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04-06-2026 Agenda with attachmentsNEDERLAND CITY COUNCIL AGENDA NOTICE is hereby given of a regular meeting of the Nederland City Council to be held Monday, April 6, 2026, 5:30 p.m., at the Nederland City Hall, 207 North 12th Street, Nederland, Texas, for the purpose of considering the following agenda items. The City Council reserves the right to retire into Executive Session concerning any of the agenda items whenever it is considered necessary and legally justified pursuant to Texas Government Code, Chapter 551. Members of the public can participate remotely via Zoom Teleconferencing. Citizens may join the Zoom Meeting by clicking on the Virtual Council Meeting https link on the City of Nederland’s website or calling the Zoom Call in Number and entering the Meeting ID# on the City of Nederland’s website. The City of Nederland's Council meeting will be live on the city's Facebook page (https://www.facebook.com/CityofNederlandTX) and the city's YouTube Channel (https://www.youtube.com/@CityofNederlandTX). PUBLIC COMMENT ON AGENDA ITEMS. Citizens may provide comments regarding the items listed on the Consent or Regular Agenda. Citizens will address the City Council from the podium after providing their name and address. Comments shall not exceed three minutes. 1. CALL THE MEETING TO ORDER 2. INVOCATION AND PLEDGES OF ALLEGIANCE 3. PRESENTATION Presentation by Police Chief Rod Carroll, Nederland Police Department, regarding their participation with the Southeast Texas Violent Crime Task Force under the Federal Bureau of Investigations. 4. CITIZEN COMMENTS At this time, members of the audience may comment on any city-related subject not on the agenda. Anyone wishing to speak shall sign in before the meeting with their name and address. Comments are limited to three minutes unless otherwise allowed by City Council. The Texas Open Meetings Act prohibits the Council from discussing items not listed on the agenda. A member of the audience that desires to speak during City Council’s consideration of any specific agenda items is requested to notify City staff prior to the start of the meeting. 5. 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. Minutes – March 23, 2026 regular meeting and March 12, 2026 special meeting. 6. REGULAR AGENDA UNFINISHED BUSINESS AGENDA April 6, 2026 Page 2 a. City Manager to provide updates on Public Works engineering projects. NEW BUSINESS b. Discussion and possible action approving the replat of 1111 Boston Avenue described as S W 81’ Lots 13-15 Block 18 of Nederland Addition to become Trat 13-A and 13-B of Nederland Addition. c. Discussion and possible action approving Ordinance 2026-04, suspending the rates proposed by CenterPoint Energy Resources Corporation dba CenterPoint Energy Entex and CenterPoint Energy Texas Gas Company’s Gas Reliability Infrastructure Program filing made on February 17, 2026. d. Discussion and possible action to approve Resolution No. 2026-06, authorizing the City of Nederland Police Department to submit a grant proposal to Motor Vehicle Crime Prevention Authority for the 2026 Auto Theft Task Force Grant Program. e. Discussion and possible action approving the Proposed Agreed Order with Texas Commission on Environmental Quality regarding the violation on December 15, 2025. f. Discussion and possible action ratifying payment to Baker Tilly in the amount of $3,621.50 over the approved $78,000. g. Discussion and possible action ratifying payment to Industrial Commercial Mechanical in the amount of $2,746.61 for repairs to air conditioning unit at the Marion & Ed Hughes Public Library. h. Discussion and possible action approving payment to Hernandez Office Supply regarding furniture for administrative staff in annex trailer. 7. EXECUTIVE SESSION (No Public Discussion on These Items) The City Council will announce that it will go into Executive Session, pursuant to Chapter 551 of the Texas Government Code, to discuss matters as specifically listed on the agenda, or as authorized by law. Consultation with Attorney – Tex. Gov’t Code, Section 551.071 8. RECONVENE Reconvene into regular session and discuss and take action, if any, on items discussed in Executive Session. 9. COUNCILMEMBERS AND CITY MANAGER COMMENTS 10. ADJOURN Jeffrey P. Darby, Mayor City of Nederland, Texas AGENDA April 6, 2026 Page 3 ATTEST: Joni Underwood, City Clerk City of Nederland, Texas “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” "CONFORME A LA SECCIÓN 30.07, DEL CÓDIGO PENAL (ENTRADA SIN AUTORIZACIÓN POR TITULAR DE LICENCIA CON UNA PISTOLA VISIBLE), UNA PERSONA CON LICENCIA BAJO EL SUBCAPÍTULO H, CAPÍTULO 411 DEL CÓDIGO DE GOBIERNO (LEY DE LICENCIAS DE PISTOLAS), NO PUEDE ENTRAR EN ESTA PROPIEDAD CON UNA PISTOLA VISIBLE” April 6, 2026 Meeting ITEM 3. PRESENTATION Police Chief Rod Carroll of the Nederland Police Department will make a presentation regarding their participation with the Southeast Texas Violent Crime Task Force under the Federal Bureau of Investigations. If approved, Detective Payton Collins will be assigned as a Task Force Officer to expand Nederland PD’s ability to access the federal criminal justice assets and create efficiency of job functions. This position will allow the Nederland Police Department to present cases directly to the US Attorney’s Office for prosecution. This is a part-time position and Detective Collins will continue to be assigned cases at Nederland PD. April 6, 2026 Meeting ITEM 5. 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 the items unless a councilmember so requests, in which event the item will be removed from the Consent agenda and considered separately. I would recommend acceptance of all the below-listed items. a. Attached are the minutes of the March 23, 2026 regular meeting and March 12, 2026 special meeting. REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 5:30 p.m. March 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 Mayor Pro Tem Ortiz. 3. The agenda was modified with Item 5 (Fiscal Year 2024-2025 Audit Presentation) moved to position 3, followed by citizen comments as Item 4 and the consent agenda as Item 5. Christa Wofford of Mitchell T. Fontenote CPA, Inc. was present to review the Fiscal year 2024-2025 audit report. She summarized the auditor’s report and stated it was a clean, unmodified opinion with no exceptions found during testing. 4. CITIZEN COMMENTS Ms. Laura Smith, 1208 Ave C, addressed civility in city government. She stated we must communicate our points of view with civility on both sides. Jackie Toups, 613 North 14th Street, addressed concerns about board members speaking in dual capacities and raised concerns about council members who serve on the EDC. Greg Miller, 1404 Helena Avenue, inquired about the role of Taylor Shelton with the city. He raised concerns about incidents in the Public Works Department and questioned staffing priorities. Curtis Stratton, 703 South Willow Street, expressed concerns about decisions being made and stated employees of this city need to be respected. Minutes continued, March 23, 2026 2 Angela Fanette, 1016 N 31st Street, stated her belief that an infrastructure committee should not be an ad hoc committee and emphasized the need for proper records. Jolei Shipley, 8765 Holmes Rd., raised concerns about a replat issue on Boston Avenue and potential legal concerns that should be addressed transparently. 5. 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 Councilmember Jones to approve the Consent Agenda Items “a through c” as presented. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. a. Approve minutes of March 9, 2026 regular meeting. b. Accept departmental reports for February 2026. c. Accept Tax Assessor Collection Report for February 2026. 6. REGULAR AGENDA UNFINISHED BUSINESS a. City Manager, Manuel De La Rosa, provided a comprehensive update on public works and engineering projects, stating the engineering firms will be providing progress reports by the 7th day of each month. He emphasized that these progress reports would be posted online for public access. He detailed the status of bond issuances and reviewed specific project updates on the Nederland Water Plant Clarifier Number 1, Nederland Sewer Line Rehabilitation (Western 20%), Nederland Lift Station Rehabilitation project, Nederland Wastewater Treatment Plant Facility Assessment and the Nederland Wastewater Treatment Plant Centrifuge Replacement. Mr. De La Rosa addressed staffing concerns and emphasized the importance of capital improvement planning. NEW BUSINESS b. Discussion was held regarding the programming and design services agreement with PGAL for the 1308 Boston Avenue building. City Manager, Manuel De La Rosa, outlined the renovation project for a future city hall. The building is two-story with 18,000 square feet. This renovation would allow more room for our staffing. Minutes continued, March 23, 2026 3 Councilmember Jones outlined multiple benefits of the proposal which included adding adequate space for public attendance at meetings, returning public property to tax rolls (both current city hall and Hanson Building), consolidating all departments in a single building, reducing insurance and windstorm costs by maintaining one commercial building instead of three, providing professional workspace for staff, and no increase in tax rate as it could be financed with cash. A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Sonnier to postpone Item 6.b – Agreement with PGAL for programming and design services of the building at 1308 Boston Avenue until the April 20, 2026 council meeting for further information. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. c. A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Duplant to approve Resolution No. 2026-04 on second reading, ratifying the action of the Nederland Economic Development Corporation Board of Directors related to the $27,500 incentive offered to Wicked Casian with a 2-year payback period. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. d. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to approve Resolution No. 2026-05, amending the authorized account signatories for the City’s TexPool Investment Account. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. e. A motion was made by Councilmember Jones and seconded by Councilmember Duplant to approve an Interlocal Agreement with the Nederland Independent School District regarding financial assistance of the summer recreation program, reimbursing NISD up to 50% of the cost, not to exceed $25,000. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. f. A motion was made by Councilmember Jones and seconded by Mayor Pro Tem Ortiz to accept the resignation of Gary Tiner from the Civil Service Commission for the term ending June 30, 2026. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. City Manager De La Rosa explained this item was before council to properly accept a Minutes continued, March 23, 2026 4 resignation that had occurred verbally in January 2026 but was not received in writing until March. Since the term only extends through June 30th, the city is advertising and accepting applications to fill the position at this time. g. A motion was made by Councilmember Duplant and seconded by Councilmember Jones to approve a contract renewal with the YMCA for the Operation of the Nederland Swimming Pool. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. City Manager De La Rosa stated the city will begin looking at in-house certifying of lifeguards for summer 2027 season. h. A motion was made by Councilmember Duplant and seconded by Mayor Pro Tem Ortiz to approve a contract extension with CrowderGulf for debris removal and emergency response products, equipment and services. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. i. A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Jones to approve a contract extension with Debristech, LLC for disaster debris monitoring services. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Sonnier. 7. EXECUTIVE SESSION The regular meeting was recessed at 7:35 p.m. by Mayor Darby for the purpose of conducting an Executive Session as authorized by Texas Government Code, Consultation with Attorney – Tex. Gov’t Code, Section 551.071. 8. RECONVENE The regular meeting was reconvened at 7:46 p.m. by Mayor Darby. He announced the Executive Session was held for informational purposes only and no action is necessary. 9. COUNCILMEMBERS AND CITY MANAGER COMMENTS City Manager De La Rosa announced the upcoming retirement of Building Official George Wheeler. Jacob Pitts will be placed in the Interim Building Official position for a probationary period of 60 days. Mr. De La Rosa stated that Taylor Shelton is currently employed as a working consultant for the city regarding public works projects. Minutes continued, March 23, 2026 5 10. ADJOURN There being no further business Mayor Darby adjourned the meeting at 7:51 p.m. __________________________ Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: ___________________________ Joni Underwood, City Clerk City of Nederland, Texas SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 5:30 p.m. March 12, 2026 1. MEETING The meeting was called to order at 5:30 p.m. by Mayor Jeffrey P. Darby at the Nederland City Hall, 207 N. 12th St., 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. EXECUTIVE SESSION The regular meeting was recessed at 5:30 p.m. by Mayor Jeffrey P. Darby for the purpose of conducting an Executive Session as authorized by Texas Government Code, Deliberations about Real Property – Texas Government Code, Chapter 551.072, 1308 Boston Avenue, Annex trailer behind City Hall. 3. RECONVENE The regular meeting was reconvened at 6:36 p.m. by Mayor Jeffrey P. Darby. 4. A motion was made by Mayor Pro Tem Ortiz and seconded by Councilmember Jones to postpone Item 4 – Real Property Located at 1308 Boston Avenue, until the March 23, 2026 regular meeting. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Jones 5. A motion was made by Councilmember Jones and seconded by Mayor Pro Tem Ortiz to enter into a lease contract with Pacific Mobile Structures to lease a temporary 24-foot by 60-foot office trailer for up to 24 months. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Duplant, Jones, Sonnier, and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Jones Council Member Jones requested an update on the need for additional space. City Manager Manny De La Rosa explained that city employees are out of room in this building and need additional space. Mr. De La Rosa further explained that moving HR staff would allow the finance and utilities staff to rearrange their offices and stay in this building as we continue to add personnel to our ranks. Minutes continued, March 12, 2026 6. ADJOURN There being no further business Mayor Jeffrey P. Darby adjourned the meeting at 6:44 p.m. __________________________ Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: ___________________________ Joni Underwood, City Clerk City of Nederland, Texas April 6, 2026 Meeting ITEM 6. REGULAR AGENDA UNFINISHED BUSINESS a. Manny De La Rosa will provide an update on the Public Works engineering projects. NEW BUSINESS b. The Planning & Zoning Commission met February 25, 2026 to discuss the proposed replats of 1111 Boston Ave. The building official highlighted the re-plat of 1111 Boston Ave. would create lot sizes that deviate from the City’s minimum standard, and recommended a modification to the re-plat that would create a private water line easement and a wall maintenance easement on Tract 13-B for the benefit of Tract 13-A. A motion was made to send a recommendation to City Council to approve the re-plat as is contingent on deed language in the contract addressing the water line easement and a wall maintenance easement for the building. Attached are the building official’s background memo, map drawing and Planning and Zoning minutes. This item was previously postponed at the March 9, 2026 city council meeting to allow time for legal review. c. Attached is the proposed Ordinance No. 2026-04, suspending the rates proposed by CenterPoint Energy Resources Corporation dba CenterPoint Energy Entex and CenterPoint Energy Texas Gas Company’s Gas Reliability Infrastructure Program filing made on February 17, 2026. d. Attached is the proposed Resolution No. 2026-06, authorizing the City of Nederland Police Department to submit a grant proposal to Motor Vehicle Crime Prevention Authority for the 2026 Auto Theft Task Force Grant Program. The grant amount is $63,250 for the purchase of five Flock cameras with service warranties for five years to expand officers’ ability to access components of the Real Time Crime Center and create efficiency of job functions. e. Attached is the proposed Agreed Order with Texas Commission on Environmental Quality regarding the violation on December 15, 2025. Michael Mitchell, Water Treatment Plant Supervisor, will be present to answer any questions. He will have documentation to show previous and current data to reflect that this violation was due to a scheduling conflict with the third party sampler and not a representation of our normal operations. f. Attached is a listing of payments made to Baker Tilly along with copies of invoices showing the amount exceeding the council approved $78,000. Six payments were made to Baker Tilly totaling $81,621.50. On June 23, 2025, Council approved the hiring of Baker Tilly to perform a forensic audit on the City of Nederland, in an amount not to exceed $78,000. The overage paid amount totals $3,621.50. g. Attached is an invoice for repairs to the main AC unit at the Marion and Ed Hughes Public Library which covers replacement of the blower motor. h. Attached is a quote from Hernandez Office Supply for furniture for administrative staff that will be relocated in the annex trailer behind City Hall and also the city clerk’s office. This quote is an estimate figure with a formal quote to follow. MEMORANDUM DATE: February 11, 2026 TO: Planning and Zoning Commission FROM: George Wheeler, Chief Building Official RE: Background to 1111 Boston Re-Plat Request ______________________________________________________________________ The EDC is requesting a re-plat to split the lots into two tracts, Tract 13-A and Tract 13- B as shown on the proposed re-plat. The EDC currently owns the complete property. The re-plat request is to split the building from the parking lot, which currently is part of the same property. Tract 13-B will be for a community parking lot with EDC keeping ownership, and the other being Tract 13-A so the building can be sold for private ownership. The re-plat has several lot size deviations from our minimum standards. The deviations are as follows: • Our zoning ordinance requires a minimum lot size to be 50ft in width and 100ft in depth and 5K sq. ft. in area. The tracts are: 1. Tract 13-A that has the building is shown to be 14.49 ft wide and 74.95 ft in depth from Boston Avenue. 2. Tract 13-B that the EDC will keep ownership of for a downtown community parking lot is shown to be 66.90 ft wide and 74.95 ft in depth from Boston Avenue. If approved the private sewer line from the existing building will cross Tract 13-B to its existing tap in the 20ft alleyway. The buildings private water line actually crosses the rear property line and runs into and down to the alleyway on others private property. This water line situation is between the two different property owners since it is not one of the tracts being re-platted. If the other property refuses to allow the water line, the EDC would have to reroute the water line across Tract 13-B in a private water line easement. If it is worked out between the two, I recommended to the EDC that a private water line easement be created for the benefits of Tract 13-A to maintain their water line that runs in others private property. The gas service to the building would also run across Tract 13-B to its tap in the alleyway. EDC is requesting a letter of approval from the gas company to submit to the inspection department and have recorded with the replat. Entergy to the building is fed from Twin City Hwy. EDC is needing to sell the building separately; so, by way of the re-plat, a community parking lot can be created for the down town area, which will be owned by the EDC. For this reason, the deviations to our minimum lot standards shown in the re-plat, could be considered an undue hardship on the applicant. This undue hardship creates a better understanding for approval, should the city wish to approve the re-plat with the deviations. This is due to the circumstances pertaining specifically to the applicant being the EDC. EDC whom owns the complete property is wishing to create a community downtown parking lot for the best interest of the city while at the same time not having any use for ownership of the building. As opposed to a private developer owning this property and requesting a re-plat into these same size two tracts for private development on each tract not for public use. Should the replat be approved, any future business occupying the building would not have private off-street parking. But, that area of Boston is exempt from meeting the off- street parking standards in our zoning ordinance. They could however use the EDC community parking lot. If you have any questions you can contact me at (409) 723-1502. ccessSurveyors, LLCACommercial - Industrial - ResidentialSWNE”””“””””“”””Tract 13-A0.025 AcresTract 13-B0.114 AcresP.O.B.Boston AvenueTwin City HighwaySITEPRELIMINARYFOR REVIEW ONLY ORDINANCE NO. 2026-04 ORDINANCE OF THE CITY OF NEDERLAND, TEXAS, SUSPENDING THE RATES PROPOSED BY CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS COMPANY’S GAS RELIABILITY INFRASTRUCTURE PROGRAM FILING MADE WITH THE CITY ON OR ABOUT FEBRUARY 17, 2026; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about February 17, 2026, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas (“CenterPoint” or “Company”) filed an Annual Gas Reliability Infrastructure Program (“GRIP”) adjustment with the City of Nederland (“City”) to increase gas rates in the Houston, Texas Coast, South Texas, and Beaumont/East Texas geographic rate areas pursuant to Gas Utility Regulatory Act, TEX. UTIL. CODE (“Gas Utility Regulatory Act”) § 104.301; and WHEREAS, the Company proposed an effective date of April 18, 2026, for the requested increase unless the City suspends the date for a period no longer than forty-five (45) days; 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 Gas Utility Regulatory Act § 103.001; and WHEREAS, Gas Utility Regulatory Act § 104.301 requires a streamlined process for the recovery of the costs of incremental investment by a gas utility; and WHEREAS, the City’s review of CenterPoint’s GRIP filing is limited to a ministerial review of the filing for compliance with the statute; and WHEREAS, the City finds the need to suspend the effective date of CenterPoint’s requested rate increase for 45 days beyond the Company’s proposed effective date until June 2, 2026, in order to review the Company’s filing for compliance with Gas Utility Regulatory Act § 104.301; and WHEREAS, the reasonableness of the Company’s investment will be reviewed in CenterPoint’s future base rate case where all costs included in CenterPoint’s GRIP filing will be subject to refund. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. The effective date of the Company’s proposed GRIP rate increase, and the proposed tariffs related thereto, is hereby suspended until June 2, 2026. Section 3. To the extent the City finds that the rates proposed by CenterPoint’s filing comply with Gas Utility Regulatory Act § 104.301, then the rates will become effective by operation of law on June 2, 2026. Section 4. The meeting at which the ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 5. This Ordinance shall become effective from and after its passage. PASSED AND APPROVED this 6th day of April, 2026. Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: Joni Underwood, City Clerk City of Nederland, Texas APPROVED AS TO FORM: Richard D. Hughes, City Attorney City of Nederland, Texas 1 March 5, 2026 Via E-Mail Mr. Richard G. Baker City Attorney – City of Anahuac P.O. Box 10066 Liberty, Texas 77575 Mr. Ronald Stutes City Attorney – City of Arp Wilson Law Firm 909 ESE Loop 323, Suite 400 Tyler, Texas 75701 Ms. Tracey Pritchett City Secretary – City of Arp 109 W. Longview Arp, Texas 75750 Ms. Sharae Reed City Attorney – City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Mr. Kenneth R. Williams City Manager – City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Mr. Paul Fukuda City Attorney – Bridge City 260 Rachal Post Office Box 846 Bridge City, Texas 77611 Mr. Lee Tipton City Manager – City of Cleveland 907 E. Houston Cleveland, Texas 77327 Mr. Tommy Ramsey City Attorney – City of Cleveland Wortham Tower, Suite 600 2727 Allen Parkway Houston, Texas 77019 Ms. Juanita Limon City Secretary – City of Cleveland 907 E. Houston Cleveland, Texas 77327 Mr. Leonard Schneider City Attorney – City of Huntsville Law Offices of Leonard Schneider PLLC 2261 Northpark Dr., Suite 445 Kingwood, TX 77339 Mr. Scott Swigert City Manager – City of Huntsville 1212 Ave. M Huntsville, Texas 77340 Mr. Bryan Kendrick City Manager – City of Liberty 1829 Sam Houston Liberty, Texas 77575 THE LAWTON LAW FIRM, P.C. 12600 Hill Country Blvd., Suite R-275 • Austin, Texas 78738 • 512/322-0019 2 Mr. Brandon Davis City Attorney – City of Liberty 1517 Trinity Liberty, Texas 77575 Mr. Manuel De La Rosa City Manager – City of Nederland P.O. Box 967 Nederland, Texas 77627 Mr. Richard D. Hughes City Attorney – City of Nederland P.O. Box 967 Nederland, Texas 77627 Mr. Guy Goodson City Attorney – City of Orange GERMER PLLC 550 Fannin, Suite 400 Beaumont, Texas 77701 Mr. Mike Kunst City Manager – City of Orange 812 North 16th Street P.O. Box 520 Orange, Texas 77630 Mr. Ronald Burton City Manager – City of Port Arthur P.O. Box 1089 Port Arthur, Texas 77641 Ms. Roxann Cotroneo City Attorney – City of Port Arthur P.O. Box 1089 Port Arthur, Texas 77641 Mayor Heidi Tutor City of Riverside P.O. Box 623 Riverside, TX 77637 Ms. Lynn Castelloe City Secretary – City of Riverside P.O. Box 623 Riverside, TX 77367 Mr. Solomon Freimuth City Attorney – City of Silsbee P.O. Box 186 Port Neches, Texas 77651 Ms. DeeAnn Zimmerman City Manager – City of Silsbee 105 South 3rd Street Silsbee, Texas 77656 Mr. Alex Stelly City Attorney – City of Sour Lake 2615 Calder Ave., Ste. 1070 Beaumont, Texas 77702 Mr. Jack Provost City Manager – City of Sour Lake 625 Hwy 105 W Sour Lake, Texas 77659 Re: CenterPoint Energy 2026 Annual GRIP Adjustment for the Houston, Texas Coast, South Texas, and Beaumont/East Texas Geographic Rate Areas Dear Cities: On February 17, 2026, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas (“CenterPoint” or “Company”) filed a Gas Reliability Infrastructure Program (“GRIP”) adjustment factor with each of your communities in 3 the Company’s Beaumont/East Texas geographic rate area. The Company is authorized to make annual GRIP rate change requests pursuant to Texas law passed in 2003, Gas Utility Regulatory Act, TEX. UTIL. CODE § 104.301 (“GRIP Statute”) also see Section 7.7101 of the Railroad Commission of Texas (“Commission”) Gas Services Division Rules. The GRIP Statute authorizes gas utility companies to request annual rate increases associated with year-to-year changes in incremental investment. The changes in investment are not subject to reasonableness review in the GRIP filing. Instead, all amounts collected under a GRIP filing are considered interim rates subject to review and refund in the Company’s next base rate proceeding. In addition, the Texas Legislature recently passed a bill that broadens the scope of GRIP filings. House Bill 4384 (89th Legislative Session), codified as Gas Utility Regulatory Act, TEX. UTIL. CODE § 104.302, authorizes a gas utility to classify certain capital investment and tax expenditures as “regulatory assets” that are then recoverable through the GRIP mechanism. Eligible expenses include post in-service carrying costs, depreciation, and ad valorem taxes. Historically, gas utilities have not been allowed to recover these costs until they are approved by a regulatory authority, whether under the GRIP Statute or through a base rate case. The new law essentially erases this regulatory lag by allowing gas utilities to track costs from the date new plant goes into service and then to recover those costs retroactively. As with the GRIP Statute, amounts included in these regulatory assets are not subject to reasonableness review until the next base rate case and are subject to refund with interest. CenterPoint has determined that its capital investment in the Houston, Texas Coast, South Texas, and Beaumont/East Texas geographic rate areas increased by $571,202,171 in calendar year 2025. This incremental GRIP investment results in the following average monthly customer bill impact for each affected customer class: Customer Impact Summary CUSTOMER CLASS MONTHLY BILL INCREASE RESIDENTIAL $2.47 GENERAL SERVICE-SMALL VOL. $4.18 GENERAL SERVICE-LARGE VOL. $55.23 The GRIP Statute provides that the proposed GRIP rate surcharge will become effective 60 days from the date of the Company’s filing or April 18, 2026, unless suspended by the Cities. Cities may suspend the GRIP rate increase for an additional 45 days beyond the Company’s proposed effective date of April 18, 2026, while reviewing the GRIP application. Attached to this letter is a Rate Suspension Ordinance for your consideration. This Rate Suspension Ordinance will suspend the GRIP rate effective date until June 2, 2026. The review process of a GRIP filing is generally a ministerial review limited to ensuring that the GRIP filing complies with the GRIP Statute. See Atmos Energy Corp. v. Cities of Allen, 353 S.W. 3d 156 (Tex. 2011). During the suspension period, any issues related to whether the GRIP filing comports with the GRIP Statute can be reviewed so that the Cities may make a final decision on this GRIP proposal. Note that under the new statute, recovery relates back to when plant went into service, so delaying the effective date will not reduce the total amount customers 4 will pay. Nonetheless, passing the Rate Suspension Ordinance will shift the effective date to a lower-consumption time of year, which may mitigate the initial bill impact on customers. Please remember, if your City wishes to suspend the proposed rates, you must take action by passing the attached Rate Suspension Ordinance prior to April 18, 2026. Otherwise, the Company’s requested rates will go into effect on April 18, 2026. Please send a completed copy of the final Rate Suspension Ordinance to by email: danlawtonlawfirm@gmail.com and molly@mayhallvandervoort.com. If there are any questions or concerns, please do not hesitate to call. Sincerely, /s/ Daniel J. Lawton Resolution No. 2026-06 A RESOLUTION OF THE CITY OF NEDERLAND, TEXAS, AUTHORIZING THE NEDERLAND POLICE DEPARTMENT TO SUBMIT A GRANT PROPOSAL TO THE MOTOR VEHICLE CRIME PREVENTION AUTHORITY FOR THE 2026 AUTO THEFT TASK FORCE GRANT PROGRAM, MAKING FINDINGS OF FACT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Nederland is committed to ensuring the safety and welfare of its residents, pedestrians, and motorists; and WHEREAS, the Nederland Police Department desires to enter into a Grant Agreement with the AUTO TASK FORCE GRANT PROGRAM to be funded by the MOTOR VEHICLE CRIME PREVENTION AUTORITY TASKFORCE GRANT PROGRAM for the 2026 fiscal year; and WHEREAS, the City Council finds that the Grant Agreement will enhance public safety and combat AUTO THEFT; and WHEREAS, the City of Nederland agrees to provide applicable matching funds for said project as required by the MOTOR VEHICLE CRIME PREVENTION AUTHORITY grant application; and WHEREAS, the City of Nederland agrees that in the event of the loss or misuse of the grant funds, the City agrees and assures the funds will be returned to the MOTOR VEHICLE CRIME PREVENTION AUTHORITY in full; WHEREAS, the City designates the Rod Carroll, Chief of Police, as the Authorized Official to apply for, accept, reject, alter or terminate the grant application for the MOTOR VEHICLE CRIME PREVENTION AUTHORITY GRANT PROGRAM and all other necessary documents to accept said grant on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. The City Council hereby authorizes Chief Rod Carroll on behalf of the Nederland Police Department to enter into the Grant Agreement. Section 2. The City Council finds that the Grant Agreement is in the best interest of public safety. Section 3. The City of Nederland does hereby approve the submission of the grant application for the MOTOR VEHICLE CRIME PREVENTION AUTHORITY 2026 AUTO THEFT TASK FORCE GRANT PROGRAM. Section 4. This Resolution shall take effect immediately upon passage. DULY RESOLVED AND ADOPTED by the City Council of the City of Nederland this 6th day of April, 2026 Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: Joni Underwood, City Clerk City of Nederland, Texas APPROVED AS TO FORM: Richard D. Hughes, City Attorney City of Nederland, Texas Brooke T. Paup, Chairwoman Tonya R. Miller, Commissioner Catarina R. Gonzales, Commissioner Kelly Keel, Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution P.O. Box 13087 • Austin, Texas 78711-3087 • 512-239-1000 • tceq.texas.gov How is our customer service? tceq.texas.gov/customersurvey printed on recycled paper March 20, 2026 The Honorable Jeffrey Darby Mayor of Nederland P.O. Box 967 Nederland, Texas 77627-0967 Via email Re: Proposed Agreed Order City of Nederland; RN103098778; Public Water Supply ID No. 1230006 Docket No. 2026-0080-PWS-E; Enforcement Case No. 68939 FOR SETTLEMENT PURPOSES ONLY Dear Mayor Darby: The Executive Director of the Texas Commission on Environmental Quality ("Commission" or "TCEQ") is pursuing an enforcement action against the City of Nederland violations of the Texas Health & Safety Code and Commission Rules. These violations were discovered during a record review conducted on December 15, 2025 through January 9, 2026, and documented in a letter dated January 9, 2026, from the TCEQ Drinking Water Special Functions Section. Please find enclosed a proposed agreed order which we have prepared in an attempt to expedite this enforcement action. The order assesses an administrative penalty of $20,125, identifies the violations that we are addressing, and identifies specific technical requirements necessary to resolve them. If you have any questions regarding this matter, we are available to discuss them in a conference in Austin or over the telephone. If we reach agreement in a timely manner, the TCEQ will then proceed with the remaining procedural steps to settle this matter. These steps include publishing notice of the proposed order in the Texas Register and scheduling the matter for approval by the Commission. We believe that handling this matter expeditiously could save the City of Nederland and the TCEQ a significant amount of time, as well as the expense associated with litigation. If you agree with the order as proposed, please have an authorized representative sign and return the original order and the penalty payment (check payable to "TCEQ" and referencing the City of Nederland, Docket No. 2026-0080-PWS-E) to: Financial Administration Division, Revenue Operations Section Attention: Cashier's Office, MC 214 Texas Commission on Environmental Quality The Honorable Jeffrey Darby Page 2 P.O. Box 13088 Austin, Texas 78711-3088 Should you elect to pay the payable penalty electronically, TCEQ invites you to use ePay, the TCEQ's secure online payment system at: https://www3.tceq.texas.gov/epay/index.cfm. Please ensure that you have the following details ready when making your payment using ePay: Payable Penalty/Fee Amount: $20,125 Penalty Type/Fee Category: [WATER QUALITY ACT VIOLATIONS (ADMIN PENALTIES)] o This information will be needed on the "Select Fee" page on ePay. Program Area ID: ENF Project Number/Case No.: 68939 Email Us Your Receipt: To ensure prompt recognition of your payment, please forward your email receipt from ePay to Ryan Fukawa at ryan.fukawa@tceq.texas.gov. For detailed instructions on how to complete your payment using ePay, please use the Enforcement Division ePay Guide for Orders at: https://www.tceq.texas.gov/compliance/enforcement/penalty-payment. Should you believe you are unable to pay the proposed administrative penalty, you may claim financial inability to pay part or all of the penalty amount. Please contact us immediately to obtain a list of financial disclosure documents that must be submitted within 15 days of the receipt of this letter. These documents, once properly completed and submitted, will be thoroughly reviewed to determine if we agree with the claim of financial inability. Please be aware that if financial inability is proven to the satisfaction of staff, discussions pertaining to the penalty amount adjustment will focus only on deferral and not on waiver of the penalty amount. You may be able to perform or contribute to a Supplemental Environmental Project ("SEP"), which is a project that benefits the environment, to offset a portion of your penalty. If you are interested in performing an SEP, you must agree to the penalty amount and submit an SEP proposal within 15 days of receipt of this proposed order. If you are a local government you may have additional SEP options available to assist you with coming into compliance or remediating the harm caused by the violations. A local government is defined as a school district, county, municipality, junior college district, river authority, water district or other special district or other political subdivision created under the constitution or a statute of this state. For additional information about the types of SEPs available and eligibility criteria, please go to the TCEQ's web site link at https://www.tceq.texas.gov/compliance/enforcement/sep or contact the Enforcement Coordinator listed below. Please note that any agreements we reach are subject to final approval in accordance with 30 TEX. ADMIN. CODE § 70.10(a). The Honorable Jeffrey Darby Page 3 If we cannot reach a settlement of this enforcement action or you do not wish to participate in this expedited process, we will proceed with enforcement under the Commission's Enforcement Rules, 30 TEX. ADMIN. CODE ch. 70. Specifically, if the signed order and penalty are not mailed and postmarked within 30 days from the date of this letter, your case will be forwarded to the Litigation Division and this settlement offer will no longer be available. The enforcement process described in 30 TEX. ADMIN. CODE ch. 70 requires the staff to prepare and issue an Executive Director's Preliminary Report and Petition to the Commission. If you would like to obtain a copy of 30 TEX. ADMIN. CODE ch. 70, or any other TCEQ rules, the rules themselves and the agency brochure entitled Obtaining TCEQ Rules (GI-032) are located on our agency website at https://www.tceq.texas.gov for your reference. If you would like a hard copy of this brochure mailed to you, you may call and request one from the Central Office Publications Ordering Team at (512) 239-0028. For any questions or comments about this matter or to arrange a meeting, please contact Ryan Fukawa of my staff at (512) 239-4678 or at ryan.fukawa@tceq.texas.gov. Sincerely, Steven Hall, Acting Manager Enforcement Division Texas Commission on Environmental Quality SH/rf Enclosures: Proposed Agreed Order, Penalty Calculation Worksheet, Site Compliance History TEXAS COMMISSION ON ENVIRONMENTAL QUALITY IN THE MATTER OF AN ENFORCEMENT ACTION CONCERNING CITY OF NEDERLAND RN103098778 § § § § § BEFORE THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AGREED ORDER DOCKET NO. 2026-0080-PWS-E On , the Texas Commission on Environmental Quality ("the Commission" or "TCEQ") considered this agreement of the parties, resolving an enforcement action regarding the City of Nederland (the "Respondent") under the authority of TEX. HEALTH & SAFETY CODE ch. 341. The Executive Director of the TCEQ, through the Enforcement Division, and the Respondent presented this Order to the Commission. The Respondent understands that they have certain procedural rights at certain points in the enforcement process, including the right to formal notice of violations, notice of an evidentiary hearing, the right to an evidentiary hearing, and a right to appeal. By entering into this Order, the Respondent agrees to waive all notice and procedural rights. It is further understood and agreed that this Order represents the complete and fully-integrated agreement of the parties. The provisions of this Order are deemed severable and, if a court of competent jurisdiction or other appropriate authority deems any provision of this Order unenforceable, the remaining provisions shall be valid and enforceable. The duties and responsibilities imposed by this Order are binding upon the Respondent. The Commission makes the following Findings of Fact and Conclusions of Law: I. FINDINGS OF FACT 1. The Respondent owns and operates a public water supply located off Highway 347, near the intersection of Canal Street and 17th Street in Nederland, Jefferson County, Texas (the "Facility"). The Facility provides water for human consumption, has approximately 9,123 service connections, and serves at least 25 people per day for at least 60 days per year. As such, the Facility is a public water system as defined in 30 TEX. ADMIN. CODE §290.38(73). 2. During a record review for the Facility conducted on December 15, 2025 through January 9, 2026, an investigator documented that: a. The locational running annual average concentrations of total trihalomethanes ("TTHM") for Stage 2 Disinfection Byproducts ("DBP2") at Site 4 were 0.085 milligrams per liter ("mg/L") for the second quarter of 2025, 0.082 for the third quarter of 2025, and 0.081 mg/L for the fourth quarter of 2025; and b. The locational running annual average concentration of haloacetic acids ("HAA5") for DBP2 at Site 2 were 0.095 mg/L for the second quarter of 2025, 0.091 mg/L for the third quarter of 2025, and 0.089 mg/L for the fourth quarter of 2025, at Site 3 were 0.070 mg/L for the second quarter of 2025, 0.071 mg/L for the third City of Nederland DOCKET NO. 2026-0080-PWS-E Page 2 quarter of 2025, and 0.069 mg/L for the fourth quarter of 2025, and at Site 4 were 0.066 mg/L for the second quarter of 2025, 0.066 mg/L for the third quarter of 2025, and 0.065 mg/L for the fourth quarter of 2025. II. CONCLUSIONS OF LAW 1. As evidenced by Finding of Fact No. 1, the Respondent is subject to the jurisdiction of the TCEQ pursuant to TEX. HEALTH & SAFETY CODE ch. 341 and the rules of the TCEQ. 2. As evidenced by Finding of Fact No. 2.a, the Respondent failed to comply with the maximum contaminant level ("MCL") of 0.080 mg/L for TTHM based on the locational running annual average, in violation of 30 TEX. ADMIN. CODE § 290.115(f)(1) and TEX. HEALTH & SAFETY CODE § 341.0315(c). 3. As evidenced by Finding of Fact No. 2. b, the Respondent failed to comply with the MCL of 0.060 mg/L for HAA5 based on the locational running annual average, in violation of 30 TEX. ADMIN. CODE § 290.115(f)(1) and TEX. HEALTH & SAFETY CODE § 341.0315(c). 4. Pursuant to TEX. HEALTH & SAFETY CODE §341.049(a), the TCEQ has the authority to assess an administrative penalty against the Respondent for violations of state statutes within the TCEQ's jurisdiction, for violations of rules adopted under such statutes, or for violations of orders or permits issued under such statutes. 5. An administrative penalty in the amount of $20,125 is justified by the facts recited in this Order, and considered in light of the factors set forth in TEX. HEALTH & SAFETY CODE §341.049(b). The Respondent paid the $20,125 penalty. III. ORDERING PROVISIONS NOW, THEREFORE, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY ORDERS that: 1. The Respondent is assessed as a penalty as set forth in Conclusion of Law No. 5 for violations of state statutes and rules of the TCEQ. The payment of this penalty and the Respondent's compliance with all the requirements set forth in this Order resolve only the matters set forth by this Order in this action. The Commission shall not be constrained in any manner from requiring corrective actions or penalties for violations that are not raised here. Penalty payments shall be made payable to "TCEQ" and shall be sent with the notation "Re: City of Nederland, Docket No. 2026-0080-PWS-E" to: Financial Administration Division, Revenue Operations Section Attention: Cashier's Office, MC 214 Texas Commission on Environmental Quality P.O. Box 13088 Austin, Texas 78711-3088 2. The Respondent shall undertake the following technical requirements: a. Within 365 days after the effective date of this Order: City of Nederland DOCKET NO. 2026-0080-PWS-E Page 3 i. Return to compliance with the MCL for TTHM, based on the locational running annual average, in accordance with 30 TEX. ADMIN. CODE §290.115; and ii. Return to compliance with the MCL for HAA5, based on the locational running annual average, in accordance with 30 TEX. ADMIN. CODE §290.115. b. Within 380 days after the effective date of this Order, submit written certification, and include detailed supporting documentation including photographs, receipts, and/or other records to demonstrate compliance with Ordering Provision No. 2.a. The certification shall be signed by the Respondent and shall include the following certification language: "I certify under penalty of law that I have personally examined and am familiar with the information submitted and all attached documents, and that based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the submitted information is true, accurate and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fines and imprisonment for knowing violations." The certification shall be submitted to: Enforcement Division, MC 149A Texas Commission on Environmental Quality P.O. Box 13087 Austin, Texas 78711-3087 with a copy to: Drinking Water Special Functions Section Manager Water Supply Division, MC 155 Texas Commission on Environmental Quality P.O. Box 13087 Austin, Texas 78711-3087 3. All relief not expressly granted in this Order is denied. 4. The duties and provisions imposed by this Order shall apply to and be binding upon the Respondent. The Respondent is ordered to give notice of this Order to personnel who maintain day-to-day control over the Facility operations referenced in this Order. 5. The Executive Director may grant an extension of any deadline in this Order or in any plan, report, or other document submitted pursuant to this Order, upon a written and substantiated showing of good cause. All requests for extensions by the Respondent shall be made in writing to the Executive Director. Extensions are not effective until the Respondent receives written approval from the Executive Director. The determination City of Nederland DOCKET NO. 2026-0080-PWS-E Page 4 of what constitutes good cause rests solely with the Executive Director. Extension requests shall be sent to the Enforcement Division at the address listed above. 6. The Executive Director may, without further notice or hearing, refer this matter to the Office of the Attorney General of the State of Texas ("OAG") for further enforcement proceedings if the Executive Director determines that the Respondent has not complied with one or more of the terms in this Order. 7. This Order shall terminate five years from its effective date or upon compliance with all the terms and conditions set forth in this Order, whichever is later. 8. This Order, issued by the Commission, shall not be admissible against the Respondent in a civil proceeding, unless the proceeding is brought by the OAG to: (1) enforce the terms of this Order; or (2) pursue violations of a statute within the Commission's jurisdiction, or of a rule adopted or an order or permit issued by the Commission under such a statute. 9. This Order may be executed in separate and multiple counterparts, which together shall constitute a single instrument. Any page of this Order may be copied, scanned, digitized, converted to electronic portable document format ("pdf"), or otherwise reproduced and may be transmitted by digital or electronic transmission, including but not limited to facsimile transmission and electronic mail. Any signature affixed to this Order shall constitute an original signature for all purposes and may be used, filed, substituted, or issued for any purpose for which an original signature could be used. The term "signature" shall include manual signatures and true and accurate reproductions of manual signatures created, executed, endorsed, adopted, or authorized by the person or persons to whom the signatures are attributable. Signatures may be copied or reproduced digitally, electronically, by photocopying, engraving, imprinting, lithographing, electronic mail, facsimile transmission, stamping, or any other means or process which the Executive Director deems acceptable. In this paragraph exclusively, the terms: electronic transmission, owner, person, writing, and written, shall have the meanings assigned to them under TEX. BUS. ORG. CODE § 1.002. 10. The effective date of this Order is the date it is signed by the Commission. A copy of this fully executed Order shall be provided to each of the parties. City of Nederland DOCKET NO. 2026-0080-PWS-E Page 5 Instructions: Send the original, signed Order with penalty payment to the Financial Administration Division, Revenue Operations Section at the address in Ordering Provision 1 of this Order. SIGNATURE PAGE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY _________________________________ __________________________ For the Commission Date _________________________________ __________________________ For the Executive Director Date I, the undersigned, have read and understand the attached Order. I am authorized to agree to the attached Order, and I do agree to the terms and conditions specified therein. I further acknowledge that the TCEQ, in accepting payment for the penalty amount, is materially relying on such representation. I also understand that failure to comply with the Ordering Provisions, if any, in this Order and/or failure to timely pay the penalty amount, may result in: • A negative impact on compliance history; • Greater scrutiny of any permit applications submitted; • Referral of this case to the OAG for contempt, injunctive relief, additional penalties, and/or attorney fees, or to a collection agency; • Increased penalties in any future enforcement actions; • Automatic referral to the OAG of any future enforcement actions; and • TCEQ seeking other relief as authorized by law. In addition, any falsification of any compliance documents may result in criminal prosecution. _________________________________ __________________________ Signature Date _________________________________ __________________________ Name (Printed or typed) Title Authorized Representative of City of Nederland If mailing address has changed, please check this box and provide the new address below: DATES Assigned 12-Jan-2026PCW15-Jan-2026 Screening 15-Jan-2026 EPA Due 31-Mar-2026 $50 Maximum $5,000 TOTAL BASE PENALTY (Sum of violation base penalties) 15.0%Adjustment Notes Culpability No 0.0%Enhancement Notes 0.0%Enhancement* $728$5,000 SUM OF SUBTOTALS 1-7 0.0%Adjustment Notes 0.0%Reduction Adjustment Notes Penalty Calculation Worksheet (PCW) Admin. Penalty $ Limit Minimum Multi-MediaMedia Program(s) Docket No.Enf./Case ID No. Facility/Site Region Reg. Ent. Ref. No. 2026-0080-PWS-E 2 CASE INFORMATION Enforcement Team 5 City of NederlandRN103098778 ADJUSTMENTS (+/-) TO SUBTOTAL 1 Ryan Fukawa Findings Subtotals 2-7 are obtained by multiplying the Total Base Penalty (Subtotal 1) by the indicated percentage. Subtotal 1 $17,500 Economic Benefit Compliance History Subtotals 2, 3, & 7 Subtotal 4 $0 $2,625 The Respondent does not meet the culpability criteria. Enhancement for three NOVs with the same/similar violations. $0 $20,125Final Subtotal OTHER FACTORS AS JUSTICE MAY REQUIRE $20,125 Reduces or enhances the Final Subtotal by the indicated percentage. Final Penalty Amount $20,125 $0 $20,125 Reduces the Final Assessed Penalty by the indicated percentage. PAYABLE PENALTY Final Assessed PenaltySTATUTORY LIMIT ADJUSTMENT No deferral is recommended for Findings Orders. DEFERRAL Estimated Cost of ComplianceTotal EB Amounts Policy Revision 5 (January 28, 2021)PCW Revision February 11, 2021 10-Beaumont $0 $0 Order Type Public Water Supply Enf. CoordinatorEC's Team *Capped at the Total EB $ Amount Penalty Calculation Section Major RespondentRESPONDENT/FACILITY INFORMATION YesGovernment/Non-Profit Major/Minor Source 68939 No. of Violations Subtotal 6 Subtotal 5Good Faith Effort to Comply Total Adjustments PCW Component Number of...Number Adjust. 3 15% 0 0% 0 0% 0 0% 0 0% 0 0% Convictions 0 0% Emissions 0 0% 0 0% 0 0% No 0% No 0% No 0% No 0% 15% 0% 0% Compliance History Notes 15% 15% Compliance History Worksheet Participation in a voluntary pollution reduction program NOVs Orders >> Compliance History Site Enhancement (Subtotal 2) Any adjudicated final enforcement orders,agreed final enforcement orders without a denial of liability,or default orders of this state or the federal government, or any final prohibitory emergency orders issued by the commission Any non-adjudicated final court judgments or consent decrees containing a denial of liability of this state or the federal government (number of judgments orconsent decrees meeting criteria)Judgments and Consent Decrees Chronic excessive emissions events (number of events) Letters notifying the executive director of an intended audit conducted under the Texas Environmental,Health,and Safety Audit Privilege Act,74th Legislature, 1995 (number of audits for which notices were submitted) Disclosures of violations under the Texas Environmental,Health,and Safety Audit Privilege Act,74th Legislature,1995 (number of audits for which violations weredisclosed) Any criminal convictions of this state or the federal government (number of counts) Audits Screening Date Respondent MediaEnf. Coordinator Public Water Supply Ryan Fukawa Case ID No.Reg. Ent. Reference No.68939 RN103098778 PCW Revision February 11, 2021 Docket No.15-Jan-2026 2026-0080-PWS-E Policy Revision 5 (January 28, 2021)City of Nederland Final Adjustment Percentage *capped at 100% Adjustment Percentage (Subtotal 7) Adjustment Percentage (Subtotal 3) Adjustment Percentage (Subtotal 2) N/A Enhancement for three NOVs with the same/similar violations. Satisfactory Performer >> Repeat Violator (Subtotal 3) >> Compliance History Person Classification (Subtotal 7) >> Compliance History Summary Total Compliance History Adjustment Percentage (Subtotals 2, 3, & 7) >> Final Compliance History Adjustment Other Written notices of violation ("NOVs")with same or similar violations as those in the current enforcement action (number of NOVs meeting criteria) Any adjudicated final court judgments and default judgments,or non-adjudicated final court judgments or consent decrees without a denial of liability,of this stateor the federal government Early compliance with,or offer of a product that meets future state or federal government environmental requirements Environmental management systems in place for one year or more Voluntary on-site compliance assessments conducted by the executive director under a special assistance program Other written NOVs Any agreed final enforcement orders containing a denial of liability (number of orders meeting criteria) PCW 1 HarmReleaseMajorModerate MinorORActualxPotential Percent 50.0% Falsification Major Moderate Minor Percent 0.0% Matrix Notes Violation Events 1 274 Number of violation days daily weekly monthly quarterly semiannual annual x single event Good Faith Efforts to Comply 0.0%Reduction Extraordinary Ordinary N/A x Notes >> Environmental, Property and Human Health Matrix $2,500 $2,500 Number of Violation Events NOE/NOV to EDPRP/Settlement Offer $0 Violation Description Rule Cite(s) Screening DateRespondentCase ID No. Reg. Ent. Reference No. 68939 Violation Number MediaEnf. Coordinator Public Water Supply Ryan Fukawa RN103098778 Failed to comply with the maximum contaminant level ("MCL") of 0.080 milligrams per liter ("mg/L") for total trihalomethanes ("TTHM"), based on the locational running annual average. Specifically, the locational running annual average concentrations of TTHM for Stage 2 Disinfectant Byproducts ("DBP2") at Site 4 were 0.085 mg/L for the second quarter of 2025, 0.082 for the third quarter of 2025, and 0.081 mg/L for the fourth quarter of 2025. 30 Tex. Admin. Code § 290.115(f)(1) and Tex. Health & Safety Code § 341.0315(c) Docket No.2026-0080-PWS-E PCW Revision February 11, 2021 15-Jan-2026 Policy Revision 5 (January 28, 2021)City of Nederland $5,000Base Penalty Exceeding the MCL for TTHM caused persons served by the Facility to be exposed to a significant amount of contaminants which did not exceed levels protective of human health. >>Programmatic Matrix This violation Final Assessed Penalty (adjusted for limits)$2,875 Adjustment One annual event is recommended. Statutory Limit Test $2,875Violation Final Penalty TotalEstimated EB Amount $728 Economic Benefit (EB) for this violation $2,500 Violation Base Penalty Violation Subtotal $2,500 The Respondent does not meet the good faith criteria for this violation. Before NOE/NOV RespondentCase ID No.Reg. Ent. Reference No.MediaViolation No. 5.0 15 Item Cost Date Required Final Date Yrs Interest Saved Costs Saved EB Amount Item Description Delayed Costs Equipment 0.00 $0 $0 $0Buildings 0.00 $0 $0 $0 Other (as needed)$5,000 30-Jun-2025 29-Jul-2027 2.08 $35 $693 $728 Engineering/Construction 0.00 $0 $0 $0 Land 0.00 $0 n/a $0 Record Keeping System 0.00 $0 n/a $0 Training/Sampling 0.00 $0 n/a $0Remediation/Disposal 0.00 $0 n/a $0 Permit Costs 0.00 $0 n/a $0 Other (as needed)0.00 $0 n/a $0 Notes for DELAYED costs Avoided Costs Disposal 0.00 $0 $0 $0 Personnel 0.00 $0 $0 $0 Inspection/Reporting/Sampling 0.00 $0 $0 $0 Supplies/Equipment 0.00 $0 $0 $0Financial Assurance 0.00 $0 $0 $0 ONE-TIME avoided costs 0.00 $0 $0 $0 Other (as needed)0.00 $0 $0 $0 Notes for AVOIDED costs Approx. Cost of Compliance TOTAL$5,000 $728 The other (as needed) cost includes the estimated cost to investigate, identify, and implement the necessary corrective actions to return to compliance with the MCL for TTHM and Haloacetic Acids ("HAA5"), calculated from the last day of the first quarter of noncompliance to the estimated date of compliance. ANNUALIZE avoided costs before entering item (except for one-time avoided costs) Economic Benefit Worksheet City of Nederland 68939 RN103098778 1 Public Water Supply Years of DepreciationPercent Interest PCW 2 HarmReleaseMajorModerate MinorORActualx Potential Percent 50.0% Falsification Major Moderate Minor Percent 0.0% Matrix Notes Violation Events 3 274 Number of violation days daily weekly monthly quarterly semiannual annual x single event Good Faith Efforts to Comply 0.0%Reduction Extraordinary Ordinary N/A x Notes This violation Final Assessed Penalty (adjusted for limits)$8,625 Violation Base Penalty $8,625 Three annual events are recommended (one per Site). Statutory Limit Test NOE/NOV to EDPRP/Settlement Offer Economic Benefit (EB) for this violation Before NOE/NOV Exceeding the MCL for HAA5 caused persons served by the Facility to be exposed to a significant amount of contaminants which did not exceed levels protective of human health. >>Programmatic Matrix $5,000Base Penalty 15-Jan-2026 Docket No.2026-0080-PWS-E PCW Revision February 11, 202168939 City of Nederland Policy Revision 5 (January 28, 2021) Violation Description Rule Cite(s) Failed to comply with the MCL of 0.060 mg/L for HAA5, based on the locational running annual average. Specifically, the locational running annual average concentrations of HAA5 for DBP2 at Site 2 were 0.095 mg/L for the second quarter of 2025, 0.091 mg/L for the third quarter of 2025, and 0.089 mg/L for the fourth quarter of 2025, at Site 3 were 0.070 mg/L for the second quarter of 2025, 0.071 mg/L for the third quarter of 2025, and 0.069 mg/L for the fourth quarter of 2025, and at Site 4 were 0.066 mg/L for the second quarter of 2025, 0.066 mg/L for the third quarter of 2025, and 0.065 mg/L for the fourth quarter of 2025. 30 Tex. Admin. Code § 290.115(f)(1) and Tex. Health & Safety Code § 341.0315(c) RN103098778 Violation Number MediaEnf. Coordinator Screening DateRespondent Case ID No.Reg. Ent. Reference No. Violation Final Penalty TotalEstimated EB Amount $0 $0 Public Water Supply Ryan Fukawa >> Environmental, Property and Human Health Matrix $2,500 Adjustment $2,500 $7,500 The Respondent does not meet the good faith criteria for this violation. Violation Subtotal Number of Violation Events $7,500 RespondentCase ID No.Reg. Ent. Reference No.MediaViolation No. 5.0 15 Item Cost Date Required Final Date Yrs Interest Saved Costs Saved EB Amount Item Description Delayed Costs Equipment 0.00 $0 $0 $0Buildings 0.00 $0 $0 $0 Other (as needed)0.00 $0 $0 $0 Engineering/Construction 0.00 $0 $0 $0 Land 0.00 $0 n/a $0 Record Keeping System 0.00 $0 n/a $0 Training/Sampling 0.00 $0 n/a $0Remediation/Disposal 0.00 $0 n/a $0 Permit Costs 0.00 $0 n/a $0 Other (as needed)0.00 $0 n/a $0 Notes for DELAYED costs Avoided Costs Disposal 0.00 $0 $0 $0 Personnel 0.00 $0 $0 $0 Inspection/Reporting/Sampling 0.00 $0 $0 $0 Supplies/Equipment 0.00 $0 $0 $0Financial Assurance 0.00 $0 $0 $0 ONE-TIME avoided costs 0.00 $0 $0 $0 Other (as needed)0.00 $0 $0 $0 Notes for AVOIDED costs Approx. Cost of Compliance TOTAL Years of DepreciationPercent Interest Economic Benefit Worksheet City of Nederland 68939 RN103098778 2 Public Water Supply $0 $0 The delayed cost to investigate, identify, and implement the necessary corrective actions to return to compliance with the MCL for HAA5 is captured on the Economic Benefit Worksheet for Violation No. 1. ANNUALIZE avoided costs before entering item (except for one-time avoided costs) Page 1 The TCEQ is committed to accessibility. To request a more accessible version of this report, please contact the TCEQ Help Desk at (512) 239-4357. Compliance History Report Compliance History Report for CN600341937, RN103098778, Rating Year 2025 which includes Compliance History (CH) components from September 1, 2020, through August 31, 2025. Customer, Respondent, CN600341937, City of Nederland Classification: SATISFACTORY Rating: 1.77 or Owner/Operator: Regulated Entity: RN103098778, CITY OF NEDERLAND Classification: NOT APPLICABLE Rating: N/A Complexity Points: N/A Repeat Violator: N/A CH Group: 14 - Other Location: OFF HIGHWAY 347, NEAR THE INTERSECTION OF CANAL STREET AND 17TH STREET IN NEDERLAND, JEFFERSON COUNTY, TEXAS TCEQ Region: REGION 10 - BEAUMONT ID Number(s): PUBLIC WATER SYSTEM/SUPPLY REGISTRATION 1230006 Compliance History Period: September 01, 2020 to August 31, 2025 Rating Year: 2025 Rating Date: 09/01/2025 Date Compliance History Report Prepared: March 19, 2026 Agency Decision Requiring Compliance History: Enforcement Component Period Selected: March 19, 2021 to March 19, 2026 TCEQ Staff Member to Contact for Additional Information Regarding This Compliance History. Name: Ryan Fukawa Phone: (512) 239-4678 Site and Owner/Operator History: 1) Has the site been in existence and/or operation for the full five-year compliance period? YES 2) Has there been a (known) change in ownership/operator of the site during the compliance period? NO Components (Multimedia) for the Site Are Listed in Sections A - J A. Final Orders, court judgments, and consent decrees: N/A B. Criminal convictions: N/A C. Chronic excessive emissions events: N/A D. The approval dates of investigations (CCEDS Inv. Track. No.): N/A E. Written notices of violations (NOV) (CCEDS Inv. Track. No.): A notice of violation represents a written allegation of a violation of a specific regulatory requirement from the commission to a regulated entity. A notice of violation is not a final enforcement action, nor proof that a violation has actually occurred. 1 Date: 09/10/2025 (2117325) Self Report? NO Classification: Moderate Citation: 30 TAC Chapter 290, SubChapter F 290.115(f)(1) Description: TTHM/HAA5 LRAA MCL 2Q2025 – During the 2nd quarter of 2025 PWS violated the MCL for trihalomethanes with a LRAA of 0.085 mg/L at 3519 AVE L, Nederland (DBP2-04) and for haloacetic acids with a LRAA of 0.095 mg/L at 2301 AVE H, Nederland (DBP2-02), 0.070 mg/L at 515 Gage AVE, Nederland (DBP2-03), and Page 2 _ 0.066 mg/L at 3519 AVE L, Nederland (DBP2-04). ETT Point Value = 5 2 Date: 09/24/2025 (2117325) Self Report? NO Classification: Moderate Citation: 30 TAC Chapter 290, SubChapter F 290.115(f)(1) Description: TTHM/HAA5 LRAA MCL 3Q2025 – During the 3rd quarter of 2025 PWS violated the MCL for trihalomethanes with a LRAA of 0.082 mg/L at 3519 AVE L, Nederland (DBP2-04) and for haloacetic acids with a LRAA of 0.091 mg/L at 2301 AVE H, Nederland (DBP2-02), 0.071 mg/L at 515 Gage AVE, Nederland (DBP2-03), and 0.066 mg/L at 3519 AVE L, Nederland (DBP2-04). ETT Point Value = 5 3 Date: 12/11/2025 (2117325) Self Report? NO Classification: Moderate Citation: 30 TAC Chapter 290, SubChapter F 290.115(f)(1) Description: TTHM/HAA5 LRAA MCL 4Q2025 – During the 4th quarter of 2025 PWS violated the MCL for trihalomethanes with a LRAA of 0.081 mg/L at 3519 AVE L, Nederland (DBP2-04) and for haloacetic acids with a LRAA of 0.089 mg/L at 2301 AVE H, Nederland (DBP2-02), 0.069 mg/L at 515 Gage AVE, Nederland (DBP2-03), and 0.065 mg/L at 3519 AVE L, Nederland (DBP2-04). ETT Point Value = 5 F.Environmental audits: N/A G.Type of environmental management systems (EMSs): N/A H.Voluntary on-site compliance assessment dates: N/A I.Participation in a voluntary pollution reduction program: N/A J.Early compliance: N/A Sites Outside of Texas: N/A 3/31/26, 10:14AM Supplemental Environmental Projects (SEPs) -Texas Commission on Environmental Quality -www.tceq.texas.gov Supplemental Environmental Projects (SEPs) SEPs are environmentally beneficial projects that a respondent agrees to undertake in settlement of an enforcement action. Dollars directed to TCEQ- approved environmental projects may be used to offset assessed penalties in enforcement actions. TCEQ Seeks Stakeholder Input on Draft ~ SEP Guidance (Publication GI-352) Document Revisions. TCEQ will conduct a hybrid stakeholder meeting on April 29, 2026, to solicit informal comments on the SEP Guidance Document Revisions. For instructions on attending the hybrid meeting or providing written comments please see the ~ stakeholder meeting notice. The draft guidance document revisions include general updates to align with current agency practices, streamline processes, and update program verbiage. The revisions also include eliminating the requirement for contributions to pre-approved SEPs be limited to pre-approved SEPs of the same media type as the violation media in the enforcement order. In addition, the maximum offset limit for indirect benefit SEPs is increasing from 33% to 50%. I have an enforcement action. I am interested in becoming What are my SEP options? a 3rd Party SEP Administrator. RESPONDENT 3RD PARTY A respondent in an enforcement action may negotiate an agreement to perform a SEP to offset a portion of the assessed administrative penalty. All proposed SEPs should have a direct and measurable environmental benefit. • Contribution SEP whereby the Respondent contributes to a pre-approved SEP performed by a Third-Party; • Custom SEP whereby the Respondent performs the project using their own resources; • Compliance SEP whereby an eligible Local Government may correct the violations alleged in the enforcement action or remediate environmental harm caused by the alleged violations. See some~ examples of SEPs Review the ~ SEP Statute Read our ~ SEP Guidance (publication GI-352) https://www.tceq.texas.gov/compliance/enforcement/sep/sep-main 1/2 3/31/26, 10:14AM Supplemental Environmental Projects (SEPs) -Texas Commission on Environmental Quality -www.tceq.texas.gov Supplemental Environmental Projects (SEPs) Home SEP Options for Respondents Becoming a 3rd Party SEP Administrator Contact the SEP Team ~ How are we doing? Take our customer satisfaction survey QueSti0 ns or Comments: SepReports@tceq.texas.gov https://www.tceq.texas.gov/compliance/enforcementlsep/sep-main 2/2 BAKER TILLY ADVISORY GROUP LP ID: Invoice# BT3517545 Invoice# BT3454450 Invoice# BT3381399 Invoice# BT3395579 Invoice# BT3310560 Invoice# BT3254908 Gross: $ 6,736.00 $ 9,612.00 $ 25,036.00 $ 23,752.00 $ 6,485.50 $ 10,000.00 $ 81,621.50 City Coucil approved: $ 78,000.00 $ 3,621.50 Jeffrey Darby City of Nederland PO Box 967 Nederland, TX 77627-0967 Invoice Date: Invoice Number: Client Number: Project Name: Project Number: INVOICE Fees February 28, 2026 BT3517545 351702 City of Nederland Forensic Audit 2645820 <t bakertilly AMOUNT Current Professional Services and Expenses (detail follows). The retainer is being held and will be 6,736.00 applied to the final invoice. Each invoice issued is due upon receipt. Please refer to our invoice number when remitting payment. Fees Total: 6,736.00 Expenses Total: 0.00 -Invoice Total: 6,736.00 For questions, please contact Jennifer Green at +18583206777. Balance is payable upon receipt or previously agreed upon terms. Please wire payment to: Or send payment to: PAYMENT REFERENCE Baker Tilly Advisory Group, LP Baker Tilly Advisory Group, LP US Bank, Milwaukee, WI BOX 78975 Client Number: 351702 Routing No: 075000022 Milwaukee, WI 53278-8975 Invoice Number. BT3517545 Account No: 312220280 Reference Invoice#: BT3517545 Please quote when settling fees . USO ....... ,...,.--,,o .. _..,. .... _ .. ni,~.LLP,-.-a.., ... T;ii,., ___ ..,.,_ ..... ,,.-•·-· ...... --.. .,, ... .,...__ .. _ .. ,.."'"'_L ... U.. __ ..,,.1, .. .,.,. ____ ~"(lo,gal...itlff ... k .. TIMrUS,U.,it•k•MlodCl'Afl""'Uuit,.....IM&1 .. 11t-.urvkftu,1tt~1 .... rT10,A4..i.o,y~ IJ'-••ubtldlaly•fllilita,r1 ... ,111tftdc--~IOtMifcll111SMllaNIIOl.~••C,Afi11Q. Jeffrey Darby City of Nederland PO Box 967 Nederland, TX 77627 Invoice Date: Invoice Number: Client Number: Project Name: Project Number: INVOICE Fees March 11 , 2026 BT3527143 351702 City of Nederland Forensic Audit 2645820 <I bakertilly AMOUNT Current Professional Services and Expenses (detail follows). Each invoice issued is due upon receipt. 9,572.00 Please refer to our invoice number when remitting payment. (9,572.00) Retainer applied: Remaining retainer: $428.00 (applied to invoice BT3517545) Fees Total : 0.00 Expenses Total: 0.00 Invoice Total: 0.00 For questions, please contact Jennifer Green at +18583206777. Balance is payable upon receipt or previously agreed upon terms. Please wire payment to: Or send payment to: PAYMENT REFERENCE Baker Tilly Advisory Group, LP Baker Tilly Advisory Group, LP US Bank, Milwaukee, WI BOX78975 Client Number: 351702 Routing No; 075000022 Milwaukee, WI. 53.278-8975 Invoice Number. BT3527143 Account No: 312220280 Reference Invoice#: BT3527143 Please quote when settling fees. USO __ ,..,.......,o....,u> ......... Tlt,U,.,U>,IN ........... ni,.-.. ~•RllwMlirt,.ldlcl-lflill.,._ .. ,..,IM,leMl11 __ ol .. ~•TiOr~.iud.,1M-•,wol..MclllNM,.....nd~lllplwdlet.an.ffllJ'Ul,LU'ltt--(:,.,. __ ,,.., .... ____ "" .. -.-TII.,,.......,~ U'&lld .. 1UNWilfYt,.._,.....W.i.•Mdc~1Wic:Ni.ll'lllrc..,__....,,.MtliclMellC,AllnM. NEDERLAND LIBRARY - ICM PROPOSAL TO REPLACE BLOWER MOTOR & CONTACTOR ON LENNOX KGB240S4BS27 ROOTOP PACKAGE UNIT . TACLA 23943C – Regulated by the Texas Department of Licensing and Regulation PO Box 12157 Austin, TX 78711 1-800-803-9202, 512-463-6599 March 10, 2026 City of Nederland Marion & Ed Hughes Public Library 2712 Nederland Ave. | Nederland, TX | 77627 ATTN: Mrs. MOLLY HALL Subject: REPAIRS TO LENNOX KGB240S4BS2Y / SERIAL; 5620K01859 ROOFTOP PACKAGE UNIT. Dear Mrs. HALL, Industrial Commercial Mechanical is pleased to offer the following proposal to Furnish labor and materials to Furnish REPAIRS TO LENNOX ROOFTOP PACKAGE UNIT – AS LISTED BELOW Item QTY Description 1 1 Furnish and Install QTY OF 1- New, LENNOX BLOWER MOTOR- 5HP -230/60/3 2 1 Furnish and Install QTY OF 1- New, LENNOX BLOWER CONTACTORS -3 POLE/24V 3 1MAN ICM Technicians Labor; needed to replace blower motor, replace blower contactor and restart unit and tested ac unit for proper cooling operations. ITEMS NOT INCLUDED IN PROPOSED WORK ➢ Any Changes or Modifications, other than specified as part of proposal, or proposed scope of work. ➢ Any Changes or Work delays; due to problems beyond our control. ➢ Warranty of any items not furnished and installed by ICM ➢ PLEASE NOTE – THIS PROPOSAL DOES NOT INCLUDE CHARGES FOR INITIAL DIAGNOSTIC SERVICE CALL OUT. ICM PRICE TO PERFORM LISTED REPAIR WORK PARTS $1,906.61 LABOR $ 840.00 TOTAL $2,746.61 – SALES TAX IS NOT INCLUDED. – ALLOW ESTIMATED 1- WEEK FOR SHIPMENT OF PARTS. THIS PROPOSAL IS VALID FOR 30 DAYS - FROM THE DATE OF PROPOSAL Thank you for your request for this proposal. We would appreciate the opportunity to provide these services. Please let me know if you would like to proceed with the proposed service repair, and what purchase order number we will utilize, for our billing for services. As always, we thank you for your business and the opportunity to provide our services. Regards, Thanh Tran Approved by __________________ Date ___________ ICM SALES REPRESENTATIVE OFFICE; 409-842-3737 CELL 409-293-5487 Industrial and Commercial Mechanical TACLA23943C 4445 Westpark Avenue Beaumont, TX 77705 Phone (409) 842-3737 Fax (409) 842-3738 Joni Underwood From: Sent: To: Subject: Attachments: Get Outlook for Android William Spell Wednesday, April 1, 2026 5:17 PM Joni Underwood Fw: City of Nederland doc04616820260401142002.pdf From: Kayleigh <kayleigh@hernandezsupply.com> Sent: Wednesday, April 1, 2026 3:41:36 PM To: William Spell <wspell@ci.nederland.tx.us> Subject: Re : City of Nederland Good afternoon, Please find drawings attached. The price for these drawings is a ballpark of $43,232.40 with install being $1,921.44. Roughly $45,153.84 total on the Equalis contract. With that being said, there were revisions decided today that will change the price. I am sending those in and hopefully will have them back at a decent time tomorrow to put together a formal quote. Please let me know if you have any questions! ~~LM Account Manager Cell: 409-719-1842 Office: 409-724-0135 Office Supplies -Office Furniture -Copiers -Printing Hernandez Office Solutions {~~~~ HERNANDEZ Reliant OFFICE SOLUTIONS Your Office Resource Portner From: William Spell <wspell@ci.nederland.tx.us> Sent: Wednesday, March 25, 2026 11:03 AM To: Kayleigh <kayleigh@hernandezsupply.com> Subject: City of Nederland 90 191'9 191'9 lNOr a.NV X3NNV MH 0NY'llf303N :JO ,UJ:) ···'li7"· 1 \ ·- fl ; _i i --rj -,-. ...._,.-- 191'9 0 w ~ 0 ...I ...I <( 0 ~ I-LL ...I ...I ~ w Q'. E z Q'. ::i LL ~ Cl:'. LL z 0 () 0 Z O <( w 1:: ffi ii: ~ W 0 > Q. 0 Z ul 0 LL ~ ~ ~ Q'. (/) w w ...I ...J t5 U) ~ w O ~ 1- 5 ~ Z I CJ) I -------------------------~~~---'--' NOTE: OS\\ X\x,1' \ t \\<\\'(\ \~ 6325C ~I .,:_;:;:,·:-..:::--r: rf>-<~~1 i ·_ i :12" t_r~. __ .~l.1 'll'_ ~~-q_C 'Ill -~~>----~-! { ~ j U. i 1-1 ·"'----·-. ___ -1,T .. &=~----~·; ,,I 1,-~ U/· / \ I , • l() ' I : I I •• ., " /1 I I , '"-' ~i\ I 0) . 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