September 23, 2024 J
REGULAR MEETING OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND
4:30 p.m. September 23,2024
1. MEETING
The meeting was called to order at 4:37 p.m. by Mayor Albanese at the Nederland City
Office Building, 207 N. 12th Street,Nederland, Texas. See attached for quorum.
The following statement was posted:
"PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE
HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED
UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN
LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN
THAT IS CARRIED OPENLY."
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and Pledge of Allegiance was led by William Spell.
3. CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate discussion
of these items unless a councilmember so requests, in which event the item will be
removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Root and seconded by Councilmember Guillot to
approve the Consent Agenda Item"a thru c" as presented. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
a. Minutes—September 9, 2024 regular meeting
b. August 2024 Departmental Reports
c. Tax Assessor Collection Report—August 2024
5. EXECUTIVE SESSION
The first section of the Executive Session, Personnel—Texas Government Code, Chapter
551.074, Discuss personnel — City Manager, was moved to the first item on the regular
agenda.
The regular meeting was recessed at 4:40 p.m. by Mayor Albanese for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Personnel —
Texas Government Code, Chapter 551.074,Discuss personnel—City Manager.
6. RECONVENE
The regular meeting was reconvened at 5:30 p.m. by Mayor Albanese.
Minutes continued, September 23, 2024
4. REGULAR AGENDA
a. The City Manager read the summary of the proposed revisions to the Employment
Agreement and noted the proposal was reviewed by the City Attorney to ensure
compliance with law including the City Charter. A motion was made by
Councilmember Root and seconded by Councilmember Guillot to approve an
amendment to the Employment Agreement between the City of Nederland and
Christopher Duque. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier, and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
Jeff Darby, 1515 N. 26th St.,Nederland, stated he feels that the City Manager's
Employment Agreement language conflicts with the city's charter language.
Mayor Don Albanese stated that the City is developing a master plan that will have goals
and key performance indicators to be utilized by the council and city manager to track the
progress of our city.
b. A motion was made by Councilmember Root and seconded by Councilmember Duplant
to approve a request from Adaptive Sports for Kids to utilize Doombos Park for their
fishing derby on October 5th. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
c. A motion was made by Mayor Pro Tern Sonnier and seconded by Councilmember
Guillot to re-appoint Mitch Macon,Bret Duplant, and Don Albanese to the Nederland
Economic Development Board of Directors. MOTION CARRIED.
AYES: Councilmembers Root,Sonnier, and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tern Sonnier
ABSTAINING: Mayor Albanese, Councilmember Duplant
d. A motion was made by Councilmember Root and seconded by Mayor Pro Tem Sonnier
to amend the Nederland Youth Athletic League Utility Reimbursement Policy.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
e. A motion was made by Councilmember Guillot and seconded by Councilmember
Duplant to approve an Interlocal Agreement for Municipally owned Building Energy
Efficiency Retrofits Program between the City of Nederland and the Texas Comptroller
of Public Accounts, State Energy Conservation Office. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
f. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember Root
Minutes continued, September 23, 2024
to approve Ordinance No. 2024-20, declaring certain utility accounts as"uncollectable."
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier, and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tern Sonnier
g. A motion was made by Mayor Pro Tern Sonnier and seconded by Councilmember
Guillot to declare surplus a patrol vehicle from the Nederland Police Department.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
h. A motion was made by Councilmember Root and seconded by Councilmember Duplant
to approve Ordinance No. 2024-21, amending the fiscal year 2023-2024 budget.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier, and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
i. A motion was made by Councilmember Root and seconded by Councilmember Guillot
to approve Change Order No. 1 —2024 HMAC (hot mix overlay)Program, in the
amount of$221,910. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root, Sonnier, and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tern Sonnier
j. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Duplant to approve Ordinance No. 2024-22, denying the Statement of Intent of Texas
Gas Service Company, a division of One Gas, Inc. to increase rates within the
incorporated areas of the Central-Gulf Coast Service Area. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
ATTENDING VIA ZOOM: Mayor Pro Tem Sonnier
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:52 p.m. by Mayor Albanese for the purpose of
conducting an Executive Session as authorized by Texas Government Code,
Deliberations about Real Property—Texas Government Code, Chapter 551.072 regarding
the purchase, exchange, lease, or value of the real property located at 1308 Boston
Avenue; Deliberations about Real Property—Texas Government Code, Chapter 551.072.
6. RECONVENE
The regular meeting was reconvened at 6:09 p.m. by Mayor Albanese.
7. Mayor Albanese announced the Executive Session was held for informational purposes
only and no action is necessary.
Minutes continued, September 23, 2024
8. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 6:11 p.m.
on Albanese, Mayor
City of Nederland, Texas
ATTEST:
Oe `C ooq1
Joni` nderwood, City Clerk
City of Nederland, Texas
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CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
Don Albanese Mayor
Bret Duplant Council Member—Ward I
Sylvia Root Council Member—Ward II ✓
Randy Sonnier Council Member—Ward III V/ 13j Zollrir
David Guillot Council Member—Ward IV
Chris Duque City Manager
Joni Underwood City Clerk ✓
Chris Leavins City Attorney
Heather Stucker Director of Finance ✓,
Gary Porter Police Chief
Terry Morton Fire Chief
Robert Woods Director of Public Works
George Wheeler Building Official
Molli Hall Librarian
Holly Guidry Human Resources Director k
Toby Latiolais Parks Director
abeif
on Albanese, Mayor
• P(MtdeAUD-Ogi
Joni U /•erwood, City Clerk
9-23-24
Date
7-c. —, -.• ,,
TgRRY WuENsH
CEL, PCC-;
- INTERIM TAX ASSESSOR-COLLECTOR
-114,----- )4-,,
JEFFERON:PPtiNrf,TEXAS
'
STATEOF TEXAS
QOUNTY.OF JEFFERSON
1:,. Terry I;Vuongefiel, i?....CC.. the Tax A§s9.40r-Ogjectot. of Jefferson County,
Texas and also 'by contract.pt: *tute,, the Tax. Mses86PCollectot for CITY OF
INEIIPERIAISTIo,a.friiiii, Wider oath,thdt this amount$17,707*,iropresera5 411 taxes
colledtta for CITY'OF NEDEALANDclutin' g fhthof Augitst 2024:
ji44,6-IL
Terry.WiretiSohdli P:C:C:.
MAILING ADDRESS • :PO..Box 21 I a:* BEAUMONT,TEXAS 777042.1.12
PHirsiCALI;HA6DNDER:E:610%,..81:31 PEARL .45.98
160FAXB:40ur83i:E589
11: s 77761
ORDINANCE NO.2024-20
AN ORDINANCE ACCEPTING UTILITY ACCOUNTS
RECEIVABLE CHARGE-OFFS IN THE AMOUNT OF
$10,290.54 AS SHOWN IN ATTACHMENT"A"FOR THE
YEAR ENDED 9-30-24 IN THE CITY OF NEDERLAND.
WHEREAS,Generally Accepted Accounting Practices require that uncollectible
accounts receivable be written off to reflect accurate revenues;and,
WHEREAS,based on auditor recommendations it is desirable to present
uncollectible accounts to be charged off,
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF
THF CITY OF NEDERLAND,TEXAS:
Section 1.The City of Nederland's book of accounts of the Water
Billing/Collecting Department are hereby corrected to reflect the following charge-offs
for fiscal year 2023-24 in the amount of$10,290.54 as set forth in Attachment"A."
Section 2.Charge-offs affected by this Ordinance are for accounting purposes
only and are not to be construed as a release or forgiveness of indebtedness by the City.
This provision shall in no way be construed to waive or discharge or dispense with the
continued application of Section 106-32 of the Code of Ordinances concerning the
accounts hereby affected.
THAT this being an ordinance not requiring publication,it shall be effective from
and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND AT A REGULAR MEETING THIS THE 23rd day of September
A.D.,2024.
`Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
0/11dehillt* \0011111111/1/////
Joni nderwood,City Clerk ;• Q.• •••
City of Nederland,Texas '` •`� of
APPROVED AS TO FORM AND LEGALITY: •Q .AFF :
gpl,,,II II»I„"
Chris Leav' , ity Attorney
City of Nederland,Texas
ATTACHMENT"A"
CITY OF NEDERLAND
ACCOUNTS TO BE WRITTEN OFF FOR FYE 2023-2024
Account Number Amount
02-0620-05-0 36.68
02-1020-04-0 61.79
02-1030-03-0 86.73
02-2100-16-0 59.69
02-2110-00-0 74.64
02-2280-00-0 184.70
03-0170-00-0 62.04
03-0490-20-0 32.91
03-0970-23-0 110.70
04-1500-02-0 87.32
04-2045-10-0 432.26
04-4780-05-0 285.96
05-1640-13-0 226.61
05-1800-09-0 76.43
05-1820-02-0 68.59
05-3710-11-0 105.43
05-3950-25-0 72.58
05-3951-24-0 271.56
06-0580-20-0 170.01
06-0810-06-0 15.47
06-1670-04-0 100.39
06-1970-09-0 161.42
06-3100-12-0 30.58
07-0960-13-0 232.67
08-0260-03-0 440.52
08-2910-00-0 38.17
08-2910-01-0 32.91
09-1340-00-0 33.92
09-2180-02-0 411.73
10-0270-06-0 133.38
10-4000-03-0 117.92
11-0530-10-0 50.35
11-1420-15-0 12.58
11-1590-06-0 35.18
11-2030-07-0 78.22
11-2940-01-0 30.56
11-3192-05-0 26.02
12-0290-10-0 147.61
12-0370-03-0 390.31
12-1540-11-0 91.46
13-0130-07-0 11.32
13-0910-19-0 155.30
13-0950-36-0 38.96
13-0960-33-0 41.13
14-0150-08-0 176.77
15-0180-00-0 79.68
a '
15-0400-10-0 179.53
15-1650-03-0 118.29
15-1850-13-0 212.22
15-2900-01-0 120.41
16-1040-21-0 41.78
16-1340-25-0 99.02
17-0040-01-0 48.42
17-0140-06-0 254.44
17-0270-00-0 37.49
17-1150-02-0 226.10
17-1225-12-0 1,402.25
17-1290-09-0 118.53
19-0620-05-0 79.25
19-2020-07-0 35.35
19-2370-19-0 27.62
19-2530-09-0 37.19
20-0325-05-0 28.15
20-1050-00-0 280.46
20-1430-07-0 10.41
21-1620-07-0 130.48
21-2520-08-0 1,101.00
22-0270-01-0 63.18
24-0430-01-0 17.81
TOTAL $10,290.54
ORDINANCE NO.2024-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2023-
2024 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS,the City Council previously approved Ordinance No. 2023-18 which adopted
the Fiscal Year 2023-2024 City Budget;and,
WHEREAS,the City Council deems it necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment"A"attached hereto;and,
WHEREAS,the 2023-2024 City budget states"That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2024 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2023 and ending September 30,2024,and such funds are hereby appropriated as a City Council
Contingency Account for purposes approved by the City Council;and,
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS:
THAT the budget for the fiscal year 2023-2024 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment"A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT,this being an ordinance not requiring publication,it shall take effect and be in force
from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 23rd DAY OF SEPTEMBER,2024. ��////��
v /9 4 !�f,Y,t4-It2 J1 0
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
liAdatd6OW
Joni nderwood,City Clerk
APPROVED AS TO FORM AND LEGALITY:
Chris Leavins,City Attorney = •:
1
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23,2024
DEPARTMENT: Various
FUND: General(01)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-0000-4365 Federal Grant-ARPA - 241,742 241,742
01-0000-4610 Interest Income 468,041 869,731 1,337,772
01-1300-6110 Salaries&Wages 308,659 3,000 311,659
01-1300-6212 Books&Publications 750 5,000 5,750
01-1300-6220 Miscellaneous Supplies 1,000 1,900 2,900
01-1300-6337 Advertising/Publications 12,000 5,150 17,150
01-1300-6395 Election Services 15,000 (15,000) -
01-1500-6110 Salaries&Wages 282,683 64,000 346,683
01-1500-6111 Overtime - 13,500 13,500
01-1500-6121 Group Insurance 49,465 (10,000) 39,465
01-1500-6124 TMRS 21,084 6,500 27,584
01-1500-6126 Social Security 21,745 6,000 27,745
01-1500-6210 General Office Supplies 4,000 3,500 7,500
01-1500-6311 Auditing&Accounting 48,000 (7,000) 41,000
01-1500-6333 Training&Travel 3,000 1,500 4,500
01-1500-6393 Contractual Services 115,000 (15,000) 100,000
01-1600-6110 Salaries&Wages 209,178 3,700 212,878
01-1600-6115 Extra Help 9,000 (9,000) -
01-1600-6347 Unemployment Reimbursment 7,000 (7,000) -
01-1900-6210 General Office Supplies 800 1,100 1,900
01-1900-6341 Insurance General 54,000 45,157 99,157
01-1900-6350 Bldg/Structure Improvements 2,000 3,800 5,800
01-2100-6110 Salaries&Wages 3,007,053 18,000 3,025,053
01-2100-6111 Overtime 225,000 15,000 240,000
01-2100-6116 Educational Certificate 62,290 10,000 72,290
01-2100-6121 Group Insurance 472,330 (32,000) 440,330
01-2100-6124 TMRS 245,408 5,000 250,408
01-2100-6128 Workers Compensation 50,155 (4,000) 46,155
01-2100-6265 Supplies/Minor Tools&Equip 16,000 14,000 30,000
01-2100-6331 _Telephone 13,000 3,000 16,000
01-2100-6341 Insurance General 78,000 8,800 86,800
01-2100-6349 Insurance Motor Equipment 15,000 2,350 17,350
01-2100-6355 Vehicle&Equipment R&M 40,000 6,000 46,000
01-2100-6720 Buildings,Fixtures&Grounds - 60,334 60,334
01-2100-6744 Miscellaneous Equipment - 12,000 12,000
01-2100-6747 Radio&Radar Equipment 11,000 43,000 54,000
TOTAL 5,867,641 1,373,764 7,241,405
Page 1 of 8
f
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23, 2024
DEPARTMENT: Various
FUND: General(01)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-2101-6111 Overtime 16,000 (2,500) 13,500
01-2101-6115 Extra Help 4,000 (4,000) -
01-2101-6393 Contractual Services 36,000 (6,000) 30,000
01-2102-6350 Bldg/Structure Improvements - 10,000 10,000
01-2102-6355 Vehicle&Equipment R&M - 24,000 24,000
01-2102-6393 Contractual Services 65,000 (25,000) 40,000
01-2200-6110 Salaries&Wages 1,510,214 (10,000) 1,500,214
01-2200-6121 Group Insurance 227,127 (22,000) 205,127
01-2200-6128 Workers Compensaiton 29,802 (2,000) 27,802
01-2200-6231 Wearing Apparel 10,500 5,300 15,800
01-2200-6351 Fixed Plant&Equipment R&M 6,000 10,000 16,000
01-2400-6110 Salaries&Wages 174,153 2,500 176,653
01-2400-6115 Extra Help 10,000 9,000 19,000
01-2500-6110 Salaries&Wages 62,241 (8,000) 54,241
01-2500-6111 Overtime 100 2,900 3,000
01-2500-6231 Wearing Apparel - 375 375
01-2500-6393 Contractual Services 18,000 7,000 25,000
01-3000-6110 Salaries&Wages 218,785 17,000 235,785
01-3000-6121 Group Insurance 37,203 (6,000) 31,203
01-3000-6124 TMRS 16,364 1,500 17,864
01-3000-6126 Social Security 16,884 1,000 17,884
01-3000-6210 General Office Supplies 3,250 1,550 4,800
01-3000-6220 Miscellaneous Supplies 1,600 5,000 6,600
01-3000-6231 Wearing Apparel - 890 890
01-3000-6720 Buildings, Fixtures&Grounds - 17,000 17,000
TOTAL 2,463,223 29,515 2,492,738
Page 2 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23,2024
DEPARTMENT: Various
FUND: General (01)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-3100-6110 Salaries&Wages 548,954 14,000 562,954
01-3100-6111 Overtime 22,000 (4,000) 18,000
01-3100-6121 Group Insurance 79,293 5,000 84,293
01-3100-6222 Motor Vehicle Fuel 30,000 (8,000) 22,000
01-3100-6246 Streets&Bridge Supplies 105,000 (20,000) 85,000
01-3100-6343 Insurance Motor Equipment 8,000 2,400 10,400
01-3100-6354 Traffic Lights 8,000 (4,000) 4,000
01-3100-6393 Contractual Services 1,600 31,400 33,000
01-3400-6110 Salaries&Wages 60,570 1,600 62,170
01-3400-6111 Overtime 36,000 5,000 41,000
01-5100-6110 Salaries&Wages 287,193 (14,000) 273,193
01-5100-6111 Overtime 22,000 7,000 29,000
01-5100-6115 Extra Help 50,000 3,000 53,000
01-5100-6121 Group Insurance 61,573 (17,000) 44,573
01-5100-6265 Supplies/Minor Tools&Equipment 26,000 2,000 28,000
01-5100-6341 Insurance General 94,000 13,250 107,250
01-5100-6350 Bldg/Structure Improvements 22,000 45,000 67,000
01-5100-6393 Contractual Services 133,050 67,000 200,050
01-5100-6720 Building, Fixtures&Grounds 52,500 (40,500) 12,000
01-5100-6744 Miscellaneous Equipment - 14,275 14,275
TOTAL 1,647,733 103,425 1,751,158
Page 3 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23,2024
DEPARTMENT: Various
FUND: General (01)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-5500-6110 Salaries&Wages 249,482 7,000 256,482
01-5500-6115 Extra Help 33,000 1,000 34,000
01-5500-6341 Insurance General 95,000 15,000 110,000
01-5500-6350 Bldg/Structure Improvements 8,000 20,500 28,500
01-9000-6315 Computer System 152,000 20,000 172,000
01-9000-6326 Retiree Insurance 25,000 30,000 55,000
01-9000-6336 Retiree Accrued Compensation 25,000 (25,000) -
01-9000-6371 Senior Citizen Center 56,000 8,000 64,000
01-9000-6393 Contractual Services 25,000 (20,000) 5,000
01-9000-6400 Special Programs 45,000 (10,000) 35,000
01-9000-6402 ARPA-Non Profit Grant Program - 110,000 110,000
01-9000-6406 Contingency 20,000 (14,000) 6,000
01-9000-6409 Vacation Buy Back 23,000 (23,000) -
01-9000-6411 Preventive Care Reimbursement 10,000 (10,000) -
01-9000-6904 Transfer to Parks Special Fund 640,000 325,000 965,000
01-9000-6939 Transfer to Street Imp Fund 850,000 150,000 1,000,000
01-9000-6950 Transfer to W/S Fund - 131,742 131,742
TOTAL 2,256,482 , 716,242 2,972,724
Page 4 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23, 2024
DEPARTMENT: Various
FUND: Court Technology, Hotel Occupancy,
Parks Special, Equip Replacement GF
Street Improvement
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
22-0000-6315 Computer System 6,000 5,000 11,000
23-0000-4393 Hotel Occupancy Taxes 60,000 25,000 85,000
23-0000-6389 Payment to Chamber& Hist. Soc. 48,000 25,000 73,000
25-0000-4610 Interest Income 10,000 15,600 25,600
25-0000-4910 Transfer In 1,129,977 325,000 1,454,977
25-0000-6350 Buildings, Fixtures&Grounds 5,000 (5,000) -
25-000-6710 Land Improvements - 9,600 9,600
25-5102-6393 Contractual Services 5,000 5,500 10,500
25-5103-6351 Fixed Plant Equipment R&M - 4,300 4,300
25-5103-6393 Contractual Services 20,000 (15,000) 5,000
25-5104-6220 Miscellaneous Supplies 1,500 1,800 3,300
25-5104-6393 Contractual Services 32,000 14,400 46,400
34-0000-4610 Interest Income 10,000 32,000 42,000
34-0000-6744 Miscellaneous Equipment - 19,235 19,235
39-0000-4130 Sales Tax 850,000 110,000 960,000
39-0000-4610 Interest Income 50,000 190,000 240,000
39-0000-6310 Engineering Fees 100,000 (6,750) 93,250
39-0000-6730 Street Improvements 1,650,000 496,250 2,146,250
TOTAL 3,977,477 1,251,935 5,229,412
Page 5 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23,2024
DEPARTMENT: Various
FUND: Water&Sewer(50)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
50-0000-4360 Federal Emergency Mgt Funds - 28,440 28,440
50-0000-4365 Federal Grant ARPA 1,720,225 (1,720,225)
50-0000-4610 Interest Income 191,500 118,500 310,000
50-0000-4820 Water Service 2,500,000 100,000 2,600,000
50-0000-4830 Sewer Service 2,962,674 90,000 3,052,674
50-0000-4950 Transfer In 319,140 131,742 450,882
50-0000-4990 Penalties&Interest 148,000 10,000 158,000
50-6000-6110 Salaries&Wages 405,804 (3,000) 402,804
50-6000-6111 Overtime 70,000 25,000 95,000
50-6000-6121 Group Insurnace 71,463 (4,000) 67,463
50-6000-6124 TMRS 35,960 3,000 38,960
50-6000-6126 Social Security 37,087 1,000 38,087
50-6000-6210 General Office Supplies 1,000 3,400 4,400
50-6000-6246 Water Plant Supplies - 4,626 4,626
50-6000-6256 Chemicals&Insecticides 325,000 89,000 414,000
50-6000-6265 Supplies/Minor Tools&Equip 10,000 (2,000) 8,000
50-6000-6341 Insurance General 350,000 (6,500) 343,500
50-6000-6351 Fixed Plant&Equipment R&M 55,000 16,000 71,000
50-6000-6402 ARPA 1,720,225 (1,588,483) 131,742
50-6000-6404 Untreated Water 265,000 170,000 435,000
50-6100-6110 Salaries&Wages 203,320 2,000 205,320
50-6100-6111 Overtime 2,500 3,000 5,500
50-6100-6121 Group Insurnace 45,836 (8,000) 37,836
50-6100-6275 Water Meters&Boxes 120,000 33,000 153,000
50-6100-6332 Postage&Freight 29,000 2,500 31,500
50-6100-6341 Insurance General 4,000 (3,400) 600
50-6200-6256 Chemicals&Insecticides 58,000 (8,000) 50,000
50-6200-6341 Insurance General 390,000 (11,500) 378,500
50-6200-6348 Electricity 245,000 (5,000) 240,000
50-6200-6349 Natural Gas 8,000 2,000 10,000
50-6200-6351 Fixed Plant&Equipment R&M 40,000 15,000 55,000
50-6200-6355 Vehicle&Equipment R&M 7,500 3,000 10,500
50-6200-6393 Contractual Services 7,000 13,500 20,500
50-6200-6399 Sludge Management 40,000 3,000 43,000
TOTAL 12,388,234 (2,492,400) 9,895,834
Page 6 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23, 2024
DEPARTMENT: Various
FUND: Water&Sewer(50)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
50-6300-6110 Salaries&Wages 497,694 (24,000) 473,694
50-6300-6111 Overtime 60,000 36,000 96,000
50-6300-6121 Group Insurance 100,642 (2,000) 98,642
50-6300-6247 Water&Sewer Mains 125,000 50,000 175,000
50-6300-6265 Supplies/Minor Tools& Equip 7,500 2,500 10,000
50-6300-6333 Training &Travel 4,500 (1,000) 3,500
50-6300-6343 Insurance Motor Equipment 7,500 (1,300) 6,200
50-6300-6393 Contractual Services - 122,000 122,000
50-6300-6744 Miscellaneous Equipment - 12,113 12,113
50-6300-6756 Sewer Collection Lines - 6,820 6,820
50-9000-6315 Computer System 15,000 10,500 25,500
50-9000-6326 Retiree Insurance Benefits 12,000 (12,000) -
50-9000-6336 Retiree Accrued Compensation 8,000 (8,000) -
50-9000-6406 Contingency 10,000 (10,000) -
50-9000-6409 Vacation Buy Back 20,000 (20,000) -
50-9000-6411 Preventitive Care Reimbursement 5,000 (5,000) -
TOTAL 872,836 156,633 1,029,469
•
Page 7 of 8
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2023-2024
DATE: September 23, 2024
DEPARTMENT: Various
FUND: Solid Waste(52), Dispatch(70)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
52-0000-4610 Interest Income 50,000 33,050 83,050
52-3300-6110 Salaries&Wages 539,286 2,000 541,286
52-3300-6111 Overtime 18,000 (2,000) 16,000
52-3300-6242 Garbage Bags 5,750 (5,750) -
52-3300-6343 Insurance Motor Equipment 37,000 (4,000) 33,000
52-3300-6390 Waste Disposal 285,000 5,000 290,000
52-9000-6406 Contingency 8,000 (8,000) -
52-9000-6411 Preventive Care Reimbursement 4,200 (4,200) -
52-9000-6908 Transfer to Equipment Repl Fund 325,000 50,000 375,000
70-1700-6110 Salaries&Wages 200,318 7,000 207,318
70-1700-6111 Overtime 2,000 (1,000) 1,000
70-1700-6115 Extra Help 9,000 (7,000) 2,000
70-1700-6355 Vehicle Equipment R&M 2,500 9,500 12,000
70-1700-6393 Contractual Services 84,000 (24,000) 60,000
70-2100-6110 Salaries&Wages 676,578 (66,000) 610,578
70-2100-6111 Overtime 70,000 65,000 135,000
70-2100-6121 Group Insurance 115,297 (15,000) 100,297
70-2100-6393 Contractual Services 14,000 12,000 26,000
TOTAL 2,445,929 46,600 2,492,529
JUSTIFICATION
End of year line-item correction
Dept.Head Signature: Date:
Finance Director: Date:
Date Approved: Date Posted:
Page 8 of 8
ORDINANCE NO. 2024-22
ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS DENYING THE STATEMENT
OF INTENT OF TEXAS GAS SERVICE COMPANY, A
DIVISION OF ONE GAS, INC. TO INCREASE RATES
WITHIN THE INCORPORATED AREAS OF THE
CENTRAL-GULF COAST SERVICE AREA; REQUIRING
REIMBURSEMENT OF MUNICIPAL RATE CASE
EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; AND
DECLARING AN EFFECTIVE DATE FOR THIS
ORDINANCE
WHEREAS,on or about June 3,2024,Texas Gas Service Company,a Division of ONE Gas,
Inc.("TGS"or the"Company")filed a Statement of Intent with the City of Nederland ("City")to
increase gas rates within the incorporated areas of the Central-Gulf Service Area("CTSA");and
WHEREAS,in its Statement of Intent,TGS proposed to increase its revenue requirement
by$25.6 million per year;and
WHEREAS, the City has exclusive original jurisdiction over the rates, operations, and
services of a gas utility in areas in the municipality pursuant to Texas Utilities Code § 103.001;
and
WHEREAS, Gas Utility Regulatory Act§ 103.021 requires a local regulatory authority to
make a reasonable determination of rate base, expenses, investment, and rate of return and
retain the necessary personnel to determine reasonable rates;and
WHEREAS,the City's reasonable cost for regulatory expenses in ratemaking proceedings
shall be reimbursed by the gas utility under Gas Utility Regulatory Act§103.022;and
WHEREAS, in order to exercise original jurisdiction and properly review the requested
rates, it was necessary for the City to suspend TGS's proposed effective date for 90 days to
October 6,2024;and
WHEREAS,the City retained the Lawton Law Firm,P.C.to review TGS's rate request and
make necessary rate recommendations to the City;and
WHEREAS,expert utility rate consultants retained to review TGS's rate increase on behalf
of the City and other similarly situation cities recommended adjustments to TGS's proposed rate
of return, capital structure, depreciation recoveries, and other cost of service items, and
concluded that the Company failed to show that its requested rates are just and reasonable.
NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS,THAT:
Section 1. The statement and findings set out in the preamble to this ordinance are
adopted herein as if set forth herein.
Section 2. TGS's Statement of Intent to increase rates in the incorporated areas of
the Central-Gulf Service Area is denied.
Section 3. The Company shall maintain its current rates under its currently approved
rate schedules.
Section 4. The Company shall promptly reimburse the City's rate case expenses, as
provided by Gas Utility Regulatory Act§103.022(a).
Section 5. The meeting at which this ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act,Texas
Government Code,Chapter 551.
Section 6. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 23RD day of SEPTEMBER,2024.
Pen4 .6-t_a Qin
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
(RN: atdePLAMVI
Joni Uhvderwood,City Clerk
City of Nederland,Texas
APPROVED AS TO FORM AND LEGALITY: '
.0011111
•
C • ea 'T City Attorney {(j . e�
City of Nederland,Texas7:-118= �•
'•tflf llll�l���
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275 •Austin,Texas 78738 • 512/322-0019
September 19, 2024
Via E-Mail
Ms. Sharae Reed Mr.Kenneth R. Williams
City Attorney—City of Beaumont City Manager—City of Beaumont
P.O. Box 3827 P.O. Box 3827
Beaumont, Texas 77704 Beaumont, Texas 77704
Mr. Brandon Monk Mr.Kevin Carruth
City Attorney—City of Groves City Manager—City of Groves
4875 Parker Drive 3947 Lincoln Avenue
Beaumont, TX 77705 Groves, Texas 77619-4604
Mr. Chris Leavins Mr. Christopher Duque
City Attorney—City of Nederland City Manager—City of Nederland
P.O.Box 4915 P.O.Box 967
Beaumont, Texas 77704-4915 Nederland, Texas 77627
Mr. James Black Mr. Ronald Burton
City Attorney—City of Port Arthur City Manager—City of Port Arthur
P.O.Box 1089 P.O. Box 1089
Port Arthur, Texas 77641 Port Arthur, Texas 77641
Mr. Lance Bradley Mr.Andre' Wimer
City Attorney—City of Port Neches City Manager—City of Port Neches
P.O.Box 1148 P.O. Box 758
Port Neches, Texas 77651 Port Neches, Texas 77651
Re: 2024 Statement of Intent of Texas Gas Service Company, a Division of ONE
Gas, Inc. ("TGS" or "Company") to Change Gas Utility Rates within the
Central-Gulf Service Area
Dear Cities:
This letter is to update you on the status of TGS's statement of intent to increase rates in
its Central-Gulf Service Area, which is still pending with the Railroad Commission and with the
Cities. October 6, 2024, is the deadline for Cities to act on the Company's statement of intent
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 1
filings at the municipal level, so we are providing a proposed rate denial ordinance for your
consideration.
As to the rate case before the Commission we believe that the case will be resolved in
settlement. The parties in the Railroad Commission proceedings have reached a settlement in
principle, which we will recommend that the Cities approve upon finalization of the settlement
terms.
Our Review and Analysis of the Statement of Intent
TGS requested a total rate increase of $25.6 million annually, representing a 15.46%
increase in non-gas revenues.1 It should be noted that the proposed increase for residential
customers is actually$27.8 million,whereas commercial, industrial, and other non-residential rate
classes would receive small rate decreases. If approved, the average increase per residential
customer would range from $6.23 for usage of 17 Ccf per month and $9.44 for usage of 43 Ccf
per month.
Railroad Commission rules require similarly situated cities to coordinate efforts;therefore,
we worked with the Cities Served by Texas Gas Service Company ("TGS Cities") in reviewing
TGS's request.' The combined recommended adjustments of both city groups would reduce the
Company's request by about $15.6 million. Commission Staff recommended adjustments that
would reduce the Company's request by about$5.4 million.Although we support or do not oppose
the adjustments of Commission Staff and the TGS Cities, our primary objections are to the
Company's requested return on equity, capital structure, and depreciation rates.
First, the Company requested a 10.25% return on equity, which is well above what has
been approved recently for comparable utilities. The TGS Cities' witness, Dr. J. Randall
Woolridge, recommended 9.25% as a more reasonable return on equity. The Commission Staff's
witness,Ms.Miriam Winetroub,recommended a return on equity of 9.5%.
Second, the Company's proposed capital structure is 59.58% equity and 40.42% debt,
which is not in line with the typical capital structures of other gas distribution utilities. Our
consultant, Mr. David Garrett, noted that the Company only included long-term debt in its
proposed capital structure even though it relied on short-term debt in every quarter except one
since 2020. Mr. Garrett recommended that short-term debt be included to reflect the Company's
actual capital structure. With this adjustment, the Company's actual capital structure would be
The Company originally requested a$25.8 million base rate increase but amended its request to$25.6 million on
August 5,2024.
2 The TGS Cities include the Cities of Austin,Bee Cave,Cedar Park,Cuero,Dripping Springs,Galveston,
Gonzales,Kyle,Lockhart,Luling,Marble Falls,Pflugerville,Rollingwood,Shiner,Sunset Valley,West Lake Hills,
and Yoakum.
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 2
56.79%equity and 43.21% debt. In addition, Dr. Woolridge recommended that a capital structure
of 52.45% equity and 47.55% debt would be more consistent with the average common equity
ratio approved by state commissions for gas distribution companies in 2023. The Commission
Staff did not contest the Company's proposed capital structure.
Third,our final primary concern is that some of the Company's proposed depreciation rates
are unreasonably high.Our consultant observed that the Company's depreciation analysis assumed
shorter service lives for certain accounts than its data would support.As a result,we recommended
depreciation rates that would reduce the Company's request by$3.2 million.
Recommendation
Based upon our analyses and the conclusions of Commission Staff and TGS Cities, our
overall recommendation is that TGS's proposed rate increase should be denied. Our recommended
adjustments combined with TGS Cities' adjustments, if approved, would reduce the Company's
request by about$15.6 million.
We are attaching for your consideration a proposed Rate Ordinance denying TGS's
rate increase request. The deadline for Cities to pass a Final Rate Ordinance is October 6,
2024. After October 6, the Company will move to consolidate all municipal actions with the
proceedings at the Railroad Commission, including Cities who do not act before the deadline. We
will provide more information on the pending settlement once it is finalized as well as a proposed
ordinance for Cities that wish to approve the settlement agreement. Please forward copies of
passed denial ordinances to danlawtonlawfirm@gmail.com and molly@mayhallvandervoort.com.
If you have any questions or concerns,please do not hesitate to call.
Sincerely,
/s/Daniel J.Lawton
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 3
CONFLICT OF INTEREST AFFIDAVIT
STATE OF TEXAS
COUNTY OF JEFFERSON
CITY OF NEDERLAND
I,Bret Duplant,as a member of the Nederland
Nederland City Council
x Nederland Board/Commission(Name: Nederland Economic Development Corporation )
Make this affidavit and hereby on oath state the following:
I have substantial interest in a business entity or real property that may receive a special economic effect that is distinguishable
from the effect on the public by a vote or decision of the
Nederland City Council
x Nederland Board/Commission(Name:Nederland Economic Development Corporation)
As those terms defined in Chapter 171 of the Local Government Code. The business entity or real property is:
[Name and address of business and/or description of property]
«I„
Name or relative and relationship
have/has a substantial interest in this business entity or real property for the following reasons:
the interest is ownership of 10%or more of the voting stock or shares of the business entity
the interest is ownership of 10%or$15,000.00 or more of the fair market value of the business entity
funds received from the business entity exceed 10%of my/his/her income for the previous year
real property is involved and I/he/she have/has an equitable or legal ownership with a fair market value of at least$2,500
x other I am currently serving on the Nederland Economic Development Corporation Board
Upon the filing of this affidavit with the official record keeper for the City(the City Secretary),I affirm that I shall abstain
from any discussion,vote,or decision involving this business entity or real property and from any further participation in
this matter whatsoever.
Signed this .d day of IC��✓�J 20 2
At, r 64X---
"gna - Printed Name
PA,( A 79.._
Title Date�J-_
BEFORE ME,the undersigned authority,this day personally appeared w`bvp)a ll and
by oath stated that the facts hereinabove stated are true and correct to the best of his/her knowledge or belief.
SWORN to and subscribed before me on this ZW/It day of OCAbei ' ,20 al.
goitc3tAflauWo-ocf [SEAL]
Notary Publi for the State of Texas
10-11Z1-?4 �,Mit JONI UNDERWOOD
Date •P 1 NOTARY PUBLIC
* * STATE OF TEXAS
��OF' P" MY COMM.EXP.09/25/27
NOTARY ID 590909-2
CONFLICT OF INTEREST AFFIDAVIT
STATE OF TEXAS
COUNTY OF JEFFERSON
CITY OF NEDERLAND
I,Don Albanese,as a member of the Nederland
Nederland City Council
x Nederland Board/Commission(Name: Nederland Economic Development Corporation )
Make this affidavit and hereby on oath state the following:
I have substantial interest in a business entity or real property that may receive a special economic effect that is distinguishable
from the effect on the public by a vote or decision of the
Nederland City Council
x Nederland Board/Commission(Name:Nederland Economic Development Corporation)
As those terms defined in Chapter 171 of the Local Government Code. The business entity or real property is:
[Name and address of business and/or description of property]
«I„
Name or relative and relationship
have/has a substantial interest in this business entity or real property for the following reasons:
the interest is ownership of 10%or more of the voting stock or shares of the business entity
the interest is ownership of 10%or$15,000.00 or more of the fair market value of the business entity
funds received from the business entity exceed 10%of my/his/her income for the previous year
real property is involved and I/he/she have/has an equitable or legal ownership with a fair market value of at least$2,500
x other I am currently serving on the Nederland Economic Development Corporation Board
Upon the filing of this affidavit with the official record keeper for the City(the City Secretary),I affirm that I shall abstain
from any discussion,vote,or decision involving this business entity or real property and from any further participation in
this matter whatsoever.
Signed this 111:51day of Odbier ,20 a .
111111/.6211 dd0/0 ,A4g/9700
S gnature Printed Name
I'll& 1 r lo — 0;•
Title Date
BEFORE ME,the undersigned authority,this day personally appeared (len I% b2-065e and
by oath stated that the facts hereinabove stated are true and correct to the best of his/her knowledge or belief.
SWORN to and subscribed before me on this a� day of Qdo ,20.2'-/.
att lJ [SEAL]
Notary Public ter the State of Texas JONI UNDERWOOD
�,y
�ovrue�c NOTARY PUBLIC
I b-02-aoa� * * STATE OF TEXAS
Date `,
MY COMM.EXP.09/25/27
NOTARY ID 590909-2