April 20, 2026 REGULAR MEETING OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND
5:30 p.m. April 20,2026
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 was led by Councilmember Sonnier and the Pledges of Allegiance were led
by Mayor Darby.
3. PRESENTATION
DeShaun Armstrong with Entergy gave a comprehensive update on the streetlight
conversion project. The conversion project has been divided into 5 work orders of 150
lights each. The first work order was sent to design on February 4, 2026, and all are now
set for construction. Mr. Armstrong confirmed the following start dates: the first 3 work
orders will start on April 24, 2026; the 4th work order will start on May 11, 2026; and the
last one will start on June 17,2026. Mr.Armstrong also provided information on how to
report streetlight outages and affordability and assistance programs offered by Entergy.
4. CITIZEN COMMENTS
Laura Smith, 2108 Avenue C, addressed the council regarding her support for city
leadership and concerns about infrastructure issues.
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 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.
Minutes continued, April 20, 2026
a. Minutes—April 6, 2026 regular meeting
b. March 2026 Departmental reports
c. Tax Assessor Collection Report—March 2026
6. REGULAR AGENDA
e. Employee Group Benefits:
Item 6.e,Employee Group Benefits, was moved to the beginning of the regular agenda.
The regular meeting was recessed at 5:45 p.m. by Mayor Darby for the purpose of
conducting a City of Nederland Benefits Trust meeting to award bids for employee group
benefits.
The regular meeting was reconvened at 6:12 p.m. by Mayor Darby.
A motion was made by Councilmember Sonnier and seconded by Mayor Pro Tern Ortiz to
authorize the transfer of funds from the City of Nederland to the City of Nederland
Employee Benefits Trust to pay for employee-related benefits. MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier, and Ortiz.
NOES: None.
UNFINISHED BUSINESS
a. City Manager Manny De La Rosa provided updates on several public works and
engineering projects. Nederland Water Plant Clarifier Number 1: Work is ongoing to
address operational items prior to final completion, including replacing a valve in the
sludge pit that was contributing to leakage during filling and correcting a minor sag in the
aerial bridge. Next steps include substantial completion inspections,punch list
development, and receipt of final contractor documentation.
Nederland Sewer Line Rehabilitation(Western 20%): Phase 1 video inspections continue
to show minimal blockages. Review of Phase 1 is underway with design work progressing
and hydraulic analysis being coordinated. Phase 2 inspections are ongoing with
approximately half of the system reviewed. Some lines have been inaccessible or blocked
by debris, and coordination is underway to clear access and continue evaluation.
Preliminary observations are helping guide future rehabilitation efforts and identify areas
needing improvement.
Nederland Wastewater Lift Station Rehabilitation: Survey updates have been received and
design work has begun for both the Canal Avenue and Nederland Avenue lift stations. The
project is progressing through design phases with construction anticipated to begin in late
2026 and estimated completion in 2027.
Nederland Wastewater Treatment Plant Facility Assessment: The project team continues
evaluating the overall condition of the wastewater treatment plant and developing
2
Minutes continued, April 20, 2026
preliminary rehabilitation recommendations. An electrical site review is scheduled with a
meeting to review initial findings expected in mid to late April.
Nederland Wastewater Treatment Plant Centrifuge Replacement: Preliminary planning and
coordination are underway with consultants and equipment vendors to confirm system
requirements. A preliminary site plan is being developed with potential equipment
procurement anticipated this summer.
The City Manager noted that these progress reports would be made available on the city
website once IT completes that work. The City Manager also mentioned that he recently
released some contracts on drainage improvements and would be presenting additional
contracts at the next meeting,with approximately a dozen contracts total in progress.
Heritage Estates Water System Issues
Michael Mitchell, Water Treatment Plant Supervisor, explained the original plan was to
loop the system by connecting Avenue D to Carriage Lane on the north side,Avenue H to
Carriage Lane on the south side, and connecting 1 1/2 Street to 2nd Street through Avenue E
behind Heritage Estates. However, Mr. Mitchell proposed another solution which involved
installing automatic flush valves. He explained that the city currently uses temporary
automatic flushers attached to hydrants around town,but for Heritage Estates they would
install a more permanent solution by piping the discharge into ditches.
Mr. Mitchell proposed installing permanent flush stations at four locations: the end of
Avenue H, at each end of Carriage Lane, and at Avenue D. These would be 2-inch taps
into the water mains with permanent mounted automatic flushers controlled by Bluetooth-
enabled timers.
Mr. Mitchell provided an update on THM(trihalomethane) and HAAS (haloacetic acids)
violation letters. He reported that the city received its last letter for quarter 1 of 2026,
which would be sent to customers within the next few weeks.
NEW BUSINESS
b. A motion was made by Councilmember Jones and seconded by Mayor Pro Tern Ortiz to
approve Ordinance No. 2026-05, setting the calendar for regular City Council meetings on
the second and fourth Monday of each month at 5:30PM.
MOTION CARRIED.
AYES: Mayor Darby,Councilmembers Duplant,Jones,Sonnier,and Ortiz.
NOES: None.
c. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to
approve Ordinance No. 2026-06, suspending the rates proposed by Texas Gas Service
Company's Gas Reliability Infrastructure Program Filing. MOTION CARRIED.
AYES: Mayor Darby, Councilmembers Duplant,Jones, Sonnier,and Ortiz.
NOES: None.
3
Minutes continued, April 20, 2026
d. No action was taken on the proposed Ordinance No.2026-07, authorizing participation with
other Entergy Service Area Cities in matters concerning Entergy Texas, Inc. at the Public
Utility Commission of Texas in 2026. This ordinance will be placed on a future agenda if
necessary.
e. Item 6.e was moved to the beginning of the regular agenda.
7. EXECUTIVE SESSION
The regular meeting was recessed at 6:40 p.m. by Mayor Pro Tern Ortiz for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Personnel
Matters-Tex. Gov't Code, Section 551.074(a)(1)(2) (to deliberate the duties of a public
officer and/or to hear a complaint or charge against an officer of a governmental body
(Mayor). Sponsor: Councilman Bret Duplant); Consultation with Attorney-Tex. Gov't
Code, Section 551.071, (legal issues in connection with or ancillary to Personnel Matters as
stated above).
8. RECONVENE
The regular meeting was reconvened at 7:40 p.m. by Mayor Pro Tem Ortiz and no action
was necessary.
9. ADJOURN
There being no further business Mayor Darby adjourned the meeting at 7:40 p.m.
Je`'rey P. ►arby, Mayor
City of Nederland, Texas
ATTEST:
�\\J`��.aaaaa�a1i�aiu1II/,
Jon nderwood City Clerk of NED `
<C �''%
../
City of Nederland, Texas 4 •<y-�';
> 1° / .2
7-1
.. }�
• ,.d •'_;
4
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 II ✓
Randy Sonnier Council Member—Ward III V
Jeff Ortiz Council Member—Ward IV ✓
Manny De La Rosa City Manager
Joni Underwood City Clerk
Richard Hughes City Attorney
Heather Stucker Director of Finance ✓
Rod Carroll Police Chief �J
Terry Morton Fire Chief r/
Fred Bell Director of Public Works
Jacob Pitts Interim Building Official ✓
Molli Hall Librarian ✓
Stephanie Gaspard Human Resources Director ✓
Toby Latiolais Parks Director ✓
mi�0 (h�'+c�,ea,Q ✓
_ Dannie. basis Pu 0% Df•
J:' yi.. garb ayor
WWG wd 41
Joni 1derwood,City Clerk
Date
CITIZEN COMMENTS SIGN-IN SHEET
NAME ADDRESS
LaUrc , S ml-;-k A\ithu‘e �-
ORDINANCE NO.2026-05
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND , TEXAS SETTING DATES
FOR REGULAR COUNCIL MEETINGS TO BE HELD
IN THE MONTH OF MAY 2026, AND IN ALL
MONTHS THEREAFTER IN EACH AND EVERY
YEAR
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND,TEXAS THAT:
Section 1. Pursuant to the provisions of the Home Rule Charter of the City of
Nederland, Texas, Section 3.10, the dates for the regular meetings of the City Council
for the City of Nederland, Texas, are as follows: Beginning in the month of May 2026,
and in all months in each and every year thereafter, the regular meetings of the City
Council of the City of Nederland,Texas, shall be held on the second and fourth Monday.
Each regular meeting shall begin at 5:30 p.m.
Section 2: Notwithstanding the provisions of Section 1 above, the City Council
may change or reschedule any regular meeting date(s) by announcing the changed or
rescheduled date and time at a regular City Council meeting held prior to the changed
or rescheduled date; provided, nothing in Section 2 is intended to alter special notice
requirements for certain statutory public hearings or the notice provisions set forth in the
Texas Open Meetings Act,as it now exists or hereafter amended.
Section 3. Any and all ordinances of the City of Nederland, Texas, which
conflict with any provisions of this Ordinance are hereby expressly repealed.
PASSED AND APPROVED by the City Council at a regular meeting this 20th
day of April 2026.
/,//I%/' . 1611/7
1' D.. .y, Mayor
City of Nee erland,Texas
ATTEST:
oft U/u o0
Joni Underwood,City Clerk
City of Nederland,Texas
APPROVED AS TO FORM: •
011111111I11III/////
: \JC NfpF:p°
Richard D. Hug es,City Attorney = -�{_ °•4-
City of Nederland,Texas -.*-3c):44 l f\ i4 o
hr°F 7Ei si;'
-moo`
ORDINANCE NO.2026-06
ORDINANCE OF THE CITY OF NEDERLAND; TEXAS,
SUSPENDING THE RATES PROPOSED BY TEXAS GAS SERVICE
COMPANY'S GAS RELIABILITY INFRASTRUCTURE PROGRAM
FILING MADE WITH THE CITY ON OR ABOUT MARCH 10, 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 March 10,2026,Texas Gas Service Company("TGS"or
"Company")filed an Annual Gas Reliability Infrastructure Program("GRIP")adjustment
with the City of Nederland("City")to increase gas rates in its incorporated and environs
service 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 May 9, 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 the Company's GRIP filing is limited to a
ministerial review of the filing for compliance with the statute;and
WHEREAS, the City fords the need to suspend the effective date of TGS's
requested rate increase for 45 days beyond the Company's proposed effective date until
June 23, 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
TGS's future base rate case where all costs included in TGS'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 23,2026.
Section 3. To the extent the.City fords that the rates proposed by TGS's filing
comply with Gas Utility Regulatory Act§ 104.301,then the rates will become effective by
operation of law on June 23,2026.
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 20th day of April,2026.
,
Jeffrey;'.Darby,Mayor
City of Nederland,Texas
ATTEST:
nY Gnu
Joni Uerwood,City Clerk
City of Nederland,Texas
APPROVED AS TO FORM:
Richard D.Hughes,CityAtforne
g Y
City of Nederland,Texas
pF,NEDF %,
fe
:off 0)
,, ,,,,OF
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275•Austin,Texas 78738•512/322-0019
March 30,2026
Via E-Mail
Ms.Sharae Reed Mr.Kenneth R.Williams
City Attorney—City of Beaumont City Manager—City of Beaumont
P.O.Box 3827 P.O.Box 3827
Beaumont,Texas 77704 Beaumont,Texas 77704
Mr.Kevin Carruth Mr.Brandon Monk
City Manager—City of Groves City Attorney—City of Groves
3947 Lincoln Avenue 4875 Parker Drive
Groves,Texas 77619-4604 Beaumont,TX 77705
Mr.Manuel De La Rosa Mr.Richard Hughes
City Manager-City of Nederland City Attorney—City of Nederland
P.O.Box 967 P.O.Box 967
Nederland,TX 77627 Nederland,TX 77627
Mr.Ronald Burton Ms.Roxann Cotroneo
City Manager—City of Port Arthur City Attorney—City of Port Arthur
P.O.Box 1089 P.O.Box 1089
Port Arthur,Texas 77640 Port Arthur,Texas 77641
Mr.Andre'Wimer Mr.Lance Bradley
City Manager-City of Port Neches City Attorney—City of Port Neches
P.O.Box 758 P.O.Box 1148
Port Neches,Texas 77651 Port Neches,Texas 77651
Re: Texas Gas Service Company's 2026 GRIP Adjustment for all Incorporated
and Environs Areas Served by the Company
Dear Cities:
On March 10,2026,Texas Gas Service Company("TGS"or"Company")filed a
Gas Reliability Infrastructure Program("GRIP")adjustment factor with each of your communities,
applicable to all incorporated and environs areas served by the Company. 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
1
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.
TGS has determined that its capital investment increased by$278,096,965 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—SMALL $3.58
RESIDENTIAL—LARGE $3.58
COMMERCIAL—SMALL $13.70
COMMERCIAL—LARGE. $13.70
INDUSTRIAL $197.56
PUBLIC AUTHORITY $25.90
The GRIP Statute provides that the proposed GRIP rate surcharge will become effective
60 days from the date of the Company's filing or May 9,2026,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 May 9,2026,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 23,2026.
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
2
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 May 9,2026.Otherwise,
the Company's requested rates will go into effect on May 9,2026.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
3