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May 11, 2026 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 5:30 p.m. May 11,2026 1. MEETING The meeting was called to order at 5:30 p.m.by Mayor Darby at the Nederland City Office Building, 207 N. 12th Street,Nederland, Texas. See attached for quorum. The following statement was posted: "PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY." 2. INVOCATION AND PLEDGES OF ALLEGIANCE The invocation and Pledges of Allegiance were led by Councilmember Sonnier. 4. Item 4. CONSENT AGENDA was moved to the beginning of the agenda. Mayor Darby announced that citizen comments would be postponed until after certain agenda items due to executive session needing to be moved. 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 Sonnier to approve the Consent Agenda Item"a"as presented. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Jones,Sonnier,and Ortiz. NOES: None. ABSENT: Councilmember Duplant ATTENDING VIA ZOOM: Mayor Pro Tern Ortiz 5. REGULAR AGENDA a. 2026 City Election: i. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to approve Resolution No. 2026-07, canvassing and declaring the results of the general election held on May 2, 2026 for the purpose of electing Nederland Councilmembers for Ward I and Ward III. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Jones,Sonnier,and Ortiz. NOES: None. Minutes continued, May 11, 2026 ATTENDING VIA ZOOM: Mayor Pro Tern Ortiz ii. Mayor Darby announced that Councilmember Bret Duplant, who was not present, would receive a plaque thanking him for his three years of service from 2023 to 2026 as the Councilmember for Ward 1. iii. Councilmembers Curtis Stratton and Randy Sonnier were sworn in by Judge Gordon Friesz. 3. Item 3. CITIZEN COMMENTS was moved on the agenda. CITIZEN COMMENTS (First Session) Dwayne Morell, 1624 Canal,thanked the council for approving health insurance changes at no increased costs to the city employees. Renee O'Connor, 1131 Gary Avenue, thanked the council for the past year's work and progress,particularly noting sidewalk repairs on the 700-800 block of 12th Street. Kenny Lofton, 3100 Eugenia Lane, Commander VFW 4820, discussed the Voice of Democracy Scholarship program,which provides high school students an opportunity to compete for scholarships through patriotic-themed audio essays. Tim Windberg, 912 Circle Drive,provided a historical background on Loyalty Day. 5. REGULAR AGENDA a. 2026 City Election: iv. Mayor Darby noted he had inadvertently skipped agenda item 5.a.iv, the election of Mayor Pro Tern in accordance with the city charter. He explained that two council members had expressed interest in the position. The mayor explained his preference for rotating the position. Mayor Darby nominated Councilmember Sonnier to serve as Mayor Pro Tern. A vote was conducted. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton,Jones,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz 6. EXECUTIVE SESSION The regular meeting was recessed at 5:55 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, including: Pending litigation/arbitration with foinier City Manager, Chris Duque; Legal issues raised in connection with awarding health insurance contract. 7. RECONVENE 2 Minutes continued, May 11, 2026 The regular meeting was reconvened at 7:19 p.m. by Mayor Darby. Mayor Darby announced that there will be no action on the first executive item regarding former City Manager, Chris Duque. A motion was made by Councilmember Jones and seconded by Councilmember Stratton to clarify that the commencement of the new health insurance policy will only cover city employees. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton,Jones and Sonnier. NOES: None. City Attorney Richard Hughes confirmed that Councilmember Ortiz, attending via Zoom,was not able to vote on this item per state law. 3. Item 3. CITIZEN COMMENTS was moved on the agenda. CITIZEN COMMENTS (Second Session) Ray Short, 236 Atlanta Avenue, discussed infrastructure concerns in Ward 1, specifically regarding street conditions on Atlanta, Boston, and Chicago streets. Mr. Short noted that most growth in the city is occurring in older areas with vacant lots and expressed concerns about rising property taxes forcing longtime residents out of their homes. 5. UNFINISHED BUSINESS b. City Manager De La Rosa presented a revised proposal for furniture for administrative staff in the annex trailer. He explained that the original furniture proposal presented to council was for 15-year-plus furniture with a longer shelf life, but the revised proposal featured furniture with a 3-5 year shelf life at approximately one quarter of the original cost. The revised proposal excluded furniture for the city secretary's office and the building permit office, which would be handled as budget line items within departments. Council discussion included acknowledgment that the original furniture would have been lifetime furniture that could be utilized in different locations later,but the public did not want the city to pay for that level of quality. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to approve payment to Hernandez Office Supply regarding furniture for administrative staff in annex trailer. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz NEW BUSINESS 3 Minutes continued, May 11, 2026 c. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to cancel the May 25, 2026 council meeting and reschedule to May 18, 2026. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz d. A motion was made by Councilmember Jones and seconded by Councilmember Stratton to amend Resolution 2026-06, regarding the 2026 Auto Theft Task Force Grant Program, adding the verbiage "to Prevent Catalytic Converter Theft." MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz e. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to approve the Agreement to Participate for continued involvement in the Southeast Texas Alerting Network. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones, Sormier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz f. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to approve Ordinance 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. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz g. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to approve the purchase of a 2026 Ford Explorer Interceptor K-9 Unit with outfitting for the Nederland Police Department. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz h. A motion was made by Councilmember Ortiz and seconded by Councilmember Jones to approve the purchase of four handheld radar units for the Nederland Police Department. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz 4 Minutes continued, May 11, 2026 i. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to approve Ordinance No. 2026-08, amending the fiscal year 2025-2026 budget. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz j. City Manager De La Rosa presented two proposals from Corvus Communications for replacement of the City Hall generator. The first proposal was for$128,951 including a 600-amp automatic transfer switch, and the second proposal was for$119,000 without the new transfer switch. De La Rosa noted the replacement would not be a proprietary system like Generac or Cummins,making it easier to obtain parts and service. Fire Chief Morton explained the existing generator has experienced significant problems during hurricanes Laura and Delta. The department has replaced belts and pulleys multiple times trying to solve the problem. The exhaust system is deteriorating due to rain coming through vents. Chief Morton noted the generator is 14 years old and original to the building. The automatic transfer switch is the only difference between the two quotes. Councilmember Stratton questioned having only one quote and suggested obtaining additional bids before spending such a significant amount. City Manager De La Rosa explained the state purchasing co-op process,noting companies have already met state procurement requirements. He stated that specifications would need to be established and the project bid out separately if the council wanted competitive bids outside the co- op system. Mayor Pro Tem Sonnier made a motion to table the item until the May 18th meeting to research additional pricing. Councilmember Jones seconded the motion. City Attorney Hughes cautioned that the council would not be able to base their vote on informal price shopping and would need to follow the competitive bid process if they wanted to consider other vendors. City Manager De La Rosa explained that the competitive bid process requires two published notices 21 days apart with 30 days to submit,making it approximately a 60-day minimum process. David Wedgeworth, 712 Carriage Lane, stated he had contacted two generator dealers and found the generator quoted at$88,000 available for$57,000 in Houston and $56,200 from another dealer. City Manager De La Rosa responded that government entities typically do not receive the same prices as private individuals and that there is usually a premium when working with government. He also noted the importance of liability coverage. Following further discussion, Mayor Pro Tern Sonnier withdrew his motion to table. City Attorney Hughes clarified that City Manager De La Rosa had indicated if the 5 Minutes continued, May 11, 2026 council wanted to pursue competitive bidding,they should deny the current proposal and direct staff to begin the competitive bid process,which would take at least 60 days. A motion was made by Councilmember Sonnier and seconded by Councilmember Jones to approve payment to Corvus Communications for the city hall generator replacement. MOTION CARRIED. AYES: Mayor Darby,Councilmembers Jones, Sonnier,and Ortiz. NOES: Councilmember Stratton ATTENDING VIA ZOOM: Councilmember Ortiz k. City Manager De La Rosa explained there is one vacancy on the Civil Service Commission. Civil service commissioners are nominated by the city manager with the consent of the city council. Two candidates submitted applications: Kenny Litvik and Jeremy Lloyd. City Manager De La Rosa initially nominated Kenny Litvik based on the order applications were received and Chief Morton's recommendation. Jeremy Lloyd, 1532 North 22nd Street, explained he is a police officer with the City of Port Arthur,where he has worked for 27 years and as a supervisor for 19 years. He stated Port Arthur is a civil service city and he has extensive experience working on the administrative side of civil service. He also noted that he has been an executive board member of their police association for the last 10 years and is familiar with Chapter 143. City Manager De La Rosa withdrew his nomination of Kenny Litvik and nominated Jeremy Lloyd, stating this was based on Lloyd's experience. The council voted on City Manager De La Rosa's nomination of Jeremy Lloyd to the Civil Service Commission. AYES: Mayor Darby,Councilmembers Stratton,Jones,Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz 1. City Manager De La Rosa introduced the request from Lower Neches Valley Authority (LNVA) for abandonment of a portion of Detroit Avenue right-of-way. He explained LNVA representatives had met with city officials previously and that LNVA was proposing to purchase property to build a cul-de-sac as part of the abandonment. De La Rosa noted the city cannot give up public lands without receiving something in return. He stated benefits would be more for the surrounding community than specifically for Nederland, and legal issues would need to be examined if the council was interested in proceeding. De La Rosa noted concerns from public safety regarding three connection points onto FM 366,which is a dangerous roadway with high speeds and numerous accidents. He stated closing one connection would minimize dangerous pullouts onto the high-speed roadway. Victoria Dai,representing Lower Neches Valley Authority,presented the request. She explained LNVA is requesting abandonment of a small portion of Detroit Avenue right- 6 Minutes continued, May 11, 2026 of-way to allow for an open canal crossing associated with improvements along the Atlantic Canal. She stated LNVA's goal is to develop a solution that allows LNVA to move forward with necessary canal improvements while also maintaining public access and providing equal or greater value back to the city. Ms. Dai explained LNVA is proposing a cul-de-sac that maintains turnaround capabilities and accommodates emergency and service vehicles,with roadway and drainage improvements constructed at LNVA's expense. The existing right-of-way requested for abandonment is approximately 0.114717 acres, and LNVA is proposing dedication of approximately the same amount of new right-of-way back to the city. She stated the abandoned right-of-way was appraised at approximately $52,000, and LNVA is proposing comparable right-of-way plus construction of a cul-de-sac estimated at $58,000-$100,000 at no cost to the city. She noted LNVA has an agreement with the property owner to demonstrate commitment to moving forward. Ms. Dai explained this is part of a larger capital improvement project along the Atlantic Canal system. LNVA has completed improvements from 2nd through 12th Street in 2018 and is working to open canal crossings that are bottlenecking the system. She stated the reason for requesting complete closure with an open cut is that Gage Street is immediately upstream, and the opening and closing of culverts in close proximity creates bottlenecking. Councilmember Jones asked whether LNVA had considered upgrading infrastructure under the existing street to obtain necessary flow. Ms. Dai explained the proximity to Gage Street creates bottlenecking issues that cannot be resolved by upgrading the existing culvert alone. Councilmember Stratton expressed concerns about drainage issues for homeowners and suggested LNVA should build a bridge to maintain continuous flow rather than close the road section. Ms. Dai responded to traffic concerns by stating traffic counts from 2022 showed Detroit is minimally used and closing Detroit could improve safety due to the diagonal crossing creating dangerous sight lines at FM 366. Councilmember Ortiz stated he agreed with concerns raised by Councilmembers Jones and Stratton. Councilmember Jones stated he is open to discussion but not as currently presented because there is no value to add for the city. Ray Short, 236 Atlanta Avenue, stated no hydraulic information had been discussed and raised concerns about raising water levels in canals that have existed since the 1930s- 1940s. 7 Minutes continued, May 11, 2026 Councilmember Jones stated if LNVA desires to return with a proposal that provides better value for citizens of the community,he would consider it. The council took no action on this item, effectively declining the request as presented. m. Discussion was held regarding amending the zoning ordinance to increase the minimum lot width standards for R-2 Duplex Residential zoning district. City Manager De La Rosa explained this would authorize staff to begin the process of amending the zoning ordinance to increase minimum lot width standards for the R-2 duplex residential zoning district. He clarified this would only authorize staff to begin the administrative process, including publication notices, legal work, drafting ordinances, and holding public hearings.No changes would occur until the process was complete and the council took action on an amending ordinance. A motion was made by Councilmember Jones and seconded by Councilmember Sonnier to authorize staff to begin the process of amending the zoning ordinance to increase the minimum lot width standards for R-2 Duplex Residential zoning district MOTION CARRIED. AYES: Mayor Darby,Councilmembers Stratton,Jones, Sonnier,and Ortiz. NOES: None. ATTENDING VIA ZOOM: Councilmember Ortiz 7. ADJOURN There being no further business Mayor Darby adjourned the meeting at 9:16 p.m. effrey P •arby, Mayor City of Nederland, Texas ATTEST: 9:04;0144dadthl/ Of NED& JonitUnderwood, City Clerk ,.•' `��� ly City of Nederland, Texas _ r'.(��� "� 2 8 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT Jeffrey P. Darby Mayor I Bret Duplant Council Member—Ward I (outgoing) Curtis Stratton Council Member—Ward I (incoming) Britton Jones Council Member—Ward II Randy Sonnier Council Member—Ward III Jeff Ortiz Council Member—Ward IV V UI a- loam Manny De La Rosa City Manager Joni Underwood City Clerk J Richard Hughes City Attorney Heather Stucker Director of Finance Rod Carroll Police Chief Terry Morton Fire Chief J Fred Bell Director of Public Works Jacob Pitts Interim Building Official Molli Hall Librarian _Stephanie Gaspard Human Resources Director 1' Toby Latiolais Parks Director I/ 41 Jeffrey P. I arby, Mayor ��. ` (ai142obq' Joni Un i erwood,City Clerk 5.11.26 Date CITIZEN COMMENTS SIGN-IN SHEET NAME ADDRESS 11/64(A-e1e- a/44/ l`�`Gh r,r,o r` I t 31 pov - A9v gga)65 r)C aliar / AY/A1/49 4) LGuAck Sn,��-H alOg A\lehut e- RESOLUTION 2026-07 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS CANVASSING THE ELECTION RETURNS AND DECLARING THE RESULTS OF AN ELECTION HELD ON SATURDAY, MAY 2, 2026, FOR THE PURPOSE OF ELECTING COUNCIL MEMBERS FOR WARD I AND WARD III WHEREAS, the City Council of the City of Nederland, Texas, adopted a Resolution calling an election to be held on May 2,2026 for the purpose of electing members to serve on the City Council of the City of Nederland,Texas,for Ward I and Ward Ill;and WHEREAS,the Councilmembers for Ward I and Ward Ill are to be elected for a term of three(3) years;and WHEREAS,said election was duly held at the time and at the places specified in the Resolution after due notice as required by law had been given: NOW,THEREFORE,BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS: THAT all independent candidates at the election to be held on the first Saturday in May,2026,for the municipal election scheduled for May 2,2026,was duly called and notice was given in accordance with the law and in accordance with the Resolution calling for said election. THAT the election was held in accordance with applicable state statutes and ordinances of the City of Nederland,Texas,and the following votes were cast: Councilmember Ward I Early Voting Election Day Voting Absentee Total Curtis Stratton 561 152 49 762 Councilmember Ward III Early Voting Election Day Voting. Absentee Total Randy Sonnier 546 133 42 721 Keith Bass 394 110 15 519 PASSED,APPROVED AND ADOPTED this 11th day of May,2026. C %l 11/�4 U/ rdy P. rby,Mayor City of Ne eland,Texas ATTEST: O`�qtr,,A. . WP9i Jon nderwood,City Clerk City of Nederland,Texas APPROVED AS TO FORM: i,,,i ichard D.Hughes,City Atto V ey = / r`�/;p City of Nederland,Texas ?G" 0.. �i 52' . -01 =c 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 AUTORITYTASKFORCE 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 including catalytic converter 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 11th day of May,2026 e frey P. arby,Mayor City of Nederland,Texas ATTEST: A��� �,,- J 1 t J Joni Un%erwood,City Clerk City of Nederland,Texas APPROVED AS TO FORM: O ..•• .. &rdDHutorneTo••vis City of Nederland,Texas -G � � OF JEFF, rrnrnn�r�ru�o`` ORDINANCE NO.2026-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2025- 2026 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS,the City Council previously approved Ordinance No. 2025-16 which adopted the Fiscal Year 2025-2026 City Budget;and, WHEREAS,the City Council deems it necessary to amend the current budget to increase expenditures as set out in Attachment"A"attached hereto;and, WHEREAS,the 2025-2026 City budget states"That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2025 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2025 and ending September 30,2026,and such funds are hereby appropriated as a City Council Contingency Account for purposes approved by the City Council;and, NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the budget for the fiscal year 2025-2026 is amended to allow for increases in expenditures as set out in Attachment"A." THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. THAT,this being an ordinance not requiring publication,it shall take effect and be in force from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 11TH DAY OF MAY,2026. Jeffrey P. arby,Mayor City of Nederland,Texas ATTEST: 444/14ii• 11/1466120074 O74 Joni Ighderwood,City Clerk "`aul1,,,iuu � ,,,� °(F NDF,f;'�%,; APPROVED AS TO FORM: =ti; ': Lick' c.._)•IlSto A E Richard D.Hughes,City Attorney °��,, OFV.-f,,o�`O 1 BUDGET ORDINANCE AMENDMENT—ATTACHMENT A GENERAL FUND Amend General Fund by increasing expenditure and revenue line items as detailed below: Increase 01-1600-6210 $10,762 For the purchase of office furniture for the City Hall Annex trailer. Increase 01-2100-6265 $6,280 For the purchase of 4 handheld radar units for utilization by Administration and School Resource Officers. Increase 01-5100-6350 Building and Structure Improvements $45,000 Decrease 01-5100-6720 Buildings,Fixtures,&Grounds ($45,000) Bring the Parks and Recreation budget up to cover soffit repair work and lighting at pool house. Move the same amount from capital expense to improvements for the soffit repair work and lighting and pool house. Increase 01-0000-4350 Federal Grant Revenue $46,750 Increase 01-5100-6720 Buildings,Fixtures,&Grounds $46,750 Increase revenue and expense for the EECDBG Energy Efficiency grant for the lighting project at the recreation center. Increase 01-5500-6350 Building and Structure Improvements $20,000 Bring the Library building budget up to cover improvements and repairs requested by City Council as well as cover the expense of unanticipated repairs to A/C unit. EQUIPMENT REPLACEMENT FUND-GENERAL Amend Equipment Replacement Fund-General by increasing expenditure line items as detailed below: Increase 34-0000-6742 $96,000 For the purchase of a 2026 Ford Explorer Interceptor Patrol Unit with cage insert for K-9 with exterior emergency light package,radar,and onboard video system. 2 ORDINANCE 2026-07 AN ORDINANCE OF THE CITY COUNCIL OF NEDERLAND,TEXAS, AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE AREA CITIES IN MAT 1'LRS CONCERNING ENTERGY TEXAS,INC.AT THE PUBLIC UTILITY COMMISSION OF TEXAS IN 2026; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE PUBLIC UTILITY COMMISSION OF TEXAS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE WHEREAS,Cities have exclusive original jurisdiction over rates,operations,and services of an electric utility in areas in the municipality pursuant to Tex. Util. Code § 33.001;and WHEREAS, Cities have standing in each case before the Public Utility Commission of Texas that relates to an electric utility providing service in the municipality pursuant to Tex. Util. Code§33.025;and WHEREAS, Entergy Texas, Inc. ("ETI" or "Company") is expected to file rate change requests in various proceedings before the Public Utility Commission of Texas ("Commission")or before municipalities in 2026,which may include(1)a base rate case, (2) rate proceedings or cost adjustments such as a transmission cost recovery rider, a distribution cost recovery rider, a generation cost recovery rider, energy efficiency cost recovery factor, or storm restoration cost or offset true-ups, (3) and various fuel cost refunds or surcharges and reconciliations;and WHEREAS,Cities have the statutory right to set fair and reasonable rates for both the Company and customers within Cities;and WHEREAS,Cities are entitled to reimbursement by the utility of their reasonable rate case expenses to participate in cases that are deemed rate proceedings pursuant to Tex. Util. Code§33.023. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, 1'FXAS,that: SECTION 1. The City of Nederland shall participate with other Cities to intervene in ETI's various rate filings related to any base rate adjustment proceedings or cost of service adjustments,the various fuel cost surcharges and reconciliations, and any other interim or incremental surcharge proceedings or surcharge adjustments filed with the Commission or with municipalities in 2026. SECTION 2. The City of Nederland employs the Lawton Law Firm P.C. to represent the City regarding ETI rate matters before local regulatory authorities and the Commission and authorizes counsel to employ rate experts as are recommended by the Cities' Steering Committee to intervene in rate- or fuel-related proceedings at the Commission concerning ETI's rates charged to Texas customers. SECTION 3. All such actions shall be taken pursuant to the direction of the Cities' Steering Committee. Cities' Steering Committee shall have authority to retain rate consultants and lawyers. Cities' Steering Committee shall direct the actions of Cities' representatives in the above proceedings. The Steering Committee is directed to obtain reimbursement from ETI of all reasonable expenses associated with participation in said proceedings. SECTION 4. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,Chapter 551. 1 SECTION 5. This Ordinance shall be effective from and after the date of its passage. PASSED AND APPROVED this 11th day of May,2026. Jeffrey P.Darby,Mayor ;/' City of Nederland,Texas ATTEST: althabcti Joni Ulu erwood,City Clerk City o Nederland,Texas APPROVED AS TO FORM: Richard D.Hes,City Attorney `ti ..• \` �eon City of Nederland,Texas =v E�Qr�� '1� 2 THE LAWTON LAW FIRM, P.C. 12600 Hill Country Blvd.,Suite R-275•Austin,Texas 78738•512/322.0019 January 19,2026 Via e-mail . Mr.Richard G.Baker Ms.Sharae Reed City Attorney—City of Anahuac City Attorney—City of Beaumont P.O.Box 10066 P.O.Box 3827 Liberty,Texas 77575 Beaumont,Texas 77704 Mr.Kenneth R.Williams Mr.Paul Fukuda City Manager—City of Beaumont City Attorney—City of Bridge City P.O.Box 3827 City Attorney—City of Pine Forest Beaumont,Texas 77704 260 Rachal Post Office Box 846 Bridge City,Texas 77611 Mr.Scott Swigert Ms.Mary Ann Powell City Manager—City of Cleveland City Attorney—City of Cleveland 907 E.Houston Wortham Tower,Suite 600 Cleveland,Texas 77327 2727 Allen Parkway Houston,Texas 77019 Ms.Juanita Limon Mr.Gary Scott City Secretary—City of Cleveland City Attorney—City of Conroe 907 E.Houston P.O.Box 3066 Cleveland,Texas 77327 Conroe,Texas 77305 Mayor Nyla Akin Dalhaus Amy L.Wade City of Cut and Shoot City Secretary—City of Cut and Shoot P.O.Box 7364 P.O.Box 7364 Cut and Shoot,Texas 77306 Cut and Shoot,Texas 77306 Mayor Martin Mudd Mr.Derek Woods City of Dayton City Manager—City of Dayton 117 Cook Street 117 Cook Street Dayton,Texas 77535 Dayton,Texas 77535 Attorney-Client Privileged Communication 1 Mr.Brandon Monk Mr.Kevin Carruth City Attorney—City of Groves City Manager—City of Groves 4875 Parker Drive 3947 Lincoln Avenue Beaumont,TX 77705 Groves,Texas 77619-4604 Ms.Tina Paez Ms.Yushan Chang City of Houston Administration&Regulatory City of Houston Legal Department Affairs Department(ARA) P.O.Box 368,Houston,Texas 77001-0368 611 Walker, 13th Floor City Hall Annex,4th Floor Houston,Texas 77002 900 Bagby Houston,Texas 77002 Mr.Leonard Schneider Mr.Sam Masiel City Attorney—City of Huntsville Interim City Manager—City of Huntsville City Attorney—City of Panorama Village 1212 Ave.M City Attorney—City of Riverside Huntsville,Texas 77340 City Attorney—City of Splendora Law Offices of Leonard Schneider PLLC 2261 Northpark Dr.,Suite 445 Kingwood,TX 77339 Mr.Brandon Davis Mr.Bryan Kendrick City Attorney—City of Liberty City Manager—City of Liberty City Attorney—City of Dayton 1829 Sam Houston 1517 Trinity Liberty,Texas 77575 Liberty,Texas 77575 Mr.Alan P.Petrov Mr.Richard Tramm City Attorney—City of Montgomery City Administrator—City of Montgomery Johnson Petrov LLP 101 Old Plantersville Road 2929 Allen Parkway,Suite 3150 Montgomery,TX 77316 Houston,Texas 77019 Mr.Cary Bovey Ms.Kristin Gauthier City Attorney—City of Navasota Assistant City Manager—City of Navasota Bovey&Cochran,PLLC 200 E.McAlpine Street 2251 Double Creek Dr.,Suite 204 Navasota,Texas 77868 Round Rock,Texas 78664 Ms.Cheryl Dowden Mr.Chris Leavins Interim City Manager—City of Nederland City Attorney—City of Nederland P.O.Box 967 City Attorney—City of Vidor Nederland,Texas 77627 City Attorney—City of West Orange P.O.Box 4915 Beaumont,Texas 77704-4915 Attorney-Client Privileged Communication 2 Ms.Elizabeth Harrell Ms.Heather Neeley City Secretary—City of Oak Ridge North City Manager—City of Oak Ridge North 27424 Robinson Road 27424 Robinson Road Oak Ridge North,Texas 77385 Oak Ridge North,Texas 77385 Mr.Guy Goodson Mr.Mike Kunst City Attorney—City of Orange City Manager—City of Orange GERMER PLLC 812 North 16th Street 550 Fannin,Suite 400 P.O.Box 520 Beaumont,Texas 77701 Orange,Texas 77630 Mr.Rodney Price Mr.Jerry Hood City Attorney—City of Rose City City Administrator—City of Pinehurst P.O.Box 310 2497 Martin Luther King Jr.Drive Vidor,Texas 77670 Orange,Texas 77630 Mr.Tommy Gunn Ms.Roxann Cotroneo City Attorney—City of Pinehurst City Attorney—City of Port Arthur 202 S.Border P.O.Box 1089 Orange,Texas 77630 Port Arthur,Texas 77641 Mr.Ronald Burton Mr.Lance Bradley City Manager—City of Port Arthur City Attorney—City of Port Neches P.O.Box 1089 P.O.Box 1148 Port Arthur,Texas 77641 Port Neches,Texas 77651 Mr.Andre'Wimer Mr.J.Grady Randle City Manager—City of Port Neches City Attorney—City of Roman Forest P.O.Box 758 The Randle Law Office Ltd.LLP Port Neches,Texas 77651 820 Gessner,Suite 1570 Houston,TX 77024 Ms.Kathie Reyer Mr.Solomon Freimuth City Administrator—City of Shenandoah City Attorney—City of Silsbee 29955 IH-45 N. P.O.Box 186 Shenandoah,Texas 77381 Port Neches,Texas 77651 Ms.DeeAnn Zimmerman Mr.Alex Stelly City Manager—City of Silsbee City Attorney—City of Sour Lake 105 South 3rd Street 2615 Calder Ave.,Ste. 1070 Silsbee,Texas 77656 Beaumont,Texas 77702 Attorney-Client Privileged Communication 3 Mr.Jack Provost Mayor Dorothy Welch City Manager—City of Sour Lake City Attorney Leonard Schneider 625 Hwy 105 W City of Splendora Sour Lake,Texas 77959 P.O.Box 1087 Splendora,Texas 77372 Mr.Robbie Hood Mayor Randy Branch City Manager-City of Vidor Mayor—City of West Orange 1395 N.Main St. 2700 Western Avenue Vidor,Texas 77662-3726 West Orange,TX 77630 Mr.Michael S.Stelly Ms.Marissa Quintanilla City of West Orange,Texas City Secretary—City of Willis 2700 Austin Avenue 200 N.Bell West Orange,TX 77630 Willis,Texas 77378 Re: Annual Ordinance Authorizing Municipal Participation in Regulatory Proceedings of Entergy Texas,Inc.in 2026 Dear Steering Committee of Cities located in Entergy Texas,Inc.'s Service Territory: It is once again time to authorize municipal participation in regulatory rate proceedings involving Entergy Texas, Inc. ("ETI" or"Company") before the Public Utility Commission of Texas("PUCT"or"Commission").Attached for your consideration is a proposed Ordinance to authorize participation in rate proceedings in 2026. Please forward the completed Ordinance to us by email at danlawtonlawfirm(agmail.com and molly(aimavhallvandervoort.com. In 2025,we participated in several different types of proceedings that ETI initiated with the Commission,summarized below: • Application of Entergy Texas, Inc. to Amend Its Certificate of Convenience and Necessity to Construct a Portfolio of Dispatchable Generation Resources.ETI's application for approval to construct the Legend Power Station and the Lone Star Power Station was approved on December 9,2025.Together,these plants will add 1207 MW of capacity to serve ETI's customers by mid-2028. In its order, the Commission found that ETI did not adequately evaluate lower-cost alternatives in its planning process.To protect customers from the risk of the projects going over budget, the Commission imposed a cost cap of$1.6024 billion for the Legend Power Station and$771.5 billion for the Lone Star Power Station. • Application of Entergy Texas, Inc. to Amend Its Certificate of Convenience and Necessity to Construct a Por folio of Renewable Generation Resources. ETI withdrew its application for approval to construct two solar facilities and will not go forward with these projects. Attorney-Client Privileged Communication 4 • Application of Entergy Texas,Inc.for Approval of a Resiliency Plan.In January 2025,the Commission approved Phase I of ETI's"Texas Future Ready Resiliency Plan," a comprehensive set of resiliency measures that are intended to improve service reliability for customers and to mitigate system restoration costs after extreme weather events.' The projects approved for Phase I are expected to cost approximately $137 million,but ETI is deferring recovery of these costs until a future proceeding.ETI must file a resiliency plan report annually starting May 1, 2026. • Application of Entergy Texas,Inc.for Authority to Reconcile Fuel and Purchased Power Costs.ETI requested to reconcile the fuel and purchased power expenses it incurred between April 1,2022 and March 31, 2024.No objections were raised and the application was approved as filed. Pursuant to the Commission's final order,the Company's under-recovery balance of approximately$30 million will be carried forward to the next fuel reconciliation proceeding.As such,rates were not impacted. • Application of Entergy Texas,Inc. to Adjust its Energy Efficiency Cost Recovery Factor. The Energy Efficiency Cost Recovery Rider("EECRF") recovers costs related to ETI's energy efficiency programs.This rider is adjusted annually with the updated rate going into effect on January 1 of each year.The parties reached a settlement agreement that made small adjustments to the Company's request with a negligible impact on the proposed rates. The Commission approved the settlement agreement on December 12,2025. • ETI filed applications to recover costs related to its distribution system (Distribution Cost Recovery Factor or "DCRF") and its transmission system (Transmission Cost Recovery Factor or"TCRF").The DCRF applications were uncontested by the Commission Staff and intervening parties and were approved by the Commission. The TCRF application is still pending, but as we do not anticipate any major issues,we expect a final order to be issued in early 2026.The DCRF and TCRF are subject to true-up to prevent the Company from over- recovering its expenses. Looking forward to 2026,we will continue to participate in the currently pending TCRF proceedings.In addition,several other rate proceedings may be initiated this year: • ETI's Orange County Advanced Power Station ("OCAPS") is on track to start serving customers in summer of 2026.When the Commission approved the OCAPS project in 2023,the cost was projected to be at least$1.58 billion and possibly as much as$2.5 billion.We anticipate that the Company will file an application for a Generation Cost Recovery Rider("GCRR"),which will allow for recovery of plant investment costs as soon as OCAPS goes into service.Like the TCRF and DCRF, ETI filed its system resiliency plan pursuant to Public Utility Regulatory Act§38.078(Transmission and Distribution System Resiliency Planning by and Cost Recovery for Electric Utilities),which was signed into law in 2023. Attorney-Client Privileged Communication 5 the GCRR isan interim cost recovery mechanism that is subject to true-up in the next base rate case. • By statute,electric utilities must reconcile fuel and purchased power costs at least once every two years.2 ETI's last fuel reconciliation case was filed in 2024,so ETI is expected to file its next fuel reconciliation case this year. • The Company is likely to file an additional TCRF and up to two DCRF applications for interim cost recovery of investments made to its transmission and distribution systems. • The Company is also expected to file its annual application to amend its Energy Efficiency Cost Recovery Factor in May 2026. • ETI is not required to file its next base rate case until August 2027,but it could opt to file in 2026 instead.' The continued support of each of the Cities in the Steering Committee has been instrumental in the successful regulation of ETI and in maintaining reasonable rates for customers within the Cities. We look forward to each City's continued participation with the Steering Committee in the regulatory process.Please forward completed Ordinances to us by email at danlawtonlawfirm(a gmail.com and molly( mayhallvandervoort.com. If you have any questions or concerns,please call. Sincerely, ‘11/1/614 For Daniel J.Lawton 2 Public Utility Regulatory Act§36.203(h). 3 Public Utility Regulatory Act§36.212(b)(1). Attorney-Client Privileged Communication 6