July 24, 2017 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m_ July 24, 2017
1_ MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12.^ Street, Nederland, Texas. See attached for quorum.
The following statement was posted:
"PURSUANT TO SECTION 30_07, PENAL CODE CTRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGIJN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAWS, MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and the Pledge of Allegiance were led by Gay Ferguson, City Clerk.
3_ 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 Austin and seconded by Mayor Pro Tem
Albanese to approve the Consent Agenda Items a-c as presented. MOTION
CARRIED_
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire_
Noes: None.
a. Minutes — July 10, 2017 regular meeting and July 11, 2017 workshop
b. June 2017 Departmental Reports
c. Tax Assessor Collection Report - June 2017
4_ REGULAR AGENDA
a. Recognition of retiree: Joey Mitchell, Water Plant Operator. The meeting was
recessed between 4:35 p.m. and 4:45 p.m. to allow for cake and congratulations
to Mr. Mitchell.
b_ A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to approve an Emergency Notification System Interlocal Agreement with the
South East Texas Regional Planning Commission related to the regional Emergency
Notification project utilizing Swift Reach 911_ MOTION CARRIED_
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESE T ABSENT
R.A. Nugent Mayor
\/
Talmadge Austin Council Member-Ward I V Billy Neal Council Member-Ward II
Don Albanese Council Member-Ward III Vi
Craig Belaire Council Member-Ward IV
Chris Duque City Manager
q J
Gay Ferguson City Clerk V
Jesse Branick City Attorney
Cheryl Dowden Director of Finance V
Darrell Bush Police Chief
Gary Collins Fire Chief v
Robert Woods Director of Public Works V
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director V
Joni Underwood Executive Secretary
Angela Fanette Parks Director V
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R. A. Nuge` , if� or
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G. erguso/City C erk
July 24, 2017
Date
a
Minutes Continued, July 24, 2017
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
c. Re-Plat Requests:
i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve the re-plat request of Lots 11 & 12, Block 10 of Johnson
Addition to create three tracts, Tract 11-A, Tract 11-B, and Tract 11-C. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
ii. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve the re-plat request of Lots 4 & 5, of Becerra Place to create
two tracts, Tract 4-A, and Tract 4-B. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iii. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Neal to approve the re-plat request of 41-B of Pleasant Home
Addition to create two tracts, Tract 41-B-1, and Tract 41-B-2. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iv. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve the re-plat request of part of Lot 2, Block 16 Range E of Port
Arthur Land Company to create two tracts, Tract 2-A, and Tract 2-B. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
v. A motion was made by Mayor Pro Tem Albanese and seconded by
Councilmember Neal to approve the re-plat request of Lot 14, Block 1 of Hillcrest
Second Addition Acres to create three lots, Lot 1, Lot 2, and Lot 3. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
d. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve an Interlocal Contract with the South East Texas Regional
Planning Commission related to the Planning, Development, Operation, and
Provision of 9-1-1 service and the use of 9-1-1 funds. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
e. Chris Duque, City Manager, reminded council of the TCEQ's Customer Service
Inspection (CSI), which is an unfunded mandate from the state, Mr. Wheeler
mentioned at the Budget Workshop. During this year's water plant inspection, the
TCEQ inspector noted violations concerning the retention of backflow test reports
and/or TCEQ Customer Service Inspections on TCEQ forms for certain business
types. The Water Plant Supervisor and Mr. Wheeler met with TCEQ staff and were
informed 93 locations require a backflow device or CSI. Since Mr. Wheeler's
employment in 2009, he has required new construction permits have the proper
Minutes Continued, July 24, 2017
forms filled out and recorded in each property file. The 93 locations are businesses
built prior to 2009 that did not have a CSI and/or backflow test because these
businesses were built prior to the implementation of these requirements. All 93
locations do not currently have a CSI or backflow device and must be brought up
to code by requiring the businesses to either hire a plumber to perform a CSI on
TCEQ forms and/or require the businesses to hire a plumber to install the device
and hire a certified tester to test the device and log the test information on TCEQ
forms that will be submitted to the City for TCEQ review. No action is necessary.
f. Chris Duque, City Manager, said last month a discussion item on the agenda
provided general direction on the proposed main sewerline repairs/improvement
project. In November 2016, the City engaged Schaumburg &Polk, Inc. to complete
a Wastewater Line Evaluation and TV inspection of approximately 29,400 linear
feet of concrete sewer lines 15" or greater in diameter and flow monitoring. On
April 24th, SPI presented their report with no action taken. Combined, SPI
estimated the cost for all six priority segments was approximately $10.25M. Staff
recommended the City undertake the entire project at one time and City Council
did not object to this approach. Mr. Duque went on to say he and the Finance
Director met with the City's financial advisor, US Capital Advisors, to calculate the
costs of certificates of obligation (CO). Under the "wrapped debt service" 30-year
scenario, funding $10M in COs, the total cost (principal plus interest) is $17.99M.
During the 30-year term, utility rates would have to increase by $5.00 to $5.10 a
month. Under the "level debt service" 30-year scenario, funding $10M in COs, the
total cost (principal plus interest) is $16.57M. During that 30-year term, utility
rates would have to increase by $2.90 to $6.67 with nearly 13 years of that with
an increase of at least $6.00 per month. Due to the Nederland Avenue COs, the
issuance of this debt will be divided into two issuances, one in late 2017 and one
in early 2018. Either scenario will result in a noticeable increase in utility rates.
While the "level debt service scenario results in a greater monthly increase over a
13-year period, the City saves over 1.4M compared to the "wrapped debt service"
scenario and the City would have greater financial flexibility beginning in 2032 to
issue debt for any future potential water/sewer infrastructure projects that become
necessary. Mr. Duque said staff will develop different utility rate adjustment
methods to raise the necessary revenue for the new debt bond payment amount,
which will likely require adjusting the sewer base rate and the sewer maintenance
fee structure. He anticipates presenting the utility rate ordinance at the August
28th Council meeting. No action was necessary.
g. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve a request from Sunoco Partners Marketing Terminals, L.P. to
waive utility charges in the amount of $18,809.38 associated with a water leak.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
h. Chris Duque, City Manager, reported Waleed Kahn is unable to attend the Council
meeting and recommended council go into Executive Session before considering
action on property located at 2423 Nederland Avenue.
i. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve an appeal of the denial of a billboard permit to be located at 1224
S. Twin City Highway. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Minutes Continued, July 24, 2017
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:30 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.071, Consultation with City Attorney.
6. RECONVENE
The regular meeting was reconvened at 5:51 p.m. by Mayor Nugent.
h. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to take no action. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
7. COMMUNICATION:
City Manager's Report:
a. Miscellaneous - Robert Woods, Public Works Director gave a construction update:
• Holmes Road is through the curing process and still has some issues. They
will go back and remove material that didn't pass inspection and use more
conventional materials to stabilize the road. This will overrun the project
budget by approximately 13% or $23,000.00.
• 20th Street and Atlanta asphalt overlay has been completed. The contractor
was a new contractor to Nederland, and staff was happy with the process
and product. Work was completed within a week.
b. Mr. Duque reported the certified values for Nederland were received and are up
2.93% which is over $30M. He said the tax rate should be received by early next
week.
c. Mr. Duque said he will be on vacation next week until August 4th and Cheryl Dowden
will be in charge.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Councilmember Neal to adjourn the meeting at 5:59 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
'11044.
R. A. Nugent, 'or
City of Nederl.rd, Texas
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'•_,. yteContinued, July 24, 2017
G.y Fergus: , City Clerk
City of Nederland, Texas
%4'gON C�
ALLISON NATHAN GETZ �1. TERRY WUENSCHEL
TAX ASSESSOR-COLLECTOR �5 ,y. CHIEF DEPUTY
STATE OF TEXAS
COUNTY OF JEFFERSON
1, Allison Nathan Getz, P.C.C., the Tax Assessor-Collector of Jefferson County, Texas and
also,by contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under
oath, that this amount $66,771.69, represents all taxes collected for CITY OF NEDERLAND
during the month of June 2017.
c'!
Allison Nathan Getz, P.C.C.
JEFFERSON COUNTY COURTHOUSE •P.O.BOX 2112•BEAUMONT,TEXAS 77704-2112
PHONE: (409)835-8516 • FAX: (409)835-8589