October 14, 2024 REGULAR MEETING OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND
4:30 p.m. October 14,2024
1. MEETING
The meeting was called to order at 4:31 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 the Pledge of Allegiance was led by Pastor Jason Burden with First
Baptist Church.
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 Mayor Pro Tem Sonnier to
approve the Consent Agenda Item"a thru b"as presented. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
a. Minutes—September 23,2024 regular meeting
b. Consider action regarding a request from Nederland Little Dribblers to utilize the
Nederland Recreation Center gymnasium for league play.
4. REGULAR AGENDA
a. Shannon Hemby, Executive Director of the Nederland Heritage Festival, presented a
donation from the NHF to the Nederland Police Department in the amount of$8,642.34,
to the Nederland Fire Department in the amount of$10,656.32, and to the Nederland
Parks and Recreation Department in the amount of$11,159.49.
b. A motion was made by Councilmember Root and seconded by Councilmember Duplant y
to approve a proclamation recognizing Pastor Jason Burden of First Baptist Church.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root, Sonnier,and Guillot.
NOES: None.
Minutes continued, October 14, 2024
Mayor Albanese presented Pastor Burden with a Key to the City plaque and thanked
him for his years of service and commitment to our city.
c. A motion was made by Councilmember Root and seconded by Councilmember Duplant
to approve Ordinance No. 2024-23, regarding the rezoning request of 1011 Chicago
Avenue, described as Lot 27, Block 10 of Nederland Addition from property zoned R-2
(duplex residential) to C-3 (highway retail) for the construction of a commercial
building to store materials for their construction business. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,and Guillot.
NOES: Mayor Pro Tem Sonnier.
Chief Building Official, George Wheeler, stated that this property has highway retail C3
abutting this lot and directly behind it is commercial Cl.
d. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Guillot to award bid for the South 5th Street Roadway Improvements project to Allco
LLC, in the amount of$191,940. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
Rob Woods, Director of Public Works, stated the settling of the soil caused the manhole
to drop down. The installation of 24"piping will stabilize this area and the manhole will
not be reinstalled.
e. Rob Woods gave an update on the 2024 Concrete Street Rehabilitation project and the
2024 HMAC (hot mix overlay) Street project. He stated that the Nederland Avenue
portion has been completed. The contractors are now working on 27th Street on the
concrete panel replacement and will begin on the driveways. The weather has allowed
the progression to be somewhat ahead of schedule.
The asphalt project on Canal Street has been completed. They will begin on the
concrete driveways from the waterline repairs and storm water improvements. The
asphalt work on Seattle, 18th, 19th and 20th St. should begin by the first of next month.
The change order work on Atlanta and the alleyways will be next.
f. A motion was made by Councilmember Duplant and seconded by Councilmember Root
to approve Ordinance No. 2024-24, authorizing the settlement of Texas Gas Service
Company, a division of One Gas, Inc. in connection with its statement of intent to
increase rates within the incorporated areas of the Central-Gulf Coast Service area, filed
on June 3, 2024. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
g. A motion was made by Councilmember Root and seconded by Mayor Pro Tem Sonnier
to approve Ordinance No. 2024-25, amending the fiscal year 2024-2025 budget.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root, Sonnier,and Guillot.
NOES: None.
Minutes continued, October 14, 2024
Jeff Darby, 1515 N. 26th St., Nederland, asked how this amendment affects the adopted
budget. Chris Duque, City Manager, explained that this amendment increases the
dispatch budget by $27,200 and the general fund by$10,214.
5. EXECUTIVE SESSION
The regular meeting was recessed at 4:59 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 5:13 p.m. by Mayor Albanese. He announced the
Executive Session was held for informational purposes only and no action is necessary.
7. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 5:13 p.m.
f C �C9 co2.- L./
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
caidliihtnd 0 E,0
Joni ynderwood, City Clerk � 'j•n��q� %
City of Nederland, Texas 'Igofi'.. �U •
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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
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
Moll! Hall Librarian ✓
Holly Guidry Human Resources Director ✓
Toby Latiolais Parks Director
on Albanese, Mayor
Of (&al hW
Jo / nderwood, City Clerk
1041-P24/
Date
ORDINANCE NO. 2024-23
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, PROVIDING THE
CHANGING OF ZONING FROM R-2, DUPLEX
RESIDENTIAL TO C-3, HIGHWAY RETAIL FOR LOT
27, BLOCK 10 OF NEDERLAND ADDITION
WHEREAS,the City of Nederland,Texas is a home rule municipality having authority to
utilize police power regulation of health,safety,and general welfare of the public;and
WHEREAS,the property owner of Lot 27, Block 10 of Nederland Addition requested a
change in zoning from the Duplex°Residential(R-2)zoning classification to the Highway Retail(C-
3)zoning classification;and
WHEREAS,the Nederland City Council and the Planning&Zoning Commission conducted
a Joint Public Hearing on September 9,2024,in the time and manner and after notice required
by law and applicable ordinances;and
WHEREAS, the Planning & Zoning Commission met on October 8, 2024 to discuss the
rezoning request and unanimously recommend approval;and
WHEREAS, the Nederland City Council deems it is appropriate to make the requested
zoning change. .
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, HEREBY
ORDAINS THAT:
SECTION 1. The statements set out in the preamble to this Ordinance are true and
correct.
SECTION 2. The zoning district classification of Lot 27,Block 10 of Nederland Addition is
changed from Duplex Residential(R-2)to Highway Retail(C-3).
SECTION 3. 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 4. The Ordinance shall be effective from and after its passage.
PASSED AND APPROVED THE 141.11 day of OCTOBER.2024.
•
APPROVED:ae/J
Al
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
Joni U derwood,City Clerk ,;.,!!:!!!`��:!t��i��uirq;,i,,,,
City of Nederland ;` +��,..� 1 .
APPROV a •fTO .••• AND LEGALITY: ' j �i4h�0
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AirrAiird. ,,e,,,-,,..NT:,.-...,.:4,
Chris Leavins,City Attorney ''`'",t ,,-,E,,,,-
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City of Nederland,Texas
•
ORDINANCE NO. 2024-24
ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS AUTHORIZING THE
SETTLEMENT OF TEXAS GAS SERVICE COMPANY, A
DIVISION OF ONE GAS, INC. STATEMENT OF
INTENT TO INCREASE RATES WITHIN THE
INCORPORATED AREAS OF THE CENTRAL-GULF
COAST SERVICE AREA FILED ON JUNE 3, 2024;
FINDING THAT THE MEETING COMPLIES WITH THE
OPEN MEETINGS ACT; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; 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")and
concurrently with the Railroad Commission of Texas ("Railroad Commission") to increase gas
rates within the Central-Gulf Service Area;and
WHEREAS,in its Statement of Intent,TGS proposed to increase its revenue requirement
by$25.6 million per year;and
WHEREAS,the City of Nederland joined the Steering Committee of Cities to intervene and
participate in the Railroad Commission proceedings;and
WHEREAS,the City of Nederland denied the Company's rate request and the Company
appealed or will appeal the City's rate denial ordinance to the Commission;and
WHEREAS,TGS, Railroad Commission staff, and other intervening parties including the
Steering Committee of Cities participated in settlement discussions to resolve all contested rate
case issues without litigation;and
WHEREAS,TGS agreed to settle the rate request at an overall rate increase level of$19.3
million per year for the Central-Gulf Service Area combined;and
WHEREAS,the Railroad Commission staff,the Lawton Law Firm, and counsel for other
cities participating in this proceeding have recommended approval of the Settlement terms as a
reasonable alternative to resolve all contested rate case issues without the need for prolonged
litigation.
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
hereby in all things approved and adopted.
Section 2. The City of Nederland hereby authorizes the settlement of the TGS rate
case proceeding at an overall rate increase level of$19.3 million per year.
Section 3. 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 4. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 14TH day of OCTOBER,2024.
v Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
Joni Underwood,City Clerk
City of Nederland,Texas
APPROVED A NM AND LEGALITY:
Chris Leavins,City Attorney \�ptnrurrrrr!p,
City of Nederland,Texas ,Art! )
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%.9/ JLC
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275 •Austin,Texas,78738 • 512/322-0019
September 30, 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
Ms. Roxann Cotroneo 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. to Change Gas Utility Rates within the Central-Gulf Service Area
Dear Cities:
This letter is to update you on the status of Texas Gas Service Company, a Division of
ONE Gas, Inc.'s ("TGS" or "Company") statement of intent to increase rates in its Central-Gulf
Service Area, which is still pending at the Railroad Commission. We previously recommended
that the Company's request be denied at the city level. The denial ordinances Cities passed either
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION
have been or soon will be appealed and joined in the Railroad Commission proceedings. The
parties in the Railroad Commission proceedings have finalized a settlement agreement,which we
recommend that the Cities approve. As we will describe further below, we believe the settlement
represents a reasonable outcome given the potential expense and risk of litigating contested issues.
We are providing a proposed settlement approval ordinance for your consideration. If your
City takes no action,we will assume your City is unopposed to the settlement.
Key terms of the proposed settlement include:
• A revenue requirement increase of $19.3 million, which is approximately 25%
lower than the Company's requested revenue requirement increase of $25.6
million.
• A 9.7%return on equity rather than its requested 10.25%return on equity.
• Revenue allocation such that no customer class will receive a rate decrease while
other classes receive a rate increase.This will lower the impact of the rate increase
on residential customers when the new rates are implemented.
• Significantly lower monthly customer charges than what the Company initially
proposed. The customer charge is the flat fee that customers pay each month
regardless of usage, so lower customer charges benefit customers with lower
volume consumption.
The rates resulting from the proposed settlement are shown below:
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 2
Customer Commodity
Customer Class Charge Charge/Ccf
Residential-Small' $18.00 $0.87646
Residential-Large2 $30.00 $0.46737
Commercial-Small $60.00 $0.27930
I Commercial -Large $75.00 $0.22985
Industrial $571.38 $0.14569
Public Authority $155.97 $0.13768
Electric Generation $175.68
First 5,000 Ccf/Month $0.07724
Next 35,000 Ccf/Month $0.06853
Next 60,000 Ccf/Month $0.05527
All Over 100,000 Ccf/Month $0.04018
Commercial Transportation $308.08 $0.12679
Industrial Transportation $771.38 $0.14569
Public Authority Transportation $178.97 $0.13768
Electric Generation Transportation $175.68
First 5,000 Ccf/Month $0.07724
Next 35,000 Ccf/Month $0.06853
Next 60,000 Ccf/Month $0.05527
All Over 100,000 Ccf/Month $0.04018
Compressed Natural Gas $594.55 $0.07817
Compressed Natural Gas Transportation $619.55 $0.07817
Unmetered Gas Light-Residential $0.00 $0.87646
Unmetered Gas Light- Commercial $0.00 $0.27930
Unmetered Gas Light-Industrial $0.00 $0.14569
Unmetered Gas Light-Public Authority $0.00 $0.13768
Customers in the Small Residential Class with average usage of 17 Ccf per month will see
a $1.84 increase to their monthly bills. Customers in the Large Residential Class with average
usage of 43 Ccf per month will see a$10.66 increase to their monthly bills.
Recommendation
Based upon our analyses and the conclusions of Commission Staff and the other city
coalition group that intervened in this proceeding, we recommend that Cities approve the
settlement agreement. Given the litigation risk and cost of successfully litigating each issue, a
settlement at$19.3 million increase is reasonable. Our recommended adjustments combined with
the proposed adjustments of the other city coalition group, if approved, would reduce the
I Applies to residential customers with annual normalized volume less than 352 Ccf.
2 Applies to residential customers with annual normalized volume of 352 Ccf or greater.
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 3
Company's request by about$15.6 million.In other words,even if every recommended adjustment
were approved, the Company would still have proven the need for a$10 million annual revenue
increase.Although our consultants' recommended adjustments were all reasonable,it is not known
how the Commission would rule on each contested issue. Settlement of the case reduces the risk
of an unanticipated or negative outcome and reduces litigation expenses. Furthermore, the
Commission Staff and the other intervening city coalition group have either agreed or are
unopposed to the settlement terms, so the probability of achieving a different result is low.
I have attached for your consideration an ordinance authorizing the settlement. In terms
of timeline,we are asking each City to make a final decision at its next available meeting.If
your City does not take action regarding the proposed settlement,we will assume your City is
unopposed to the settlement.Please forward copies of passed ordinances to us at
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 4
ORDINANCE NO.2024-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2024-
2025 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS,the City Council previously approved Ordinance No. 2024-18 which adopted
the Fiscal Year 2024-2025 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 2024-2025 City budget states"That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2025 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2024 and ending September 30,2025,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 2024-2025 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 14th DAY OF OCTOBER,2024.
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
s
1114 6.0 41
Joni rnderwood,City Clerk
APPROVED ' f TO FO AND LEGALITY:
41,
ow tin imullio,
Chris Lea ' s city Attorney ,dF.�L40e'/'
5
:-,0. • %''
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2024-2025
DATE: October 9, 2024
DEPARTMENT: Various
FUND: General Fund (01)
Dispatch Fund (70)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-0000-4610 Interest Income 806,670 10,214 816,884
01-2100-6906 Transfer to Central Dispatch 666,106 10,214 676,320
70-0000-4390 Contribution-Groves 631,309 9,396 640,705
70-0000-4392 Contribution-Port Neches 554,322 7,590 561,912
70-0000-4394 Contribution-Nederland 666,106 10,214 676,320
70-2100-6366 Rental Equipment 23,800 (13,800) 10,000
70-2100-6393 Contractual Services 14,000 41,000 55,000
TOTAL 3,362,313 74,828 3,437,141
JUSTIFICATION
In the General Fund, it is necessary to increase the Transfer to Central Dispatch; this is offset by an increase in
the Interest Income line-item.
In the Dispatch Fund, it is necessary to increase the Contractual Services allocation to pay the Central Dispatch
contribution to the Regional Radio System. The Rental Equipment allocation is reduced to move funds to
Contracual Services. And the three cities'contributions are increased to offset the increased expenditure.
Dept. Head Signature: Date:
Finance Director: Date:
Date Approved: Date Posted:
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