December 7, 2015REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. December 7, 2015
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and 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 Councilmember Neal
to approve the Consent Agenda Items a -b as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
a. Minutes — November 16, 2015 regular meeting and November 12, 2015 special
meeting
b. Payments:
• L & D Construction - $119,708.76, Nederland Veterans' Park project
• Schaumburg & Polk, Inc. - $16,099.50, Nederland Avenue Study
• Schaumburg & Polk, Inc. - $4,658.03, 2015 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, Inc. - $1,365.00, South 5th Street Water Tower
Rehabilitation project
• Schaumburg & Polk, Inc. - $1,450.50, South 12th Street Waterline
Relocation project
• Kraftsman, L.P. - $25,868.33, Nederland Veterans' Park project
• L & L General Contractors - $37,118.70, Nederland Veterans' Park project
• Carroll & Blackman, Inc. - $1,054.67, Phase II MS4 Permit Implementation
Services
• Carroll & Blackman, Inc. - $755.50, 2015 GIS Mapping project
4. REGULAR AGENDA
a. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve payment to Bruce's General Construction for the 2015
Concrete Street Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
Minutes Continued, December 7, 2015
b. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Neal to approve Resolution No. 2015-13, ratifying the action of the Nederland
Economic Development Corporation Board of Directors related to the incentive
offered to Tri -City Ventures, LLC. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to authorize the submittal of the Phase II (Small) MS4 Annual Report to
the Texas Commission on Environmental Quality. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
d. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to authorize the solicitation of bids for the Nederland Service Center
project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
e. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to approve Ordinance No. 2015-25, approving the Texas Gas Service
Company's request that the operation of the TGS' Gas Reliability Infrastructure
Program rates be suspended. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
f. Chris Duque, City Manager, reported the adoption of HB 910 or the "Open Carry
Law" by the State Legislature, would make it necessary for Nederland City Council
to discuss any legal prohibitions of the open carry law at city facilities, specifically
during City Council meetings and at the Municipal Court building. He added there
is an Attorney General opinion pending. Mr. Duque stated the law now prohibits
guns in municipal court and at elections polling places. The city has the discretion
to not allow guns on city property as long as it is posted properly.
Jesse Branick, City Attorney, suggested waiting for the Attorney General's opinion
since the law does not go into effect until January 1, 2016.
g. A motion was made by Councilmember Belaire and seconded by Mayor Pro Tem
Albanese to approve a spay and neuter program policy. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:06 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.074, Personnel - City Manager.
Minutes Continued, December 7, 2015
6. RECONVENE
The regular meeting was reconvened at 5:51 p.m. by Mayor Nugent. He announced
the Executive Session was held for informational purposes only and no action is
necessary.
7. COMMUNICATION,
City Manager's Report:
a. 2nd December City Council Meeting - Monday, Dec. 14th
b. Miscellaneous
S. AD30URN
There being no further business a motion was made by Mayor Pro Tern Albanese and
seconded by Councilmember Austin to adjourn the meeting at 5:54 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
R. A. Nugent, May
City of Nederlanyexa�s
AqTEST:
day Fergkon, City rk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME
TITLE
PRESENT ABSENT
R. A. Nugent
Mayor
/
Talmadge Austin
Council Member —Ward I
V
Billy Neal
Council Member — Ward II
V
V
Don Albanese
Council Member — Ward III
Craig Belaire
Council Member— Ward IV
Chris Duque
City Manager
Gay Ferguson
City Clerk
V
Jesse Branick
City Attorney
V
Cheryl Dowden
Director of Finance
v
Darrell Bush
Police Chief
V
Gary Collins
Fire Chief
Steve Hamilton
Director of Public Works
V
George Wheeler
Building Official
V
Victoria Klehn
Librarian
Holly Guidry
Human Resources Director
v
Joni Underwood
Executive Secretary
v
Angela Fanette
Parks Director
R. A. Nugent,
erguson,
December 7. 2015
Date
ORDINANCE NO. 2015-25
ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS APPROVING THE
TEXAS GAS SERVICE COMPANY'S REQUEST
THAT THE OPERATION OF THE TEXAS GAS
SERVICE COMPANY'S GAS RELIABILITY
INFRASTRUCTURE PROGRAM (-GRIP") RATES
BE SUSPENDED BECAUSE A RATE CASE WILL
BE FILED WITH THE CITY LATER THIS YEAR;
FINDING THAT THE MEETING COMPLIES
WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT
WHEREAS, on or about November 20, 2015, Texas Gas Service Company ("TGS"
or "Company") filed an Annual GRIP adjustment for the South Jefferson County Service
Area with the City of Nederland ("City") to suspend the operation of the interim rate
adjustment in the South Jefferson County Service Area pursuant to Gas Utility Regulatory
Act, TEX. UTIL. CODE ("Gas Utility Regulatory Act") § 104.301; and
WHEREAS, the Company's proposed an effective date of January 19, 2016, for the
interim rate adjustment filing; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Gas Utility Regulatory Act
§ 103.001; and
WHEREAS, Gas Utility Regulatory Act § 104.301 requires a streamlined process for
the recovery of the costs of incremental investment by a gas utility; and
WHEREAS, the Company has announced the intent to file a base rate proceeding
before the end of 2015. making the implementation of TGS' GRIP interim rate
unnecessary; and
WHEREAS, the reasonableness of the Company's investments will be reviewed in
TGS' subsequent base rate case which the Company proposes to file by year end where
all costs included in TGS' prior GRIP filings will be subject to refund.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, THAT:
Section 1. That the statement and findings set out in the preamble to this
ordinance are hereby in all things approved and adopted.
Section 2. The effective date of January 19, 2016 proposed by the Company is
approved.
Section 3. The Company's request to suspend the operation of the interim
rate adjustment is hereby approved and TGS customers will experience no rate change as
a result of this Annual GRIP adjustment filing.
Section 4. The meeting at which the ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section S. This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 71 day of DECEMBER, 2015.
Nugent, Mayor
i itv o
ty f Nederland, Texas
ATTEST:
ay lergAon, k'- City -cury
City of Nederland,
APPROVED AS TO FORM AND LEGALITY:
NZ
-" �7�
Jess rani , Ci y Attorney
less rani
Hand, Texas
THE LAWTON LAW FIRM, P.C.
12600 I Iill Country Blvd., Suite R-275 - Austin, Texas 78738 - 512/322-0019 - Fax: 8551298-7978
November 30, 2015
Via L -Mail
Mr. James Black
City Attorney — City of Groves
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
Mr. Jesse Branick
City Attorney — City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
Ms. Val Tizeno
City Attorney — City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Pete Steele
City Attorney — City of Port Neches
3120 Central Mall Drive
Port Arthur, Texas 77642
hS1WOM
City Manager — City of Groves
P.O. Box 3286
Port Arthur, Texas 77643
Mr. Christopher Duque
City Manager — City of Nederland
P.O. Box 967
Nederland, Texas 77627
Mr. Brian McDougal
City Manager — City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Andre Wimer
City Manager — City of Port Neches
634 Avenue C
Port Neches, Texas 77651
Re: Texas Gas Service F'ilinE in Comnliance with Texas Utilities Code Section
104.301 and Citv Rate Ordinance Approving Suspension of Interim Rates`
Dear Cities:
As you may recall on November 20, 2015, Texas Gas Service Company ("TGS" or
"Company") filed a Gas Reliability Infrastructure Program ("GRIP") adjustment factor with each
of your communities in the South Jefferson County Service Area. TGS is authorized to make
annual GRIP rate change requests pursuant to Texas law passed in 2003, Gas Utility Regulatory
Act, TEx. UTIL. CODE § 104.301 ("GRIP Statute"). The GRIP Statute authorizes gas utility
companies to request annual cost increases associated with year-to-year changes in incremental
investment. The changes in investment are not subject to reasonableness review in the GRIP
filing. Instead all amounts collected under a GRIP filing are considered interim rates subject to
complete review, reconciliation, and refund in the Company's next base rate proceeding.
Thus, because these GRIP rates are temporary rates subject to complete review in the next rate
case, Cities rate authority is limited in GRIP cases. The review process of a GRIP filing is
generally a ministerial review limited to ensuring that the GRIP filing complies with the GRIP
Statute. See Atmos Energy Corp. v. Cities of Allen, 353 S.W. 3d 156 (Tex. 2011).
In this case, TGS does not propose to adjust rates and tariffs through the annual GRIP
compliance filing. Instead, the Company proposes that the interim rate adjustment be suspended
because TGS will file a base rate case later this year. The approval of the requested GRIP
suspension request results in customers experiencing no rate change from this GRIP filing.
Attached is a Rate Ordinance for your review approving the TGS request to suspend
operation of the interim rate adjustment for this year. The City must act on this Rate
Ordinance prior to January 19, 2016.
If there are any questions or cone
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