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February 23, 2026 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND S30 p.m. February 23,2026 1. MEETING The meeting was called to order at 5:30 p.m.by Mayor Darby 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 PLEDGES OF ALLEGIANCE The invocation and Pledges of Allegiance were led by Councilmember Sonnier. 3. CITIZEN COMMENTS Jackie Toups, 613 North 14th Street, criticized the city manager hiring process and questioned the lack of transparency in the hiring process. Angela Fannett, 1016 North 31st Street,requested that the council amend the 3-minute rule for public comments to allow reasonable time with council's discretion. Greg Miller, 1404 Helena Avenue, criticized the council's performance and lack of transparency. Keith Bass, 2415 Avenue E, expressed disappointment in the treatment of city employees and the city manager hiring process. Nick Lagusis, 723 South 23rd Street, criticized the city's hiring and firing process. Jolei Shipley, 8765 Holmes Road, criticized the council's business practices and for not doing adequate research on city manager candidates. 4. 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. Minutes continued, February 23, 2026 A motion was made by Councilmember Jones and seconded by Councilmember Duplant to approve the Consent Agenda Items "a through c"as presented. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. NOES: None. a. Minutes—February 9, 2026 regular meeting b. January 2026 Departmental Reports c. Tax Assessor Collection Report—January 2026 Mayor Darby moved to approve the consent agenda with a stipulation that better reporting is needed from the inspection department using GovWell processes. A motion was made by Councilmember Duplant to move several regular agenda items to the March 9, 2026 council meeting. The motion died for lack of a second motion. 5. REGULAR AGENDA NEW BUSINESS Item 5.m was moved to the beginning of the meeting as requested by Angela Fanette. Angela Fannette requested that the next Infrastructure Committee meeting be scheduled. She also detailed her research on grants and repair priorities, emphasizing the need to address Level 4 and 5 sewer issues citywide rather than focusing only on one-section. a. A motion was made by Councilmember Jones and seconded by Mayor Pro Tern Ortiz to approve a proclamation in regards to Black History Month. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier, and Ortiz. NOES: None. b. Interim City Manager Bruce Mills presented recommendations from insurance- consultant Carolyn Miller with RWA regarding windstorm insurance proposals. The recommendation was to accept Option 2 from Victor Insurance Managers for$639,599, representing nearly $300,000 in savings from the previous year's premium of$938,784. The proposal includes $50 million loss limit with a$25,000 deductible for windstorm coverage. A motion was made by Councilmember Sonnier and seconded by Councilmember Duplant to approve Option 2 from Victor Insurance Managers for $639,599. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. NOES: None. c. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to approve a request from Langham Elementary to utilize the Nederland Recreation Center for a school field trip. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. 2 Minutes continued, February 23, 2026 NOES: None. d. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to approve a request from Buckstin Brewery to operate a beer garden from March l lth to March 14th. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. NOES: None. e. A motion was made by Councilmember Duplant and seconded by Councilmember Jones to accept the "Racial Profiling Report" from the Nederland Police Department in accordance with Article 2.131 — 2.138 of the Texas Code of Criminal Procedures, as presented. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. NOES: None. f. A motion was made by Mayor Pro Tern Ortiz and seconded by Councilmember Sonnier to approve the Quarterly Investment Report from the Finance Department. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz. NOES: None. Finance Director Heather Stucker also announced the city received the Certificate of Excellence in Financial Reporting from the Government Finance Off cers,Association for fiscal year 2024. g. Interim City Manager Mills presented a budget amendment totaling$187,800 for staffing needs in three departments: - $61,500 for reinstating executive secretary position in city manager's office - $52,000 for reinstating accounting supervisor position in fmance department - $49,300 for additional meter reader position and part-time department clerk - $25,000 for additional meter truck. Mills explained the executive secretary and city clerk positions were previously combined but the workload has become unsustainable. These two positions will be reinstated as separate positions. This staffing change will provide improved support to the City Council and the City Manager's office. The Finance department will be reinstating the Accounting Supervisor position, which was eliminated in 2023 when the supervisor retired after 25 years of service. With this reinstatement,the current Accountant will move to the Supervisor role. The department will also reclassify the Accountant position to be filled as an Accounts Payable Specialist position. These staffing changes will improve workload distribution,reduce overtime, and provide the Finance department with the necessary staffing to effectively deliver full-service finance, accounting, and billing functions. 3. Minutes continued, February 23, 2026 One meter reader position will be added, as well as a small meter truck. This extra position will enable this-department to further the installation and replacement of old meters as well as reduce overtime expenses. Finance Director Heather Stucker confirmed funding would come from general fund reserves and water/sewer fund. Following discussion, Agenda Item 5.g was presented for a vote without a formal motion. The vote carried with four members present voting in favor and one member voting with objection. AYES: Mayor Darby,Councilmembers Duplant,Sonnier,and Ortiz. NOES: Councilmember Jones. h. Interim Public Works Director Taylor Shelton provided an update on ongoing infrastructure projects including: -Water treatment plant clarifier project nearing completion -Phase 1 and 2 sewer replacement projects with Westwood and Alco -LED street light replacement by Entergy expected to complete by summer -Applications submitted for various grants including $12 million from Texas Water Development Board- Street striping and pavement repair projects in development Mayor Pro Terri Ortiz asked about delays in the clarifier project with Mr. Shelton explaining parts availability issues. Keith Bass questioned the grant application timeline and follow-up on previous commitments for ditch repairs. i. Discussion was held regarding a potential moratorium on new multi-family and duplex construction. Interim City Manager Mills reported that since zoning changes in 2018' requiring 80-foot lots for duplexes, only 3 duplex permits have been issued and no multi-family permits have been issued since 2010. Jolei Shipley identified specific locations where duplexes have been built that may not comply with current ordinances, including properties on 28th Street that exceed the 40%lot coverage requirement and are built on lots smaller than required. Building Official George Wheeler clarified that one duplex subdivision was approved prior to the 2018 zoning changes and was grandfathered in. No formal action was taken on the moratorium discussion. j. Discussion was held on code enforcement priorities and staffing. Interim City Manager Mills explained the City has one code enforcement officer and questioned whether the council wants proactive or reactive enforcement. 4 Minutes continued, February 23, 2026 Citizens raised concerns about specific properties including houses on 33rd Street and Avenue H that pose safety hazards. City Attorney Richard Hughes reported that enforcement actions are being pursued through municipal court and potentially district court if necessary. Fire Chief Terry Morton clarified that the International Fire Code only addresses commercial properties,not residential, and that residential issues fall under the International Residential Code from 2012, which needs updating. Mayor Darby asked that this item be placed on the next agenda. City Attorney Hughes stated requested items for agendas will need to be prioritized. k. Discussion was held regarding a comprehensive master plan for the City. Interim City Manager Mills reported that a grant application for$250,000 has been submitted to fund the planning process,with results expected soon. 1. Renee O'Connor, 1 131 Gary Avenue,requested that "unfinished business" be added as a regular agenda item to track ongoing issues and provide accountability. She also criticized the enforcement of the 3-minute rule and requested better adherence to Robert's Rules of Order. m. Item 5.m was moved to the beginning of the meeting. n. David Wedgworth, 712 Carriage Lane, questioned how infrastructure projects are being tracked and emphasized the need for better project management. o. Discussion was held regarding action authorizing the Nederland Economic Development Corporation to offer owner financing on individual properties in the Off Boston area. EDC Attorney Jim Wimberly requested time to research whether offering owner financing on the Off Boston area properties would result in significantly better prices. He asked for approximately one month to gather information from realtors before bringing a recommendation back to council. No motion was made to proceed with the item, so it will return to a future agenda after the EDC completes its research. p. City Manager Mills provided a chronology of the former Mid-Jefferson Hospital property conversion to hotel/motel use. The property received certificates of occupancy for 10 rooms in February 2024 and an additional 50 rooms in March 2025, operating as "Turnaround Hotel." Jolei Shipley questioned whether the facility meets the city's definition of hotel/motel. 5 Minutes continued, February 23, 2026 Building Official Wheeler confirmed the facility is properly zoned for hotel use in the C-3 Highway Commercial district. q. The council entered executive session to consult with the city attorney regarding the forensic audit. 6. EXECUTIVE SESSION The regular meeting was recessed at 9:04 p.m-. by Mayor Darby for the purpose of conducting an Executive Session as authorized by Texas Government Code, Consultation with Attorney,pursuant to Section 551.071 of the Texas Government Code,regarding the forensic audit. 7. RECONVENE The regular meeting was reconverted at 9:45 p.m. by Mayor-Darby. 8. Mayor Darby stated City Attorney Hughes will be contacting Baker Tilly in the coming days and will report back to council with his determination. 10. ADJOURN There being no further business Mayor Darby adjourned the meeting at 9:46 p.m. /.7 V'"3/P 'l arby, a or City o ederland, Texas ATTEST: dceLf WaleitUW Joni Underwood, City Clerk City of Nederland, Texas ,.��`‘\ E.DFjQ/';%,;���i w Imo;' '4 (4' ,, 'I....FI... F.I� /II,/IIII1111111� ` 6 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT Jeffrey P. Darby Mayor Bret Duplant Council Member.—Ward I Britton Jones Council Member—Ward ll Randy Sonnier Council Member—Ward III Jeff Ortiz Council Member—Ward IV Bruce Mills Interim City Manager Joni Underwood City Clerk Richard Hughes City Attorney I Heather Stucker Director of Finance Rod Carroll Police Chief t� Terry Morton Fire Chief Dannie Davis Interim Director of Public Works George Wheeler Building Official Jacob Pitts Inspections Adm.Secretary Molli Hall Librarian Stephanie Gaspard Human Resources Director Toby Latiolais Parks Director V Taylor Shelton Assist.to the City Manager 44e / P. '.rby, Mayor OLf; CULh Joni Ur6erwood, City Clerk Date ORDINANCE NO.2026-02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2025- 2026 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS,the City Council previously approved Ordinance No. 2025-16 which adopted the Fiscal Year 2025-2026 City Budget;and, WHEREAS,the City Council deems it necessary to amend the current budget to increase expenditures as set out in Attachment"A"attached hereto;and, WHEREAS,the 2025-2026 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, 2025 and ending September 30,2026,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 2025-2026 is amended to allow for increases in 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 FEBRUARY,2026. 4/////r.„..6 " re Darby,Mayor City of Nederland,Texas ATTEST: 1 l,,_,1dAid Joni Underwood City Clerk " , APPROVED AS TO FORM: •*'—.J_N: •;ZSi SOF Richard Hughes,City Attorney `''mrr�,E �"°°� 1 BUDGET ORDINANCE AMENDMENT—ATTACHMENT A GENERAL FUND Amend General Fund by and increasing expenditure line items as detailed below: Increase 01-1300-6110 Salaries&Wages $48,400 Increase 01-1300-6121 Group Insurance $5,800 Increase 01-1300-6124 TMRS $4,200 Increase 01-1300-6126 Social Security $2,900 Increase 01-1300-6128 Worker's Compensation $200 Bring back the position of Executive Secretary for the City Manager's office Increase 01-1500-6110 Salaries&Wages $38,600 Increase 01-1500-6121 Group Insurance $5,800 Increase 01-1500-6124 TMRS $4,400 Increase 01-1500-6126 Social Security $3,000 Increase 01-1500-6128 Worker's Compensation $200 Move the Accountant position back to Accounting Supervisor and create Accounts Payable Specialist WATER&SEWER FUND Amend Water&Sewer Fund by increasing expenditure line items as detailed below: Increase 50-6100-6110 Salaries&Wages $25,000 Increase 50-6100-6115 Extra Help $12,500 Increase 50-6100-6121 Group Insurance $5,800 Increase 50-6100-6124 TMRS $2,800 Increase 50-6100-6126,Social Security $2,900 Increase 50-6100-6128 Worker's Compensation $300 Add third meter position and bring back a part time department clerk in the Meter/Billing& Collections Department EQUIPMENT REPLACEMENT FUND—WATER&SEWER Amend Equipment Replacement Fund—Water&Sewer Fund by increasing expenditure line items as detailed below: Increase 36-0000-6742 Motor Vehicles $25,000 Purchase new Meter Reader truck for Utility Billing Department. 2