will notify the City as to any changes in the Bond Register within 1 business day. Each Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three (3) business days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same type, maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal corporate trust office of the Registrar for a Bond or Bonds of the same type, maturity and interest rate and in any authorized denomination, in an aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section 14. Each Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. 11 The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the City. Neither the City nor the Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Bond called for redemption in part. 15. Mutilated, Lost, or Stolen Bonds. Upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate, and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Registrar may require the Owner of a mutilated Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar. The City or the Registrar may require the Owner of a lost, apparently destroyed or wrongfully taken Bond, before any replacement Bond is issued, to: (1) furnish to the City and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (2) furnish such security or indemnity as may be required by the Registrar and the City to save them harmless; (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (4) meet any other reasonable requirements of the City and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Registrar to pay such Bond. 12 Each replacement Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. 16. Cancellation of Bonds. All Bonds paid in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding such payment. The Registrar shall furnish the City with appropriate Bonds of destruction of such Bonds. 17. Book-Entry System. (a) Notwithstanding any other provision hereof, upon initial issuance of the Bonds but at the sole election of the Underwriter, the ownership of the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, and except as otherwise provided in this Section, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. The definitive Bonds shall be initially issued in the form of a single separate Bond for each of the maturities thereof. If the Underwriter shall elect to invoke the provisions of this Section, then the following provisions shall take effect with respect to the Bonds. (b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than an Owner of a Bond, as shown on the Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than an Owner of a Bond, as shown in the Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the City and the Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on the Bonds, for the purpose of all matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the respective Owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City’s obligations with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner as shown in the Register, shall receive a Bond evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word “Cede & Co.” in this Ordinance shall refer to such new nominee of DTC. (c) In the event that the City in its sole discretion determines that the beneficial owners of the Bonds be able to obtain Bonds, or in the event DTC discontinues the services described herein, the City shall (i) appoint a successor securities depository, qualified to act as 13 such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify DTC and DTC Participants, as identified by DTC, of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC , as identified by DTC. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. (d) The execution and delivery of the Blanket Letter of Representations is hereby ratified and approved and the Mayor is hereby authorized and directed to execute a new Blanket Letter of Representations, if required, with such changes as may be approved by the Mayor or City Manager of the City. (e) Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bonds, and all notices with respect to such Bonds, shall be made and given, respectively, in the manner provided in the Blanket Letter of Representations. 18. Redemption and Defeasance. (a) Optional Redemption. The Bonds shall be subject to redemption prior to the stated maturity, at the option of the City at such times, in such amounts, in such manner and at such redemption prices as may be designated and provided for in the Pricing Certificate. (b) Partial Redemption. If less than all of the Bonds are to be redeemed pursuant to this Section, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity or maturities and in such principal amounts for redemption at the close of business on the Business Day next preceding the date of mailing such notice. (c) Notice of Redemption. Notice of any redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond, or portion thereof to be redeemed, at its address as it appeared on the Register on the close of business on the business day next preceding the date of mailing such notice; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so redeemed, thereby 14 automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/ Registrar shall record in the Register all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. Bonds may be redeemed only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the Registrar, in accordance with Section 14 hereof, shall authenticate and deliver in exchange therefor a Bond(s) of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond(s) so surrendered. The City, at least 45 days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Bonds to be redeemed. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. (d) Conditional Redemption. The City reserves the right in the case of an optional redemption to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date or (ii) that the City retains the right to rescind such notice at any time prior to the scheduled redemption date if the City delivers a certificate of the City to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected owners. Any Bonds subject to conditional redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not constitute an Event of Default. Further, in the case of a conditional redemption, the failure of the City to 15 make moneys and/or authorized securities available in part or in whole on or before the redemption date shall not constitute an Event of Default. (e) Defeasance. The City may defease the provisions of this Ordinance or any ordinance applicable to any Parity Bonds being defeased and discharge its obligation to the Owners of any or all of the Bonds, or any or all Parity Bonds to pay principal, interest and redemption premium, if any, thereon in any manner permitted by law, including by depositing with the Paying Agent/Registrar, or if authorized by Texas law, with any national or state bank having trust powers and having combined capital and surplus of at least $50 million, or with the State Treasurer of the State of Texas either: (a) cash in an amount equal to the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; or (b) pursuant to an escrow or trust agreement, cash and/or direct bonds of, or bonds the principal of and interest on which are guaranteed by or secured by the pledge of direct bonds of the United States of America, in principal amounts and maturities and bearing interest at rates sufficient to provide for the timely payment of the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; provided, however, that if any of such bonds being defeased are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance or ordinance applicable to the Parity Bonds being defeased. Upon such deposit, such bonds being defeased shall no longer be regarded to be outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. 19. Form. The Form of Bond as set forth in the Pricing Certificate is hereby approved. The form of the Bonds, including the form of the Registrar’s Authentication Certificate, the form of Assignment, and the form of Registration Bond of the Comptroller of Public Accounts of the State of Texas which shall be attached or affixed to the Bonds initially issued shall be, respectively, substantially as set forth in the Pricing Certificate, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Ordinance. 20. Legal Opinion; CUSIP Numbers. The approving opinion of Holland & Knight LLP, Houston, Texas, Bond Counsel, and CUSIP Numbers may be printed on the Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Bonds. 21. (a) Pledge and Source of Payment. The City hereby covenants and agrees that all Gross Revenues of the System shall, as collected and received by the City, be deposited and paid into the special funds established in this Ordinance, and shall be applied in the manner hereinafter set forth, in order to provide for (i) the payment of all Maintenance and Operation Expenses and (ii) the payment of principal, interest and any redemption premiums on the Bonds, and all expenses of paying, securing and insuring the same. The Bonds are special obligations of the City payable solely from and secured by a lien on and pledge of the Net Revenues of the System, which Net Revenues shall, in the manner hereafter provided, be set aside for and are hereby pledged by the City to the payment of the Bonds and any Parity Bonds. The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the City or the System, except with respect to the Net 16 Revenues. THE HOLDER OF THIS OBLIGATION IS NOT ENTITLED TO DEMAND PAYMENT OF THIS OBLIGATION OUT OF ANY MONEY RAISED BY TAXATION. IT IS ORDERED AND DIRECTED that this Ordinance pledging Net Revenues for the payment of the Bonds to the extent provided herein be filed and recorded in the records of the City as necessary to cause the pledge to be valid under Section 1201.44 of the Government Code of Texas. At any time while any of the Bonds are outstanding, if it is determined by the City or demanded by the holder of any Bonds that further action by the City is required to make the pledge valid or maintain the validity of the pledge, the City covenants and hereby directs the officers of the City to make such filings, including but not limited to appropriate filings under Chapter 9 of the Business and Commerce Code of Texas as are necessary to make the pledge valid or continue its validity. (b) Rates and Charges. So long as any Parity Bonds remain outstanding, there shall be fixed, charged and collected rates and charges for the use and services of the System, which may be fully sufficient at all times: (i) to pay all Maintenance and Operation Expenses; and (ii) to produce Net Revenues in each fiscal year at least equal to 110 percent of the principal and interest requirements scheduled to occur in such fiscal year on all Parity Bonds then outstanding, but in no event less than the amount required to establish and maintain the Interest and Sinking Fund, and, to the extent that funds for such purpose are not otherwise available, to pay all other outstanding obligations payable from the Net Revenues of the System as and when the same become due. The City covenants that it will not grant or permit any free service from the System except for public buildings and institutions operated by the City. (d) Special Funds. The following special funds shall be maintained and accounted for as hereinafter provided so long as any of the Parity Bonds remain outstanding: (i) Waterworks and Sewer System Revenue Fund (the “Revenue Fund”); (ii) Waterworks and Sewer System Revenue Bond Interest and Sinking Fund (the “Interest and Sinking Fund”); and (iii) Waterworks and Sewer System Bond Reserve Fund (the “Reserve Fund”). The Revenue Fund shall be maintained as a separate account on the books of the City. The Interest and Sinking Fund and the Reserve Fund shall be maintained at an official depository bank of the City, separate and apart from all other funds and accounts of the City, and shall constitute trust funds which shall be held in trust for the benefit of the holders of the Parity Bonds, and the proceeds of which (except for interest income, which shall be transferred to the Revenue Fund) shall be and are hereby pledged to the payment of the Parity Bonds. All of the funds named above shall be used solely as provided in this Ordinance so long as any Parity Bonds remain outstanding. 17 (e) Flow of Funds. All Gross Revenues of the System shall be deposited as collected into the Revenue Fund. Moneys from time to time on deposit to the credit of the Revenue Fund shall be applied as follows in the following order of priority: (i) First, to pay Maintenance and Operation Expenses and to provide by encumbrance for the payment of all obligations incurred by the City for Maintenance and Operation Expenses which may include an operating reserve equal to one month’s estimated Maintenance and Operation Expenses. (ii) Second, to make all deposits into the Interest and Sinking Fund required by this Ordinance and any ordinance authorizing the issuance of any outstanding Additional Parity Bonds. (iii) Third, to make all deposits into the Reserve Fund required by this Ordinance and any ordinance authorizing the issuance of Additional Parity Bonds. (iv) Forth, to pay any amounts due to any bond insurer of Parity Bonds not paid pursuant to subsections (ii) or (iii) above. (v) Fifth, for any lawful purpose, including transfers to the General Fund as permitted by law. Such permitted transfers to the General Fund are hereby expressly authorized by this Ordinance and the purposes for which such surplus revenues may be used shall include, but not be limited to, payment of any other debt, expense, or obligation of the City. Whenever the total amounts on deposit to the credit of the Interest and Sinking Fund and the Reserve Fund shall be equivalent to the sum of the aggregate principal amount of all outstanding Parity Bonds plus the aggregate amount of all interest accrued and to accrue thereon, no further payments need be made into the Interest and Sinking Fund, and the Reserve Fund. (f) Interest and Sinking Fund. On or before the last Business Day of each month so long as any Parity Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, there shall be transferred into the Interest and Sinking Fund from the Revenue Fund the following amounts: (i) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the interest scheduled to become due on the Parity Bonds on the next interest payment date; and (ii) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the next maturing principal of the Parity Bonds, including the principal amounts of, and any redemption premiums on, any Parity Bonds payable as a result of the exercise or operation of any redemption provision contained in this Ordinance or in any ordinance authorizing the issuance of Parity Bonds. Moneys deposited to the credit of the Interest and Sinking Fund (except for interest income, which shall be transferred to the Revenue Fund) shall be used solely for the purpose of paying principal (either at maturity or prior redemption or to purchase Parity Bonds in the open 18 market to be credited against mandatory redemption requirements), interest and redemption premiums on the Parity Bonds, plus all bank charges and other costs and expenses relating to such payment, on a pro rata basis among all series of Parity Bonds. On or before each principal and/or interest payment date for the Parity Bonds, the City shall transfer from the Interest and Sinking Fund to the paying agents for the Parity Bonds an amount equal to the principal, interest and redemption premiums payable on the Parity Bonds on such date, together with an amount equal to all bank charges and other costs and expenses relating to such payment. The paying agents for the Parity Bonds shall totally destroy all paid Parity Bonds and coupons (if any) and shall provide the City with an appropriate Bond of destruction. (g) Reserve Fund. Unless the Reserve Fund is fully funded, on or before the last Business Day of each month so long as any Parity Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, and after making the transfers into the Interest and Sinking Fund required in the preceding Section, there shall be transferred into the Reserve Fund from the Revenue Fund an amount at least equal to one-sixtieth (1/60th ) of the average annual principal and interest requirements on the Parity Bonds, so that the Reserve Fund shall contain, in no more than 60 months after the issuance of each such issue of Parity Bonds, money and investments in an aggregate amount at least equal to the average annual principal and interest requirements on all Parity Bonds then outstanding. After such amount has accumulated in the Reserve Fund and so long thereafter as such Fund contains such amount, no further deposits shall be required to be made into the Reserve Fund, and any excess amounts may be transferred to the Revenue Fund. But if and whenever the balance in the Reserve Fund is reduced below such amount, monthly deposits into such fund shall be resumed and continued in amounts at least equal to one-sixtieth (1/60th ) of the average annual principal and interest requirements on the Parity Bonds until the Reserve Fund has been restored to such amount; provided however, if a Reserve Fund Policy has been obtained by the City pursuant to the next paragraph below, then the provisions of such next paragraph shall govern and control with respect to replenishment of amounts drawn under the Reserve Fund Surety Policy. The Reserve Fund shall be used to pay the principal of and interest on the Parity Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose and it may be used finally to pay and retire the last Parity Bonds to mature or be redeemed. To the extent permitted by law, the City expressly reserves the right at any time to satisfy all or any part of the amounts required to be on deposit in the Reserve Fund (the “Reserve Fund Requirement”) by obtaining for the benefit of the Reserve Fund one or more Reserve Fund Surety Policies (a “Reserve Fund Surety Policy”). The purchase of such Reserve Fund Surety Policy is approved, and the Mayor, Mayor Pro-Tem, City Manager, Chief Financial Officer, City Clerk, Deputy City Clerk, and all other appropriate officers and agents of the City are each authorized to execute such documents, including but not limited to a reimbursement agreement, to grant a subordinated pledge and lien on the Net Revenues as security for the payment of amounts due under the reimbursement agreement (which grant if made is hereby approved), and to do any and all things necessary or desirable to obtain such a Policy if in the discretion of the acting official deems its acquisition in the best interests of the City. In the event the City elects to substitute at any time a Reserve Fund Surety Policy for any funded amounts in the Reserve Fund, it may apply any bond proceeds thereby released, to the greatest extent permitted by law, to any purposes for which the bonds were issued, and if all such purposes have been satisfied, to 19 the payment of debt service on such bonds, and it may apply any other funds thereby released to any of the purposes for which such funds may lawfully be applied including the payment of debt service on the Parity Bonds. A Reserve Fund Surety Policy shall be an insurance policy or other similar guarantee in a principal amount equal to the portion of the Reserve Fund Requirement to be satisfied which is issued by a financial institution or insurance company with a rating for its long term unsecured debt or claims paying ability of at least an investment grade category by two major municipal securities evaluation sources. The premium for any such policy shall be paid from bond proceeds or other funds of the City lawfully available for such purpose. The City reserves the right to fund any increase in the Reserve Fund Requirement caused by the issuance of Additional Parity Bonds by the purchase of a Reserve Fund Surety Policy in the amount of such increase or by making transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts sufficient to accumulate the increase in the Reserve Fund Requirement within sixty (60) months of the issuance of such Additional Parity Bonds. If the Reserve Fund contains only cash and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement at any time, the City shall make monthly transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts sufficient to restore the balance in the Reserve Fund to the Reserve Fund Requirement within twelve (12) months of the date on which the balance in the Reserve Fund was so reduced. If the Reserve Fund contains a Reserve Fund Surety Policy (and no cash) and a draw is made against such policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to reimburse the amount drawn under such policy within twelve (12) months. If the Reserve Fund contains a combination of cash and a Reserve Fund Surety Policy, and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement by a combination of cash withdrawals and draws against the Reserve Fund Surety Policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to restore the cash balance in the Reserve Fund and reimburse the amount drawn under such policy within twelve (12) months, with reimbursement to be made for all amounts drawn under such policy before any cash deposits are made into the Reserve Fund. Any reimbursement of amounts drawn against a Reserve Fund Surety Policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided herein. Notwithstanding anything to the contrary contained herein, the requirement set forth above in this subsection to maintain the Reserve Fund Requirement in the Reserve Fund shall be suspended for such time as the Net Revenues for each Fiscal Year are equal to at least 1.30 times the Average Annual Debt Service Requirements. In the event that the Net Revenues for any Fiscal Year are less than 1.30 times the Average Annual Debt Service Requirements, the City will be required to commence making Required Reserve Fund Deposits, as provided above, and to continue such Required Reserve Fund Deposits until the earlier of (i) such time as the Reserve Fund contains the Reserve Fund Requirement or (ii) the Net Revenues in each of two consecutive years have been equal to not less than 1.30 times the Average Annual Debt Service Requirements. During such time as the Reserve Fund contains the Reserve Fund Requirement or the obligation to maintain the Reserve Fund Requirement has been suspended pursuant to the paragraph above, the City may, at its option, withdraw all surplus funds in the Reserve 20 Fund and deposit such surplus in the Interest and Sinking Fund or otherwise use such amount in any manner permitted by law. (h) Deficiencies in Funds. If in any month there shall not be deposited into any Fund maintained pursuant to this Section 21 the full amounts required herein, amounts equivalent to such deficiency shall be set apart and paid into such Fund or Funds from the first available and unallocated money in the Revenue Fund, and such payment shall be in addition to the amounts otherwise required to be paid into such Funds during the succeeding month or months. To the extent necessary, the rates and charges for the System shall be increased to make up for any such deficiencies. (i) Investment of Funds; Transfer of Investment Income. Money in each Fund maintained pursuant to this Section of this Ordinance may, at the option of the City, be invested as permitted by law, provided that all such deposits and investments shall be made in such manner that the money required to be expended from any Fund will be available at the proper time or times. Any obligation in which money is so invested shall be kept and held in the Fund from which the investment was made. All such investments shall be promptly sold when necessary to prevent any default in connection with the Parity Bonds. All interest and income derived from such deposits and investments shall be transferred or credited as received to the Revenue Fund, and shall constitute Gross Revenues of the System; provided, however, to the extent such interest and income is derived from bond proceeds, such interest and income shall not constitute Gross Revenues of the System and shall only be used for the purposes for which the bond proceeds may be used. 22. Additional Bonds. (a) Additional Parity Bonds. In addition to the right to issue bonds of inferior lien as authorized by law, the City reserves the right to issue, for any lawful purpose, including the refunding of any previously issued, Parity Bonds or any other bonds or obligations of the City issued in connection with the System, one or more series of Additional Parity Bonds payable from, and secured by a lien on and pledge of, the Net Revenues of the System, on a parity with the Bonds and any other Additional Parity Bonds then outstanding; provided, however, that no Additional Parity Bonds may be issued unless: (i) The City shall not hereafter issue any additional obligations possessing a lien on the Net Revenues of the System superior to that to be possessed by the Parity Bonds; (ii) The Additional Parity Bonds mature on September 1, and interest is payable on March 1 and September 1; (iii) The Interest and Sinking Fund and the Reserve Fund contain the amount of money then required to be on deposit therein; (iv) For either the preceding Fiscal Year or any consecutive 12-month calendar period ending no more than 90 days prior to adoption of the ordinance authorizing such Additional Parity Bonds, Net Revenues were equal to at least 125% of the average annual principal and interest requirements on all Parity Bonds that will be outstanding after the 21 issuance of the series of Additional Parity Bonds then proposed to be issued, as certified by the City’s Finance Officer or by an independent certified public accountant or firm of independent certified public accountants; or (v) If the City cannot meet the test described in (iv) above, but a change in the rates and charges applicable to the System becomes effective at least sixty (60) days prior to the adoption of the ordinance authorizing Additional Parity Bonds and the City’s Finance Officer certifies that, had such change in rates and charges been effective for the preceding fiscal year or 12 consecutive calendar month period ending no more than 90 days prior to adoption of said ordinance, the Net Revenues for such period would have met the test described in (iv) above. (b) Subordinate Lien Obligations. The City reserves the right to issue, for any lawful purpose, bonds, notes or other obligations (including but not limited to reimbursement agreements undertaken to obtain reserve fund security policies) secured in whole or in part by liens on and pledges of the Net Revenues that are junior and subordinate to the lien on and pledge of Net Revenues securing payment of the Parity Bonds. Such subordinate lien obligations may be further secured by any other source of payment lawfully available for such purposes. (c) Special Project Bonds. The City reserves the right to issue revenue bonds secured by liens on and pledges of revenues and proceeds derived from Special Projects. 23. Covenants and Provisions Relating to all Parity Bonds. (a) Punctual Payment of Parity Bonds. The City will punctually pay or cause to be paid the interest on and principal of all Parity Bonds according to the terms thereof and will faithfully do and perform, and at all times fully observe, any and all covenants, undertakings, stipulations and provisions contained in this Ordinance and in any ordinance authorizing the issuance of Additional Parity Bonds. (b) Maintenance of System. So long as any Parity Bonds remain outstanding, the City covenants that it will at all times maintain the System, or within the limits of its authority cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical manner at a reasonable cost and in accordance with sound business principles. In operating and maintaining the System, the City will comply with all contractual provisions and agreements entered into by it and with all valid rules, regulations, directions or order of any governmental, administrative or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation of the System. (c) Sale or Encumbrance of System. So long as any Parity Bond remains outstanding, the City will not sell, dispose of or, except as permitted in this Ordinance, further encumber the System; provided, however, that this provision shall not prevent the City from disposing of any portion of the System which is being replaced or is deemed by the City to be obsolete, worn out, surplus or no longer needed for the proper operation of the System. Any agreement pursuant to which the City contracts with a person, corporation, municipal corporation 22 or political subdivision to operate the System or to lease and/or operate all or part of the System shall not be considered as an encumbrance of the System. (d) Insurance. The City further covenants and agrees that it will keep the System insured with insurers of good standing against risks, accidents or casualties against which and to the extent insurance is customarily carried by political subdivisions of the State of Texas operating similar properties, to the extent that such insurance is available. The cost of all such insurance, together with any additional insurance, shall be a part of the Maintenance and Operation Expenses. All net proceeds of such insurance shall be applied to repair or replace the insured property that is damaged or destroyed, or to make other capital improvements to the System, or to redeem Parity Bonds. (e) Accounts, Records and Audits. So long as any Parity Bonds remain outstanding, the City covenants and agrees that it will maintain a proper and complete system of records and accounts pertaining to the operation of the System in which full, true and proper entries will be made of all dealings, transactions, business and affairs which in any way affect or pertain to the System or the Gross Revenues or the Net Revenues thereof. The City shall after the close of each of its Fiscal Years cause an audit report of such records and accounts to be prepared by an independent certified public accountant or independent firm of certified public accountants. Each year promptly after such audit report is prepared, the City shall furnish a copy thereof without cost to the Municipal Advisory Council of Texas and any holders of Parity Bonds who shall request same. All expenses incurred in preparing such audits shall be Maintenance and Operation Expenses. (f) Competition. To the extent it legally may, the City will not grant any franchise or allow for the acquisition, construction or operation of any competing facilities which might be used as a substitute for the System and will prohibit the operation of any such competing facilities. (g) Pledge and Encumbrance of Net Revenues. The City covenants and represents that it has the lawful power to pledge the Net Revenues to the payment of the Parity Bonds and has lawfully exercised such power under the Constitution and laws of the State of Texas. The City further covenants and represents that, other than to the payment of the Parity Bonds, the Net Revenues are not and will not be pledged to the payment of any debt or obligation of the City, or in any other manner encumbered unless such pledge or encumbrance is junior and subordinate to the lien and pledge securing payment of the Parity Bonds. (h) Remedies. This Ordinance shall constitute a contract between the City and the holders of the Parity Bonds from time to time outstanding, and shall remain in effect until the Parity Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall have been made as provided herein. In the event of a default in the payment of the principal of or interest on any of the Parity Bonds or a default in the performance of any duty or covenant provided by law or in this Ordinance, the holder or holders of any of the Parity Bonds, as appropriate, may pursue all legal remedies afforded by the Constitution and laws of the State of Texas to compel the City to remedy such default and to prevent further default or defaults. Without in any way limiting the generality of the foregoing, it is expressly provided that any holder of any of the Parity Bonds may at law or in equity, by suit, action, mandamus, or other 23 proceedings, enforce and compel performance of all duties required to be performed by the City under this Ordinance, including the making and collection of reasonable and sufficient rates and charges for the use and services of the System, the deposit of the Gross Revenues thereof into the special funds as herein provided, and the application of such Gross Revenues and Net Revenues in the manner required in this Ordinance. Acceleration of payment of principal of or interest on the Parity Bonds shall not be a remedy of default. (i) Legal Holidays. In any case where the date fixed for payment of interest on or principal of the Parity Bonds or the date fixed for redemption of any Parity Bonds shall be a legal holiday or a day on which a paying agent for the Parity Bonds is authorized by law to close, then payment of interest or principal by such paying agent need not be made on such date but may be made on the next succeeding business day with the same force and effect as if made on the date fixed for such payment and no interest shall accrue for the period from such date to the date of actual payment. (j) Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. 24. Further Proceedings. After the Bonds to be initially issued shall have been executed, it shall be the duty of the Mayor and other appropriate officials and agents of the City to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General of the State of Texas, for examination and approval. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Bonds to be initially issued, the Comptroller of Public Accounts (or the Comptroller’s bond clerk or an assistant bond clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller’s Registration Certificate prescribed herein and the seal of said Comptroller shall be impressed or placed in facsimile, thereon. 25. Engagement of Professionals. The City Council hereby (i) confirms the engagement of RBC Capital Markets, LLC, as Municipal Advisor, to the City, (ii) confirms the engagement of Holland & Knight LLP, as bond counsel to the City, and (iii) approves the underwriting syndicate as identified in the Pricing Certificate. 26. Proceeds of Sale. Proceeds from the sale of the Bonds, together with other funds of the City, if any, shall, promptly upon receipt by the City, be applied as set forth in the Pricing Certificate. Any proceeds remaining after the accomplishment of such purposes, including interest earnings on the investment of such proceeds, shall be deposited to the Interest and Sinking Fund. 27. Bond Insurance. (a) In order to obtain the lowest attainable interest rates on the Bonds, the Pricing Officers are authorized to enter into a credit agreement with one or more 24 Bond Insurers to obtain one or more bond insurance policies with respect to all or a portion of the Bonds as set forth in the Pricing Certificate. The Pricing Officers are authorized to execute and the City Clerk is authorized to attest and affix the City’s seal to any documents required in connection with the purchase of any such policy or policies. The City hereby agrees to provisions set forth in the Pricing Certificate. Any reimbursement of amounts drawn against such insurance policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided therein. Such amounts shall be limited to the extent permitted by law and subject to annual appropriation by the City. 28. Paying Agent/Registrar Agreement. The paying agent/registrar agreement (the “Paying Agent Agreement”) by and between the City and the Paying Agent, a form of which is attached to the Pricing Certificate, is hereby approved, together with such changes or revisions as may be necessary to accomplish the refunding or benefit the City, an is hereby authorized to be executed by the Mayor or Mayor Pro Tem and City Clerk for and on behalf of the City. 29. Official Statement. The Preliminary Official Statement and the Official Statement prepared in the initial offering and sale of the Bonds have been and are hereby authorized, approved and ratified as to form and content. The use of the Preliminary Official Statement and the Official Statement in the reoffering of the Bonds by the Underwriter is hereby approved, authorized and ratified. The proper officials of the City are hereby authorized to execute and deliver a Bond pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein, dated as of the date set forth herein. 30. No Personal Liability. No recourse shall be had for payment of the principal of or interest on any Bonds or for any claim based thereon, or on this Ordinance, against any official or employee of the City or any person executing any Bonds. 31. Continuing Disclosure Undertaking. (a) Annual Reports. The City undertakes and agrees for the benefit of the Bond holders to provide annually to the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized in this Ordinance (i) under the headings “CITY WATERWORKS AND SEWER SYSTEM REVENUE DEBT,” “ADMINISTRATION OF THE CITY,” “THE SYSTEM-WATER AND SEWER RATES” and in APPENDIX B. The information to be provided shall include the financial statements of the City prepared in accordance with the accounting principles the City may be required to employ from time to time pursuant to State law or regulation and audited, if the audit is completed within the period during which they must be provided. If the audit of such financial statements is not completed within such period, then the City shall provide unaudited financial statements for the applicable fiscal year to the MSRB within such six month period, and audited financial statements when the audit report on such statement becomes available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. 25 The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. (a) Material Event Notices. The City shall notify the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: i. Principal and interest payment delinquencies; ii. Non-payment related defaults, if material; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit enhancements reflecting financial difficulties; v. Substitution of credit or liquidity providers, or their failure to perform; vi. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determination of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; vii. Modifications to rights of Bondholders, if material; viii. Bond calls, if material, and tender offers; ix. Defeasances; x. Release, substitution or sale of property securing repayment of the securities, if material; xi. Rating changes; Note to paragraph (xi): For the purposes of the event identified in paragraph (k) of this section, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. xii. Bankruptcy, insolvency, or receivership, or similar event of the obligated person; 26 xiii. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement or undertake such action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; xiv. Appointment of a successor or additional paying agent or the change of name of a paying agent, if material: xv. Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material; and xvi. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City any of which reflect financial difficulties. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with section (a) above. All documents provided to the MSRB shall be accompanied by identifying information as prescribed by the MSRB. The City reserves the right to file all information and notices required under this Article through the facilities of DisclosureUSA or any other central post office approved by the SEC for such purpose. (b) Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an “obligated person” with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with Texas law that causes Bonds no longer to be outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT 27 SPECIFIED IN THIS SECTION OR FROM ANY STATEMENT MADE PURSUANT TO THIS SECTION. HOLDERS OR BENEFICIAL OWNERS OF BONDS MAY SEEK AS THEIR SOLE REMEDY A WRIT OF MANDAMUS TO COMPEL THE CITY TO COMPLY WITH ITS AGREEMENT. No default by the City with respect to its continuing disclosure agreement shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status or type of operations of the City, if (i) the agreement, as amended, would have permitted the Underwriter to purchase or sell the Bonds in the initial primary offering in compliance with the Rule, taking into account any amendments or interpretations of such rule to the date of such amendment, as well as such changed circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment, or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also amend or repeal the obligations and agreement in this Section if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, and the City may amend the agreement in its discretion in any other circumstance or manner, but in either case only to the extent that its right to do so would not prevent an underwriter from lawfully purchasing or reselling the Bonds in the primary offering of the Bonds in compliance with the Rule. If the City amends its agreement, it must include with the next financial information and operating data provided in accordance with its agreement an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of information and operating data so provided. 32. Repealer. All orders, resolutions, and ordinances, and parts thereof inconsistent herewith are hereby repealed to the extent of such inconsistency. 33. Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so ordered. 34. Amendment of Ordinance. (a) If and to the extent permitted by this Ordinance, the owners of the Bonds aggregating in the principal amount of 51% of the aggregate principal amount of the outstanding Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City provided, however, that without the consent of the owners of all of the Bonds at the time outstanding, nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Bonds so as to: (1) Make any change in the maturity of the outstanding Bonds; 28 (2) Reduce the rate of interest borne by any of the outstanding Bonds; (3) Reduce the amount of the principal payable on the outstanding Bonds; (4) Modify the terms of payment of principal of or interest on the outstanding Bonds, or impose any conditions with respect to such payment; (5) Affect the owners of less than all of the outstanding Bonds then outstanding; (6) Change the percentage of the principal amount of outstanding Bonds, necessary for consent to such amendment. (b) If at any time the City shall desire to amend this Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial newspaper or journal published in The City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agent for inspection by all owners of the Bonds. Such publication is not required, however, if notice in writing is given to each owner of the outstanding Bonds. Not less than thirty (30) days’ notice of the proposed amendment shall also be given by the City to the Underwriter. (c) Whenever at any time not less than thirty (30) days, and within one (1) year, from the date of the publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the owners of at least 51% in aggregate principal amount of the Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agent, the City Council may adopt the amendatory resolution in substantially the same form. (d) Upon adoption of any amendatory resolution pursuant to the provision of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory resolution, and the respective rights, duties and Bonds under this Ordinance of the City and all the owners of then outstanding Bonds, shall thereafter be determined, exercised and enforced hereunder, subject in all respect to such amendments. (e) Any consent given by the owner of the outstanding Bonds pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future owners of the same Bonds, during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agent and the City, but such revocation shall not be effective if the owners of 51% in aggregate principal amount of the then outstanding Bonds, as in this Section defined have, prior to the attempted revocation, consented to and approved the amendment. 29 (f) For the purpose of this Section, the fact of the owning of Bonds, by any owner of Bonds, and the amount and number of such Bonds, and the date of their owning same shall be determined by the Registration Books of the Paying Agent/Registrar. (g) The foregoing provisions of this Section notwithstanding, the City by action of the City Council (or as item (2) by the City Council or by the Mayor, Mayor Pro Tem, City Manager or Chief Financial Officer as to changes prior to issuance to comply with requirements by the Attorney General of Texas or Underwriter) may amend this Ordinance for any one or more of the following purposes: (1) To add to the covenants and agreements of the City in this Ordinance contained, other covenants and agreements thereafter to be observed, grant additional rights or remedies to the owners of bonds or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of clarifying matters or questions arising under this Ordinance, as are required by the Attorney General of Texas to obtain the Attorney General’s approval of the issuance of the Bonds or required by the Underwriter before their issuance or for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained in this Ordinance, or at any time before or after issuance as are necessary or desirable and not contrary to or inconsistent with this Ordinance, and in all events which shall not adversely affect the interests of the owners of the Bonds. (3) To modify any of the provisions of this Ordinance in any other respect whatever, provided that: (i) such modification shall be, and be expressed to be, effective only after all Bonds outstanding at the date of the adoption of such modification shall cease to be outstanding, and (ii) such modification shall be specifically referred to in the text of all Bonds issued after the date of the adoption of such modification. 35. Related Matters. To satisfy in a timely manner all of the City’s obligations under this Ordinance, the Mayor or Mayor Pro Tem, City Manager, Chief Financial Officer, City Clerk or any Deputy City Clerk, and all other appropriate officers and agents of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance of the Bonds, including without limitation, executing and delivering on behalf of the City all Bonds, consents, receipts, requests, and other documents as may be reasonably necessary to satisfy the City’s obligations under this Ordinance and to direct the application of funds of the City consistent with the provisions of this Ordinance. 36. Open Meeting. It is hereby officially found and determined that the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551 of the Texas Government Code. 30 37. Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Parity Bonds and the validity of the lien on and pledge of the Net Revenues to secure the payment of the Parity Bonds. 38. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. [The remainder of this page has intentionally been left blank.] 31 PASSED BY THE CITY COUNCIL of the City of Beaumont this 18th day of June, 2024. ________________________________ Mayor ATTEST: _______________________________ City Clerk #180598040_v3 EXHIBIT “A” FORM OF PRICING CERTIFICATE PRICING CERTIFICATE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 2024 THIS OFFICER’S PRICING CERTIFICATE is executed as of __________, 2024, by the Chief Financial Officer, Beaumont Texas (the “City”) pursuant to the authorization contained in the Ordinance of the City Council of the City adopted on June 20, 2024 (the “Ordinance”), authorizing the issuance of the captioned series of bonds and delegating to the undersigned the authority to agree to and stipulate certain terms and provisions thereof, all of which are set forth herein. Capitalized terms used in this Officer’s Pricing Certificate shall have the meanings assigned to them in the Ordinance. 1. Principal Amount, Numbers, Interest Rates and Maturities. The Bonds shall be issued in the total authorized principal amount of $___,000. The Bonds shall mature on September 1 in each of the years and in the amounts set out in the following schedule: [SCHEDULE] 2. Redemption. Optional Redemption. The Bonds stated to mature on and after September 1, 20___, are subject to optional redemption prior to maturity, in whole or in part, on September 1, 20___ or any date thereafter, at a redemption price of par plus accrued interest to the date of redemption. 3. Purchase Price. The sale of the Bonds is authorized pursuant to the form of the Bond Purchase Contract approved in the Ordinance at the following price: PRINCIPAL AMOUNT $______.00 Plus Net Original Issue Premium __________ Less Underwriter’s Discount __________ PURCHASE PRICE $__________ 4. Form of Bond. Pursuant to Section 19 of the Ordinance, the Form of Bond as set 2 #180598040_v3 forth in Exhibit A hereto is hereby approved. 5. The undersigned hereby finds, determines and declares, that in accordance with the requirements of the Ordinance, this Pricing Certificate complies with and satisfies the terms and provisions of the Ordinance in accordance with the delegation contained therein. 6. Pursuant to Section 5 of the Ordinance, I hereby further find and determine that: (a) the price to be paid for each series of the Bonds shall not be less than 90% of the aggregate original principal amount of the current interest bonds plus accrued interest, if any, thereon from their date to their delivery; (b) none of the Bonds shall bear interest at a rate greater than 6% per annum or in excess of the maximum rate allowed by Chapter 1204, Texas Government Code; (c) the aggregate principal amount of each subseries of the Bonds shall not exceed the maximum amount authorized in Section 3, and the sum of the principal amount of each series, plus net premium generated, plus any available funds of the City, if any, shall equal an amount sufficient to provide for the redemption of the Refunded Bonds as identified in the Officer’s Pricing Certificate, to pay costs of issuance of the Bonds, and (if necessary) a deposit to the reserve fund; (d) each series of the Bonds to be issued, prior to delivery, must have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long-term obligations; (e) the Insurance Policy is the most cost effective to the City for the Bonds and results in a net interest rate savings to the City which is greater than the costs of the premium of such policy. (f) in connection with each series of Bonds issued in whole or in part for refunding purposes, the refunding of the Refunded Bonds shall produce a net present value debt service savings of at least 4.50% of the principal amount of the Refunded Bonds being refunded with such series of Bonds; and 7. Deposit of Proceeds. (a) The amount of $__________ shall be deposited to the Project Fund and shall be applied as specified in the Ordinance. (b) The amount of $__________ shall be deposited with the Escrow Agent and shall be applied as specified in the Escrow Agreement. (c) The remaining balance shall be used to pay the costs of issuing the Bonds and refunding the Refunded Obligations; provided that any amount 3 #180598040_v3 representing a rounding or contingency amount shall be applied solely to pay costs of issuance of the Bonds. Amounts remaining after payment of costs of issuance shall be deposited to the Interest and Sinking Fund and applied to the payment of debt service on the Bonds. 8. Municipal Bond Insurance. (a) The City hereby acknowledges its obligations as set forth in Section 35 of the Ordinance. 9. The undersigned hereby finds and determines that the terms herein described are in the best interests of the City. <EXECUTION PAGE FOLLOWS> 4 #180598040_v3 IN WITNESS WHEREOF, I have hereunto set my hand this _________________________, 2024. ____________________________________ CITY MANAGER #180598040_v3 EXHIBIT A TO OFFICER’S PRICING CERTIFICATE FORM OF BOND FOR SERIES 2024 The form of the Bonds, including the form of the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, to accompany the Initial Bond, the form of Certificate of the Registrar and the form of Assignment appearing on the Bonds, shall be substantially as follows: (a) Form of Bonds. REGISTERED REGISTERED No. 1R-___ $__________ United States of America State of Texas CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2024 2INTEREST RATE: 2MATURITY DATE: BOND DATE: 2CUSIP NUMBER: _____% September 1, ____ July 15, 2024 _______ REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS 3THE CITY OF BEAUMONT, TEXAS (the “City”), promises to pay to the registered owner identified above, or registered assigns, on the date specified above, upon presentation and surrender of this Bond at the designated corporate trust office of UMB BANK, N.A., Houston, Texas (the “Registrar”), or at its principal payment office in Dallas, Texas, the principal amount identified above, payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of America, and to pay interest 1 Initial Bond shall be numbered I-1. 2 Omitted from Initial Bond. 3 The first paragraph of the Initial Bond shall read as follows: THE CITY OF BEAUMONT, TEXAS (the “City”), promises to pay to the registered owner identified above, or registered assigns, on the date specified below, upon presentation and surrender of this Bond at the designated corporate trust office of UMB BANK, N.A., Houston, Texas (the “Registrar”), or at its principal payment office in Houston, Texas, the principal amounts set forth in the following schedule: [Insert information regarding years of maturity, principal amounts and interest rates from Officer’s Pricing Certificate], payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of America, and to pay interest thereon at the rate shown above, calculated on the basis of a 360-day year of twelve 30-day months, from the later of ________, 2024, or the most recent interest payment date to which interest has been paid or duly provided for. Interest on this Bond is payable by check on March 1, 2025, and semiannually thereafter on each March 1 and September 1, mailed to the registered owner as shown on the books of registration kept by the Registrar as of the 15th day of the month next preceding each interest payment date. #180598040_v3 thereon at the rate shown above, calculated on the basis of a 360-day year of twelve 30-day months, from the later of _____, 2024, or the most recent interest payment date to which interest has been paid or duly provided for. Interest on this Bond is payable by check on March 1, 2025, and semiannually thereafter on each March 1 and September 1, mailed to the registered owner as shown on the books of registration kept by the Registrar as of the 15th day of the month next preceding each interest payment date. THIS BOND is one of a duly authorized issue of Bonds, aggregating $___,000 (the “Bonds”), issued in accordance with the Constitution and the laws of the State of Texas, particularly Chapters 1371, 1207 and 1502, Texas Government Code, as amended, for (i) finance capital expenditures acquisition, purchase, construction, reconstruction, improvement, renovation, expansion, or equipping of property, buildings, structures, facilities, or related infrastructure for the City’s waterworks and sewer system (the “Project”), (ii) discharge and make final payment of certain obligations of the City and (iii) paying costs of issuance of the Bonds, pursuant to the Ordinance, which Ordinance is of record in the official minutes of the City Council. THESE BONDS are special obligations of the City payable solely from and secured by a lien on and pledge of the Net Revenues (as defined in the Ordinance) of the City’s waterworks and sewer system (the “System”), such lien and pledge, however, being junior and subordinate to the lien on and pledge of such Net Revenues to the payment and security of the Prior Lien Bonds (as defined in the Ordinance). The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the City or the System, except with respect to the Net Revenues. THE HOLDER OF THIS OBLIGATION IS NOT ENTITLED TO DEMAND PAYMENT OF THIS OBLIGATION OUT OF ANY MONEY RAISED BY TAXATION. Subject to satisfying the terms and conditions prescribed therefor, the City has reserved the right to issue additional revenue obligations payable from and equally and ratably secured by a parity lien on and pledge of the Net Revenues in the same manner and to the same extent as the Bonds. [Insurance Provision] THE CITY RESERVES THE RIGHT, at its option, to redeem the Bonds having stated maturities on or after September 1, 20___, in whole or in part, on September 1, 20___, or any date thereafter, in integral multiples of $5,000, at a price of par plus accrued interest to the date fixed for redemption. Reference is made to the Ordinance for complete details concerning the manner of redeeming the Bonds. The Paying Agent shall select for redemption by lot, or by any other customary method that results in random selection, a principal amount of Term Bonds equal to the aggregate principal amount of such Term Bonds to be redeemed, shall call such Term Bonds for redemption on the scheduled mandatory redemption date, and shall give notice of such redemption in accordance with the Ordinance authorizing the Bonds. The principal amount of Term Bonds required to be mandatorily redeemed shall be reduced by the principal amount of Term Bonds which, at least 45 days prior to the mandatory redemption date, shall have been delivered to the Registrar for cancellation or shall have been optionally redeemed and not previously credited against a mandatory redemption requirement. The City, at least 45 days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Bonds to be redeemed. NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior the date fixed for redemption by first class mail, addressed to the registered owner of each Bond to be redeemed in whole or in part at the address shown on the books of registration kept by the Registrar. When Bonds or portions #180598040_v3 thereof have been called for redemption and due provision has been made to redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for redemption and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemption. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. The Bonds may be defeased as provided in the Ordinance authorizing the Bonds. THIS BOND is transferable only upon presentation and surrender at the principal corporate trust office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his authorized representative, subject to the terms and conditions of the Ordinance. THE BONDS are exchangeable at the principal corporate trust office of the Registrar for Bonds in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of this Ordinance. NEITHER THE CITY NOR THE REGISTRAR shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Bond called for redemption in part. THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond either (i) is registered by the Comptroller of Public Accounts of the State of Texas by registration certificate attached or affixed hereto or (ii) authenticated by the Registrar by due execution of the authentication certificate endorsed hereon. THE REGISTERED OWNER of this Bond, by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Ordinance. THE CITY has covenanted in the Ordinance that it will at all times provide a legally qualified registrar for the Bonds and will cause notice of any change of registrar to be mailed to each registered owner. IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, to exist and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been done in accordance with law; that the bonds of this series do not exceed any statutory limitation; and that provision has been made for the payment of principal and interest on this bond and all of the bonds of this series by the aforesaid lien on and pledge of the Net Revenues of the System. IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Clerk of the City and the official seal of the City has been duly impressed, or placed in facsimile, on this Bond. #180598040_v3 THE CITY OF BEAUMONT, TEXAS City Clerk, City of Beaumont, Texas Mayor, City of Beaumont, Texas [SEAL] #180598040_v3 FORM OF REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS COMPTROLLER’S REGISTRATION CERTIFICATE: REGISTER NO. _____ I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL this _____ day of ___________, 2024. ________________________________ Comptroller of Public Accounts (Seal) of the State of Texas xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx FORM OF REGISTRAR’S AUTHENTICATION CERTIFICATE REGISTRAR’S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been delivered pursuant to the Ordinance described in the text of this Bond. UMB Bank, N.A., Houston, Texas, as Registrar By: ____________________________________________ Authorized Signature #180598040_v3 Date of Authentication: ____________________________ xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx FORM OF ASSIGNMENT ASSIGNMENT For value received, the undersigned hereby sells, assigns, and transfers unto ________________________________________________________________________ (Please print or type name, address, and zip code of Transferee) ________________________________________________________________________ (Please insert Social Security or Taxpayer Identification Number of Transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints______________________________________________________________________ attorney to transfer said bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: _________________________ Signature Guaranteed: _____________________________ NOTICE: The signature above must correspond to the name of the registered owner as shown on the face of this bond in every particular, without any alteration, enlargement or change whatsoever. _________________________ NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 2 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Freddie Willard, Executive Director, Beaumont CVB MEETING DATE: June 18, 2024 REQUESTED ACTION: Council approve a resolution awarding Hotel Occupancy Tax Grant awards for FY25 funding. BACKGROUND In accordance with the new Hotel Occupancy Tax (HOT) Grant review process implemented last year, applications for HOT funding have been submitted for review by the Beaumont Convention and Visitors Bureau’s HOT Grant Review Committee. Attached are the recommendations from the Committee. Council is being asked to review and approve funding for the HOT grants, taking into consideration the applications submitted that were reviewed, evaluated and recommended by the HOT Grant Review Committee. FUNDING SOURCE Hotel Occupancy Tax RECOMMENDATION Approval of the Resolution. ATTACHMENTS Recommendations from the Beaumont Convention and Visitors Bureau (CVB) Hot Tax Grants Review Committee. 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 review and approve funding for the Hotel Occupancy Tax applications for the Hotel Occupancy Tax Grant FY25 cycle in the amount of $300,000.00 as follows: 409 Family $1,000.00 Aimed Dance $4,000.00 Art Museum of SETX (AMSET) $80,000.00 Beaumont Children’s Museum (BCM) $50,000.00 Beaumont Heritage Society (BHS) $19,000.00 Boomtown Film & Music Festival $6,000.00 Downtown Beaumont Cultural Arts District (DBCAD) $27,000.00 Lamar Research Foundation for Spindletop- Gladys City Boomtown Museum $8,000.00 Obana Three (Min Dai for BMT Mural Fest) $30,000.00 Texas Energy Museum $75,000.00 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 18th day of June, 2024. _______________________________ - Mayor Roy West - HOT Grant Review & Selection Committee Recommendations 2024 Grant Cycle for FY 2025 (October 2024 – September 2025) 2023 Grants 2024 Grant Cycle: → → → → → → → → → → Applicant FY24 Amount Awarded FY25 Amount Requested Review Committee RECOMMENDS For FY25 Council Approved Amounts for FY25 1 409 Family $2,000 $4,000 $1,000 2 Aimed Dance n/a $11,000 $4,000 3 Art Museum of SETX (AMSET) $70,000 $80,000 $80,000 4 Beaumont Children's Museum (BCM) $40,000 $78,807 $50,000 5 Beaumont Heritage Society (BHS) $20,000 $19,950 $19,000 6 Boomtown Film & Music Festival $1,000 $10,000 $6,000 7 Downtown Beaumont Cultural Arts District (DBCAD) $28,000 $30,000 $27,000 8 Lamar Research Foundation for Spindletop-Gladys City Boomtown Museum $9,000 $31,500 $8,000 9 Mardi Gras of SETX $20,000 $45,000 0 10 Obana Three (Min Dai for Bmt Mural Fest) $25,000 $100,000 $30,000 11 TEGNA Corporation n/a $42,850 0 12 Texas Energy Museum $85,000 $95,000 $75,000 Totals $300,000. $548,107 $300,000. $300,000. 2024 HOT GRANT APPLICANT SUMMARY FOR FY25 1. 409 Family Event: 409 Day 2024 Requested: $4,000 Funding for a one-day, free festival @Tyrrell Park that highlights the family-friendly offerings in the 409 area. 2. Aimed Dance Event: Aimed Dance Summer Fest 2025 Requested: $11,000 Funding for a 3-week Dance Festival which includes contemporary dance concerts, classes & training with guest choreographers. 3. Art Museum of SETX Program: Rotating exhibitions with educational programs Requested: $80,000 Funding for the quarterly exhibits, multiple educational programs, and community events throughout the year. 4. Beaumont Children’s Museum Program: 2025 Fish-O-Rama Tournament & Educational Programs Promotions Requested: $78,807 Funding for billboards/ads/media promotions for programs & Fishing Tournament held annually in July with host hotel nights 5. Beaumont Heritage Society Program: John J French Museum & Heritage Tourism Requested: $19,950 Funds for promotion of educational programs & events at the John J French Museum to attract out-of- town visitors, plus a new Heritage Tourism initiative - Guided Downtown Walking tours. 6. Boomtown Film Society Event: Boomtown Film & Music Festival Requested: $10,000 Funding for a film and music festival to celebrate local and international filmmakers, utilizing downtown Beaumont venues. 7. Downtown Beaumont Cultural Arts District Program: DBCAD Requested: $30,000 Funds to increase Arts activities by supporting local arts groups, events, and cultural arts activities which occur and promote the Beaumont’s 1 2024 HOT GRANT REVIEW & SELECTION COMMITTEE RECOMMENDATION REPORT A Hotel Occupancy Tax (HOT) is a tax charged to guests who stay in a hotel, motel, or overnight lodging. Under Texas law, local HOT revenue can be used only to directly promote tourism and the convention/hotel industry. This means the proceeds should be spent on projects or events that result in visitors or attendees staying overnight in the community, generating more hotel occupancy tax. The Beaumont Convention and Visitors Bureau (CVB), a department within the City of Beaumont, is funded exclusively through Hotel Occupancy Tax (HOT) dollars. The Beaumont CVB’s primary focus is to is to attract leisure tourists and business travelers, increase overnight stays and market Beaumont as a prime destination for conventions and meetings as well as its eco-tourism endeavors. In addition, the CVB has increased its promotional and tourism efforts and now operates four (4) visitor center buildings within the City of Beaumont. Historically, besides funding the CVB, a portion of the Hotel Occupancy Tax (HOT) dollars has been designated towards the Civic and Art Funding which has supported local museums and art groups within the City of Beaumont. Initially this Civic & Arts funding was allocated for only three museums and an arts council to redistribute to other arts and humanities groups as a separate grant application process. Several years ago, funding was allocated for a fourth museum and arts council funding was shifted as an official designated arts district organization in downtown Beaumont was created. As more organizations and museums were coming to the City of Beaumont for HOT funding, last year in 2023, the CVB assumed the management and administration of the Civic & Arts HOT funding by creating a competitive HOT Grants Application process for which organizations could apply. Eleven grant applications were submitted, and ten grants were awarded for a total of $300,000 for FY24. The CVB Budget and HOT Grants Budget both have extremely limited funds available. In addition, the total 2024 HOT Grant Requests for FY25 was nearly double the amount of available funds. A total of $300,000 is the amount available to distribute for this Civic & Arts Funding Grant cycle. While the 2024 HOT Grants Review and Selection Committee would love to support all the applicants with full funding, funding cuts are inevitable. Moreover, the HOT Grants Selection Committee carefully reviewed each application request y to be sure that the requests followed the HOT Grant guidelines and complied with the stipulations set for HOT funds as set by the State Law. The HOT Grants Review Committee made allocation decisions so that HOT Grant funds would be used to bring in visitors that will stay in hotels and increase the return on investment by generating trackable hotel rooms, generating more HOT revenues. Therefore, the 2024 HOT Grants Review and Selection Committee makes these recommendations for distributing the HOT Grant Funds for the Fiscal Year 2025 funding cycle as follows: 2 2024 HOT Grant Review & Selection Committee Allocation Recommendations: 1. 409 Day (409 Family) Amount Committee Recommended: $1,000 Amount Requested: $4,000 Committee Comments: While 409 Day is a great local event with growing attendance, Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel AND work with CVB Convention Sales Staff to generate the hotel room block. By giving some funding, the committee wants to encourage the event organizer to consider packaging and promotion of activities/event in a such way, so visitors would stay overnight. 2. Aimed Dance Amount Committee Recommended: $4,000 Amount Requested: $11,000 Committee Comments: While the Aimed Dance Summer Fest is a new HOT Grant Applicant, it has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms for this Summer Dance Festival in prior years. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 3. Art Museum of SETX (AMSET) Amount Committee Recommended: $80,000 Amount Requested: $80,000 Committee Comments: The Art Museum is an “anchor” museum on city property in downtown Beaumont and does promote its exhibitions and programs outside of area. AMSET does track everyone who comes into the museum at the front desk with a guest register asking specifically if they stay overnight in a hotel, showing strong visitor statistics. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits AND work with CVB Convention Sales Staff to generate a hotel room block for any of its museum exhibitions, activities, and/or functions. 4. Beaumont Children’s Museum (BCM) Amount Committee Recommended: $50,000 Amount Requested: $78,807 Committee Comments: Because BCM has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms for their annual Fishing Tournament. BCM has the highest visitor count of any museum in area and is using HOT funding for marketing their museum and activities by using billboard on IH-10 and other media. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 3 5. Beaumont Heritage Museum (BHS) Amount Committee Recommended: $19,000 Amount Requested: $19, 950 Committee Comments: John Jay French Museum is making efforts to promote and market their events, activities, and tours for out-of-town visitors. Their newest Heritage Tourism initiative also shows their commitment to share in the City’s downtown development. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for their special events and/or create an overnight package as they develop their new Heritage Tourism initiatives. 6. Boomtown Film and Music Festival Amount Committee Recommended: $6,000 Amount Requested: $10,000 Committee Comments: Boomtown Film Festival has improved its event this past year, and has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms in prior years. In addition, it supported downtown development as all venues for the festival were located in downtown Beaumont. Boomtown Film Festival should continue to receive some funding due to the recent designation of Beaumont Film-Friendly. Since HOT dollars must focus on bringing in out- of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 7. Downtown Beaumont Cultural Arts District (DBCAD) Amount Committee Recommended: $27,000 Amount Requested: $30,000 Committee Comments: Since DBCAD uses these funds to help other organizations promote and present cultural & arts-based events, festivals, and performances within the downtown Beaumont cultural district area, DBCAD is important for future growth of downtown. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for their arts events as well as any of the arts groups which they fund through HOT funds as well, so that visitor statistics and tracking hotel nights can improve. 4 8. Lamar Research Foundation (Spindletop Boomtown Museum) Amount Committee Recommended: $8,000 Amount Requested: $31,500 Committee Comments: Since Spindletop-Gladys City Boomtown Museum has now new staff and direction to increase their events and functions, this funding should help them market their functions to improve their visitor statistics. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for their large-scale events. 9. Mardi Gras of SETX Amount Committee Recommended: $NONE Amount Requested: $45,000 Committee Comments: Because the applicant has outstanding financial obligations to the City of Beaumont at the time when the HOT Grants Review and Selection Committee met, as stipulated in #6 Policy under the HOT Grant Application Guidelines, applicants are Not eligible for funding if they have any outstanding financial obligations to the City of Beaumont. 10. Obana Three (Min Dai) Amount Committee Recommended: $30,000 Amount Requested: $100,000 Committee Comments: Mural Festival, after 3 years, has shown the results in bringing national and international mural artists for the weekend festival of mural art throughout the city. The host hotel block for the mural artists was booked and tracked through the Beaumont CVB. It is recommended that Mural Fest focus their marketing and promotional efforts outside the city limits to increase the number of out-of-town visitors to stay overnight in Beaumont. Mural Fest may use HOT dollars on expenditures that promote the arts related to presentation, performance, execution, and exhibition of the art form, keeping in mind that ultimately the focus is on bringing in out-of-town visitors to stay overnight. It is recommended that the event organizer work with the CVB Staff to generate the host hotel room block and to coordinate promotional efforts. 11. TEGNA Corporation Amount Committee Recommended: $NONE Amount Requested: $42,850 Committee Comments: When considering all applicants, funding a for-profit media corporation to produce a generic, digital streaming TV commercial with no tangible data to support how to track and improve overnight hotel stays, when our local museums and non-profits are in great need and funds were so limited, the committee felt that it was best not to authorize funding for this application in this funding cycle. 11. Texas Energy Museum Amount Committee Recommended: $75,000 Amount Requested: $95,000 Committee Comments: While Energy Museum is one of the key museums downtown, the committee felt that the museum should begin to seek other, additional funding sources to support its operational needs independently. While less than requested, this amount is still substantial and keeps it in line with the funding level for the other museum on the same city property. The committee wants to see visitor statistics grow. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for events. 5 The process of selecting organizations for funding of a grant is a complex and challenging endeavor that requires careful consideration and evaluation. While many organizations submitted compelling proposals, not all can be selected due to various reasons. It’s important to note that the decision not to award full funding to certain organizations does not necessarily reflect a lack of merit in their projects or the potential impact they could have. We wanted to stress the importance of the new application process, policies and guidelines which is vital to following the Texas Tax Code and State Law as it pertains to the use of HOT dollars. Due to budget constraints, the number of applicants and the limited amount of funds available, we are recommending the above amounts to City Council and ask that they approve these recommendations since it serves to increase the number of visitors and overnight stays to Beaumont. 3 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution accepting maintenance of the water improvements in Wesley Addition Subdivision. BACKGROUND On May 29, 2024, a final inspection from Water Utilities was completed for the following: • Vinson Street, from Tram Road to approximately 1,300 feet heading south. Recommended for approval are the water improvements for Wesley Addition Subdivision, within the right-of-way only. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Wesley Addition RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, construction of the water improvements constructed in Wesley Addition Subdivision, within the right-of-way only have been completed as follows: Street • Vinson Street, from Tram Road to approximately 1,300 feet heading south; and, WHEREAS, the developers of said improvements desire to have these improvements accepted and maintained by the City; and, WHEREAS, the Director of the Public Works Department has determined that said improvements meet the City’s standards and qualify for acceptance for permanent maintenance, and the City Council is of the opinion that said improvements should be accepted and maintained by the City of Beaumont. 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 above-referenced water improvements in Wesley Addition Subdivision right- of-way only are hereby accepted by City of Beaumont and shall be continuously maintained by the City contingent upon filing of the final plat, complete with filings of dedication of all rights- of-way and easements required on the preliminary and final plats and installation of the streetlights and drainage infrastructure. 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 18th day of June, 2024. _______________________________ - Mayor Roy West - officially designated “Downtown Arts District” to tourists & locals. 8. Lamar Research Foundation Program: Spindletop-Gladys City Boomtown Museum Requested: $31,500 Funding for marketing of Museum’s monthly events and programs including educational activities, outdoor concerts, and other large- scale events such as Spookfest, Nov Fall Fest and December’s City of Lights. 9. Mardi Gras of SETX Event: Mardi Gras 2025 Requested: $45,000 Funding for Mardi Gras as a 4-day festival held in downtown Beaumont, located on the Great Lawn and Event Center, plus parades. This festival raises funds for local member non- profit/charity organizations. 10. Obana Three (Min Dai) Event: Mural Fest 2025 Requested: $100,000 Funding would be used for the mural artists, paint supplies and equipment rentals such as scaffolding, lifts, lights, etc. so artists can paint large scale murals during the multi-day festival. Hotel room block used for national/international mural artists. 11. TEGNA Corporation Digital Streaming Production: Beaumont Tourism Commercial Requested: $42,850.00 Funding to produce 30-second digital television commercial promoting Beaumont attractions, which would be aired on Premion, a leading digital television platform. 12. Texas Energy Museum Program: Annual Educational Programming, & Historic Object Conservation for Museum Collections and Exhibits Requested: $95,000 Funding for the yearly educational programs and activities as well as exhibit collections and historic object conservation efforts while promoting Museum Events such as Dinosaur Day, Family Energy Day, Children’s Holiday Tree Lighting event. 4 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution approving the repair of two pumps for the Royal Street Underpass Pump Station. BACKGROUND The Royal Street Underpass Pump Station pumps storm water from Dr. Martin Luther King, Jr. (MLK) Parkway in the section between Franklin St and College St. The station operates four (4) submersible pumps. Due to the age of the pumps and the abrasive nature of the storm water, the pumps began to fail and need significant repairs to continue to function until new pumps can be acquired. The station is currently operating with two pumps, supplemented by one (1) temporary pump. Triangle Rotating Equipment Specialists of Nederland, TX, was hired to inspect the pumps, and determine what repairs are required. The repair scope is to blast and prime all parts; clean, rewind, dip, and bake the motor; replace all bearings; repair all seals and furnish new O-rings; reassemble motor and pump; test run start up. The work is expected to be completed before the end of July. All work not to exceed $110,000. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS Royal Street Underpass Pump Station Pumps 3 & 4. 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 approve the repair of two (2) pumps for the Royal Street Underpass Pump Station from Triangle Rotating Equipment Specialists of Nederland, Texas in an amount not to exceed $110,000.00. 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 18th day of June, 2024. _______________________________ - Mayor Roy West - 5 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to award a contract to Underground Construction Solutions, LLC, of Houston, Texas for the LaBelle Park Waterline Extension (IH – 10 – LNVA Canal to Walden Road). BACKGROUND The LaBelle Park Waterline Extension will upgrade the existing 6” water line to a new 12” water line along Interstate 10 from the LNVA Canal to Walden Road. On May 9, 2023, five (5) bids were received for furnishing all labor, materials, and equipment for the project. The Engineer’s Estimate for the contract is $608,045.00. The bid totals are indicated in the table below: Contractor Location Total Bid Amount Underground Construction Solutions, LLC Houston, TX $569,750.00 Eastex Utility Construction, LLC Beaumont, TX $726,610.00 SETEX Construction Corp. Beaumont, TX $746,100.00 Jet Aeration of Texas, LLC Vidor, TX $763,656.02 Brystar Contracting, Inc. Beaumont, TX $855,695.00 Based on review of the bids, required documents received, and background reference checks, Water Utilities recommends awarding the project to the lowest bidder, Underground Construction Solutions, LLC, in the amount of $569,750.00. A total of 120 calendar days are allocated for substantial completion of the project. FUNDING SOURCE Water Revenue Bonds. RECOMMENDATION Approval of the resolution. ATTACHMENTS LaBelle Park Waterline Extension (IH – 10 – LNVA Canal to Walden Road) Bid Tabulation RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on May 9, 2023, bids were solicited for a contract for the LaBelle Park Waterline Extension (IH-10-LNVA Canal to Walden Road); and WHEREAS, Underground Construction Solutions, LLC, of Houston, Texas, submitted a bid in the amount of $569,750.00; and, WHEREAS, the City Council is of the opinion that the proposal submitted by Underground Construction Solutions, LLC, of Houston, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Underground Construction Solutions, LLC, of Houston, Texas, in the amount of $569,750.00 for the LaBelle Park Waterline Extension (IH-10-LNVA Canal to Walden Road) be accepted by the City of Beaumont; and, THAT the City Manager be and he is hereby authorized to execute a contract with Underground Construction Solutions, LLC, of Houston, Texas, in the amount of $569,750.00 for the LaBelle Park Waterline Extension (IH-10-LNVA Canal to Walden Road). 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 18th day of June, 2024. _______________________________ - Mayor Roy West - 6 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution accepting maintenance of the street, storm sewer, water, and sanitary sewer improvements in Spring Wood Subdivision, Section 4. BACKGROUND On May 31, 2024, a final inspection from all entities was completed for the following: • Alexis Street approximately 407 feet extension northwest of existing Alexis Street to include Cul-de-sac. • Rachel Lane approximately 220 feet heading northeast from Alexis Street to include Cul- de-sac. Recommended for approval and acceptance are the street, storm sewer, water, and sanitary sewer improvements for Spring Wood, Section 4 right-of-way only. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Spring Wood Subdivision, Section 4 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, construction of the street, storm sewer, water and sanitary sewer improvements constructed in Spring Wood Subdivision, Section 4, have been completed as follows: • Alexis Street approximately 407 feet extension northwest of existing Alexis Street to include Cul-de-sac. • Rachel Lane approximately 220 feet heading northeast from Alexis Street to include Cul- de-sac. WHEREAS, the developers of said improvements desire to have these improvements accepted and maintained by the City; and, WHEREAS, the Director of the Public Works Department has determined that said improvements meet the City’s standards and qualify for acceptance for permanent maintenance; and WHEREAS, the City Council is of the opinion that said improvements should be accepted and maintained by the City of Beaumont; 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 above-referenced street, storm sewer, water and sanitary sewer improvements in Spring Wood Subdivision, Section 4, right-of-way only, with the exception of streetlights, are hereby accepted by City of Beaumont and shall be continuously maintained by the City contingent upon filing of the final plat, complete with filings of dedication of all rights-of-way and easements required on the preliminary and final plats and installation of the streetlights. 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 18th day of June, 2024. _______________________________ - Mayor Roy West - 7 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Sharae Reed, City Attorney MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider an ordinance denying Texas Gas Service Company proposed rates. BACKGROUND Texas Gas Service (TGS) filed an application with the City for an increase in gas service rates. The total rate increase requested is $25.8 million annually, representing a 15.59% increase in non-gas revenues. If approved, the average increase per residential customer would be $6.26 for usage of 17 Ccf per month and $9.53 for usage of 43 Ccf per month. If no action is taken the gas service rate increase will become effective on July 8, 2024. Approval of the ordinance will allow for proper review of the application. FUNDING SOURCE Reasonable expenses associated with rate cases are reimbursable by the company as proved for in the Public Utility Regulatory Act. RECOMMENDATION Approval of the ordinance. ATTACHMENTS ORDINANCE NO. ORDINANCE OF THE CITY OF BEAUMONT, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE EFFECTIVE DATE PROPOSED BY TEXAS GAS SERVICE COMPANY, A DIVISION OF ONE GAS, INC. IN CONNECTION WITH ITS STATEMENT OF INTENT TO INCREASE RATES WITHIN THE INCORPORATED AREAS OF THE CENTRAL-GULF SERVICE AREA, FILED ON JUNE 3, 2024; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY’S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about June 3, 2024, Texas Gas Service Company, a Division of ONE Gas, Inc. (“TGS” or “Company”) filed a Statement of Intent with the City of Beaumont (“City”) to increase gas rates within the unincorporated areas of its Central-Gulf Service Area by $25.8 million per year, with a proposed effective date of July 8, 2024; and, WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Texas Utilities Code § 103.001; and, WHEREAS, Texas Utilities Code § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and, WHEREAS, the City’s reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Texas Utilities Code § 103.022; and, WHEREAS, Texas Utilities Code § 104.107(a)(1) authorizes a local regulatory authority to suspend a utility’s proposed rate change for not longer than 90 days after the date the rate change would otherwise be effective; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until October 6, 2024, to allow the City’s rate experts sufficient time to determine the merits of TGS’s proposed rates; and, WHEREAS, to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating TGS’s $25.8 million rate increase request, City’s efforts will be coordinated with similarly situated municipalities in TGS’s Central-Gulf Service Area; and, WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. The effective date of TGS’s proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until October 6, 2024, in order to complete the review and investigation by City’s experts. Section 3. The City is authorized to join with other municipalities as part of the TGS Central-Gulf Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to TGS’s proposed rate increase before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to TGS for reimbursement. Section 6. City’s legal representatives shall have the right to obtain additional information from TGS through the service of requests for information, which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 7. TGS shall reimburse the City, through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 8. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. This ordinance shall become effective from and after its passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _______________________________ - Mayor Roy West - ATTEST: 8 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Demi Engman, Director of Planning and Community Development MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a request to abandon a sanitary sewer easement in Lot 8 of the College Acres Addition. BACKGROUND Jared Riggenbach has applied for the abandonment of a 6’ wide sewer line easement at 4595 College Street. The easement is located along the southern property line of Lot 8 in the College Acres Addition. Redevelopment of this property for an O’Reilly Auto Parts shop requires the sanitary sewer line to be re-routed to accommodate their plan, which necessitates an abandonment of the existing sewer easement. At a Joint Public Hearing held on February 26, 2024, the Planning Commission recommended 6:0 to approve the request to abandon a sanitary sewer easement in Lot 8 of the College Acres Addition, with the following condition: 1. A new easement and sanitary sewer line to be dedicated to the city. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance, with the following condition: 1. A new easement and sanitary sewer line to be dedicated to the city. ATTACHMENTS Legal Description Staff Report ORDINANCE NO. ENTITLED AN ORDINANCE ABANDONING A SANITARY SEWER EASEMENT IN LOT 8 OF THE COLLEGE ACRES ADDITION AT 4595 COLLEGE STREET, CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. WHEREAS, Jared Riggenbach, has applied for the abandonment of a 6’ wide sanitary sewer easement at 4595 College Street, being Lot 8 in the College Acres Addition, David Brown League Survey, Abstract No.5, City of Beaumont, Jefferson County, Texas, containing 0.0238 acres, more or less, as described in Exhibit “A,” and shown on Exhibit “B,” attached hereto; and, WHEREAS, the City Council has considered the purpose of said abandonment and is of the opinion the abandonment of a 6’ wide sanitary sewer easement at 4595 College Street, being the southern property line of Lot 8 in the College Acres Addition is in the best interest of the City and should be granted, with the following condition: 1. A new easement and sanitary sewer line to be dedicated to the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and, THAT the 6’ wide sanitary sewer easement at 4595 College Street, being Lot 8 in the College Acres Addition, David Brown League Survey, Abstract No.5, City of Beaumont, Jefferson County, Texas, containing 0.0238 acres, more or less, as described in Exhibit “A,” and shown on Exhibit “B,” attached hereto, be and the same is hereby vacated and abandoned and that title to such property shall revert to and become the property of the persons entitled thereto by law, with the following condition: 1. A new easement and sanitary sewer line to be dedicated to the City. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _______________________________ - Mayor Roy West - PUBLIC HEARING 1. Council to Conduct a Public Hearing to update the City’s Drought Contingency Plan and Conservation Plan as required Every 5 Years by the Texas Water Development Board. Citizens can make Comments Regarding Either Plan and the Changes Proposed. The Drought Contingency Plan Lays out the Guidelines for Implementing and Enforcing Water Use During Periods of High Demand and the Conservation Plan sets Goals to Reduce Water Per Capita. 2. Council to Conduct a Public Hearing to Receive Comments related to the Property Located at 328-338 Bowie Street & 486- 498 Pearl Street. 9 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider a resolution adopting the 2024 Water Conservation Plan and the revised Drought Contingency Plan by updating and renewing the City’s commitment to Chapter 22, Article 22.06, of the Code of Ordinances. BACKGROUND The Texas Commission on Environmental Quality (TCEQ) requires the City to have a Water Conservation Plan and a Drought Contingency Plan that are renewed every five (5) years. The Drought Contingency Plan has been updated to modernize the previous plan and to meet all the minimum requirements as set forth by TCEQ. The Conservation Plan has been updated with current data. The plans establish water conservation goals; criteria for the initiation and termination of drought response stages; restrictions on certain water use; penalties for the violation of and provisions for enforcement of these restrictions, and procedures for granting variances. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 2024 Water Conservation and Drought Contingency Plan RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the 2024 Water Conservation Plan is hereby adopted. The Plan is substantially in the form attached hereto as Exhibit “A;” and, BE IT FURTHER RESOLVED THAT the City of Beaumont hereby renews its commitment to Chapter 22, Article 22.06 “Drought Contingency Plan” of the Code of Ordinances. THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _____________________________ - Mayor Roy West - City of Beaumont 2024 Water Conservation and Drought Contingency Plan Prepared by: Edward Brown Water Utilities Designer II John Pippins III, EIT Water Utilities Design Manager Approved by: Amalia “Molly” Villarreal, P.E., CFM City Engineer Bart Bartkowiak Director of Public Works Public Works Department – Water Utilities 1350 Langham Rd. Beaumont, TX 77707 (409) 866-0026 June 18, 2024 Texas Commission on Environmental Quality Water Availability Division MC-160, P.O. Box 13087 Austin, Texas 78711-3087 Telephone (512) 239-4600, FAX (512) 239-2214 Utility Profile and Water Conservation Plan Requirements for Municipal Water Use by Retail Public and Wholesale Water Suppliers This form is provided to assist retail public water suppliers in water conservation plan assistance in completing this form or in developing your plan, please contact the Conservation staff of the Resource Protection Team in the Water Availability Division at (512) 239-4600. Water users can find best management practices (BMPs) at the Texas Water Development Board's website http://www.twdb.texas.gov/conservation/BMPs/index.asp. The practices are broken out into sectors such as Agriculture, Commercial and Institutional, Industrial, Municipal and Wholesale. BMPs are voluntary measures that water users use to develop the required components of Title 30, Texas Administrative Code, Chapter 288. BMPs can also be implemented in addition to the rule requirements to achieve water conservation goals. Contact Information Name of Water Supplier: Address: City of Beaumont 1350 Langham Rd (409) 785-4720 3805, 4415, 4480 Telephone Number: Water Right No.(s): Fax: ( ) Regional Water Planning Group: I Water Conservation Coordinator (or person responsible for implementing conservation program): Edward Brown Phone: (409) 785-4720 Form Completed by: Title: Edward Brown Water Utilities Designer II Signature: Date: A water conservation plan for municipal use by retail public water suppliers must include the following requirements (as detailed in 30 TAC Section 288.2). If the plan does not provide information for each requirement, you must include in the plan an explanation of why the requirement is not applicable. TCEQ-20162 (Rev. 04/2022) Page 1 of 14 Utility Profile I. POPULATION AND CUSTOMER DATA A. Population and Service Area Data 1. Attached is a copy of the City of Beaumont service-area map and a copy of your Certificate of Convenience and Necessity (CCN). 2. Service area size (in square miles): 103.65 Sq. Miles (Please attach a copy of service-area map) 3. Current population of service area: 126,431 4. Current population served for: a. Water 112,089 b. Wastewater 113,297 5. Population served for previous five years: Year 2023 2022 2021 2020 2019 Population 112,089 115,282 115,282 116,825 118,428 TCEQ-20162 (Rev. 04/2022) Page 2 of 14 6. Projected population for service area in the following decades: Year 2030 2040 2050 2060 2070 Population 126,810 139,491 153,440 168,758 181,406 7. List source or method for the calculation of current and projected population size. The data provided comes from sources such as the 2024 Water Supply Planning Study completed by Freese and Nichols and past TWDB Water Loss and Water Audit reports. B. Customer Data Senate Bill 181 requires that uniform consistent methodologies for calculating water use and conservation be developed and available to retail water providers and certain other water use sectors as a guide for preparation of water use reports, water conservation plans, and reports on water conservation efforts. A water system must provide the most detailed level of customer and water use data available to it, however, any new billing system purchased must be capable of reporting data for each of the sectors listed below. More guidance can be found at: http://www.twdb.texas.gov/conservation/doc/SB181Guidance.pdf 1. Quantified 5-year and 10-year goals for water savings: Historic 5- year Average 5-year goal for year 2029 10-year goal Baseline for year 2034 184 65 Total GPCD 183 65 176 57 168 Residential GPCD 51 Water Loss GPCD 56 57 52 48 Water Loss Percentage 31% 31% 29% 28% Notes: Total GPCD = (Total Gallons in System ÷ Permanent Population) ÷ 365 Residential GPCD = (Gallons Used for Residential Use ÷ Residential Population) ÷ 365 Water Loss GPCD = (Total Water Loss ÷ Permanent Population) ÷ 365 Water Loss Percentage = (Total Water Loss ÷ Total Gallons in System) x 100; or (Water Loss GPCD ÷ Total GPCD) x 100 2. Current number of active connections. Check whether multi-family service is counted as Residential or Commercial? TCEQ-20162 (Rev. 04/2022) Page 3 of 14 Treated Water Users Residential Metered 56,821 41,997 14,824 3,967 22 Non-Metered Totals 56,821 41,997 14,824 3,967 22 0 0 0 0 0 0 0 0 Single-Family Multi-Family Commercial Industrial/Mining Institutional 117 117 Agriculture 960 960 Other/Wholesale 4,432 4,432 3. List the number of new connections per year for most recent three years. Year 2023 2022 2021 Treated Water Users Residential 8464 7321 1143 4 66 42 24 0 218 Single-Family 0 Multi-Family Commercial 218 0 Industrial/Mining Institutional Agriculture 0 5 7 0 2 0 194 119 137 190 0 Other/Wholesale 0 4. List of annual water use for the five highest volume customers. Customer Use (1,000 gal/year) Treated or Raw Water Martin Operating II. WATER USE DATA FOR SERVICE AREA A. Water Accounting Data 1. List the amount of water use for the previous five years (in 1,000 gallons). Indicate whether this is 2023 diverted or 2022 treated water. Year 2021 2020 2019 Month January February March 688,941.848 623,305.357 709,820.699 589,868.715 597,549.388 607,995.534 696,635.767 1,003,523.443 990,069.188 892,279.033 862,333.746 842,018.132 9,104,280.850 616,840.213 543,231.164 589,900.938 562,042.468 637,061.954 632,029.813 692,111.588 715,305.025 678,860.768 727,434.718 650,979.793 640,626.508 7,888,965.998 610,748.098 763,066.296 604,746.800 586,542.954 597,158.050 663,684.080 611,925.194 671,085.708 644,965.443 727,434.718 650,979.793 640,626.508 7,772,963.642 573,824.671 535,647.836 569,741.075 560,043.351 583,431.160 583,712.280 675,168.160 673,967.980 Year 2023 2022 2021 2020 2019 Account Types Residential 2,964,779.5 2,257,438.4 707,341.1 2,606,085.4 1,971,391.9 634,693.5 164,612.0 181,650.9 61,090.2 2,686,571.6 2,004,295.2 682,276.4 1,614,788.6 167,511.7 69,346.2 278,864.7 2,112,261.5 676,384.2 161,6581.6 233,539.6 59,245.4 2,660,679.4 1,992,870.5 661,808.9 1,707,578.6 278,762.5 82,731.9 Single-Family Multi-Family Commercial Industrial/Mining Institutional Agriculture 1,827,804.951 205,262.5 69,215.8 263,694.1 194,460.3 442,223.78 141,176.1 460,271.7 170,000.6 490,583.7 175,491.5 Other/Wholesale 631,597.247 541,957.2 4. List the previous records for water loss for the past five years (the difference between water diverted or treated and water delivered or sold). Year 2023 2022 2021 2020 2019 Amount (gallons) 2,988,307,118 2,566,886,396 2,304,299,792 1,923,648,285 1,546,089,727 14,300 3. Current population served for: a. Water 13,297 b. Wastewater 14,300 4. Population served for previous five years: Year 2023 2022 2021 2020 2019 Population 14,300 13,984 13,427 13,470 14,428 5. Projected population for service area in the following decades: Year 2020 2030 2040 2050 2060 Population 13,470 14,084 16,023 17,172 18,459 TCEQ-20162 (Rev. 04/2022) Page 7 of 14 6. List source or method for the calculation of current and projected population size. The population projections are a combination of all our wholesale customers within Jefferson County according to the projections in the 2021 Regional Water Plan Volume I. B. Customer Data List (or attach) the names of all wholesale customers, amount of annual contract, and amount of annual use for each customer for the previous year: Contracted Amount (acre-feet) Previous Year Amount of Wholesale Customer Water Delivered (acre-feet) Cardinal Meadows 58.11 9.726 Federal Bureau of Prisons 1,064.84 0 698.654 Meeker MUD 0 Northwest Forest MUD 81.82 57.404 Texas Department of Criminal Justice 1,680.75 1,116.621 IV. WATER USE DATA FOR SERVICE AREA A. Water Delivery Indicate if the water provided under wholesale contracts is treated or raw water and the annual amounts for the previous five years (in acre feet): Year 2023 2022 2021 2020 2019 Totals Treated Water 1882.12 Raw Water 0 0 0 0 0 0 1356.93 1227.54 1283.44 1,613.55 7361.58 B. Water Accounting Data 1. Total amount of water diverted at the point of diversion(s) for the previous five years (in acre-feet) for all water uses: TCEQ-20162 (Rev. 04/2022) Page 8 of 14 Year Month 2023 2022 2021 2020 2019 January February March 137.71 144.85 134.09 140.09 186.66 176.27 200.82 180.63 138.95 136.71 131.58 172.95 1,882.12 108.31 104.55 101.87 107.50 110.11 121.24 106.76 120.63 123.27 111.29 115.74 125.66 1,356.93 110.78 110.4 91.15 112.46 86.30 142.64 117.72 128.88 132.41 136.34 131.52 130.62 165.28 140.38 142.24 133.82 141.68 1613.55 122.5 April 94.95 114.19 111.45 111.75 103.40 121.00 112.91 85.81 May 94.56 June 103.68 Water Type Surface Water Groundwater Other Source Amount Authorized Neches River 56,468.0 Chicot Aquifer 5,645.5 B. Treatment and Distribution System (if providing treated water) 1. Design daily capacity of system (MGD): 56 2. Storage capacity (MGD): a. Elevated 6.8 b. Ground 17.7 3. If surface water, do you recycle filter backwash to the head of the plant? Yes No If yes, approximate amount (MGD): 0.2 VI. WASTEWATER SYSTEM DATA A. Wastewater System Data (if applicable) 1. Design capacity of wastewater treatment plant(s) (MGD): 31.9 MGD at the Outfall 120 and 46 MGD at Outfall 001 2. Treated effluent is used for on-site irrigation, off-site irrigation, for plant wash- down, and/or for chlorination/dechlorination. If yes, approximate amount (in gallons per month): N/A 3. Briefly describe the wastewater system(s) of the area serviced by the water utility. Describe how treated wastewater is disposed. Where applicable, identify treatment plant(s) with the TCEQ name and number, the operator, owner, and the receiving stream if wastewater is discharged. The City’s wastewater collection system currently consists of approximately 3,838,500 linear feet (727 miles) of sewer gravity pipe, 337,700 feet (64 miles) of sewer force main, and 10,272 manholes. This collection system serves approximately 119,000 residents and is comprised of gravity lines ranging from 4 inches to 72 inches in diameter. There are five major pipeline interceptors and 77 City-owned lift stations assisting in transporting flow to the wastewater treatment plant. The wastewater treatment plant is the Hillebrandt Bayou Wastewater Treatment Plan, TPDES Permit No. 10501020 and is owned and operated by the City of Beaumont. The treated wastewater is discharged to the Hillebrandt Bayou in segment 0704 of the Neches – Trinity Coastal River Basin. B. Wastewater Data for Service Area (if applicable) 1. Percent of water service area served by wastewater system: 100% TCEQ-20162 (Rev. 04/2022) Page 10 of 14 2. Monthly volume treated for previous five years (in 1,000 gallons): Year Month 2023 2022 2021 2020 2019 January February March 979,100 675,500 484,400 653,200 734,600 512,400 451,400 428,600 494,800 448,900 465,000 621,900 6,890,200 542,190 454,600 515,000 449,500 481,200 418,900 491,000 679,500 544,200 456,300 882,700 785,200 6,700,290 690,100 701,600 522,300 505,500 882,400 850,100 1,043,000 569,900 709,700 663,600 520,300 525,000 8,183,500 896,100 604,600 465,800 427,500 720,800 537,400 544,700 547,100 709,700 602,600 552,400 897,300 7,327,200 859,100 Water Conservation Plan In addition to the utility profile, please attach the following as required by Title 30, Texas Administrative Code, §288.2. Note: If the water conservation plan does not provide information for each requirement, an explanation must be included as to why the requirement is not applicable. A. Record Management System The City of Beaumont records water sales through the Water Customer Service group which uses CentralSquare Technologies. The software separates water sales into different classes including Residential, Multi-Family, Commercial, Industrial, and Agricultural (Irrigation). Water Billing and Water Utilities also maintains records of the wholesale customers. Citywork’s is the record management system the City of Beaumont uses to track work orders, maintenance requests, permits, and flushing records. B. Specific, Quantified 5 & 10-Year Targets For this Water Conservation Plan, the City of Beaumont chose to use the historical averages from the previous 5 years as the baseline. The historic average for the total gallons per capita per day (GPCD), water loss CPCD, and Water loss percentage encompasses water usage from CY 2019 through CY 2023. The historic average for the residential GPCD encompasses water usage noted on the Water Use Survey from CY 2019 through CY 2023. The goal set in this Conservation Plan reflect reducing the total water use, measured in gallons per capita per day (GPCD), by 1.5% annually. The City plans to further implement leak detection and improve leak repairs in order to reduce water loss by 2.00 % annually to reach the goals set below. The City’s goal for reducing water loss GPCD was based on the water loss percentage and total GPCD goals. Historic 5- year Average 5-year goal for year 2029 10-year goal Baseline for year 2034 184 65 Total GPCD 183 65 170 65 158 Residential GPCD 65 Water Loss GPCD Water Loss Percentage 56 57 49 42 31% 31% 29% 27% C. Measuring and Accounting for Diversions The City of Beaumont meters the raw water intake to the Surface Water Treatment Plant (SWTP), treated water leaving the SWTP, each of the three ground water wells, and the high service pumps from the groundwater storage facility. Each meter is annually calibrated and remains within specification for accuracy. D. Universal Metering TCEQ-20162 (Rev. 04/2022) Page 12 of 14 The City’s Water Utilities department maintains the water meters throughout the distribution system. The City currently has a contract for Neptune water meters (See Attached product information). Customer water meters are tested based on requests from the customer for accuracy. Meters that fail to meet 90% accuracy during the test shall be replaced/repaired. Contractors in need of water for construction or other projects within city limits are required to use a cage meter to monitor water usage, it may be used to connect to any city owned fire hydrant. Contractors may also purchase bulk water from the city at a designated location where a cage meter is set up to monitor the amount they acquire. E. Measures to Determine and Control Water Loss Water loss has occurred from several sources: 1. Inaccuracies in customer meters. 2. Errors in customer meter data. 3. Miscellaneous usage from firefighting. 4. Error in flushing estimates. 5. Water main breaks and leaks in the distribution system. 6. Illegal connections and theft of water. Maintenance and Operation crews along with other City employees should report any evidence of leaks in the distribution system. Meter readers and Maintenance crews should look for signs of illegal connections and report them immediately to their supervisors, so they can be investigated. Leaks can also be reported by citizens through the City’s 311 call system or the 311 applications. F. Continuing Public Education & Information The City of Beaumont includes water conservation information with the annual water quality report. The City plans to make information on water conservation available on its website and include links to TCEQ, TWDB, and EPA sites as resources. G. Non-Promotional Water Rate Structure The City of Beaumont uses a non-promotional rate structure based on meter size. Refer to the Attachment document for a comprehensive breakdown of the City’s water rates this information can also be found in the City of Beaumont Ordinance. H. Reservoir Systems Operations Plan The City of Beaumont does not own or operate a reservoir system. I. Enforcement Procedure and Plan Adoption The 2024 Water Conservation Plan is expected to be reviewed by City Council on June 18, 2024. Once approved, a copy of the resolution granting approval will be included under Appendix G. J. Coordination with the Regional Water Planning Group(s) The City of Beaumont is located within Region I - East Texas Planning Group. The City will provide a copy of this Conservation Plan to the Regional I – East Texas Planning Group once it has been approved. TCEQ-20162 (Rev. 04/2022) Page 13 of 14 K. Plan Review and Update The City of Beaumont reviews its conservation programs and goals on an annual basis and submits an Annual Conservation Report to update regulatory agencies. The Water Conservation Plan and Water Conservation Improvement Report is reviewed and updated as necessary every 5 years in accordance with TCEQ requirements under Title 30 of the Texas Administrative Code (TAC) §288.30. The next Water Conservation Plan is expected by May 1, 2029 VIII. ADDITIONAL REQUIREMENTS FOR LARGE SUPPLIERS Required of suppliers serving population of 5,000 or more or a projected population of 5,000 or more within the next ten years: A. Leak Detection and Repair The City of Beaumont has invested in leak detection software and the maintenance and customer service division are able to use this technology to track down leaks. Maintenance and Operations crews are to report the type of material used to make repairs. B. Contract Requirements Each wholesale water supply contract entered into or renewed after the adoption of this plan will require wholesale customers to develop and implement a water conservation plan or water conservation measures using the applicable elements from the TECQ. If the customer intends to resell the water, the contract between the initial supplier and customer must provide that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with the previsions of the chapter. IX. ADDITIONAL CONSERVATION STRATEGIES Any combination of the following strategies shall be selected by the water supplier, in addition to the minimum requirements of 30 TAC §288.2(1), if they are necessary in order to achieve the stated water conservation goals of the plan. The commission may require by commission order that any of the following strategies be implemented by the water supplier if the commission determines that the strategies are necessary in order for the conservation plan to be achieved: 1. The City of Beaumont strives to increase its water line replacement program to lower the number of aging water lines that are the cause of leaks and discolored water calls. With this the City hopes to reduce the number of dirty water calls, lowering the amount of flushing that is needed throughout the system. TCEQ-20162 (Rev. 04/2022) Page 14 of 14 K. Plan Review and Update The City of Beaumont reviews its conservation programs and goals on an annual basis and submits an Annual Conservation Report to update regulatory agencies. The Water Conservation Plan and Water Conservation Improvement Report is reviewed and updated as necessary every 5 years in accordance with TCEQ requirements under Title 30 of the Texas Administrative Code (TAC) §288.30. The next Water Conservation Plan is expected by May 1, 2029 VIII. ADDITIONAL REQUIREMENTS FOR LARGE SUPPLIERS Required of suppliers serving population of 5,000 or more or a projected population of 5,000 or more within the next ten years: A. Leak Detection and Repair The City of Beaumont has invested in leak detection software and the maintenance and customer service division are able to use this technology to track down leaks. Maintenance and Operations crews are to report the type of material used to make repairs. B. Contract Requirements Each wholesale water supply contract entered into or renewed after the adoption of this plan will require wholesale customers to develop and implement a water conservation plan or water conservation measures using the applicable elements from the TECQ. If the customer intends to resell the water, the contract between the initial supplier and customer must provide that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with the previsions of the chapter. IX. ADDITIONAL CONSERVATION STRATEGIES Any combination of the following strategies shall be selected by the water supplier, in addition to the minimum requirements of 30 TAC §288.2(1), if they are necessary in order to achieve the stated water conservation goals of the plan. The commission may require by commission order that any of the following strategies be implemented by the water supplier if the commission determines that the strategies are necessary in order for the conservation plan to be achieved: 1. The City of Beaumont strives to increase its water line replacement program to lower the number of aging water lines that are the cause of leaks and discolored water calls. With this the City hopes to reduce the number of dirty water calls, lowering the amount of flushing that is needed throughout the system. TCEQ-20162 (Rev. 04/2022) Page 14 of 14 Appendix A Certificates of Convenience and Necessity (CCN)/ Service Area Map Public Utility Commision 11438 12892 12243 Pine Forest aks 10115 105 Vidor Beaumont 10998 69 Central 1Ga0r1de4n1s 10109 Nederland 13203 5/24/2024, 11:00:58 AM 1:160,119 0 0 1 2 4 mi Water CCN Facility Lines Water CCN Service Areas 1.75 3.5 7 km Texas Parks & Wildlife, CONANP, Esri, TomTom, Garmin, SafeGraph, METI/ NASA, USGS, EPA, NPS, USDA, USFWS Public Utility Commision Pine Forest aks 20595 20048 105 Vidor Beaumont 20400 69 Central 2Ga0r0de5n4s 20045 Nederland 5/24/2024, 11:00:18 AM 1:160,119 0 0 1 2 4 mi Sewer CCN Service Areas 1.75 3.5 7 km Texas Parks & Wildlife, CONANP, Esri, TomTom, Garmin, SafeGraph, METI/ NASA, USGS, EPA, NPS, USDA, USFWS Public Utility Commission ill t M 20365 Bevil Oaks ck Gu 105 105 5/24/2024, 3:27:34 PM 1:28,638 0 0 0.2 0.4 0.8 mi Sewer CCN Service Areas 0.33 0.65 1.3 km Texas Parks & Wildlife, CONANP, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, EPA, NPS, US Census Bureau, USDA, USFWS Appendix B Certificates of Convenience and Necessity 480,300 482,400 525,900 686,700 764,500 606,800 633,200 689,100 774,500 550,500 588,900 7,641,900 April May June July August September October November December Totals TCEQ-20162 (Rev. 04/2022) Page 11 of 14 July 93.52 August September October November December Totals 98.70 100.97 109.31 89.99 107.96 125.04 1283.44 98.55 1,227.54 2. Wholesale population served and total amount of water diverted for municipal use for the previous five years (in acre-feet): Total Annual Water Diverted for Year 2023 2022 2021 2020 2019 Total Population Served Municipal Use 13297 12939 12369 12393 13206 1882.12 1356.93 1227.54 1283.44 1613.55 C. Projected Water Demands See attached Appendix C. V. WATER SUPPLY SYSTEM DATA A. Water Supply Sources 1. List all current water supply sources and the amounts authorized (in acre feet) with each. TCEQ-20162 (Rev. 04/2022) Page 9 of 14 Appendix C 2024 Water Supply Planning Study by Freese and Nichols Water Supply Planning Study City of Beaumont, TX 2.0 PLANNING CRITERIA Long-term water supply planning must account for various factors, including the determined planning horizon, population growth, and wholesale demands. The following sections provide context for the impact of these factors on the City and describe how these factors were considered in the Water Supply Planning Study. 2.1 PLANNING HORIZON Freese and Nichols, Inc. (FNI) looked at population and demand for the City of Beaumont through the year 2070. Projections from both the published 2021 Region I Regional Water Plan (RWP) and the draft 2026 Region I RWP were considered. Projections for the 2021 Region I RWP extend out to 2070. 2.2 POPULATION AND WATER DEMAND PROJECTIONS FNI developed water demand projections for both low and high population scenarios. The low population scenario utilized draft population projections developed by Texas Water Development Board (TWDB) for use in the 2026 Region I (East Texas) RWP. The high population scenario utilized population projection data from the 2021 Region I RWP and projections from the City of Beaumont Planning Division (developed December 2022). Calculations for both scenarios used draft per-capita demands from TWDB, developed for the 2026 Region I RWP. These per-capita demand projections represent expected demand in a very dry year, so the projected retail demand is higher than what may be experienced in a typical year. Calculating both low- and high-water demand projections provides a better understanding of possible alternatives to meet future water demands and allows the City to more adequately plan how to meet these demands. 2.2.1 Population Growth and Retail Demands In July 2023, the Region I Regional Water Planning Group (RWPG) developed revised population projections for the City. This revised projection incorporates the 2030 population estimate from Beaumont’s planning division developed in December 2022. Then, the annual growth rate between the 2020 Census count and the City’s 2030 estimate (0.28%) was applied to estimate population in 2040 and 2050. After 2050, the decadal rates of change from the draft 2026 regional water planning population projections for Beaumont, developed by TWDB, were applied to estimate population through 2070. Based on discussion with the City, the revised projections developed by the Region I RWPG have been 2 Water Supply Planning Study City of Beaumont, TX incorporated into this study as the low projection scenario. The low projection scenario forecasts growth in population up to a peak of 133,916 in 2050, declining to 130,458 by 2070 (Table 1, Figure 1). Table 1. Low Projection Scenario Population and Retail Demand Year 2030 2040 2050 2060 2070 Population 126,810 130,315 133,916 132,179 130,458 Per-Capita 207 29,419 26.3 206 30,134 26.9 206 30,967 27.7 206 30,565 27.3 206 30,167 26.9 Demand (gpcd) Retail Demand (acre-ft/year) Retail Average Demand (MGD) 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2030 2040 2050 2060 2070 Year Figure 1. Low Population Projections FNI developed demand projections for the low projection scenario using the 2026 Region I RWP draft per- capita demand, provided by TWDB in May 2023. The retail demand for the low projection scenario is expected to increase up to a peak of 30,967 ac-ft/year in 2050, decreasing to approximately 30,167 ac- ft/year by the year 2070 (Table 1, Figure 2). 3 Water Supply Planning Study City of Beaumont, TX 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2030 2040 2050 Year 2060 2070 Figure 2. Retail Annual Water Demand Projections for Low Population Scenario FNI developed high population projections for the City utilizing the population projection data from the 2021 Region I RWP and projections from the City of Beaumont Planning Division developed in December 2022. The City’s Planning Division developed a population forecast through year 2050, which was used for the first three decades of the high population scenario. This aligns closely with 2050 projections from the 2021 Region I RWP, so the high population scenario forecast was extended to 2070 using 2021 RWP projections for years 2060 and 2070. By the year 2070, the high planning scenario population is projected to be 181,406 (Table 2, Figure 3). Table 2. High Projection Scenario Population and Retail Demand Year 2030 2040 2050 2060 2070 Population 126,810 139,491 153,440 168,758 181,406 Per-Capita 207 29,419 26.3 206 32,256 28.8 206 35,482 31.7 206 39,024 34.8 206 41,949 37.5 Demand (gpcd) Retail Demand (acre-ft/year) Retail Average Demand (MGD) 4 Water Supply Planning Study City of Beaumont, TX 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 2030 2040 2050 Year 2060 2070 Figure 3. High Population Projections FNI developed water demand projections for the high projection scenario using the 2026 Region I RWP draft per-capita demand. The retail demand for the high population projections is expected to increase to approximately 41,978 ac-ft/year by the year 2070 (Table 2, Figure 4). 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2030 2040 2050 Year 2060 2070 Figure 4. Retail Annual Water Demand Projections for High Population Scenario The population projections in the two planning scenarios are shown in context with recent historical populations in Figure 5. 5 Water Supply Planning Study City of Beaumont, TX 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 Year Historical Low Planning Scenario High Planning Scenario Figure 5. Historical, Low Planning Scenario, and High Planning Scenario Populations 2.2.2 Wholesale Demands The City provided information on current contracts with water customers, including the maximum daily volume and maximum rate allowed in each contract. The City also provided the average and maximum daily demand from each customer between January 2018 and August 2022. For the purposes of this planning study, the sum of customers’ average daily demand was used to estimate the total expected wholesale demand on an annual basis. This amount is approximately 2,200 ac-ft/year (2 MGD). 2.2.3 Total Annual Demands Combined retail and wholesale demand projections for both the low and high planning scenarios are shown below (Table 3, Figure 6). After further discussion with the City, it was agreed that the remainder of this study will primarily consider the projections in the low planning scenario. 6 Water Supply Planning Study City of Beaumont, TX Table 3. Total Annual Demands1 for High and Low Planning Scenarios Year 2030 2040 2050 2060 2070 Low Planning Scenario Retail Demand + Wholesale Demand (acre-feet/year) 31,619 32,334 33,167 30 32,765 32,367 Low Planning Scenario Retail Demand + Wholesale Demand (MGD) 28 31,619 28 29 34,456 31 29 41,224 37 29 44,149 39 High Planning Scenario Retail Demand + Wholesale Demand (acre-feet/year) 37,682 High Planning Scenario Retail Demand + 34 Wholesale Demand (MGD) 1Demands shown in MGD represent average daily demand based on total projected annual demand in acre-feet/year. 50,000 40,000 30,000 20,000 10,000 0 2030 2040 2050 Year 2060 2070 Low Planning Scenario High Planning Scenario Figure 6. Low Planning Scenario and High Planning Scenario Total Demands 2.2.4 Maximum Day Water Production Capacity It is important to note that the volumes of water presented above are annual average day demands for a drought year, and there will be days during the months of heaviest usage that well exceed the annual average conditions. Maximum day demands were analyzed by FNI as part of a recent, separate study for the City and summarized in an August 2023 Technical Memorandum produced as part of the Water System Model Update. FNI determined that the ratio between maximum day and average day water 7 Water Supply Planning Study City of Beaumont, TX production has historically ranged from 1.2 to 1.7. A peaking ratio within this range should be applied when considering necessary water production capacity; namely, treatment, storage, and pumping capacity. Assuming an annual demand of 28 MGD (low and high production scenario, year 2030) results in a maximum day water production of roughly 47.6 MGD if the maximum peaking factor historically seen, 1.7, is applied. It is important to note that in the summer of 2023, during a severe drought, water demand and production exceeded 45 MGD according to City staff; thereby, substantiating this assumption. 8 Appendix D Diversion and Discharge Meter Calibration Records Verifcation report Promag 400 Plant operator: John Diaz Device information Location LOEB Device tag HS4 Module name Nominal diameter Device name Order code K323-00 DN600 / 24" Promag 400 5W4C6H-T5X6/0 W10B8716000 02.01.03 Serial number Firmware version Calibration Calibration factor Zero point 1.2959 0.4 Verifcation information Operating time (counter) Date/time (manually recorded) Verifcation ID 0d00h52m33s 08.05.24 10:33 1 Verifcation mode Standard verifcation Overall verifcation result* Passed Details see next page *Result of the complete device functionality test via Heartbeat Technology Confrmation Heartbeat Verifcation verifes the function of the fowmeter within the specifed measuring tolerance, over the useful lifetime of the device, with a total test coverage > 94 %, and complies with the requirements for traceable verifcation according to DIN EN ISO 9001:2008 – Section 7.6 a. (attested by TÜV-SÜD Industrieservices GmbH) Notes Date Operator's signature Inspector's signature www.endress.com Web server Page 1 Verifcation report Promag 400 Plant operator: John Diaz Device identifcation and verifcation identifcation Serial number Device tag W10B8716000 HS4 Verifcation ID 1 Sensor Passed Passed Passed Passed Passed Passed Passed Passed Passed Shot time symmetry Hold voltage symmetry Coil current loss Coil current stability Coil resistance E1 electrode cable E2 electrode cable EPD electrode cable Sensor electronic module (ISEM) Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Supply voltage Internal voltages Linearity and reference voltage Ofset of electrode measuring circuit Hold voltage feedback Shot voltage feedback Electronic current loss Coil circuit measurement Shot control circuit Electrode signal integrity System status I/O module Passed Passed Input/output 1 Input/output 2 Input/output 3 Passed Not done Not done www.endress.com Web server Page 2 Verifcation report Promag 400 Plant operator: John Diaz Device identifcation and verifcation identifcation Serial number Device tag W10B8716000 HS4 Verifcation ID 1 Test item with value Unit Actual Min. Max. Visualization Sensor Shot time symmetry deviation Hold voltage symmetry deviation Coil current loss deviation Coil current ofset 1.0008 1.0000 0.06850 0.02437 0.9000 0.9000 1.1000 1.1000 % -10.0000 10.0000 % -0.1000 0.1000 0.1000 240.0 Coil current deviation % -0.04874 -0.1000 Coil resistance value Ohm Ohm Ohm Ohm Ohm Ohm 134.9 50.0 E1 electrode impedance E2 electrode impedance EPD electrode impedance E1/E2 electrode impedance on E1 E1/E2 electrode impedance on E2 2605.81 2609.09 3065.55 2533.20 2534.97 Sensor electronic module (ISEM) Supply voltage 30.0V V 31.19 0.9998 0.9997 3.9116 0.99 27.000 0.9900 0.9900 35.000 1.0100 1.0100 Linearity and reference voltage 1 Linearity and reference voltage 2 Measuring point ofset -100.0000 100.0000 Hold voltage feedback value Verifcation report Promag 400 Test item with value Unit Actual Min. Max. Visualization I/O module Output 1 value 1 Output 1 value 2 Output 2 value 1 Output 3 value 1 mA 4.0324 0.0000 0.0000 0.0000 3.8600 0.0000 0.0000 0.0000 4.1400 0.0000 0.0000 0.0000 www.endress.com Web server Page 4 Verifcation report Promag 400 Plant operator: John Diaz Device identifcation and verifcation identifcation Serial number Device tag W10B8716000 HS4 Verifcation ID 1 Test item with value Unit Actual Process conditions Volume fow value verifcation Conductivity value verifcation Electronic temperature gal/h (us) 0.0000 µS/cm -nan °F V V V V 90.0 Current diference potential Current potential electrode 1 Current potential electrode 2 Current potential electrode Pipe GND 0.001715 0.1870 0.1830 0.002505 www.endress.com Web server Page 5 Shot voltage feedback value Electronic current loss deviation Coil circuit value % % % % % % -10.0 -20.0 10.0 -0.84 20.0 -0.25 0.00 -10.0000 10.0000 -1.0 1.0 Shot control circuit value -0.24 0.35 -10.0 -40.0 10.0 Electrode signal integrity deviation 40.0 www.endress.com Web server Page 3 Percent % 33 34 33 30 24 B. Projected Water Demands 1. If applicable, attach or cite projected water supply demands from the applicable Regional Water Planning Group for the next ten years using information such as population trends, historical water use, and economic growth in the service area over the next ten years and any additional water supply requirements from such growth. [See Attached Documents Under Appendix C] III. WHOLESALE SERVICE AREA POPULATION AND CUSTOMER DATA A. Population and Service Area Data: 1. Service area size (in square miles): 20.77 Sq. Miles (Please attach Appendix A) 2. Current population of service area: TCEQ-20162 (Rev. 04/2022) Page 6 of 14 652,710.950 658,671.790 629,538.620 605,345.100 7301802.973 643,554.000 552,777.870 617,994.300 583,567.280 609,629.790 607,596.580 606,628.710 649,358.020 641,636.200 642,585.330 1,173,883.400 622,286.557 7,651,498.037 April May June July August September October November December Totals 2. Describe how the above figures were determined (e.g, from a master meter located at the point of a diversion from the source or located at a point where raw water enters the treatment plant, or from water sales). All data is derived from the master meter located where treated water leaves the surface water treatment plan and the ground water facility. 3. Amount of water (in 1,000 gallons) delivered/sold as recorded by the following account types for the past five years. TCEQ-20162 (Rev. 04/2022) Page 5 of 14 Partnership 48,502.6 Treated GE Betz Suez Water Technology 31,784.1 28,386 Treated Treated Treated Treated Chemtrade Refinery SVC Inc Federal Correctional Complex 227,657 363,851.9 Texas Department of Criminal Justice TCEQ-20162 (Rev. 04/2022) Page 4 of 14 Appendix E Distribution System Meter Product Information SPECIFICATIONS Cold Water Meters/ Displacement Type GENERAL All cold water meters (displacement type - magnetic drive 5⁄8” - 2”) furnished shall be produced from a manufacturing facility whose QMS is ISO 9001 certified, conform to the “Standard Specifications for Cold Water Meters” C700 latest revision issued by AWWA. LEAD FREE LEGISLATION There have been federal changes to the acceptable amount of lead in the drinking water system. Knowing that water meters have a life expectancy of approximately twenty (20) years, the utility wishes to ensure that meters purchased today will meet the Safe Drinking Water Act (SDWA) per NSF 372: The utility wishes to assure the safety of its drinking water. The utility wishes to safeguard its investment in metering infrastructure. • Meter inventory that does not meet the SDWA (NSF/ANSI 372) lead free requirements will have to be returned to the manufacturer or scrapped at a cost that the utility is not willing to incur. Any meters not in compliance with these requirements that are physically removed from service for testing or repair cannot be reinstalled and will have to be scrapped at a cost that the utility is not willing to incur. • As a result, the utility requires that all water meters submitted in this proposal be compliant with NSF/ANSI 61 and NSF/ANSI 372. Specifically: Meters shall be made of “lead free” alloy as defined by NSF/ANSI 61 and NSF/ANSI 372. Manufacturer shall provide a copy of a letter from NSF International on NSF letterhead documenting compliance with NSF/ANSI 61 and NSF/ANSI 372. TYPE Only magnetic-driven, positive displacement meters of the flat nutating disc type will be accepted because of enhanced low flow accuracy performance. SIZE, CAPACITY, LENGTH The size, capacity, and meter lengths shall be as specified in AWWA Standard C700 (latest revision). The maximum number of disc nutations is not to exceed those specified in AWWA C700 latest revision. The meter maincase and cover shall be cast from NSF/ANSI 61 and NSF/ANSI 372 certified lead free alloy containing a minimum of 85% copper. The serial number should be stamped between the inlet or outlet port of the maincase and the register. Maincase markings shall be cast raised and shall indicate size, model, direction of flow, and NSF/ANSI 61 certification. Plastic maincases are not acceptable. SPECIFICATIONS Maincases for 5 ⁄8”, 3 ⁄4”, and 1” meters shall be of the removable bottom cap type with the bottom cap secured by four (4) bolts on 5 ⁄8” and 3 ⁄4” sizes and six (6) bolts on the 1” size. Intermediate meter maincases shall also be made of the same lead free brass material in sizes 11 ⁄2” and 2” with a cover secured to the maincase with eight (8) bolts. Meters with a frost plug, a screw-on design, or no bottom cap shall not be accepted in 5 ⁄8”- 1” sizes. The 5 ⁄8” meters shall have a synthetic polymer or cast iron bottom cap option. All lead free maincases shall be guaranteed free from manufacturing defects in workmanship and material for the life of the meter. All meters must be adaptable to a field programmable absolute encoder register without interruption of the customer’s service. BOLTS All maincase bolts shall be of three hundred (300) series non-magnetic stainless steel to prevent corrosion. DIRECT READ STANDARD REGISTER The register shall be of the straight reading sealed magnetic drive type and shall contain six (6) numeral wheels. Registers must be roll sealed and dry. All direct reading register cups shall be copper to prevent corrosion and be covered with a high-strength, impact-resistant flat glass lens to prevent breakage. The lens shall be positioned above the register box to allow for runoff of debris. The register lid shall overlap the register box to protect the lens. The register retaining ring shall be designed to absorb impact from the register. Register boxes and lids shall be of high-strength synthetic polymer or approved equivalent. All registers shall have the size, model, and date of manufacture stamped on the dial face. The dial shall have a red center sweep hand and shall contain one hundred (100) equally divided graduations at its periphery. The register must contain a low flow indicator with a 1:1 ratio to disc nutations to provide leak detection. Registers shall be secured to the maincase by means of a plastic tamperproof seal to allow for inline service replacement. Register seal screws are only accepted when supplied with attached sealing wire to at least one bottom cap bolt with seal wire holes of not less than 3 ⁄32” in diameter. Registers shall be guaranteed for at least ten (10) years. All meters will be guaranteed for one (1) year on material and workmanship. MEASURING CHAMBER The measuring chamber shall be of a two-piece, snap-joint type with no fasteners allowed. The chamber shall be made of a non-hydrolyzing synthetic polymer. The control block shall be the same material as the measuring chamber and be located on the top of the chamber. The control block shall be located after the strainer. The measuring chamber outlet port shall be sealed to the maincase outlet port by means of an O-ring gasket. The flat nutating disc shall be a single piece made from non-hydrolyzing synthetic polymer and shall contain a type 316 stainless steel spindle. The nutating disc shall be equipped with a synthetic polymer thrust roller located within the disc slot. The thrust roller head shall roll on the buttressed track provided by the diaphragm. The chamber shall be warranted for ten (10) years against freeze damage if the meter has been equipped with a frost-proof cast iron. SPECIFICATIONS STRAINERS All meters shall contain a removable polypropylene plastic strainer screen. The strainer shall be located near the maincase inlet port, before the measuring chamber. The strainer shall also function as the device that holds the measuring chamber in place within the maincase. Straps or other types of fasteners shall not be accepted. PERFORMANCE To ensure accuracy, each meter must be accompanied by a factory test tag certifying the accuracy at the flows required by AWWA C700. All meters shall be warranted as follows: Size Low Flow Low Flow New Meter Accuracy Low Flow Repaired Meter Accuracy 5/8” ¾” 1” 1/8 5 yrs or 500,000 gallons 5 yrs or 750,000 gallons 5 yrs or 1,000,000 gallons 2 yrs or 1,600,000 gallons 2 yrs or 2,700,000 gallons 15 yrs or 1,500,000 gallons 15 yrs or 2,250,000 gallons 15 yrs or 3,000,000 gallons 12 yrs or 5,000,000 gallons 12 yrs or 8,000,000 gallons gpm @ 95% 1/4 3/8 gpm @ 95% gpm @ 95% ½” 3/4 gpm @ 95% 1 gpm @ 95% 1 2” Normal meter operating range shall be as follows: Size Accuracy Range ± 1.5% 5/8” 1/2 3/4 - 20 gpm - 30 gpm 3/4” 1” 1 - 50 gpm 1 ½”” 2 - 100 gpm 2” 2 1/2 – 160 gpm MANUFACTURER Meters and meter parts shall be manufactured, assembled, and tested within the United States. Manufacturers may be required to provide proof of where and what percentage of the meter register, chamber, and maincase is manufactured in the United States. Manufacturers shall have a minimum of fifteen (15) years of field and production experience with all sizes and models quoted. Manufacturers shall provide only one (1) model of meter which complies with these specifications. Suppliers must have been manufacturing meters for at least one hundred (100) years. SYSTEMS GUARANTEE SPECIFICATIONS All meters shall be guaranteed upgradeable to the following Neptune systems without interruption of the customer’s service. ProRead™ (ARB® VI) AutoDetect Absolute Encoder E-CODER® (ARB VII) Solid State Absolute Encoder R900® FLOSEARCH® II TRICON/E®3 TRICON® ProCoder™ REMOTE CAPABILITY OPTIONS All meters shall be equipped with encoder remote registers per AWWA C707 and meet all AWWA C700 performance standards. Acceptable meters shall be Neptune T-10® or approved equal. neptunetg.com Neptune Technology Group © 2024 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. Neptune engages in ongoing research and development to improve and enhance its products. Therefore, Neptune reserves the right to change product or system specifications without notice. SPEC 5/8-2 METER 02.24 1600 Alabama Highway 229 Tallassee, AL 36078 800-633-8754 f 334-283-7293 P R O D U C T S H E E T A PRODUCT SHEET OF NEPTUNE TECHNOLOGY GROUP T-10 Meter SIZES 5⁄8 3 ”, ⁄ ”, AND 1” 4 Every T-10® water meter meets or exceeds the latest AW WA C700 Standard. Its nutating disc, positive displacement principle has been time-proven for accuracy and dependability since 1892, ensuring maximum utility revenue. KEY FEATURES REGISTER The T-10 water meter consists of three major assemblies: a register, a lead free, high-copper alloy maincase, and a nutating disc measuring chamber. Magnetic-driven, low-torque Theaccuracy T-10 meter is available with a variety of register types. For reading registration ensures convenience, the register can be mounted in one of four positions on the meter. Impact-resistant register High-resolution, low-flow leak detection Bayonet-style register mount allows Theserviceability corrosion-resistant maincase will withstand harsh service conditions; in-line internal water pressure, rough handling, and in-line piping stress. Tamperproof seal pin deters theft Date of manufacture, size, and model stamped on dial face The innovative floating chamber design of the nutating disc measuring element is unaffected by meter position of in-line piping stresses while the unique chamber seal extends the low-flow accuracy by sealing the chamber outlet port to the maincase outlet port. The nutating disc measuring element utilizes corrosion-resistant materials throughout and a thrust roller to minimize wear. LEAD FREE MAINCASE NSF/ANSI 372, NSF/ANSI 61 Lifetime guarantee Resists internal pressure stresses and external damage Handles in-line piping variations and stresses Provides residual value vs. plastic or composite Electrical grounding continuity NUTATING DISC MEASURING CHAMBER Positive displacement Widest effective flow range for maximum revenue Proprietary polymer materials maximize long-term accuracy Floating chamber design is unaffected by in-line piping stresses Specifications ⁄ ⁄ 5 ” ACCURACY ” ACCURACY 8 • NSF/ANSI 372, NSF/ANSI 61 • National Ty pe Evaluation Program (NTEP) certification Application • Cold water measurement of flow in one direction in residential service applications 3 4 Maximum Operating Water Pressure • 150 psi (1034 kPa) Maximum Operating Water Temperature • 80°F Measuring Chamber • Nutating disc technology design made from proprietary synthetic polymer Options 1” ACCURACY Sizes ⁄8 8” x 3 ⁄ 4 ” • 5 ”, 5 ⁄ ⁄ 4 ”, 3 ⁄4 4 • 3 ” SL, 3 ⁄ ” x 1” • 1”, 1” x 11 ⁄4” Units of Measure: • U.S. gallons, imperial gallons, cubic feet, cubic metres 5 ⁄8” PRESSURE LOSS Register Types • Direct reading: bronze box and cover (standard) Remote Reading: • ProCoder™, E-CODER®, E-CODER®)R900i™, • ProCoder™)Reclaim R900i ™ 3 ⁄4” PRESSURE LOSS Bottom Caps 8 • Synthetic polymer (5 ⁄ ” only) • Cast iron • Lead free, high-copper alloy Connections • Lead free, high-copper alloy, straight or bent 1” PRESSURE LOSS Environmental Conditions • Operating temperature: +33º F to +149º F (0º C to +65º C) • Storage temperature: +33º F to +158º F (0º C to +70º C) These charts show typical meter performance. Individual results may vary. Dimensions A B C D- E- ProCoder R900i or ™) ) E-CODER R900i or Meter ®) Size Weight lbs/kg ProCoder or ™ in/ mm in/ mm Std. in/mm ARB in/mm ™ ™ NPSM Thread in/ E-CODER® ProCoder™ E-CODER®)mm R450i™ R450i™ 7½ 191 3⅝ 92 43⁄8 5¼ 133 5¼ 133 5¼ 133 5¼ 133 1½ 38 3¼ 1.4 5⁄ 8 ” 111 3⁄4” - 14” 7½ 191 3⅝ 92 43⁄8 5¼ 133 5¼ 133 5¼ 133 5¼ 133 1½ 38 3⅜ Operating Characteristics Warranty Neptune® provides a limited warranty for performance, materials, and workmanship. See warranty statement for details. Meter Normal Operating Size Low Flow @ 95% Range @ 100% Accuracy Accuracy (+/- 1.5%) AWWA Standard 5⁄ 8” 0.1⁄2 11 to to 20 4.US 55 gpm m3 1 to 20 US gpm 1⁄8 US gpm /h 0.23 to 4.5 m3/h 0.03 m3/h 3 ⁄4 to 30 US gpm 2 to 30 US gpm Guaranteed Compatibility 0.45 to 6.8 m /h 3 ⁄ 4” 0.17 to 6.82 m3/h 3 1⁄4 0.06 US m3/gpm h All T-10 water meters are 1 to 50 US gpm guaranteed adaptable to 0.23 to 11.36 m /h 3 to 50 US gpm 0.68 to 11.4 m /h 3 ⁄8 US gpm 1” 3 3 0.09 m 3 /h our ProRead ™ , AutoDetect, ProCoder™, E-CODER®, E-CODER®)R900i™,E-CODER®)R450i™, Registration ProCoder™)R900 i ™ , TRICON ® /S, TRICON/E®3, and Neptune meter reading systems without removing the meter from service. ProRead Registration (per sweep hand revolution) 5⁄ 8 ” 3⁄ 4 ” & 1” 10 US Gallons √ √ √ √ √ √ √ √ 10 Imperial Gallons 1 Cubic Foot 0.1 Cubic Metre Register Capacity ProRead, ProCoder, and E-CODER 5 8 ⁄ ” 3 ⁄4” & 1” 10,000,000 US Gallons √ √ √ √ √ √ √ √ 10,000,000 Imperial Gallons 1,000,000 Cubic Feet 100,000 Cubic Metres ProCoder and E-CODER High Resolution (8-digit reading) P R O D U C T S H E E T A PRODUCT SHEET OF NEPTUNE TECHNOLOGY GROUP T-10 ® METER SIZES: 1 ⁄ ” and 2” 2 1 KEY FEATURES Every Neptune® T-10® water meter meets or exceeds the latest AW WA C700 Standard. Its nutating disc, positive displacement principle has been time-proven for accuracy and dependability since 1892, ensuring maximum utility revenue. Register • Magnetic-driven, low-torque registration ensures accuracy • Impact-resistant register The T-10 water meter consists of three major assemblies: a register, a lead free, high-copper alloy maincase, and a nutating disc measuring chamber. • High-resolution, low-flow leak detection • Bayonet-style register mount allows in-line serviceability The T-10 meter is available with a variety of register types. For reading convenience, the register can be mounted in one of four positions on the meter. • Tamperproof seal pin deters theft • Date of manufacture, size, and model The corrosion-resistant maincase will withstand harsh service conditions: stamped on dial face internal water pressure, rough handling, and in-line piping stress. Lead Free Maincase • Made from lead free, high-copper alloy The innovative floating chamber design of the nutating disc measuring element protects the chamber from frost damage while the unique chamber seal extends the low-flow accuracy by sealing the chamber outlet port to the maincase outlet port. The nutating disc measuring element utilizes corrosion-resistant materials throughout and a thrust roller to minimize wear. • NSF/ANSI 61 Certified • NSF/ANSI 372 Certified • Lifetime guarantee • Resists internal pressure stresses and external damage • Handles in-line piping variations and stresses • Provides residual value vs. plastic • Electrical grounding continuity Nutating Disc Measuring Chamber • Positive displacement • Widest effective flow range for maximum revenue • Proprietary polymer materials maximize long-term accuracy • Floating chamber design is unaffected by in-line piping stresses 1 1⁄ ” Accuracy 2 2” Accuracy 1 1⁄ ” Pressure Loss 2 2” Pressure Loss These charts show typical meter performance. Individual results may vary. Operating Characteristics Meter Size Normal Operating Range @100% Accuracy (±1.5%) AWWA Standard Low Flow @ 95% Accuracy 2 to 100 US gpm 5 to 100 US gpm 3/ US gpm 1 1⁄ ” 4 2 0.46 to 22.73 m3 /h 1.1 to 22.7 m3/h 0.17 m 3 /h 2” 2 1/ 2 to 160 US gpm 8 to 160 US gpm 1 US gpm 0.57 to 36.36 m3/h 1.8 to 36.3 m3/h 0.23 m3/h Dimensions C- E-CODER®) D- Threads per inch D- Thread Type Meter Size A B C-Std. in/mm C-ARB in/mm E Weight R900i lbs/kg ProCoder R900i ™ or in/mm in/mm ™ ) in/mm ™ 1 1⁄ ” 12 5⁄8 8 1⁄ 8 1⁄ 8 13⁄ 8 3/ 11 1/2 1 1/ 2 2 9/ 16 31 14.1 2 16 8 16 8 Screw End 321 205 206 220.3 213 NPT 65 1 1⁄ ” 13 330 8 1⁄ 8 1⁄ 8 13⁄ 8 3/ 2 9/16 35 15.9 Flanged 2 End 205 16 206 8 220.16 3 213 8 __ __ 65 2” 15 1⁄4 9 7⁄ 9 5⁄ 9 15⁄ 9 1/ 2” NPT 3 1/8 40 18.1 Screw End 387 240 16 237 16 248.16 4 241 2 11 1/2 79 2” 17 432 9 7⁄ 9 5⁄ 9 15⁄ 9 1/ 3 1/8 44 20.0 Flanged End 240 16 237 16 248.16 4 241 2 __ __ 79 T-10 With Standard Register Guaranteed Compatibility Specifications Options All T-10 meters are guaranteed adaptable to our ProRead™, ProCoder™, E-CODER®, Certification • NSF/ANSI 61, NSF/ANSI 372 Sizes • 1 ⁄ ” flanged or threaded end 2 1 Application • 2” flanged or threaded end E-CODER®)R900i™, E-CODER®)R450i™, • Cold water measurement of flow in Units of Measure • U.S. gallons, imperial gallons, cubic feet, cubic metres ProCoder™)R900i™, TRICON®/S, TRICON/E®3, and Neptune Utility one direction Maximum Operating Water Pressure Systems™ without removing the meter • 150 psi (1,034 kPa) Register Types • ProCoder, E-CODER, E-CODER)R900i, ProCoder)R900i from service. Maximum Operating Water Temperature • 80°F Measuring Chamber • Nutating disc technology design made from proprietary synthetic polymer • Reclaim Measuring Chamber Registration • Synthetic polymer ProRead Registration Companion Flanges (per sweep hand revolution) 1alloy 1⁄2” 2” • Lead free, high-copper 100 US Gallons 3 3 3 3 3 3 3 Environmental Conditions • Operating temperature: +33ºF to +149ºF (0ºC to +65ºC) 100 Imperial Gallons 10 Cubic Feet 1 Cubic Metre .01 Cubic Metre • Storage temperature: Register Capacity 3 • +33ºF to +158ºF (0ºC to +70ºC) ProRead, ProCoder, and E-CODER 1 1⁄2 ” 2” Test Ports 100,000,000 US Gallons 3 3 3 3 3 3 • 1” (optional) Appendix F Water Rate Structure Select Language ▼ City of Beaumont, TX Wednesday, May 22, 2024 Chapter 22. Utilities ARTICLE 22.02. WATER AND SEWER REGULATIONS Division 1. Generally § 22.02.001. Water service rates. (a) Effective October 1, 2023, the following rates per month shall be the rate charged for water service furnished to customers inside and outside of the corporate limits of the city except as provided in subsection (b) of this section: Meter Size/Inches Inside City Rate $16.14 Outside City Rate 5/8 $24.21 1 $17.89 $26.83 1-1/2 $19.62 $29.44 2 $24.49 $36.74 3 $49.75 $74.64 4 $60.33 $90.48 6 $108.75 $149.55 $205.81 $256.57 Minimum $5.46 $163.12 $224.34 $308.70 $384.85 Minimum $8.18 8 10 12 Usage rate first 1,000 gallons Over 1,000 gallons $ per 1,000 gallons (b) Senior citizens who comply with the subsection (c) of this section, will receive a discount equivalent to one thousand (1,000) gallons of water ($5.46). (c) Eligible senior citizens shall mean customers residing in a single-family residence who are over the age of sixty-five (65) years. To obtain the monthly minimum charge deduction, persons eligible must file a sworn application on a form provided therefor, with water customer services. Upon approval of the application the senior citizen's monthly minimum charge shall be applicable for the life of the applicant. (Ordinance 88-72, sec. 1, adopted 8/9/88; Ordinance 89-79, sec. 1, adopted 10/24/89; Ordinance 90-68, sec. 1, adopted 11/13/90; Ordinance 92-81, sec. 1, adopted 12/8/92; Ordinance 00-45, sec. 1, adopted 5/30/00; Ordinance 00-56, sec. 1, adopted 6/27/00; Ordinance 04-042, sec. 1, adopted 6/22/04; 1978 Code, sec. 28-50; Ordinance 07-093, sec. 1, adopted 9/25/07; Ordinance 08-075, sec. 1, adopted 9/9/08; Ordinance 09-018, sec. 1, adopted 4/7/09; Ordinance 09-053, sec. 1, adopted 9/22/09; Ordinance 10-074, sec. 1, adopted 9/14/10; Ordinance 11-069, sec. 1, adopted 9/6/11; Ordinance 12-070, sec. 1, adopted 9/25/12; Ordinance 13-053, sec. 1, adopted 9/10/13; Ordinance 14-030, sec. 1, adopted 7/15/14; Ordinance 16-049, sec. 1, adopted 9/27/16; Ordinance 17-050, secs. 1–2, adopted 7/25/17; Ordinance 19-058, sec. 1, adopted 9/17/19; Ordinance 20-030, sec. 1, adopted 7/14/20; Ordinance 21-060 adopted 9/22/21; Ordinance 22-051 adopted 9/13/2022; Ordinance 23-025 adopted 3/14/2023; Ordinance 23-068 adopted 9/12/2023) Appendix G Drought Contingency Plan Chapter 22. Utilities ARTICLE 22.06. DROUGHT CONTINGENCY PLAN § 22.06.001. Declaration of Policy, Purpose and Intent. (a) In order to conserve the available water supply and protect the integrity of water supply facilities, with particular regard for domestic water use, sanitation, and fire protection, and to protect and preserve public health, welfare, and safety and minimize the adverse impacts of water supply shortage or other water supply emergency conditions, the City of Beaumont hereby adopts the following regulations and restrictions on the delivery and consumption of water. (b) Water uses regulated or prohibited under this Drought Contingency Plan are considered to be non-essential and continuation of such uses during times of water shortage or other emergency water supply condition is deemed to constitute a waste of water which subjects the offender(s) to penalties as defined in Section 22.06.010 of this plan. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(a)) § 22.06.002. Public Involvement. Opportunity for the public to provide input into the preparation of the Plan was provided by the City of Beaumont by means of providing a public meeting to provide opportunity to allow public input. The meeting was publicly announced through The Examiner. The notice for the meeting was posted at City Hall, 801 Main St., and the meeting was held June 18, 2024. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(b)) § 22.06.003. Public Education. The City of Beaumont will periodically provide the public with information about the Plan, including information about the conditions under which each stage of the Plan is to be initiated or terminated and the drought response measures to be implemented in each stage. This information will be provided by means of social media, press releases, and/or utility bill flyers. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(c)) 1 § 22.06.004. Coordination with Regional Water Planning Groups. The service area of the City is located within the Region I East Texas regional water planning area and the City has provided a copy of this Plan to Region I East Texas. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(d)) § 22.06.005. Authorization. The City Manager, or his/her designee, is hereby authorized and directed to implement the applicable provisions of this Plan upon determination that such implementation is necessary to protect public health, safety, and welfare. The City Manager, or his/her designee, shall have the authority to initiate or terminate drought or other water supply emergency response measures as described in this Plan. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(e)) § 22.06.006. Application. The provisions of this Plan shall apply to all persons, customers, and property utilizing water provided by the City of Beaumont. The terms “person” and “customer” as used in the Plan include individuals, corporations, partnerships, associations, and all other legal entities. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(f)) § 22.06.007. Definitions. For the purposes of this Plan, the following definitions shall apply: Aesthetic water use: water use for ornamental or decorative purposes such as fountains, reflecting pools, and water gardens. Commercial and institutional water use: water use which is integral to the operations of commercial and non-profit establishments and governmental entities such as retail establishments, hotels and motels, restaurants, and office buildings. Conservation: those practices, techniques, and technologies that reduce the consumption of water, reduce the loss or waste of water, improve the efficiency in the use of water or increase the recycling and reuse of water so that a supply is conserved and made available for future or alternative uses. Customer: any person, company, or organization using water supplied by the City (name of your water supplier). Domestic water use: water use for personal needs or for household or sanitary purposes such as 2 drinking, bathing, heating, cooking, sanitation, or for cleaning a residence, business, industry, or institution. Even number address: street addresses, box numbers, or rural postal route numbers ending in 0, 2, 4, 6, or 8 and locations without addresses. Foundation watering: an application of water to the soils directly abutting (within 2 feet) the foundation of a building, structure. Industrial water use: the use of water in processes designed to convert materials of lower value into forms having greater usability and value. Landscape irrigation use: water used for the irrigation and maintenance of landscaped areas, whether publicly or privately owned, including residential and commercial lawns, gardens, golf courses, parks, and rights-of-way and medians. Non-essential water use: water uses that are not essential nor required for the protection of public, health, safety, and welfare, including: (1) Irrigation of landscape areas, including parks, athletic fields, and golf courses, except otherwise provided under this Plan; (2) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle; (3) Use of water to wash down any sidewalks, walkways, driveways, parking lots, tennis courts, or other hard-surfaced areas; (4) Use of water to wash down buildings or structures for purposes other than immediate fire protection; (5) Flushing gutters or permitting water to run or accumulate in any gutter or street; (6) Use of water to fill, refill, or add to any indoor or outdoor swimming pools or Jacuzzi-type pools; (7) Use of water in a fountain or pond for aesthetic or scenic purposes except where necessary to support aquatic life; (8) Failure to repair a controllable leak(s) within a reasonable period after having been given notice directing the repair of such leak(s); and (9) Use of water from hydrants for construction purposes or any other purposes other than firefighting. Odd numbered address: street addresses, box numbers, or rural postal route numbers ending in 1, 3, 5, 7, or 9. Major Water User: Major water users are users who consume over 27,400 gallons/day or 10,000,000 gallons/year of water. Dedicated Zone: A zone in which an irrigation system sections off a part of the yard that is connected to a single control valve. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(g)) 3 § 22.06.008. Criteria for Initiation and Termination of Drought Response Stages. The City Manager, or his/her designee, shall monitor water supply and/or demand conditions on a daily basis and shall determine when conditions warrant initiation or termination of each stage of the Plan, that is, when the specified “triggers” are reached. The triggering criteria described below are based on known system capacity limits. Future improvements to the city’s water system will increase capacity and this plan will be modified to reflect the system’s upgraded capacity. (1) Stage 1 Triggers–MILD Water Shortage Conditions. (A) Requirements for initiation. Customers shall be requested to voluntarily conserve water and adhere to the prescribed restrictions on certain water uses defined in Section 22.06.007 Definitions, when total daily water demand equals or exceeds thirty-five million (35,000,000) gallons for three (3) consecutive days or thirty-six million (36,000,000) gallons on a single day. (B) Requirements for termination. Stage 1 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of three (3) consecutive days. (2) Stage 2 Triggers– MODERATE Water Shortage Conditions. (A) Requirements for initiation. Customers shall be required to comply with the requirements and restrictions on certain non-essential water uses provided in Section 22.06.009 of this Plan when the total daily water demand equals or exceeds thirty-six million (36,000,000) gallons for three (3) consecutive days or thirty-seven million (37,000,000) gallons on a single day. (B) Requirements for termination. Stage 2 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of three (3) consecutive days. Upon termination of Stage 2, Stage 1, or the applicable drought response stage based on the triggering criteria, becomes operative. (3) Stage 3 Triggers– SEVERE Water Shortage Conditions. (A) Requirements for initiation. Customers shall be required to comply with the requirements and restrictions on certain non-essential water uses for Stage 3 of this Plan when the total daily water demand equals or exceeds thirty-seven million (37,000,000) gallons for three (3) consecutive days or thirty-eight million (38,000,000) gallons on a single day. (B) Requirements for termination. Stage 3 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of three (3) consecutive days. Upon termination of Stage 3, Stage 2, or the applicable drought response stage based on the triggering criteria, becomes operative. (4) Stage 4 Triggers– CRITICAL Water Shortage Conditions. 4 (A) Requirements for initiation. Customers shall be required to comply with the requirements and restrictions on certain non-essential water uses for Stage 4 of this Plan when the total daily water demand equals or exceeds thirty-nine million (39,000,000) gallons for three (3) consecutive days or forty million (40,000,000) gallons on a single day. (B) Requirements for termination. Stage 4 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of two (2) consecutive days. Upon termination of Stage 4, Stage 3, or the applicable drought response stage based on the triggering criteria, becomes operative. (5) Stage 5 Triggers– EMERGENCY Water Shortage Conditions. (A) Requirements for initiation. Customers shall be required to comply with the requirements and restrictions for Stage 5 of this Plan when the city manager, or his/her designee, determines that a water supply emergency exists based on: (i) Major water line breaks, or pump or system failures occur, which cause unprecedented loss of capability to provide water service; or (ii) Natural or man-made contamination of the water supply source(s). (B) Requirements for termination. Stage 5 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of three (3) consecutive days. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(h)) § 22.06.009. Drought Response Stages. (a) Generally. The city manager, or his/her designee, shall monitor water supply and/or demand conditions on a daily basis and, in accordance with the triggering criteria set forth in section 22.06.008 of this plan, shall determine that a mild, moderate, severe, critical, emergency or water shortage condition exists and shall implement the following notification procedures: (1) Notification of the public (all trigger stages): The city manager or his/her designee shall notify the public by means of: (A) Publication in a newspaper of general circulation; (B) Public service announcements (social media, local television, and/or radio stations). (2) Additional notification: The city manager or his/her designee shall notify directly, or cause to be notified directly, the following individuals and entities: (A) The mayor and members of the city council and the city fire department (all trigger stages); (B) City and/or county emergency management coordinator (trigger stage 3 or above); (C) TCEQ (required when mandatory restrictions are imposed) (triggers 4 and 5); 5 (D) Major water users (trigger stage 3 and above); (E) Critical water users, i.e., hospitals, prisons, etc. (trigger stage 3 and above); (F) Parks/street superintendents and public facilities managers (any trigger stage). (b) Stage 1 Response– MILD Water Shortage Conditions (1) .Target: Achieve a voluntary eight (8) percent reduction in total water demand. (2) Supply Management Measures. (A) Reduced flushing of water mains; (3) Voluntary Water Use Restrictions for Reducing Demand: Retail: (A) Water customers are requested to voluntarily limit the irrigation of landscaped areas to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8), and Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9), and to irrigate landscapes only between the hours of midnight and 10:00 a.m. and 8:00 p.m. to midnight on designated watering days. (B) All operations of the City shall adhere to water use restrictions prescribed for Stage 1 of the Plan. (C) Water customers are requested to practice water conservation and to minimize or discontinue water use for non-essential purposes. Wholesale: (A) The City Manager, or his/her designee(s), will contact wholesale water customers to discuss water supply and/or demand conditions and will request that wholesale water customers initiate voluntary measures to reduce water use. (B) The City Manager, or his/her designee(s), will provide a weekly report to news media with information regarding current water supply and/or demand conditions, projected water supply and demand conditions if drought conditions persist, and consumer information on water conservation measures and practices. (c) Stage 2 Response– MODERATE Water Shortage Conditions (1) Target: Achieve a ten (10) percent reduction in total water demand. (2) Supply Management Measures. (A) Reduced or discontinued flushing of water mains; (B) Discontinue fire hydrant testing; (C) Reduced or discontinued irrigation of public landscaped areas; (D) Implement measures to return all system components to full production capacity. (3) Water Use Restrictions for Demand Reduction: Under threat of penalty for violation, the following water use restrictions shall apply to all persons: Retail: 6 (A) Irrigation of landscaped areas with hose-end sprinklers or automatic irrigation systems shall be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8), and Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9), and irrigation of landscaped areas is further limited to the hours of 12:00 midnight until 10:00 a.m. and between 8:00 p.m. and 12:00 midnight on designated watering days. However, irrigation of landscaped areas is permitted at any time if it is by means of a hand-held hose, a faucet- filled bucket or watering can of five (5) gallons or less, or a drip irrigation system. (B) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle is prohibited except on designated watering days between the hours of 12:00 midnight and 10:00 a.m. and between 8:00 p.m. and 12:00 midnight. Such washing, when allowed, shall be done with a hand-held bucket or a hand-held hose equipped with a positive shutoff nozzle for quick rinses. Vehicle washing may be done at any time on the immediate premises of a commercial carwash or commercial service station. Further, such washing may be exempted from these regulations if the health, safety, and welfare of the public is contingent upon frequent vehicle cleansing, such as garbage trucks and vehicles used to transport food and perishables. (C) Use of water to fill, refill, or add to any indoor or outdoor swimming pools, wading pools, or jacuzzi-type pools is prohibited except on designated watering days between the hours of 12:00 midnight and 10:00 a.m. and between 8 p.m. and 12:00 midnight. (D) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (E) Use of water from hydrants shall be limited to firefighting, related activities, or other activities necessary to maintain public health, safety, and welfare, except that use of water from designated fire hydrants for construction purposes may be allowed under special permit from the City of Beaumont. (F) Use of water for the irrigation of golf course greens, tees, and fairways is prohibited except on designated watering days between the hours 12:00 midnight and 10:00 a.m. and between 8 p.m. and 12:00 midnight. However, if the golf course utilizes a water source other than that provided by the City of Beaumont, the facility shall not be subject to these regulations. (G) All restaurants are prohibited from serving water to patrons except upon request of the patron. (H) The following uses of water are defined as non-essential and are prohibited: (i) Wash-down of any sidewalks, walkways, driveways, parking lots, tennis courts, or other hard-surfaced areas; (ii) Use of water to wash down buildings or structures for purposes other than immediate fire protection or foundation watering as described in §22.06.007; (iii) Use of water for dust control; 7 (iv) Flushing gutters or permitting water to run or accumulate in any gutter or street; and (v) Failure to repair a controllable leak(s) within a reasonable period after having been given notice directing the repair of such leak(s). Wholesale: (A) The City Manager, or his/her designee(s), will request wholesale water customers to initiate mandatory measures to reduce non-essential water use outlined in Stage 2 Response of the drought contingency plan for retail. (B) The City Manager, or his/her designee(s), will initiate weekly contact with wholesale water customers to discuss water supply and/or demand conditions and the possibility of pro rata curtailment of water diversions and/or deliveries. (C) The City Manager, or his/her designee(s), will further prepare for the implementation of pro rata curtailment of water diversions and/or deliveries by preparing a daily water usage allocation baseline for each wholesale customer. (D) The City Manager, or his/her designee(s), will provide a weekly report to news media with information regarding current water supply and/or demand conditions, projected water supply and demand conditions if drought conditions persist, and consumer information on water conservation measures and practices. (d) Stage 3 Response– SEVERE Water Shortage Conditions (1) Target: Achieve a twelve and one-half (12.5) percent reduction in total water demand. (2) Supply Management Measures. (A) All measures described for Stage 2; (B) Aggressively locate and repair major water main leaks and breaks. (3) Water Use Restrictions for Demand Reduction: All requirements of Stage 2 shall remain in effect during Stage 3 except: Retail: (A) Irrigation of landscaped areas shall be limited to designated watering days between the hours of 12:00 midnight and 10:00 a.m. and between 8:00 p.m. and 12:00 midnight and shall be by means of hand-held hoses, hand-held buckets, drip irrigation, permanently installed automatic sprinkler systems, or hose-end sprinklers with a timing device only. The use of hose-end sprinklers without a timing device is prohibited at all times. (B) The watering of golf course tees is prohibited unless the golf course utilizes a water source other than that provided by the city. (C) The use of water for construction purposes from designated fire hydrants under special permit is to be discontinued. (D) Foundation watering (within 2 feet) and watering of trees may occur for two hours one day per week with a hand-held hose or with a dedicated zone using a drip irrigation system and/or soaker hose, provided no runoff occurs. 8 Wholesale: (A) The City Manager, or his/her designee(s), will contact wholesale water customers to discuss water supply and/or demand conditions and will request that wholesale water customers initiate additional mandatory measures to reduce non-essential water use outlined in Stage 3 Response of the drought contingency plan for retail. (B) The City Manager, or his/her designee(s), will initiate pro rata curtailment of water diversions and/or deliveries for each wholesale customer. (C) The City Manager, or his/her designee(s), will provide a weekly report to news media with information regarding current water supply and/or demand conditions, projected water supply and demand conditions if drought conditions persist, and consumer information on water conservation measures and practices. (e) Stage 4 Response– CRITICAL Water Shortage Conditions (1) Target: Achieve a seventeen and one-half (17.5) percent reduction in total water demand. (2) Supply Management Measures: (A) All measures described in Stages 2 and 3. (3) Water Use Restrictions for Reducing Demand: Retail: (A) Irrigation of landscaped areas shall be limited to designated watering days between the hours of 6:00 a.m. and 10:00 a.m. and between 8:00 p.m. and 12:00 midnight and shall be by means of hand-held hoses, hand-held buckets, or drip irrigation only. The use of hose-end sprinklers or permanently installed automatic sprinkler systems are prohibited at all times. (B) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle not occurring on the premises of a commercial car wash and commercial service stations and not in the immediate interest of public health, safety, and welfare is prohibited. Further, such vehicle washing at commercial car washes and commercial service stations shall occur only between the hours of 6:00 a.m. and 10:00 a.m. and between 6:00 p.m. and 10 p.m. (C) The filling, refilling, or adding of water to swimming pools, wading pools, and Jacuzzi- type pools is prohibited. (D) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (E) No application for new, additional, expanded, or increased-in-size water service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be approved, and time limits for approval of such applications are hereby suspended for such time as this drought response stage or a higher- numbered stage shall be in effect. (F) The use of water for construction purposes from designated fire hydrants under special permit is to be discontinued. 9 Wholesale: (A) The City Manager, or his/her designee(s), will contact wholesale water customers to discuss water supply and/or demand conditions and will request that wholesale water customers initiate additional mandatory measures to reduce non-essential water use outlined in Stage 4 Response of the drought contingency plan for retail. (B) The City Manager, or his/her designee(s), will continue the pro rata curtailment of water diversions and/or deliveries for each wholesale customer. (C) The City Manager, or his/her designee(s), will provide a weekly report to news media with information regarding current water supply and/or demand conditions, projected water supply and demand conditions if drought conditions persist, and consumer information on water conservation measures and practices. (f) Stage 5 Response– EMERGENCY Water Shortage Conditions (1) Target: Achieve a thirty (30) percent reduction in total water demand. (2) Supply Management Measures: (A) All measures described in stages 2, 3, and 4. (3) Water Use Restrictions. All requirements of Stage 2, 3, and 4 shall remain in effect during Stage 5 except: Retail: (A) Irrigation of landscaped areas is absolutely prohibited, except soaker hoses, hand- held hoses or a dedicated zone using a drip irrigation system may be used to water trees up to two hours per week or foundations as necessary, provided no runoff occurs. (B) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle is absolutely prohibited. (C) All water usage except that required to protect the public health, safety, and welfare is prohibited. Or Wholesale: Whenever emergency water shortage conditions exist as defined in Section 22.06.008 of the Plan, the City Manager or his/her designee(s), shall: (A) Assess the severity of the problem and identify the actions needed and time required to solve the problem. (B) Inform the utility director or other responsible official of each wholesale water customer by telephone or in person and suggest actions, as appropriate, to alleviate problems. (C) If appropriate, notify city, county, and/or state emergency response officials for assistance. (D) Undertake necessary actions, including repairs and/or clean-up as needed. (E) Prepare a post-event assessment report on the incident and critique of emergency response procedures and actions. 10 (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(i)–(n); Ordinance 08-040, sec. 30, adopted 5/13/08) § 22.06.010. Enforcement. Retail: (a) No person shall knowingly or intentionally allow the use of water from the City of Beaumont for residential, commercial, industrial, agricultural, governmental, or any other purpose in a manner contrary to any provision of this Plan, or in an amount in excess of that permitted by the drought response stage in effect at the time pursuant to action taken by the City Manager, or his/her designee, in accordance with provisions of this Plan. (b) Any person who violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than two hundred fifty dollars ($250.00) and not more than two thousand dollars ($2000.00). Each day that one or more of the provisions in this Plan is violated shall constitute a separate offense. If a person is convicted of three (3) or more distinct violations of this Plan, the City Manager, or his/her designee, shall, upon due notice to the customer, be authorized to discontinue water service to the premises where such violations occur. Services discontinued under such circumstances shall be restored only upon payment of a reconnection charge, hereby established by the City’s adopted fee schedule , and any other costs incurred by the City of Beaumont in discontinuing service. In addition, suitable assurance must be given to the City Manager that the same action shall not be repeated while the Plan is in effect. Compliance with this plan may also be sought through injunctive relief in the district court. (c) Any person, including a person classified as a water customer of the City of Beaumont, in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person’s property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he/she did not commit the violation. Parents shall be presumed to be responsible for violations of their minor children, and proof that a violation, committed by a child, occurred on property within the parents’ control shall constitute a rebuttable presumption that the parent committed the violation, but any such parent may be excused if he/she proves that he/she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation. (d) A police officer, or other City employee designated by the City Manager may issue a citation or summons to appear to a person he/she reasonably believes to be in violation of this Ordinance. Wholesale: During any period when pro rata allocation of available water supplies is in effect, wholesale customers shall pay the following surcharges on excess water services: (a) One hundred ten (110) percent of the normal water rate for water diversions and/or deliveries in excess of the amount in the pro rata allocation up through five (5) percent above the gallons per day allocation. (b) One hundred twenty (120) percent of the normal water rate for water diversions and/or deliveries in excess of the amount in the pro rata allocation from five (5) percent through ten (10) percent above the gallons per day allocation. 11 (c) One hundred fifty (150) percent of the normal water rate for water diversions and/or deliveries in excess of the amount in the pro rata allocation from ten (10) percent through fifteen (15) percent above the gallons per day allocation. (d) Two (2) times the normal water rate for water diversions and/or more than fifteen (15) percent above the pro rata gallons per day allocation. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(o)) § 22.06.011. Variances. (a) The City Manager, or his/her designee, may, in writing, grant temporary variance for existing water uses otherwise prohibited under this Plan if it is determined that failure to grant such variance would cause an emergency condition adversely affecting the health, sanitation, or fire protection for the public or the person requesting such variance and if one or more of the following conditions are met: (1) Compliance with this Plan cannot be technically accomplished during the duration of the water supply shortage or other condition for which the Plan is in effect. (2) Alternative methods can be implemented which will achieve the same level of reduction in water use. (b) Persons requesting an exemption from the provisions of this Ordinance shall file a petition for variance with the City within five (5) days after the Plan or a particular drought response stage has been invoked. All petitions for variances shall be reviewed by the City Manager, or his/her designee, and shall include the following: (1) Name and address of the petitioner(s). (2) Purpose of water use. (3) Specific provision(s) of the Plan from which the petitioner is requesting relief. (4) Detailed statement as to how the specific provision of the Plan adversely affects the petitioner or what damage or harm will occur to the petitioner or others if the petitioner complies with this Ordinance. (5) Description of the relief requested. (6) Period of time for which the variance is sought. (7) Alternative water use restrictions or other measures the petitioner is taking or proposes to take to meet the intent of this Plan and the compliance date. (8) Other pertinent information. (c) Variances granted by the City Manager shall be subject to the following conditions, unless waived or modified by the City Manager or his/her designee: (1) Variances granted shall include a timetable for compliance. (2) Variances granted shall expire when the Plan is no longer in effect, unless the petitioner 12 has failed to meet specified requirements. (d) No variance shall be retroactive or otherwise justify any violation of this plan occurring prior to the issuance of the variance. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 Code, sec. 28-59(p)) § 22.06.012. Pro Rata Water Allocation In the event that the triggering criteria specified in section 22.06.008(3) of the plan for stage 3 severe water shortage conditions have been met, the City Manager is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with Texas Water Code section §11.039 and according to the following water allocation policies and procedures: (1) The city will include a provision in every wholesale water contract entered into or renewed after adoption of the plan, including contract extensions, that in case of a shortage of water resulting from drought, the water to be distributed shall be divided in accordance with Texas Water Code, §11.039. (2) A wholesale customer’s daily allocation shall be a percentage of the customer’s water usage baseline. The percentage will be set by resolution of the city based on the city manager’s assessment of the severity of the water shortage condition and the need to curtail water diversions and/or deliveries and may be adjusted periodically by resolution of the city as conditions warrant. Once pro rata allocation is in effect, water diversions or by deliveries to each wholesale customer shall be limited to the allocation established. (3) A daily water usage allocation shall be established by the city manager or his/her designee, for each wholesale customer. The wholesale customer’s water usage baseline will be computed on the average water usage by day for the previous five (5) year period. If the wholesale water customer’s billing history is less than five (5) years, the daily average for the period for which there is a record shall be used for any daily period for which no billing history exists. (4) The city manager shall provide notice, by certified mail, to each wholesale customer informing them of their daily water usage allocations and shall notify the news media and the executive director of the TCEQ upon initiation of pro rata water allocation. (5) Upon request of the customer or at the initiative of the city manager the allocation may be reduced or increased if: (A) The designated period does not accurately reflect the wholesale customer’s normal water usage; (B) The customer agrees to transfer part of its allocation to another wholesale customer; or (C) Other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. A customer may appeal an allocation established hereunder to the city council. (Ordinance 01-058, sec. 1, adopted 7/31/01; Ordinance 01-078, sec. 1, adopted 10/9/01; 1978 13 Code, sec. 28-59(q); Ordinance 08-040, sec. 30, adopted 5/13/08; Ordinance 19-074 adopted 11/12/19) §22.06.013 Utilization of Alternative Water Sources and/or Alternative Delivery Mechanisms: An alternative water source for the City of Beaumont is a Water Supply Agreement and Mutual Release with the LNVA for uninterrupted surface water supply. The agreement with the LNVA is for storage of 6,000 acre-feet (1,955 MG) during times of drought. The city has secured an additional water supply up to 6,000 ac-ft per year amounting to 5.4 MGD over the course of a year, or 20 MGD for a span of 98 days. §22.06.014 Severability It is hereby declared to be the intention of the City that the sections, paragraphs, sentences, clauses, and phrases of this Plan are severable and, if any phrase, clause, sentence, paragraph, or section of this Plan shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Plan, since the same would not have been enacted by the City without the incorporation into this Plan of any such unconstitutional phrase, clause, sentence, paragraph, or section. 14 10 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Demi Engman, Director of Planning and Community Development MEETING DATE: June 18, 2024 REQUESTED ACTION: Council consider an ordinance to declare 328-338 Bowie & 486-498 Pearl Street, also known as “The Gilbert Building,” as Imminent Danger and order the owner to raze the said structure within 5 days. If the property owner fails to comply within 5 days, staff is requesting City Council authorization to demolish said structure without further notification to the property owner or City Council action. BACKGROUND The structure at 328-338 Bowie & 486-498 Pearl Street, also known as “The Gilbert Building,” was “tagged” as imminent danger on June 10, 2024. The structure has been damaged by fire. The recommendation issued by Terry Shipman of Fittz & Shipman, Inc., a licensed engineer in the State of Texas, states, “the building should be demolished. If the exterior walls are salvaged, a demolition plan should be prepared by a qualified professional to ensure the safe removal of the debris. The exterior walls will need to be shored with the shoring plan designed by a structural engineer registered in the State of Texas.” Please see attached structural engineer report of the aforementioned. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the Ordinance. ATTACHMENTS Engineer Report ORDINANCE NO. ENTITLED AN ORDINANCE FINDING THE STRUCTURE LOCATED AT 328-338 BOWIE AND 486-498 PEARL STREET, ALSO KNOWN AS “THE GILBERT BUILDING” TO BE A PUBLIC NUISANCE AND ORDERING ITS DEMOLITION AND REMOVAL AS A CLEAR AND PRESENT IMMINENT DANGER TO PUBLIC SAFETY; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the structure at 328-338 Bowie and 486-498 Pearl Street, also known as “The Gilbert Building” in the City of Beaumont has been inspected by the Building Codes Division and found to be an unsafe structure as defined by the City of Beaumont’s Code of Ordinances Chapter 24, Article 24.04 Unsafe Substandard Structures as well as Section 111.1.5(3) of the 2021 International Property Maintenance Code; and, WHEREAS, this structure was damaged by fire constituting a clear and present imminent danger to said property and the public safety; and, WHEREAS, a licensed engineer has determined the building is structurally unsound and should be demolished; and, WHEREAS, the City Council for the City of Beaumont is of the opinion that the demolition of said structure is necessary for the preservation of life and property in the City of Beaumont; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and, Section 1. After a public hearing, the structure located at 328-338 Bowie and 486-498 Pearl Street, also known as “The Gilbert Building” is hereby found to be a public nuisance in that said building violates Chapter 24, Article 24.04 of the Code of Ordinances of the City of Beaumont and is for want of repairs, or by reason of age or dilapidated, decayed, unsafe or unsanitary condition, or otherwise unfit for human habitation, or otherwise likely to endanger the health, safety or general welfare of the citizens of the City. Section 2. In accordance with Chapter 24, Article 24.04 of the Code of Ordinances of Beaumont, Texas, it is hereby ordered that the owner or owners of the above-described building demolish and remove said structure within five (5) days of the effective date of this ordinance. If the property owner(s) fail(s) to comply within five (5) days, Council orders that the property be demolished without further notification to the property owner(s) or City Council action and assess the expenses of such demolition as a lien on the property as allowed by Texas Local Government Code, Section 214.0011(f). Section 3. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 4. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 5. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1.01.009 of the Code of Ordinances of Beaumont, Texas. Section 6. This ordinance shall become effective from and after its passage. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2024. _____________________________ - Mayor Roy West - 100,000,000 Imperial Gallons 10,000,000 Cubic Feet 100,000 Cubic Metres 1,000,000 Cubic Metres E-CODER High Resolution (8-digit reading) 1 US Gallons Warranty 3* 3** Neptune provides a limited warranty for performance, materials, and workmanship. See warranty statement for details. 3 2” 3 3 3 3 1 1⁄2” 3 3 3 1 Imperial Gallons 0.1 Cubic Feet 0.01 Cubic Metres 0.001 Cubic Metres 3 ProCoder High Resolution (8-digit reading) 1 US Gallons 1 1⁄2 ” 2” 3 3 3 3 3 3 3 3 1 Imperial Gallons 0.1 Cubic Feet 0.01 Cubic Metres *ProRead and E-CODER only **ProCoder only neptunetg.com Neptune Technology Group 1600 Alabama Highway 229 Tallassee, AL 36078 © 2023 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. 23-010382 PS T-10 INTERMEDIATE 07.23 800-633-8754 f 334-283-7293 A C D B E T-10 With E-CODER®)R900i™ or ProCoder™)R900i ™ Pit Register 5 8 ⁄ ” 3 ⁄4” & 1” 0.1 US Gallons 0.1 Imperial Gallons 0.01 Cubic Feet √ √ √ √ √ √ √ 0.001 Cubic Metres √ neptunetg.com Neptune Technology Group 1600 Alabama Highway 229 Tallassee, AL 36078 © 2023 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. 23-010383 PS T10 SMALL 07.23 800-633-8754 f 334-283-7293 1.5 5⁄8” x ¾” 1” - 11½” 111 Pre 2011 7½ 191 3⅝ 92 4⅞ 124 5½ 146 5½ 139 5½ 139 5½ 139 1⅝ 41 3¾ 1.7 3⁄4” - 14” ⅝” Pre 2011 7½ 3⅝ 4⅞ 5½ 5½ 5½ 5½ 1” - 11½” 1⅝ 4 1” - 11½” 1” - 11½” ⅝” x ¾” 191 92 124 146 139 139 139 41 1.8 9 229 4⅜ 111 5½ 140 6¼ 159 6¼ 159 6¼ 159 6¼ 159 1⅞ 48 6 3⁄ ” 2.7 4 7½ 191 4⅜ 111 5½ 140 6¼ 159 6¼ 159 6¼ 159 6¼ 159 1⅞ 48 5½ ¾“ SL 2.5 ¾” x 1” 1” 9 229 4⅜ 111 5½ 140 6¼ 159 6¼ 159 6¼ 159 6¼ 159 1⅞ 48 6½ 11⁄ ” - 11½” 2.9 4 10¾ 273 6½ 165 6⅜ 162 7 178 7 178 7 178 7 178 2⅛ 54 9¾ 1 4.4 1 ⁄ 4 ” - 111⁄ 2 ” 10¾ ” 273 6½ 165 6⅜ 162 7 178 7 178 7 WORK SESSION Council to Discuss Current Airport Operations and Proposed Hangar Improvements. 178 7 178 2⅛ 54 10¼ 1” x 1¼” 1 4.6 1 ⁄ 2 ” - 111⁄ 2 B 5,II 7 4 D C C E A A