January 13, 2025 REGULAR MEETING OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND
4:30 p.m. January 13,2025
1. MEETING
The meeting was called to order at 4:30 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 Mayor Pro Tern Sonnier.
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 Duplant and seconded by Mayor Pro Tem Sonnier
to approve the Consent Agenda Item"a thru c" as presented. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
a. Minutes—December 16, 2024 regular meeting
b. Consider action authorizing the closure of various City streets for the Nederland Heritage
Festival activities.
c. Consider action approving a request from the Nederland Rotary Club to utilize Doornbos
Park for the annual Hooked on Fishing,Not on Drugs (HOFNOD) event.
4. REGULAR AGENDA
a. A motion was made by Councilmember Root and seconded by Councilmember Guillot
to approve a proclamation recognizing the Nederland Bulldogs Football Team for the
2024 Bum Phillips Bowl victory. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier, and Guillot.
NOES: None.
b. A motion was made by Councilmember Root and seconded by Mayor Pro Tem Sonnier
to approve Ordinance No. 2025-01, authorizing participation with other Entergy service
area cities in matters concerning Entergy Texas, Inc. at the Public Utility Commission
Minutes continued, January 13, 2025 I
of Texas in 2025. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
c. A Motion was made by Councilmember Guillot and seconded by Councilmember Root to
set a Joint Public Hearing date of January 27th at 4:30 p.m. at Nederland City Hall, for
the purpose of receiving comments regarding the request for a Specific Use Permit for
the property located at 104 South Twin City Highway (lot 5, Block 15F, Tracts 2 and 17
of PALCO Addition) for a tire repair shop in a C-2 (neighborhood retail) zoned area.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
d. A motion was made by Councilmember Duplant and seconded by Councilmember Root
to approve the purchase of repairs of a trash truck in the amount of $28,679.54 in
accordance with the City's Purchasing Policy. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
e. A motion was made by Mayor Pro Tern Sonnier and seconded by Councilmember Root
to approve Buckstin Brewery's "Girls' Day" event on Sunday, January 19th in
accordance with Chapter 6, Sec. 6.2(b) of the Nederland Code of Ordinances.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
Stephan Oubre, Operations Manager for Buckstin Brewery, commented this event has
previously been successfully held at their Beaumont location. The consumption of the
alcoholic beverages will be confined to designated areas with appropriate signage and
open container laws will be adhered to. Additional,trash cans will be placed in this area.
Barricades will be provided by the city. This non-profit event will benefit the Shorkey
Center.
f. A motion was made by Councilmember Root and seconded by Councilmember Guillot
to authorize the closure of North 12th Street between Boston Avenue and the alleyway
between Boston Avenue and Atlanta Avenue on Sunday, January 19th for Buckstin
Brewery's "Girls' Day" event. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
g. A motion was made by Councilmember Root and seconded by Councilmember Duplant
to approve Change Order No. 2 — 2024 HMAC (hot mix overlay) Program, in the
amount of$73,140. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root, Sonnier,and Guillot.
NOES: None.
Bill Jardell, NISD Assistant Superintendent for Personnel and Auxiliary Services,
commented there is plenty of parking for staff/students in this area and he doesn't foresee
a parking issue. If this issue does arise, they could set up cones to prevent people from
Minutes continued, January 13, 2025
parking on the grass. Chris Duque, City Manager, stated that the city will consider a No
Parking Ordinance for this area also.
h. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Guillot to approve a request from the Nederland Independent School District to utilize
the Nederland Recreation Center on Friday, January 17th for an all-region band trip.
MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
i. A motion was made by Councilmember Root and seconded by Mayor Pro Tem Sonnier
to amend the City of Nederland Personnel Policy Manual — adding Section 9.01.09.
2025 Paid holidays. MOTION CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
j. A motion was made by Councilmember Guillot and seconded by Councilmember Root
to amend the Collective Bargaining Agreement between the City of Nederland and the
International Association of Fire Fighters, Local 3339 — Article 15 Annual Leave.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
k. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Guillot to amend the Collective Bargaining Agreement between the City of Nederland
and the Nederland Police Officers' Association—Article 17 Annual Leave. MOTION
CARRIED.
AYES: Mayor Albanese,Councilmembers Duplant,Root,Sonnier,and Guillot.
NOES: None.
5. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 5:02 p.m.
Ogir, �
ion Albanese,Mayor
City of Nederland, Texas
ATTEST:
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Joni U 1.erwood, City Clerk
City of Nederland, Texas �' A f
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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 f
Joni Underwood City Clerk ,1
Sa Wolt `cj ✓
Chris Leavins City Attorney
Heather Stucker Director of Finance
Gary Porter Police Chief - /
Terry Morton Fire Chief eti
Robert Woods Director of Public Works ✓
George Wheeler Building Official
Molli Hall Librarian I via,a.ZODyn
Stephanie Gaspard Human Resources Director
Toby Latiolais Parks Director
D on Albanese, Mayor
Joni Un erwood, City Clerk
-13 -
Date
ORDINANCE NO. 2025-01
A ORDINANCE OF THE CITY COUNCIL OF
NEDERLAND, TEXAS, AUTHORIZING
PARTICIPATION WITH OTHER ENTERGY
SERVICE AREA CITIES IN MATTERS
CONCERNING ENTERGY TEXAS, INC. AT THE
PUBLIC UTILITY COMMISSION OF TEXAS IN
2025; AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZING
THE CITY'S PARTICIPATION TO THE FULL
EXTENT PERMITTED BY LAW AT THE PUBLIC
UTILITY COMMISSION OF TEXAS; FINDING
THAT THE MEETING COMPLIES WITH THE
OPEN MEETINGS ACT; AND DECLARING AN
EFFECTIVE DATE
WHEREAS, Cities have exclusive original jurisdiction over rates,
operations, and services of an electric utility in areas in the municipality
pursuant to Tex. Util. Code § 33.001; and
WHEREAS, Cities have standing in each case before the Public Utility
Commission of Texas that relates to an electric utility providing service in the
municipality pursuant to Tex. Util. Code § 33.025; and
WHEREAS, Entergy Texas,Inc. ("ETI"or"Company") is expected to file
rate change requests in various proceedings before the Public Utility
Commission of Texas ("Commission") or before municipalities in 2025, which
may include (1) a base rate case, (2) rate proceedings or cost adjustments
such as a transmission cost recovery rider, a distribution cost recovery rider,
generation cost recovery rider, energy efficiency cost recovery factor, or storm
restoration cost or offset true-ups, and (3) various fuel cost refunds or
surcharges and reconciliations; and
WHEREAS, Cities have the statutory right to set fair and reasonable
rates for both the Company and customers within Cities; and
WHEREAS, Cities are entitled to reimbursement by the utility of their
reasonable rate case expenses to participate in cases that are deemed rate
proceedings pursuant to Tex. Util. Code § 33.023.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND,TEXAS, THAT:
SECTION 1. The City of Nederland shall participate with other Cities
to intervene in ETI's various rate filings related to any
base rate adjustment proceedings or cost of service
adjustments, the various fuel cost surcharges and
reconciliations, and any other interim or incremental
surcharge proceedings or surcharge adjustments filed
with the Commission or with municipalities in 2025.
SECTION 2. The City of Nederland employs the Lawton Law Firm P.C.
to represent the City regarding the ETI rate matters
before local regulatory authorities and the Commission
and authorizes counsel to employ rate experts as are
recommended by the Cities' Steering Committee to
intervene in rate-related or fuel-related proceedings at
1
the Commission concerning ETI's rates charged to Texas
customers.
SECTION 3. All such actions shall be taken pursuant to the direction
of the Cities' Steering Committee. Cities' Steering
Committee shall have authority to retain rate consultants
and lawyers. Cities' Steering Committee shall direct the
action of Cities'representatives in the above proceedings.
The Steering Committee is directed to obtain
reimbursement from ETI of all reasonable expenses
associated with participation in said proceedings.
SECTION 4. The meeting at which this Ordinance was approved was
in ali'things conducted in strict compliance with the Texas
Open Meetings Act, Texas Government Code, Chapter
551.
SECTION 5. This Ordinance shall be effective from and after the date
of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of
Nederland,Texas, this 13Th day of JANUARY, 2025.
on Albanese, Mayor
City of Nederland,Texas
ATTEST:
Joni derwood, City Clerk s`t ..2L3�;
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY: /� •iziE-
•
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Chris Leavins�orney
City of Nederland, Texas
2
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275 •Austin,Texas 78738 • 512/322-0019
December 23, 2024
Via e-mail
Mr. Richard G.Baker Ms. Sharae Reed
City Attorney—City of Anahuac City Attorney—City of Beaumont
P.O. Box 10066 P.O. Box 3827
Liberty, Texas 77575 Beaumont, Texas 77704
Mr. Kenneth R. Williams Mr. Paul Fukuda
City Manager—City of Beaumont City Attorney—City of Bridge City
P.O. Box 3 827 City Attorney—City of Pine Forest
Beaumont, Texas 77704 260 Rachal
Post Office Box 846
Bridge City,Texas 77611
Mr. Scott Swigert Ms. Mary Ann Powell
City Manager—City of Cleveland City Attorney—City of Cleveland
907 E. Houston Wortham Tower, Suite 600
Cleveland, Texas 77327 2727 Allen Parkway
Houston,Texas 77019
Ms. Alice Rios Mr. Gary Scott
City Secretary—City of Cleveland City Attorney—City of Conroe
907 E. Houston P.O. Box 3066
Cleveland, Texas 77327 Conroe, Texas 77305
Mayor Nyla Akin Dalhaus Amy L. Wade
City of Cut and Shoot City Secretary—City of Cut and Shoot
P.O. Box 7364 P.O. Box 7364
Cut and Shoot,Texas 77306 Cut and Shoot,Texas 77306
Attorney-Client Privileged Communication 1
Mayor Martin Mudd Ms. Kimberly Judge
City of Dayton City Manager—City of Dayton
117 Cook Street 117 Cook Street
Dayton, Texas 77535 Dayton, Texas 77535
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
Ms. Tina Paez Ms. Yushan Chang
City of Houston Administration&Regulatory City of Houston Legal Department
Affairs Department(ARA) P.O. Box 368,Houston, Texas 77001-0368
611 Walker, 13 th Floor City Hall Annex, 4th Floor
Houston, Texas 77002 900 Bagby
Houston, Texas 77002
Mr. Leonard Schneider Mr. Sam Masiel
City Attorney—City of Huntsville Interim City Manager—City of Huntsville
City Attorney—City of Panorama Village 1212 Ave. M
City Attorney—City of Riverside Huntsville, Texas 77340
City Attorney—City of Splendora
Law Offices of Leonard Schneider PLLC
2261 Northpark Dr., Suite 445
Kingwood,TX 77339-
, Mr. Brandon Davis Mr. Tom Warner
City Attorney—City of Liberty City Manager—City of Liberty
City Attorney—City of Dayton 1829 Sam Houston
1517 Trinity Liberty, Texas 77575
Liberty,Texas 77575
Mr. Alan P. Petrov Mr. Richard Tranun
City Attorney—City of Montgomery City Administrator—City of Montgomery
Johnson Petrov LLP 101 Old Plantersville Road
2929 Allen Parkway, Suite 3150 Montgomery, TX 77316
Houston, Texas 77019
Mr. Cary Bovey Mr. Jason Weeks
City Attorney—City of Navasota City Manager—City of Navasota
Bovey & Cochran, PLLC 200 E. McAlpine Street
2251 Double Creek Dr., Suite 204 Navasota,Texas 77868
Round Rock,Texas 78664
Attorney-Client Privileged Communication 2
Mr. Christopher Duque Mr. Chris Leavins
City Manager—City of Nederland City Attorney—City of Nederland
P.O. Box 967 City Attorney—City of Vidor
Nederland, Texas 77627 City Attorney—City of West Orange
P.O. Box 4915
Beaumont, Texas 77704-4915
Ms. Elizabeth Harrell Ms. Heather Neeley
City Secretary—City of Oak Ridge North City Manager—City of Oak Ridge North
27424 Robinson Road 27424 Robinson Road
Oak Ridge North, Texas 77385 Oak Ridge North,Texas 77385
Mr, Guy Goodson Mr. Mike Kunst
City Attorney—City of Orange City Manager—City of Orange
GERMER PLLC 812 North 16th Street
550 Fannin, Suite 400 P.O. Box 520
Beaumont, Texas 77701 Orange,Texas 77630
Mr. Rodney Price Mr. Jerry Hood
City Attorney—City of Rose City City Administrator—City of Pinehurst
P.O. Box 310 2497 Martin Luther King Jr. Drive
Vidor, Texas 77670 Orange, Texas 77630
Mr. Tommy Gunn Ms. Roxann Cotroneo
City Attorney—City of Pinehurst City Attorney—City of Port Arthur
202 S. Border P.O. Box 1089
- Orange, Texas 77630 Port Arthur, Texas 77641
Mr. Ronald Burton Mr. Lance Bradley
City Manager—City of Port Arthur City Attorney—City of Port Neches
P.O. Box 1089 P.O. Box 1148
Port Arthur, Texas 77641 Port Neches,Texas 77651
Mr. Andre' Wimer Mr. J. Grady Randle
City Manager—City of Port Neches City Attorney—City of Roman Forest
P.O.Box 758 The Randle Law Office Ltd. LLP
Port Neches, Texas 77651 820 Gessner, Suite 1570
Houston,TX 77024
Ms.Kathie Reyer Mr. Solomon Freimuth
City Administrator—City of Shenandoah City Attorney—City of Silsbee
29955 IH-45 N. P.O. Box 186
Shenandoah, Texas 77381 Port Neches, Texas 77651
Attorney-Client Privileged Communication 3
Ms. DeeAnn Zimmerman Mr. Alex Stelly
City Manager—City of Silsbee City Attorney—City of Sour Lake
105 South 3rd Street 2615 Calder Ave., Ste. 1070
Silsbee, Texas 77656 Beaumont, Texas 77702
Mr. Jack Provost Mayor Dorothy Welch
City Manager—City of Sour Lake City Attorney Leonard Schneider
625 Hwy 105 W City of Splendora
Sour Lake, Texas 77959 P.O. Box 1087
Splendora, Texas 77372
Mr. Robbie Hood Mayor Randy Branch
City Manager- City of Vidor Mayor—City of West Orange
1395 N. Main St. 2700 Western Avenue
Vidor, Texas 77662-3726 West Orange, TX 77630
Mr. Michael S. Stelly Ms. Marissa Quintanilla
City of West Orange, Texas City Secretary—City of Willis
2700 Austin Avenue 200 N. Bell
West Orange, TX 77630 Willis, Texas 77378
Re: Annual Ordinance Authorizing Municipal Participation in
Regulatory Proceedings of Entergy Texas,Inc.in 2025
Dear Steering Committee of Cities located in Entergy Texas, Inc.'s Service Territory:
It is once again time to authorize municipal participation in regulatory rate proceedings
involving Entergy Texas, Inc. ("ETI" or "Company") before the Public Utility Commission of
Texas ("PUCT"or"Commission"). Attached is a proposed Ordinance for your consideration
to authorize participation in rate proceedings in 2025. Please forward the completed
Ordinance to us by email at danlawtonlawfirm(agmail.com and
molly(umayhallvandervoort.com.
In 2024, we participated in several different types of rate proceedings that ETI initiated
with the Commission, summarized below:
• Application of Entergy Texas, Inc. for Approval of Rate Schedule UODG. Rate
Schedule UODG is a voluntary rate rider and customer agreement for customers
to participate in its Power Through program. The Power Through program allows
host customers to have distributed generation up to 10 MW on their premises. The
distributed generators will supply back-up electric service to the host customers
during a grid outage but will otherwise be available to provide capacity and energy
benefits to all ETI customers. Schedule UODG will only apply to customers that
opt into the Power Through program. We coordinated with Commission Staff and
other intervening parties to reach a settlement that clarifies ETI's reporting
Attorney-Client Privileged Communication 4
responsibilities regarding Schedule UODG in future proceedings. The
Commission will consider the parties' settlement agreement in early 2025.
• Application of Entergy Texas, Inc. to Adjust its Energy Efficiency Cost Recovery
Factor. The EECRF rider recovers costs related to ETI's energy efficiency
programs.This rider is adjusted annually with the updated rate going into effect on
January 1 of each year. The parties reached a settlement agreement that made a
small adjustment to the Company's request with no impact on the proposed rates.
The Commission approved the settlement agreement on December 12, 2024.
• Application of Entergy Texas; Inc. to Amend Its Certificate of Convenience and
Necessity to Construct a Portfolio of Dispatchable Generation Resources. ETI
seeks approval to construct the Legend Power Station and the Lone Star Power
Station, two new generation facilities with natural gas and hydrogen co-firing
optionality.If approved,these plants will add 1207 MW of capacity to serve ETI's
customers by mid-2028.
• Application of Entergy Texas, Inc. to Amend Its Certificate of Convenience and
Necessity to Construct a Portfolio of Renewable Generation Resources.ETI seeks
approval to construct the Segno Solar Facility and the Votaw Solar Facility. If
approved, these facilities will add a total of 311 MW of capacity to serve ETI's
customers beginning in 2027 and 2028,respectively.
• Application of Entergy Texas, Inc. for Approval of a Resiliency Plan. The
Company seeks approval of Phase I of its "Texas Future Ready Resiliency Plan,"
pursuant to Public Utility Regulatory Act § 38.078 (Transmission and Distribution
System Resiliency Planning by and Cost Recovery for Electric Utilities), which
was signed into law in 2023. ETI's resiliency plan is a comprehensive set of
resiliency measures that are intended to improve service reliability for customers
and to mitigate system restoration costs after extreme weather events. The projects
included in Phase I are expected to cost approximately $335 million, but ETI
intends to defer recovery of these costs until a future proceeding. The parties
reached a settlement that included additional reporting and record-keeping
requirements for ETI. The settlement is currently under consideration by the
Commission.
• Application of Entergy Texas, Inc.for Authority to Reconcile Fuel and Purchased
Power Costs. ETI requests to reconcile the fuel and purchased power expenses it
incurred between April 1, 2022 and March 31, 2024. ETI calculates an under-
recovery balance of approximately $30 million, which we are still evaluating. A
hearing is scheduled for May 14— 16, 2025.
• ETI filed applications to recover costs related to its distribution system
(Distribution Cost Recovery Factor or "DCRF") and its transmission system
(Transmission Cost Recovery Factor or "TCRF"). The DCRF applications were
uncontested by the Commission Staff and intervening parties and were approved
by the Commission. The TCRF is still pending, but as we do not anticipate any
Attorney-Client Privileged Communication 5
major issues, we expect a fmal order to be issued in early 2025. The DCRF and
TCRF are subject to true-up to prevent the Company from over-recovering its
expenses.
Looking forward to 2025, we will continue to participate in the TCRF and fuel
reconciliation proceedings and will monitor the proceedings related to new generation facilities.
We anticipate that the Company will file additional TCRF and DCRF applications for interim cost
recovery of investments made to its transmission and distribution systems. The Company is also
expected to file its annual application to amend its Energy Efficiency Cost Recovery Factor in
May 2025.
The continued support of each of the Cities in the Steering Committee has been
instrumental in the successful regulation of ETI and in maintaining reasonable rates for customers
within the Cities. We look forward to each City's continued participation with the Steering
Committee in the regulatory process. Please forward completed Ordinances to us by email at
danlawtonlawfirm(a gmail.com and mollv(a mayhallvandervoort.com.
If you have any questions or concerns,please call.
Sincerely,
Ikt& V . :
For Daniel J. Lawton
Attorney-Client Privileged Communication 6