The URL can be used to link to this page

Home My WebLink AboutDEC 16 2025 PACKET REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, DECEMBER 16, 2025 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PRESENTATIONS Communication Update Mural Fest 2026 PUBLIC COMMENT ON AGENDA/CONSENT Citizens may speak on the Consent Agenda and Regular Agenda Items 1-9 or any other topic. Citizens wishing to speak on Items 10 & 11 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 December 2, 2025, City Council meeting minutes. B.Council to consider approving a calendar for FY 2026 City Council meetings. C.Council to consider an appointment to the Parks and Recreation Advisory Committee. D.Council to consider a resolution authorizing the City of Beaumont to apply to the Texas Parks and Wildlife Department (TPWD) for a $500,000 Recreational Trails Grant for a motorized trail development. E.Council to consider a resolution authorizing the City of Beaumont to apply to the Texas Parks and Wildlife Department (TPWD) for a $300,000 Recreational Trails Grant for non-motorized trail rehabilitation. F.Council consider a resolution authorizing the acceptance of a Utility Easement and Access Road Easement with Entergy Texas, Inc. G.Council to consider authorizing the City of Beaumont to apply to the Association for Library Service to Children, a division of the American Library Association, Candlewick Press "Light the Way" for a $3,000 Grant for a program aimed at special needs education. H.Consider approving a one-year agreement with Voya for Stop Loss Insurance for medical and pharmacy benefits. I.Cancellation of award to Unipak Corp. to provide Janitorial Supplies. J.Council consider a resolution approving multiple contracts for the purchase of traffic marking materials. REGULAR AGENDA 1.Council consider an ordinance amending the FY 2026 Budget. 2.Council consider a resolution approving a permit payment to the Texas Commission on Environmental Quality (TCEQ). 3. Council consider a resolution authorizing the City Manager to execute an Advance Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) for the 2025 HSIP (Eleventh Street) Interconnect Signals Project. 4. Council consider a resolution authorizing the City Manager to execute an Advance Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) for the 2025 HSIP (FM 364) Interconnect Signals Project. 5. Council to consider a Resolution authorizing the City Manager to enter into an Industrial District Agreement with Natgasoline LLC. 6.Council consider a Resolution authorizing the City Manager to enter into an Industrial District Agreement with Air Liquide Large Industries US L.P. 7. Council consider a resolution authorizing the City Manager to execute Change Order No. 1 to the contract with StructureGuard, LLC, for the Cattail Marsh Wetlands Outfall Piling Rehabilitation Project. 8. Council to consider amending an ordinance providing for the reimbursement of capital expenditures incurred prior to the closing of financing. 9.Consider approval of an amendment to ordinance 08-015 to modify the boundaries of the Neighborhood Empowerment Zone Number Two. PUBLIC HEARING Council to discuss the conduct of Councilmember Williams and Councilmember Hilliard for alleged violations of the City Charter. REGULAR AGENDA 10.Council to consider the censure of Councilmember Michael Williams. 11.Council to consider the censure of Councilmember Joseph Hilliard. WORK SESSION 311 Overview COUNCIL COMMENTS EXECUTIVE SESSION Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Code, to wit: nd 640 2 Street 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:December 16, 2025 REQUESTED ACTION:Council to consider approving December 2, 2025, City Council meeting minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the minutes. ATTACHMENTS Minutes - December 2, 2025 B TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Tina Broussard, City Clerk MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider approving a calendar for FY 2026 City Council meetings. BACKGROUND Council currently meets every first, third, and fifth Tuesday of each month. The fifth Tuesday is reserved for evening meetings. The proposed meeting calendar eliminates the fifth Tuesday meeting with a quarterly evening meeting on the third Tuesday. The calendar also proposes that Council hold meetings on the second and fourth Tuesdays during September to account for the Labor Day holiday. FUNDING SOURCE None RECOMMENDATION Approval of the resolution ATTACHMENTS FY 2026 Calendar 2 0 2 6CITY COUNCIL C A L E N D A R J A N U A R Y 2026A P R I L 2026 SunMonTuesWedThursFriSatSunMonTuesWedThursFriSat 1231234 HolidayHoliday 45678910567891011 1:30 pm 1:30 pmCity City CouncilCouncil 17 11121314151617121314151618 1819202122232419202122232425 1:30 pm 1:30 pm City Council HolidayCity Council 3130 25262728293026272829 M A Y 2026 F E B R U A R Y 2026 SunMonTuesWedThursFriSat SunMonTuesWedThursFriSat 12 1234567 3456789 1:30 pm 1:30 pm City Council City Council 891011121314 10111213141516 15161718192021 17181920212223 1:30 pm 1:30 pm HolidayCity Council City Council 28 222324252627 24252627282930 Holiday 31 M A R C H 2026J U N E 2026 SunMonTuesWedThursFriSatSunMonTuesWedThursFriSat 6123456 12345 7 89101112131478910111213 1:30 pm 1:30 pm City Council City Council 1516171819202114151617181920 Holiday 2223242526272825 212223242627 5:30: PM 5:30 pm City Council City Council 293031 282930 2 0 2 6CITY COUNCIL C A L E N D A R J U L Y 2026O C T O B E R2026 SunMonTuesWedThursFriSatSunMonTuesWedThursFriSat 3 124123 Holiday 56789101145678910 1:30 pm 1:30 pm City Council City Council 1213141516171811121314151617 1920212223242518192021222324 1:30 pm 1:30 pm City Council City Council 3131 2627282930252627282930 A U G U S T 2026N O V E M B E R2026 SunMonTuesWedThursFriSatSunMonTuesWedThursFriSat 1 23456781234567 1:30 pm 1:30 pm City Council City Council 10 91011121314158911121314 Veterans’ 16171819202122 Day 15161718192021 1:30 pm City Council 1:30 pm 23242526272829 City Council 27 222324252628 3031 Holiday Holiday 30 29 S E P T E M B E R2026D E C E M B E R2026 SunMonTuesWedThursFriSat SunMonTuesWedThursFriSat 12345 12345 1:30 pm City Council Holiday 6789101112 6789101112 1:30 pm City Council 13141516171819 13141516171819 1:30 pm City Council 20212223242526 20212223242526 5:30 pm City Council Holiday 31 29 27282930 2728301/1/20271/2/2027 C TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider an appointment to the Parks and Recreation Advisory Committee. BACKGROUND Councilmember Crenshaw appoints Kristi Giblin to fill the unexpired term of Issacc Mouton. The term shall begin on December 16, 2025, and expire on September 30, 2027. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS D TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider a resolution authorizing the City of Beaumont to apply to the Texas Parks and Wildlife Department (TPWD) for a $500,000 Recreational Trails Grant for a motorized trail development. BACKGROUND TPWD administers the National Recreational Trails Fund in Texas under the approval of the Federal Highway Administration (FHWA). This federally funded program receives its funding from a portion of federal gas taxes paid on fuel used in non-highway recreational vehicles. The reimbursable grants can be up to 80% of project cost with a maximum award of $500,000 for motorized (off-highway vehicle) trail grants. The grant award notification is expected in June of 2026, with the first quarterly report due in January of 2027. The match would be a FY 2027 supplemental request. The City should know if the grant is awarded before the FY 2027 budget is completed. Lefler Park area is the prospective site of the motorized off-highway vehicle trail. FUNDING SOURCE Texas Parks and Wildlife and Capital Reserve Fund RECOMMENDATION Approval of the resolution. ATTACHMENTS Information page: 2026 Recreational Trails Grant E TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider a resolution authorizing the City of Beaumont to apply to the Texas Parks and Wildlife Department (TPWD) for a $300,000 Recreational Trails Grant for non-motorized trail rehabilitation. BACKGROUND TPWD administers the National Recreational Trails Fund in Texas under the approval of the Federal Highway Administration (FHWA). This federally funded program receives its funding from a portion of federal gas taxes paid on fuel used in non-highway recreational vehicles. The reimbursable grants can be up to 80% of project cost with a maximum of $300,000 for non- motorized trail grants. The grant award notification is expected in June of 2026, with the first quarterly report due in January of 2027. The match would be a FY 2027 supplemental request. The City should know if the grant is awarded before the FY 2027 budget is completed. The non-motorized trail funds will rehabilitate various trails throughout the City of Beaumont, in accordance with the Parks for All: Beaumont’s Playbook for Parks, Recreation, and Greenspace, which is Beaumont’s Parks Master Plan that was adopted by City Council in May 2025. FUNDING SOURCE Texas Parks and Wildlife Department and Capital Reserve Fund RECOMMENDATION Approval of the resolution. ATTACHMENTS Information page: 2026 Recreational Trails Grant F TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the acceptance of a Utility Easement and Access Road Easement with Entergy Texas, Inc. BACKGROUND On October 7, 2025, the City Council approved Resolution No. 25-235 authorizing a lease agreement with OCI Fuels USA, Inc. for the use of City landfill property to extract and capture gas for conversion into Renewable Natural Gas (RNG). As part of the Gas and Purchase Agreement approved by City Council on January 24, 2023, via Resolution No. 23-037, OCI Fuels USA, Inc. will construct and operate the RNG facility. To provide the electrical power for facility operations, the City must grant a Utility Easement and a Road Access Easement to Entergy Texas, Inc. The Utility Easement consists of a 7.574-acre tract, being part of Tract One, Tract Three, and Tract Nine, situated in the J. Rowe Survey, Abstract No. 45, City of Beaumont, Jefferson County, Texas as recorded in County Clerk’s File No. 8329704; and a 1.051-acre tract, being part of unimproved Warren Street, as shown in M. C. Cartwright Subdivision, City of Beaumont, situated in the J. W. Bullock Survey, Abstract No. 7. The Access Road Easement consists of the same 7.574-acre tract described as being a 7.574-acre tract, being part of Tract One, Tract Three, and Tract Nine, situated in the J. Rowe Survey, Abstract No. 45, City of Beaumont, Jefferson County, Texas as recorded in County Clerk’s File No. 8329704; and the same 1.051-acre tract being part of unimproved Warren Street, as shown in M. C. Cartwright Subdivision, City of Beaumont, situated in the J. W. Bullock Survey, Abstract No. 7. These easements are required to provide electrical service and access necessary for construction and operation of the natural gas facility at the Beaumont Landfill. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Entergy - Utility Easement at Landfill Entergy - Access Road Easement at Landfill G TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider authorizing the City of Beaumont to apply to the Association for Library Service to Children, a division of the American Library Association, Candlewick Press "Light the Way" for a $3,000 Grant for a program aimed at special needs education. BACKGROUND The ALSC/Candlewick Press "Light the Way" Grant is sponsored by Candlewick Press in honor of author Kate DiCamillo and the themes represented in her books. The award consists of a $3,000 grant to assist a library in conducting exemplary and replicable outreach to underserved populations through a new and innovative program or an expansion of work already being done. The grant is administered by the ALSC Programs and Services Recognition Committee of the Association for Library Service to Children, a division of the American Library Association. Application deadline is December 21, 2025. FUNDING SOURCE ALSC Programs and Services Recognition Committee of the Association for Library Service to Children, a division of the American Library Association RECOMMENDATION Approval to submit the grant application. ATTACHMENTS None H TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Carmen Williams, Director of Human Resources MEETING DATE:December 16, 2025 REQUESTED ACTION:Consider approving a one-year agreement with Voya for Stop Loss Insurance for medical and pharmacy benefits. BACKGROUND A comprehensive market evaluation of Stop Loss benefits was conducted, with requests sent to 13 carriers and three initial proposals received. In November, final bid proposals were requested and reviewed by an independent team of experts from Holmes Murphy, the City’s Medical Consultant. The evaluation was based on weighted qualitative criteria, including account management, adherence to the request for proposal, implementation, and price. Of the three initial respondents, only Voya provided a firm and final quote, while the other two carriers submitted uncompetitive rates and ISL lasers. After careful review, city staff and Holmes Murphy concluded that Voya rated highest on the weighted criteria. The City is carrying a significant amount of ongoing risk into 2026, making the 37% result much better than anticipated. A deductible analysis was performed, and while increasing the deductible would yield fixed cost savings, projections indicate the unlikelihood of enough claimants to exceed the break-even point. Therefore, the recommendation is to maintain the current deductible of $275,000. An HR representative from the City of Beaumont will attend the council meeting to answer detailed questions related to the request for proposal. FUNDING SOURCE Funds are available in the Employee Benefits fund RECOMMENDATION Approval of the resolution. ATTACHMENTS I TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Cancellation of award to Unipak Corp. to provide Janitorial Supplies. BACKGROUND The City maintains a six-month contract for janitorial supplies that is used throughout multiple City Departments. This contract was awarded to multiple vendors on October 21, 2025. Section 2 was awarded to Unipak Corp. of West Long Branch, NJ, for an estimated amount of $7,931.50. However, they cannot meet the specification requirements for this section. Staff seeks to re-award Section 2 in its entirety, to Sanitary Supply Company of Beaumont Texas, for an estimated amount of $8,905.25, as they are the next qualified bidder. FUNDING SOURCE General Fund, Water Fund, Fleet Fund, Solid Waste Fund and HOT Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS J TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution approving multiple contracts for the purchase of traffic marking materials. BACKGROUND Bids were solicited for annual contracts to provide signage, sign materials, hardware, specialty paints, traffic control materials, and thermoplastic materials for Traffic Management. There were 509 invitations sent out and 4 bid submissions. Specifications were divided into eight sections, with each section awarded to the lowest qualified candidate who submitted a complete bid and met all requirements. Based on the evaluation, the recommended awards are outlined in the accompanying table. The total value of the new contract, compared to the previous contract, represents a decrease of approximately 0.64%. This reduction reflects cost savings while maintaining compliance with specifications and ensuring continuity of essential materials for Traffic Management operations. FUNDING SOURCE General Fund and Capital Fund RECOMMENDATION Approval of the resolution ATTACHMENTS Bid Tab Event Number JF1026-02 Organization City of Beaumont, Texas eBids Annual Contract for Traffic Event Title Marking Materials Workgroup Purchasing Event DescriptionEvent Owner June Jordan Event Type Bid Email june.jordan@beaumonttexas.gov Issue Date 10/23/2025 09:38:40 AM (CT)Phone(409) 880-3757 Close Date 11/20/2025 02:00:00 PM (CT) SECTION 1 - SIGN BLANKS Price SupplierQTYUOM Osburn Associates, Inc. 1EA$17,073.30 Vulcan Inc dba Vulcan Signs 1EA$19,405.75 Trantex Transportation Products of 1EANo Bid Texas, Inc. Flasher Equipment Company(Centerline Technologies, LLC)1EA$17,096.80 SECTION 2 - SIGN FACES Price SupplierQTYUOM Osburn Associates, Inc.1EA$1,179.75 Vulcan Inc dba Vulcan Signs 1EA$1,383.75 Trantex Transportation Products of 1EANo Bid Texas, Inc. Flasher Equipment Company(Centerline Technologies, LLC)$4,648.00 SECTION 3 - FINISHED SIGNS Price SupplierQTYUOM Osburn Associates, Inc.1EA$30,657.00 Vulcan Inc dba Vulcan Signs1EA$28,678.80 Trantex Transportation Products of Texas, Inc.1EANo Bid Flasher Equipment Company(Centerline Technologies, LLC)$36,590.30 SECTION 4 - SHEET MATERIAL Price SupplierQTYUOM 1EA$26,205.00 Osburn Associates, Inc. 1EA$34,458.00 Vulcan Inc dba Vulcan Signs Trantex Transportation Products of 1EANo Bid Texas, Inc. Flasher Equipment Company(Centerline Technologies, LLC)$41,513.00 *The lower bid failed to bid entire section SECTION 5 - HARDWARE Price SupplierQTYUOM Osburn Associates, Inc.1EA Vulcan Inc dba Vulcan Signs1EA$77,440.00 Trantex Transportation Products of Texas, Inc.1EA$84,237.50 Flasher Equipment Company(Centerline Technologies, LLC)$87,057.20 SECTION 6 - MARKING MATERIALS Price SupplierQTYUOM 1EANo Bid Osburn Associates, Inc. 1EANo Bid Vulcan Inc dba Vulcan Signs Trantex Transportation Products of 1EA$9,625.00 Texas, Inc. Flasher Equipment Company(Centerline Technologies, LLC)$9,461.50 SECTION 7 - PAINT Price SupplierQTYUOM Osburn Associates, Inc.1EANo Bid Vulcan Inc dba Vulcan Signs1EANo Bid Trantex Transportation Products of Texas, Inc.1EA$88,625.00 Flasher Equipment Company(Centerline Technologies, LLC)$98,455.00 SECTION 8 - TRAFFIC CONTROL Price SupplierQTYUOM 1EANo Bid Osburn Associates, Inc. 1EANo Bid Vulcan Inc dba Vulcan Signs Trantex Transportation Products of 1EA$44,705.00 Texas, Inc. Flasher Equipment Company(Centerline Technologies, LLC)$32,941.75 TOTAL$289,858.10 JF0723-46 - Page 1 1 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider an ordinance amending the FY 2026 Budget. BACKGROUND In accordance with Article VI of the City Charter, the City Manager shall strictly enforce the provisions of the budget as specified in the ordinance adopting the budget. He shall not authorize or approve any expenditure unless an appropriation has been made in the budget ordinance adopting the budget, and there is an available unencumbered balance of the appropriation sufficient to pay the liability to be incurred. Approving the proposed amendments will ensure expenditures are within the approved budget and that interfund transfers are in accordance with financial policies as approved within the budget document. The City’s 2025 fiscal year ended on September 30, 2025. At that time there were contracts, purchases of goods and services, and other items that were approved and budgeted in Fiscal Year 2025, but the actual expenditure was incurred in Fiscal Year 2026. Exhibit “A” lists the carryover items for those expenditures that are being requested so that the budget for those items can be re- established in the current fiscal year. These expenditures were originally included in the budget projections for Fiscal Year 2025. The details of the proposed amendments are as follows: 1.The General Fund’s Adopted Ending Fund Balance for FY 2026 is estimated to be $41,722,082. This Ending Fund Balance takes into consideration all the requested carryforwards in the General Fund. These requested items were estimated in the FY 2025 budget. The total General Fund carryforward request is $836,926. This includes items in various departments, including the following departments: I.T., Planning and Community Development, Public Works, Executive Office, and the Police Department. These requested items were received or paid for in the new fiscal year and require the available budget from the prior fiscal year to be carried forward to the new fiscal year to offset the cost. With this budget amendment, the General Fund is projected to end FY 2026 with a Projected Ending Fund Balance of $41,628,252. The projected Fund Balance percentage is 25% of the General Fund’s annual recurring operating expenditure, which is 5% greater than the policy requirement of not less than 20% of the annual operating expenditure. See Exhibit “A” for the budget amendment items and Exhibit “B” for a summary and available fund balances, as projected with these proposed amendments. General FundOriginal BudgetProposed AmendmentAmended Budget Total Expenditures$174,226,829$930,756$175,157,585 2.The Capital Reserve Fund’s Adopted Ending Fund Balance for FY 2026 is estimated to be $0. This Ending Fund Balance takes into consideration all the requested carryforward in the Capital Reserve Fund. These requested items were estimated in the FY 2025 budget. The total Capital Reserve Fund carryforward request is $ 195,349. This includes items in various departments, including the following departments: I.T. and Facilities Maintenance. These requested items were received or paid for in the new fiscal year and require the available budget from the prior fiscal year to be carried forward to the new fiscal year to offset the cost. See Exhibit “A” for a listing of each carryforward item. Capital Reserve Original BudgetProposed AmendmentAmended Budget Fund Total Expenditures$5,695,628$195,349$5,890,977 3.The Water Utilities Fund Adopted Ending Fund Balance for FY 2026 is estimated to be $19,636,825. This Ending Fund Balance takes into consideration all the requested carryforward in the Water & Sewer Fund. These requested items were estimated in the FY 2025 budget. The total Water & Sewer Fund carryforward request is $1,340,224. This includes items for various projects, including the following: WWTP Master Plan, Wetland Outfall Pipe Coating, Wetland Outfall Pipe Platform Install, construct new men’s restroom, Primary Recirculation Pump 5 MGD, Itron Repeater/Collector Antenna Upgrades, Itron Meter repair project and Fleet that has been ordered but not received. These requested items were received or paid for in the new fiscal year and require the available budget from the prior fiscal year to be carried forward to the new fiscal year. See Exhibit “A” for a listing of each carryforward item. Water Utilities Original BudgetProposed AmendmentAmended Budget Fund Total Expenditures$70,875,256$1,340,224$72,215,480 4.The Solid Waste Fund Adopted Ending Fund Balance for FY 2026 is estimated to be $4,634,984. An amendment is required to replace the tub grinder at the landfill. The purpose of this tub grinder is to grind down all the natural waste (trees, limbs, shrubs, etcetera) to a mulch size biproduct that is then given away to any Beaumont resident that wants it for free. Another purpose of this tub grinder is to reduce the size of this natural waste so that if buried at the landfill, it utilizes less room than bulk products do. The amount of tonnage produced by the tub grinder is reported annually to the Texas Commission on Environmental Quality (TCEQ). The amendment amount of $173,500 is for the principal and interest payment. The total amount of the tub grinder is approximately $745,000. With this budget amendment, the Solid Waste Fund is projected to end FY 2026 with a Projected Ending Fund Balance of $4,461,484. The projected Fund Balance percentage is 31% of the Solid Waste Fund’s annual recurring operating expenditure, which is 16% greater than the policy requirement of not less than 15% of the annual recurring operating expenditure. See Exhibit “A” for the other budget amendment items and Exhibit “B” for a summary and available fund balances, as projected with these proposed amendments. Solid Waste FundOriginal BudgetProposed AmendmentAmended Budget Total Expenditures$16,626,058$173,500$16,799,558 5.The Municipal Transit Fund Adopted Ending Fund Balance for FY 2026 is estimated to be ($1,960,806). This Ending Fund Balance takes into consideration all the requested carryforwards in the Municipal Transit Fund. These requested items were estimated in the FY 2025 budget. The total Municipal Transit Fund carryforward request is $28,056 for the installation of an automatic gate at the bus yard. These requested items were received or paid for in the new fiscal year and require the available budget from the prior fiscal year to be carried forward to the new fiscal year to offset the cost. See Exhibit “A” for a listing of each carryforward item. Municipal Transit Original BudgetProposed AmendmentAmended Budget Fund Total Expenditures$6,651,878$28,056$6,679,934 6.The Hotel Occupancy Tax Fund Adopted Ending Fund Balance for FY 2026 is estimated to be $374,394. This Ending Fund Balance takes into consideration all the requested carryforwards in the Hotel Occupancy Tax Fund. These requested items were estimated in the FY 2025 budget. The total Hotel Occupancy Tax Fund carryforward request is $1,567 in expenditure for the purchase of furniture for educational purposes and $4,000 in revenue from the Rotary Club of BMT as a donation. These requested items were received or paid for in the new fiscal year and require the available budget from the prior fiscal year to be carried forward to the new fiscal year to offset the cost. See Exhibit “A” for a listing of each carryforward item. Hotel Occupancy Original BudgetProposed AmendmentAmended Budget Tax Fund Total Expenditures$3,524,254$5,567$3,529,821 FUNDING SOURCE Multiple Funds RECOMMENDATION Approval of the ordinance ATTACHMENTS Exhibit A Exhibit B 2 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution approving a permit payment to the Texas Commission on Environmental Quality (TCEQ). BACKGROUND Each year, the City is issued a Public Health Service Fee by the Texas Commission on Environmental Quality (TCEQ). This fee is assessed for operating a public drinking water system, as outlined in Title 30, Texas Administrative Code, Subsection 290.51(a). The revenue collected through this fee is used to cover the commission’s expenses related to providing regulatory services to public water systems. The current fiscal year total is $141,029.35. FUNDING SOURCE Water Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS Agenda Attachment - TCEQ Annual Water System Fee 3 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute an Advance Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) for the 2025 HSIP (Eleventh Street) Interconnect Signals Project. BACKGROUND The City was recently awarded four adaptive signal projects through FHWA’s 2025 Highway Safety Improvements Program (HSIP). The projects have been assigned for the following fiscal years: College Street - FY 2026 Eleventh Street - FY 2027 FM 364 (Major Drive) - FY 2028 SS 380 (MLK Parkway) - FY 2029 This item pertains to the Eleventh Street project, which consists of upgrading equipment and implementing adaptive software to adjust signal timing and phasing in real time based on traffic conditions. An Advance Funding Agreement with TxDOT is required to initiate the project and establish the terms for federal participation. The total project estimate is $915,698.00. The City’s share is $85,393.00, with Federal Funds providing $782,485.00 and the State providing $47,820.00. The City will also be responsible for 100% of overruns during construction. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS 2025 HSIP Eleventh Street AFA TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS STATE OF TEXAS § COUNTY OF TRAVIS § ADVANCE FUNDING AGREEMENT For Highway Safety Improvement Program Off-System THIS AGREEMENT (Agreement) is made by and between the State of Texas, acting by and through the Texas Department of Transportation SCity of Beaumont WITNESSETH WHEREAS, federal law establishes federally funded programs for transportation improvements to implement its public purposes, and WHEREAS, the Texas Transportation Code, Section 201.103 establishes that the State shall design, construct and operate a system of highways in cooperation with local governments, and Section 222.052 authorizes the Texas Transportation Commission to accept contributions from political subdivisions for development and construction of public roads and the state highway system within the political subdivision, and WHEREAS, federal and state laws require local governments to meet certain contract standards relating to the management and administration of State and federal funds, and WHEREAS, the Texas Transportation Commission has codified 43 TAC, Rules 15.50-15.56 that describe federal, state, and local responsibilities for cost participation in highway improvement and other transportation projects, and WHEREAS, the Texas Transportation Commission passed Minute Order Number 116997 authorizing the State to undertake and complete a highway improvement or other transportation project generally described as 2025 HSIP (ELEVENTH ST.) Interconn Signals. The portion of the project work covered by this Agreement is identified in the Agreement, Article 3, Scope of Work (Project), and WHEREAS, the Governing Body of the Local Government has approved entering into this Agreement by resolution, ordinance, or commissioners court order dated {Enter Date of Resolution}, which is attached to and made a part of this Agreement as Attachment C, Resolution, Ordinance, or Commissioners Court Order (Attachment C). A map showing the Project location appears in Attachment A, Location Map Showing Project (Attachment A), which is attached to and made a part of this Agreement. AFA LongGen Page 1 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties, to be by them respectively kept and performed as set forth in this Agreement, it is agreed as follows: AGREEMENT 1. Responsible Parties: For the Project covered by this Agreement, the parties shall be responsible for the following work as stated in the article of the Agreement referenced in the table below: 1 Local Government* Utilities Article 8 2. Local Government* Environmental Assessment and Mitigation Article 9 3. Local Government Architectural and Engineering Services Article 11 4. State Construction Responsibilities Article 12 5. Local Government* Right of Way and Real Property Article 14 An asterisk next to the party responsible for specific work in the above table indicates that the associated specific work is not anticipated as part of the Project and is therefore not included in the budget; however, the party indicated will be responsible for that specific work if that work is not the subject of another agreement and the State determines that the specific work has become necessary to successful completion of the Project. 2. Period of the Agreement This Agreement becomes effective when signed by the last party whose signing makes the Agreement fully executed. This Agreement shall remain in effect until the Project is completed or unless terminated as provided below. 3. Scope of Work The scope of work for the Project consists of the installation of interconnected signals to form an adaptive traffic signal system on Eleventh Street in Beaumont, Texas, Jefferson County from Delaware Street South to Fannett Road as shown in Attachment A. 4. Project Sources and Uses of Funds The total estimated cost of the Project is shown in Attachment B, Project Budget (Attachment B) which is attached to and made a part of this Agreement. A. If the Local Government will perform any work under this Agreement for which reimbursement will be provided by or through the State, the Local Government must complete training. If federal funds are being used, the training must be completed before federal spending authority is obligated. Training is complete when at least one individual who is working actively and directly on the Project Government Project Procedures and Qualification for the Texas Department of and retains qualification in accordance with applicable TxDOT AFA LongGen Page 2 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS procedures. Upon request, the Local Government shall provide the certificate of qualification to the State. The individual who receives the training certificate may be an employee of the Local Government or an employee of a firm that has been contracted by the Local Government to perform oversight of the Project. The State in its discretion may deny reimbursement if the Local Government has not continuously designated in writing a qualified individual to work actively on or to directly oversee the Project. B. The expected cash contributions from the federal government, the State, the Local Government, or other parties are shown in Attachment B. The State will pay for only those Project costs that have been approved by the Texas Transportation Commission. For projects with federal funds, the State and the federal government will not reimburse the Local Government for any work performed before the federal spending authority is formally obligated to the Project by the Federal Highway Administration (FHWA). After federal funds have been obligated, the State will send to the Local Government a copy of the formal documentation showing the obligation of funds including federal award information. The Local Government is responsible for 100% of the cost of any work performed under its direction or control before the federal spending authority is formally obligated. C. Attachment B shows, by major cost categories, the cost estimates and the party responsible for performing the work for each category. These categories may include but are not limited to: (1) costs of real property; (2) costs of utility work; (3) costs of environmental assessment and remediation; (4) cost of preliminary engineering and design; (5) cost of construction and construction management; and (6) any other local project costs. D. The State will be responsible for securing the federal and State share of the funding required for the development and construction of the local Project. If the Local Government is due funds for expenses incurred, these funds will be reimbursed to the Local Government on a cost basis. E. The Local Government will be responsible for all non-federal or non-State participation costs associated with the Project, unless otherwise provided for in this Agreement or approved otherwise in an amendment to this Agreement. For items of work subject to specified percentage funding, the Local Government shall only in those instances be responsible for all Project costs that are greater than the maximum State and federal participation specified in Attachment B and for overruns in excess of the amount specified in Attachment B to be paid by the Local Government. F. The budget in Attachment B will clearly state all items subject to fixed price funding, specified percentage funding, and the periodic payment schedule, when periodic payments have been approved by the State. G. When the Local Government bears the responsibility for paying cost overruns, the Local Government shall make payment to the State within thirty (30) days from the additional funds being due. H. When fixed price funding is used, the Local Government is responsible for the fixed price amount specified in Attachment B. Fixed prices are not subject to adjustment unless (1) differing site conditions are encountered; (2) further AFA LongGen Page 3 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS differing costs from those estimated; (3) work requested by the Local Government is determined to be ineligible for federal participation; or (4) the adjustment is mutually agreed to by the State and the Local Government. I. Prior to the performance of any engineering review work by the State, the Local Government will pay to the State the amount specified in Attachment B. At a estimated cost of preliminary engineering performed or reviewed by the State for the Project. At least sixty (60) days prior to the date set for receipt of the construction bids, the Local Government shall remit its remaining financial share tion oversight and construction cost. J. The State will not execute the contract for the construction of the Project until the required funding has been made available by the Local Government in accordance with this Agreement. K. Whenever funds are paid by the Local Government to the State under this Agreement, the Local Government shall remit a check or warrant made payable Clearing House (ACH) system for electronic transfer of funds in accordance with The funds shall be deposited and managed by the State and may only be applied by the State to the Project. L. The State will not pay interest on any funds provided by the Local Government. M. If a waiver for the collection of indirect costs for a service project has been granted under 43 TAC §15.56, the State will not charge the Local Government for the indirect costs the State incurs on the Project, unless this Agreement is terminated at the request of the Local Government prior to completion of the Project. N. If the Local Government is an Economically Disadvantaged County (EDC) and if the State has approved adjustments to the standard financing arrangement, this Agreement reflects those adjustments. O. Where the Local Government is authorized to perform services under this Agreement and be reimbursed by the State, the Local Government is authorized to submit requests for reimbursement by submitting the original of an itemized invoice, in a form and containing all items required by the State, no more frequently than monthly and no later than ninety (90) days after costs are incurred. If the Local Government submits invoices more than ninety (90) days after the costs are incurred and if federal funding is reduced as a result, the State shall have no responsibility to reimburse the Local Government for those costs. P. Upon completion of the Project, the State will perform a final accounting of the Project costs for all items of work with specified percentage funding. Any funds due by the Local Government, the State, or the federal government for these work items will be promptly paid by the owing party. Q. The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this Agreement or indirectly through a subcontract under this Agreement. Acceptance of funds directly under this Agreement or indirectly through a subcontract under this Agreement acts as acceptance of the authority of the state auditor, under the direction of the AFA LongGen Page 4 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. R. Payment under this Agreement beyond the end of the current fiscal biennium is subject to availability of appropriated funds. If funds are not appropriated, this Agreement shall be terminated immediately with no liability to either party. 5. Termination of This Agreement This Agreement shall remain in effect until the Project is completed and accepted by all parties, unless: A. The Agreement is terminated in writing with the mutual consent of the parties; B. The Agreement is terminated by one party because of a breach, in which case any costs incurred because of the breach shall be paid by the breaching party; C. The Local Government elects not to provide funding after the completion of preliminary engineering, specifications, and estimates (PS&E) and the Project does not proceed because of insufficient funds, in which case the Local Government agrees to reimburse the State for its reasonable actual costs incurred during the Project; or D. The Agreement is terminated by the State because the parties are not able to execute a mutually agreeable amendment when the costs for Local Government requested items increase significantly due to differing site conditions, determination that Local government requested work is ineligible for federal or state cost participation, or a proposed work scope identifies greatly differing costs from those estimated. The State will reimburse Local Government remaining funds to the Local Government within ninety (90) days of termination; or E. The Project is inactive for thirty-six (36) consecutive months or longer and no expenditures have been charged against federal funds, in which case the State may in its discretion terminate this Agreement. 6. Amendments Amendments to this Agreement due to changes in the character of the work, terms of the Agreement, or responsibilities of the parties relating to the Project may be enacted through a mutually agreed upon, written amendment. 7. Remedies This Agreement shall not be considered as specifying the exclusive remedy for any agreement default, but all remedies existing at law and in equity may be availed of by either party to this Agreement and shall be cumulative. 8. Utilities The party named in Article 1, Responsible Parties, under AGREEMENT shall be responsible for the adjustment, removal, or relocation of utility facilities in accordance with applicable state laws, regulations, rules, policies, and procedures, including any AFA LongGen Page 5 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS utility facilities are adjusted, removed, or relocated before the scheduled beginning of construction. The Local Government will not be reimbursed with federal or State funds for the cost of required utility work. The Local Government must obtain advance approval for any variance from established procedures. Before a construction contract is on stating that the Local Government has completed the adjustment of all utilities that must be adjusted before construction is commenced. 9. Environmental Assessment and Mitigation Development of a transportation project must comply with the National Environmental Policy Act and the National Historic Preservation Act of 1966, which require environmental clearance of federal-aid projects. The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the following: A. The identification and assessment of any environmental problems associated with the development of a local project governed by this Agreement. B. T C. Providing any public meetings or public hearings required for the environmental assessment process. Public hearings will not be held prior to the approval of the Project schematic. D. The preparation of the NEPA documents required for the environmental clearance of this Project. If the Local Government is responsible for the environmental assessment and mitigation, before the advertisement for bids, the Local Government shall provide to the State written documentation from the appropriate regulatory agency or agencies that all environmental clearances have been obtained. 10. Compliance with Accessibility Standards All parties to this Agreement shall ensure that the plans for and the construction of all projects subject to this Agreement are in compliance with standards issued or approved by the Texas Department of Licensing and Regulation (TDLR) as meeting or consistent with minimum accessibility requirements of the Americans with Disabilities Act (P.L. 101- 336) (ADA). 11. Architectural and Engineering Services The party named in Article 1, Responsible Parties, under AGREEMENT has responsibility for the performance of architectural and engineering services. The Standard Specifications for Construction and Maintenance of Highways, Streets and Bridges and the special specifications and special provisions related to it. For projects on the State highway system, the design shall, at a minimum conform to applicable State manuals. For projects not on the State highway system, the design shall, at a minimum, conform to applicable American Association of State Highway and Transportation Officials (AASHTO) design standards. AFA LongGen Page 6 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS In procuring professional services, the parties to this Agreement must comply with federal requirements cited in 23 CFR Part 172 if the Project is federally funded and with Texas Government Code 2254, Subchapter A, in all cases. Professional contracts for federally funded projects must conform to federal requirements, specifically including the provision for participation by Disadvantaged Business Enterprises (DBEs), ADA, and environmental matters. If the Local Government is the responsible party, the Local Government shall submit its procurement selection process for prior approval by the State. All professional services contracts must be reviewed and approved by the State prior to execution by the Local Government. 12. Construction Responsibilities The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the following: A. Advertise for construction bids, issue bid proposals, receive and tabulate the bids, and award and administer the contract for construction of the Project. Administration of the contract includes the responsibility for construction engineering and for issuance of any change orders, supplemental agreements, amendments, or additional work orders that may become necessary subsequent to the award of the construction contract. In order to ensure federal funding eligibility, projects must be authorized by the State prior to advertising for construction. B. If the State is the responsible party, the State will use its approved contract letting and award procedures to let and award the construction contract. C. If the Local Government is the responsible party, the Local Government shall submit its contract letting and award procedures to the State for review and approval prior to letting. D. If the Local Government is the responsible party, the State must concur with the low bidder selection before the Local Government can enter into a contract with the vendor. E. If the Local Government is the responsible party, the State must review and approve change orders. F. Upon completion of the Project, the party responsible for constructing the Project construction completion and submit certification(s) sealed by a professional engineer(s) licensed in the State of Texas. G. For federally funded contracts, the parties to this Agreement will comply with federal construction requirements cited in 23 CFR Part 635 and with requirements cited in 23 CFR Part 633, and shall include the latest version of - be performed, a finding of cost effectiveness shall be made in compliance with 23 CFR 635, Subpart B. 13. Project Maintenance The Local Government shall be responsible for maintenance of locally owned roads and locally owned facilities after completion of the work. The State shall be responsible for maintenance of the State highway system after completion of the work if the work was AFA LongGen Page 7 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS on the State highway system, unless otherwise provided for in existing maintenance agreements with the Local Government. 14. Right of Way and Real Property The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the provision and acquisition of any needed right of way or real property. The Local Government shall be responsible for the following: A. Right of way and real property acquisition shall be the responsibility of the Local Government. Title to right of way and other related real property must be acceptable to the S`tate before funds may be expended for the improvement of the right of way or real property. B. If the Local Government is the owner of any part of the Project site under this Agreement, the Local Government shall permit the State or its authorized representative access to occupy the site to perform all activities required to execute the work. C. All parties to this Agreement will comply with and assume the costs for compliance with all the requirements of Title II and Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Title 42 U.S.C.A. Section 4601 et seq., including those provisions relating to incidental expenses incurred by the property owners in conveying the real property to the Local Government and benefits applicable to the relocation of any displaced person as defined in 49 CFR Section 24.2(g). Documentation to support such compliance must be maintained and made available to the State and its representatives for review and inspection. D. The Local Government shall assume all costs and perform necessary requirements to provide any necessary evidence of title or right of use in the name of the Local Government to the real property required for development of the Project. The evidence of title or rights shall be acceptable to the State, and be free and clear of all encroachments. The Local Government shall secure and provide easements and any needed rights of entry over any other land needed to develop the Project according to the approved Project plans. The Local Government shall be responsible for securing any additional real property required for completion of the Project. E. In the event real property is donated to the Local Government after the date of the State regarding fair market value of the acquired property. The State will review the Loc property is to be used as a funding match, it may not be provided by the Local Government. The State will not reimburse the Local Government for any real property acquired before execution of this Agreement and the obligation of federal spending authority. F. The Local Government shall prepare real property maps, property descriptions, and other data as needed to properly describe the real property and submit them to the State for approval prior to the Local Government acquiring the real AFA LongGen Page 8 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS property. Tracings of the maps shall be retained by the Local Government for a permanent record. G. The Local Government agrees to make a determination of property values for each real property parcel by methods acceptable to the State and to submit to the State a tabulation of the values so determined, signed by the appropriate Local Government representative. The tabulations shall list the parcel numbers, ownership, acreage and recommended compensation. Compensation shall be shown in the component parts of land acquired, itemization of improvements acquired, damages (if any) and the amounts by which the total compensation will be reduced if the owner retains improvements. This tabulation shall be accompanied by an explanation to support the determined values, together with a copy of information or reports used in calculating all determined values. Expenses incurred by the Local Government in performing this work may be eligible for reimbursement after the Local Government has received written authorization by the State to proceed with determination of real property values. The State will review the data submitted and may base its reimbursement for parcel acquisitions on these values. H. Reimbursement for real property costs will be made to the Local Government for real property purchased in an amount not to exceed eighty percent (80%) of the cost of the real property purchased in accordance with the terms and provisions of this Agreement. Reimbursement will be in an amount not to exceed eighty of the parcel, whichever is less. In addition, reimbursement will be made to the Local Government for necessary payments to appraisers, expenses incurred in order to assure good title, and costs associated with the relocation of displaced persons and personal property as well as incidental expenses. I. If the Project requires the use of real property to which the Local Government will not hold title, a separate agreement between the owners of the real property and the Local Government must be executed prior to execution of this Agreement. The separate agreement must establish that the Project will be dedicated for public use for a period of not less than 10 (ten) years after completion. The separate agreement must define the responsibilities of the parties as to the use of the real property and operation and maintenance of the Project after completion. The separate agreement must be approved by the State prior to its execution. A copy of the executed agreement shall be provided to the State. 15. Insurance If this Agreement authorizes the Local Government or its contractor to perform any work on State right of way, before beginning work, the entity performing the work shall provide the State with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of coverage in the amounts and types specified on the Certificate of Insurance for all persons and entities working on State right of way. This coverage shall be maintained until all work on the State right of way is complete. If coverage is not maintained, all work on State right of way shall cease immediately, and the State may recover damages and all costs of completing the work. AFA LongGen Page 9 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS 16. Notices All notices to either party shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to that party at the following address: Local Government: State: City of Beaumont Texas Department of Transportation ATTN: City Manager ATTN: Director of Contract Services th 801 Main Street Suite #300 125 E. 11 Street Beaumont, Texas 77701 Austin, TX 78701 All notices shall be deemed given on the date delivered in person or deposited in the mail, unless otherwise provided by this Agreement. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that notices shall be delivered personally or by certified U.S. mail, and that request shall be carried out by the other party. 17. Legal Construction If one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions and this Agreement shall be construed as if it did not contain the invalid, illegal, or unenforceable provision. 18. Responsibilities of the Parties The State and the Local Government agree that neither party is an agent, servant, or employee of the other party, and each party agrees it is responsible for its individual acts and deeds as well as the acts and deeds of its contractors, employees, representatives, and agents. 19. Ownership of Documents Upon completion or termination of this Agreement, all documents prepared by the State shall remain the property of the State. All data and information prepared under this Agreement shall be made available to the State without restriction or limitation on their further use. All documents produced or approved or otherwise created by the Local Government shall be transmitted to the State, in the format directed by the State, on a monthly basis or as required by the State. The originals shall remain the property of the Local Government. . 20. Compliance with Laws The parties to this Agreement shall comply with all federal, state, and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any manner affecting the performance of this Agreement. When required, the Local Government shall furnish the State with satisfactory proof of this compliance. AFA LongGen Page 10 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS 21. Sole Agreement This Agreement constitutes the sole and only agreement between the parties and supersedes any prior understandings or written or oral agreements respecting the Agreement 22. Cost Principles In order to be reimbursed with federal funds, the parties shall comply with the cost principles established in 2 CFR 200 that specify that all reimbursed costs are allowable, reasonable, and allocable to the Project. 23. Procurement and Property Management Standards The parties to this Agreement shall adhere to the procurement and property management standards established in 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and to the Texas Uniform Grant Management Standards. The State must pre-approve the Local procurement procedures for purchases to be eligible for state or federal funds. 24. Inspection of Books and Records The parties to this Agreement shall maintain all books, documents, papers, accounting records, and other documentation relating to costs incurred under this Agreement and shall make such materials available to the State, the Local Government, and, if federally funded, the FHWA and the U.S. Office of the Inspector General or their duly authorized representatives for review and inspection at its office during the Agreement period and for seven (7) years from the date of final reimbursement by FHWA under this Agreement or until any impending litigation or claims are resolved. Additionally, the State, the Local Government, and the FHWA and their duly authorized representatives shall have access to all the governmental records that are directly applicable to this Agreement for the purpose of making audits, examinations, excerpts, and transcriptions. 25. Civil Rights Compliance The parties to this Agreement are responsible for the following: A. Compliance with Regulations: Both parties will comply with the Acts and the Regulations relative to Nondiscrimination in Federally-assisted programs of the U.S. Department of Transportation (USDOT), the Federal Highway Administration (FHWA), as they may be amended from time to time, which are herein incorporated by reference and made part of this Agreement. B. Nondiscrimination: The Local Government, with regard to the work performed by it during the Agreement, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The Local Government will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the Agreement covers any activity, project, or program set forth in Appendix B of 49 CFR Part 21. AFA LongGen Page 11 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS C. Solicitations for Subcontracts, Including Procurement of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by the Local Government for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor or obligations under this Agreement and the Acts and Regulations relative to Nondiscrimination on the grounds of race, color, or national origin. D. Information and Reports: The Local Government will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto, and will permit access to its books, records, accounts, other sources of information, and facilities as may be determined by the State or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations or directives. Where any information required of the Local Government is in the exclusive possession of another who fails or refuses to furnish this information, the Local Government will so certify to the State or the FHWA, as appropriate, and will set forth what efforts it has made to obtain the information. E. Sanctions for Noncompliance: In the event of the Local Government's noncompliance with the Nondiscrimination provisions of this Agreement, the State will impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: F. withholding of payments to the Local Government under the Agreement until the Local Government complies and/or G. cancelling, terminating, or suspending of the Agreement, in whole or in part. H. Incorporation of Provisions: The Local Government will include the provisions of paragraphs (A) through (F) in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The Local Government will take such action with respect to any subcontract or procurement as the State or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Local Government becomes involved in, or is threatened with, litigation with a subcontractor or supplier because of such direction, the Local Government may request the State to enter into such litigation to protect the interests of the State. In addition, the Local Government may request the United States to enter into such litigation to protect the interests of the United States. 26. Pertinent Non-Discrimination Authorities During the performance of this Agreement, each party, for itself, its assignees, and successors in interest agree to comply with the following nondiscrimination statutes and authorities; including but not limited to: A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (pro-hibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or AFA LongGen Page 12 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS whose property has been acquired because of federal or federal-aid programs and projects). C. Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), as amended, (prohibits discrimination on the basis of sex). D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.) as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27. E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age). F. Airport and Airway Improvement Act of 1982, (49 U.S.C. Chapter 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex). G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the def programs or activities of the federal-aid recipients, subrecipients and contractors, whether such programs or activities are federally funded or not). H. Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38. I. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex). J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations. K. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, the parties must take reasonable steps to ensure that LEP persons have meaningful access to the programs (70 Fed. Reg. at 74087 to 74100). L. Title IX of the Education Amendments of 1972, as amended, which prohibits the parties from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq.). 27. Disadvantaged Business Enterprise (DBE) Program Requirements If federal funds are used: A. The parties shall comply with the Disadvantaged Business Enterprise Program requirements established in 49 CFR Part 26. AFA LongGen Page 13 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS B. DBE program. C. The Local Government shall incorporate into its contracts with subproviders an consideration of the local market, project size, and nature of the goods or services to be acquired. The Local Government shall submit its proposed scope of services and quantity estimates to the State to allow the State to establish a DBE goal for each Local Government contract with a subprovider. The Local Government shall be responsible for documenting its actions. D. referenced in TxDOT Form 2395, Memorandum of Understanding Regarding the -Approved Disadvantaged Business Enterprise by Entity, and attachments found at web address http://ftp.dot.state.tx.us/pub/txdot- info/bop/dbe/mou/mou_attachments.pdf. E. The Local Government shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any U.S. Department of Transportation (DOT)-assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The Local Government shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non- discrimination in award and administration of DOT-assisted contracts. The proved by DOT, is incorporated by reference in this Agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Local Government of its failure to carry out its approved program, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). F. Each contract the Local Government signs with a contractor (and each subcontract the prime contractor signs with a sub-contractor) must include the following assurance: The contractor, sub-recipient, or sub-contractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement or such other remedy as the recipient deems appropriate. 28. Debarment Certifications If federal funds are used, the parties are prohibited from making any award at any tier to any party that is debarred or suspended or otherwise excluded from or ineligible for ecuting this Agreement, the Local Government certifies that it and its principals are not currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549 AFA LongGen Page 14 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS and further certifies that it will not do business with any party, to include principals, that is currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549. The parties to this Agreement shall require any party to a subcontract or purchase order awarded under this Agreement to certify its eligibility to receive federal funds and, when requested by the State, to furnish a copy of the certification. If state funds are used, the parties are prohibited from making any award to any party that is debarred under the Texas Administrative Code, Title 34, Part 1, Chapter 20, Subchapter G, Rule §20.585 and the Texas Administrative Code, Title 43, Part 1, Chapter 9, Subchapter G. 29. Lobbying Certification If federal funds are used, in executing this Agreement, each signatory certifies to the A. No federal appropriated funds have been paid or will be paid by or on behalf of the parties to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with federal contracts, grants, loans, or cooperative agreements, the signatory for the Local Government shall complete and submit the Federal Standard Form- nstructions. C. The parties shall require that the language of this certification shall be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and all sub-recipients shall certify and disclose accordingly. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Title 31 U.S.C. §1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 30. Federal Funding Accountability and Transparency Act Requirements If federal funds are used, the following requirements apply: A. Any recipient of funds under this Agreement agrees to comply with the Federal Funding Accountability and Transparency Act (FFATA) and implementing regulations at 2 CFR Part 170, including Appendix A. This Agreement is subject to the following award terms: http://www.gpo.gov/fdsys/pkg/FR-2010-09- AFA LongGen Page 15 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS 14/pdf/2010-22705.pdf and http://www.gpo.gov/fdsys/pkg/FR-2010-09- 14/pdf/2010-22706.pdf. B. The Local Government agrees that it shall: 1. Obtain and provide to the State a System for Award Management (SAM) number (Federal Acquisition Regulation, Part 4, Sub-part 4.11) if this award provides more than $25,000 in federal funding. The SAM number may be obtained by visiting the SAM website whose address is: https://www.sam.gov/portal/public/SAM/ 2. Obtain and provide to the State a Data Universal Numbering System (DUNS) number, a unique nine-character number that allows federal government to track the distribution of federal money. The DUNS may be requested free of charge for all businesses and entities required to do so by visiting the Dun & Bradstreet (D&B) on-line registration website http://fedgov.dnb.com/webform; and 3. Report the total compensation and names of its top five executives to the State if: i. More than 80% of annual gross revenues are from the federal government, and those revenues are greater than $25,000,000; and ii. The compensation information is not already available through reporting to the U.S. Securities and Exchange Commission. 31. Single Audit Report If federal funds are used: A. The parties shall comply with the single audit report requirements stipulated in 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. If threshold expenditures of $750,000 or more are met during the fiscal year, the Local Government must submit a Single Audit Report and Management Letter (if applicable) to TxDOT's Compliance Division, 125 East 11th Street, Austin, TX 78701 or contact Txby email at singleaudits@txdot.gov. C. If expenditures are less than the threshold during the Local Government's fiscal year, the Local Government must submit a statement to TxDOT's Compliance Division as follows: "We did not meet the $______ expenditure threshold and therefore, are not required to have a single audit performed for FY ______." D. For each year the Project remains open for federal funding expenditures, the Local Government will be responsible for filing a report or statement as described above. The required annual filing shall extend throughout the life of the Agreement, unless otherwise amended or the Project has been formally closed out and no charges have been incurred within the current fiscal year. AFA LongGen Page 16 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS 32. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this Agreement on behalf of the entity represented. Each party is signing this A THE STATE OF TEXAS THE LOCAL GOVERNMENT Signature Signature Typed or Printed Name Typed or Printed Name Typed or Printed Title Typed or Printed Title Date Date AFA LongGen Page 17 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS ATTACHMENT A LOCATION MAP SHOWING PROJECT Page 1 of 1 AFA LongGen Attachment A TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS ATTACHMENT B PROJECT BUDGET Construction costs will be allocated based on 100% Federal funding until the Federal funding reaches the maximum obligated amount. The Local Government will then be responsible for all other costs including overruns. Description Total Estimated Federal Participation State Local Cost Participation Participation % Cost % Cost % Cost Engineering (by -$35,000.00 0% $0 0% $0 100% $35,000.00 Local Government) Construction (by $782,485.00 100% $782,485.00 0% $0 0% $0 State) Subtotal $817,485.00 $782,485.00 $0 $35,000.00 Environmental $1.00 0% $0 0% $0 100% $1.00 Direct State Costs Engineering Direct $1,250.00 0% $0 0% $0 100% $1,250.00 State Costs Right of Way $1.00 0% $0 0% $0 100% $1.00 Direct State Costs Utility $1.00 0% $0 0% $0 100% $1.00 Direct State Costs Construction Direct $49,140.00 0% $0 0% $0 100% $49,140.00 State Costs Subtotal $50,393.00 $0 $0 $50,393.00 Indirect State Costs $47,820.00 0% $0 100% $47,820.00 0% $0 (5.51%) TOTAL $915,698.00 $782,485.00 $47,820.00 $85,393.00 Initial payment by the Local Government to the State: $1,253.00. Payment by the Local Government to the State before construction: $49,140.00. Estimated total payment by the Local Government to the State $50,393.00. This is an estimate. The final amount of Local Government participation will be based on actual costs. Page 1 of 1 AFA LongGen Attachment B TxDOT:: Federal Highway Administration: CCSJ # 0920-38-302 AFA ID Z00012413 CFDA No. 20.205 AFA CSJs 0920-38-302 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP(ELEVENTH ST) Project Name AFA Not Used For Research & Development INTERCONN SIGNALS ATTACHMENT C RESOLUTION, ORDINANCE, OR COMMISSIONERS COURT ORDER Page 1 of 1 AFA LongGen Attachment C 4 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute an Advance Funding Agreement (AFA) with the Texas Department of Transportation (TxDOT) for the 2025 HSIP (FM 364) Interconnect Signals Project. BACKGROUND The City was recently awarded four adaptive signal projects through FHWA’s 2025 Highway Safety Improvements Program (HSIP). The projects have been assigned for the following fiscal years: College Street - FY 2026 Eleventh Street - FY 2027 FM 364 (Major Drive) - FY 2028 SS380 (MLK Parkway) - FY 2029 This item pertains to the FM 364 (Major Drive) project, which consists of upgrading equipment and implementing adaptive software to adjust signal timing and phasing in real time based on traffic conditions. An Advance Funding Agreement with TxDOT is required to initiate the project and establish the terms for federal participation. The total project estimate is $800,924.00. The City’s share is $78,969.00, with Federal Funds providing $612,180.90 and the State providing $109,774.10. The City will also be responsible for 100% of overruns during construction. FUNDING SOURCE Certificates of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS 2025 HSIP (FM 364) Interconnect Signals TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS STATE OF TEXAS § COUNTY OF TRAVIS § ADVANCE FUNDING AGREEMENT For Highway Safety Improvement Program On-System THIS AGREEMENT (Agreement) is made by and between the State of Texas, acting by and through the Texas Department of Transportation SCity of Beaumont WITNESSETH WHEREAS, federal law establishes federally funded programs for transportation improvements to implement its public purposes, and WHEREAS, the Texas Transportation Code, Section 201.103 establishes that the State shall design, construct and operate a system of highways in cooperation with local governments, and Section 222.052 authorizes the Texas Transportation Commission to accept contributions from political subdivisions for development and construction of public roads and the state highway system within the political subdivision, and WHEREAS, federal and state laws require local governments to meet certain contract standards relating to the management and administration of State and federal funds, and WHEREAS, the Texas Transportation Commission has codified 43 TAC, Rules 15.50-15.56 that describe federal, state, and local responsibilities for cost participation in highway improvement and other transportation projects, and WHEREAS, the Texas Transportation Commission passed Minute Order Number 116997 authorizing the State to undertake and complete a highway improvement or other transportation project generally described as the 2025 Highway Safety Improvement Program (HSIP) adaptive signal system for the Major Drive (FM 364) corridor. The portion of the project work covered by this Agreement is identified in the Agreement, Article 3, Scope of Work (Project), and WHEREAS, the Governing Body of the Local Government has approved entering into this Agreement by resolution, ordinance, or commissioners court order dated {Enter Date of Resolution}, which is attached to and made a part of this Agreement as Attachment C, Resolution, Ordinance, or Commissioners Court Order (Attachment C). A map showing the Project location appears in Attachment A, Location Map Showing Project (Attachment A), which is attached to and made a part of this Agreement. AFA LongGen Page 1 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties, to be by them respectively kept and performed as set forth in this Agreement, it is agreed as follows: AGREEMENT 1. Responsible Parties: For the Project covered by this Agreement, the parties shall be responsible for the following work as stated in the article of the Agreement referenced in the table below: 1 Local Government* Utilities Article 8 2. Local Government* Environmental Assessment and Mitigation Article 9 3. Local Government Architectural and Engineering Services Article 11 4. State Construction Responsibilities Article 12 5. Local Government* Right of Way and Real Property Article 14 An asterisk next to the party responsible for specific work in the above table indicates that the associated specific work is not anticipated as part of the Project and is therefore not included in the budget; however, the party indicated will be responsible for that specific work if that work is not the subject of another agreement and the State determines that the specific work has become necessary to successful completion of the Project. 2. Period of the Agreement This Agreement becomes effective when signed by the last party whose signing makes the Agreement fully executed. This Agreement shall remain in effect until the Project is completed or unless terminated as provided below. 3. Scope of Work The scope of work for the Project consists of the installation of interconnected signals to form an adaptive traffic signal system on FM 364, down the Major Drive Corridor from SH 105 South to SH 124 as shown in Attachment A. 4. Project Sources and Uses of Funds The total estimated cost of the Project is shown in Attachment B, Project Budget (Attachment B) which is attached to and made a part of this Agreement. A. If the Local Government will perform any work under this Agreement for which reimbursement will be provided by or through the State, the Local Government must complete training. If federal funds are being used, the training must be completed before federal spending authority is obligated. Training is complete when at least one individual who is working actively and directly on the Project AFA LongGen Page 2 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS Government Project Procedures and Qualification for the Texas Department of and retains qualification in accordance with applicable TxDOT procedures. Upon request, the Local Government shall provide the certificate of qualification to the State. The individual who receives the training certificate may be an employee of the Local Government or an employee of a firm that has been contracted by the Local Government to perform oversight of the Project. The State in its discretion may deny reimbursement if the Local Government has not continuously designated in writing a qualified individual to work actively on or to directly oversee the Project. B. The expected cash contributions from the federal government, the State, the Local Government, or other parties are shown in Attachment B. The State will pay for only those Project costs that have been approved by the Texas Transportation Commission. For projects with federal funds, the State and the federal government will not reimburse the Local Government for any work performed before the federal spending authority is formally obligated to the Project by the Federal Highway Administration (FHWA). After federal funds have been obligated, the State will send to the Local Government a copy of the formal documentation showing the obligation of funds including federal award information. The Local Government is responsible for 100% of the cost of any work performed under its direction or control before the federal spending authority is formally obligated. C. Attachment B shows, by major cost categories, the cost estimates and the party responsible for performing the work for each category. These categories may include but are not limited to: (1) costs of real property; (2) costs of utility work; (3) costs of environmental assessment and remediation; (4) cost of preliminary engineering and design; (5) cost of construction and construction management; and (6) any other local project costs. D. The State will be responsible for securing the federal and State share of the funding required for the development and construction of the local Project. If the Local Government is due funds for expenses incurred, these funds will be reimbursed to the Local Government on a cost basis. E. The Local Government will be responsible for all non-federal or non-State participation costs associated with the Project, unless otherwise provided for in this Agreement or approved otherwise in an amendment to this Agreement. For items of work subject to specified percentage funding, the Local Government shall only in those instances be responsible for all Project costs that are greater than the maximum State and federal participation specified in Attachment B and for overruns in excess of the amount specified in Attachment B to be paid by the Local Government. F. The budget in Attachment B will clearly state all items subject to fixed price funding, specified percentage funding, and the periodic payment schedule, when periodic payments have been approved by the State. G. When the Local Government bears the responsibility for paying cost overruns, the Local Government shall make payment to the State within thirty (30) days from the additional funds being due. AFA LongGen Page 3 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS H. When fixed price funding is used, the Local Government is responsible for the fixed price amount specified in Attachment B. Fixed prices are not subject to adjustment unless (1) differing site conditions are encountered; (2) further differing costs from those estimated; (3) work requested by the Local Government is determined to be ineligible for federal participation; or (4) the adjustment is mutually agreed to by the State and the Local Government. I. Prior to the performance of any engineering review work by the State, the Local Government will pay to the State the amount specified in Attachment B. At a estimated cost of preliminary engineering performed or reviewed by the State for the Project. At least sixty (60) days prior to the date set for receipt of the construction bids, the Local Government shall remit its remaining financial share tion oversight and construction cost. J. The State will not execute the contract for the construction of the Project until the required funding has been made available by the Local Government in accordance with this Agreement. K. Whenever funds are paid by the Local Government to the State under this Agreement, the Local Government shall remit a check or warrant made payable Clearing House (ACH) system for electronic transfer of funds in accordance with The funds shall be deposited and managed by the State and may only be applied by the State to the Project. L. The State will not pay interest on any funds provided by the Local Government. M. If a waiver for the collection of indirect costs for a service project has been granted under 43 TAC §15.56, the State will not charge the Local Government for the indirect costs the State incurs on the Project, unless this Agreement is terminated at the request of the Local Government prior to completion of the Project. N. If the Local Government is an Economically Disadvantaged County (EDC) and if the State has approved adjustments to the standard financing arrangement, this Agreement reflects those adjustments. O. Where the Local Government is authorized to perform services under this Agreement and be reimbursed by the State, the Local Government is authorized to submit requests for reimbursement by submitting the original of an itemized invoice, in a form and containing all items required by the State, no more frequently than monthly and no later than ninety (90) days after costs are incurred. If the Local Government submits invoices more than ninety (90) days after the costs are incurred and if federal funding is reduced as a result, the State shall have no responsibility to reimburse the Local Government for those costs. P. Upon completion of the Project, the State will perform a final accounting of the Project costs for all items of work with specified percentage funding. Any funds due by the Local Government, the State, or the federal government for these work items will be promptly paid by the owing party. AFA LongGen Page 4 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS Q. The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this Agreement or indirectly through a subcontract under this Agreement. Acceptance of funds directly under this Agreement or indirectly through a subcontract under this Agreement acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. R. Payment under this Agreement beyond the end of the current fiscal biennium is subject to availability of appropriated funds. If funds are not appropriated, this Agreement shall be terminated immediately with no liability to either party. 5. Termination of This Agreement This Agreement shall remain in effect until the Project is completed and accepted by all parties, unless: A. The Agreement is terminated in writing with the mutual consent of the parties; B. The Agreement is terminated by one party because of a breach, in which case any costs incurred because of the breach shall be paid by the breaching party; C. The Local Government elects not to provide funding after the completion of preliminary engineering, specifications, and estimates (PS&E) and the Project does not proceed because of insufficient funds, in which case the Local Government agrees to reimburse the State for its reasonable actual costs incurred during the Project; or D. The Agreement is terminated by the State because the parties are not able to execute a mutually agreeable amendment when the costs for Local Government requested items increase significantly due to differing site conditions, determination that Local government requested work is ineligible for federal or state cost participation, or a proposed work scope identifies greatly differing costs from those estimated. The State will reimburse Local Government remaining funds to the Local Government within ninety (90) days of termination; or E. The Project is inactive for thirty-six (36) consecutive months or longer and no expenditures have been charged against federal funds, in which case the State may in its discretion terminate this Agreement. 6. Amendments Amendments to this Agreement due to changes in the character of the work, terms of the Agreement, or responsibilities of the parties relating to the Project may be enacted through a mutually agreed upon, written amendment. 7. Remedies This Agreement shall not be considered as specifying the exclusive remedy for any agreement default, but all remedies existing at law and in equity may be availed of by either party to this Agreement and shall be cumulative. AFA LongGen Page 5 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS 8. Utilities The party named in Article 1, Responsible Parties, under AGREEMENT shall be responsible for the adjustment, removal, or relocation of utility facilities in accordance with applicable state laws, regulations, rules, policies, and procedures, including any utility facilities are adjusted, removed, or relocated before the scheduled beginning of construction. The Local Government will not be reimbursed with federal or State funds for the cost of required utility work. The Local Government must obtain advance approval for any variance from established procedures. Before a construction contract is on stating that the Local Government has completed the adjustment of all utilities that must be adjusted before construction is commenced. 9. Environmental Assessment and Mitigation Development of a transportation project must comply with the National Environmental Policy Act and the National Historic Preservation Act of 1966, which require environmental clearance of federal-aid projects. The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the following: A. The identification and assessment of any environmental problems associated with the development of a local project governed by this Agreement. B. T C. Providing any public meetings or public hearings required for the environmental assessment process. Public hearings will not be held prior to the approval of the Project schematic. D. The preparation of the NEPA documents required for the environmental clearance of this Project. If the Local Government is responsible for the environmental assessment and mitigation, before the advertisement for bids, the Local Government shall provide to the State written documentation from the appropriate regulatory agency or agencies that all environmental clearances have been obtained. 10. Compliance with Accessibility Standards All parties to this Agreement shall ensure that the plans for and the construction of all projects subject to this Agreement are in compliance with standards issued or approved by the Texas Department of Licensing and Regulation (TDLR) as meeting or consistent with minimum accessibility requirements of the Americans with Disabilities Act (P.L. 101- 336) (ADA). 11. Architectural and Engineering Services The party named in Article 1, Responsible Parties, under AGREEMENT has responsibility for the performance of architectural and engineering services. The Standard Specifications for Construction and Maintenance of Highways, Streets and Bridges and the special specifications and special provisions related to it. For projects on the State AFA LongGen Page 6 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS highway system, the design shall, at a minimum conform to applicable State manuals. For projects not on the State highway system, the design shall, at a minimum, conform to applicable American Association of State Highway and Transportation Officials (AASHTO) design standards. In procuring professional services, the parties to this Agreement must comply with federal requirements cited in 23 CFR Part 172 if the Project is federally funded and with Texas Government Code 2254, Subchapter A, in all cases. Professional contracts for federally funded projects must conform to federal requirements, specifically including the provision for participation by Disadvantaged Business Enterprises (DBEs), ADA, and environmental matters. If the Local Government is the responsible party, the Local Government shall submit its procurement selection process for prior approval by the State. All professional services contracts must be reviewed and approved by the State prior to execution by the Local Government. 12. Construction Responsibilities The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the following: A. Advertise for construction bids, issue bid proposals, receive and tabulate the bids, and award and administer the contract for construction of the Project. Administration of the contract includes the responsibility for construction engineering and for issuance of any change orders, supplemental agreements, amendments, or additional work orders that may become necessary subsequent to the award of the construction contract. In order to ensure federal funding eligibility, projects must be authorized by the State prior to advertising for construction. B. If the State is the responsible party, the State will use its approved contract letting and award procedures to let and award the construction contract. C. If the Local Government is the responsible party, the Local Government shall submit its contract letting and award procedures to the State for review and approval prior to letting. D. If the Local Government is the responsible party, the State must concur with the low bidder selection before the Local Government can enter into a contract with the vendor. E. If the Local Government is the responsible party, the State must review and approve change orders. F. Upon completion of the Project, the party responsible for constructing the Project construction completion and submit certification(s) sealed by a professional engineer(s) licensed in the State of Texas. G. For federally funded contracts, the parties to this Agreement will comply with federal construction requirements cited in 23 CFR Part 635 and with requirements cited in 23 CFR Part 633, and shall include the latest version of - AFA LongGen Page 7 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS be performed, a finding of cost effectiveness shall be made in compliance with 23 CFR 635, Subpart B. 13. Project Maintenance The Local Government shall be responsible for maintenance of locally owned roads and locally owned facilities after completion of the work. The State shall be responsible for maintenance of the State highway system after completion of the work if the work was on the State highway system, unless otherwise provided for in existing maintenance agreements with the Local Government. 14. Right of Way and Real Property The party named in Article 1, Responsible Parties, under AGREEMENT is responsible for the provision and acquisition of any needed right of way or real property. The Local Government shall be responsible for the following: A. Right of way and real property acquisition shall be the responsibility of the Local Government. Title to right of way and other related real property must be acceptable to the State before funds may be expended for the improvement of the right of way or real property. B. If the Local Government is the owner of any part of the Project site under this Agreement, the Local Government shall permit the State or its authorized representative access to occupy the site to perform all activities required to execute the work. C. All parties to this Agreement will comply with and assume the costs for compliance with all the requirements of Title II and Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Title 42 U.S.C.A. Section 4601 et seq., including those provisions relating to incidental expenses incurred by the property owners in conveying the real property to the Local Government and benefits applicable to the relocation of any displaced person as defined in 49 CFR Section 24.2(g). Documentation to support such compliance must be maintained and made available to the State and its representatives for review and inspection. D. The Local Government shall assume all costs and perform necessary requirements to provide any necessary evidence of title or right of use in the name of the Local Government to the real property required for development of the Project. The evidence of title or rights shall be acceptable to the State, and be free and clear of all encroachments. The Local Government shall secure and provide easements and any needed rights of entry over any other land needed to develop the Project according to the approved Project plans. The Local Government shall be responsible for securing any additional real property required for completion of the Project. E. In the event real property is donated to the Local Government after the date of the State regarding fair market value of the acquired property. The State will review the Loc AFA LongGen Page 8 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS property is to be used as a funding match, it may not be provided by the Local Government. The State will not reimburse the Local Government for any real property acquired before execution of this Agreement and the obligation of federal spending authority. F. The Local Government shall prepare real property maps, property descriptions, and other data as needed to properly describe the real property and submit them to the State for approval prior to the Local Government acquiring the real property. Tracings of the maps shall be retained by the Local Government for a permanent record. G. The Local Government agrees to make a determination of property values for each real property parcel by methods acceptable to the State and to submit to the State a tabulation of the values so determined, signed by the appropriate Local Government representative. The tabulations shall list the parcel numbers, ownership, acreage and recommended compensation. Compensation shall be shown in the component parts of land acquired, itemization of improvements acquired, damages (if any) and the amounts by which the total compensation will be reduced if the owner retains improvements. This tabulation shall be accompanied by an explanation to support the determined values, together with a copy of information or reports used in calculating all determined values. Expenses incurred by the Local Government in performing this work may be eligible for reimbursement after the Local Government has received written authorization by the State to proceed with determination of real property values. The State will review the data submitted and may base its reimbursement for parcel acquisitions on these values. H. Reimbursement for real property costs will be made to the Local Government for real property purchased in an amount not to exceed eighty percent (80%) of the cost of the real property purchased in accordance with the terms and provisions of this Agreement. Reimbursement will be in an amount not to exceed eighty of the parcel, whichever is less. In addition, reimbursement will be made to the Local Government for necessary payments to appraisers, expenses incurred in order to assure good title, and costs associated with the relocation of displaced persons and personal property as well as incidental expenses. I. If the Project requires the use of real property to which the Local Government will not hold title, a separate agreement between the owners of the real property and the Local Government must be executed prior to execution of this Agreement. The separate agreement must establish that the Project will be dedicated for public use for a period of not less than 10 (ten) years after completion. The separate agreement must define the responsibilities of the parties as to the use of the real property and operation and maintenance of the Project after completion. The separate agreement must be approved by the State prior to its execution. A copy of the executed agreement shall be provided to the State. AFA LongGen Page 9 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS 15. Insurance If this Agreement authorizes the Local Government or its contractor to perform any work on State right of way, before beginning work, the entity performing the work shall provide the State with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of coverage in the amounts and types specified on the Certificate of Insurance for all persons and entities working on State right of way. This coverage shall be maintained until all work on the State right of way is complete. If coverage is not maintained, all work on State right of way shall cease immediately, and the State may recover damages and all costs of completing the work. 16. Notices All notices to either party shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to that party at the following address: Local Government: State: City of Beaumont Texas Department of Transportation ATTN: City Manager ATTN: Director of Contract Services th 801 Main Street Suite #300 125 E. 11 Street Beaumont, Texas 77701 Austin, TX 78701 All notices shall be deemed given on the date delivered in person or deposited in the mail, unless otherwise provided by this Agreement. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that notices shall be delivered personally or by certified U.S. mail, and that request shall be carried out by the other party. 17. Legal Construction If one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions and this Agreement shall be construed as if it did not contain the invalid, illegal, or unenforceable provision. 18. Responsibilities of the Parties The State and the Local Government agree that neither party is an agent, servant, or employee of the other party, and each party agrees it is responsible for its individual acts and deeds as well as the acts and deeds of its contractors, employees, representatives, and agents. 19. Ownership of Documents Upon completion or termination of this Agreement, all documents prepared by the State shall remain the property of the State. All data and information prepared under this Agreement shall be made available to the State without restriction or limitation on their further use. All documents produced or approved or otherwise created by the Local AFA LongGen Page 10 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS Government shall be transmitted to the State, in the format directed by the State, on a monthly basis or as required by the State. The originals shall remain the property of the Local Government. . 20. Compliance with Laws The parties to this Agreement shall comply with all federal, state, and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any manner affecting the performance of this Agreement. When required, the Local Government shall furnish the State with satisfactory proof of this compliance. 21. Sole Agreement This Agreement constitutes the sole and only agreement between the parties and supersedes any prior understandings or written or oral agreements respecting the Agreement 22. Cost Principles In order to be reimbursed with federal funds, the parties shall comply with the cost principles established in 2 CFR 200 that specify that all reimbursed costs are allowable, reasonable, and allocable to the Project. 23. Procurement and Property Management Standards The parties to this Agreement shall adhere to the procurement and property management standards established in 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and to the Texas Uniform Grant Management Standards. The State must pre-approve the Local procurement procedures for purchases to be eligible for state or federal funds. 24. Inspection of Books and Records The parties to this Agreement shall maintain all books, documents, papers, accounting records, and other documentation relating to costs incurred under this Agreement and shall make such materials available to the State, the Local Government, and, if federally funded, the FHWA and the U.S. Office of the Inspector General or their duly authorized representatives for review and inspection at its office during the Agreement period and for seven (7) years from the date of final reimbursement by FHWA under this Agreement or until any impending litigation or claims are resolved. Additionally, the State, the Local Government, and the FHWA and their duly authorized representatives shall have access to all the governmental records that are directly applicable to this Agreement for the purpose of making audits, examinations, excerpts, and transcriptions. 25. Civil Rights Compliance The parties to this Agreement are responsible for the following: A. Compliance with Regulations: Both parties will comply with the Acts and the Regulations relative to Nondiscrimination in Federally-assisted programs of the U.S. Department of Transportation (USDOT), the Federal Highway AFA LongGen Page 11 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS Administration (FHWA), as they may be amended from time to time, which are herein incorporated by reference and made part of this Agreement. B. Nondiscrimination: The Local Government, with regard to the work performed by it during the Agreement, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The Local Government will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the Agreement covers any activity, project, or program set forth in Appendix B of 49 CFR Part 21. C. Solicitations for Subcontracts, Including Procurement of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by the Local Government for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor or supplier will be notifi obligations under this Agreement and the Acts and Regulations relative to Nondiscrimination on the grounds of race, color, or national origin. D. Information and Reports: The Local Government will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto, and will permit access to its books, records, accounts, other sources of information, and facilities as may be determined by the State or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations or directives. Where any information required of the Local Government is in the exclusive possession of another who fails or refuses to furnish this information, the Local Government will so certify to the State or the FHWA, as appropriate, and will set forth what efforts it has made to obtain the information. E. Sanctions for Noncompliance: In the event of the Local Government's noncompliance with the Nondiscrimination provisions of this Agreement, the State will impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: 1. withholding of payments to the Local Government under the Agreement until the Local Government complies and/or 2. cancelling, terminating, or suspending of the Agreement, in whole or in part. F. Incorporation of Provisions: The Local Government will include the provisions of paragraphs (A) through (F) in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The Local Government will take such action with respect to any subcontract or procurement as the State or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Local Government becomes involved in, or is threatened with, litigation with a subcontractor or supplier because of such direction, the Local Government may request the State to enter into such litigation to protect the interests of the State. In addition, the Local Government may request the United States to enter into such litigation to protect the interests of the United States. AFA LongGen Page 12 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS 26. Pertinent Non-Discrimination Authorities During the performance of this Agreement, each party, for itself, its assignees, and successors in interest agree to comply with the following nondiscrimination statutes and authorities; including but not limited to: A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (pro-hibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of federal or federal-aid programs and projects). C. Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), as amended, (prohibits discrimination on the basis of sex). D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.) as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27. E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age). F. Airport and Airway Improvement Act of 1982, (49 U.S.C. Chapter 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex). G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the def programs or activities of the federal-aid recipients, subrecipients and contractors, whether such programs or activities are federally funded or not). H. Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38. I. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex). J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations. K. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, the parties must take reasonable steps to ensure that AFA LongGen Page 13 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS LEP persons have meaningful access to the programs (70 Fed. Reg. at 74087 to 74100). L. Title IX of the Education Amendments of 1972, as amended, which prohibits the parties from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq.). 27. Disadvantaged Business Enterprise (DBE) Program Requirements If federal funds are used: A. The parties shall comply with the Disadvantaged Business Enterprise Program requirements established in 49 CFR Part 26. B. DBE program. C. The Local Government shall incorporate into its contracts with subproviders an consideration of the local market, project size, and nature of the goods or services to be acquired. The Local Government shall submit its proposed scope of services and quantity estimates to the State to allow the State to establish a DBE goal for each Local Government contract with a subprovider. The Local Government shall be responsible for documenting its actions. D. referenced in TxDOT Form 2395, Memorandum of Understanding Regarding the -Approved Disadvantaged Business Enterprise by Entity, and attachments found at web address http://ftp.dot.state.tx.us/pub/txdot- info/bop/dbe/mou/mou_attachments.pdf. E. The Local Government shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any U.S. Department of Transportation (DOT)-assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The Local Government shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non- discrimination in award and administration of DOT-assisted contracts. The proved by DOT, is incorporated by reference in this Agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Local Government of its failure to carry out its approved program, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). F. Each contract the Local Government signs with a contractor (and each subcontract the prime contractor signs with a sub-contractor) must include the following assurance: The contractor, sub-recipient, or sub-contractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure AFA LongGen Page 14 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS by the contractor to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement or such other remedy as the recipient deems appropriate. 28. Debarment Certifications If federal funds are used, the parties are prohibited from making any award at any tier to any party that is debarred or suspended or otherwise excluded from or ineligible for ecuting this Agreement, the Local Government certifies that it and its principals are not currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549 and further certifies that it will not do business with any party, to include principals, that is currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549. The parties to this Agreement shall require any party to a subcontract or purchase order awarded under this Agreement to certify its eligibility to receive federal funds and, when requested by the State, to furnish a copy of the certification. If state funds are used, the parties are prohibited from making any award to any party that is debarred under the Texas Administrative Code, Title 34, Part 1, Chapter 20, Subchapter G, Rule §20.585 and the Texas Administrative Code, Title 43, Part 1, Chapter 9, Subchapter G. 29. Lobbying Certification If federal funds are used, in executing this Agreement, each signatory certifies to the A. No federal appropriated funds have been paid or will be paid by or on behalf of the parties to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with federal contracts, grants, loans, or cooperative agreements, the signatory for the Local Government shall complete and submit the Federal Standard Form- nstructions. C. The parties shall require that the language of this certification shall be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and all sub-recipients shall certify and disclose accordingly. Submission of this AFA LongGen Page 15 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS certification is a prerequisite for making or entering into this transaction imposed by Title 31 U.S.C. §1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 30. Federal Funding Accountability and Transparency Act Requirements If federal funds are used, the following requirements apply: A. Any recipient of funds under this Agreement agrees to comply with the Federal Funding Accountability and Transparency Act (FFATA) and implementing regulations at 2 CFR Part 170, including Appendix A. This Agreement is subject to the following award terms: http://www.gpo.gov/fdsys/pkg/FR-2010-09- 14/pdf/2010-22705.pdf and http://www.gpo.gov/fdsys/pkg/FR-2010-09- 14/pdf/2010-22706.pdf. B. The Local Government agrees that it shall: 1. Obtain and provide to the State a System for Award Management (SAM) number (Federal Acquisition Regulation, Part 4, Sub-part 4.11) if this award provides more than $25,000 in federal funding. The SAM number may be obtained by visiting the SAM website whose address is: https://www.sam.gov/portal/public/SAM/ 2. Obtain and provide to the State a Data Universal Numbering System (DUNS) number, a unique nine-character number that allows federal government to track the distribution of federal money. The DUNS may be requested free of charge for all businesses and entities required to do so by visiting the Dun & Bradstreet (D&B) on-line registration website http://fedgov.dnb.com/webform; and 3. Report the total compensation and names of its top five executives to the State if: i. More than 80% of annual gross revenues are from the federal government, and those revenues are greater than $25,000,000; and ii. The compensation information is not already available through reporting to the U.S. Securities and Exchange Commission. 31. Single Audit Report If federal funds are used: A. The parties shall comply with the single audit report requirements stipulated in 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. If threshold expenditures of $750,000 or more are met during the fiscal year, the Local Government must submit a Single Audit Report and Management Letter (if applicable) to TxDOT's Compliance Division, 125 East 11th Street, Austin, TX 78701 or contact Txby email at singleaudits@txdot.gov. C. If expenditures are less than the threshold during the Local Government's fiscal year, the Local Government must submit a statement to TxDOT's Compliance AFA LongGen Page 16 of 17 Rev. 2/27/2024 TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS Division as follows: "We did not meet the $______ expenditure threshold and therefore, are not required to have a single audit performed for FY ______." D. For each year the Project remains open for federal funding expenditures, the Local Government will be responsible for filing a report or statement as described above. The required annual filing shall extend throughout the life of the Agreement, unless otherwise amended or the Project has been formally closed out and no charges have been incurred within the current fiscal year. 32. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this Agreement on behalf of the entity represented. Each party is signing this A THE STATE OF TEXAS THE LOCAL GOVERNMENT Signature Signature Typed or Printed Name Typed or Printed Name Typed or Printed Title Typed or Printed Title Date Date AFA LongGen Page 17 of 17 Rev. 2/27/2024 TxDOT: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS ATTACHMENT A LOCATION MAP SHOWING PROJECT Page 1 of 1 AFA LongGen Attachment A TxDOT:: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA CSJs 0786-01-094 CFDA Title Highway Planning and Construction District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS ATTACHMENT B PROJECT BUDGET Construction costs will be allocated based on 90% Federal funding and 10% State funding until the Federal funding reaches the maximum obligated amount. The Local Government will then be responsible for all other costs including overruns. Description Total Federal State Participation Local Estimated Participation Participation Cost % Cost % Cost % Cost Engineering (by Local $35,000.00 0% $0 0% $0 100% $35,000.00 Government) Construction (by -$680,201.00 90% $612,180.90 10% $68,020.10 0% $0 State) Subtotal $715,201.00 $612,180.90 $68,020.10 $35,000.00 Environmental Direct $1.00 0% $0 0% $0 100% $1.00 State Costs Engineering Direct $1,250.00 0% $0 0% $0 100% $1,250.00 State Costs Right of Way Direct $1.00 0% $0 0% $0 100% $1.00 State Costs Utility Direct State $1.00 0% $0 0% $0 100% $1.00 Costs Construction Direct $42,716.00 0% $0 0% $0 100% $42,716.00 State Costs Subtotal $43,969.00 $0 $0 $43,969.00 Indirect State Costs $41,754.00 0% $0 100% $41,754.00 0% $0 (5.5%) TOTAL $800,924.00 $612,180.90 $109,774.10 $78,969.00 Initial payment by the Local Government to the State: $1,253.00. Payment by the Local Government to the State before construction: $42,716.00 Estimated total payment by the Local Government to the State $43,969.00 This is an estimate. The final amount of Local Government participation will be based on actual costs. Page 1 of 1 AFA LongGen Attachment B TxDOT: Federal Highway Administration: CCSJ # 0786-01-094 AFA ID Z00012410 CFDA No. 20.205 AFA 0786-01-094 CFDA Title Highway Planning and Construction CSJs District # 20 Code Chart 64# 03200 2025 HSIP (FM 364) INTERCONNECT Project Name AFA Not Used For Research & Development SIGNALS ATTACHMENT C RESOLUTION, ORDINANCE, OR COMMISSIONERS COURT ORDER Page 1 of 1 AFA LongGen Attachment C 5 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Miles Haynes, Interim Economic Development Manager MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider a Resolution authorizing the City Manager to enter into an Industrial District Agreement with Natgasoline LLC. BACKGROUND Natgasoline LLC is a world-scale methanol production facility located in Beaumont, Texas, operated as a joint venture between Proman USA of Houston and Methanex of Vancouver. Since beginning operations in June 2018, Natgasoline has become the largest and most efficient methanol production plant in the United States, generating more than 1.7 million metric tons annually. The facility represents a total capital investment of approximately $2 billion and supported more than 2,700 construction jobs during development, with 141 full-time positions currently in operation. The company’s existing Industrial District Agreement (IDA) is expiring, and Council is being asked to consider a resolution authorizing the City Manager to execute a renewed IDA with Natgasoline LLC. The proposed terms, similar to other IDA’s, include taxation at 80% of the City rate for Years 1–3 and 75% of the City rate for Years 4–7, continuing the City’s strategic partnership with Natgasoline LLC. FUNDING SOURCE Not applicable. RECOMMENDATION Council to approve the Resolution. ATTACHMENTS Proposed Agreement THE STATE OF TEXAS§ COUNTY OF JEFFERSON§ AGREEMENT This Agreement is made under the authority of § 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "City," and Natgasoline, LLC, a Texas limited liability company "Company." PREAMBLE WHEREAS, City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of City, such industrial district being known as City of Beaumont Industrial District (the "District"). WHEREAS, Company and/or its Affiliates (as hereinafter defined) owns and/or leases land and improvements which are part of the manufacturing and industrial facilities of Company and/or its Affiliates located within District, such land and improvements being more particularly described in Exhibit "A" attached hereto (the "Property"). WHEREAS, Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon City and benefits derived by Company by reason of being located immediately adjacent to City. Page 1 WHEREAS, Company and City desire to base the industrial district payment on assessed value to ensure equity among the companies located within the City of Beaumont Industrial District; In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I. COMPANY'S OBLIGATION 1.Commencing with calendar year 2026 and each calendar year thereafter for the duration of this Agreement, the Company will pay the City a certain sum which will be computed on the Assessed Value of the Company’s facilities and property having taxable situs within the City of Beaumont Industrial District (“the Properties”). 2.By the term "Assessed Value" means the 100% valuation of existing Company property as determined by the Jefferson County Appraisal District for the previous tax year. 3.The term "Assumed City Taxes Due" means the number obtained by the following formula: Assessed Value / 100 x Current City Tax Rate = Assumed City Tax Due 4.. Payment Procedures Page 2 The procedures for determining and making such payments shall be as follows: (a) The payment for 2026 shall be due and payable on or before February 1, 2026, and calculated as follows: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate= Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = Each October thereafter, the Chief Financial Officer shall obtain the most recent Assessed Values as set by the Jefferson Central Appraisal District for the Company's properties, real, personal, and mixed, having taxable situs within the City of Beaumont Industrial District; for example, in October 2026, the 2026 Assessed Values shall be used for the February 1, 2027, payment. This Assessed Value shall be used in the calculation of the payment. If the Assessed Values forthe period required are in question and/or under litigation with the Jefferson Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. Page 3 (b)After the Assessed Value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2026-2028 calendar year payment shall be 80% of assumed City taxes due. The 2029-2031 payment shall be 75% of assumed City taxes due. (c)City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final, and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ARTICLE II. PROPERTY COVERED BY AGREEMENT This Agreement will reflect the intention of the parties hereto that this Agreement shall govern and affect the properties of Company and/or its Affiliates (facilities, real, personal, and mixed) located on the Property more particularly described in Exhibit "A", Page 4 which are within the extra-territorial jurisdiction of the City of Beaumont. "Affiliates" shall mean any entity owned entirely or in part by Company. ARTICLE III. SALE BY COMPANY (a)Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. (b)Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Page 5 ARTICLE IV. CITY'S OBLIGATIONS 1.City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the Agreement except as follows: (a)If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with state law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation becomes final with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1st of said year. (b)In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be Page 6 necessary or advisable under the circumstances with all costs of such action being borne equally by the City and by the said Company or companies with Company's portion allocated on the basis of Assessed Values. 2.The City further agrees that during the term of this Agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3.It is understood and agreed that during the term of this Agreement or any renewals thereof, City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V. TERMINATION FOR BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific Page 7 performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent," "affiliates" and to any properties owned or acquired by said parent and affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its parent and/or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII. TERM OF AGREEMENT The term of this Agreement shall be for seven years, expiring ____________. Page 8 NOTICES Any notice provided for in this Agreement, or which may otherwise be required by law shall be given in writing to the parties hereto by certified mail addressed as follows: TO CITYTO COMPANY City of BeaumontCompany Attn: City ManagerAddress 801 Main StreetCity, Texas Zip Beaumont, Texas 77704 IN WITNESS THEREOF, this Agreement, consisting of pages plus Exhibit "A" is executed in duplicate counterparts as of this _ __ day of , 2025. CITY OF BEAUMONT, TEXAS By:________________________________ City Manager ATTEST: _______________________________ Tina Broussard City Clerk NATGASOLINE, LLC By:________________________________ ATTEST: ________________________________ Page 9 EXHIBIT “A” The real property shall be described as: Page 10 6 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Miles Haynes, Interim Economic Development Manager MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a Resolution authorizing the City Manager to enter into an Industrial District Agreement with Air Liquide Large Industries US L.P. BACKGROUND Air Liquide Large Industries US L.P. is a leading global provider of industrial gases and technologies, supporting manufacturing, energy, and chemical operations throughout the region, including its long-standing facility in Beaumont, Texas. The company plays a key role in supplying hydrogen, oxygen, and other essential gases to major industrial partners, contributing to local economic activity and regional industrial stability. Air Liquide’s existing Industrial District Agreement (IDA) with the City is expiring, and Council is being asked to consider renewal of the agreement. The proposed terms include a tax rate set at 80% of the City rate for Years 1–3 and 75% of the City rate for Years 4–7, continuing the City’s partnership with a core industrial operator that supports employment, capital investment, and sustained industrial development in Beaumont. FUNDING SOURCE Not applicable. RECOMMENDATION Approve the resolution. ATTACHMENTS Proposed Agreement THE STATE OF TEXAS§ COUNTY OF JEFFERSON§ AGREEMENT This Agreement is made under the authority of § 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "City," and Air Liquide Large Industries US L.P, a Delaware limited partnership, hereinafter called "Company." PREAMBLE WHEREAS, City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of City, such industrial district being known as City of Beaumont Industrial District (the "District"). WHEREAS, Company and/or its Affiliates (as hereinafter defined) owns and/or leases land and improvements which are part of the manufacturing and industrial facilities of Company and/or its Affiliates located within District, such land and improvements (the "Property"). WHEREAS, Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon City and benefits derived by Company by reason of being located immediately adjacent to City. Page 1 WHEREAS, Company and City desire to base the industrial district payment on assessed value to ensure equity among the companies. WHEREAS, City desires to encourage the addition of new improvements to the Company's property located within the City of Beaumont Industrial District; In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I. COMPANY'S OBLIGATION 1.The City of Beaumont granted Natgasoline, LLC 100% abatement for a term of 2015 through 2024, on all new construction and improvements to existing facilities on the herein described property. In November 2014, Natgasoline made a partial Assignment of the abatement to Company through which after executing a ground lease with Natgasoline, Company will construct, own, and operate an air separation unit (“ASU”) as part of Natgasoline’s methanol project. The estimated value of the ASU is $115 million. Such an assignment was allowed by the industrial district agreement between the City of Beaumont and Natgasoline. Such new construction and improvements will be abated at 100% through 2024. 2.The abatement does not include the value of the existing property owned by Company and in the City’s extraterritorial jurisdiction related or unrelated to this new construction. Company shall be responsible for the payment in lieu of taxes based upon the existing value of the property and improvements currently existing on property Page 2 leased from Natgasoline or any other unrelated property in the ETJ as determined by the Jefferson County Appraisal District. st 3. Company will make an annual payment to City on or before February 1 of each such year computed based on 100% of the Assessed Value of the Company's facilities and property, real, personal, and mixed, located on Company's land covered by this Agreement (herein "the property") as provided herein (the "Annual Payment") .Upon expiration of the abatement period, the Annual Payment shall include all property covered by this Agreement. 4."Assessed Value" means the 100% valuation of Company Property and improvements thereon as determined by the Jefferson County Appraisal District for the previous tax year. 5."Assumed City Taxes Due" means the number obtained by the following formula: Assessed Value Less Improvement Value Subject to Abatement / 100 x Current City Tax Rate = Assumed City Tax Due 6.In October of each year the Finance Officer for City shall obtain the most recent Assessed Value as set by the Jefferson County Tax Appraisal District and such valuation shall be used for the Annual Payment due the following February; by way of Page 3 example, October 2015 Assessed Values would be used for the February 1, 2016 payment. If the assessed values are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. 7. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2026 shall be due and payable on or before February 1, 2026, and calculated as follows: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate= Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = Each October thereafter, the Chief Financial Officer shall obtain the most recent Assessed Values as set by the Jefferson Central Appraisal District for the Company's properties, real, personal, and mixed, having taxable situs within the City of Beaumont Industrial District; for example, in October 2026, the 2026 Page 4 Assessed Values shall be used for the February 1, 2027, payment. This Assessed Value shall be used in the calculation of the payment. If the Assessed Values for the period required are in question and/or under litigation with the Jefferson Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b)After the Assessed Value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2026-2028 calendar year payment shall be 80% of assumed City taxes due. The 2029-2031 payment shall be 75% of assumed City taxes due. (c)City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final, and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, Page 5 interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent a)City shall bill Company for payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to City had Company been in the city limits of City will be recaptured and paid to City within 60 days of any such event. ARTICLE II. PROPERTY COVERED BY AGREEMENT This Agreement will reflect the intention of the parties hereto that this Agreement shall govern and affect the properties of Company and/or its Affiliates (facilities, real, personal, and mixed) located on the Property more particularly described in Exhibit "A", which are within the extra-territorial jurisdiction of the City of Beaumont. "Affiliates" shall mean any entity owned entirely or in part by Company. ARTICLE III. SALE BY COMPANY Page 6 (a)Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. (b)Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. ARTICLE IV. CITY'S OBLIGATIONS 1.City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the Agreement except as follows: Page 7 (a)If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with state law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation becomes final with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1st of said year. (b)In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all costs of such action being borne equally by the City and by the said Company or companies with Company's portion allocated on the basis of Assessed Values. 2.The City further agrees that during the term of this Agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, Page 8 electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3.It is understood and agreed that during the term of this Agreement or any renewals thereof, City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V. TERMINATION FOR BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI. AFFILIATES Page 9 The benefits accruing to Company under this Agreement shall also extend to Company’s "parent," "affiliates" and to any properties owned or acquired by said parent and affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its parent and/or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII. TERM OF AGREEMENT The term of this Agreement shall be for nine (9) years, expiring December 31, 2024. NOTICES Any notice provided for in this Agreement, or which may otherwise be required by law shall be given in writing to the parties hereto by certified mail addressed as follows: TO CITYTO COMPANY Page 10 City of BeaumontAir Liquide Large Industries US L.P. Attn: City ManagerAttn: 801 Main Street Property Tax Beaumont, Texas 77704PO Box 460149 Houston, Texas 77056-8149 IN WITNESS THEREOF, this Agreement, consisting of ten pages plus Exhibit "A" is executed in duplicate counterparts as of this _ __ day of , 2017. City of Beaumont By:________________________________ City Manager ATTEST: ___________________________ Tina Broussard City Clerk Air Liquide Large Industries US L.P By:________________________________ ATTEST: ________________________________ Page 11 Page 11 Page 12 7 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works MEETING DATE:December 16, 2025 REQUESTED ACTION:Council consider a resolution authorizing the City Manager to execute Change Order No. 1 to the contract with StructureGuard, LLC, for the Cattail Marsh Wetlands Outfall Piling Rehabilitation Project. BACKGROUND On July 29, 2025, by Resolution No. 25-165, City Council awarded a contract to StructureGuard, LLC, of Austin, in the amount of $312,503.55, for the Cattail Marsh Wetlands Outfall Piling Rehabilitation Project. Proposed Change Order No. 1, in the amount of $59,948.82, is needed to due to the condition of the final three pilings uncovered during excavation. These pilings were found to be significantly deteriorated and could not be repaired using the original design. The revised scope includes removal of the failed pile sections and installation of new reinforced concrete pile elements and footings, as well as the associated steel plates and I-beam components specified in the engineering drawings. Additional work includes concrete placement, reinforcement, carbon-fiber wrapping, protective coating, and the materials, fabrication, labor, and lodging required to complete the repairs. An additional fourteen (14) calendar days are requested to perform this work. If approved, Change Order No. 1 will result in a new contract amount of $372,452.37. FUNDING SOURCE Water Revenue Bonds. RECOMMENDATION Approval of the resolution. ATTACHMENTS CO1 Cattail Marsh Wetlands Outfall Piling Rehabilitation 8 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Bridgette Evick, CPA, Chief Financial Officer MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider amending an ordinance providing for the reimbursement of capital expenditures incurred prior to the closing of financing. BACKGROUND The FY 2026 budget included the order of thirty (30) pieces of fleet equipment. The FY 2026 budget was approved by Council on September 16, 2025. The approved amount for financing totaled $3,503,925. The purpose of the amendment is to add the replacement of a tub grinder for the landfill. The purpose of this tub grinder is to grind down all the natural waste (trees, limbs, shrubs, etc.) to a mulch size biproduct that is then given away to any Beaumont resident that wants it for free. The landfill is required to report annually the tonnage reduced by use of a tub grinder to the Texas Commission on Environmental Quality (TCEQ). The amended approved amount for financing totals $4,248,925. Due to varying lead times for fleet equipment, payment for certain items may occur prior to receiving the proceeds of financing. A reimbursement ordinance is warranted to allow the City to reimburse itself for the equipment out of the financing proceeds. FUNDING SOURCE The debt proceeds related to this financing will be budgeted in the Capital Reserve, Solid Waste and Debt Service Funds for the duration of lease payments. RECOMMENDATION Approval of the ordinance ATTACHMENTS FY 2026 Fleet Request CITY OF BEAUMONT, TEXAS ORDINANCE NO. 2025-__________ ORDINANCE DECLARING AN INTENT OF THE CITY TO REIMBURSE ITSELF FROM PROCEEDS OF GENERAL OBLIGATIONS EXPECTED TO BE ISSUED BY THE CITY FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH THE CITY'S FINANCING OF FLEET EQUIPMENT WHEREAS, the City pursuant to Section 1.150-2 of the Treasury Regulations desires to reimburse itself from proceeds of certain general obligations reasonably expected to be issued by the City in connection with the City’s financing of certain fleet equipment (collectively, the “Fleet”) in one or more series in an aggregate maximum principal amount not to exceed $5,000,000; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: Section 1. The City Council hereby finds and adopts the recitals set forth above. Section 2. The City hereby declares its intention to issue its general obligations to reimburse itself for various costs and expenditures paid in connection with the Fleet, in an aggregate principal amount not to exceed $5,000,000 for the expenditures described in the recitals hereof. The City has paid for, and reasonably expects that it will pay for, such costs and expenditures in connection with the Fleet from monies on deposit in the Capital Reserve Fund, which is used to purchase property and equipment with an individual cost greater than $10,000; buildings and improvements with an individual cost greater than $50,000; and infrastructure with an individual cost greater than $150,000 and future funds designated for such purpose Section 3. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or enforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. Section 4. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City for the #529533176_v1 time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. All prior orders, resolutions, and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. ADOPTED AND APPROVED the ____ day of ______, 2025. Mayor, City of Beaumont City Secretary, City of Beaumont #529533176_v1 9 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Miles Haynes, Interim Economic Development Manager MEETING DATE:December 16, 2025 REQUESTED ACTION:Consider approval of an amendment to ordinance 08-015 to modify the boundaries of the Neighborhood Empowerment Zone Number Two. BACKGROUND The City of Beaumont is proposing an amendment to Ordinance 08-015 to expand the boundaries of Neighborhood Empowerment Zone (NEZ) #2, furthering the City’s commitment to supporting reinvestment and revitalization within targeted neighborhoods. The NEZ Program was established to promote development, improve housing conditions, stimulate economic activity, and enhance the overall quality of life for residents. Within designated NEZ areas, eligible projects may receive incentives such as fee waivers, expedited permitting, removal of City liens, and abatement of City property taxes for up to seven years, helping reduce barriers to redevelopment and encouraging both residential and commercial investment. Expanding NEZ #2 will extend these benefits to additional properties, enabling more opportunities for rehabilitation, new construction, homeownership, and small business growth. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Proposed Neighborhood Empowerment Zone Number Two. Description Neighborhood Empowerment Zone Policy Previously adopted Neighborhood Empowerment Zone ordinances City of Beaumont Neighborhood Empowerment Zone Incentive Policy Program Goals: It is the City of Beaumont's goal to promote development within its Neighborhood Empowerment Zones in an effort to improve the local economy and enhance the quality of life for its citizens. Insofar as these goals are served by enhancing the value of the local tax base and increasing economic opportunities, the City of Beaumont will give consideration to providing the following incentives for development within Neighborhood Empowerment Zones. Definitions: A. Abatement: full or partial exemption for ad valorem taxes of eligible properties in a reinvestment zone designated as such for economic development purposes. B. Agreement: a contractual agreement between a property owner and a taxing jurisdiction for the purpose of a tax abatement. C. Base Year Value: the assessed value of either the applicant's real property and improvements located in a designated reinvestment zone on January 1 of the year prior to the execution of the agreement plus the agreed upon value of any property improvements made after January 1 of that year but before the execution of the agreement, and/or the assessed value of any tangible personal property located on the owner's real property on January 1 of the year prior to the abatement period covered by the agreement. D. Facility: property improvements completed or in the process of construction which together comprise an integral whole. E. Incremental Value: the amount of assessed value of the project that is in addition to the . F. Neighborhood Empowerment Zone: is an area designated as such for the purpose of providing economic incentives, including a tax abatement, as authorized by the City of Beaumont in accordance with Texas Local Government Code Annotated Section 378 as amended. G. Real Property: area of land defined by legal description as being owned by the person applying for a tax abatement, including any improvements thereto, which is to be 1 improved and valued for property tax purposes, and which is to be included in the Neighborhood Empowerment Zone. H. Substantial Investment: a project deemed as an eligible facility under this policy, that exceeds $5,000,000 in capital investment. Program Policy: It is the policy of the City of Beaumont that consideration will be provided in accordance with the guidelines, criteria and procedures outlined in this document. This policy applies to the owners of real property. Project consideration will include the potential impact of the reinvestment project on the immediate and surrounding area. A. Authorized Facility : Neighborhood Empowerment Zone Incentives may be granted within a Neighborhood Empowerment Zone for new construction or renovation of single- family uses for investments of $50,000 or greater and may be granted for all other uses for investment of $75,000 or greater. B. Eligible Property : Neighborhood Empowerment Zone Incentives may be granted for new construction or renovation of owner-occupied single-family homes, office, retail, hotel and meeting facilities, restaurant and multi-family residential facilities within a Neighborhood Empowerment Zone, designated by the City Council of the City of Beaumont, Texas. C. No incentives shall be granted for development resulting from the relocation of an eligible facility from one area of the city to within the Neighborhood Empowerment Zone, excepting projects s. Procedural Guidelines: Any person, partnership, organization, corporation or other entity desiring that the City of Beaumont consider providing Neighborhood Empowerment Zone incentives shall be required to comply with the following procedural guidelines. No representations made herein considered binding unless and until approved by the City of Beaumont City Council. Preliminary Application: Applicants shall submit Application for Neighborhood Empowerment Zone Development Incentivesves to the Community Development Department of the City of Beaumont, 801 Main Street, Beaumont, Texas 77701. 2 Consideration of the Application: A. The City Manager will consider requests for incentives in accordance with these policies, pursuant to Chapter 378 of the Texas Local Government Code. Additional information may be requested as needed. B. The City Council may enter into an agreement that outlines the terms and conditions between the City and the applicant, and governs the provision of the incentives. Inspection of the Project: During the term of such agreement, the City of Beaumont will have the right to inspect the project facility during regular business hours to ensure compliance with the agreement and accuracy of the owner certification. Recapture: If a project is not completed as specified, or if the terms of the incentive agreement are not met, the City has the right to cancel or amend the incentive agreement and all previously waived fees and abated taxes shall become due to the City and liens may be reattached. Effect of Sale, assignment or lease of property: No incentive rights may be sold or assigned without the approval of the City Council. Any sale, assignment or lease of the property may result in execution of the recapture provision, as outlined above. Types of Incentives Available: Building Fee Waivers The Building Construction Fee Waiver Program affords property owners an exemption from planning and building fees associated with new construction or renovation and occupancy of eligible facilities within the target area. Expedited Permit Reviews: In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the Community Development Department is committed to assisting applicants through the planning and permit review process as quickly as possible. 3 Lien Waivers In order to render properties with Neighborhood Empowerment Zones more marketable, the Lien Waiver Program affords property owners a release of liens attached to properties as the result of demolitions or expenditures associated with cutting high grass. Release of such liens would only be allowed in conjunction with new construction or renovation of eligible facilities within the target area. Construction Tax Abatement The Construction Tax Abatement Program is an economic development tool designed to provide incentives for the new construction or renovation of single-family homes, office, retail, restaurant and multi-family residential facilities within a Neighborhood Empowerment Zone. The Construction Tax Abatement Program is intended to contribute to area development by attracting additional capital and human investment to the area as well as additional residents to support economic development activities within the area. Value of Abatements: authorized facilities may be granted a municipal tax abatement on all or a portion of the increased taxable value of eligible property over the base year value for a period not to exceed three (3) years, except as outlined below. Tax Abatement Program Guidelines: The eligibility requirements are as follows: Investment Municipal Tax Abatement Schedule $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial st 1 Year $75,000 & up for all other uses Investments relocating within the City. $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial nd 2 Year $75,000 & up for all other uses Investments relocating within the City. $50,000 & up for residential uses and 100%; or 100% of the incremental value for Substantial rd 3 Year $75,000 & up for all other uses Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for th 4 Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for th 5 Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for th 6 Year use Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for th 7 Year use Substantial Investments relocating within the City. 4 Abatement Program Considerations: A. The final valuation determined by the Jefferson County Appraisal District will be used to determine the actual yearly tax abatement exemption. B. The tax abatement shall be granted only to the owner of the property. C. No tax abatement exemption shall be effective until the applicant has met all of the eligibility requirements contained in the guidelines and policies, state law, and City of Beaumont codes. D. There shall be no retroactive tax abatement exemptions all tax abatement exemptions become effective only on or after the date the City Council approves the tax abatement agreement. E. The applicant shall agree to hold the City of Beaumont, its agents, employees and public officials harmless and pay all attorneys' fees that are generated by any dispute regarding the tax abatement agreement. F. Personal and or real property identified before the period covered by the abatement agreement will not be eligible for abatement. 5 Neighborhood Empowerment Zone Two Meets & Bounds (Amended 2025) STARTING from a Point of Beginning (POB) at the intersection of the east right-of-way line of the BNSF railroad right-of-way and the centerline of Washington Boulevard and going in a northeasterly direction along said railroad right-of-way until reaching the centerline of drainage canal 116 belonging to Drainage District Six; hence turning and extending easterly along the centerline of said drainage canal 116 until reaching the western right-of-way line of 7th Street; hence northeasterly across 7th Street to a point on the east right-of-way line of 7th Street at the northern right-of-way line of Terrell Avenue; hence easterly along said northern right-of-way line of Terrell Avenue to 4th Street and continuing on the same course until reaching the eastern right-of-way line of San Jacinto Street; hence south along said eastern right-of-way line of San Jacinto Street to the northern right-of-way line of Rockwell Street; hence easterly along said northern right-of-way line of Rockwell Street until reaching the western right-of-way line of Goliad Street; hence south along the western right-of-way line of Goliad Street until reaching the south right-of-way line of Washington Boulevard; hence turning and extending east along the south right-of-way line of Washington Boulevard until reaching the western right-of-way line of Houston Street; hence turning and extending south along the western right-of-way line of Houston Street to the southern right-of-way line of Southerland Street; hence turning and extending east along the southern right-of-way line of Southerland Street to the western right-of-way line of Houston Street, hence continuing south along the western right-of-way line of Houston Street to the southern right-of-way line of Lela Street; hence turning and continuing east along the southern right-of-way line of Lela Street to the western right-of-way line of Usan Street; hence turning and extending south along the western right-of-way line of Usan Street, to the northern right-of-way line of Virginia Street; hence turning west and extending west along the northern right-of-way line of Virginia Street to the western right-of-way line of thth 4 Street; hence turning and extending south along the western right-of-way line of 4 Street to the northern right-of-way line of Cardinal Drive (U.S. 69); hence westerly along the northern right-of-way line of Cardinal Drive until reaching the centerline of the right- of-way of Washington Boulevard; hence turning and extending East along the centerline of the right-of-way line of Washington Boulevard to the intersection of the eastern right- of-way line of the BNSF railroad right-of-way and the centerline of Washington Boulevard, the Point of Beginning (POB). PUBLIC HEARING Council to conduct a Public Hearing to discuss the conduct of Councilmember Williams and Councilmember Hilliard for alleged violations of the City Charter 10 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider the censure of Councilmember Michael Williams. BACKGROUND At the request of Councilmember Sherwood, with a second from Councilmember Durio, a Public Hearing was held to determine if statements made by Councilmember Williams on social media violated the City Charter. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS 11 TO:City Council FROM:Kenneth R. Williams, City Manager PREPARED BY:Sharae Reed, City Attorney MEETING DATE:December 16, 2025 REQUESTED ACTION:Council to consider the censure of Councilmember Joseph Hilliard. BACKGROUND At the request of Councilmember Sherwood, with a second from Councilmember Durio, a Public Hearing was held to determine if the actions and/or statements made by Councilmember Hilliard on social media violated the City Charter. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS WORK SESSION Council to Review and Discuss 311 Overview