Loading...
10-12-2026 Agenda with AttachmentsNOTICE OF THE REGULAR MEETING OF THE CITY OF NEDERLAND CITY COUNCIL October 12, 2026, 5:30 PM NOTICE is hereby given of a regular meeting of the Nederland City Council to be held October 12, 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. Pursuant to Texas Government Code, Sec. 551.127, notice is given that it is the intent of the City Council that a quorum of the Council will be physically present for the above-referenced meeting at the Nederland City Hall address stated above. Some Council members or city employees may participate in this meeting remotely by means of video conference call in compliance with state law. Members of the public can view 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). CITIZEN COMMENTS AND DISCUSSION ITEMS ON NON-AGENDA ITEMS: Members of the public may comment on a non-agenda item pertaining to city business or issues. The Texas Open Meetings Act prohibits Council Members discussing any issue brought forth as a non-agenda comment, except as limited by law. 1)Sign-in before the meeting by providing their name, 2)When recognized by the Mayor to speak, stand at the podium, 3)Limit comments to a maximum time limit of three (3) minutes. and 4)Maintain proper conduct and decorum in compliance with Policies and Procedures for City Council Meetings and general law. ON AGENDA ITEMS: Members of the public may address the City Council on items listed on the Consent or Regular Agenda and shall restrict their comments to the subject matter listed. 1)When recognized by the Mayor to speak, stand at the podium, 2)Limit comments to a maximum time limit of three (3) minutes, and 3)Maintain proper conduct and decorum in compliance with Policies and Procedures for City Council Meetings and general law. 1 AGENDA October 12, 2026 Page 2 1.CALL THE MEETING TO ORDER a.Invocation. b.Pledge of Allegiance to the U.S. Flag and to the Texas Flag. 2.CITIZEN COMMENTS ON NON-AGENDA ITEMS a.Citizens may comment on non-agenda items. 3.PRESENTATION a.William Spell, Information Technology Director, will present an overview of the City’s E-Notification Service. 4.CONSENT AGENDA ITEMS 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.Approve the minutes of the September 28, 2026 regular meeting. b.Approve the Nederland Little Dribblers' request to use the Nederland Recreation Center gym on Tuesday and Thursday from 5:30 - 7:30 p.m. from November 3, 2026, through February 4, 2027, and on Saturday, December 5, 2026, from 10:00 - 5:00 p.m. Organization will provide insurance coverage. 5.REGULAR AGENDA NEW BUSINESS a.Discussion and possible action to approve the Cyber Liability Insurance for Nederland, Port Neches, and Groves. All three cities are covered under a shared cyber liability insurance policy arranged through Texas Municipal League (TML). The policy period is October 1, 2026, through October 1, 2027. b.Discussion and possible action to approve a Memorandum of Understanding (MOU) with the Southeast Texas Alerting Network (STAN) agreement to participate as administered by the Southeast Texas Regional Planning Commission (SETRPC). This agreement is for the period of October 1, 2026, through September 30, 2027, and will now have an approximate cost of $3,500.00. 2 AGENDA October 12, 2026 Page 3 c.Discussion and possible action to approve the hiring of Mr. Nathan Reynolds to serve as City Prosecutor of the Municipal Court. d.Discussion and possible action on approving Ordinance No. 2026-20, amending the Fiscal Year 2026-2027 Municipal Budget for establishing a monthly salary for a city prosecutor. e.Discussion and possible action to approve the purchase of two (2) new influent lift station pumps located at the Wastewater Treatment Plant. f.Discussion and possible action to approve the purchase of two (2) new 10 HP Flygt pumps for the Nederland Avenue and Canal Street lift stations. g.Discussion and possible action to approve the letter of agreement with Griffith, Moseley, Johnson & Associates, Inc. (GMJ) to provide grant-related professional services to the City of Nederland on an as-needed basis. h.Discussion and possible action on approving the contract for Engineering/Survey Services with Soutex Surveyors & Engineers for the City of Nederland 2027 Striping Program. i.Discussion and possible action approving Ordinance No. 2026-21, which authorizes, approves and ratifies the Real Estate Exchange Agreement ("REA") by and between the City and Energy Transfer Marketing & Terminals, L.P. ("ETMT") as approved by City Council on 6/24/2024, wherein the City agreed to transfer its 20'x100' (0.0459 acres) alleyway (retaining a 20' utility easement) to ETMT in exchange for ETMT's agreement to transfer its 2.069-acre tract to the City, together with ETMT's grant of an adjoining 30' access easement to the City; and, further, granting approval and authority for all documents ancillary to such REA to be executed by the City Manager, or his designee, and for the payment of the City's portion of closing costs related to such agreements, including the recording fees on documents and the cost of title insurance on the 2.069-acre tract and the adjoining access easement. 6.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, Texas Gov't Code, Sec. 551.071(b), including: Factual and legal issues pertaining to real estate exchange agreements between the City and Energy Transfer & Marketing Terminals, L.P. 3 AGENDA October 12, 2026 Page 4 7.RECONVENE Reconvene into regular session and discuss and take action, if any, on items discussed in Executive Session. 8.ADJOURNMENT Note: The City of Nederland does not discriminate on the basis of disability in the admission of, access to, treatment of, or employment in its programs, activities, or public meetings. Any individual with a disability in need of accommodation is encouraged to contact the City Clerk at 409-723-1505 at least three (3) working days prior to the meeting. Dated: October 6, 2026 CITY OF NEDERLAND Jeffrey P. Darby Honorable Jeffrey P. Darby Mayor STATE OF TEXAS § COUNTY OF JEFFERSON § I, the undersigned authority, do herby certify that the above Notice of the Regular Meeting of the City of Nederland City Council is a true and correct copy of said Notice posted on the front outdoor bulletin board cabinet for agendas at the Nederland City Hall Building, 207 N 12th Street, Nederland, Texas, a place convenient and readily accessible to the general public at all times which has been continuously posted for a period of three (3) business days prior to the date and time said meeting was convened. This agenda may be downloaded by accessing: http://www.ci.nederland.tx.us. ATTEST: Joni Underwood Joni Underwood City Clerk 4 5 6 7 8 9 10 11 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 5:30 p.m. September 28, 2026 1.MEETING The Invocation was led by Councilman Ortiz. The Pledges of Allegiance were led by Mayor Pro Tem Sonnier. 2.PRESENTATION Steve Jordan of Schaumburg & Polk presented findings from the citywide sanitary sewer system study. Mr. Jordan reported that 2,784 defects were found within the system, with approximately 58 percent on the private service side and 42 percent on the municipal side. 3.CITIZEN COMMENTS Allan Nation with Adaptive Sports for Kids invited the council and public to the organization's fifth annual fishing tournament at Doornbos Park on October 3rd at 10:00 AM. Jacquelyn Toups expressed concern about language on the agenda requiring citizens to sign in and the three-minute limit for speaking. Bob Klinger commented that executive sessions need to be held at the end of council meetings instead of the beginning of meetings. Laura Smith expressed her concern regarding negative comments posted on social media regarding our city. Keith Esmond spoke about an incident at his home involving the Nederland Police Department. He also raised a concern about a flooding issue at his mother’s property. David Wedgeworth commented on the timing of the engineering reports from the City Manager. 4.CONSENT AGENDA ITEMS 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. Councilmember Jones moved to remove Item 4.e (Public Works Engineering Progress Reports for Minutes continued, September 28, 2026 2 the period ending August 2026) from the consent agenda for regular discussion. Councilmember Stratton moved to remove Item 4.b (August 2026 Departmental Reports) from the consent agenda for regular discussion. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember Jones to approve the remaining Consent Agenda Items “a, c, and d” as presented. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. a. Approve the minutes of the September 14, 2026 regular meeting. c. Accept the July 2026 Tax Assessor Collection Report. d. Accept the July 2026 Financial Reports. 5. REGULAR MEETING NEW BUSINESS a. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember Ortiz to approve the closure of Boston Avenue from 15th Street to 17th Street for the Nederland Chamber of Commerce’s 20th Annual Trunk-R-Treat on Saturday, October 31, 2026 from 4:00 p.m. to 7:30 p.m. This request also includes having a fire truck placed at 15th Street and having police presence, if possible. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. b. A motion was made by Councilmember Jones and seconded by Councilmember Ortiz to approve a request to host Relay for Life of the Greater Golden Triangle on Boston Avenue on April 10, 2027 from 2:00 p.m. to 10:00 p.m. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. c. A motion was made by Councilmember Stratton and seconded by Councilmember Ortiz to change the regular meeting scheduled for the fourth Monday in November and December to the first Monday in November and December due to Thanksgiving and Christmas Holiday. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. d. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember Ortiz to approve the City of Nederland entering into a contract for fireworks display for the July 4, 2027 event. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. Minutes continued, September 28, 2026 3 Mayor Pro Tem Sonnier noted that the event grows each year, with people parking on every side street. He suggested looking into designated golf cart parking similar to what Port Neches does, as many people arrive on golf carts. e. A motion was made by Councilmember Jones and seconded by Councilmember Stratton to authorize the dissolution of the Nederland Fire Department’s Texas Commission on Law Enforcement (TCOLE) agency designation and transferring the TCOLE appointment of the Fire Department’s licensed peace officer/arson investigators to the Nederland Police Department. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. f. Discussion was held regarding amending the Wage and Classification Plan for 2026- 2027. Ms. Gaspard, Human Resources Director, requested council approve amendments to the wage and position plan for 2026-2027 to reflect the city's 2026 salary survey recommendations and to remove outdated provisions. The plan updates certification pay as recommended by the salary survey company and modifies acting status pay, which is paid when an employee performs a higher-level position. Councilmember Jones questioned why only certain certifications were recommended for increases while others have not been increased for 7.5 to 26 years Councilmember Ortiz stated he wanted to make sure that all employees are compensated equally in the different departments. A motion was made by Councilmember Stratton and seconded by Mayor Pro Tem Sonnier to postpone consideration until the February 8, 2027 meeting to allow staff time to conduct a more in-depth study into the Wage and Classification Plan for 2026- 2027. MOTION CARRIED. AYES: Councilmembers Stratton, Jones, and Sonnier. NOES: Mayor Darby, Councilmember Ortiz. g. A motion was made by Councilmember Jones and seconded by Councilmember Ortiz to amend the equipment replacement fund budget for $5,600.00 for increased costs of safety equipment for two purchased police vehicles. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. h. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember Ortiz to amend Ordinance 2025-16 Fiscal Year 2025-2026 City Budget with amendment Ordinance No. 2026-18, year-end budget amendments. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. Heather Stucker, Finance Director, noted that City Hall Department appeared twice on the list inadvertently for $117,000 under the same line item (01-1907-6744) and it is only Minutes continued, September 28, 2026 4 intended to be listed once. i. A motion was made by Councilmember Jones and seconded by Councilmember Stratton to approve Ordinance No. 2026-19 declaring certain utility accounts as uncollectible at fiscal year-end. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. j. Councilmember Stratton nominated David Wedgeworth for the Ward I EDC board position. Mr. Wedgeworth was present and accepted the nomination. All voted on the appointment of David Wedgeworth to the EDC board, with term beginning October 1, 2026. David Wedgeworth was appointed unanimously. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. Councilmember Ortiz nominated Pam Berry for the Ward IV EDC board position. All voted on the appointment of Pam Berry to the EDC board, with term beginning October 1, 2026. Pam Berry was appointed unanimously. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. k. Discussion was held regarding declaring surplus the City Hall’s 2015 Generac 150 kW natural gas generator and authorizing its disposal through the Rene’ Bates Auction site. Jolei Shipley suggested determining the value of the generator and setting a minimum bid. Councilmember Stratton suggested selling the generator outright through the city before utilizing the auction house and requested this item be placed on the next council agenda for consideration. Councilmember Jones, who had made the original motion, withdrew his motion. Councilmember Ortiz, who had seconded, agreed to the withdrawal. The item will be placed on the next council agenda with consideration of selling the generator through the city before using an auction house. Item 4.e was removed from the Consent Agenda and placed as a regular item on the agenda. 4.e The City Manager stated that the Public Works Engineering Progress Reports for the period ending August 2026 are already posted on the city website under Public Works, Infrastructure Progress Reports. They are also included in the agenda packets with all attachments available on the city website. A motion was made by Councilmember Jones and seconded by Councilmember Ortiz to accept the Public Works engineering progress reports for the period ending August 2026. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. Minutes continued, September 28, 2026 5 Item 4.b was removed from the Consent Agenda and placed as a regular item on the agenda. 4.b Councilmember Stratton requested the departmental reports show information regarding the number of water meters being changed out. City Manager De La Rosa responded that he is working on this request and should have it completed by the end of the week. Councilmember Ortiz requested this report include data going back to May 2025. Susan Toney requested the animal control report show breakdowns of the type of animal calls. A motion was made by Councilmember Stratton and seconded by Councilmember Ortiz to accept the August 2026 Departmental Reports. MOTION CARRIED. AYES: Mayor Darby, Councilmembers Stratton, Jones, Sonnier, and Ortiz. NOES: None. EXECUTIVE SESSION The regular meeting was recessed at 7:54 p.m. by Mayor Darby for the purpose of conducting an Executive Session as authorized by Texas Government Code, Personnel Matters, Section 551.04(a)(1): Police Chief Rod Carroll evaluation; Consultation with Attorney –Section 551.071(b): Hodgson Road. RECONVENE The regular meeting was reconvened at 9:09 p.m. by Mayor Darby. No further action was taken on this item. ADJOURN There being no further business Mayor Darby adjourned the meeting at 9:09 p.m. __________________________ Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: ___________________________ Joni Underwood, City Clerk City of Nederland, Texas 12 13 14 15 16 Page 1 of 12 support@cowbellcyber.ai cowbell.insure 17 Page 2 of 12 support@cowbellcyber.ai cowbell.insure BOOK NOW 18 Page 3 of 12 crs@cowbell.ai cowbell.ai cowbell.ai 19 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 4 of 12 Binder Number QCB-250-LAO15DR6 Policy #PLM-CB-SLAO15DR6 Bound On 09/21/2026 Name of Insured City Of Nederland Mailing Address 207 N 12th St, Nederland, TX, 77627 Email Address wspell@ci.nederland.tx.us Industry 921120 | Public Administration Revenue $76,844,947.00 # Of Employees 20 Year Established 1999 Agency Name Risk Placement Services, Inc Policy Period From: 10/01/2026 (Effective Date) To: 10/01/2027 (Expiration Date) Both dates at 12:01 AM Insured Local Time Policy Term 365 days Policy Premium Estimated Premium (without TRIA)$37,275.25 TRIA $372.75 Premium $37,648.00 Underwriting Fees $400.00 TOTAL AMOUNT :$38,048.00 Aggregate Limit $3,000,000 Insured State TX Issuing Carrier Palomar Excess and Surplus Insurance Company NAIC# 16754 (A.M. Best A (Excellent), X Rated) Product Prime 250 | Surplus Coverage under this policy is provided only for those Insuring Agreements for which a limit of liability appears on subsequent pages. If no limit of liability is shown for an Insuring Agreement, such Insuring Agreement is not provided by this policy. The Aggregate Limit shown above is the most the Insurer(s) will pay regardless of the number of Insured Agreements purchased. CYBER INSURANCE BINDER - PRIME 250 City Of Nederland Subject to the terms and conditions contained herein, Cowbell Insurance Agency ("Cowbell") agrees to issue to the below Named Insured the following quote for insurance coverage. Upon binding of this account, we must receive a signed application from the Insured. 20 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 5 of 12 LIABILITY EXPENSE COVERAGE LIMIT DEDUCTIBLE WAITING PERIOD RETRO ACTIVE PERIOD Liability Costs $3,000,000 $25,000 -Full Prior Acts PCI Costs $3,000,000 $25,000 -Full Prior Acts Regulatory Costs $3,000,000 $25,000 -Full Prior Acts FIRST PARTY EXPENSE COVERAGE LIMIT DEDUCTIBLE WAITING PERIOD RETRO ACTIVE PERIOD Cowbell Breach Fund $3,000,000 $25,000 -- Data Restoration Costs $3,000,000 $25,000 -- Extortion Costs $3,000,000 $25,000 -- Business Impersonation Costs $3,000,000 $25,000 -- Reputational Harm Expense $3,000,000 -12 Hours Full Prior Acts FIRST PARTY LOSS COVERAGE LIMIT DEDUCTIBLE WAITING PERIOD RETRO ACTIVE PERIOD Business Interruption Loss $3,000,000 $25,000 8 Hours - Contingent Business Interruption Loss $3,000,000 $25,000 8 Hours - System Failure $3,000,000 $25,000 8 Hours - Contingent System Failure $3,000,000 $25,000 8 Hours - Cyber Crime Loss $250,000 $25,000 -- Bricking Costs $3,000,000 $25,000 -- Criminal Reward Costs $100,000 --- COVERAGES - PRIME 250 21 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 6 of 12 COVERAGE ENDORSEMENTS COVERAGE LIMIT DEDUCTIBLE WAITING PERIOD RETRO ACTIVE PERIOD California Consumer Privacy Act $3,000,000 $25,000 - Full Prior Acts General Data Protection Regulation $3,000,000 $25,000 - Full Prior Acts Utility Fraud Attack $100,000 $25,000 - - Media Liability $3,000,000 $25,000 - Full Prior Acts Cryptojacking $100,000 $25,000 - - Separate Cowbell Breach Fund Costs Endorsement $2,000,000 $25,000 - - AMENDATORY ENDORSEMENTS BIPA Exclusion Endorsement War Exclusion Endorsement Amended Cyber Event Amendatory Endorsement Amend Cooperation Clause 80.0% Blanket Additional Insured Additional Named Insured City of Groves City of Port Neches ENDORSEMENTS - PRIME 250 RPS Amendatory Endorsement 22 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 7 of 12 ENDORSEMENTS & FORMS - PRIME 250 (EFFECTIVE AT INCEPTION) TITLE FORM # Cowbell Cyber Risk Insurance Declarations - Prime 250 PRIME 250SL 002 09 21 Long Named Insured Endorsement PRIME 250SL 064 01 21 Notice to Policyholders - OFAC PN006SL 09 20 Customer Notice of Privacy Policy & Producer Compensation Practices Disclosure PN007SL PL 0921 Cowbell Cyber Risk Insurance Policy - Prime 250 PRIME 250SL 001 10 20 Service of Process PRIME 250SL 075 PL 09 21 California Consumer Privacy Act PRIME 250SL 004 09 20 General Data Protection Regulation PRIME 250SL 005 09 20 Utility Fraud Attack PRIME 250SL 006 09 20 Media Liability PRIME 250SL 007 09 20 Cryptojacking PRIME 250SL 009 09 20 Amend Cooperation Clause PRIME 250SL 019 09 20 Blanket Additional Insured PRIME 250SL 021 09 20 BIPA Exclusion Endorsement PRIME 250SL 048 09 21 WAR Exclusion Endorsement PRIME 250SL 088 06 23 Amended Cyber Event Amendatory Endorsement PRIME 250SL 089 08 23 Separate Cowbell Breach Fund Costs Endorsement PRIME 250SL 090 04 24 Disclosure Pursuant to Terrorism Risk Insurance Act PRIME 250SL 028 10 20 Cap on Losses From Certified Acts of Terrorism PRIME 250SL 029 10 20 Trade or Economic Sanctions Exclusion Endorsement PRIME 250SL 032 09 20 CB-Compliance CB-COMPLIANCE (07/24) Texas Surplus Lines Notice CB-TX-NOTICE (03/24) RPS Amendatory Endorsement PRIME 250SL RPS 02 26 23 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 8 of 12 SUBJECTIVITIES - PRIME 250 This quote proposal expires on the earlier of the following: seven (7) days after the effective date of the policy; or upon notice to you by Cowbell that the quote is expiring as of a particular date due to changes in market conditions and/or the discovery of any new information related to the quoted risk. If the policy is issued after the effective date of coverage a no known loss letter will be required to issue. This quote proposal for insurance coverage is issued based on the truthfulness and accuracy of the information provided to Cowbell in response to the questions on the insurance application entered into our underwriting system. If between the date of the quote and the Effective Date of the proposed insurance contract, there is a material change in the condition of the Named Insured or if any notice of claim or circumstance giving rise to a claim is reported prior to the Effective Date of the proposed insurance contract, then the Named Insured must notify Cowbell. Whether or not this quote has already been accepted by the Named Insured, Cowbell reserves the right to rescind this quote as of its Effective Date or to modify the final terms and conditions of the quote upon review of the information. Cowbell also reserves the right to modify the final terms and conditions upon review of the information received in satisfaction of the aforementioned conditions. This quote is also subject to the satisfaction of the following conditions: Cowbell Application signed and dated within 30 days of the effective date. Signed Cowbell Additional Named Insured Affidavit prior to binding. Please note this quote contains only a general description of coverage provided. For a detailed description of the terms, you must refer to the insurance contract itself and the endorsements listed herein. 24 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 9 of 12 DESCRIPTION OF COVERAGES - PRIME 250 (Please note this quote contains only a general description of coverage provided. For a detailed description of the terms, you must refer to the insurance contract itself and the endorsements listed herein). Liability Costs Coverage for (1) defense expenses, (2) monetary damages the insured becomes legally obligated to pay including pre-judgment interest, post judgment interests, judgments or settlements; and (3) punitive, exemplary, or multiplied damages but only to the extent such damages are insurable under the applicable law most favorable to the insurability of such damages. PCI Costs Coverage for amounts the insured is legally obligated to pay under a Payment Card Services Agreement including: (1) monetary assessments; (2) fines; (3) penalties; (4) chargebacks; (5) reimbursements; (6) fraud recoveries; (7) forensic investigation, including any PFI; and (8) costs or expenses incurred in connection with a PCI DSS compliance audit. Regulatory Costs Coverage for (1) any amount the insured is legally required to deposit in a fund for the payment of consumers; (2) fines; or (3) penalties imposed by a federal, state or foreign governmental entity due to a privacy incident. Cowbell Breach Fund Coverage for losses and expenses directly associated with recovery activities after a cyber incident. This can include incident response, investigation, forensics, crisis management, notification to customers, call center services, overtime salaries, post-event monitoring services such as credit monitoring, and healthcare records remediation for impacted customers. Data Restoration Costs Coverage for the cost to replace, restore, recreate or recover data residing on an insured’s computer system that is compromised as a direct result of a network security incident. If such data cannot be replaced, restored, recreated or recovered, then data restoration is limited to the costs associated with that determination. Extortion Costs Coverage for losses from a privacy incident or network security incident resulting from a credible threat or series of threats, such as a ransomware attack. This can include expenses to investigate the cause of an extortion threat and the payment amounts, including the actual costs to execute such payment (whether in digital or traditional currency). Business Impersonation Costs Coverage for the costs to inform potentially impacted parties (individuals, vendors or suppliers) of fraudulent communications where a third party impersonated the insured to deceive them or any vendor or supplier into sharing credentials or protected information. Reputational Harm Expense Coverage for the income loss that the insured sustains during a period of indemnity that directly results from a communication via any medium specifically arising from an actual or alleged incident that threatens to, or actually does negatively harm the insured's reputation Business Interruption Loss Coverage for the income loss and extra expenses due to the actual and measurable interruption or degradation in performance of the insured’s computer system. This would also include a voluntary shutdown of the insured’s computer system when such action is taken to minimize, avoid or reduce further damage as a result of a covered incident. Contingent Business Interruption Loss coverage for the income loss and extra expenses due to the actual and measurable interruption or degradation in performance of a service provider’s computer system. This would also include a voluntary shutdown of computer systems when such action is taken to minimize, avoid or reduce further damage as a result of a covered incident. System Failure Coverage for the income loss and extra expenses due to a system failure (see policy wording) which causes the actual and measurable interruption, suspension, failure, degradation or delay in performance of the insured’s computer system. Contingent System Failure Coverage for the income loss and extra expense due to a system failure (see policy wording) which causes the actual and measurable interruption, suspension, failure, degradation or delay in performance of a service provider’s computer system. 25 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 10 of 12 DESCRIPTION OF COVERAGES - PRIME 250 Cyber Crime Loss Coverage for loss of money or digital currency directly resulting from any of the following covered events: (1) social engineering (2) reverse social engineering, (3) fraudulent transfer of funds. It also provides coverage for charges incurred by the insured from its telecommunications provider as a result of a telecommunications hack. Bricking Costs Coverage for the reasonable and necessary costs, subject to the insurer's prior consent, to replace, remediate or improve the insured's computer system. Costs must be incurred as a direct result of a network security incident. Criminal Reward Costs Coverage for amounts offered by the insured for information that leads to the arrest and conviction of any individual(s) committing or trying to commit any illegal act related to any coverage under this policy. California Consumer Privacy Act Coverage for the amounts that the insured is legally obligated to pay in responding to a CCPA compliance audit or investigation that directly results from a privacy or a network security incident. General Data Protection Regulation Coverage for the amounts that the insured is legally obligated to pay in responding to a GDPR compliance audit or investigation that directly results from a privacy or a network security incident. Utility Fraud Attack Coverage for the additional amounts incurred due to the manipulation or deception, by an unauthorized third party for its use, of the insured organization’s natural gas, oil, or internet. Media Liability Liability costs coverage for intellectual property infringement, other than patent infringement, resulting from the advertising of an insured’s services. This builds upon the online media liability coverage in the base form to expand to printed advertising. This includes social media. Cryptojacking Coverage for the financial loss resulting from the unauthorized access or unauthorized use of computer systems to mine for digital currency that directly results in additional costs incurred by the insured organization for computing resources. Separate Cowbell Breach Fund Costs Endorsement 26 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 11 of 12 support@cowbellcyber.ai cowbell.insure COWBELL AGGREGATE FACTOR: BENCHMARKING RISK Cowbell Factors are a set of risk ratings that continuously assess your organization for cyber risks. Your company aggregate factor provides an immediate benchmark of your organization against its industry peers. Same as industry Cowbell Organization Aggregate Factor Aggregate Factors 58 Cowbell Industry Aggregate Factor COWBELL FACTORS: CONTINUOUS RISK ASSESSMENT Cowbell Factors are compiled using hundreds of data points from multiple sources: public databases, third-party vendors, proprietary external scanners, dark web intelligence, and compliance information. Cowbell applies artificial intelligence algorithms to model risks and generate Cowbell Factors which define an organization's risk profile. Your Cowbell Factors -0158 Network Security Organization Industry -0158 Cloud Security Organization Industry -0158 Endpoint Security Organization Industry -0158 Dark Intelligence Organization Industry -0158 Funds Transfer Organization Industry -0158 Cyber Extortion Organization Industry -0158 Compliance Organization Industry 27 Cowbell Cyber, Inc. | All Rights Reserved | | 1 (833) 633-8666© 2026 www.cowbell.insure Cowbell Insurance Agency LLC, State Licenses: https://cowbell.insure/state-licenses/ Policies underwritten by Cowbell Insurance Agency, LLC. Page 12 of 12 DESCRIPTION - COWBELL FACTORS Company Aggregate Cowbell Factor Weighted average of Cowbell Factors for the account and an effective metric to benchmark a company against its industry peers. The higher, the better: a company with a rating of 85represents less risk than one with a rating of 64. Industry Aggregate Cowbell Factor Measures an industry overall cyber risk profile. This is calculated for each industry based on Cowbell’s risk pool of 25 million U.S. accounts, incorporating information from proprietary scannersand external data sources. Network Security Measures the strength of the organization’s network infrastructure and whether security best practices are deployed - encryption, secure protocols, patching frequency. This factoralso checks for vulnerabilities, malware, and misconfigurations. Cloud Security Measures the strength of an organization’s cloud security based on footprint on commonly used public clouds (AWS, Azure, GCP, etc), security configuration, and alignment to security best practices. Endpoint Security Measures endpoints preparedness (servers, mobile devices, IoT endpoints) towards cyberattacks. This factor incorporates the number of endpoints as well as the level of security hygiene applied to them. Dark Intelligence Measures an organization’s exposure on the darkweb, taking into account the type, timing, and volume of data exposed and its value for criminal activity (examples: stolen credentials, PII). Funds Transfer Tracks risk markers related to the compromise of emails that commonly leads to nefarious activities such as fraudulent funds transfer. Cyber Extortion Measure of an organization’s potential exposure to extortion related attacks such as ransomware. Compliance Measures an organization’s level of compliance to security standards such as CIS (Center of Internet Security) benchmarks, NIST CSF (Cyber Security Framework), CSC-20 (CriticalSecurity Controls), HIPAA, PCI, EU GDPR and CCPA. Supply Chain Measures an organization’s susceptibility to software supply chain incidents. This factor is compiled from technographic and firmographic data, web scraping information, and public vulnerability repositories. Insider Threat Measures an organization’s susceptibility to insider threats. This factor is compiled from social media platforms and other sources that might expose attrition rate, negative opinion, or detrimental intent towards the organization by past and current employees and stakeholders. 28 Page 1 of 1CB-COMPLIANCE (07/24) SURPLUS LINES COMPLIANCE NOTICE We are pleased to enclose policy documents for this account. Please be advised that by binding this risk with the above referenced Surplus Lines Insurance Company, you agree that as the Surplus Lines Broker responsible for the placement of this insurance policy, it is your obligation to comply with all States Surplus Lines Laws including completion of any declarations / affidavits that must be filed as well as payment of any and all Surplus Lines taxes that must be remitted to the State(s). We will look to you for indemnification if controlling Surplus Lines Laws are violated by you as the Surplus Lines broker responsible for the placement. You further confirm that any applicable state requirement concerning a diligent search for coverage by admitted carriers has been fulfilled in accordance with state law. Thank you for this placement and your regulatory compliance. NAMED INSURED: NUMBER: STATE: SURPLUS LINES BROKER: FILING STATE SURPLUS LICENSE NUMBER: AGENCY NAME: AGENCY MAILING ADDRESS: City Of Nederland QCB-250-LAO15DR6 TX Nick Yonce 2102666 Risk Placement Services, Inc 12750 Merit Drive, Suite 1000 Dallas, TX, 75251 Palomar Excess and Surplus Insurance Company 6800 Koll Center Parkway, Suite 250, Pleasanton CA 94566 ISSUING CARRIER 29 Page 1 of 1CB-TX-NOTICE (03/24) TEXAS SURPLUS LINES NOTICE This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer is not a member of the property and casualty insurance guaranty association created under Chapter 462 6800 Koll Center Parkway, Suite 250, Pleasanton CA 94566 30 31 32 33 34 35 36 37 ORDINANCE NO. 2026-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2026- 15 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2026-15 which adopted the Fiscal Year 2026-2027 City Budget; and, WHEREAS, the City Council of the City of Nederland deems it necessary to amend the current budget to increase revenues and expenditures as set out in Attachment “A” attached hereto; and, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the budget for the fiscal year 2026-2027 is amended to allow for increases in revenues and 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 12th DAY OF OCTOBER, 2026. Jeffrey P. Darby, Mayor City of Nederland, Texas ATTEST: Joni Underwood, City Clerk APPROVED AS TO FORM: Richard D. Hughes, City Attorney 38 BUDGET ORDINANCE AMENDMENT – ATTACHMENT A GENERAL FUND Amend the General Fund by increasing expenditure line items as detailed below: LEGAL DEPARTMENT Increase 01-1200-6315 City Prosecutor $12,000.00 Provide funds for city prosecutor salary for the FY26-27 budget. 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66