[1. Council consider a resolution authorizing an amendment to Resolution No. 24-337 to apply for available Federal tax credits for the Municipal Transit use of CNG fuel.]

OPPOSED. THE MOTION IS CARRIED. MR. CITY MANAGER, WOULD YOU TAKE US INTO ITEM NUMBER ONE? I HAVE TO MOVE IT. YES. WE HAVING A LITTLE TROUBLE WITH OUR MICROPHONE. BEAR WITH ME JUST ONE SECOND.

TO AVOID ANY ANY FURTHER CONFUSION? OKAY, MAYOR AND COUNCIL, ITEM NUMBER ONE ON THE AGENDA IS TO CONSIDER A RESOLUTION AUTHORIZING AN AMENDMENT TO RESOLUTION NUMBER 24337 TO APPLY FOR AVAILABLE FEDERAL TAX CREDITS FOR THE MUNICIPAL TRANSIT USE OF C AND G, COMPRESSED NATURAL GAS FUEL. ON DECEMBER 17TH, 2024, THE CITY COUNCIL APPROVED RESOLUTION NUMBER 24337, AUTHORIZING AN AGREEMENT WITH TRANS TAX ADVISORS OF SAVANNAH,

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GEORGIA TO APPLY FOR AVAILABLE FEDERAL TAX CREDITS UP TO $300,000 RELATED TO THE CITY'S MUNICIPAL TRANSIT. USE OF COMPRESSED NATURAL GAS FOR THE YEARS 2021 THROUGH 2024. THE CREDITS ARE AVAILABLE THROUGH THE INFLATION REDUCTION ACT AND MAY PROVIDE UP TO $0.50 PER GALLON OF ALTERNATIVE FUEL USED BY THE CITY'S TRANSIT BUSSES. TRANS TAX ADVISORS HAS SINCE IDENTIFIED ANOTHER OPPORTUNITY FOR THE CITY TO PURSUE ADDITIONAL TAX CREDITS FOR CNG FUELS USED FROM THE YEARS 2016 THROUGH JUNE OF 2020, WHICH COULD RESULT IN AN ESTIMATED REIMBURSEMENT OF UP TO $468,000. AN AMENDMENT TO RESOLUTION 24337 IS REQUIRED TO AUTHORIZE TRANS TAX TO APPLY FOR THESE ADDITIONAL CREDITS ON THE CITY'S BEHALF. TRANS TAX ADVISORS WILL BE COMPENSATED WITH 25% OF ANY TAX CREDIT REFUNDS RECEIVED BY THE CITY, PER THE CONTRACT. IF THE APPLICATIONS ARE UNSUCCESSFUL, THE CITY WILL INCUR NO COSTS FOR THIS SERVICE, AND THE ADMINISTRATION DOES RECOMMEND APPROVAL OF THIS RESOLUTION. SO MOVE. THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER ONE. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER ONE, PLEASE SIGNIFY BY SAYING I. ANY

[2. Council consider a resolution authorizing the City Manager to execute Change Order No. 1 to the contract with Texas Materials Group, Inc., for the Highland Avenue Roadway Rehabilitation Project.]

OPPOSED. THE MOTION IS CARRIED. WOULD YOU PLEASE TAKE US INTO THE READING OF ITEM NUMBER TWO, MR. CITY MANAGER. ITEM NUMBER TWO IS TO CONSIDER A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CHANGE ORDER NUMBER ONE TO THE CONTRACT WITH TEXAS MATERIALS GROUP, INCORPORATED FOR THE HIGHLAND AVENUE ROADWAY REHABILITATION PROJECT ON FEBRUARY 3RD, 2026. BY RESOLUTION 2632, CITY COUNCIL AWARDED A CONTRACT TO TEXAS MATERIALS GROUP, INC. OF PORT ARTHUR, TEXAS, AND THE AMOUNT OF $8,043,623.10 FOR THE HIGHWAY HIGHLAND AVENUE ROADWAY REHAB PROJECT. THE PROPOSED CHANGE ORDER NUMBER ONE IN THE AMOUNT OF $233,047.70, IS REQUESTED TO ADDRESS ADDITIONAL WORK IDENTIFIED DURING CONSTRUCTION AND ADJUSTMENTS TO THE CONTRACT QUANTITIES. THE PROPOSED CHANGE ORDER INCLUDES INSTALLATION OF WATER LINE FITTINGS AT THE SIDE STREET CONNECTIONS ALONG HIGHLAND AVENUE THAT WERE NOT INCLUDED IN THE ORIGINAL CONSTRUCTION PLANS. IT ALSO INCLUDES QUANTITY ADJUSTMENTS FOR CURB AND PAVEMENT REPAIRS AND THE ADDITIONAL TEMPORARY WORK ZONE PAVEMENT MARKINGS NEEDED TO MAINTAIN TRAFFIC CONTROL THROUGHOUT THE PROJECT. AN ADDITIONAL 30 CALENDAR DAYS ARE ALSO REQUESTED TO COMPLETE THE WORK. IF THE CHANGE ORDER IS APPROVED, THIS WILL INCREASE THE CONTRACT AMOUNT TO $8,276,670.80. FUNDS ARE AVAILABLE THROUGH THIS PROJECT FOR THE PROJECT THROUGH CERTIFICATES OF OBLIGATION, THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS RESOLUTION. IS THERE A MOTION FOR ITEM NUMBER TWO? MOVE TO APPROVE. IS THERE A SECOND? SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER TWO. IS THERE ANY QUESTIONS OR DISCUSSION? YES, COUNCILMAN TURNER, JUST FOR CLARITY. SO RESIDENTS WATCHING ARE PEOPLE WHO MAYBE NOT UNDERSTAND HOW THIS PROCESS WORKS. IS IT A BUDGETED AMOUNT THAT'S NOT TO EXCEED WHEN BIDDING FOR THESE CONTRACTS? OR, YOU KNOW, WHAT ARE THE STIPULATIONS TO IT? SO WE FOR NOT TO EXCEED AMOUNT. THERE IS ONCE THE AWARD IS ISSUED THAT WE CANNOT EXCEED 25% OF THE OVERALL CONTRACT AMOUNT. SO THIS THIS CHANGE ORDER, IF APPROVED, I DON'T HAVE THE EXACT PERCENTAGE. I WILL DIG IT OUT OF HERE. HERE SHORTLY IS A 2.9% INCREASE TO THE TOTAL CONTRACT AMOUNT. ONE OF THE THINGS THAT WHEN WE PREPARED THE CONSTRUCTION DRAWINGS, THIS WAS DONE WITH IN-HOUSE STAFF. WE COULD HAVE DONE A BETTER JOB OF DETAILING HOW THE SIDE STREET WATER LINES WERE GOING TO CONNECT TO THE NEW WATER LINE ON HIGHLAND AVENUE. SO THIS CHANGE ORDER IS TO ADDRESS THIS WORK THAT NEEDED TO BE DONE, WHETHER IT WAS SHOWN ON THE DRAWINGS OR NOT. AND SO WE ARE INCLUDING THESE FITTINGS. AND ALSO TO ONE OF THE LESSONS LEARNED IN THE FOURTH STREET CONSTRUCTION IS THE MAINTENANCE OF THE TEMPORARY TRAFFIC CONTROL PAVEMENT MARKINGS. AND SO BECAUSE THERE'S GOING TO BE A LONGER DURATION OF THIS PAVEMENT MARKINGS, THERE IS GOING TO BE ADDITIONAL COSTS ASSOCIATED WITH THAT AS WELL. AND JUST FOR CLARITY, WE ARE GOING TO REDO HIGHLAND, BUT WE'RE ACTUALLY ADDRESSING SOME OF THE ISSUES UNDERNEATH PRIOR TO DOING THE OVERLAY. ABSOLUTELY. BECAUSE WE DON'T WANT TO PUT DOWN A BRAND NEW ROAD AND THEN HAVE UTILITY ISSUES HAPPEN AND HAVE TO DIG IT BACK UP. YES, MA'AM. THANK

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YOU. THANK YOU, COUNCILMAN HILLIARD. SO HOW FAR ALONG ARE WE ON THE HIGHLAND PROJECT? ARE WE GOING TO SEE MORE CHANGE ORDERS BECAUSE OF STUFF THAT'S UNSEEN ON THE REST OF THE PROJECT? SO WE ARE STILL AT THE BEGINNING. WE HAVE STARTED THE YOU'LL SEE THE AREAS WHERE THE BARRICADES ARE. AND THAT IS WHERE WE'RE MAKING THESE CONNECTIONS FOR THE WATER LINE.

AND ALSO WE HAVE MILLED OFF THE ASPHALT THAT IS SOUTH OF THE SCHOOLS. AND WE ARE SO WE'RE STILL AT THE VERY BEGINNING OF THE PROJECT. SO IS THERE GOING TO BE UNFORESEEN SITE CONDITIONS UNDER THIS PAVEMENT? IN ONE OF THE OLDER PARTS OF BEAUMONT? IT'S VERY POSSIBLE.

SO NONE OF THIS WAS TAKEN INTO CONSIDERATION WHEN WE WENT OUT FOR BID. SO WE'VE JUST BEGUN.

AND WE'RE WE'RE ALREADY AT 233,000. AND SO ONCE WE GET TO THE END, YOU KNOW, I, I, I'M AFRAID TO SAY THAT, YOU KNOW, WE COULD END UP IN THE MILLIONS AND CHANGE ORDERS. SO HOW MY QUESTION IS, IS HOW CAN WE ADDRESS THESE CHANGE ORDERS TO MAKE OUR CONTRACTS BETTER OR MORE IRONCLAD TO WHERE WE DON'T RUN INTO THINGS LIKE THIS? I MEAN, THERE'S GOT TO BE THINGS THAT WE CAN DO TO MITIGATE THESE ADDITIONAL COSTS THAT KEEP COMING UP IN THESE CHANGE ORDERS. SO WE THERE ARE IMPROVEMENTS THAT WE CAN DO ON THE ENGINEERING SIDE TO DO THE SITE EXPLORATION. I THINK I'VE MADE A COMMENT BEFORE. WE DON'T HAVE X-RAY VISION. I CAN'T SEE WHAT WE CAN'T SEE WHAT'S UNDER THE GROUND. JUST LIKE WHEN YOU'RE REPAIRING AN OLDER HOME, YOU CAN'T REALLY SEE WHAT'S INSIDE THE WALLS WITHOUT RIPPING THEM OUT. BUT YOU KNOW, IF YOU'VE DONE ENOUGH OLDER HOMES, YOU KNOW WHAT COULD POSSIBLY BE IN THE WAY? I MEAN, YOU KNOW, WE CAN WE CAN SEE THROUGH WALLS. SO I MEAN, WE CAN DO CORE SAMPLES. WE CAN LOOK AT OLD DRAWINGS. I MEAN, THERE'S GOT TO BE AND ALL OF THAT WAS DONE IN THE PREPARATION OF THE CONSTRUCTION DRAWINGS FOR THIS PROJECT. AND SO THE WORK HAS TO BE DONE. IF WE DIG IT UP AND THERE'S A DEFICIENCY THAT WE FIND UNDER THERE, WHETHER WE PLAN FOR IT IN THE DESIGN OR NOT, WE HAVE TO DO THE WORK AND WE HAVE TO ADDRESS IT. WE CAN'T JUST COVER IT UP. OH, I UNDERSTAND THAT. BUT THAT'S AND THAT'S A LOT OF WHY WE HAVE ENCOUNTERED THE SITUATIONS THAT WE HAVE IS WHERE THINGS MAY OR MAY NOT HAVE BEEN DONE ENTIRELY WELL, WEREN'T DOCUMENTED. WELL, WE ONLY HAVE THE RECORDS THAT WE HAVE. AND SO WHEN WE SEE A DEFICIENCY, WE HAVE TO ADDRESS IT. OKAY. AND REAL QUICKLY, I JUST WANT TO POINT OUT, I KNOW WE'RE STUDYING CHANGE ORDERS. I THINK WE'RE EVEN LOOKING IN THE CHARTER COMMITTEE OR THE CHARTER PROCESS TO TAKE A LOOK AT CHANGE ORDERS. AND I THINK IT PROBABLY AT SOME POINT IN THE NEAR FUTURE, WE CAN DO ANOTHER WORK SESSION ON CHANGE ORDERS. YOU KNOW, WE ALWAYS WE HATE TO SEE THEM, BUT THERE IS A BALANCE. IN OTHER WORDS, YOU CAN YOU CAN SPEND A LOT MORE MONEY ON BASICALLY SURVEYING AND ENGINEERING ON THE FRONT END TO MAKE SURE YOU HAVE NO CHANGE ORDERS. THE OTHER THING IS YOU CAN HAVE AN IRONCLAD CONTRACT TO SAY, YOU KNOW, WE'RE GOING TO VERY MUCH LIMIT THE CHANGE ORDERS, BUT THEN YOU'RE GOING TO HAVE ELEVATED BIDS BECAUSE CONTRACTORS WILL BE RELUCTANT TO TO BID ON WORK IF THEY KNOW THAT, YOU KNOW, THERE'S BUT I UNDERSTAND AT THE SAME TIME, YOU KNOW, I KNOW THAT WE ARE CAUTIOUS. YEAH. SO WE I KNOW WE BUDGET FOR THEM AND I KNOW THAT WE GO THROUGH, YOU KNOW, THE DESIGN PROCESS, THE PROCUREMENT PROCESS, THE AWARD PROCESS. BUT THERE IS A BIT OF A BALANCE. BUT I THINK, YOU KNOW, JUST TO I THINK IT MIGHT HELP TO, TO DO A WORK SESSION ON THE ISSUE SOON. AND JUST TO ECHO WHAT THE MANAGER SAID, WE HAVE LIKE RESEARCH THAT ISSUE BEFORE IN THE NO CHANGE ORDER CONTRACTS, WHICH WAS DONE SEVERAL YEARS AGO IN SAN ANTONIO, ACTUALLY, WHEN THEY WERE DIGGING OUT THE RIVER. SO A LONG TIME AGO WHERE THE PRICES WERE MORE COMPETITIVE RIGHT NOW, WHERE YOU HAVE FLUCTUATION IN THE MARKET A LOT, THEY'LL JUST BUILD IN THAT COST.

SO THEY'LL PASS ON THAT COST. SO YOU'LL SEE A REALLY BIG INCREASE. AND I THINK THE LAST TIME WE WORKSHOPPED THIS WITH COUNCIL, IT WAS ESTIMATED THAT THOSE INCREASES WOULD INCREASE OUR BID PRICES ANYWHERE FROM 15 TO 25% JUST BECAUSE WE BAKING IN THOSE ADDITIONAL COSTS, THOSE BECAUSE THEY WOULD HAVE TO EAT IT ESSENTIALLY. SO IT'S, IT'S A IT'S A KIND OF LIKE WIN WIN. BECAUSE HERE'S THE THING. IF THEY SAY THE PROJECT IS AND I'M USING ROUND NUMBERS, THE PROJECT IS GOING TO COST $1 MILLION. THEY'RE NOT, THEY'RE GOING TO FIND A WAY TO SPEND THE MILLION DOLLARS. THEY'RE NOT GOING TO GIVE US MONEY BACK. RIGHT. SO WE WANT TO. I WOULD RECOMMEND IS NOT GOING THAT ROUTE. WE HAVE LOOKED AT OUR CONTRACTS TO DETERMINE LIKE, IF THEY ARE INDUSTRY STANDARD AND COMPETITIVE IN THE WORDING IN OUR BID CONTRACTS, WE CAN TAKE ANOTHER LOOK AT THAT. BUT WE DID DO THAT TWO YEARS AGO. WITHIN THE LAST TWO YEARS, WE'VE LOOKED AT OUR CONTRACTS FOR CONSTRUCTION. AND SO THEY THEY WERE BEEFED UP AT THAT TIME TO KIND OF ADD ADDITIONAL LANGUAGE. SO NOW CHANGE ORDERS. AND IN WHAT THE REASON WHY YOU SEE SO MANY IS BECAUSE OUR CHANGE AND WE TALKED ABOUT THIS AT THE LAST MEETING, OUR CHANGE ORDER LIMIT IS VERY LOW, AS COUNCILMAN CRENSHAW POINTED OUT, LIKE A $10,000 CHANGE ORDER IN

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SOME CITIES WOULD NEVER COME BEFORE COUNCIL BECAUSE THE LIMIT BY STATE IS TEN IS 50 IN OUR CHARTER ALLOWS REQUIRES FOR TEN. SO YOU SEE A LOT JUST BECAUSE OF THE VALUE OF SOME OF THEM. MOST OF THEM ARE VERY LOW, BUT THERE ARE SEVERAL THAT WE GET ON A DAILY BASIS THAT STAFF REJECTS JUST BECAUSE OF THE LANGUAGE THAT WE INCLUDE IN OUR BIDDING SPECS. SO A CONTRACTOR ISN'T ALLOWED TO PROPOSE A CHANGE ORDER, OR WE DON'T EVEN APPROVE A CHANGE ORDER. THAT'S FOR WORK THAT WAS INSIDE THE SCOPE. SO IF WE TOLD YOU ABOUT IT AND YOU DIDN'T PLAN FOR IT, THAT'S NOT OUR PROBLEM. SO MOST OF THE CHANGE ORDERS IS FOR ADDITIONAL MATERIALS, WHERE WE SAID THAT IT WAS GOING TO TAKE THIS AMOUNT OF MATERIALS, AND IT ACTUALLY TOOK MORE JUST BECAUSE OF THE LENGTH OF THE PROJECT, OR IN THIS CASE, WHERE THEY OPENED UP A PROJECT AND SEE THAT THERE'S ADDITIONAL WORK THAT NEEDS TO BE DONE THAT WASN'T DISCLOSED IN THE PROJECT BID. SO WE CAN TRY TO DO A BETTER JOB AT WIDENING THE SCOPE OF THE PROJECT BIDS. BUT KEEP IN MIND THEY'RE JUST GOING TO BID HIGHER. THANK YOU, COUNCILMAN WILLIAMS, ON THESE JOBS THAT ARE LARGE AND AND KIND OF COULD, YOU KNOW, HAVE THESE UNFORESEEN THINGS COME UP? DO WE INTERNALLY KIND OF BUDGET FOR THAT AND ALMOST EXPECT IT TO HAPPEN? SOME OF YOUR PROJECTS HAVE CONTINGENCY COSTS. AND SO I DON'T I CAN'T SPEAK TO THIS PARTICULAR PROJECT, BUT A LOT OF YOUR YOUR LARGER PROJECTS, ALMOST ALL OF OUR PROJECTS HAVE SOME FORM OF CONTINGENCY COST THAT IS BUILT INTO THE COST OF THE CONTRACT. OKAY. IT'S USUALLY A PERCENTAGE.

MOLLY, CORRECT ME IF I'M WRONG. SO THE LARGER THE PROJECT, THE LARGER THE CONTINGENCY. SO YOU JUST, YOU KNOW, LIKE ANY PROJECT, YOU HAVE THE POTENTIAL TO RUN INTO MORE ISSUES, THE BIGGER IT IS. SO WE ARE ACCOUNTING FOR IT LIKE, OKAY, WELL, LAST QUESTION, COUNCILMAN TURNER AND THIS PROBABLY MORE SO FOR MADAM ATTORNEY. THE 25% IS THAT STATE LAW. IS THAT SOMETHING THAT THE CITY SAYS? NO. SO THE 25% IS STATE LAW. AND SO WE ADHERE TO THAT. YOUR CHARTER REQUIRES ANY CHANGE ORDER IN THE AMOUNT OF $10,000 TO GO TO COME TO COUNCIL, AND THEN THE 25% OF IT IS OVER THAT AMOUNT, THE CHANGE ORDER, THEN WE HAVE TO START A NEW PROCESS.

SO WE HAVE TO KIND OF DETERMINE WHAT THAT IS. SO MOST OF OUR CONTRACTS ARE PHASES. AND SO MOST OF THEM ARE DONE IN PHASES. EVEN IF WE BID THE FULL WE DONE IN PHASES. SO IT'S PER YOU LOOK AT THE OVERALL PERCENTAGE OF THE CONTRACT, BUT ALSO YOU LOOK AT THE PHASE TO MAKE SURE THAT WE'RE STAYING UNDER THAT 25% BY LAW. AND LASTLY, MAYBE THAT INCREASE CAN BE SOMETHING SINCE WE HAD A CHARTER REVIEW COMMITTEE PUT SOMETHING TOGETHER. I DON'T KNOW IF THAT'S SOMETHING WE LOOKED AT, BUT, YOU KNOW, JUST TO KIND OF LIMIT THE AMOUNT THAT ARE COMING TO US, ESPECIALLY IF IT'S STATE LAW, THAT IT CAN GO UP TO 50,000. IT WAS IT WAS PROPOSED SO THAT THE CHARTER DID MEET. AND SO THERE THAT WE PUT TOGETHER WHAT THE COUNCIL PROPOSED AND ALSO WITH STAFF PROPOSED. AND SO THEY'LL THEY'LL BE REVIEWING THAT. SO WE'LL BE DISCUSSING THAT WITH THEM AT AN UPCOMING MEETING TO DETERMINE. OKAY. THANK YOU. ANY OTHER DISCUSSION? ALL THOSE IN FAVOR OF ITEM NUMBER TWO, PLEASE SIGNIFY BY SAYING AYE.

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

[3. Council consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with Elite Contractors for the Athletic Complex – Rehabilitation of Parking Lots and Engelbrecht Drive Project.]

NUMBER THREE, SIR? ITEM NUMBER THREE IS TO CONSIDER RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NUMBER TWO TO THE CONTRACT WITH ELITE CONTRACTORS FOR THE ATHLETIC COMPLEX. REHABILITATION OF THE PARKING LOTS AND ENGELBREKT DRIVE PROJECT. NOVEMBER 4TH, 2025. BY RESOLUTION 25282, CITY COUNCIL AWARDED A CONTRACT TO ELITE CONTRACTORS IN THE AMOUNT OF $1,588,922 FOR THE ATHLETIC COMPLEX PARKING LOT AND INGLEWOOD DRIVE PROJECT, A CHANGE ORDER NUMBER ONE, THE AMOUNT OF -$350 IS ATTACHED FOR YOUR REVIEW. PROPOSED CHANGE ORDER NUMBER TWO IN THE AMOUNT OF $57,630 IS REQUESTED TO ADDRESS ADDITIONAL ADDRESS.

ADDITIONAL CONCRETE REPAIRS IDENTIFIED DURING CONSTRUCTION AFTER THE MILLING AND REMOVING REMOVAL OF THE EXISTING ASPHALT SURFACE. ADDITIONAL AREAS OF DETERIORATED CONCRETE WERE IDENTIFIED THAT WERE NOT VISIBLE DURING INITIAL PROJECT EVALUATION. TO COMPLETE THE PROJECT, AN ADDITIONAL 339YD■!S OF CONCRETE REPAIR IS REQUIRED. IN ADDITION, THEY'RE REQUESTING 40 ADDITIONAL CALENDAR DAYS TO ACCOMMODATE THE ADDITIONAL WORK. IF APPROVED, THE CHANGE ORDER NUMBER TWO WILL INCREASE THE CONTRACT AMOUNT TO $1,646,202. THESE FUNDS. THIS PROJECT IS FUNDED BY CERTIFICATES OF OBLIGATION, AND THE ADMINISTRATION DOES RECOMMEND APPROVAL OF THE RESOLUTION. IS THERE A MOTION ON ITEM NUMBER THREE? MOVE TO APPROVE. SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER THREE. IS THERE ANY QUESTIONS? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER THREE. PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED. THE MOTION IS CARRIED. MR. CITY MANAGER MAY WE HAVE THE READING OF ITEM NUMBER FOUR,

[4. Council consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with ALLCO, LLC, for the Street Rehabilitation Citywide - Phase VI Project.]

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PLEASE? YES. ITEM NUMBER FOUR IS TO CONSIDER RESOLUTION AUTHORIZING CITY MANAGER TO EXECUTE CHANGE ORDER NUMBER TWO IN THE CONTRACT WITH ALCO LLC FOR THE STREET REHABILITATION CITYWIDE PHASE SIX PROJECT ON JULY 1ST, 2025. BY RESOLUTION 25146, CITY COUNCIL AWARDED A CONTRACT TO ALL CO, LLC OF BEAUMONT IN THE AMOUNT OF $6,927,234.95 FOR THIS PROJECT.

PREVIOUS CHANGE ORDER NUMBER ONE IN THE AMOUNT OF $9,571.11 IS ATTACHED FOR YOUR REVIEW.

PROPOSED CHANGE ORDER NUMBER TWO IN THE AMOUNT OF $232,265 IS REQUESTED DUE TO SITE CONDITIONS ENCOUNTERED DURING CONSTRUCTION OF WILLIS LANE, SAN CARLOS STREET, SAN DIEGO STREET AND MILAM STREET. DURING CONSTRUCTION, PAVEMENT CONDITIONS IN CERTAIN AREAS WERE FOUND TO BE MORE EXTENSIVE THAN ORIGINALLY IDENTIFIED. AS A RESULT, THE SCOPE OF WORK WAS REVISED TO INCLUDE MIXING THE FULL SHOULDER WIDTH AND ADDING A LEVELING COURSE OF ASPHALTIC CONCRETE PAVEMENT IN LIEU OF LIMITED BASE REPAIRS WITH A SURFACE OVERLAY. ADDITIONAL ASPHALT STABILIZED BASE REPAIRS WERE ALSO REQUIRED TO ADDRESS BASE FAILURES THAT BECAME EVIDENT AFTER CONSTRUCTION BEGAN. IF APPROVED, THE CHANGE ORDER NUMBER TWO WOULD INCREASE THE CONTRACT AMOUNT TO $7,169,071.06, AND ADD 30 CALENDAR DAYS TO THE CONTRACT TIME. FUNDING IS AVAILABLE THROUGH CERTIFICATES OF OBLIGATIONS, AND THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS RESOLUTION. IS THERE A MOTION FOR ITEM NUMBER FOUR? IS THERE A SECOND? SECOND, IS THERE ANY DISCUSSION ON ITEM NUMBER FOUR? COUNCILMAN TURNER, CITY MANAGER. BOOM. YOU YOU SAID IT WAS PHASE SIX. CAN YOU JUST EXPLAIN TO THE COMMUNITY BECAUSE, YOU KNOW, OFTEN WE HEAR THINGS ABOUT OUR STREETS AND WHAT THE CITY COULD BE DOING THAT'S NOT DOING FOR US TO BE AT PHASE SIX CAN KIND OF EXPLAIN THE THOUGHT PROCESS OF THE PHASES AND HOW MANY WE HAVE AND HOW SUCCESSFUL WE'VE BEEN. YES. SO I'LL DEFER TO MOLLY ON A LITTLE BIT DETAIL, BUT IN GENERAL, THE CITY COUNCIL HAS SPENT, I WOULD SAY, THE LAST SEVERAL YEARS. I THINK IT'S FAIR TO SAY, PLAYING SOME CATCH UP WITH OUR STREETS. AND SO A LOT OF A LOT OF WHAT WE'VE BEEN DOING IS A STREET ASSESSMENT. AND SO WE ACTUALLY HIRED A FIRM MANY YEARS AGO TO BASICALLY GO OUT AND DRIVE AND DO A SURVEY OF EVERY CITY STREET IN THE CITY AND GRADED IT ON A SYSTEM A, B, C, D, E, WHETHER IT'S CONCRETE, ASPHALT, WHAT HAVE YOU, AND BASICALLY SCORED THE WHOLE CITY. THE OTHER THING THAT WAS DONE IS COUNCIL FOR THE LAST MANY YEARS HAS REALLY INCREASED THE AMOUNT OF CAPITAL FUNDING. GOING TO STREET REHAB, I THINK IT'S APPROXIMATELY HAS BEEN APPROXIMATELY ABOUT $2 MILLION A YEAR PLUS ADDITIONAL.

AND SO THIS IS PHASE SIX. WE'VE HAD MULTIPLE PHASES. AND, YOU KNOW, AT SOME POINT WE MAY WANT TO GIVE YOU ALL AN UPDATE. WE DO HAVE ON THE PUBLIC WORKS MAP. WE HAVE A VERY, I THINK, A PRETTY GOOD DISPLAY IN TERMS OF PHASES ONE THROUGH SIX AND WHERE BASICALLY WHAT STREETS ARE BEING REHABBED, WHERE THEY'RE BEING REHABBED, AND WHAT'S STILL PENDING. IN ADDITION, YOU KNOW, WELL, I THINK AT THIS POINT I'LL TURN IT OVER TO MOLLY TO SEE IF YOU CAN GIVE US A LITTLE ADDITIONAL INFORMATION. BUT JUST TO SAY THAT IT HAS BEEN A PRIORITY OF COUNCIL RECENTLY. YES. SO TO EXPAND ON CITY MANAGER MOON'S COMMENTS. SO WE ARE ACTUALLY TRYING WE'RE ENDEAVORING RIGHT NOW TO PERFORM THAT PAVEMENT CONDITION INDEX SURVEY OF OUR CITY STREETS EVERY 2 TO 3 YEARS. AND THAT IS AN EFFORT THAT IS CURRENTLY UNDERWAY RIGHT NOW.

YOU CAN GO ON THE CITY OF BEAUMONT PUBLIC WORKS WEBSITE, AND THERE IS A MAP THAT SHOWS IS A COLOR CODED SCORING OF THE CONDITION OF EACH SEGMENT OF THE ROADS. AS OF THE SURVEY THAT WAS PERFORMED IN 2021, AND THAT WHAT WHAT THAT ULTIMATELY DOES IS ASSIGN A GRADE TO OUR CITY STREETS, AND THAT IS OUR PAVEMENT CONDITION SCORE. AND THEN PART OF THAT DETAIL THEN IS WHAT AT WHAT LEVEL DOES THE CITY NEED TO INVEST TO MAINTAIN THAT SCORE OR IMPROVE THAT SCORE, OR TO LET THAT SCORE DETERIORATE? CONSIDERING OUR SOIL CONDITIONS THAT WE HAVE IN OUR TRAFFIC LOADS? AND SO CURRENTLY, NOW WE'RE SPENDING IN OUR STREET REHAB ANYWHERE FROM 6 TO $7 MILLION PER YEAR IN STREET REHAB. AND THAT DOESN'T COUNT OUR PAYMENT

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PRESERVATION AND OUR CONCRETE CURB AND GUTTER AND PAVEMENT REPAIRS AS WELL. SO IT'S ABOUT ALMOST $13 MILLION EVERY TWO YEARS THAT WE SPEND ON MAINTAINING OUR ROADS. OKAY.

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

[5. Council consider a resolution authorizing the purchase of a new 20,000-gallon Fuel Tank and related appurtenances from Mustang CAT for the City of Beaumont Pine Street Surface Water Treatment Plant (SWTP) Generators.]

WE HAVE THE READING OF ITEM NUMBER FIVE, PLEASE? ITEM NUMBER FIVE IS TO CONSIDER A RESOLUTION AUTHORIZING THE PURCHASE OF A NEW 2000 GALLON FUEL TANK AND RELATED APPURTENANCES FROM MUSTANG CAT FOR THE CITY OF BEAUMONT, PINE STREET. SURFACE WATER TREATMENT PLANT GENERATORS. THE CITY OF BEAUMONT OPERATES THREE PERMANENT GENERATORS AT THE PINE STREET SURFACE WATER TREATMENT PLANT TO PROVIDE BACKUP POWER DURING OUTAGES.

THE WATER UTILITIES DEPARTMENT IS PREPARING A GENERATOR IMPROVEMENT PROJECT AT THE PINE STREET STORM TREATMENT PROGRAM. THE PROJECT INCLUDES REPLACEMENT OF THE OLDEST GENERATOR WITH A NEW PRE-PURCHASED UNIT, AND INSTALLATION OF A 2000 GALLON FUEL TANK TO SERVE ALL THREE GENERATORS. THE PROPOSED TANK IS DESIGNED TO PROVIDE A MINIMUM OF FOUR DAYS OF CONTINUOUS GENERATOR OPERATION DURING EXTENDED POWER OUTAGES.

THE TOTAL COST FOR THE FUEL TANK AND RELATED EQUIPMENT IS, IF APPROVED, IS $336,200. FUNDS ARE AVAILABLE THROUGH WATER REVENUE BONDS. THE ADMINISTRATION RECOMMENDS APPROVAL. IS THERE A MOTION FOR ITEM NUMBER FIVE? SO MOVED. IS THERE A SECOND? THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER FIVE. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER FIVE. PLEASE SIGNIFY BY SAYING I, I. ANY OPPOSED. THE MOTION IS CARRIED. MR. CITY MANAGER MAY WE HAVE THE READING OF ITEM NUMBER SIX,

[6. Council consider a resolution authorizing the City Manager to enter into an agreement with Berridge Services, LLC for economic development incentives under the Neighborhood Empowerment Zone Program for the development of an office building at 3420 Concord Road.]

SIR. ITEM NUMBER SIX IS TO CONSIDER RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH BEVERAGE SERVICES, LLC FOR ECONOMIC DEVELOPMENT INCENTIVES UNDER THE NEIGHBORHOOD EMPOWERMENT ZONE PROGRAM FOR THE DEVELOPMENT OF AN OFFICE BUILDING AT 3420 CONCORD ROAD, THE CITY ESTABLISHED THE EMPOWERMENT ZONE PROGRAM TO ENCOURAGE FURTHER DEVELOPMENT AND REVITALIZATION WITHIN THE AREA OF BEAUMONT. THIS AREA OF BEAUMONT. RATHER, THE PURPOSE OF THE ZONE IS TO OFFER ECONOMIC INCENTIVES IN THE AREA TO ATTRACT NEW BUSINESSES AND RESIDENCES, AS WELL AS ENCOURAGE THE REDEVELOPMENT OR GROWTH OF EXISTING BUSINESSES AND RESIDENCES. BEVERAGE SERVICES, LLC IS REQUESTED TO RECEIVE THE FOLLOWING INCENTIVES TO AID IN THE DEVELOPMENT OF AN OFFICE BUILDING. THEY'RE REQUESTING THREE YEAR, 100% INCREMENTAL CITY TAX ABATEMENT, BUILDING FEE WAIVERS, AS WELL AS EXPEDITED PERMIT REVIEW. THEIR PROPOSAL INCLUDES THE APPROXIMATE INVESTMENT OF $150,000 FOR THE OFFICE BUILDING. THE ADMINISTRATION RECOMMENDS APPROVAL. IS THERE A MOTION FOR ITEM NUMBER SIX? SECOND, THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER SIX. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER SIX, PLEASE SIGNIFY BY SAYING I, ALL RIGHT. ANY OPPOSED? THE MOTION

[7. Council consider a resolution approving a contract with Schaumburg & Polk, Inc., of Beaumont, Texas, for Request for Proposals (RFP) for Water Supply and Infrastructure Grant Engineering Services.]

IS CARRIED. MR. CITY MANAGER, MAY WE HAVE THE READING OF ITEM NUMBER SEVEN? YES, SIR. ITEM NUMBER SEVEN IS TO CONSIDER RESOLUTION APPROVING A CONTRACT WITH SCHAUMBURG AND POLK INCORPORATED OF BEAUMONT, TEXAS, FOR A REQUEST FOR PROPOSAL FOR WATER SUPPLY AND INFRASTRUCTURE GRANT ENGINEERING SERVICES. THE CITY IS PURSUING FUNDING THROUGH THE WATER SUPPLY AND INFRASTRUCTURE GRANT PROGRAM ADMINISTERED, ADMINISTERED BY THE TEXAS WATER DEVELOPMENT BOARD. THE PROGRAM WAS ESTABLISHED THROUGH HOUSE BILL 500 DURING THE 89TH TEXAS LEGISLATURE THAT APPROPRIATED $1.38 BILLION IN FUNDS FOR WATER SUPPLY AND INFRASTRUCTURE PROJECTS. BASED ON THE POPULATION OF BEAUMONT, WE ARE ELIGIBLE FOR FUNDING OF UP TO $15 MILLION. UNDER THIS PROGRAM. THE CITY ISSUED A SOLICITATION FOR PROFESSIONAL ENGINEERING SERVICES TO ASSIST WITH THE APPLICATION PREPARATION, PREPARATION AND, IF AWARDED, ONGOING PROJECT ENGINEERING. A TOTAL OF 454 VENDORS WERE NOTIFIED VIA EMAIL, AS WELL AS ADVERTISE IN THE CITY'S WEB PAGE, AS WELL AS LOCAL NEWSPAPER. THREE RESPONSES WERE RECEIVED AND EVALUATED BY CITY STAFF. THE CRITERIA AND SCORES FOR THE EVALUATIONS ARE ATTACHED. STAFF RECOMMENDS SELECTING SCHAUMBURG AND POLK TO PROVIDE THE ENGINEERING SERVICES. THE SELECTED FIRM WILL COOPERATE WITH THE CITY AND THE GRANT ADMINISTRATOR TO SUPPORT PROJECT DEVELOPMENT, APPLICATION SUBMISSION AND COMPLIANCE WITH ALL DT DB REQUIREMENTS. THE FUNDING FOR THIS WOULD BE 100% GRANT FUNDED, AND THE ADMINISTRATION

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RECOMMENDS APPROVAL. IS THERE A MOTION FOR ITEM NUMBER SEVEN? SO MOVE. IS THERE A SECOND? THERE'S A MOTION IN A SECOND. COUNCILMAN WILLIAMS IS THE SECOND. COUNCILMAN HILLIARD, IS THERE ANY DISCUSSION ON ITEM NUMBER SEVEN? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER SEVEN? PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? THE MOTION IS CARRIED. MR. CITY

[8. Council consider a resolution approving a contract with Gary R. Traylor & Associates, Inc., of Tyler, Texas, for Request for Proposals (RFP) for Water Supply and Infrastructure Grant Administration Services.]

MANAGER, MAY WE HAVE THE READING OF NUMBER EIGHT? YES, SIR. ITEM NUMBER EIGHT IS A RESOLUTION APPROVING A CONTRACT WITH GARY R TRAYLOR AND ASSOCIATES INCORPORATED OF TYLER, TEXAS, FOR REQUEST FOR PROPOSALS FOR WATER SUPPLY AND INFRASTRUCTURE GRANT ADMINISTRATION SERVICES. THE CITY IS PURSUING FUNDING THROUGH THE TEXAS THROUGH THE WATER SUPPLY AND INFRASTRUCTURE GRANT ADMINISTERED BY THE TEXAS WATER DEVELOPMENT BOARD. THE CITY ISSUED AN RFP FOR GRANT ADMINISTRATION SERVICES TO ASSIST WITH THE APPLICATION PREPARATION, PREPARATION AND, IF AWARDED, ONGOING GRANT ADMINISTRATION. TOTAL OF 454 VENDORS WERE NOTIFIED VIA EMAIL, AS WELL AS ADVERTISING IN THE CITY'S WEB PAGE IN THE LOCAL NEWSPAPER. WE RECEIVED 66 RESPONSES, AND THEY WERE EVALUATED BY CITY STAFF. THE CRITERIA OF THAT EVALUATION IS ATTACHED. STAFF RECOMMENDS SELECTING GARY R TRAILER AND ASSOCIATES TO PROVIDE GRANT ADMINISTRATION SERVICES. THE SELECTED FIRM WILL COORDINATE WITH THE CITY AND THE PROJECT ENGINEER TO SUPPORT PROJECT DEVELOPMENT, APPLICATION SUBMISSION, AND COMPLIANCE WITH TWB REQUIREMENTS. THIS TWO IS WOULD BE 100% FUNDED BY THE GRANT. THE ADMINISTRATION RECOMMENDS APPROVAL. IS THERE A MOTION FOR ITEM NUMBER EIGHT? MOVE TO APPROVE. SECOND, THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER EIGHT. IS THERE ANY DISCUSSION? ALL THOSE IN FAVOR OF APPROVING ITEM NUMBER EIGHT. PLEASE SIGNIFY BY SAYING AYE. AYE. ANY OPPOSED? THE MOTION IS CARRIED. MR. CITY MANAGER, MAY WE HAVE

[9. Council consider a resolution to accept a donation of $5,000 from ITEX for the purpose of relocating a bus shelter.]

THE READING OF ITEM NUMBER NINE? ITEM NUMBER NINE IS TO CONSIDER RESOLUTION TO ACCEPT A DONATION OF 500. EXCUSE ME. 5000 FROM THE ETEX CORPORATION FOR THE PURPOSE OF RELOCATING A BUS SHELTER. CHRIS ATTEBERRY VITEX HAS COMMITTED TO DONATE $5,000 TO THE CITY OF BEAUMONT FOR THE SOLE PURPOSE OF FUNDING THE RELOCATION OF AN UNUSED BUS SHELTER FROM FLORIDA AVENUE TO SERVE THE RESIDENTS OF ABIDING GRACE APARTMENTS. CITY COUNCIL APPROVAL BY RESOLUTION IS REQUIRED TO FORMALLY ACCEPT THE DONATION, AND THE ADMINISTRATION RECOMMENDS APPROVAL OF THIS RESOLUTION. AND I SHOULD POINT OUT, I THINK COUNCILMAN CRENSHAW WAS CRITICAL IN ESTABLISHING THIS DONATION. SO WITH THAT, WE RECOMMEND APPROVAL. IS THERE A MOTION FOR ITEM NUMBER NINE? SO MOVED. SECOND, THERE WAS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER NINE. IS THERE ANY DISCUSSION, COUNCILMAN TURNER? YEAH. JUST SHOUT OUT TO COUNCILMAN CRENSHAW. YOU KNOW, A LOT OF PEOPLE TALK ABOUT WHAT THEY'RE GOING TO DO, BUT I MEAN, IT'S ACTIONS OVER WORDS AND JUST TO GO OUT AND WORK THAT FOR OUR CITIZENS WHO ARE SOMETIMES STANDING OUT IN THE RAIN IN THAT PARTICULAR AREA. JUST WANT TO LET YOU KNOW IT'S APPRECIATED. I'LL SECOND. GOOD JOB. ANYTHING ELSE? DO WE HAVE THE CHECK? I NEED TO GO COLLECT IT. I FEEL LIKE WE CAN. WE CAN FIND MR. BERRY. I'M GOOD AT COLLECTIONS. ALL RIGHT. ALL THOSE IN FAVOR OF ACCEPTING OF APPROVAL OF ITEM NUMBER NINE.

PLEASE INDICATE BY SAYING I. AYE. ANY OPPOSED? THE MOTION IS CARRIED. MR. CITY MANAGER, MAY

[10. Council consider a resolution authorizing the City Manager to award a contract to LZ Services, LLC, of Lumberton, Texas for the Prison Ground Storage Tank (GST) Day Tank Slab REBID Project.]

WE HAVE THE READING OF ITEM NUMBER TEN? YES, SIR. ITEM NUMBER TEN IS A RESOLUTION AUTHORIZING THE CITY MANAGER TO AWARD A CONTRACT TO LS SERVICES, LLC OF LUMBERTON, TEXAS, FOR THE PRISON GROUND STORAGE TANK DAY TANK SLAB REBID PROJECT. THE CONTRACT INCLUDES THE CONSTRUCTION OF A CONCRETE FOUNDATION FOR A FUEL TANK AND THE INSTALLATION OF THE TANK TO SUPPORT GENERATOR OPERATIONS AT THE CITY'S PRISON TANK SITE. CITY OPERATES A GROUND AND ELEVATED STORAGE TANK AT THIS FACILITY, LOCATED NEAR THE INTERSECTION OF 69 AND RANGE ROAD IN THE SOUTHEAST PORTION OF THE CITY. MAY 21ST, 2026 FOUR BIDS WERE RECEIVED FOR FURNISHING ALL LABOR MATERIALS AND EQUIPMENT FOR THE PROJECT. THE ENGINEER'S ESTIMATE FOR THE.

THE BID TOTALS ARE LISTED BELOW. FOLLOWING A REVIEW OF THE BIDS RECEIVED AND VERIFICATION OF THE CONTRACTOR'S REFERENCES, SCHAUMBURG AND POLK RECOMMENDS AWARDING THE CONTRACT FOR BASE BID ITEMS ONE THROUGH FIVE TO LHS SERVICES LLC IN THE AMOUNT OF $87,000. LHS SERVICES LLC IS

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