REGULAR AGENDA

[1. Council consider a resolution approving Chapter 380 incentives for economic development activities and authorizing the execution of a Chapter 380 economic development agreement with Beaumont 194 LLC for public infrastructure improvements to promote development along the Northwest Parkway and Pointe Parkway corridor.]

OPPOSED? THE MOTION IS CARRIED. MR. CITY MANAGER, MAY WE HAVE THE READING OF ITEM NUMBER ONE? YES, SIR. MAYOR AND COUNCIL, ITEM NUMBER ONE IS TO CONSIDER A RESOLUTION APPROVING CHAPTER 380 INCENTIVE INCENTIVES FOR ECONOMIC DEVELOPMENT ACTIVITIES AND AUTHORIZING THE EXECUTION OF A CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT WITH BEAUMONT 194, LLC FOR PUBLIC INFRASTRUCTURE IMPROVEMENTS TO PROMOTE DEVELOPMENT ALONG THE NORTHWEST PARKWAY AND POINT PARKWAY CORRIDOR. THE CITY OF BEAUMONT HAS BEEN APPROACHED BY BEAUMONT 194 LLC WITH A PROPOSAL TO DEVELOP AN APPROXIMATELY 87 ACRE PLANNED UNIT DEVELOPMENT COMMUNITY LOCATED AT THE INTERSECTION OF NORTHWEST PARKWAY AND POINT PARKWAY. THE DEVELOPER HAS COMMITTED TO CONSTRUCTING THE PUBLIC INFRASTRUCTURE IMPROVEMENTS DESCRIBED IN EXHIBIT B OF THE PROPOSED AGREEMENT. THESE IMPROVEMENTS ARE ANTICIPATED TO INCREASE THE CITY'S AD VALOREM TAX BASE, SUPPORT POPULATION GROWTH AND ENHANCE THE VIABILITY OF FUTURE MIXED USE DEVELOPMENT ALONG NORTHWEST PARKWAY CORRIDOR. THESE PUBLIC BENEFITS WOULD NOT ONLY REASONABLY OCCUR IN THE ABSENCE OF THE PROPOSED INFRASTRUCTURE IMPROVEMENTS AND ASSOCIATED AGREEMENT, THE CITY OF BEAUMONT HAS DISCUSSED WITH THE DEVELOPERS THE FOLLOWING INCENTIVES IN KEEPING WITH ITS CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM. THE POLICIES ARE AS FOLLOWS. CONDITION ONE IS THAT 75% OF THE AD VALOREM TAXES RECEIVED BY THE CITY FOR EACH HOME SHALL BE REIMBURSED IN GRANT PAYMENTS TO THE DEVELOPER FOR A PERIOD NOT TO EXCEED 15 YEARS, OR UNTIL 100% OF THE FINAL ESTIMATE IS REIMBURSED TO THE DEVELOPER, WHICHEVER IS LESS. IN RETURN, THE DEVELOPER WILL CONSTRUCT THE FOLLOWING PUBLIC INFRASTRUCTURE IMPROVEMENTS WITHIN THE TIME FRAME OUTLINED IN EXHIBIT B OF THE ATTACHED AGREEMENT. FIRST WOULD BE A REGIONAL LIFT STATION, SO THE IMPROVEMENT HERE WOULD NOT ONLY SERVE THIS PROPOSED DEVELOPMENT, BUT BEYOND NUMBER TWO WOULD BE OFF SITE DRAINAGE IMPROVEMENTS.

AND NUMBER THREE, CONSTRUCT A PORTION OF POINT PARKWAY NORTH. ADDITIONALLY, THE AGREEMENT REQUIRES THE DEVELOPER TO MAKE A GOOD FAITH EFFORT TO USE QUALIFIED LOCAL VENDORS, CONTRACTORS, AND SERVICE PROVIDERS FOR THE PROJECT WHENEVER FEASIBLE AND LEGALLY PERMISSIBLE. BASED ON THE ATTACHED, THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS RESOLUTION. THANK YOU. IS THERE A MOTION FOR APPROVAL OF ITEM NUMBER ONE? SO MOVED. SECOND, THERE IS A MOTION IN A SECOND FOR APPROVAL OF ITEM NUMBER ONE. IS THERE ANY DISCUSSION, COUNCILMAN DARIA, DID YOU TURNED YOUR LIGHT ON? OKAY. IF THERE'S NO DID YOU HAVE ANY DISCUSSION? YES. SO FIRST OF ALL, WELL DONE TO STAFF. THIS IS A TRUE ECONOMIC DEVELOPMENT PACKAGE THAT WAS BROUGHT TO US. IT'S MY UNDERSTANDING THAT UPON THE COMPLETION OF THE 400 ESTIMATED HOMES THAT WILL BE CONSTRUCTED, THAT WILL BE A TOTAL OF ABOUT $850,000 ANNUALLY IN TAX REVENUE FOR THE CITY. THERE'S AN OPPORTUNITY HERE FOR COMMERCIAL DEVELOPMENT ALONG NORTHWEST PARKWAY THAT ONE OF THE COMPLAINTS THAT I HEARD AND THAT I'VE HEARD WITHIN OUR COMMUNITY, IS THAT, YOU KNOW, THAT WAS PUSHED AS A BIG ECONOMIC DEVELOPMENT INCENTIVE FOR THE CITY. AND IT HASN'T REALLY. COME TO THE POTENTIAL THAT A LOT OF PEOPLE THOUGHT THAT IT WOULD. AND I THINK THAT THIS PROJECT IS A GREAT STEP IN THE RIGHT DIRECTION ON THAT PROJECT. ACHIEVING THE GOALS THAT WE HAD ORIGINALLY HOPED FOR THAT AREA.

IN ADDITION, JUST SO PEOPLE ARE CLEAR IN THE PUBLIC IS CLEAR. THIS REQUIRES THE DEVELOPER TO

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INVEST NEARLY $8 MILLION IN INFRASTRUCTURE, AND THE DEVELOPER WILL DO THAT WITH THEIR OWN MONEY AND WILL ONLY BE REIMBURSED AFTER PROPERTY TAXES FROM THIS SPECIFIC DEVELOPMENT, GENERATE THAT RETURN. SO THIS IS A WIN WIN FOR TAXPAYERS. WE ARE GETTING NEARLY 8 MILLION IN INFRASTRUCTURE IMPROVEMENTS, AND WE ONLY HAVE TO PAY THE DEVELOPER BACK THAT $8 MILLION IF AND ONLY IF THEY DEVELOP PROPERTIES THAT GENERATE TAX REVENUE, THAT ALLOWS FOR THAT REPAYMENT TO BE MADE. SO THIS IS, I THINK, A FIRST FOR OUR AREA. YOU SEE THESE TYPES OF DEVELOPMENTS OVER IN IN THE HOUSTON AREA AND OTHER PARTS OF THE STATE. SO I THINK THIS IS A GREAT THING. AND AGAIN, WELL DONE TO STAFF. WE APPRECIATE THE DEVELOPER WHO HAS SOUTHEAST TEXAS ROOTS COMING BACK TO INVEST IN THIS COMMUNITY. AND I LOOK FORWARD TO THE GREAT OPPORTUNITIES FOR THIS CITY AS A RESULT OF THIS PROJECT. THANK YOU. ANY OTHER QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER ONE, PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? THE MOTION IS CARRIED. WE'RE GOING TO WE'RE GOING TO GO TO ITEMS FIVE, SIX AND SEVEN, THEN GO BACK TO TWO. SO IF YOU WOULD READ ITEM

[5. Council consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2026, and authorizing the Mayor, City Manager, or Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof for both series and to execute all documents related to the sale of the Bonds.]

NUMBER FIVE. MR. CITY MANAGER. YES, SIR. MAYOR AND COUNCIL, ITEM NUMBER FIVE IS TO CONSIDER AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS. WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 2026 AND AUTHORIZING THE MAYOR, CITY MANAGER OR CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES AND TERMS THEREOF FOR BOTH SERIES AND EXECUTE ALL DOCUMENTS RELATED TO THE TO THE SALE OF THE BONDS. THE ADOPTED BUDGET FOR THE CURRENT FISCAL YEAR INCLUDES THE ISSUANCE OF DEBT TO PROVIDE FUNDING FOR THE EXPANSION, REPAIR, RENOVATION AND RELATED IMPROVEMENTS TO THE CITY'S WATERWORKS AND SEWER SYSTEM. THESE WATERWORKS AND SEWER INFRASTRUCTURE PROJECTS ARE ALSO INCLUDED IN THE ADOPTED COMMUNITY INVESTMENT PLAN, OR CIP. A TOTAL OF 34,650,000 IS REQUIRED TO COMPLETE THE WORK BUDGETED FOR FY 26. THIS ORDINANCE APPROVES THE ISSUANCE OF THE WATERWORKS AND SEWER SYSTEM REVENUE BONDS SERIES 2026 IN THE AMOUNT NOT TO EXCEED $34,650,000. THE ORDINANCE AUTHORIZES CITY STAFF TO EXECUTE THE FINAL PRICING DOCUMENTS. ONCE THE BONDS ARE SOLD AND THE CONDITIONS ARE MET AND IS DESIGNATED TO PROVIDE FLEXIBILITY IN TIMING AND EXECUTION. AS THE CITY ENTERS THE BOND MARKET, DELIVERY AND RECEIPT OF THE PROCEEDS BY THE CITY ARE EXPECTED IN JULY OF 2026, AND AGAIN, THESE BONDS WOULD BE SERVICED WITH THE WATER UTILITY FUND. THE ADMINISTRATION RECOMMENDS APPROVAL OF THE ORDINANCE. I WILL POINT OUT THAT WE DO HAVE OUR FINANCIAL ADVISOR DUSTY TRAILER, AS WELL AS OUR BOND COUNSEL, DEREK MITCHELL, WITH US TODAY. IN CASE WE HAVE ANY SPECIFIC QUESTIONS. OKAY. THANK YOU. IS THERE A MOTION FOR ITEM NUMBER FIVE? MOVE FOR APPROVAL? IS THERE A SECOND? WE HAVE A MOTION IN A SECOND FOR APPROVAL OF ITEM NUMBER FIVE. IS THERE ANY DISCUSSIONS OR QUESTIONS? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER FIVE. PLEASE SIGNIFY BY SAYING AYE. AYE. ANY

[6. Council consider an ordinance authorizing the issuance of City of Beaumont, Texas, Tax Note, Series 2026, and authorizing the Mayor, City Manager, or Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof for the tax note and to execute all documents related to the tax note.]

OPPOSED? THE MOTION IS CARRIED. MR. CITY MANAGER WOULD YOU TAKE US TITLE NUMBER SIX? ITEM NUMBER SIX IS TO CONSIDER AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS TAX NOTE SERIES 2026 AND AUTHORIZING THE MAYOR, CITY MANAGER OR CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES AND TERMS THEREOF FOR THE TAX NOTE AND TO EXECUTE ALL DOCUMENTS RELATED TO THE TAX NOTE. THE ADOPTED BUDGET FOR THE CURRENT FISCAL YEAR ALSO INCLUDES THE ISSUANCE OF DEBT FOR THE FINANCIAL FINANCING OF CERTAIN EQUIPMENT, AND TO PAY THE COSTS OF ISSUING OF THE OBLIGATION. A TOTAL OF $3,160,000 IS REQUIRED TO COMPLETE THE SALE OF THE OBLIGATION AND PURCHASE OF THE EQUIPMENT, THE EQUIPMENT TO BE FUNDED WITH THE TAX NOTE OBLIGATION, INCLUDES VARIOUS FLEET EQUIPMENT FOR MULTIPLE CITY DEPARTMENTS AND DIVISIONS, INCLUDING RECREATION PARKS, GREEN SPACE, TRAFFIC MANAGEMENT,

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EMS, FIRE, POLICE, ANIMAL CARE AND SOLID WASTE. THIS FUNDING FOR THE ISSUANCE OF THESE OBLIGATIONS IS INCLUDED IN THE CITY'S CURRENT FISCAL YEAR ADOPTED BUDGET. THIS ORDINANCE AGAIN APPROVES THE ISSUANCE OF THE TAX NOTE OBLIGATIONS IN THE AMOUNT OF $3,167,000. THE PRINCIPAL, THE FUNDING SOURCE FOR THIS PRINCIPAL AND INTEREST WOULD BE PAID BY THE DEBT SERVICE FUND, WHICH IS SUPPORTED BY PROPERTY TAXES. THE ADMINISTRATION IS RECOMMENDING APPROVAL OF THIS ORDINANCE. IS THERE A MOTION FOR ITEM NUMBER SIX? SO IS THERE A SECOND? SECOND, THERE IS A MOTION AND A SECOND FOR ITEM NUMBER SIX. IS THERE ANY DISCUSSION, COUNCILMAN TURNER? YES, MR. MANAGER, HAVE WE IS THIS SOMETHING THAT WE HAVE WE PUT THIS OFF BEFORE? IS THIS SOMETHING THAT WAS ALREADY BUDGETED? IT'S SOMETHING WE PUT OFF AND WE'RE BRINGING BACK FORWARD OR WAS ALREADY BUDGETED. THESE ARE FLEET PURCHASES THAT WE TYPICALLY WOULD USE CASH RESERVES FOR. YEAH, THAT'S WHAT I WAS WONDERING. WHY WOULDN'T I USE THIS IN FY 26? THE PLAN WAS TO BUDGET FOR THEM USING THIS TAX NOTE. SO IT'S IT'S NOT SOMETHING WE'VE TYPICALLY DONE, BUT IT IS SOMETHING NEW FOR US. OKAY. CAN SOMEBODY KIND OF EXPLAIN WHY WE THE BENEFIT OF GOING THIS ROUTE? OR IS THE REASON WE'RE GOING THIS ROUTE FROM WHAT WE TYPICALLY DO? WELL, I CAN ASK OUR CFO OR MR. ELLIS, PART OF IT WOULD BE, IN ESSENCE, IT IS A LOAN. AND SO INSTEAD OF PAYING CASH OUT OF POCKET, YOU WOULD YOU WOULD JUST BASICALLY DO THE DEBT SERVICE OVER MULTIPLE YEARS. BUT BRIDGET, DID YOU HAVE ANY. YEAH, THAT'S THAT'S CORRECT. WHAT MR. BOONE JUST EXPLAINED AT THE END OF LAST FISCAL YEAR, WHEN WE WERE PREPARING THE BUDGET, WE WERE LOOKING FOR WAYS TO SAVE MONEY IN THE BUDGET. SO INSTEAD OF PAYING, YOU KNOW, $3 MILLION IN CASH UP FRONT OR ACTUALLY WELL OVER 3 MILLION, WE DECIDED TO FINANCE IT, WHICH REQUIRES US TO PAY APPROXIMATELY 500,000 BACK PER YEAR OVER THE NEXT SEVEN YEARS. SO IT WAS A WAY TO SAVE MONEY IN THE BUDGET FOR THE CURRENT FISCAL YEAR.

UNDERSTOOD. IS IT AN INTEREST RATE ASSOCIATED TO THIS OR NO? SURE THERE IS. I KNOW IT AIN'T FREE. NEXT QUESTION. GOOD AFTERNOON, COUNCIL MEMBER. IS THE BASE OF THE BASE OF THE MICROPHONE STAND PROFESSIONAL I AM NOT. I ALMOST HAD IT. DUSTY TRAILER WITH RBC CAPITAL MARKETS. YOUR QUESTION, MR. TURNER, WAS ABOUT INTEREST RATE. THESE THESE TAX NOTES HAVE A MAXIMUM MATURITY OF SEVEN YEARS BY STATE LAW. AND THAT ACTUALLY GOES VERY WELL IN TERMS OF MATCHING THE USEFUL LIFE OF THE ASSET WITH THE THE INSTRUMENTS THAT ARE BEING USED TO FINANCE THEM. MORE THAN LIKELY WE WOULD EXPECT THE INTEREST RATE ON THESE, GIVEN THE SHORTER NATURE OF THESE, TO BE SOMEWHERE IN THE 4 TO 4.25%, IS IT POSSIBLE IF LET'S JUST SAY, YOU KNOW, THE ECONOMY CHANGES, THAT IT COULD BE REVISITED IF THE INTEREST RATE COULD BE LOWERED? WELL, ONE OF THE THINGS THAT YOU'RE DOING RIGHT NOW IS YOU'RE AUTHORIZING MOVING FORWARD WITH THIS ISSUANCE. SO RIGHT NOW WE ARE WORKING WITH CITY STAFF TO PREPARE TO ACTUALLY GO OUT INTO THE MARKET TO SELL THESE BONDS. SO THE AUTHORIZATION THAT COUNCIL IS GIVING RIGHT NOW ALLOWS FOR SOME FLEXIBILITY, RIGHT? IF IF INTEREST RATES COME DOWN, WE CAN TAKE ADVANTAGE OF THAT. IF INTEREST RATES START TO ESCALATE AND WE'RE SEEING THAT WE HAVE THE OPPORTUNITY TO JUMP IN HOPEFULLY BEFORE THEY ESCALATE TOO MUCH. SO YES, SIR.

AND, YOU KNOW, IN TERMS OF IT'S NOT EXACTLY THE QUESTION THAT WAS ASKED OF ME, BUT IN TERMS OF THE THE BUDGETING THIS VERSUS USING A NOTE OBLIGATION, RIGHT? BUDGETING THIS THIS YEAR LIKELY WOULD HAVE TAKEN $3.1 MILLION OUT OF YOUR GENERAL RESERVE FUND. RIGHT? DOING IT THROUGH A NOTE ACTUALLY TAKES THIS ITEM COMPLETELY OUT OF YOUR GENERAL RESERVE FUND, AND THE M AND O PORTION OF YOUR TAX RATE ALLEVIATES THAT EXPENSE FROM THE M PORTION OF THE TAX RATE, AND IT MOVES IT OVER TO THE INSIDE OF THE TAX RATE. AND IT AND IT KEEPS YOU FROM REDUCING YOUR YOUR GENERAL FUND BALANCE BY OVER 3 MILLION. YES, SIR. MR. CRENSHAW, HOW IS THIS DIFFERENT THAN JUST A REGULAR CO OR CERTIFICATE OF OBLIGATION? YEAH, IT'S A GREAT QUESTION.

THE DIFFERENCE IS, IS THAT BY WAY OF THE TAX NOTE, THE CITY IS LIMITED IN THE AMORTIZATION TO NOT MORE THAN SEVEN YEARS. A CERTIFICATE OF OBLIGATION COULD BY STATE LAW COULD ACTUALLY BE UP TO 40. NOW WE DON'T EVER DO THEM THAT LONG. BUT BUT STATE LAW WOULD ALLOW IT FOR UP TO 40.

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SO THE TAX NOTE STATE STATE LAW WILL NOT ALLOW YOU TO PAY IT BACK FOR A PERIOD OVER TEN YEARS, OVER SEVEN YEARS. SO IN REALITY, JUST IN LAYMAN'S TERMS, THIS IS A CERTIFICATE OF OBLIGATION WITH JUST A SHORTER REPAYMENT MORE OR LESS. OKAY. ALL RIGHT. COUNCILMAN DARIA.

YEAH. COULD YOU EXPLAIN FOR THE AUDIENCE AND EVERYBODY ELSE OUR BOND RATING, WHAT IT IS AND WHAT EXACTLY THAT MEANS? CERTAINLY. GOT A COUPLE NOTES ON ME TODAY. SO ON THE ON THE GENERAL OBLIGATION SIDE, RIGHT? THE SIDE THAT IS THE SIDE OF THE BONDS THAT ARE BACKED BY AD VALOREM TAXES, THE CITY'S BOND RATING BY STANDARD AND POOR'S IS A DOUBLE, A MINUS. IT'S A VERY, VERY HIGH BOND RATING, RIGHT. THE HIGHEST HIGHEST BOND RATING IS TRIPLE A. SO YOUR YOUR THREE NOTCHES BELOW THE HIGHEST BOND RATING THAT IS THAT IS AVAILABLE OUT THERE. SO THE DOUBLE A MINUS ALLOWS THE CITY TO GO OUT AND ACCESS THE CAPITAL MARKETS AND ACHIEVE VERY, VERY LOW INTEREST RATES. YOU'RE A VERY HIGH INVESTMENT GRADE BOND RATING BY THE BY THE RATING AGENCIES. AND SO THAT GIVES INVESTORS CONFIDENCE THAT WHEN THEY INVEST IN YOUR BONDS, THAT YOU'RE GOING TO PAY THEM BACK ON TIME AND IN FULL. SO YOU'RE ABLE TO ACCESS THE MARKET AT LOW INTEREST RATES. THANK YOU SIR. THESE ARE FIXED RATES. THESE WILL BE FIXED RATES. YES, SIR. ALL RIGHT. THANK YOU DUSTY. THANK YOU. I CAN TURN IT OFF. GOT THAT DOWN.

ALL RIGHT. IF THERE'S NO OTHER QUESTIONS OR DISCUSSIONS. ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER SIX, PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? THE MOTION IS CARRIED. MR. CITY

[7. Council consider an ordinance authorizing the issuance of City of Beaumont, General Obligation Improvement Bonds, Series 2026, and authorizing the Mayor, City Manager, or Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof and to execute all documents related to the sale of the Bonds.]

MANAGER, WOULD YOU TAKE US INTO ITEM NUMBER SEVEN, PLEASE, SIR? ITEM NUMBER SEVEN IS TO CONSIDER AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT GENERAL OBLIGATIONS IMPROVEMENT BONDS SERIES 2026 AND AUTHORIZING THE MAYOR, CITY MANAGER OR CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES AND TERMS THEREOF AND TO EXECUTE ALL DOCUMENTS RELATED TO THE SALE OF THE BONDS. IN NOVEMBER 2025, VOTERS APPROVED A GENERAL OBLIGATION BOND PROPOSITION TO FUND KEY INFRASTRUCTURE PROJECTS, INCLUDING CITYWIDE SIDEWALK INITIATIVE AND STREETS AND DRAINAGE IMPROVEMENTS. A TOTAL OF $38,750,000 IS REQUIRED TO FUND THE BUDGETED FIRST TWO YEARS OF THE APPROVED GENERAL OBLIGATION BOND PROJECTS. THIS ORDINANCE APPROVES THE ISSUANCE OF THE G.O. IMPROVEMENT BONDS SERIES 2026, AN AMOUNT NOT TO EXCEED 38,750,000. FURTHER AUTHORIZES THE CITY STAFF TO FINALIZE AND EXECUTE PRICING DOCUMENTS UPON THE SALE OF THE BONDS, SUBJECT TO MEETING SPECIFIED CONDITIONS. THE ORDINANCE IS DESIGNED TO PROVIDE FLEXIBILITY IN TIMING AND EXECUTION AS THE CITY ENTERS THE BOND MARKET. DELIVERY AND RECEIVE THE PROCEEDS BY THE CITY ARE EXPECTED IN JULY OF 2026. THE FUNDING SOURCE. ALL DEBT AND OTHER EXPENSES RELATED TO THE G.O. BOND SHALL BE INCURRED BY THE DEBT SERVICE FUND. THE ADMINISTRATION IS RECOMMENDING APPROVAL OF THIS ORDINANCE. THANK YOU, MR. MANAGER. IS THERE A MOTION FOR ITEM NUMBER SEVEN? SO MOVE. IS THERE A SECOND? SECOND. IS THERE ANY QUESTIONS OR DISCUSSION ON ITEM NUMBER SEVEN? COUNCILMAN. OH, I, I, I DON'T MIND. I JUST HAD A QUICK QUESTION. I NOTICED THAT SAY THIS IS FOR THE FIRST TWO YEARS TO FUND THE BUDGETED FIRST TWO YEARS. HOW MUCH IS THE TOTAL FOR THE WHOLE DEAL? THE TOTAL, I BELIEVE IS 58.

YEAH. OKAY. AND IT'S GOING TO JUST BE DIVIDED UP INTO TWO YEAR PROJECTS OR THREE, OR HOW IS IT GOING TO BE DIVIDED UP. SO WE'LL ASK MR. VILLARREAL, OUR PUBLIC WORKS DIRECTOR, BECAUSE I KNOW SHE'S BEEN MEETING WITH OUR BOND ADVISORY COMMITTEE IN TERMS OF ISSUING, GETTING THESE BONDS ISSUED, AS WELL AS SOME TIMELINES. SO, MOLLY, DO YOU HAVE SOME FEEDBACK? SO FOR THE FIRST TWO YEARS, WE'RE EITHER GOING TO BE DOING CONSTRUCTION WORK ON THE STORM SEWER CLEANING OR THE WEST LUCAS STORM SEWER REHABILITATION. THOSE WERE TWO OF THE PROJECTS THAT WERE CLOSEST TO SHOVEL READY OR ARE ALREADY IN MOTION. AND THEN WE ARE ENGAGING THE DESIGN ENGINEERS FOR THE DESIGN OF THE SIDEWALK MASTER PLAN AND THE ROAD PROJECTS. AND SO THOSE WILL ALL ALSO BE IN MOTION. SO AS SOON AS THOSE PROJECTS COME ONLINE AND READY TO GO, WE CAN GO TO CONSTRUCTION RIGHT AWAY SO THAT OUR CITIZENS CAN SEE THE RESULTS OF THAT WORK. SO AS THEY AS THEY AS THEY'RE GETTING READY TO START, YOU COME BACK TO COUNCIL WITH ANOTHER, GET APPROVAL AGAIN EACH TIME. YES, SIR. YOU'LL SEE THE PROJECTS COME THROUGH SIMILAR TO ALL THE OTHER PROJECTS AS WE GO THROUGH THE AWARDS OF FOR THE CONTRACTS,

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FOR THE ENGINEERS, FOR THE CONTRACTORS, ALL OF THAT PROCESS WILL REMAIN THE SAME.

AND WE'LL BE BRINGING THAT FORWARD FORWARD TO YOU ALL. IN ADDITION TO OUR QUARTERLY MEMO UPDATES OF THE STATUS OF OUR PROGRESS. OKAY. THANK YOU. YOU'RE WELCOME. COUNCILMAN CRENSHAW. SO, MR. CITY MANAGER, JUST FOR CLARIFICATION, THIS WILL RAISE TAX RATES FOR HOMEOWNERS PROPERTY TAXES, RIGHT? YES, SIR. AND THIS IS A VOTER APPROVED TAX INCREASE.

YES, SIR. AND AS A RESULT OF THESE SPECIFIC DEBT OBLIGATIONS THAT WE'RE ABOUT TO APPROVE, WHAT IS THE PER $100 VALUATION OF A HOME ESTIMATED TO INCREASE AS A RESULT OF THESE OBLIGATIONS? SO LET ME ASK DUSTY TO COME BACK UP, BECAUSE I KNOW DURING THE BOND RUN UP TO THE BOND, WE HAD ESTIMATES FOR $150,000 HOMES. THAT WAY PEOPLE COULD APPROXIMATE WHAT THAT'S GOING TO LOOK LIKE IF APPROVED. SO, DUSTY, DO YOU HAVE THOSE? YES, SIR. SIR.

THERE WE GO, I GET IT. SO WHEN PROPOSITION A WAS WAS PUT ON THE BALLOT THIS YEAR, THE 58,000,162, THE ESTIMATED TAX RATE INCREASE ASSOCIATED WITH THE FULL AMOUNT OF PROPOSITION EIGHT WAS AN INCREASE IN INS TAX RATE OF 2.4 $0.04, WHICH TRANSLATED INTO ABOUT $3.15 PER MONTH FOR A $154,000 HOMEOWNER. THIS PARTICULAR ISSUANCE DOES NOT EQUATE TO ALL OF PROPOSITION A, IT'S ONLY PART OF PROPOSITION A. SO RIGHT NOW WE ARE EXPECTING THE INS TAX RATE INCREASE ASSOCIATED WITH THIS PARTICULAR ISSUE TO BE ABOUT 1.6 TO 1.7 CENTS, INCREASING THE PER MONTH FOR $154,000. HOMEOWNER BY ABOUT $2.10, $2.15 FOR THIS PARTICULAR ISSUANCE. RIGHT. AND HOW WILL HOMEOWNERS OR PROPERTY PEOPLE THAT PAY PROPERTY TAXES, HOW WILL THEY SEE THAT ON THEIR PROPERTY TAX STATEMENT IN THE FUTURE? WILL THAT JUST BE INCLUDED IN THE BEAUMONT PORTION, OR WILL IT BE A SEPARATE ITEM AS A BOND REVENUE? YES, SIR. JUST SIMPLY INCLUDED IN THE CITY OF BEAUMONT PORTION OF THE TAX RATE BILL THAT THEY GET. OKAY. ALL RIGHT. AND DID WE SEE I KNOW ONE OF THE REASONS WHY WE THE CITY WAS RECOMMENDING THE BOND PACKAGE TO HAPPEN WHEN IT DID ON THE INFRASTRUCTURE WAS THAT WE WANTED TO BORROW THE MONEY AT THE MOST FAVORABLE RATES POSSIBLE, AND ALSO DO THESE CONSTRUCTION PROJECTS BEFORE THE COST WOULD INCREASE. HAVE WE SEEN ANY SAVINGS IN WHAT WE ORIGINALLY ESTIMATED THE BOND COST TO BE LIKE BORROWING RATES AND THAT TYPE OF STUFF? AS TO WHAT THIS IS GOING TO BE? THAT'S A GREAT QUESTION. I WOULD SAY RIGHT NOW, INTEREST RATES IN THE BOND MARKET ARE ALMOST VERY MUCH EXACTLY THE SAME AS THEY WERE LAST SUMMER.

WE DID SEE, YOU KNOW, OVER THE COURSE OF LATE 2025 AND EARLY 26, WE SAW RATES ACTUALLY TREND DOWN. BUT SINCE THE BEGINNING OF MARCH, WITH THE ACTION IN IRAN, INCREASES IN OIL PRICES, INTEREST RATES HAVE HAVE INCREASED A LITTLE BIT SINCE THAT TIME AS WELL. SO THEY'RE KIND OF COME BACK TO ABOUT WHERE WE WERE LAST SUMMER. ALL RIGHT. AND. WHAT IS THE TOTAL AMOUNT OF TIME THAT WE'RE GOING TO REPAY THIS? IS IT 30 WE WHEN WE RAN THIS, WE RAN THIS OVER A 25 YEAR PAYBACK. OKAY. AND THAT'S WHAT THAT'S WHAT THESE THAT'S WHAT THAT'S WHAT WE'RE PLANNING ON IS 25 YEARS. YES, SIR. THANK YOU. YES, SIR. COUNCILMAN TURNER, ROUGHLY THE 215. WHEN WHEN DOES THAT TAKE EFFECT? DOES IT TAKE EFFECT IMMEDIATELY ONCE WE BREAK GROUND OR ONCE THE BONDS ARE SOLD, HOW DOES IT WORK? IT SHOULD TAKE EFFECT ON TAXPAYERS NEXT PROPERTY TAX BILL. WHEN YOU GUYS SET THE BUDGET AND TAX RATE FOR THE 2026 2027 FISCAL YEAR, LATER THIS SUMMER, IT WILL AFFECT THE TAX BILLS THAT HOMEOWNERS BEGIN TO RECEIVE LATE 2026. AND I UNDERSTAND THIS THIS ISN'T THE FULL AMOUNT, RIGHT? CAN YOU KIND OF EXPLAIN WHY TO CITIZENS WATCHING THE REASONING THAT IT'S KIND OF BROKEN UP AND NOT JUST THE FULL AMOUNT AT ONCE? CERTAINLY, I THINK I THINK THAT GOES DIRECTLY TO THE CONVERSATION Y'ALL WERE HAVING AT THE BEGINNING OF THIS ITEM. THIS COVERS BASICALLY THE FIRST TWO YEARS SCHEDULES OF IMPLEMENTING THE IMPROVEMENTS ASSOCIATED WITH THAT PROPOSITION. SO IT GIVES THE CITY THE TIME TO ADDRESS THOSE PARTICULAR IMPROVEMENTS. AND THERE'S,

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THERE'S A LITTLE INTEREST COST AVOIDANCE, RIGHT? IF WE WERE TO GO OUT RIGHT NOW AND ISSUE ALL $58.1 MILLION, THAT WAS AUTHORIZED UNDER PROPOSITION A, WE'D HAVE TO BE PAYING INTEREST ON THAT FULL 58, NOT EVEN USING IT AND NOT EVEN USE IT MAYBE FOR THREE, 3 OR 4 YEARS. HERE WE'RE BORROWING WHAT WE NEED FOR TWO YEARS, AND THEN ONCE WE GET READY FOR THE NEXT, THEN WE THEN WE START HAVING TO ACCRUE INTEREST EXPENSE ON THE REMAINDER AT THAT TIME. OKAY, UNDERSTOOD. I GOT A QUESTION NEXT TO ME THE OTHER DAY I WAS IN THE GROCERY STORE AND SOMEONE ASKED, OKAY, THE INFRASTRUCTURE BOND PASSED. WHEN ARE WE GOING TO START SEEING SOME WORK? YEAH. SO THAT'S WHY WE'RE SELLING THE BONDS. AND AS I MENTIONED, MOLLY'S BEEN WORKING THE BOND ADVISORY COMMITTEE FACILITATION COMMITTEE. SO WE'RE GOING TO GET THE BONDS SOLD AND THEN WE'LL WE'VE ALREADY WE'RE ALREADY STARTING TO WORK ON SOME ENGINEERING. AND SO HOPEFULLY AND MOLLY CAN CHIME IN HERE IN TERMS OF EXACTLY WHEN YOU START TO SEE DIRT TURN ON THINGS I WILL MENTION IS, AS WE TALKED ABOUT HERE, SOME OF THESE ARE DRAINAGE IMPROVEMENTS. AND SO LIKE OUR STORM DRAINAGE, IT'S GOING TO BE TOUGH TO SEE SOME OF THE THINGS THAT WE'RE DOING. SOME OF IT'S GOING TO BE THE PLANNING FOR SIDEWALKS. AND SO YOU'LL HEAR ABOUT THAT, BUT YOU WON'T SEE SIDEWALKS GOING IN. SO I'M SAYING ALL THAT TO SAY, WE'RE GOING TO TRY TO DO THE BEST WE CAN, ESPECIALLY WORKING WITH OUR COMMUNICATIONS DEPARTMENT AND HAVING, YOU KNOW, REALLY PUBLIC FACING DASHBOARD ON, YOU KNOW, THIS IS THE PROGRESS THAT WE'RE MAKING. THESE ARE THE TIMELINES. BUT I THINK THE, THE BIG THING IS TO GET THESE BONDS SOLD AND THEN GET THIS ENGINEERING WORK. BUT MOLLY JUMPS IN WITH HER RESPONSE. YOU ALSO HAVE TO REMEMBER, EVEN THOUGH THESE WERE BOND ISSUES, IT'S STILL CITY CONSTRUCTION. SO THE SAME PROCESS THAT WE WOULD DO IF IT WASN'T BOND FUNDING, WE STILL HAVE TO DO SO. IT STILL HAS TO GO OUT FOR BID. WE STILL HAVE A BIDDING PROCESS. WE STILL HAVE TO MEET WITH THE CONTRACTORS. AND I'M SURE YOU ALL KNOW THAT THAT TAKES A WHILE. BY LAW, IT HAS TO BE POSTED FOR SO MANY DAYS AND SO MANY THINGS HAVE TO HAPPEN. HOW WE HOW MOLLY DECIDES TO PACKAGE IT, PHASE IT OUT IS VERY METICULOUS IN HOW THEY PHASE IT OUT TO MAKE SURE THAT WE'RE LIMITING OUR CHANGE ORDERS, BUT ALSO GETTING THE MAXIMUM AMOUNT OF VALUE FOR THE AMOUNT THAT WE'RE BIDDING. AND THEN WE'RE ALSO WORKING WITH THE FINANCE BUDGET, RIGHT? SO MAKING SURE WE, WE AS MUCH AS POSSIBLE, ESPECIALLY FOR THE THINGS THAT ARE UNDERGROUND, WE ENGINEER AS BEST WE CAN TO REDUCE THE NUMBER OF CHANGE ORDERS. SO THE SAME PROCESS HAPPENS REGARDLESS OF THE FUNDING. WE STILL, BY LAW HAVE TO DO IT THE WAY WE DO IT. OKAY.

AND MY LAST QUESTION IS, WILL IT STILL SHOW IN OUR COMMUNITY INVESTMENT PLAN AS IT SHOWED BEFORE, BUT IT WOULD JUST BE FILLED WITH THE COLOR SHOWING THAT WE DO HAVE THAT BOND MONEY, A DIFFERENT COLOR. YEAH. YOU KNOW, 3 OR 4 DIFFERENT COLORS. IT'LL BE A DIFFERENT COLOR.

YEAH. OKAY, COOL. SO IT'S STILL SO WE STILL COULD POINT TO CITIZENS IN OUR COMMUNITY INVESTMENT PLAN, WHICH IS OUR CIP THAT, OKAY, IT'S PROJECTED AT THIS DATE DOESN'T NECESSARILY MEAN WE'LL MEET IT, BUT AT LEAST WE CAN HAVE SOME PROJECTIONS TO PHYSICALLY SHOW THEM KIND OF HOW WE HAVE OUR TEN YEAR CALENDAR. YEAH, YEAH. IF YOU LOOK IN THE ADOPTED FY 26 CIP AND THE PROPOSED FY 27 CIP, THOSE THAT ARE UNDER GENERAL OBLIGATION, THEY WERE HIGHLIGHTED IN GOLD AND THEY HAVE A PROJECTION TO THEM SPREAD OVER FY 26, 27, 28 AND INTO THE FUTURE. AND SO YOU CAN GO TO THE SUMMARY SHEETS AND VERY CLEARLY SEE WHAT THE TIMELINE IS FOR THOSE PROJECTS AND IDENTIFY WHICH ONES ARE GEO FUNDED VERSUS CO FUNDED. YEAH.

AND THAT'S WHAT I TOLD THEM WHEN I WAS IN THE STORE AND THEY WAS LIKE, NO, PULL IT UP.

I WANT TO SEE IT. AND I'M LIKE, I GOT MY KIDS, YOU KNOW, LIKE, HEY. THEY CAN ALWAYS GO TO THE CITY OF BEAUMONT'S FINANCE PAGE AND PULL UP THE CIP REPORT. AND I KNOW THAT THE FY 26 WAS FINANCE WORKED ON MAKING IT VERY FRIENDLY SO THAT YOU CAN CLICK ON THE LINK AND IT WILL TAKE YOU SPECIFICALLY TO THAT LOCATION. ALSO, BOND FACILITATION MEETINGS ARE PUBLIC AND THEY ARE LIVE STREAMED. OKAY. THANK YOU. COUNCILMAN HILLIARD. SO THE $2 IS GOING TO BE ON THE ENTIRE $56 MILLION A MONTH, $2 TO THE $2 IS ON THE THE 387 50 WHEN WE COME BACK TO SELL THE REMAINDER, THERE SHOULD BE THERE. YOU KNOW, THERE SHOULD BE A LITTLE BIT MORE OF AN INCREASE ASSOCIATED WITH THAT BECAUSE THAT PARTICULAR PROP, THE OTHER DOLLAR 50, THE FULL THE FULL PROP RIGHT WAS. 313. YEAH. SO MAYBE ANOTHER DOLLAR PER MONTH OR SO. SO WE'RE LOOKING AT A TOTAL. I JUST DON'T WANT PEOPLE TO GO, HEY, WE'RE PAYING $2, BUT IT'S GOING TO START OFF AT TWO, BUT THE MAX IT'LL GET IS $3, BASICALLY $3 AND SOME CHANGE. YEAH. 315 OR SO. YES, SIR. THAT THAT'LL HAPPEN ONCE WE SELL THE OTHER TRANCHE.

COUNCILMAN CRENSHAW, ONE MORE QUESTION THAT CAME UP AFTER MAYOR PRO TEM TURNER ASKED HIS

[00:45:03]

QUESTIONS. WE TOLD VOTERS THAT BOND EXPENSES WERE GOING TO BE PAID OUT OF ANY BOND THAT WAS PASSED. WHAT IS THE TOTAL AMOUNT THAT THE CITY IS GOING TO REIMBURSE ITSELF OUT OF THIS BOND PACKAGE THAT WAS SUPPOSED TO BE FOR INFRASTRUCTURE TO COVER THE TOTAL COST THE CITY HAD OF PUSHING THIS BOND. JUNE, DO YOU HAVE ANY? I KNOW WE DID A REIMBURSEMENT RESOLUTION. I THINK, IF I'M NOT MISTAKEN, WHAT YOU'RE REFERENCING IS LIKE ESSENTIALLY THE CLOSING COSTS ON THE BOND. NO, NO. LIKE SO THE, THE CONTROVERSIAL CONSULTANT GROUP THAT WE HAD, AND I CAN'T IMAGINE THAT WAS THE ONLY EXPENSE THE CITY HAD AS A RESULT OF THE BOND. YOU KNOW, THERE WAS SIGNIFICANT EFFORT BY STAFF. AND, YOU KNOW, THERE WAS FOOD AND BILLBOARDS AND THINGS IN PEOPLE'S YARDS. I MEAN, WHAT ARE WE GETTING REIMBURSED FOR ALL THAT? YOU KNOW, I'D LIKE TO KNOW WHAT THE COST OF ALL THAT WAS. SO DEREK MAY, DEREK MITCHELL, OUR BOND COUNCIL AFTERNOON MAYOR AND COUNCIL STAFF. I THINK THE MOST CONSERVATIVE APPROACH IS FOR THE CITY TO PAY FOR THAT WITH CASH. BECAUSE A MAJORITY, ESPECIALLY SINCE THE MAJORITY OF THE PROPOSITIONS FAILED. SO. A. WE PASSED A RESOLUTION TO TAKE THE MONEY THAT WE PAID GAP STRATEGIES OUT OF THE BOND TO REIMBURSE OURSELVES FOR THE MONEY THAT WE PAID. RIGHT. AND SO I'M NOT. SO I'M SAYING, AS I SAID, IT'S CONSERVATIVE. I THINK THAT ANYTHING THAT WAS RELATED TO IT TO A BOND ELECTION CAN BE REIMBURSED. BUT YOU GOT TO LOOK AT, WELL, WHAT WAS IT, 300? WHAT WAS THE THE TOTAL AMOUNT OF THE BONDS WHEN YOU ADD THEM UP? THREE SO MY POINT IS YOU LOOK AT 50 MILLION OVER THE. TWO. 64 OKAY, THAT'S PROBABLY THE PERCENTAGE. BUT THE TRUTH IS THE CITY CAN. I MEAN, I THINK YOU COULD DO IT. YOU COULD REIMBURSE YOURSELF FOR $100,000. BUT I WAS JUST SAYING CONSERVATIVELY. SO IF YOU WANT TO SAY THE CONSERVATIVE APPROACH IS USE CASH OR THAT PERCENTAGE OF WHAT PASSED, BUT YOU DID DO A RESOLUTION. THINK ABOUT IT LIKE THIS. THE CITY STILL EXPECTED OR HOPED WHEN THEY PLACE THE ITEM ON THE AGENDA, I MEAN UP FOR VOTE THAT IT WOULD PASS. AND SO YOU USED PROCEEDS OR YOU SPENT MONEY EXPECTING TO BE REIMBURSED FULL AMOUNT. AND SO BACK TO MY QUESTION. THE $100,000 FIGURE WAS MENTIONED. WHAT IS THE TOTAL AMOUNT THAT THE CITY IS GOING TO REIMBURSE ITSELF OUT OF THIS MONEY WE'RE ABOUT TO BORROW FOR THE INFRASTRUCTURE BOND THAT PASSED? I GET THERE'S AN ARGUMENT THAT MAYBE WE SHOULDN'T TAKE IT ALL OUT BECAUSE ONLY ONE OF EIGHT PROPOSITIONS OR WHATEVER IT WAS PASSED RESOLUTION WAS FOR 100,000. OKAY, SO THAT'S IT ROUGHLY. AND SOME CHANGE. THAT WAS THE ONLY THING THAT COUNCIL HAS AUTHORIZED. SO IN ORDER FOR YOU TO BE REIMBURSED, COUNCIL HAS TO DO REIMBURSEMENT RESOLUTION. AND SO THE REIMBURSEMENT RESOLUTION, I BELIEVE WAS AROUND 100,000. AND THAT WAS FOR THE MONIES THAT WAS PAID TO GAP STRATEGIES AND FOR MARKETING MATERIAL. HOWEVER, COMMA, EVEN WITH THAT RESOLUTION, COUNCIL DOESN'T HAVE TO THAT JUST AUTHORIZES THE CITY MANAGER TO DO IT. BUT IT DOESN'T MEAN THAT THAT Y'ALL HAVE TO DO IT THAT WAY. WELL, I WOULD ARGUE THAT YOU DO. IT GIVES THEM PERMISSION TO DO THAT. I THINK THE WHEN CERTAIN MEMBERS OF THE COUNCIL VOTED TO SPEND THAT MONEY, IT WAS UNDERSTOOD THAT THAT MONEY, WORST CASE SCENARIO WOULD BE LATER REIMBURSED. AND OUR BUDGET IS ALREADY GOING TO BE TIGHT ENOUGH. SO I JUST WANTED CLARIFICATION. WHEN VOTERS AND RESIDENTS ASK ME WHAT'S GOING ON, THAT IT'S $100,000 AND IT'S GOING TO BE THIS. THE GENERAL FUND IS GOING TO BE REIMBURSED OUT OF THIS MONEY THAT WE'RE BORROWING FROM THE BOND, AND THAT'S BASED UPON WHAT WE'VE ALREADY PASSED. OR WE'RE YOU'RE SAYING WE'RE GOING TO HAVE TO HAVE A NEW ORDINANCE TO REIMBURSE OURSELVES. YOU'VE ALREADY YOU'VE ALREADY PASSED THAT RESOLUTION. IF YOU WANTED TO INCREASE THAT REIMBURSEMENT, COUNCIL PASSED IT. I DIDN'T, BUT COUNCIL, THE COUNCIL, WHEN I SAY YOU, I'M REFERRING TO THE COUNCIL. SO COUNCIL'S ALREADY PASSED THAT RESOLUTION. IF COUNCIL WANTED TO CHANGE THE AMOUNT OF REIMBURSEMENT, COUNCIL WOULD NEED TO DO IT A DIFFERENT REIMBURSEMENT RESOLUTION. OKAY. AND I'M NOT IN ANY WAY ADVOCATING TO CHANGE THE AMOUNT. WHILE I DO AGREE WITH THAT CONSERVATIVE APPROACH, I THINK IT'S ALREADY BEEN SAID AND IT WOULD JUST, YOU KNOW, OPEN UP A CAN OF WORMS TO REVISIT IT. I JUST WANTED TO BE CLEAR THAT WE ARE BEING REIMBURSED FOR THOSE EXPENSES OUT OF THIS BOND. SO IT SOUNDS LIKE THE 100,000 WILL BE PAID ONCE WE GET THIS MONEY. THAT'S CORRECT. SO RIGHT NOW THAT THE GENERAL FUND WILL GO UP 100,000

[00:50:04]

ONCE THIS MONEY HITS OUR ACCOUNT, BECAUSE THIS MONEY IS NOT GOING INTO THE GENERAL FUND, IT'S GOING TO BE KEPT IN A SEPARATE BOND FUND. SO THE GENERAL FUND WOULD BE REIMBURSED FROM THE PROCEEDS OF THE SALE OF THIS BOND THROUGH THE REIMBURSEMENT RESOLUTION.

CORRECT. BUT THIS MONEY THAT WE'RE THE 38 MILLION WE'RE ABOUT TO BORROW ISN'T GOING TO GO INTO THE GENERAL FUND. IT'S GOING TO GO INTO A SEPARATE FUND. CORRECT. IT'LL GO IN A DEBT SERVICE FUND FOR CAPITAL. YES. RIGHT. SO IT'S GOING TO GO INTO DEBT SERVICE FUND, AND THE $100,000 WILL BE REIMBURSED FROM THE DEBT SERVICE FUND TO THE GENERAL. IT'LL GO INTO A CAPITAL FUND. THIS WILL GO INTO A CAPITAL PROJECT FUND. SO WHEN WE SELL THE BONDS, THAT MONEY WILL GO INTO A CAPITAL PROJECT FUNDS, AND THEN MOLLY CAN USE TO SPEND OUT OF IT. BUT SOME OF THAT, AND THERE'S A SEPARATE DEBT SERVICE FUND THAT WILL GO TO SERVICE THE DEBT. BUT SOME OF THAT $100,000, BECAUSE OF THAT REIMBURSEMENT RESOLUTION, WILL COME OUT OF THE CAPITAL PLAN OR THE CAPITAL FUND BACK TO THE GENERAL FUND TO REPAY US FOR THOSE SOFT COSTS. OKAY. AND WHILE WE'RE TALKING ABOUT IT, ARE THERE ANY MORE COSTS THAT STAFF HAS IDENTIFIED BECAUSE OUR GENERAL FUND IS GOING TO BE UNDER, YOU KNOW, PRESSURE? ARE THERE ANY ADDITIONAL COST THAT WE CAN CONTRIBUTE TO THE BOND THAT THE CITY INCURRED THAT MAY REQUIRE A NEW RESOLUTION FOR US TO REIMBURSE FROM THAT? WE COULD DO THAT IN ORDER TO HELP OUR GENERAL FUND AND PAY OUT OF THIS 38 MILLION WE'RE ABOUT TO BORROW. SO YOU COULD ALSO USE THE MONEY, OR YOU COULD COUNCIL COULD ALSO AUTHORIZE REIMBURSEMENT FOR STORM SEWER WORK THAT WE'VE ALREADY STARTED BECAUSE IT'S WORK RELATED TO AND APPROVED THROUGH UNDER THE BOND. SO UP UNTIL THAT TIME OUT.

AND I THINK DEREK CAN KIND OF TALK TO THAT ABOUT. BUT SOME OF THAT MONEY CAN BE REIMBURSED WORK FOR WORK WE'VE ALREADY STARTED BECAUSE IT WAS ALREADY BUDGETED FOR. SO I THINK YOU GUYS, YES, WE DID A REIMBURSEMENT RESOLUTION 2 OR 3 COUNCIL MEETINGS AGO, BUT THAT WAS JUST TO FOR US TO GET STARTED ON PROJECTS. AND WE JUST REIMBURSE OURSELVES FROM STARTING THOSE PROJECTS. OKAY. I GUESS WHERE I'M GOING WITH ALL THIS, YOU KNOW, WE'RE, WE'RE ALREADY GOING TO HAVE THIS MONEY. AND I'M JUST TRYING TO IDENTIFY LIKE FOR STAFF TO IDENTIFY ANY OTHER PERMISSIBLE UNDER THE LAW EXPENSES THAT WE COULD REIMBURSE THE GENERAL FUND THAT WE INCURRED LAST YEAR DURING THIS BOND ELECTION AND ALL OF THE OTHER THINGS, ANYTHING LEGALLY PERMISSIBLE. I WOULD LIKE FOR STAFF TO IDENTIFY THAT SO THIS COUNCIL COULD AT LEAST MAKE THE DECISION AND VOTE ON WHETHER THERE'S ADDITIONAL EXPENSES THAT WE WANT TO REIMBURSE. WELL, THAT WAS LIKE I SAID, LIKE MR. ELLIS WAS SAYING THAT THAT WAS DONE A FEW MEETINGS AGO. SO WE WILL TAKE A FRESH LOOK AT WHAT WAS DONE. WE'LL WORK WITH DEREK AND DUSTY AND DECIDE WHAT WE CAN OR CAN'T DO. OBVIOUSLY, MOVING FORWARD, THERE'S GOING TO BE SOME ENGINEERING COSTS AND THINGS LIKE THAT THAT WILL COME OUT OF THE PROCEEDS OF THE BOND. BUT IN TERMS OF LOOKING BACKWARDS, SOUNDS LIKE WE'VE WE'VE GOT THAT RESOLUTION, BUT I WOULD LIKE WE'LL I'LL COMMIT THAT. WE'LL GO BACK AND TAKE A FRESH LOOK AT IT TO SEE WHAT IF WE HAVE ANY OTHER ADDITIONAL OPTIONS. THANK YOU. YES. THANK YOU. ANY OTHER QUESTIONS OR DISCUSSION. THANK YOU GENTLEMEN. THANK YOU ALL. RIGHT. WITH THAT, ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER SEVEN, PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? MOTION IS CARRIED. NOW

[2. Council consider a resolution authorizing the City Manager to execute an agreement with the Texas Water Development Board (TWDB) for financial assistance for the Lead Service Line Inventory and Replacement Project.]

NOT TO CONFUSE PEOPLE BUT WE'RE DROPPING. WE'RE GOING BACK TO ITEM NUMBER TWO. NUMBER TWO.

YES, SIR. MAYOR AND COUNCIL, ITEM NUMBER TWO IS TO CONSIDER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE TEXAS WATER DEVELOPMENT BOARD, OR TWDB, FOR FINANCIAL ASSISTANCE FOR THE LEAD SERVICE LINE INVENTORY AND REPLACEMENT PROJECT. THE TEXAS WATER DEVELOPMENT BOARD ISSUED A CALL FOR PROJECTS BACK IN DECEMBER OF 2023 FOR COMMUNITIES TO APPLY FOR PROJECT FUNDING ASSISTANCE THROUGH THE DRINKING WATER STATE REVOLVING FUND. THE INTENDED PURPOSE OF THE PROGRAM IS FOR LEAD SERVICE LINE REPLACEMENT PROJECTS AND ASSOCIATED ACTIVITIES INCLUDING INVENTORYING, PLANNING, DESIGN AND REPLACEMENT. ON NOVEMBER 19TH, 2024, BY RESOLUTION 24 305, CITY COUNCIL AUTHORIZED THE CITY MANAGER TO EXECUTE AN. FOR THIS PROGRAM IN THE AMOUNT OF $7,610,000. HOWEVER, DURING THE APPLICATION PROCESS, THE FUNDING AMOUNT WAS REDUCED DUE TO REGULATORY CHANGES. THE CITY NOW SEEKS TO UPDATE THIS RESOLUTION TO DESIGNATE THE CITY MANAGER AS THE CITY'S DESIGNATED REPRESENTATIVE AND ADJUST THE FUNDING AMOUNT TO $5,500,000. AND BASED ON THAT, THE. PROPOSED FUNDING COST OF $5,071,429 IS BASED ON CURRENT ESTIMATES AND COULD REQUIRE A LOCAL MATCH OF UP TO $2,485,000, OR 51% OF THE PROGRAM. FUNDING WILL CONSIST OF PRINCIPAL FORGIVENESS AND 49% LOAN BOND. THE LOAN COVERING THE INVENTORY WILL BE 0% INTEREST.

[00:55:09]

$10,617,965 WAS INCLUDED UNDER DEBT IN THE PROPOSED CIP FOR LEAD SERVICE LINE, FIELD INSPECTION AND REPLACEMENT. THE SOURCE OF THE FUNDS WOULD BE THROUGH THE T W D PROGRAM AND WATER REVENUE BONDS, AND THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS RESOLUTION. IS THERE A MOTION FOR ITEM NUMBER TWO? MOVE TO APPROVE. IS THERE A SECOND? SECOND. RIGHT. THERE IS A MOTION AND A SECOND ON ITEM NUMBER TWO. IS THERE ANY QUESTIONS OR DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER TWO PLEASE SIGNIFY BY SAYING I. AYE. ANY OPPOSED?

[3. Council consider a resolution authorizing the City Manager to award a contract to King Solution Services, LLC, of Houston, TX for the Todd Street and Josey Street Sanitary Sewer Rehabilitation Project.]

THE MOTION IS CARRIED. MR. CITY MANAGER, WOULD YOU PLEASE TAKE US INTO THE READING OF ITEM NUMBER THREE? YES, SIR. MAYOR AND COUNCIL, ITEM NUMBER THREE IS TO CONSIDER RESOLUTION AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT TO KING SOLUTION SERVICES, LLC OF HOUSTON, TEXAS, FOR THE TODD STREET AND JOSE STREET SANITARY SEWER REHABILITATION PROJECT, FEBRUARY 3RD, 2026 BY RESOLUTION 2635, CITY COUNCIL AUTHORIZED THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH EXXONMOBIL CORPORATION, BEAUMONT POLYETHYLENE PLANT FOR THE TODD STREET AND JOSE STREET SANITARY SEWER REHAB PROJECT. UNDER THE AGREEMENT, EXXONMOBIL WILL CONNECT ADDITIONAL SANITARY SEWER FLOWS ASSOCIATED WITH ITS OPERATIONS TO THE CITY'S SANITARY SEWER SYSTEM AND REIMBURSE THE CITY UP TO $300,000 FOR IMPROVEMENTS NECESSARY TO SUPPORT THE CONNECTION. DURING THE PRELIMINARY EVALUATION, THE EXISTING SANITARY SEWER INFRASTRUCTURE IN THE PROJECT AREA WAS DETERMINED TO BE IN DETERIORATED CONDITION AND IN NEED OF REHABILITATION PRIOR TO ACCEPTING THE ADDITIONAL FLOWS.

THE PROJECT WILL REHABILITATE THE SYSTEM THROUGH REPLACEMENT OF DETERIORATED SANITARY SEWER MAINS, UTILIZING PIPE BURSTING METHODS AND INSTALLATION OF NEW MANHOLES TO MAINTAIN SYSTEM INTEGRITY AND PROVIDE RELIABLE LONG TERM SERVICE. ON APRIL 23RD, 2026, SEVEN BIDS WERE RECEIVED FOR THIS WORK AND THE WINNING BIDDER, BASED ON THE BIDS SUBMITTED, WAS KING SOLUTION SERVICES, LLC OF TEXAS IN THE AMOUNT OF $279,970. THERE REQUIRING 75 CALENDAR CALENDAR DAYS TO DO THE WORK. THE FUNDS ARE AVAILABLE AVAILABLE THROUGH THE WATER REVENUE BONDS, AND THE ADMINISTRATION RECOMMENDS APPROVAL. IS THERE A MOTION FOR APPROVAL ON ITEM NUMBER THREE? SO MOVED. SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER THREE. IS THERE ANY QUESTIONS? COUNCILMAN TURNER? SO, MR. MANAGER, IF I HEARD YOU CORRECTLY AND THE BID PROPOSAL BASED ON THAT 279,000, AND THEY'RE WILLING TO REIMBURSE UP TO 300,000, IT'S POSSIBLE THAT THIS WILL BE 100% REIMBURSABLE PROJECT, CORRECT? YEAH. YES, SIR. THANK YOU. THAT'S ALL I NEEDED. ANY OTHER QUESTIONS OR DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER THREE, PLEASE SIGNIFY BY SAYING AYE.

AYE. ANY OPPOSED? MOTION IS CARRIED. MR. CITY MANAGER, MAY WE HAVE THE READING OF ITEM

[4. Council consider a resolution authorizing the City Manager to execute Change Order No. 1 on Phase II of the contract with Vortex Services, LLC, of Houston, Texas for the Eastex Water and Wastewater Relocation projects of the TxDOT IH-10/Hwy 69 Eastex Interchanges Project.]

NUMBER FOUR? YES, MAYOR AND COUNCIL, ITEM NUMBER FOUR IS TO CONSIDER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NUMBER ONE ON PHASE TWO OF THE CONTRACT WITH VORTEX SERVICES, LLC OF HOUSTON, TEXAS, FOR THE EAST TEXAS WATER AND WASTEWATER RELOCATION PROJECTS OF THE TXDOT I-10 HIGHWAY 69 EAST TEX INTERCHANGES PROJECT ON AUGUST 5TH, 2025. BY RESOLUTION 25182, THE CITY COUNCIL AWARDED A CONTRACT TO VORTEX SERVICES OF HOUSTON IN THE AMOUNT OF $22,021,822 FOR THE FOUR PHASES OF THE I-10 69 EAST TEX PROJECT.

PHASE TWO EXTENDING FROM HOLLYWOOD OVERPASS EAST TO SEVENTH STREET, AND THAT WAS PHASE WAS AWARDED IN THE AMOUNT OF $4,318,943. THIS PROJECT IS ASSOCIATED WITH THE TEXAS DEPARTMENT OF TRANSPORTATION, I-10, HIGHWAY 69 EAST TEX INTERCHANGES PROJECT AND IS ELIGIBLE FOR REIMBURSEMENT OF QUALIFYING UTILITY RELOCATION EXPENSES. PROPOSED CHANGE ORDER NUMBER ONE IN THE AMOUNT OF $41,343.81, IS REQUESTED FOR PHASE TWO OF THE CONTRACT AND INCLUDES ADDITIONAL WORK REQUESTED BY THE CITY, AS WELL AS WORK NECESSARY TO COMPLY WITH REQUIREMENTS OF THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. ADDITIONAL WORK INCLUDES SANITARY SEWER IMPROVEMENTS ALONG LOUISIANA RELATED TO TEX-DOT INTERCHANGE CONSTRUCTION ACTIVITIES. THE WORK REQUIRED LOCATING AND INSTALLING A CLEAN OUT OUTSIDE

[01:00:03]

OF TEX DOT'S PROPOSED WORK LIMITS AND REMOVING CONFLICTING SEWER INFRASTRUCTURE THAT WILL NO LONGER REMAIN IN SERVICE. IN ADDITION, AN ADDITIONAL TEN DAY CALENDAR DAYS ARE REQUESTED TO COMPLETE THE ADDITIONAL WORK. IF APPROVED, THE REVISED PHASE TWO CONTRACT AMOUNT WILL INCREASE TO $4,360,286.81, AND THE TOTAL CONTRACT AMOUNT FOR PHASES ONE THROUGH FOUR WILL INCREASE TO $22,063,165.81. FUNDS FOR THIS ARE AVAILABLE THROUGH WATER REVENUE, BONDS, BONDS AND WE DO RECOMMEND APPROVAL OF THIS RESOLUTION. IS THERE A MOTION FOR ITEM NUMBER FOUR? MOVE TO APPROVE. OKAY. THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER FOUR. IS THERE ANY DISCUSSION? COUNCILMAN CRENSHAW. WE DON'T HAVE IT IN FRONT OF US, AND I KNOW WE WERE GIVEN IT. WE WERE ALLOWED TO SEE IT BEFORE. BUT, YOU KNOW, BECAUSE OF THE TECHNICAL DIFFICULTIES, HAVING ASKED THIS QUESTION. BUT SO BASICALLY, OUT OF A $22 MILLION PROJECT, WE'RE DOING A CHANGE ORDER FOR 41000 FOR THIS PHASE. YES. OKAY. AND I THOUGHT THAT THE CITY MANAGER COULD APPROVE EXPENSES UP TO 50,000 IS BECAUSE IT'S A CHANGE ORDER. IT AUTOMATICALLY REQUIRES US TO COME BACK TO COUNCIL. OR WHY CAN YOU NOT JUST APPROVE THIS WITHOUT US HAVING A VOTE ON IT? MONICA. SO THIS IS ONE OF THE ONES THAT THE THE SCOPE OF WORK WAS SIGNIFICANTLY IN EXCESS. AND SO TRYING TO BALANCE THE UPS AND DOWNS ON IT. SO THE NET ENDED UP COMING IN JUST UNDER THE $50,000. AND SO THEREFORE WE ENDED UP BRINGING IT TO COUNCIL. AND SO YEAH, SOME OF THESE WILL COME THROUGH TO YOU THAT WE'RE ARE GOING TO LOOK ODD PERCENTAGE WISE TO ANSWER THE QUESTION SO HE CAN APPROVE IT UP TO 50, 000. ONLY IF IT DOESN'T CHANGE. IT'S A PERCENTAGE OF THE CONTRACT. I BELIEVE IT'S 25% CHANGE TO THE CONTRACT. SO BECAUSE IT REPRESENTED MORE THAN 25% CHANGE TO THE CONTRACT, THEN WE BRING IT ANYWAY. HOW IS IT MORE THAN A 25% CHANGE IN THE CONTRACT? IT'S BASED ON THE PHASE, THE NOT THE OVERALL CONTRACT VALUE, BUT BECAUSE THIS WAS BROKEN DOWN INTO PHASES. SO IT'S BROKEN DOWN INTO PHASE ONE PHASE TWO. SO THE PHASE FOR THAT PROJECT IS MORE THAN BUT IT'S LESS THAN THE OVERALL VALUE OF THE CONTRACT. OKAY. AND I'M I'M IN FAVOR OF IT. I'M NOT COMPLAINING AT ALL. I JUST THINK IN MY MIND THAT, YOU KNOW, WHY ARE WE SITTING HERE ABOUT, YOU KNOW, SO YEAH, SO NORMALLY YOU'RE CORRECT. IF IT'S UNDER 50, UNDER 50,000 YOU WOULD BE CORRECT. BUT IT'S THE IT'S NOT THE OVERALL VALUE OF THE CONTRACT. WHEN WE LOOK AT PHASE CONTRACTS, WE MAKE A DECISION AS TO WHETHER, IF IT'S GOING TO INCREASE THE OVERALL VALUE OR IF IT'S GOING TO INCREASE THE PHASE VALUE. SO JUST ON A MORE CONSERVATIVE APPROACH, IF THE INCREASE IS GREATER, MORE THAN 25% OF THE PHASE CONTRACT PRICE, THEN WE BRING IT. BUT IF COUNCIL SAYS TO DO OTHERWISE, WE CAN JUST ALWAYS BEEN THE PRACTICE. WE ALSO MAY WANT TO MAKE SURE WE GET REIMBURSED. RIGHT? ABSOLUTELY. YEAH. SO IT'S JUST IT'S JUST WE'RE PAYING THIS OUT OF WATER REVENUE BONDS, BUT WE'RE GOING TO GET REIMBURSED BY TXDOT. YES. THAT MAKES YOU HAPPY. THAT'S NICE. THAT'S ALL I HAVE. ALL RIGHT. ANY OTHER QUESTIONS OR DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER FOUR PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? THE MOTION IS CARRIED. WE WILL NOW MOVE TO

[8. Council consider a Specific Use Permit to allow a new classroom building within an RM-H (Residential Multiple Family-Highest Density) District for property located at 4108 Delaware Street.]

ITEM NUMBER EIGHT. AND MAY WE HAVE THE READING OF ITEM NUMBER EIGHT, MR. CITY MANAGER. YES.

YEAH. SO ITEM NUMBER EIGHT IS TO CONSIDER A SPECIFIC USE PERMIT TO ALLOW A NEW CLASSROOM BUILDING WITHIN AN RME RESIDENTIAL MULTIFAMILY, HIGHEST DENSITY DISTRICT FOR THE PROPERTY LOCATED AT 4108 DELAWARE STREET. THIS SUP AGAIN IS FOR A 1600 ZERO SQUARE FOOT FACILITY AT ALL SAINTS EPISCOPAL SCHOOL, SERVING STUDENTS FROM PRE-K THROUGH EIGHTH GRADE, THE PRIMARY PURPOSE OF WHICH IS TO SUPPORT THE SCHOOL ART AND MUSIC PROGRAM. AT A JOINT PUBLIC HEARING HELD MAY 18TH, 2026, THE PLANNING COMMISSION RECOMMENDED 8 TO 0 TO APPROVE THE REQUEST FOR THE SPECIFIC USE PERMIT WITH THE FOLLOWING CONDITIONS. NUMBER ONE SHALL COMPLY WITH ALL APPLICABLE BUILDING AND FIRE CODES. NUMBER TWO, THE PARKING LOT CONSTRUCTION SHALL COMPLY WITH TYPICAL PARKING LOT DETAIL REQUIRED BY ENGINEERING. AND FINALLY, NUMBER THREE, CONSTRUCTION PLANS MUST MEET ALL REQUIREMENTS BY THE WATER UTILITIES FOR ANY WATER AND SANITARY SEWER IMPROVEMENTS, INCLUDING ANY REQUIREMENTS OF THE CITY'S BACKFLOW, PRETREATMENTS AND OR FOG PROGRAM. AND BASED ON THAT, THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS ITEM WITH THE SAME CONDITIONS. ALL RIGHT. IS THERE A MOTION FOR ITEM NUMBER EIGHT? SO MOVED. SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER EIGHT. AND COUNCILMAN TURNER, DO YOU HAVE A QUESTION? YEAH. JUST TO STAFF, HOW FAR ARE WE WITH THE COMPREHENSIVE PLAN ON OUR

[01:05:04]

ZONING UPDATES? I KNOW LAST TIME WE TALKED IT'S BEEN DECADES. IF I DON'T RECALL, SINCE WE REALLY TOOK A DEEP DIVE AT OUR ZONING AND, YOU KNOW, IF SOME OF THESE ZONES IN THE RIGHT PLACE, SIMILAR TO WHAT COUNCILMAN CRENSHAW SAID EARLIER. SO IT'S NOT BROUGHT TO US IF IT'S SOMETHING THAT LIKE THIS THAT WE KNOW, IT'S ALREADY PRETTY MUCH IN THE AREA. YES, SIR. WE'RE ABOUT, I WOULD SAY, 60% OF THE WAY THROUGH WE SHOULD BE OR YOU GUYS SHOULD BE SEEING THE COMPREHENSIVE PLAN COME BEFORE YOU IN SEPTEMBER AND THEN OCTOBER FOR FINAL ADOPTION. OKAY. AND IT'LL KIND OF GIVE US A RECOMMENDATION OF SO IT'LL HAVE A NEW, OBVIOUSLY A NEW COMPREHENSIVE PLAN THAT'LL HAVE A NEW LAND USE DIAGRAM. AND THEN FROM THERE, WE ADOPT A ZONING MAP THAT THAT IS COMPARES TO THAT LAND USE DIAGRAM. OKAY. LASTLY, ROUGHLY WHEN WAS THE LAST TIME WE DID THIS? 2000, 2001 201 OKAY. COUNCILMAN GRIMSHAW, THIS IS WARD ONE. AND SO I WOULD LIKE FOR STAFF TO LET THE MEMBERS OF THE COUNCIL KNOW THAT WE'RE NOT PRESENT AT THE PLANNING AND ZONING MEETING. THE SIGNIFICANT CONCERNS. NUMEROUS RESIDENTS SHOWED UP TO VOICE THEIR OPINION. AND SPECIFICALLY, IT WASN'T THAT THEY WERE AGAINST THE ALL SAINTS EXPANSION. AND I'M ALL CANDOR. I'M AN ALL SAINTS GRADUATE. GO VIKINGS. I, I ASSUME THEY'RE STILL THE VIKINGS. I DON'T KNOW CAN YOU YEAH. CAN YOU EVEN SAY VIKING ANYMORE? OKAY. SO YEAH GO VIKINGS. BUT THE RESIDENTS WEREN'T AGAINST IT. WHAT IS THAT NEIGHBORHOOD DEMI NEXT. SANDALWOOD. SANDALWOOD. SO THEY'RE NOT AGAINST IT. THEY JUST WANTED US TO BE AWARE OF THE PROBLEMS THAT THEY CURRENTLY FACE WITH TRAFFIC AND ISSUES WITH THAT. AND IN PARTICULAR, IT'S WHERE SANDALWOOD COMES OUT AT DELAWARE THAT THE PARENTS LINING UP TO GET THEIR KIDS SOMETIMES BLOCK AND MAKE IT DIFFICULT. AND THE ONE OF THE THINGS PROPOSED DURING THE PLANNING AND ZONING MEETING WAS, WELL, SANDALWOOD HAS TWO EXITS AND YOU COULD JUST GO DOWN TO THE EXIT ON LUCAS. WELL, I DROVE THAT THE OTHER DAY, AND THAT'S NOT REALLY FAIR TO TELL PEOPLE THAT LIVE IN SANDALWOOD THAT THEY CAN JUST USE THE LUCAS EXIT BECAUSE, YOU KNOW, IT'S A RESIDENTIAL AREA. YOU DO HAVE TO DRIVE VERY SLOW THROUGH THERE. AND IT IS, YOU KNOW, QUITE A BIT ON THE OTHER SIDE.

SO I WOULD LIKE FOR STAFF TO JUST REMIND THE OTHER MEMBERS OF COUNCIL WHAT THE CONCERNS WERE THAT THE RESIDENTS HAVE AND THE STEPS THAT THE CITY HAS AGREED TO ASK ALL SAINTS TO TAKE, SIMILAR TO SOME OF THE STEPS THAT WE ASKED HARMONY TO TAKE OVER ON CALDER TO ADDRESS THOSE CITIZEN CONCERNS. SO BASICALLY, YOU COVERED IT. IT WAS TRAFFIC CONCERNS OUT OF SANDALWOOD NEIGHBORHOOD ONTO DELAWARE. AND I KNOW MOLLY CAN PROBABLY SPEAK A LITTLE BIT BETTER TO THE TRAFFIC PART OF IT, BUT OBVIOUSLY THERE IS A STOPLIGHT INTERSECTION THAT'S RIGHT THERE. SO THAT WOULD BE ONE OF THE COMMISSIONERS ASKED ABOUT POTENTIALLY A STOPLIGHT BEING PUT IN RIGHT THERE, BUT THAT IS PRETTY CLOSE TO AN INTERSECTION. SO I DON'T KNOW IF THAT WOULD NECESSARILY BE SOMETHING TO MOVE FORWARD WITH, BUT I DO KNOW THAT I'VE PASSED ALONG THAT CONCERN TO. PUBLIC WORKS AND ALSO BPD TO ENFORCE, NOT BLOCKING THE OPENING. AND I WILL ASK IF THERE'S BEEN ANY FOLLOW UP ON THAT. CORRECT. AND SO THEY WERE WE WOULD LIKE A SIGN PUT UP FROM PUBLIC WORKS THAT SAYS, DO NOT BLOCK THE DRIVE OR THE STREET. THEN NUMBER TWO, WE WOULD LIKE BPD TRAFFIC UNIT TO INCREASE ENFORCEMENT RIGHT THERE, AT LEAST AT THE BEGINNING, TO TRY TO HELP US WITH PEOPLE BLOCKING THAT. AND THEN NUMBER THREE, WE WOULD LIKE THE SCHOOL TO INFORM PARENTS THAT THE RESIDENTS OF SANDALWOOD ARE ALL FOR THE SCHOOL GETTING NEW CLASSROOMS. BUT WE WOULD LIKE TO TAKE THAT OPPORTUNITY TO REMIND PARENTS TO PLEASE BE COGNIZANT OF THOSE RESIDENTS TRYING TO GET IN AND OUT OF THEIR HOMES, AND HOW FRUSTRATING THAT WOULD BE. YOU KNOW, IF YOU'RE TRYING TO GET OUT OF YOUR YOUR, YOU KNOW, OFF YOUR STREET AND YOU CAN'T BECAUSE EVERYBODY'S LINED UP IN THE MORNING, IN THE AFTERNOON.

ALL RIGHT. ANY OTHER COMMENTS OR DISCUSSION? ALL THOSE IN FAVOR OF ITEM NUMBER EIGHT, PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? MOTION IS CARRIED. MR. CITY MANAGER, MAY

[9. Council consider a Rezoning from RM-H (Residential Multiple Family–Highest Density) District to GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for property located at 5980 Concord Road.]

WE HAVE THE READING OF ITEM NUMBER NINE, SIR? ITEM NUMBER NINE IS TO CONSIDER A REZONING

[01:10:03]

FROM MH RESIDENTIAL MULTIFAMILY HIGHEST DENSITY DISTRICT TO GCMD2 GENERAL COMMERCIAL MULTI-FAMILY DWELLING DISTRICT TWO FOR THE PROPERTY LOCATED AT 5980 CONCORD ROAD. THE COMMISSION HEARD THIS ITEM AT A JOINT PUBLIC HEARING MAY 18TH, 2026. AND VOTED 8 TO 0 TO APPROVE THE REQUEST FOR THE REZONING AT THIS LOCATION. ADMINISTRATION RECOMMENDS APPROVAL OF THIS REZONING AS WELL. IS THERE A MOTION FOR ITEM NUMBER NINE? SO MOVED.

SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER NINE. AND COUNCILMAN TURNER, JUST KIND OF YOU KNOW, YOU SEE THE FOOD TRUCK PARK BEING PROPOSED. LIKE I KNOW WE WENT AFTER IT WITH AN RFP. MAYBE THIS IS SOMEBODY THAT SHOULD HAVE BEEN REACHED OUT TO.

I'M JUST SAYING. ALL RIGHT. ANY OTHER COMMENTS IS HOW IS THIS GOING TO ALIGN WITH THE CON, THE DESIRE BY SOME TO HAVE A FOOD TRUCK PARK AT RIVER FRONT PARK, AND NOW WE'RE GOING TO HAVE ONE WITHIN WAS THAT I'M TERRIBLE AT DISTANCE. IS THAT FIVE MILES, PROBABLY 3 OR 4.

YEAH, I AIN'T SAYING THAT. SO IT'S YEAH IT'S A GOOD QUESTION. SO AS YOU ALL KNOW, THE FOOD TRUCK PARK IS STILL IN THE CIP. AND I KNOW WE HAD A WORK SESSION ON IT A COUPLE MEETINGS AGO IN TERMS OF, YOU KNOW, HOW DO WE MOVE FORWARD? AND I THINK THE GAME WELL, I KNOW THE GAME PLAN IS WE MET ON IT YESTERDAY AND THAT IS TO INITIATE ANOTHER RFP. BUT PART OF THAT RFP PROCESS IS CONTACTING. WE MIGHT EVEN CONTACT THESE FOLKS AS WELL AS PEOPLE WHO ARE IN THAT BUSINESS, AND MAKE SURE, MAKE SURE THAT THERE'S DEFINITELY AN INTEREST ON OUR ON OUR PROJECT, YOU KNOW, WHETHER OR NOT THIS WOULD DILUTE THE MARKET, THAT'S GOING TO BE PART OF THE CONVERSATION. BUT AGAIN, WE'LL, WE'LL HAVE TO SEE WHAT WE GET BACK WHEN WE DO ANOTHER RFP, BECAUSE WE CERTAINLY DON'T WANT TO INVEST IN IT. OF COURSE, IF IF THERE'S NOT GOING TO BE A MARKET. YES, COUNCILMAN TURNER, AND LASTLY, I'M KIND OF YOU KNOW, IT'S IT'S A PLEASURE TO HEAR THAT THE PRIVATE SECTOR IS INTERESTED IN DOING SO BECAUSE THE CONVERSATION THAT ONE OF THE LAST MEETINGS WAS THE PRIVATE SECTOR DIDN'T HAVE AN INTEREST. BUT THIS IS PROOF THAT THERE IS AN INTEREST. MY SECOND QUESTION IS, ARE THERE ANY STIPULATIONS IN PLACE? BECAUSE IT ISN'T THAT FAR FROM RESIDENTIAL NEIGHBORHOODS. WHEN I SAY STIPULATIONS, I'M NOT SURE. WILL IT BE SITTING AREAS? WILL IT BE MUSIC? IS IT A CERTAIN TIME? IT HAS TO CLOSE.

I'M JUST TRYING TO GET AHEAD OF AN ISSUE BEFORE IT CAN BECOME AN ISSUE. SO THIS REZONING REQUEST ACTUALLY CAME IN REQUESTING FOR GC, MD BECAUSE OF THE PROXIMITY TO RESIDENTIAL USES OR EXISTING USES, WE DID RECOMMEND GC, MD TWO AND THEN PLANNING COMMISSION ALSO RECOMMENDED APPROVAL. AND THAT IS WHAT'S BEFORE YOU GUYS TODAY IS FOR GC, MD TWO, WHICH WOULD REQUIRE A SPECIFIC USE PERMIT. SO WE WOULD BE GETTING A CLOSER LOOK AT THOSE KINDS OF ITEMS THAT YOU JUST LISTED. ALL RIGHT. THANK YOU. SO BOTH THE NEIGHBORHOOD AND CITY COUNCIL WILL HAVE ANOTHER LOOK AT THIS. RIGHT. ANY OTHER COMMENTS OR QUESTIONS. ALL THOSE IN FAVOR OF ITEM NUMBER NINE. PLEASE SIGNIFY BY SAYING I, I ANY OPPOSED MOTION IS CARRIED. AND

[10. Council consider a Specific Use Permit to allow a dialysis center within a GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for property located at 3100 N. Major Drive, Building 3.]

MAY WE HAVE THE READING OF ITEM NUMBER TEN PLEASE? YES, SIR. MAYOR AND COUNCIL, ITEM NUMBER TEN IS TO CONSIDER A SPECIFIC USE PERMIT TO ALLOW A DIALYSIS CENTER WITHIN A G, C, MD2 GENERAL COMMERCIAL AND MULTIFAMILY DWELLING DISTRICT TWO FOR THE PROPERTY LOCATED AT 3100 NORTH MAJOR DRIVE, BUILDING NUMBER THREE, AND AT A JOINT PUBLIC HEARING HELD MAY 18TH, 2026, THE PLANNING COMMISSION RECOMMENDED 8 TO 0 TO APPROVE THIS SPECIFIC USE PERMIT FOR THE DIALYSIS CENTER WITH THE FOLLOWING CONDITIONS. NUMBER ONE SHALL COMPLY WITH ALL APPLICABLE BUILDING AND FIRE CODES, AND NUMBER TWO, CONSTRUCTION PLANS MUST MEET ALL REQUIREMENTS BY WATER UTILITIES FOR ANY WATER AND SANITARY SEWER IMPROVEMENTS, INCLUDING ANY REQUIREMENTS OF THE CITY'S BACKFLOW, PRETREATMENT AND OR FOG PROGRAM, AND THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS SPECIFIC USE PERMIT WITH THE SAME CONDITIONS. IS THERE A MOTION FOR ITEM NUMBER TEN? SO. THERE IS A MOTION AND A SECOND, COUNCILMAN HILLIARD, SECONDED BY COUNCILWOMAN SHERWOOD FOR ITEM NUMBER TEN. IS THERE ANY

[01:15:07]

DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER TEN, PLEASE SIGNIFY BY SAYING AYE.

AYE. ANY OPPOSED? THE MOTION IS CARRIED. ALL RIGHT. AT THIS POINT WE'RE GOING TO MOVE TO

[COUNCIL COMMENTS]

COUNCIL MEMBER COMMENTS. AND COUNCILMAN. JUST WANT TO MAKE SURE THAT SOMEONE FROM STAFF GETS WITH. MR. HARRISON LOOKS INTO HIS CONCERNS ABOUT THE THE DITCH AND THE WALKWAY ACROSS THE DITCH IN HIS NEIGHBORHOOD. THANK YOU, STAFF, FOR YOUR PRESENTATION AND COMPLETION OF THE OF THE 380 DEAL, AND CONGRATULATIONS TO MY GRANDDAUGHTER. SHE GRADUATED FROM HIGH SCHOOL SUNDAY OFF TO A PRAIRIE VIEW UNIVERSITY NOW. AND THAT'S ALL I HAVE. MAYOR.

THANK YOU SIR. COUNCILMAN HILLIARD. I JUST HAVE A QUESTION. LAST NIGHT I WAS AT A NEIGHBORHOOD ASSOCIATION MEETING, AND THE PEOPLE THERE WERE WERE REALLY VOICING CONCERNS ON THE DOOR TO DOOR SALESMAN. AND SO MY QUESTION IS, IS DO WE HAVE ANYTHING IN PLACE THAT SAYS THAT THEY HAVE TO GET SOME KIND OF A PERMIT? CAN WE START CHARGING FOR THAT SAID PERMIT? I MEAN, AND THAT'S, THAT'S COME UP A LOT. AND WHAT IT COMES DOWN TO IS THE GIRL SCOUT BOY SCOUT RULE. AND SO LIKE, IF WE IF WE IMPLEMENTED IT, IT WOULD BE ACROSS THE BOARD, RIGHT? AND SO THEN, YOU KNOW, MY COOKIE CRACK HABIT WOULD BE UP FOR GRABS BECAUSE THEN WE'D HAVE TO GO FIND THE GIRLS. THEY WOULDN'T COME, THEY WOULDN'T BE ABLE TO COME TO MY HOUSE AND KNOCK ON MY DOOR AND, AND ROB ME BLIND. BUT WE'VE TALKED ABOUT IT AND IT'S BEEN WORKSHOP WITH COUNCIL. WE CAN KIND OF BRING IT BACK AND REVISIT IT IF THAT'S SOMETHING COUNCIL'S INTO. BUT I KNOW IT COMES UP A LOT, PARTICULARLY AROUND THE SUMMERTIME. WE HAVE THE KIDS COMING AROUND FOR THEIR ALARMS AND THINGS, BUT WE CAN WE CAN REVISIT IT AND SEE WHAT THAT LOOKS LIKE. BUT WE HAVE TALKED ABOUT IT MULTIPLE TIMES WITH OTHER COUNCILS, AND WHAT YOU GET IS A PARADE OF BEAUTIFUL LITTLE GIRL SAYING, BUT WHAT ABOUT THE GIRL SCOUTS? ON THE FLIP SIDE? RIGHT AT THE FOURTH TIME YOU BOUGHT IT, I DID. I ACTUALLY BOUGHT AT&T FIBER, JUST NOT SHOULD HAVE GONE WITH STARLINK. BUT BUT WE WE CAN'T REVISIT IT. IT'S JUST THAT THE ORDINANCE HAS TO BE WE CAN'T MAKE EXCEPTIONS. SO IT HAS TO BE PRETTY BROAD AND GENERIC ACROSS THE BOARD. WE'VE TALKED ABOUT MAKING EXCEPTIONS FOR LIKE NONPROFITS AND FOR FUNDRAISERS AND FOR THOSE THOSE INCIDENTS. BUT THEN IT JUST BECOMES LIKE, HOW DO YOU ENFORCE THAT? RIGHT? LIKE THEN IT BECOMES AN ENFORCEMENT SITUATION. SO THEN WE'RE LOOKING AT LIKE, DO YOU CALL PD? DO YOU CALL PERMITTING? LIKE, HOW DO YOU, HOW DO YOU ENFORCE WHEN SOMEONE DOESN'T COMPLY? SO THEN YOU HAVE AN ORDINANCE ON THE BOOKS THAT'S KIND OF NOT REALLY BECAUSE BY THE TIME YOU CALL THE POLICE, THEY'RE GONE. OKAY. THANK YOU. AND I JUST WANT TO SAY, YOU KNOW, THANK YOU AGAIN. I DON'T SAY ENOUGH, BUT I HAVEN'T GOTTEN ANY CALLS ON HIGH GRASS OR OR TRASH. I WOULD JUST WANT TO GIVE KENNETH A KUDOS. HE'S REALLY WORKED HARD TO IMPROVE MY WARD, AND I KNOW HE'S DOING IT FOR ALL THE OTHERS. AND I JUST WANT TO SAY THANK YOU. THAT'S IT. THANK YOU, COUNCILMAN HILLIARD. COUNCILMAN TURNER, THANK YOU MAYOR, JUST WANT TO SHOUT OUT JUNETEENTH UPCOMING. ONE OF MY FAVORITE HOLIDAYS IS ACTUALLY APPROACHING, AND THE CITY OF BEAUMONT IS GOING TO PUT ON A GREAT CELEBRATION. IT'S GOING TO BE ON THE INSIDE FOR PEOPLE. SO YOU'RE COOL AND IT'S COMPLETELY FREE TO THE PUBLIC.