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HomeMy WebLinkAboutSEPT 16 2025 - PACKET REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, SEPTEMBER 16, 2025 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PROCLAMATIONS PRESENTATIONS Communication Update RECOGNITIONS PUBLIC COMMENT ON AGENDA/CONSENT Citizens may speak on the Consent Agenda/Regular Agenda items 1-3 or any other topic. Citizens wishing to speak on items 4-7 will be given the opportunity to speak during the Public Hearing. 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 September 2, 2025, City Council meeting minutes. B.Council consider a resolution authorizing the City Manager to enter into an agreement with HSA Bank for Flexible Spending Account (FSA) and COBRA administration. C. Council consider a resolution to rescind Resolution 25-167 for Pharmacy Benefit Manager (PBM) services with BCBS. D.Approval of Leary Firefighters Foundation Grant REGULAR AGENDA 1.Council consider a resolution authorizing the City Manager to execute Final Change Order No. 1, accept maintenance, and authorize final payment to Texas Materials Group Inc., a CRH Company, for the Street Pavement Preservation Citywide – Phase II Project. 2.Council consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with SETEX Construction Corp., for the Fannett Road Sidewalk Improvement Project. 3.Council to consider a resolution rescinding Resolution No. 25-156, previously awarding a contract to Volta LLC, for the Wastewater Treatment Plant Power Distribution Switchgear Building Pre-Purchase Project, and to authorize the City Manager to award a contract to Blackstar Diversified Enterprises, LLC, of New Orleans, Louisiana, in the amount of $2,290,596.00. PUBLIC HEARING Council to conduct a Public Hearing to receive comments on the 2024 Consolidated Annual Performance Evaluation Report (CAPER) PUBLIC HEARING Council to conduct a Joint Public Hearing on the Proposed FY 2026 Budget and the Proposed FY 2026 Capital Program REGULAR AGENDA 4. Council to consider an Ordinance adopting a budget for operating the municipal government of the City of Beaumont for the Fiscal Year beginning October 1, 2025 and ending September 30, 2026; adopting a Master Fee Schedule; appropriating money for the various funds and purposes of such budget including appropriations of money to pay interest and principal sinking fund requirement on all indebtedness; repealing all ordinances and appropriations in conflict with the provisions of the ordinance; and establishing an effective date. 5. Council to consider a resolution adopting the FY2026 Capital Program PUBLIC HEARING Council to conduct a Public Hearing on the 2025 (FY 2026) Proposed Tax Rate REGULAR AGENDA 6.Council to consider an ordinance accepting the appraised roll and approving the property tax rate for the tax year 2025 (FY 2026). 7.Council to consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2026 Budget. WORK SESSION Council to Review and Discuss Homelessness COUNCIL COMMENTS EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Cause No. 25DCCV1005; Manley Cordero, Individually, and As Next Friend of J.B., a Minor vs. City of Beaumont ADJOURNMENT Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Jacqueline K. Gunner at (409) 880-3782. A TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Tina Broussard, City Clerk MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider approving the September 2, 2025, City Council meeting minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the minutes ATTACHMENTS Minutes - September 2, 2025 MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Mike Williams, At-Large Cory Crenshaw, Ward I CITY COUNCIL MEETING Joey Hilliard, Ward II LaDonna Sherwood, Ward IIISeptember 2, 2025 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 September 2, 2025, 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 – Request for the Collection and Preservation of Memorial Ribbons Honoring the Local Victims of the Hill Country Flooding Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1-6 or any other topic. Item 7 has already been heard in a Public Hearing; therefore, citizens cannot speak on that item. Citizens wishing to speak on Item 8 will be given the opportunity to speak during the Public Hearing. Mayor West called the council meeting to order at 1:32 p.m. Pastor Rick White with Christian Fellowship Church gave the invocation. Mayor West led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio, Hiliard, Williams, Sherwood and Crenshaw. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation and Recognition “National Sepsis Month” – September 2025 – Accepting; Jamie Wright, Sepsis Coordinator for Christus St. Elizabeth Hospital “National Disability Voting Rights Week” – September 8-12, 2025 – Accepting; Seth Wells, Executive Director for RISE Center for Independent Living “National Sickle Cell Awareness Month” – September 2025 – Accepting; Lettie Buxie, Founder of Janiyah’s Love Sickle Cell Foundation Mayor West read the announcement regarding Executive Session being held after the conclusion of Councilmember Comments. Minutes – September 2, 2025 Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1-6 or any other topic. Item 7 has already been heard in a Public Hearing; therefore, citizens cannot speak on that item. Citizens wishing to speak on Item 8 will be given the opportunity to speak during the Public Hearing. (Public comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) Jesica Lambeth232 W. CaldwoodBeaumont TX Mike Getz7950 PhelanBeaumont TX Addie Allen9695 GrossBeaumont TX CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non- controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A.Council to consider approving August 19, 2025, City Council meeting minutes. B.Council consider a resolution approving the award of contract to Lark Group, Inc. of Warren, Texas for the demolition and debris removal of 2360 Calder Avenue – Resolution 25-206 C.Council to consider a resolution authorizing the City Manager to renew a contract with Motorola Solutions Inc – Resolution 25-207 D.Council consider a resolution authorizing the City Manager to execute all documents necessary to accept the project titled “Step Comprehensive Fiscal Year 2026.” – Resolution 25-208 Councilmember Hilliard moved to approve the Consent Agenda. Councilmember Durio seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED REGULAR AGENDA 1.Council to consider a resolution authorizing the City Manager to award a contract to Tanksco, Inc., of Fort Worth, TX for the South Elevated Storage Tank Rehabilitation Project. The South Elevated Storage Tank Rehabilitation project will coat and rehabilitate one (1) 1,000,000-gallon steel elevated storage tank located at 3228 Kenneth Avenue. On August 7, 2025, nine (9) bids were received for furnishing all labor, materials, and equipment for the project. On August 11, 2025, D&M Tank, LLC, submitted a letter Minutes – September 2, 2025 rescinding their bid. The Engineer’s Estimate for the contract is $1,331,600.00. The bid totals are indicated in the table below: ContractorLocationTotal Bid Amount D&M Tank LLCKennedale, TX$892,645.00 Tanksco, Inc.Fort Worth, TX$914,912.00 M.K. Painting, Inc.Wyandotte, MI$978,750.00 BRZ Coatings, Inc.Watauga, TX$1,197,000.00 AMR Industrial CoatingsEuless, TX$1,329,599.50 O&J Coatings, Inc.Hurst, TX$1,397,250.00 Maguire Iron, Inc.Sioux Falls, SD$1,610,000.00 Viking Painting, LLCLa Vista, NE$1,710,474.00 TMI Coatings, Inc.St. Paul, MN$1,771,340.00 Water Utilities staff concur with the recommendation from Schaumburg & Polk, Inc., to award the contract to the apparent second lowest bidder, Tanksco, Inc., in the amount of $914,912.00. The project is allocated one hundred fifty (150) calendar days for substantial completion. Funds will come from Water Revenue Bonds. Approval of the resolution. Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH TANKSCO, INC., OF FORT WORTH, TEXAS, IN THE AMOUNT OF $914,912.00, FOR THE SOUTH ELEVATED STORAGE TANK REHABILITATION PROJECT; WITH A TOTAL OF ONE HUNDRED AND FIFTY (150) CALENDAR DAYS TO COMPLETE THE PROJECT. Councilmember Durio seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-209 2.Council to consider a resolution authorizing the City Manager to accept maintenance and authorize final payment to ALLCO, LLC, for the Street Rehabilitation Citywide – Phase V (REBID) Project. On November 7, 2023, by Resolution No. 23-338, City Council awarded a contract to ALLCO, LLC, of Beaumont, in the amount of $6,847,514.00, for the Street Rehabilitation Citywide – Phase V (REBID) Project. There were previous Change Orders No. 1-7, in the amount of $1,954,510.26. Proposed Final Change Order No. 8, in the amount of ($369,960.92), is needed to adjust the estimated quantities in the contract to reflect the actual quantities used in the completion Minutes – September 2, 2025 of the project. If approved, the adjustment in quantities would result in a final contract amount of $8,432,063.34. 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. 8, maintenance, and final payment in the amount of $448,390.59 is recommended. Funds will come from Certificates of Obligation. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A CHANGE ORDER NO. 8, ACCEPT MAINTENANCE AND MAKE FINAL PAYMENT TO ALLCO, LLC., OF BEAUMONT, TEXAS, IN THE AMOUNT OF $448,390.59. IF APPROVED, CHANGE ORDER NUMBER 8 WILL RESULT IN A FINAL CONTRACT AMOUNT OF $8,432,063.34. Councilmember Sherwood seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-210 3.Council to consider a resolution authorizing the City Manager to accept maintenance, and authorize final payment to Brystar Contracting Inc., of Beaumont, for the E. Virginia Pump Station Trash Collector Reconstruction Project. On April 1, 2025, by Resolution No. 25-061-A, City Council awarded a contract to Brystar Contracting Inc., of Beaumont, in the amount of $194,800.00, for the E. Virginia Pump Station Trash Collector Reconstruction Project. 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 maintenance, and final payment in the amount of $9,740.00 is recommended. Funds will come from Certificates of Obligation. Approval of the resolution. Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO ACCEPT MAINTENANCE AND MAKE FINAL PAYMENT TO BRYSTAR CONTRACTING INC., OF BEAUMONT, TEXAS, IN THE AMOUNT OF $9,740.00. Councilmember Hilliard seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE Minutes – September 2, 2025 MOTION PASSED RESOLUTION 25-215 4.Council to consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with Pro-Pipe Inc., of Irvine, CA for the Sanitary Sewer Evaluation Work Order Contract – Phase V. There was a previous Change Order No. 1, in the amount of $9,955.00. Proposed Change Order No. 2, in the amount of $150,065.00 is needed to incorporate the scope of Work Order No. 3 into the existing contract. This modification includes adjustments to the quantities of seven (7) bid items to align with quantities used in the field and projected quantities associated with Work Order No. 3. To accommodate the necessary design development, City review, approvals, and implementation, an extension of ninety (90) calendar days is requested. If approved, the new contract amount would be $815,309.11. Funds will come from American Rescue Fund and Water Revenue Bonds. Approval of the resolution. Councilmember Williams moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 2, IN THE AMOUNT OF $150,065.00, FOR ADDITIONAL WORK, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT TO $815,309.11, FOR THE SANITARY SEWER EVALUATION WORK ORDER CONTRACT – PHASE V, AND THAT AN ADDITIONAL NINETY (90) CALENDAR DAYS ARE ADDED TO COMPLETE THE WORK. Councilmember Sherwood seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-211 5.Council to consider authorizing the City Manager to enter into an agreement with Gilbert Building Partnership, LTD., for economic development incentives under the Neighborhood Empowerment Zone Program for the development of a commercial and retail space at 330 Bowie Street. The City established the Empowerment Zone in order to encourage further development and revitalization within this particular area of Beaumont. The purpose of the zone is to offer economic incentives in this area to attract new businesses and residences as well as encourage the redevelopment or growth of existing businesses and residences. Gilbert Building Partnership, LTD. has requested to receive the following incentives: 1) A possible seven (7) year, 100% municipal tax abatement for all added value for investments greater than $50,000 for residential uses and $75,000 for all other uses. 2) Minutes – September 2, 2025 Building fee waivers (not including tap and meter fees). 3) Expedited permit review. Gilbert Building Partnership, LTD. is seeking the benefit from Empowerment Zone incentives to aid the development of a commercial and retail space and includes an approximate $4,500,000 to $6,000,000 investment for the renovation of the Gilbert Building. Attached is the application outlining the requests for all eligible benefits. The Administration believes that this project would meet the goals of the Empowerment Zone Program, and the revitalized commercial and retail space would aid growth in this area. Approve the resolution. Councilmember Crenshaw moved to APPROVE A RESOLUTION THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO ENTER INTO AN AGREEMENT WITH GILBERT BUILDING PARTNERSHIP, LTD, FOR ECONOMIC DEVELOPMENT INCENTIVES UNDER THE NEIGHBORHOOD EMPOWERMENT ZONE PROGRAM FOR THE DEVELOPMENT OF A COMMERCIAL AND RETAIL SPACE AT 330 BOWIE STREET. Councilmember Sherwood seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-212 6.Council to consider a resolution allowing the City Manager to enter into an agreement with Gap Strategies for Bond Election Services. Gap Strategies previously provided bond facilitation services to the City of Beaumont for the upcoming November 4th bond election. Their services primarily included providing certain professional consulting services related to facilitation of the City's Bond Advisory Committee and crafting a potential package for a general obligation bond proposition. These services led to a recommendation by the Beaumont Bond Advisory Committee of potential project for a potential November bond election. The City Council, at its August 12th special meeting, voted to call a general obligation bond election for November 4th and identified five propositions to be placed on the ballot for that election. To continue building on their work for the city related to facilitating a package for a bond election, the city seeks services related to leading, coordinating, and assisting the City's efforts to provide a public information campaign that includes providing accurate, informational, and non-persuasive educational information to citizens and voters about the upcoming bond election. This will include, but not be limited to, a bond messaging and branding campaign, direct mail to registered voters’ households, open house events and promotion, and rapid response and media relations. These are some of the same services that Gap Strategies has done before in other cities and counties. They will also work with our City Communications Department in these efforts and will meet weekly with City staff. In addition to these services related to the bond election, they will also provide public information and engagement services for the venue tax initiative. Minutes – September 2, 2025 Staff recommends entering into an agreement with Gap Strategies in the amount of $98,372. The costs for these professional services are eligible to be reimbursed to the City from the bond proceeds, once the bonds are issued. Funds will come from the General Fund. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER OR HIS DESIGNEE BE AND ARE HEREBY AUTHORIZED TO ENTER INTO AN AGREEMENT WITH GAP STRATEGIES, IN THE AMOUNT OF $98,372.00, FOR THE BOND ELECTION SERVICES. Mayor Pro Tem Turner seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, AND SHERWOOD NAYS:COUNCILMEMBERS HILLIARD, WILLIAMS, CRENSHAW MOTION PASSED RESOLUTION 25-213 7.Council to consider a request for a Specific Use Permit to allow a retail liquor store within a GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for property located at 4515 N. Major Drive, Suite A. Nadia Figueroa Morfin requests a Specific Use Permit to open a retail Liquor store to be located at 4515 N Major Drive, Suite A. The GC-MD-2 (General Commercial- Multiple Family Dwelling-2) zoning district requires a Specific Use Permit for all new proposed land uses. The store will sell a variety of ales and spirits, mixers and other retail products. This request received protest from the property owners comprising 70% of the surrounding land area. Section 28.02.008(d) of the City's Code of Ordinances states, "The city council shall not amend, supplement, change, modify or repeal any regulation, restriction or boundary or approve a specific use permit where a protest against such change (has been filed), signed by the owners of twenty (20) percent or more either of the area of the lots included in such proposed change or of the lots or land immediately adjoining the same and extending two hundred (200) feet therefrom, except by favorable vote of three-fourths (3/4) of all the members of the city council." At a Joint Public Hearing held on August 18, 2025, the Planning Commission reached a 4:4 tie vote on the request for a Specific Use Permit to allow a retail liquor store within a GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for property located at 4515 N. Major Drive, Suite A, with the following condition: 1. Shall comply with all applicable Building Codes and Fire Codes. Minutes – September 2, 2025 Approval of the ordinance, with the following condition: 1.Shall comply with all applicable Building Codes and Fire Codes. Councilmember Sherwood moved to approve the item. Due to a lack of a second the motion failed. MOTION FAILED PUBLIC HEARING Council to conduct a Public Hearing to receive comments regarding a grant application to the Federal Transit Administration (FTA) and Texas Department of Transportation (TxDOT) to receive Operating Assistance funds for the BMT Zip Public Hearing Open - 3:09 p.m. None Public Hearing Close - 3:09 p.m. 8.Council to consider a Resolution authorizing the City Manager to submit a grant application and execute a contract with the Federal Transit Administration (FTA) and the Texas Department of Transportation (TXDOT) to receive Operating Assistance funds for the BMT Zip. The City of Beaumont, through its transit operator, BMT Zip, has prepared a grant application for FY 2025 5307 and 5339 grant funds from the FTA and the FY 2026 State Urban Grant from TXDOT. These grants will help fund labor, fringe benefits, a paratransit vehicle, parts as well as cleaning and shop supplies, purchased services, utilities, insurance, licenses, and all other miscellaneous expenses needed for the operation and maintenance of the BMT Zip incurred in FY2025. In addition, funds will be budgeted for operations and maintenance, facility improvements, shop equipment, as well as other bus facility improvements including bus stop improvements such as shelters, signage, lighting, benches and other amenities. The grant period begins October 1, 2025, and ends September 30, 2026. Federal Transit Administration, Texas Department of Transportation, and the General Fund. SourceAmount FTA 5307 Grant (FTA)$2,941,900 State Urban Grant (TXDOT)$486,138 Required City Share$2,455,762 FTA 5339 Grant (FTA)$316,399 Required City Share$47,459.85 Total:$6,247,658.85 Minutes – September 2, 2025 Councilmember Hilliard 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 FEDERAL TRANSIT ADMINISTRATION (FTA) AND THE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT) TO RECEIVE OPERATING ASSISTANCE FUNDS FOR THE BEAUMONT ZIP IN THE AMOUNT OF $3,744,437.00. Councilmember Durio seconded the motion. AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW NAYS:NONE MOTION PASSED RESOLUTION 25-214 COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen on the City of Beaumont’s website at beaumonttexas.gov) EXECUTIVE SESSION To discuss and or deliberate Economic Development negotiations in accordance with Section 551.087 of the Government Code to wit; specifically: Project Riverfront and the Downtown Hotel Project Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Cause No. 25DCCV1445; Robert Clayton Bennett vs. City of Beaumont Open Session of the meeting adjourned at 3:19 p.m. Roy West, Mayor Tina Broussard, City Clerk Minutes – September 2, 2025 B TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Carmen Williams, Director of Human Resources MEETING DATE:September 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to enter into an agreement with HSA Bank for Flexible Spending Account (FSA) and COBRA administration. BACKGROUND The city currently has 230 employees who take advantage of Flexible Spending Accounts (FSA). FSAs allow the city to offer a low-cost benefit that meets employee needs in critical benefit areas. Using these accounts, an employee can set aside a portion of wages before Social Security and Medicare taxes to be used for qualifying medical and dependent care expenses. Since 2010, the City has outsourced the administration of the FSAs and COBRA due to the complex IRS regulations and legislative changes as well as privacy issues that are associated with them. A Request for Proposal (RFP) TF0425-02 was solicited and publicly opened on June 12, 2025. Holmes Murphy is the city's benefits consultant who has assisted the city in the evaluation of the responses. Four proposals were received and city staff along with Holmes Murphy reviewed the responses from HSA Bank, Discovery Benefits-WEX (current incumbent carrier), Aetna and TASC. After analyzing and negotiating with the finalists, the city staff and Holmes Murphy concluded that HSA Bank offered the most cost-effective plan. HSA Bank pricing for services is a total annual premium for FSAs of $12,000. COBRA pricing is a total annual premium of $12,000. FUNDING SOURCE Employee Benefits Fund RECOMMENDATION Approval of the resolution ATTACHMENTS C TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Carmen Williams, Director of Human Resources MEETING DATE:September 16, 2025 REQUESTED ACTION:Council consider a resolution to rescind Resolution 25-167 for Pharmacy Benefit Manager (PBM) services with BCBS. BACKGROUND Move to rescind the resolution authorizing the City Manager to enter into an agreement with BCBS Prime for pharmacy benefit services for city employees and retirees, which was adopted at the meeting on July 29, 2025. Our current agreement with Liviniti is a 3-year contract effective January 1, 2025. Early termination penalties are more than $500,000. FUNDING SOURCE Employee Benefits Fund RECOMMENDATION Approval of the resolution ATTACHMENTS D TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Earl White, Fire Chief MEETING DATE:September 16, 2025 REQUESTED ACTION:Approval of Leary Firefighters Foundation Grant BACKGROUND The Leary Firefighters Foundation Grant awards Fire Departments grants between $5,000 and $25,000 for training, equipment and technology. FUNDING SOURCE No Funding Source Needed. RECOMMENDATION Approval ATTACHMENTS https://learyfirefighters.org/grant 1 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:September 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Final Change Order No. 1, accept maintenance, and authorize final payment to Texas Materials Group Inc., a CRH Company, for the Street Pavement Preservation Citywide – Phase II Project. BACKGROUND On November 19, 2024, by Resolution No. 24-303, City Council awarded a contract to Texas Materials Group Inc., a CRH Company, of Beaumont, in the amount of $2,835,747.85, for the Street Pavement Preservation Citywide – Phase II Project. Proposed Final Change Order No. 1, in the amount of ($479,417.50), 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 $2,356,330.35. 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. 1, maintenance, and final payment in the amount of $148,124.84 is recommended. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS CO1 Final & Final Invoice 2 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:September 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with SETEX Construction Corp., for the Fannett Road Sidewalk Improvement Project. BACKGROUND On January 2, 2025, by Resolution No. 25-025, City Council awarded a contract to SETEX Construction Corp., of Beaumont, in the amount of $783,958.00, for the Fannett Road Sidewalk Improvements Project. Previous Change Order No. 1, in the amount of $9,382.30, is attached for your review. Proposed Change Order No. 2 is requested in the amount of $51,103.05. This change is necessary to replace a sanitary sewer manhole that created a cavity in the area of the proposed sidewalk. If approved, Change Order No. 2 will result in a new contract amount of $844,443.35 with an additional forty-five (45) calendar days to be added to the contract time. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS Fannett Rd CO2 3 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider a resolution rescinding Resolution No. 25-156, previously awarding a contract to Volta LLC, for the Wastewater Treatment Plant Power Distribution Switchgear Building Pre- Purchase Project, and to authorize the City Manager to award a contract to Blackstar Diversified Enterprises, LLC, of New Orleans, Louisiana, in the amount of $2,290,596.00. BACKGROUND The Wastewater Treatment Plant Power Distribution Switchgear Building Pre-Purchase Project is the pre-purchase, pre-fabrication, and placement of the new switchgear building at the Wastewater Treatment Plant to replace the damaged switchgear and move the remaining electrical components in the electrical room to a freestanding building. On May 1, 2025, two (2) bids were received for furnishing all labor, materials, and equipment for the project. The Engineer’s Estimate for the contract is $1,472,575.00. The bid totals are indicated in the table below: ContractorLocationOption 1Option 2Days Volta, LLCHouston, TX$1,988,259.00$1,859,433.00378 Blackstar Diversified Enterprises, LLCNew Orleans, LA$2,322,605.00$2,290,596.00 252 On July 15, 2025, City Council adopted Resolution No. 25-156, awarding a contract to Volta, LLC, of Houston, Texas, the lowest bidder, for the Wastewater Treatment Plant Power Distribution Switchgear Building Pre-Purchase Project in the amount of $1,859,433.00. Following the award, Volta LLC, notified the City of their inability to fulfill the terms of the agreement and formally withdrew their bid. Page 2 September 16, 2025 Wastewater Treatment Plant Power Distribution Switchgear Building Pre-Purchase Project In response, Water Utilities staff reviewed the bid results and confirmed that the second lowest bidder, Blackstar Diversified Enterprises, LLC, meets all required qualifications and is capable of completing the project in accordance with the contract specifications. Staff recommend awarding the contract to Blackstar Diversified Enterprises, LLC, in the amount of $2,290,596.00. A total of 252 calendar days is allocated for substantial completion of the project. FUNDING SOURCE Water Revenue Bonds. RECOMMENDATION Approval of the resolution. ATTACHMENTS PUBLIC HEARING Council to conduct a Public Hearing to receive comments on the 2024 Consolidated Annual Performance Evaluation Report (CAPER) PUBLIC HEARING Council to conduct a Joint Public Hearing on the Proposed FY 2026 Budget and the Proposed FY 2026 Capital Program 4 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Duncan Brown, Assistant Chief Financial Officer MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider an Ordinance adopting a budget for operating the municipal government of the City of Beaumont for the Fiscal Year beginning October 1, 2025 and ending September 30, 2026; adopting a Master Fee Schedule; appropriating money for the various funds and purposes of such budget including appropriations of money to pay interest and principal sinking fund requirement on all indebtedness; repealing all ordinances and appropriations in conflict with the provisions of the ordinance; and establishing an effective date. BACKGROUND In accordance with the Texas Local Government Code and the City Charter, the City Council shall adopt an annual budget. At the conclusion of the public hearing on the budget, the governing body of the municipality shall take action on the proposed budget. A vote to adopt the budget must be a record vote. Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. The City of Beaumont‘s proposed budget for Fiscal Year 2026 was filed with the City Clerk and submitted to Council on August 18th. The City Manager presented the proposed budget to City Council on August 19th. The City Council is required to hold a public hearing on the budget, and it will be held today, September 16, 2025. In accordance with the City's Fiscal Year 2026 budget calendar for the adoption of the City's budget, and to comply with the Texas Local Government Code requirements, the adoption of the budget is scheduled for September 16, 2025. Staff has prepared the proposed budget that has been submitted to City Council. This proposed budget will fund the municipal operations of the City for the 2026 fiscal year. The proposed budget includes the Master Fee Schedule for the 2026 Fiscal Year, and the City's total Personnel count. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS FY 2026 Master Fee Schedule 6 0 S 0.08 C 5 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Duncan Brown, Assistant Chief Financial Officer MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider a resolution adopting the FY2026 Capital Program BACKGROUND Article VI, Section 20 of the City Charter states that "the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing in accordance with the Texas Local Government Code." The capital program was originally submitted to the Council on May 22, 2025. A revised copy of the capital program was submitted to Council on August 18th, 2025. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS PUBLIC HEARING Council to conduct a Public Hearing on the 2025 (FY 2026) Proposed Tax Rate 6 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Duncan Brown, Assistant Chief Financial Officer MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider an ordinance accepting the appraised roll and approving the property tax rate for the tax year 2025 (FY 2026). BACKGROUND The Jefferson County Appraisal District submitted the Certified Appraisal Roll on July 21, 2025, in the amount of $11,214,668,919. Based on this taxable value, a property tax rate of $0.659663/$100 valuation for the tax year 2025 (FY2026) is proposed, which is equal to the current tax rate. The tax rate would be apportioned $0.478628/$100 valuation to the General Fund and $0.181035/$100 valuation to the Debt Service Fund. As required by Section 26.05 of the Tax Code: The tax rate consists of two components, each of which must be approved separately by a record vote and at least 60 percent of the governing body must vote in favor of the ordinance. That ordinance must include the following statement: "THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY4.84% AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $30." FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS 7 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Duncan Brown, Assistant Chief Financial Officer MEETING DATE:September 16, 2025 REQUESTED ACTION:Council to consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2026 Budget. BACKGROUND Section 102.007 of the Local Government Code includes the following: "Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law." The current tax rate of $.659663 per $100 assessed valuation will remain the same for a new tax rate of $.659663 per $100 of assessed valuation. The budgeted revenue from property taxes is expected to be $2,268,879 more than in FY2025. Of this amount, $631,249 is attributable to new property added to the tax roll this year. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ATTACHMENTS WORK SESSION Council to Review and Discuss Homelessness