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2012(I i REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p. m. January 9, 2012 MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Neal to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. ' Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. a. Minutes—December 19, 2011 regular meeting b. December 2011 Departmental Reports c. Payments: • Walker Partners - $7,130.87, 2010 Water Improvements project • Schaumburg & Polk, Inc. - $8,275.35, 18`h Street Water Line Evaluation • Schaumburg & Polk, Inc. - $4,972.50, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $6.270.86, 2011 Wastewater Line Replacement project • Carroll & Blackman, Inc. - $1,729.33, Phase II MS4 Permit Implementation Services • Allco, Inc. - $136,681.80, 2009 Sewer Rehabilitation project 4. REGULAR AGENDA a. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve an Interlocal Agreement with the Cities of Port Neches and Groves regarding participation in the ShopsQA Community Business Portal. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. b. A motion was made by Councilmember Austin and seconded by Councilmember Neal to set February 13, 2012 at 4:30 p.m. for a Public Hearing to receive comments regarding a Specific Use Permit for 2423 Nederland Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. of Minutes Continued, January 9, 2012 Noes: None. c. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember ' Albanese to approve Ordinance No. 2012-01, amending Fiscal Year 2011-2012 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. d. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve Resolution No. 2012-01, authorizing participation with other Entergy service area cities in matters concerning Entergy Texas, Inc. at the Public Utility Commission of Texas and the Federal Regulatory Commission in 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. 6. COMMUNICATIONS City Manager's Report: a. Drought Contingency Plan. Chris Duque reported that the City has implemented the LNVA Drought Surcharge at the Stage III level. He went on the say that due to recent rains that the Sam Rayburn Reservoir has steadily increased and if this level remains in the next 2 weeks they go to Stage II level. However, LNVA still anticipates reaching Stage IV this summer as conditions are not forecast to improve. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 4:52 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 9141)1&e� R. A. Nugent,Ti yor City of Nederl d, Texas ATTEST: Gay Ferd son, Cityerl k City of Nederland, Texas 1 1 A 1 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor Talmadge Austin Council Member — Ward I Billy Neal Council Member — Ward II Don Albanese Council Member — Ward III V Bert Rogers Council Member — Ward IV Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance V Darrell Bush Police Chief Gary Collins Fire Chief +� Steve Hamilton Director of Public Works v v George Wheeler Building Official / Victoria Klehn Librarian V Emily Melancon Human Resources Director Joni Underwood Executive Secretary V �i A. Nugen , yor G y ergus ity Clerk I January 9. 2012 Date 003 6i3Ol L) ORIGINAE Interlocal Agreement WHEREAS, the City of Port Neches, Texas, by and through its City Council as authorized by Chapter 791, Texas Government Code, and the City of Nederland, Texas, and the City of Groves, Texas, for the mutual benefit of the citizens they serve, desire to enter into a contract to provide certain services to each other; and WHEREAS, the City of Port Neches has approved an agreement with WEBQA, Inc. for a period of three (3) years, December 15, 2011 — December 14, 2014, for purposes of implementation of the ShopsQA Community Business Portal and associated modules; and WHEREAS, the cost for the ShopsQA Community Business Portal and associated modules includes a one-time cost of $1,500.00 and a monthly cost of $450.00, and such costs are billed on an annual basis. NOW, THEREFORE, the City of Port Neches, the City of Nederland, and the City of Groves agree as follows: 1. The City of Port Neches, the City of Nederland, and the City of Groves shall jointly participate in the ShopsQA Community Business Portal and associated modules for the duration of the agreement between the City of Port Neches and WEBQA, Inc. 2. The cost of the one-time fee of $1,500.00 shall be shared equally, $500.00 per city. 3. The cost of the monthly fee of $450.00 shall be shared equally, $150.00/month/city. 4. The City of Port Neches, upon receipt of a statement from WEBQA, Inc., shall invoice the City of Nederland and the City of Groves for their portion of these costs, and the City of Nederland and the City of Groves shall remit payment to the City of Port Neches within 30 days of the invoice date. 5. Should the City of Nederland and/or the City of Groves decide to discontinue participation in the ShopsQA program at the conclusion of the term of the agreement, the City of Nederland and/or the City of Groves shall notify the City of Port Neches in writing at least ninety (90) days prior to the expiration date (December 14, 2014) of the agreement. 6. Should the City of Port Neches decide to not renew the agreement with WEBQA, Inc., the City of Port Neches shall notify the City of Nederland and the City of Groves in writing at least ninety (90) days prior to the expiration date (December 14, 2014) of the agreement. 7. This Interlocal Agreement shall become effective December 15, 2011. ' EXECUTED this 15`h day of December, 2011. ATTEST: Yity mlF, VDUB �v& , Louviere, City Secretary f Port Neches CITY OF PORT NECHES ;0 t, 6 Glenn Joh ayor City of P rt eches EXECUTED this day of 202— ATTEST: ICITY OF NEDERLAND i�l—rl a IM -PAI � GaFFergusMi, City Cle City of Nederland EXECUTED this day of ATTEST: Kimberly Butler, City Clerk City of Groves & I /,/V/l R. A. "Dick" Nu nt, Mayor City of Nederland , 2011. CITY OF GROVES Brad Bailey, Mayor City of Groves 6 ::l 7 0;16 ORDINANCE NO. 2012-01 ' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND AMENDING THE FISCAL YEAR 2012-2012 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2011-12 which adopted the Fiscal Year 2011-2012 City Budget; and, WHEREAS, the City Council deems it necessary to amend the current budget to adjust revenues and expenditures as set out in Attachment "A" attached hereto; and, WHEREAS, the 2011-2012 City budget states "That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2012 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2011 and ending September 30, 2012, 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 2011-2012 is amended to allow for adjustments in revenues and expenditures as set out in Attachment "A," THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. ' THAT the City Clerk shall file a true copy of this ordinance and said budget amendment with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 9' DAY OF JANUARY, 2012. R. A. Nugent, or City of Nederland, Texas ATTEST: G"Ferg., City Clerl, APPROVED AS TO FORM AND LEGALITY: J sse Bra i City Attorney , 1 1 TOTAL 125,000.00 125,000.00 JUSTIFICATION Following the success of the Swimming Pool and internal control issues identified by the Finance Dept and Parks Supervisor, Extra Help funds would be utilized to hire a "Pool Supervisor" to oversee the part-time lifeguards and cashiers. Funds from Special Programs are available as anticipated expenses have thus far come underbudget. The Pool Supervisor position will cost approximately S15K to $18K; with the additional $6000, the Extra Help line -item should have sufficient funds for the summer pool season. Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of CITY OF NEDERLAND ; i; 7 BUDGET AMENDMENT REQUEST 'FISCAL YEAR: 2011-2012 DATE: January 9, 2012 DEPARTMENT: Parks & Recreation / Other FUND: GENERAL AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET ,01-9000-6400 Special Proqrams 45,000.00 (6,000.00) 39,000.00 01-5100-6115 Extra Help 80,000.00 6,000.00 86,000.00 1 TOTAL 125,000.00 125,000.00 JUSTIFICATION Following the success of the Swimming Pool and internal control issues identified by the Finance Dept and Parks Supervisor, Extra Help funds would be utilized to hire a "Pool Supervisor" to oversee the part-time lifeguards and cashiers. Funds from Special Programs are available as anticipated expenses have thus far come underbudget. The Pool Supervisor position will cost approximately S15K to $18K; with the additional $6000, the Extra Help line -item should have sufficient funds for the summer pool season. Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of RESOLUTION NO. 2012-01 A RESOLUTION OF THE CITY COUNCIL OF NEDERLAND, TEXAS, ' AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE AREA CITIES IN MATTERS CONCERNING ENTERGY TEXAS, INC. AT THE PUBLIC UTILITY COMMISSION OF TEXAS AND THE FEDERAL ENERGY REGULATORY COMMISSION IN 2012 WHEREAS, Entergy Texas, Inc: s ("ETI") implementation of customer choice has ceased due to Senate Bill 1492 and ETI will continue to be regulated; WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate proceedings will have a direct impact on ETI and customer bills during the year and into the future; WHEREAS, ETI is scheduled to litigate requests in various proceedings before the Public Utility Commission, before municipalities, or before the Federal Energy Regulatory Commission in 2012 related to various fuel cost surcharges and reconciliations, capacity cost surcharges and reconciliations; and for any type of incremental base rate adjustment proceedings or a cost allocation adjustments; WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility Commission in February and August 2011, and file other fuel proceedings during 2012 to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism, along with various surcharge requests impacting rates; WHEREAS, ETI is scheduled to file a proceeding to determine the proper Texas , allocation of rough production cost equalization payments from Entergy Arkansas to be refunded to Texas customers; WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in association with its Energy Efficiency Plan; WHEREAS, Cities have the statutory right to set fair and reasonable rates for both the Company and ratepayers within Cities; WHEREAS, Cities have original jurisdiction over rates, operations, and services of an electric utility in areas in the municipality pursuant to Tex. Util. Code § 33.001; 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 standing before each Federal Energy Regulatory Commission case in which the City may be affected pursuant to 18 C.F.R. § 385.214; 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: SECTION 1. The City of Nederland, Texas shall participate with other Cities to intervene in ETI's various rate filings related to the various fuel cost surcharges and ' reconciliations, capacity cost surcharges and reconciliations, the allocation and refund of rough production cost equalization payments, and for any base rate adjustment proceedings or cost of service adjustments on file with the Public Utility Commission or with municipalities in 2012 and seek appropriate regulatory scrutiny in any case on file at the Federal Energy Regulatory Commission affecting the City and its residents. ' The City of Nederland, Texas shall participate with other Cities to intervene in fuel or fuel related proceedings at the Public Utility Commission and the Federal Energy Regulatory Commission on file in 2012 concerning ETI's rates charged to Texas customers. 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 2. This Resolution shall be effective from and after the date of its passage. PASSED AND APPROVED by the City Council of the City of Nederland, Texas, this the 9"' day of January 2012. ?Wwjw� R. Ougent, Mayor City of Nederland, Texas ' ATTEST: GayGay F�n, City Clerk) City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: V nick, City Attorney ederland, Texas 010 SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 3:30 p.m. January 23, 2012 ' 1. MEETING The special meeting was called to order at 3:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. STREET PROGRAM Chris Duque, City Manager, reviewed the proposed 2012 Street Program. The budget for the upcoming street program is $225,000.0 from the general fund and $551,000.00 from the street tax. Mr. Duque added that the proposed street program was being budgeted conservatively but could be amended as funds become available. Mr. Duque reported that City staff is recommending Avenue H from Twin City to the Nederland city limits. This project would be in conjunction with Jefferson County and the City of Port Neches. The County has volunteered county engineers to do the engineering work and to formally bid the project. The bid would be itemized to detail the City of Nederland's portion of the cost and the work would be performed to city standards. Mr. Duque advised that Schaumburg & Polk, Inc. was engaged in October to evaluate ' additional water line projects to be undertaken with remaining water bond funds. The top priority identified was 18th Street. The concrete road can be addressed due to the fact that to repair the water line, the concrete street will have to be destroyed. He said that the work would have to begin right after school ends in order to be substantially completed by the beginning of the new school year. Mr. Duque stated that the remaining funds to finish out the street program would be used to chip seal S. 11th Street, 10 t/z Street, 10th Street, Avenue E from 11th to S. 6" Street, S. 12th Street from Avenue H to Avenue B, 25th Street from Nederland Avenue to Avenue H; and crack seal Boston Avenue from 15th Street to 17th Street and 17th Street from Nederland Avenue to Detroit Avenue. 3. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Neal to adjourn the meeting at 4:27 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugen, ayor City of Nede and, Texas ' Minutes Continued, January 23, 2012 ATTEST: Ga erguso City Clerk City of Nederland, Texas 1 1 George Wheeler Building Official Victoria Klehn Librarian CITY OF NEDERLAND Human Resources Director Joni Underwood COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor Talmadge Austin Council Member — Ward I Billy Neal Council Member— Ward II Don Albanese Council Member — Ward III Bert Rogers Council Member — Ward IV v Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief Gary Collins Fire Chief Steve Hamilton Director of Public Works V George Wheeler Building Official Victoria Klehn Librarian Emily Melancon Human Resources Director Joni Underwood Executive Secretary 8 yh1v1,11&,4 R. A. ugen , yor dayo ,tu��ixl�/� FergdVon, City Cie January 23. 2012 Date 013 REGULAR MEETING OF THE CITY COUNCIL OF THE ' CITY OF NEDERLAND 4:30 p.m. January 23, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. a. Minutes— January 9, 2011 regular meeting b. December 2011 Departmental Reports c. Financials: Tax Assessor Collection Report - December 2011 4. REGULAR AGENDA a. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to authorize the closure of various streets for the Nederland Heritage Festival activities. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. b. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to authorize the submission'of a grant application to the Foundation for Southeast Texas. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. c. A motion was made by Councilmember Albanese and seconded by Councilmember Neal to authorize the Jefferson County Mosquito Control District to fly at low altitudes as required for the application of pesticides for the control of mosquitoes within the city limits of Nederland. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. QAtes Continued, January 23, 2012 d. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to re -appoint Brent Weaver, Marty Byrd, and Sylvia Root to the Parks Advisory Board. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. ' Noes: None. e. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve the re -zoning of a 156.08 Ac. Tract known as Airport Business Park Subdivision from "R-1", Single -Family Residential District to "I-1", Light Industrial Park. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. f. Chris Duque, City Manager, reported that 2011 certificates of obligation in the amount of 4.5 million dollars were issued for the Water Plant Repairs/Improvements project. The water treatment plant project bid was significantly underbudget so staff began to evaluate other water -related projects. The first priority was the water line on 18th street. The City engaged Schaumburg & Polk, Inc. to assess this water line and subsequent necessary concrete road repairs. Staff recommends the 18th Street Water Distribution Line repair project as the second 2011 certificates of obligation project. The evaluation work completed by SPI included an assessment of water distribution lines in need of repair due to the type of material or noted problems, as well as crossing at rails or highways. Staff recommends allocating the remaining funds to address the isolation valves on the water line crossing major thoroughfares and rail crossings and the replacement of older line segments. g. A motion was made by Councilmember Austin and seconded by Councilmember ' Albanese to approve an engineering services contract with Schaumburg & Polk, Inc. for the 18th Street water distribution line repair project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. h. A motion was made by Councilmember Neal and seconded by Councilmember Austin to authorize a Request for Qualifications for engineering services related to a water distribution line replacement/improvements project funded by the 2011 certificates of obligation. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. 5. EXECUTIVE SESSION The regular meeting was recessed at 4:57 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 5:20 p.m. by Mayor Nugent. He announced ' that the Executive Session was held for informational purposes only and no action is necessary. A Special Call City Council meeting is scheduled for January 30, 2012 at 4:30 p.m. Minutes Continued, January 23, 2012 015 7, COMMUNICATIONS City Manager's Report: a. Construction Project Update: Steve Hamilton reported that the sewer project is close to completion. He also advised that work at the Water Plant is going as expected. Contractor has dug holes to figure what they had and a plan has been developed. They began laying pipe on 22nd Street and are waiting on pumps to be delivered. S. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Neal to adjourn the meeting at 5:25 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugen, ayor City of Ned and, Texas I ATTEST: bo- Gay Fergus�,Cily Clerk City of Nederland, Texas 016 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor V/ Talmadge Austin Council Member - Ward I ' V ✓ Billy Neal Council Member - Ward II V Don Albanese Council Member -Ward III Bert Rogers Council Member -Ward IV �✓ Chris Duque City Manager Gay Ferguson City Clerk V Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief ,V Gary Collins Fire Chief Steve Hamilton Director of Public Works ✓ George Wheeler Building Official Victoria Klehn Librarian ✓ Emily Melancon Human Resources Director �✓ Joni Underwood Executive Secretary ✓ R. A. Nubeni, Ma r hM_A A,L ay Fer son, Citi7tabIrf January 23, 2012 Date 1 ABSENT 1 1 1 u 1 J. SHANE HOWARD TAX ASSESSOR-COLLF,CTOR STATE OF TEXAS COUNTY OF JEFFERSON SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $1,543,046.74, represents all taxes collected for CITY OF NEDERLAND during the month of December 2011. J. Shane Howard JEFFERSON COUNTY C013RTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 0 1 '7 Jefferson County Mosquito Control District Organized in 1950 Kevin J. Sexton, Director I 8905 First Street ► / Beaumont, Texas 77705 Phone: (409)719-5940 Fax: (409)727-4176 /y ksexton@co.iefferson.tx.us January 3, 2012 AERIAL WAIVER Mayor's Office City of Nederland P.O. Box 967 Nederland, TX 77627 Advisory Commission: Dr. M.O. Way, Chairman Denise Wheeler, Secretary George Mitchell PautJones Wayne Morris Matt Vincent The Jefferson County Mosquito Control District is authorized to fly at tow altitudes as required for the application of pesticides for the control of mosquitoes within the limits of City of Nederland, Texas. Jefferson County Mosquito Control operates in accordance with all Federal and State Rules and Regulations governing this type of application. Signature: 1 Mayor's Office y of Nederland, Texas Date: 1—��` nru �3,aQla- Jerry Hinson, Chief Pilot Jefferson County Mosquito Control District JWH/dw 1 1 1 1 1 Jefferson County Mosquito Control District Organized in 1950 Kevin J. Sexton, Director Advisory Commission: 8905 First Street 1 / Dr. M.O. Way, Chairman Beaumont, Texas 77705 Denise Wheeler, Secretary Phone: (409) 719-5940 George Mitchell Fax: (409) 727-4176// Paul Jones ksexton@co.iefferson.tx.us �7- Wayne Morris Matt Vincent January 3, 2012 Mayor's Office City of Nederland P.O. Box 967 Nederland, TX 77627 Dear Mayor: Each year the Jefferson County Mosquito Control District requests the governing bodies of the different communities in Jefferson County to furnish a waiver permitting the Mosquito Control aircraft to fly at low altitudes over the territory under their jurisdiction. It is respectfully requested that the City Council sign the enclosed waiver granting permission for the Jefferson County Mosquito Control District to operate aircraft over the City of Nederland for mosquito control purposes. Federal Regulations places the responsibility of maintaining all records and complying with all rules and regulations upon the operator of the aircraft. This file is open at all times for inspection. We furthermore request that you please mail or fax over the signed copy of the waiver to the number listed above. If at any time you may have any questions, please contact Jerry Hinson, Chief Pilot or Kevin J. Sexton; Director for assistance. Cc: County Judge Jeff Branick, Jefferson County Commissioner Eddie Arnold, Precinct 1 Commissioner Brent Weaver, Precinct 2 Commissioner Michael Sinegal, Precinct 3 Commissioner Everett Alfred, Precinct 4 Respectfully yours, Jerry Hin hief Pilot 019 SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 a.m. 3anuary 30, 2012 1. MEETING The special meeting was called to order at 4:30 a.m, by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. REOEUST Chris Duque, City Manager, advised that Sunoco Partners Marketing and Terminals, L.P. submitted an ad valorem tax abatement request for: Asset 2 - 600,000 BBL Tanks (#1568 & #1569) 600,000 BBL Tank (#1570) 600,000 BBL Tank (#1571) In -Line Blender Ship Dock Oil Off-Loadinq Facility Operational Connectivity - Tank #1543 Pipinq System Projected Cost $20,000,000 10,000,000 8,000,000 81500,000 125,000 950,000 1,500,000 1,400,000 He stated that according to the requirements of the Industrial District Agreement, that only two of these projects were eligible for tax abatement; Operational Connectivity Tank 1543 and Ship Dock. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve the request from Sunoco Partners Marketing and Terminals, L.P. on Operational Connectivity Tank 1543 and Ship Dock for an ad valorem tax abatement. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. 3. EXECUTIVE SESSION Mayor Nugent announced that it would not be necessary to conduct the scheduled Executive Session. 1 1 1 4. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 4:39 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ATTEST: AA, Gay Fergu on, City Clerkr City of Nederland, Texas 1 1 �t R. A. Nugent ayor City of Nede and, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT 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 V Bert Rogers Council Member— Ward IV Chris Duque I City Manaqer V, I Gay Ferguson City Clerk " Jesse Branick City Attorney Cheryl Dowden Director `V/ of Finance V Darrell Bush I Police Chief Gary Collins I Fire Chief Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian Emily Melancon Human Resources Director / Joni Underwood Executive Secretary R. A. Nugent, Mar r Gay Ferg on, City Clerk January 30, 2012 Date ABSENT 1 1 1 00002.3 REGULAR MEETING OF THE CITY COUNCIL OF THE ' CITY OF NEDERLAND 4:30 p.m. February 13, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE. The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -c as presented. MOTION ' CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—January 23, 2012 regular; January 23, 2012 special; and January 30, 2012 special meetings b. January. 2012 Departmental Reports c. Payments: • January 2012 monthly bills • Walker Partners - $2,986.44, 2010 Water Improvements project • Schaumburg & Polk, Inc. - $2,917.50, 18th Street Water Line Evaluation • Schaumburg & Polk, Inc. - $8,840.86, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $4.230.00, 2011 Wastewater Line Replacement project • Carroll & Blackman, Inc. - $832.67, Phase II MS4 Permit Implementation Services • Allco, Inc. - $205,975.08, Nederland Water Treatment Plant Repairs/Improvements project • Allco, Inc. - $79,234.40, 2009 Sewer Rehabilitation project 4. REGULAR AGENDA a. The regular meeting was recessed and a Joint Public Hearing was called to order at 4:34 by Mayor Nugent for the purpose of receiving comments and/or questions regarding the requested issuance of a Specific Use Permit for the property located at 2423 Nederland Avenue. 000024 Minutes Continued, February 13, 2012 Chris Duque, City Manager, advised that the Owner, Waleed A. Khan, of 2423 ' Nederland Avenue has submitted a request for a Specific Use Permit for the construction of gasoline pumps to be utilized for the retail sell of automobile gasoline. The property is zoned Neighborhood Retail and a convenience store with gas pumps is only allowed in this district's zoning with a specific use permit. He added that this requirement was implemented during the 2010 zoning ordinance process to protect residential neighborhoods abutting commercial property. This public hearing will allow interested parties to voice comments, concerns, questions, etc. No action is necessary. Mr. Kahn arrived to the meeting at 4:38 and stated that he submitted plans to the Building Official for a commercial building to be used for a convenience store and a separate tenant space to be used as lease space under one roof. He added that he was in final negotiations to sell gasoline at this location with a total of 3 to n ks. George Wheeler, Building Official, stated that TCEQ would have to approve the installation of the tanks. He also added that he is recommending the following conditions being attached to the permit: 1) the existing damaged sign pole to be removed; 2) the installation of landscaping at minimum fifty (50) square feet in the front and thirty (30) square feet on the side abutting S. 25th Street; 3) all outside storage and trash dumpster shall be concealed from visibility by a solid fence; and 4) a six (6) foot solid wooden fence shall be erected across the rear property line and maintained by the business owner. Mr. Wheeler said that other conditions may be added when Planning & Zoning commissioners hear the case ' at their meeting scheduled for March 6, 2012. There being no further questions and/or comments, the Public Hearing was adjourned and the regular meeting was reconvened at 4:46 by Mayor Nugent. b. Gary Graham of Walker Partners was present to provide an update of the "Nederland Water Treatment Plant Repairs/Improvements" project. He reported that the Notice to Proceed was issued mid November and construction began around the first of December. The filter building has been painted and installation of the water line began after the first of the year. He added that construction was going well and that they expected it to continue to go well. All the equipment with long delivery times has been ordered. C. Chris Duque, City Manager, reported that during construction some issues were identified and the contractor and engineer are recommending a three-part change order to the original contract. It includes 1) add work and materials to replace the section of 18" water transfer pipe that contains the tee fittings for the high service pumps being removed, 2) add a manhole with ring and cover to house the 18" x 12" tee previously located in the existing control value unit, and 3) add Mega Lug gelled pipe joint restraints. Gary Graham advised that the job can be done without the change order; however, it would be an improvement to the job that is well worth the expenditure of funds if approved. ' A motion was made by Councilmember Neal and seconded by Councilmember Austin to approve Change Order No. 1 - Nederland Water Treatment Plant Repairs/Improvements project (+39,152.00). MOTION CARRIED. Minutes Continued, February 13, 2012 0C)n n j ' Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. Grants i. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Rogers to authorize the submittal of a 2011 Staffing for Adequate Fire and Emergency Response (SAFER) grant to the U. S. Department of Homeland Security. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to authorize the submittal of a 2007 Port Security Grant program application. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve Resolution No. 2012-02, calling for an election to be held on May 12, 2012 for the purpose of electing a Mayor and two Councilmembers; one from Ward II; and one from Ward IV. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve Ordinance No. 2012-02, amending the Fiscal Year 2011-2012 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. Bids i. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to authorize the solicitation of bids to establish unit pricing of "Water Inventory Items." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Councilmember Neal to authorize the purchase of a passenger van for the Nederland Police Department via HGAC, Buy Board, or state -approved contract. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a request from Sunoco Partners Marketing & Terminals L.P. for an ad valorem tax abatement. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. i. Chris Duque, City Manager, reported that over the past 2 years, the City has reviewed its retiree health insurance benefit with the help of a five -member Minutes Continued, February 13, 2012 employee Retiree Insurance Committee (RIC). The RIC members unanimously ' recommended revisions to the policy that include: 1) "unblending health insurance plans; active employees will be on one plan while retirees will be placed in a pre -65 retiree pool; 2) adjusting the current sliding scale benefit to a flat -rate contribution; 3) providing additional assistance to current retirees to cushion the impact of the premium increase resulting from unblending; 4) adjusting eligibility requirements; and 5) utilization of an ICMA product to set aside funds for retiree insurance for employees hired after July 1, 2012. This is a discussion item only. Councilmember Neal stated that we need to take care of the retirees all that we can. Mr. Duque asked what direction the Council would like to take. The concensus of Council members was not to take action at this time but to instruct the Wells Fargo Group to get bids based on the premise of the outline (unblended) and the way it is now (blended). Mayor Pro Tem Rogers stated that the work was good that the committee developed and suggested that a meeting be scheduled with all the retirees who will be affected. EXECUTIVE SESSION The regular meeting was recessed at 6:00 p.m. by Mayor Nugent for the purpose of ' conducting an Executive Session as authorized by Texas Government Code, Chapter 551.074, Discuss Personnel - City Manager. 6. RECONVENE The regular meeting was reconvened at 6:25 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATIONS City Manager's Report: a. Drought Contingency Plan - Considerable rainfall has reduced the severity of the on-going drought. LNVA downgraded the drought contingency plan to Stage II and the Utility Billing staff has been instructed to reduce the surcharge to State II fee. LNVA may be downgrading to Stage 1 by next month which would suspend the surcharge. b. Hooked on Fishing, Not on Drugs event hosted by Nederland Rotary will be on February 18, 2012 at Doornbos Park beginning at 9:00 a.m. c. City offices will be closed on Monday, February 20`h in observance of President's Day. Solid waste service will be delayed one day during the week. 00411''7 S. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded ' by Councilmember Albanese to adjourn the meeting at 6:30 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ATTEST: kol I -a, mrllw //) /` t - ay Ferg on, ity de < City of Nederland, Texas 1 1 R. A. Nugen-t ayor City of Nederland, Texas DOG CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT V/ R. A. Nugent Mayor V Talmadge Austin Council Member — Ward 1 V Billy Neal Council Member — Ward II Don Albanese Council Member —Ward III V Bert Rogers Council Member — Ward IV Chris Duque City Manager ✓ Gay Ferguson City Clerk Jesse Branick City Attorney ✓ V Cheryl Dowden Director of Finance C/i ✓ -Darxegaush u (gym PIK Police Chief Gary Collins Fire Chief V/ Steve Hamilton Director of Public Works George Wheeler Building Official V Victoria Klehn Librarian Emily Melancon Human Resources Director Joni Underwood Executive Secretary A, h R. A. Nugent, Ma r Gly Ferguibn, City Clerk February 13. 2012 Date ABSENT 1 1 1 11 009,029 ORDINANCE NO. 2012-02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND AMENDING THE FISCAL YEAR 2011-2012 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2011-12 which adopted the Fiscal Year 2011-2012 City Budget; and, WHEREAS, the City Council deems it necessary to amend the current budget to adjust revenues and expenditures as set out in Attachment "A" attached hereto; and, WHEREAS, the 2011-2012 City budget states 'That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2012 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2011 and ending September 30, 2012, 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 2011-2012 is amended to allow for adjustments in ' revenues and expenditures as set out in Attachment "A." THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. THAT the City Clerk shall file a true copy of this ordinance and said budget amendment with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 13"' DAY OF FEBRUARY, 2012. R. A. Nu ent, ayor City of Nede and, Texas ATTEST: GPyFjerguln, City Clerk APPROVED AS TO FORM AND LEGALITY: 7 Br j, City Attorney 000030 CITY OF NEDERLAND BUDGET AMENDMENT REQUEST FISCAL YEAR: 2011-2012 DATE: February 13, 2012 DEPARTMENT: Information Technoloqy FUND: MCML Dispatch Fund (70) TOTAL 120,300.00 23,729.10 144,029.10 JUSTIFICATION Funds were allocated for the contractinq of I.T. computer assistance to ease the Mr. Spell's overworked schedule. The mid -county city manaqers with Mr. Spell's input believe the hirinq of an entry-level full-time "Computer Support Specialist". The new position is necessary to keep up with the technology needs of the 3 cities, which has qrown tremendously in the past 3-5 years. The Dispatch Fund fund balance has sufficient funds to cover this expense with proper funding in FY 2012-2013. Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of 1 J AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 70-1700-6110 Salaries & Wages 82,460 18,227 100,687 70-1700-6121 Group Insurance 12,510 12,099 24,609 70-1700-6124 TMRS 8,970 1,969 10,939 70-1700-6126 Social Security 6,180 1,394 7,574 70-1700-6128 Worker's Compensation 180 39 219 70-1700-6393 Contractual Services 10.000 (10,000) - TOTAL 120,300.00 23,729.10 144,029.10 JUSTIFICATION Funds were allocated for the contractinq of I.T. computer assistance to ease the Mr. Spell's overworked schedule. The mid -county city manaqers with Mr. Spell's input believe the hirinq of an entry-level full-time "Computer Support Specialist". The new position is necessary to keep up with the technology needs of the 3 cities, which has qrown tremendously in the past 3-5 years. The Dispatch Fund fund balance has sufficient funds to cover this expense with proper funding in FY 2012-2013. Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of 1 J CITY OF NEDERLAND `FISCAL YEAR: 2011-2012 BUDGET AMENDMENT REQUEST DATE: February 13, 2012 DEPARTMENT: Equip Replacement - General FUND: EQUIPMENT REPLACEMENT (34) ACCOUNT NO. ACCOUNT TITLE 34-0000-6742 Motor Vehicles 1 CURRENT BUDGET 138, 000.00 TOTAL 138,000.00 JUSTIFICATION AMOUNT INCREASE (DECREASE) 33.000.00 33,000.00 OMI'31 PROPOSED BUDGET 171,000.00 171,000.00 Additional funds are necessary to fund the purchase of a new passenger van for the NPD federal prisoner crew. The current van is I I years old, in poor condition, and requires costly repairs; therefore it is more cost effective to purchase a new van. In addition, staff will expand the number of prisoners and require additional equipment. There is sufficient funds in the Equipment Replacement -General Fund; $175000 was transferred from the General Fund this fiscal year. Dept. Head Signature: Date: inance Director: Date: ate Approved: Date Posted: Page of OL�f'3 RESOLUTION 2012-02 1 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS CALLING A GENERAL ELECTION ON SATURDAY, MAY 12, 2012; DESIGNATING THE POLLING PLACE; PROVIDING F'OR OTHER MATTERS RELATING TO THE GENERAL ELECTION; AND FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, the laws of the State of Texas and the Charter of the City of Nederland provide that on May 12, 2012 there shall be elected the following officials for this City: One (1) Mayor One (1) Council member, Ward II One (1) Council member, Ward IV WHEREAS, the laws of the State of Texas and the Charter of the City of Nederland further provide that the Election Code of the State of Texas is applicable to said election, and in order to comply with said Code, a resolution should be passed establishing the procedure to be followed in said election, and designating the voting place for said election. 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 second Saturday in May, 2012, for the above mentioned offices file their application to have their name placed on the ballot with the City Clerk at City Hall, 1400 Boston Avenue, Nederland, Texas, not later than the sixty-second (62nd) days before the election or earlier than the 30'" day before the date of the filing deadline in accordance with Election Code Sec. 143.006 and 143.007. The earliest date for a candidate to file same will be February 4, 2012, which is a Saturday, therefore, will be moved to the next regular business day, February 6, 2012 at 8:00 a.m., with the last day for filing to be March 5, 2012 at 5:00 p.m. All of said applications shall be on a form as prescribed by Section 141.031 of the Election Code. The order in which names of the candidates are to be printed on the ballot shall be determined by a drawing by the City Clerk as provided by Section 52.094 of the Election Code. The City of Nederland has one polling place located in the City Office Building, 1400 Boston Avenue, Nederland, Texas. The City Clerk is hereby authorized and instructed to provide and furnish all necessary election supplies to conduct said election. Flora Sue Bedwell will serve as Presiding Judge and Susan Monroe will serve as Alternate Presiding Judge, and the clerks of the election will be appointed by the Presiding Judge in a number not to exceed seven (7). The polls at the above designated polling place shall on said Election Day be open from 7:00 a.m. to 7:00 p.m. Gay Ferguson is hereby appointed Clerk for Early Voting. The Early Voting for the above designated election shall be at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas, and said place of Early Voting shall remain open for at least eight (8) hours on each day for Early Voting which is not a Saturday, Sunday, or an official State holiday, beginning on the twelfth (12") day and continuing through the fourth (0) day preceding the date of said election. Said place of voting shall remain open between the hours of 8:00 a.m. and 5:00 p.m. on each day for said Early Voting. As required under Section 85.005(d), Election Code, early voting by personal appearance at the main early voting polling place shall be conducted for at least 12 hours on two weekdays, if the early voting period consists of six or more weekdays, therefore, early voting by personal appearance shall be conducted for 12 hours from 7:00 a.m. to 7:00 p.m. on Tuesday, May 1, 2012 and Tuesday, May 8, 2012. The above described place for Early Voting is also the Early Voting Clerk's address to which ballot applications and ballots voted by mail may be sent. The Early Voting Ballot Board shall be created as provided by Election Code Sec. ' 87.001. Flora Sue Bedwell is hereby appointed as the Presiding Judge for the Early Voting Ballot Board and is authorized to appoint two (2) clerks to serve on the Board. Gay Ferguson is hereby appointed to serve as the Presiding Judge of the Central Counting Station as provided in Section 127.005 of the Election Code. Said election shall be held in accordance with the Election Code of the State, and only resident qualified voters of said City shall be eligible to vote at said election. 0 1 1 00^"33 All ballots shall be prepared in accordance with Texas Election Code. Paper ballots shall be used for early voting by mail and for provisional ballots. The iVotronic Voting System v8.0.1.0 (Direct Recording Electronic) shall be used for early voting by personal appearance and voting on Election Day. The City Council hereby adopts for use in early voting and Election Day voting the iVotronic Voting System v8.0.1.0 (Direct Recording Electronic) as approved by the Secretary of State. All expenditures necessary for the conduct of the election, the purchase of materials therefore, and the employment of all election officials is hereby authorized. The Mayor shall give notice of this election in accordance with the terms and provisions of Sections 4.004, 83.010, 85.004, and 85.007 of the Election code, and all necessary orders and writs for said election shall be issued by the proper authority. Returns of said election shall be made to the City Council immediately after the closing of the polls. It is further found and determined that in accordance with the order of this governing body, the City Clerk posted written notice of the date, place and subject of this meeting on the bulletin board located in the City Hall, a place convenient and readily accessible to the general public, and said notice having been posted and remaining posted continuously for at least 72 hours preceding the scheduled time of said meeting. PASSED, APPROVED AND ADOPTED this 13th day of February, 2012. Talmadge II Councilmember Don Ibanese, Ward III Councilmember ATTEST: ,III -if - ay FergusUn, City Clerk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jess Bran k ty Attorney �— Cit of Ned Hand, Texas R. A. Nu ent, yor City o//ffj, /NNederl nd, Texas k Neakard I i u tuber 2R.�geWartVCouncilmember REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND ' 4:30 p.m. February 27, 2012 MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Neal and seconded by Mayor Pro Tem Rogers to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. I Noes: None. a. Minutes—February 13, 2012 regular meeting b. Financials: Tax Assessor Collection Report - January 2012 c. Payments: • Schaumburg & Polk, Inc. - $3,438.10, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $7,284.00, 2011 Wastewater Line Replacement project • Schaumburg & Polk, Inc. - $4,130.00, 18th Street Water Line Evaluation • Walker Partners - $7,119.99, 2010 Water Improvements project REGULAR AGENDA a. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to set a Public hearing date of March 12, 2012 at 4:30 p.m. for the purpose of receiving comments regarding revisions to the City's Drought Contingency Plan. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None b. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to acknowledge submission and receipt of the "Racial Profiling Report"as required by Article 2.132(b)(7) of the Texas Code of Criminal Procedure. I MOTION CARRIED. Minutes Continued, February 27, 2012 �� J ' Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Albanese and seconded by Councilmember Neal to approve an Interlocal Agreement with the Nederland Independent School District for conducting a joint election. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. COMMUNICATIONS City Manager's Report: a. Construction Project Update - Steve Hamilton reported that the sewer project is near completion. He added that the 18`h Street between Helena and Canal project will come before Council on March 26`h for consideration of authorizing bids. b. Update on Sunoco's rail project - Chris Duque advised that residents who attended last week's "town hall" meeting will be receiving a flyer from Sunoco regarding the noise barrier wall proposed for the rail project. He included that Sunoco is making an effort to be a good neighbor. 6. ADJOURN ' There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Neal to adjourn the meeting at 5:00 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ATTEST: - hq I ka" (Z� 14/RR/A-, GAy-FergusUn, City Clerk City of Nederland, Texas 1 R. A. Nugent,or City of Neder nd, Texas NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick Cheryl Dowden Darrell Bush Gary Collins Steve Hamilton George Wheeler Victoria Klehn Emily Melancon Joni Underwood I' 4 j, - R. A. Nugentyor Gay Z10, n, City Clerl February 27. 2012 Date CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET TITLE Mayor Council Member — Ward I Council Member — Ward II Council Member — Ward III Council Member — Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary PRESENT ABSENT 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON SON CO TEXAS 00003'7 SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $2,584,231.45, represents all taxes collected for CITY OF NEDERLAND during the month of January 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 Nederland Police Department Report to Nederland City Council loo o 0 38 February 24, 2012 The following report summarizes the activity of the Nederland Police Department as it relates to the requirements of Articles 2.131 - 2.138 of the Texas Code of Criminal Procedure. The Nederland Police Department collects data concerning traffic citations and arrests due to both traffic and pedestrian stops. This report fulfills the statutory , requirement of the Nederland Police Department to report contacts and racial/ethnic percentage breakdowns to the Nederland City Council by February 27, 2012. The percentages in this report will be represented in the total tickets and custody arrests due to traffic and pedestrian stops as they relate to the racial/ethnic make-up of both Nederland and Jefferson County. Our belief is , the motoring public that occupies the streets of Nederland is more representative of our County demographics, rather than the race/ethnic make-up of the Nederland City population. Several factors contribute to this situation. Our City is bisected by two major highway systems and bordered by another highway. This alone brings many people into our City from other areas. Nederland is also a significant employer and often those employees drive into and through our City. We feel the racial/ethnic make-up of Jefferson County will more accurately reflect the motorists that our officers encounter on traffic related stops. Total Number of Traffic Stops tesulting in: Total Number of Searches: I Citations Citations and Probable Nederland Consent Race/Ethnicity Citations only Arrests only Consent Arrest Cause Search Searches Arrests No. % No. % No. % No. % No. % Caucasian 1024 82.65% 15 78.95% 19 67.86% 7 77.78% 7 77.78% African Caucasian 81.2% 82.65% 78.95% 67.86% 77.78% American 111 8.96% 4 21.05% 6 21.43% 2 22.22% 0 0.00% Hispanic 72 5.81% 0 0.00% 3 10.71% 0 0.00% 0 0.00% Asian 24 1.94% 0 0.00% 0 0.00% 0 0.00% 2 22.22% Native 0.00% Other I 0.2% 0.56% 0.00% 0.00% 0.00% 0.00% American 1 0.08% 0 0.00% 0 0.00% 0 0.00% 0 0.00% Middle Eastern 7 0.56% 0 0.00% 0 0.00% 0 0.00% 0 0.00% Total 1239 100.00% 19 100.00% 28 100.00% 9 1 100.00% 9 100.00% •Race/Ethnicity are defined )y Article 2.132(a) means of a particular descent, including Caucasian, African American, Hispanic, Asian, Native American or Middle Eastern. 34.7% 8.96% 21.05% 21.43% 22.22% ' 0.00% Hispanic 15.2% The percentages in this report will be represented in the total tickets and custody arrests due to traffic and pedestrian stops as they relate to the racial/ethnic make-up of both Nederland and Jefferson County. Our belief is , the motoring public that occupies the streets of Nederland is more representative of our County demographics, rather than the race/ethnic make-up of the Nederland City population. Several factors contribute to this situation. Our City is bisected by two major highway systems and bordered by another highway. This alone brings many people into our City from other areas. Nederland is also a significant employer and often those employees drive into and through our City. We feel the racial/ethnic make-up of Jefferson County will more accurately reflect the motorists that our officers encounter on traffic related stops. Citations Race/ Nederland PC Consent Citations Arrests and Ethnicity Demographics Searches Search Arrests Caucasian 81.2% 82.65% 78.95% 67.86% 77.78% 77.78% , African Amer 3.9% 8.96% 21.05% 21.43% 22.22% 0.00% Hispanic 10.7% 5.81% 0.00% 10.71% 0.00% 0.00% Asian I 2.8% 1.94% 0.00% 0.00% 0.00% 22.22% Native Amer I 0.3% 0.08% 0.00% 0.00% 0.00% 0.00% Other I 0.2% 0.56% 0.00% 0.00% 0.00% 0.00% Race/ Jefferson Co. Citations PC Consent Ethnicity Demographics Citations Arrests and Searches Search Arrests Caucasian 46.6% 82.65% 78.95% 67.86% 77.78% 77.78% I African Amer 34.7% 8.96% 21.05% 21.43% 22.22% ' 0.00% Hispanic 15.2% 5.81% 0.00% 10.71% 0.00% 0.00% Asian 2.8% 1.94% 0.00% 0.00% 0.00% 22.22% Native Amer .5% 0.08% 0.00% 0.00% 0.00% 0.00% Other .1% 0.56% 0.00% 0.00% 0.00% 0.00% REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. March 12, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember ' Albanese to approve the Consent Agenda Items 3 a -e as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—February 27, 2012 regular meeting b. February 2012 Departmental Reports c. Consider action authorizing the closure of various City streets for the Spindletop Streetrods & Hotrods Association car show. d. Consider action regarding a request from First Baptist Church to utilize Doornbos Park for their annual Easter Egg Hunt. e. Payments: • February 2012 monthly bills • Allco, Inc. - $190,896.72, Nederland Water Treatment Plant Repairs/Improvements project 4. REGULAR AGENDA a. The regular meeting was recessed and a Joint Public Hearing was called to order at 4:32 by Mayor Nugent for the purpose of receiving comments regarding revisions to the City's Drought Contingency Plan. Chris Duque, City Manager, advised that last fall the Lower Neches Valley Authority completed revisions to their drought contingency plan. As per the ' City's raw water agreement with LNVA, the two plans must follow one another. The most noticeable change is following the various drought 'stages" delineated in the LNVA's plan that tie-in to the Sam Rayburn Reservoir level. There being no further questions and/or comments, the Public Hearing was adjourned and the regular meeting was reconvened at 4:33 by Mayor Nugent. OOlainut�C=�lgO es CQptinued, March 12, 2012 1 b. A motion was made by Councilmember Albanese and seconded by ' Councilmember Neal to approve Ordinance 2012-03, amending the City's Drought Contingency Plan for submittal to the Texas Commission on Environmental Quality. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. Chris Duque, City Manager, explained that the owner of 2423 Nederland Avenue, Mr. Waleed A. Khan, has submitted a Specific Use Permit request for the construction of gasoline pumps to be utilized for the retail sell of automobile gasoline. The property is zoned Neighborhood Retail; as per the City's Zoning Ordinance, a convenience store with gas pumps is only allowed in this district's zoning with a specific use permit. A joint public hearing was held on February 13, 2012 and the Planning & Zoning Commission approved the request with a 4-1 vote at their March 6, 2012 meeting. George Wheeler, Building Official, went over the 7 conditions which will be attached to the Specific Use Permit as recommended by the Planning & Zoning Commission. Mr. Waleed A. Khan was in attendance and agreed to the conditions as recommended. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve the issuance of a Specific Use Permit for the property located at 2423 Nederland Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ' d. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Rogers to authorize the purchase of software upgrades for Fire and Police mobile and portable radios. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve Resolution No. 2012-03, electing to not require the remittance of Public, Education, and Governmental fee by holders of State -issued certificates of franchise authority. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve an Interlocal Agreement between the City of Nederland and Jefferson County for street repair and maintenance. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve Ordinance No. 2012-04, denying Entergy Texas Inc.'s rate increase request. MOTION CARRIED. I Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, March 12, 2012 p1) tin 11 h. A motion was made by Councilmember Albanese and secon e� "6`1y Councilmember Austin to approve the Certificate of Unopposed Candidates for the general election scheduled for May 12, 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. L A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve Ordinance No. 2012-05, declaring unopposed candidates in the May 12, 2012 General City Election and canceling said election. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to authorize the solicitation of bids for Employee Group Benefits. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. COMMUNICATIONS City Manager's Report: a. Nederland Heritage Festival Week - There will not be a ribbon cutting for the Heritage Festival this year. The parade will be Saturday, March 17`h. With several complaints from past parades, a street sweeper has been hired to sweep the streets immediately after the parade. b. ShopsQA Update - Work is continuing on this website for businesses. A training session is scheduled for the end of this month. 6. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Neal to adjourn the meeting at 5:15 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers, Noes: None. R. A. Nugent, Ira or City of Nederla , Texas ATTEST: ' ay Fergutbn, City Cler City of Nederland, Texas dflOC, 42 NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick Cheryl Dowden Darrell Bush Gary Collins Steve Hamilton George Wheeler Victoria Klehn Emily Melancon Joni Underwood �l% �/(. 1 R. A. Nugent, Maya Gay Ferguson, City Clepk March 12, 2012 Date CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET �rrwa Mayor Council Member —Ward I Council Member — Ward II Council Member — Ward III Council Member — Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary PRESENT V V V ABSENT J 1 1 C'�"3f"A 3 LCITY OF NEDERLAND ORDINANCE NO. 2012-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, ADOPTING AN AMENDED DROUGHT CONTINGENCY PLAN; ESTABLISHING CRITERIA FOR THE INITIATION AND TERMINATION OF DROUGHT RESPONSE STAGES; ESTABLISHING RESTRICTIONS ON CERTAIN WATER USES; ESTABLISHING PENALTIES FOR THE VIOLATION OF AND PROVISIONS FOR ENFORCEMENT OF THESE RESTRICTIONS; ESTABLISHING PROCEDURES FOR GRANTING VARIANCES; AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City of Nederland, Texas recognizes that the amount of water available to the City and its water utility customers is limited and subject to depletion during periods of extended drought; and WHEREAS, the City recognizes that natural limitations due to drought conditions and other acts of God cannot guarantee an uninterrupted water supply for all purposes; and WHEREAS, Section 11.1272 of the Texas Water Code and applicable rules of the Texas Natural Resource Conservation Commission require all public water supply systems in Texas to prepare a drought contingency plan, and WHEREAS, as authorized under law, and in the best interests of the citizens of Nederland, Texas, the Nederland City Council deems it expedient and necessary to establish certain rules and policies for the orderly and efficient management of limited water supplies during drought and other water supply emergencies. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS THAT: SECTION 1. The City of Nederland, Texas Drought Contingency Plan attached hereto as Exhibit A and made part hereof for all purposes be, and the same is hereby, adopted as the official policy of the City. SECTION 2. The City of Nederland, Texas Drought Contingency Plan attached hereto as Exhibit A replaces the Drought Contingency Plan previously submitted to the Texas Natural Resource Conservation Commission in 2009. SECTION 3. All ordinances that are in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 4. Should any paragraph, sentence, subdivision, clause, phrase, or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional. SECTION 5. This ordinance shall take effect immediately from and after its passage and the publication of the caption, as the law in such cases provides. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Nederland on this the 12TH day of MARCH, 2012. ATTEST: ti ay Fergu n, City ClefQ City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jsitse Bra k, City Attorney I y of Nederland, Texas Nugent, Mayor City of Nederland, Texas C0 rJ1 ORDINANCE NO. 2012-04 LAN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS ("CITY") DENYING THE RATE INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED ON NOVEMBER 28, 2011; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about November 28, 2011 Entergy Texas, Inc. ("Entergy") filed a Statement of Intent with the City to increase electric rates in the Entergy Service Area by $111.8 million per year, and WHEREAS, the City of Nederland suspended the effective date of Entergy's rates within its jurisdictional limits until at least April 1, 2012 and hired the Lawton Law Firm, P.C. to review the Company's rate change request and proposed tariffs; WHEREAS, the expert utility rate consultants retained to review the Company's rate increase on behalf of the City have made a range of proposed adjustments and concluded that Entergy has not justified the need for a rate increase. The consultants' analyses eliminate the Company's purported annual revenue increase, as set out in the recommendations made to the City in the Final Rate Report to Cities Steering Committee ("Report"). The range of adjustments, up to $118.8 million, eliminates any increase requested by Entergy. WHEREAS, the rate experts retained for the rate review have concluded that Entergy's rate filing request includes rate increases for Entergy's proposed cost of capital, cost of cash working capital, accumulated deferred income taxes, depreciation rates, cost of purchased power capacity, employee compensation— including bonus, stock awards and other compensation—benefits, federal income tax estimates, and storm reserve charges, which are unjustified by Entergy's filing; WHEREAS, Entergy has failed to justify increasing the rates previously determined to be reasonable and necessary by this City and other Texas regulatory authorities; WHEREAS, the statutory deadline to act on Entergy's rate increase request is April 1, 2012, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. The statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. Section 2. The City of Nederland, Texas hereby denies the rate increase and proposed tariff revisions requested in Entergy's Statement of Intent. Section 3. Entergy is hereby Ordered to continue operating under its ' existing approved rates. 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. Section S. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 12TH day of MARCH, 2012. R. A. Nugent, Mayor ATTEST: _A -i WFergu4bn,-City Cletit APPROVED AS TO FORM: L_ �Jes a Br ' k, City Attorney 07 11 1 000047 CERTIFICATION OF UNOPPOSED CANDIDATES CERTIFICAC16N DE CANDIDATOS UNICOS To: Presiding Officer of Governing Body Al: Presidente de la entidad gobernante As the authority responsible for having the official ballot prepared, I hereby certify that the following candidates are unopposed for election to office for the election scheduled to be held on Mav 12.2012. Como authoridad a cargo de la preparaci6n de la boleta de votaci6n official, por la presente ertifico que los siguientes candidates son candidators unicos para elecci6n para un cargo en a elecci6n que se llevard a cabo el 12 de mavo. 2012. List offices and names of candidates: Lista de cargosy nombres de los candidates: Office(2) Cargo(s) Mayor Council Ward II Council Ward IV �DA� IAS Signature (Firma) Gav FerLyuson Printed name (Nombre en Tetra de molde) Citv Clerk Title (Puesto) Candidate(s) Candidato(s) R. A. Nugent Billy Neal Bert Rogers ' March 12. 2012 Date of signing (Fecha de firma) Seal (sello) CITY OF NEDERLAND ORDINANCE NO. 2012-05 0 AN ORDINANCE DECLARING UNOPPOSED ' CANDIDATES IN THE MAY 12, 2012 GENERAL CITY ELECTIO14 ELECTED TO OFFICE; CANCELING THE ELECTION; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the general city election was called for May 12, 2012, for the purpose of electing a mayor and 2 members to the City Council; and WHEREAS, the city clerk has certified in writing that there is no proposition on the ballot, that no person has made a declaration of write-in candidacy, and that each candidate on the ballot is unopposed for election to office; and WHEREAS, under these circumstances, Subchapter C, Chapter 2, Election Code, authorizes the City Council to declare the candidates elected to office and cancel the election; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS. Section 1. The following candidates, who are unopposed in the May 12, 2012, general city election, are declared elected to office, and shall be issued certificates of election following the time the election would have been canvassed: ' Mayor R. A. Nugent Council Ward 11 Billy Neal Council Ward IV Bert Rogers Section 2. The May 12, 2012, general election is canceled, and the city clerk is directed to cause a copy of this ordinance to be posted on election day at each polling place that would have been used in the election. Section 3. It is declared to be the intent of the City Council that the phrases, clauses, sentences, paragraphs, and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraph, or section of this ordinance is declared invalid by the judgment or decree of a court of competent jurisdiction, the invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs, or sections of this ordinance since the City Council would have enacted them without the invalid portion. Section 4. This ordinance shall take effect upon it final passage, and it is so ordained. PASSED AND APPROVED this the 12th day of March, 2012. R. A. Nugenayor City of Nederland, Texas ATTEST: Gay Ferguson, City C16rk City of Nederland, Texas 0OC"-'49 APPROV AS TO FORM AND LEGALITY: sse ixck, City Attorney ' City o ederla. d, Texas u 1 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND I 4:30 p.m. March 26, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—March 12, 2012 regular meeting b. Financials: Tax Assessor Collection Report -- February 2012 c. Payments: • Schaumburg & Polk, Inc. - $4,735.00, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $2,056.25, 2011 Wastewater Line Replacement project • Schaumburg & Polk, Inc. - $18,060.50, 18`h Street Waterline Replacement project • Allco, Inc. - $96,788.08, 2009 Sewer Rehabilitation project • Carroll & Blackman, Inc. - $656.00, Phase II MS4 Permit Implementation Services 4. REGULAR AGENDA a. Recognition of Aaron Goutreaux for completing his Eagle Scout project, installing brick planter boxes at the Nederland Recreation Center. Mayor Nugent thanked Mr. Goutreaux for his service to the City and told him that obtaining his Eagle Scout was something to be proud of and that would stay with him throughout his life. b. Presentation from Adaptive Sports for Kids (formally Nederland Challenge League). Minutes Continued, March 26, 2012 Scott Ferguson was in attendance to thank the City Council, City Manager, and City staff for their continued support of the Adaptive Sports for Kids project. He presented the City with a $250 donation for field repairs and 4 All Star players presented City Council members with t -shirts. M. James Edwards, Partner,of J.R. Edwards & Associated, LLP reviewed the FY 2010- 2011 audit. He started by thanking Cheryl Dowden, Chris Duque, and staff for assisting in performing the audit. He reported that there were no deficiencies and brought to Council's attention the Certificate of Achievement for Excellence in Financial Report which is given to those with the highest possible standards in government accounting. Proclamations: i. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve a Proclamation in regard to 'Fair Housing Month." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve a Proclamation in regards to proclaiming April 8 - 14, 2012 as "Community Development Week". MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Rogers to approve the Quarterly Investment Report. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Neal and seconded by Councilmember Austin to authorize the submittal of a COPS grant application to the U. S. Department of Justice. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. Requests: i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Rogers to approve a request from Randy Rich to utilize the Nederland Recreation Center gymnasium for a futsa/ league. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Neal and seconded by Councilmember Albanese to approve a request from Brian English to utilize the Nederland Recreation Center gymnasium for a basketball league. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve a request from the Nederland Masonic Lodge regarding their tax exempt status. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Mini ites Continued, March 26, 2012 g. Bids: i. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve the bid from ACT Pipe and Supply, to establish unit prices for "Water Inventory Items." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Neal and seconded by Councilmember Austin to authorize the solicitation of bids for the 18`h Street Waterline Replacement project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Rogers to declare surplus miscellaneous City equipment. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. i. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Rogers to execute a contract with Rene' Bates Auctioneers, Inc. to conduct an online auction of surplus City property. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. j. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve Ordinance No. 2012-06, amending the Fiscal Year 2011-2012 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. k. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve an Engineering Services Contract with DSR & Associates in regards to the Hardy Avenue elevated water tank. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 1. Debt: Jim Gilley, Coastal Securities, was in attendance to present the option of re- financing General Obligation Bonds, Series 2012, which would be a cost savings of approximately $367,000 over a 10 -year period. i. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve Ordinance No. 2012-07, authorizing the issuance of general obligation refunding bonds series 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve a Paying Agency Agreement with Bank of Texas in regards to the refunding bonds series 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, March 26, 2012 S. COMMUNICATIONS City Manager's Report: a. Construction Project Update - Steve Hamilton gave a brief update of the construction projects. City staff met with county staff regarding the Avenue H project. The project should be ready to bid mid-April and should be awarded in May. Gary Graham with Walker Partners was in attendance to give an update on the Water Plant project. He advised that there were some issues that came up and that a change order would be brought to the city council at their next meeting. Mr. Hamilton reported that the sewer pipebursting project is near completion. 6. EXECUTIVE SESSION The regular meeting was recessed at 5:58 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.072, Deliberations of Real Property; and Chapter 551.074, Discuss Personnel - City Manager. RECONVENE The regular meeting was reconvened at 7:27 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. IS. ADJOURN There being no further business a motion was made by Councilmember Austin and seconded by Councilmember Neal to adjourn the meeting at 7:28 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. Pu ayor City of Nederland, Texas ATTEST: G y ergus City Clerb City of Nederland, Texas e C��o NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick Cheryl Dowden Darrell Bush Gary Collins Steve Hamilton George Wheeler Victoria Klehn Emily Melancon Joni Underwood CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET TITLE Mayor Council Member - Ward I Council Member - Ward II Council Member - Ward III Council Member - Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary AM, ig GGCz1( -- R. A. Nugent, M�Kr Oayerg�on, City Cler March 26, 2012 Date PRESENT V V ABSENT V 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON �4gON CO J TAX SUSIE JAMES CH/EF DEPUTY I, J. Shane Howard, 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 $540,102.30, represents all taxes collected for CITY OF NEDERLAND during the month of February 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 (1� 56 REGULAR MEETING OF THE CITY COUNCIL OF THE ` CITY OF NEDERLAND 4:30 p.m. April 9, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes—March 26, 2012 regular meeting Consider action authorizing the installation of a street light on 24th Street between Boston Avenue and Detroit Avenue. Payments: • March 2012 Monthly bills • Walker Partners - $4,456.54, 2010 Water System Improvements project • Carroll & Blackman, Inc. - $1,302.33, Phase II MS4 Permit Implementation Services 4. REGULAR AGENDA a. Receive comments from Sharon Severson and take possible action regarding her request for City sewer service at 7984 and 7988 Holmes Road. Chris Duque, City Manager informed that this is residential property located outside the City limits and is in Aqua Texas' water CCN. Staff discovered these properties are currently served City water. Staff contacted Aqua Texas to clarify this discrepancy and Aqua verbally notified that they would not object to the City continuing to provide water service. Public Works staff indicated the sewer service connect would only require a tap to the sewer line along the street. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve the request for sewer service at 7984 and 7988 Holmes Road. MOTION CARRIED. Minutes Continued, April 9, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. Contracts: i. A motion was made by Councilmember Neal and seconded by Councilmember Austin to approve amending an Interlocal Agreement for street repair and maintenance between the City of Nederland and Jefferson County - Avenue H hot mix overlay project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve amending a Medical Benefits Cooperative Purchasing Interlocal Agreement between the City of Nederland and the City of Port Neches. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. Cheryl Dowden, Finance Director, reported on the City of Nederland Retiree Health Care Plan as of December 31, 2010. This is a report which is required by law every 3 years. The plan calculates the liability to the City on Retiree Health Insurance benefits for retirees. d. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Rogers to approve Resolution No. 2012-04, adopting the Jefferson County Mitigation Action Plan as the official plan for the City of Nederland. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. Requests: A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve Ordinance No. 2012-08, amending the Fiscal Year 2011-2012 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Austin and seconded by Councilmember Neal to authorize the solicitation of bids for "Debris Management Services." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. EXECUTIVE SESSION The regular meeting was recessed at 5:00 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; and Chapter 551.072, Deliberations of Real Property. Minutes Continued, April 9, 2012 6. RECONVENE 1 The regular meeting was reconvened at 5:40 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATIONS City Manager's Report: a. Trash Bash - Saturday, April 215` b. Information regarding the SSO program - Steve Hamilton reported on the letter received from TCEQ regarding a Sanitary Sewer Overflow Initiative. This program would include a system -wide evaluation which would be fairly expensive. A component of the plan would need to incorporate prohibiting property owners from opening cleanout plugs to drain rainwater from their yards. He advised that legal will have to be consulted on liability the city has for citizens' actions. S. ADJOURN There being no further business a motion was made by Councilmember Austin and seconded by Councilmember Neal to adjourn the meeting at 5:50 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f7xR�—. R. A. Nugent,yor City of Nederl d, Texas ATTEST: ay Ferg son, City CILdrk City of Nederland, Texas 1 1 1 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor , / Talmadge Austin Council Member— Ward I ✓/ , v, Billy Neal Council Member— Ward II / "/ Don Albanese Council Member— Ward III , V Bert Rogers Council Member — Ward IV ✓ Chris Duque City Manager ✓ Gay Ferguson City Clerk Jesse Branick City Attorney ✓ Cheryl Dowden Director of Finance ✓ Darrell Bush Police Chief Gary Collins Fire Chief t✓ Steve Hamilton Director of Public Works v George Wheeler Building Official `✓ Victoria Klehn Librarian Emily Pope Human Resources Director Joni Underwood Executive Secretary R. A. Nugent, Ma or w__� Gay Fergui6n, City Clerk Date April 9, 2012 C00r"59 ABSENT RESOLUTION 2012-04 A RESOLUTION APROVING AND ADOPTING THE JEFFERSON COUNTY MITIGATION ACTION PLAN WHEREAS, the City of Nederland has experienced severe damage from floods, hurricanes, wildfires and tornados on many occasions in the past century resulting in loss of life, property, economic hardship and threats to public safety, health and security, and; WHEREAS, the Jefferson County Mitigation Action Plan has been significantly updated within the past year with input from the City of Nederland, Jefferson County, South East Texas Regional Planning Commission and numerous other local jurisdictional professionals and community members, and; WHEREAS, the Jefferson County Mitigation Action Plan recommends many hazard mitigation actions that will protect the people and property affected by natural hazards that impact the City of Nederland, and; WHEREAS, public meetings were held as required by law to review the actions, the hazards profiled and the Jefferson County Mitigation Action Plan; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, JEFFERSON COUNTY, TEXAS: That the Jefferson County Mitigation Action Plan is hereby adopted as the official plan for the City of Nederland, Texas. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 9`' DAY OF APRIL, 2012. ATTEST: Gay FergiAon, City Clerk' APPROVED AS TO FORM AND LEGALITY: Jesse Branic ,City Attorney R. A. Nugent, yor City of Nederland, Texas IORDINANCE NO. 2012-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND AMENDING THE FISCAL YEAR 2011-2012 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2011-12 which adopted the Fiscal Year 2011-2012 City Budget; and, WHEREAS, the City Council deems it necessary to amend the current budget to adjust revenues and expenditures as set out in Attachment "A" attached hereto; and, WHEREAS, the 2011-2012 City budget states 'That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2012 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2011 and ending September 30, 2012, 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 2011-2012 is amended to allow for adjustments in revenues and expenditures as set out in Attachment "A." THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. THAT the City Clerk shall file a true copy of this ordinance and said budget amendment with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 9' DAY OF APRIL, 2012. _&I�LE R. A. Nugen ayor City of Nederland, Texas ATTEST: Gay FergVson, City Cleri APPROVED AS TO FORM AND LEGALITY: Jess Brani k, City Attorney CITY OF NEDERLAND BUDGET AMENDMENT REQUEST FISCAL YEAR: 2011-2012 DATE: April 9, 2012 DEPARTMENT: Police, Fire FUND: GENERAL AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 01-0000-4355 State Grant Fund - 45,932.00 45,932.00 01-2100-6355 Vehicle & Equipment R&M 23,000.00 22,092.00 45,092.00 01-2200-6355 Vehicle & Equipment R&M 15,000.00 23,840.00 38,840.00 TOTAL 38,000.00 91,864.00 129,864.00 JUSTIFICATION The Police and Fire Departments secured grant funds (SHSP & LETPA) to finance radio upgrades. The State Grant Fund line -item is increased to reflect the grant. The grant funds are allocated to the Vehicle & Equipment R&M line -items of the Police and Fire Departments to finance the Flash software purchase. The net effect on the General Fund is $0.00. Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of 1 i 1 r�nn^, ��L03 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. April 23, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -d as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—April 9, 2012 regular meeting b. March 2012 Departmental Reports c. Financials: Tax Assessor Collection Report - March 2012 d. Payments: • Allco, Inc. - $128,026.80, Nederland Water Treatment Plant Repairs/Improvements project • Schaumburg & Polk, Inc. - $5,019.00, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $4,114.98, 2011 Wastewater Line Replacement • Schaumburg & Polk, Inc. - $26,237.25, 18th Street Waterline Replacement project 4. REGULAR AGENDA a. Proclamations: i. Mayor Nugent presented a Proclamation to John Burleigh, Veterans of Foreign Affairs Post 4820, recognizing the "Buddy Poppies" campaign by Veterans of Foreign Wars in Nederland. Mr. Burleigh thanked the council for their support. L A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve a Proclamation recognizing the "Buddy Poppies" campaign by the Veterans of Foreign Wars. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 0 r. ./ vU l Minutes Continued, April 23, 2012 ii. Mayor Nugent presented a Proclamation to Cindy Fertitta, Primary Prevention Specialist/Education Coordinator of Rape and Suicide Crisis of Southeast Texas, Inc., declaring the month of April as "Sexual Assault Awareness and Prevention Month" in Nederland. Ms. Fertitta thanked Council for their continued support. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve a Proclamation in regards to "Sexual Assault Awareness and Prevention Month." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. Mayor Nugent presented a Proclamation to Misty Craver, Program Director of Jefferson County Victims' Assistance Center, declaring the week of April 22-28, 2012 as "National Crime Victims' Rights Week" in Nederland. Ms. Craver thanked Council for their support. A motion was made by Councilmember Neal and seconded by Councilmember Austin to approve a Proclamation in regards to National Crime Victims' Rights Week." MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. Joey Mitchell, Cory Mitchell, and Richard Bolling of the Nederland/Port Neches Optimist Club made a presentation to the Nederland City Council. A check in the amount of $6,000.00 was donated to the Nederland Parks & Recreation Department in support of the Adaptive Sports for Kids partnership. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to accept the donation made by the Nederland/Port Neches Optimist Club. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Austin and seconded Councilmember Neal to appoint J. R. Edwards and Associates to perform the City's audit for Fiscal Year 2011-2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve Resolution No. 2012-05, allowing the City Manager to enter into an Interlocal Agreement between Jefferson County, Hardin County, and Cities of Beaumont, Port Arthur, Nederland, Groves, Port Neches, and Orange for the South East Texas Regional Radio System. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to amend Ordinance No. 164, setting the calendar for regular City Council meetings May 2012 - April 2013. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Rogers to approve Change Order No. 2 (+ $24,868.00) - Nederland Water Treatment Plant Repairs/Improvements project. MOTION CARRIED. Minutes Continued, April 23, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. S. EXECUTIVE SESSION The regular meeting was recessed at 5:13 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.072, Deliberations of Real Property; and Chapter 551.074, Discuss Personnel - City Manager. RECONVENE The regular meeting was reconvened at 6:12 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. COMMUNICATIONS City Manager's Report: a. Construction Project Update. Steve Hamilton reported that the sewer project is near completion, bids for 18th Street project and also Avenue H project will open early May, and the swimming pool repairs will be done late April or early May. The swimming pool is scheduled for open on May 16, L 2012. S. ADJOURN There being no further business a motion was made by Councilmember Austin and seconded by Councilmember Neal to adjourn the meeting at 6:15 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. d. ugent, I yor City of Nederland, Texas ATTEST: \ .A— ' Gay Ferg on, City Cl k City of Nederland, Texas CC Q6.6 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor �1 Talmadge Austin Council Member— Ward I V Billy Neal Council Member— Ward II Don Albanese Council Member— Ward III `✓ Bert Rogers Council Member — Ward IV v Chris Duque I City Manager Gay Ferguson City Clerk v Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief V Gary Collins Fire Chief V Steve Hamilton Director of Public Works V , George Wheeler Building Official v Victoria Klehn Librarian , / Emily Pope Human Resources Director v Joni Underwood Executive Secretary V �A/ R. A. Nuge t, Gyo &Wao- Go Fergus6h, City Clerk April 23. 2012 Date ABSENT 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON ����,SON COGS a � � a *TEXAs�� SUSIE JAMES CHIEF DEPUTY Vr.�_n^7 I, J. Shane Howard, 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 $135,725.26, represents all taxes collected for CITY OF NEDERLAND during the month of March 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 l � Ono',: v, AN AMENDMENT TO ORDINANCE NO. 164 1 AN ORDINANCE SETTING REGULAR DATES FOR COUNCIL MEETINGS TO BE HELD FROM MAY 14, 2012 THROUGH APRIL 22, 2013. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the following dates will be and are hereby regular meeting dates for the meetings of the City Council of the City of Nederland, Texas. All of the below regular meetings shall begin at 4:30 p.m. on each of the following dates: May 14 and 21, 2012 June 11 and 25, 2012 July 9 and 23, 2012 August 6 and 20, 2012 September 10 and 24, 2012 October 8 and 22, 2012 November 12 and 26, 2012 December 10 and 17, 2012 January 14 and 28, 2013 February 11 and 25, 2013 March 11 and 25, 2013 April 8 and 22, 2013 ANY AND ALL ordinances of the City of Nederland, Texas which conflict with any provisions of this amendment are hereby expressly repealed. PASSED AND APPROVED by the City Council at a regular meeting this 23rd day of April, 2012. i R. A. Nugent ayor City of Nederland, Texas ATTEST: Gay Fer son, City C6 rk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: w L� Je se Br k, City Attorney C' of derland, Texas D LRESOLUTION 2012-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN INTERLOCAL AGREEMENT BETWEEN JEFFERSON COUNTY, HARDIN COUNTY, THE CITIES OF BEAUMONT, PORT ARTHUR, NEDERLAND, GROVES, PORT NECHES AND ORANGE IN ACCORDANCE WITH CHAPTER 791 OF THE GOVERNMENT CODE OF THE STATE OF TEXAS FOR THE SOUTH EAST TEXAS REGIONAL RADIO SYSTEM. WHERAS, the City of Orange has determined that a unified and integrated radio communications system would improve the ability of public safety and public service agencies for communication and cooperation; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS THAT: That the City Manger is hereby authorized to enter into an Interlocal Agreement between Jefferson County, Hardin County, the Cities of Beaumont, Port Arthur, Nederland, Groves, Port Neches and Orange in accordance with Chapter 791 of the Government Code of the State of Texas for the South East Texas Regional Radio System. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 23rd DAY OF APRIL, 2012. ATTEST: ay Fergu n, City Clerk U a / 1yt V v J. a Bra, City Attorney r l R. A. Nugent, May r GCO,''10 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. May 14, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 councilmernber so requests, in which event the item will be removed from the Consent agenda and considered separately. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -d as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—April 23, 2012 regular meeting b. April 2012 Departmental Reports c. Financials: Tax Assessor Collection Report - April 2012 d. Payments: • April 2012 monthly bills • Walker Partners - $3,687.85, 2010 Water System Improvements project • Allco, Inc. - $78,335.27, 2009 Sewer Rehabilitation project • Allco, Inc. - $53,194.74, Nederland Water Treatment Plant Repairs/Improvements project • Carroll & Blackman Inc. - $816.84, Phase II MS4 Permit Implementation Services REGULAR AGENDA a. Mayor Nugent presented a Proclamation to Regina Tate with Curves, recognizing May 13-19, 2012 as National Women's Health Week in Nederland. Ms. Tate thanked the council for their support and informed of the events planned throughout the week in this celebration. A motion was made by Councilmenmber Albanese and seconded by Councilmember Austin to approve a Proclamation recognizing May 13-19, 2012 as National Women's Health Week in Nederland. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, May 14, 2012 en,ec?7i b. Requests: i. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve a request from Keith Barrow to utilize the Nederland Recreation Center gym for Nederland Soccer Skills Camp. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Mayor Pro Tem Rogers and seconded Councilmember Albanese to approve a request from Adaptive Sports for Kids, Inc. to utilize the Nederland Recreation Center for TaeKwonDo classes and to utilize the soccer field for soccer. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Rogers to approve Resolution No. 2012-06, ratifying the action of the Nederland Economic Development Corporation related to the incentive offered to Channel Safety and Marine Supply, Inc. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Rogers to authorize the Nederland Fire Department to submit a Port Security Grant application. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to authorize the solicitation of bids for sewer service lines as part of the Texas Community Block Grant Program Contract 710489. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to award a bid in the amount of $905,577.75 to Allco, Inc. for the 18th Street Waterline Replacement project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. Chris Duque, City Manager, explained that staff was authorized to solicit Request for Qualifications for engineering services related to a water distribution line replacement/improvement project to be funded with 2011 certificates of obligation. Six engineering firms submitted proposals and were ranked by staff. Schaumburg & Polk, Inc.'s proposal received the highest score by each employee ranking the RFQs. He added that once the engineer is selected, that a contract price will be negotiated with the awarded engineering firm. If a negotiated price cannot be agreed upon then staff would move to the second highest ranked firm and so forth. Mayor Nugent inquired about the scoring system and stated he was not happy with the process used to select the engineering firm. Cr.-OC72) Minutes Continued, May 14, 2012 r Mayor Pro Tem Rogers also questioned the process and the qualifications of the ranking committee. Mr. Duque addressed these concerns noting that the Council approved the scoring criteria when the Council approved the RFQ in January 2012. Mr. Duque also noted the qualifications of the staff he selected to rank the RFQs. The consensus of the council was to select: 2 other staff members to rank the proposals and bring back to council on May 21, 2012. A motion was made by Mayor Pro Tem Rogers and seconded by Councilmember Albanese to postpone the selection of engineering services related to a water distribution line replacement/improvements project funded by the 2011 certificates of obligation until May 21, 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. A motion was made by Councilmember Neal and seconded by Councilmember Austin to approve a payment to Severn Trent Environmental Services for additional costs exceeding contract baseline. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. L Chris Duque, City Manager, advised that the Texas Commission on Environmental Quality recommended the City of Nederland enter TCEQ's Sanitary Sewer Overflow Initiative after the issue with a sewer service. Steve Hamilton, Public Works Director, stated that the program would be based on guidelines and milestones the City sets for itself and on self -reporting of any overflow. One benefit of this program is that the City would not be fined by TCEQ for future unauthorized discharge if the City meets goals established in the Sanitary Sewer Overflow Initiative Plan. COMMUNICATIONS City Manager's Report: a. The second May council meeting will be Monday, May 215'. b. Update on various construction projects. Steve Hamilton reported that the County awarded the Avenue H street project to APAC. The Pre -construction meeting is scheduled for May 24`h. He added that the sewer project is on the last segment and that clean-up has begun. The Water Plant project line portion is laid out and work is being done on the electrical conduit for the MCC unit. DD7 will be upgrading Main C in the N. 20'h and N. 22nd Street area. We are working with SPI on the 3 non-pipebursting segments that will need to be dug up and replaced. 6. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Austin to adjourn the meeting at 5:53 p.m. MOTION CARRIED. Minutes Continued, May 14, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. NugeA�Mayor City of Nederland, Texas ATTEST: Gay Ferguso City Clerk City of Nederland, Texas 1 Lj 73 000074 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor V V/ Talmadge Austin Council Member— Ward I Billy Neal Council Member— Ward II Don Albanese Council Member— Ward III V Bert Rogers Council Member —Ward IV Chris Duque City Manager Gay Ferguson City Clerk V Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief Gary Collins Fire Chief V Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian v Emily Pope Human Resources Director Joni Underwood Executive Secretary � X61 R. X Nugent, a or hi ),� D/I Gayfergus , CityClerk May 14. 2012 Date 7 1 1 1 1 J. SHANE HOWARD TRX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON v'_' SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $82,547.25, represents all taxes collected for CITY OF NEDERLAND during the month of April 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 ri ` WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 3:00 p.m. MEETING May 21, 2012 The work session was called to order at 3:00 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas, for the purpose of considering the following items. See attached for quorum. 2. EMPLOYEE GROUP BENEFITS Ann Siverson, Kim Still, and Darren Bruton with Wells Fargo Insurance Services were in attendance to make recommendations to City Council regarding proposals received for employee group benefits including Long Term Disability Insurance, Life Insurance, Dental Insurance, and Medical Insurance. Darren Bruton explained that Request for Proposals (RFP) was sent to 18 companies for long-term disability insurance on April 5, 2012 with responses due on April 12, 2012. They received 5 quotes from the carriers in addition to the renewal from Lincoln Financial. Ten carriers declin,:J to quote and 2 carriers did not respond. Mr. Bruton recommended based on the response from the market for this RFP for long term disability insurance, that the City switch carriers and go with Mutual of Omaha. The package pricing discount provided to the city from Mutual of Omaha to offer life insurance and long term disability results in a 4.3% decrease in costs for the City's combined long term disability and life premium. Mr. Bruton reported that a RFP for life insurance was sent to 18 carriers with 10 declining and 2 not responding. Wells Fargo Insurance Services typically tries to obtain a package pricing discount to offer life insurance and long term disability with the same carrier. This package discount was obtained this year and Mr. Bruton recommended that the City switch carriers and go with Mutual of Omaha and take advantage of the discounted package. Mr. Bruton said that the RFP for dental was sent to 22 carriers with 9 quotes being received along with the renewal from Aetna, 8 declined to quote and the remaining did not respond. Wells Fargo Insurance Services recommended to City Council to switch carriers of dental to Humana which would offer a cost savings compared to the renewal from Aetna. The increased annual cost to the City to switch to the dental plan offered by Humana is $1,907.00 compared with $6,038.00 with the Aetna renewal. For medical insurance, Mr. Bruton advised that the RFP was sent to Aetna, Blue Cross Blue Shield of Texas, Cigna, Humana, United Health Care and TML. Aetna, Cigna and United Health Care declined on blended policies. Quotes for blended Pr,�n 7Minutes Continued, May 21, 2012 ". V,-. ' policies were received from TML, Blue Cross Blue Shield of Texas, and Humana. He continued that TML and Humana were the only quotes which were feasible to consider. TML's renewal was with a 7.12 percent increase and Humana would be a 22.3 percent increase with a $1,000 deductible where TML has a $750. Joey Mitchell, Retiree Insurance Committee Member, stated that most of the employees within his division would like to change but the price is too high. Terry Morton, Retiree Insurance Committee Member, reported that employees he represents had no major problems with TML but there were some issues. Ben Hanks, Retiree Insurance Committee Member, advised that employees he represents think that TML is bad if you have to use it. If you don't use it, there are no problems. 3. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 4:17 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. / U /1/Li"'art�- R. A. Nugent, ay or City of Nederl nd, Texas ATTEST: GnyFerus , City Clerk V City of Nederland, Texas 1 CC n78 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor V/ Talmadge Austin Council Member — Ward I I Billy Neal Council Member —Ward II V Don Albanese Council Member—Ward III V V Bert Rogers Council Member— Ward IV Chris Duque I City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief V I Gary Collins Fire Chief V Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian f, Emily Pope Human Resources Director Joni Underwood Executive Secretary v R. . Nugen a'yo r ay Ferg on, City ClIes- May 21. 2012 Date I 1 Cn-Irn 13 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. May 21, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Mayor Pro Tem Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes—May 14, 2012 regular meeting Consider action approving Resolution No. 2012-06, ratifying the action of the Nederland Economic Development Corporation related to the .incentive offered to Channel Supply and Marine Supply, Inc. Payments: • Walker Partners - $6,504.42, 2010 Water System Improvements project • Schaumburg & Polk, Inc. $3,275.00, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $770.00, 2011 Wastewater Line Replacement project • Schaumburg & Polk, Inc. - $9,900.52, 18th Street Waterline Replacement project 4. REGULAR AGENDA a. Gay Ferguson, City Clerk, administered the Oath of Office to R. A. Nugent, Mayor; Billy Neal, Councilmember Ward II; and Bert Rogers, Councilmember Ward IV. b. A motion was made by Mayor Nugent and seconded by Mayor Pro Tem Rogers to elect Councilmember Neal Mayor Pro Tempore in accordance with Section 3.06 of the City Charter. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, May 21, 2012 c. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember 1 Austin to approve the Marion & Ed Hughes Public Library's Technology Plan for FY 2012 - 2015. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve an Interlocal Agreement with the cities of Port Neches and Groves and Jefferson County for the purchase of radio equipment and upgrades with 2007 Port Security grant funds. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to enter negotiations with Schaumburg & Polk, Inc. for professional services relating to a water distribution line replacement/improvement project to be funded by the 2011 certificates of obligatin. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. The regular meeting was recessed at 4:44 by Mayor Nugent for the purpose of conducting a City of Nederland Employee Benefits Trust meeting to award bids for life/long-term disability, dental, and health insurance. g. The regular meeting was reconvened at 5:17 by Mayor Nugent. h. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to authorize the transfer of funds from the City of Nederland to the City of Nederland Employee Benefits Trust to pay for employee -related benefits. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. i. Chris Duque, City Manager, explained that the City has reviewed its retiree health insurance benefit, with the help of a 5 -member employee Retiree Insurance Committee over the previous 2 years. He added that the original recommendation presented to City Council in January has been reviewed after insurance bids were received and the following recommendations are being made to the Retiree Insurance Benefit policy for City Council consideration. • Retain "blended" health insurance plans • Adjusting the current sliding scales benefit to a flat -rate contribution • Adjusting eligibility requirements for future retirees; employees hired after October 1, 2012 would not receive the benefit • The policy revisions do not adjust dental or life insurance A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to postpone action regarding proposed amendments to the City's retiree insurance benefit policy until June. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 1 r 1 Minutes Continued, May 21, 2012 5. COMMUNICATIONS C City Manager's Report: a. Memorial Day City office closure - May 28`h. Garbage service will be delayed by one day. b. "Summer in the City" - Saturday, June g`h. Angela Fanette advised that Summer in the City will be from 10:00 a.m. to 8:00 p.m. at Doornbos Park. Activities will include an art festival, bands, farmer's market, kite flying, painting with a twist, pet contests, moon bounces, and 35 vendors. c. Miscellaneous - Cheryl Dowden updated the Council on the bond refinancing and reported the amount of savings to the City. Chris Duque stated that he would like to do a community survey during the summer to get feedback from citizens rating city services. 6. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Austin to adjourn the meeting at 5:40 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. MIA aW-116 P�_ I UA ayFergu n, City Clerk City of Nederland, Texas Al 5, R. A. Nugent ayor City of NedetYand, Texas CC, 0 v}32 CITY OF NEDERLAND _ QOUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor Talmadge Austin Council Member -Ward I Billy Neal Council Member- Ward 11 Don Albanese Council Member -Ward III V Bert Rogers Council Member- Ward IV V Chris Duque City Manager Gay Ferguson City Clerk 1� Jesse Branick City Attorney V Cheryl Dowden Director of Finance V Darrell Bush Police Chief Gary Collins Fire Chief Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director ,✓ V ` Joni Underwood Executive Secretary R. A. Nugent, yor G y Fergu n, ity Clerk LJ' Mav 21.2012 Date 1 Con -.-)33 RESOLUTION 2012-06 A RESOLUTION OF THE CITY OF NEDERLAND RATIFYING THE ACTION OF THE NEDERLAND ECONON11C DEVELOPMENT CORPORATION. . WHEREAS, the present and prospective right to gainful employment and general welfare of the people of Nederland require as a public purpose the promotion and development of new and expanded business enterprises; and WHEREAS, the existence, development, and expansion of business, commerce, and industry are essential to the economic growth of Nederland and to the full employments, welfare, and prosperity of its citizens; and WHEREAS, the means and measures authorized by the Texas Legislature and the assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic development are in the public interest and serve a public purpose in promoting the welfare of the citizens of the City economically by the securing and retaining of business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability; and WHEREAS, the citizens of the City of Nederland provided for the creation of the Nederland Economic Development Corporation by popular vote in a duly authorized election to serve the public purposes herein described; and ' WHEREAS, the Nederland Economic Development Corporation is authorized and empowered under applicable state law, its charter, bylaws and by board approval, to aid in the development of business enterprises by offering incentives to prospective new and expanding businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the action of the Board of Directors of the Nederland Economic Development Corporation (`Board") relating to project costs associated with Channel Safety and Marine Supply, Inc., in an aggregate maximum amount of not more than Fifty Thousand dollars ($50,000.00), in accordance with the terms and conditions as prescribed by the Board, is hereby ratified. PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 14a day of May , 2012 at which meeting a quorum was present and voting. R. A. Nugent, Ma r City ofNederland, Texas ATTEST: ft11__ Gay Ferg$on, City_064k City of Nederland, Texas ' APPROVED O FORM AND LEGALITY: Jesse rank Attorney Ci of Ne rland, Texas Cnt�rl PASSED AND APPROVED ON THE SECOND READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this _day of 2012 at which meeting a quorum was present and voting. R. A. Nugent, ayor City of Neder and, Texas ATTEST: C�iay Fergus ity Clerl City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: y Attorney Jeae;led, CTexas aSPECIAL MEETING OF THE CITY OF NEDERLAND EMPLOYEE BENEFITS TRUST 4:44 p.m. May 21, 2012 1. MEETING The meeting was called to order at 4:44 a.m. by Chairperson R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. APPROVAL OF MINUTES A motion was made by Trustee Rogers and seconded by Trustee Albanese to approve the minutes of the June 6, 2011 meeting of the Employee Benefits Trust as written. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers. Noes: None. 3. LONG-TERM DISABILITY A motion was made by Trustee Rogers and seconded by Vice -Chairperson Neal to award bids received for employee long-term disability insurance to Mutual of Omaha as recommended by Wells Fargo Insurance Services and the City of Nederland Insurance Committee. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers. Noes: None. 4. LIFE INSURANCE A motion was made by Trustee Austin and seconded by Vice -Chairperson Neal to award bids received for employee life insurance to Mutual of Omaha as recommended by Wells Fargo Insurance Services and the City of Nederland Insurance Committee. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers. Noes: None. S. DENTAL INSURANCE A motion was made by Trustee Albanese and seconded by Trustee Rogers to award bids received for employee dental insurance to Humana as recommended by Wells Fargo Insurance Services and the City of Nederland Insurance Committee. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers. Noes: None Minutes continued, May 21, 2012 6. HEALTH INSURANCE I Chris Duque, City Manager, said that City Council needs to consider "blending" or "unbiending" the retirees from the active employees before Wells Fargo Insurance Services can give a recommendation on the medical insurance. The TML blended cost increase would be $35,997 and Human blended would be $130,820.36. Mr. Duque said that the Retiree Insurance Committee, comprising of representatives from Public Works, Fire, Police and Administration, met and reviewed the quotes and options quoted for medical coverage. The committee was split on their recommendation at 1-1-1-1. Mr. Duque shared his concern that unblending would leave the retirees at a rate increase of 49 percent with TML versus a 77 percent increase with Humana. Mr. Duque recommended renewing with TML and maintaining the blended rates with an additional cost to the City of $41,197.92. He proposed maintaining the City's past practice of fully funding the Employee -Only with a cost increase of $28.30 a month. The City dependent contribution increases nominally above the employee only increase of $28.30 per month with the greatest increase to Family coverage. Mr. Duque acknowledged there have been a number of issues in the past with TML but he felt that switching to Humana would not be affordable for the employees, the city, and the retirees. He shared the Retiree Insurance Committee Member's concern that co-workers would not be able to maintain their dependent coverage by moving to Humana. ' Mr. Duque stated that staff, along with Wells Fargo Insurance Services, will place considerable effort to address employee/retiree issues as well as educating employees/retirees in regards to the benefits provided. A motion was made by Trustee Albanese and seconded by Trustee Austin to award bids received for employee health insurance to TML Intergovernmental Employee Benefits Pool as recommended by the City Manager. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Albanese, and Rogers. Noes: Trustee Neal. 7. ADJOURN There being no further business a motion was made by Trustee Rogers and seconded by Trustee Albanese to adjourn the meeting at 5:17 p.m. MOTION CARRIED. Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers. Noes: None. A)� / ) )'a,�, 4 417-- R. A. Nugent, Chadployee son City of Nederland Benefits Trust ATTEST: Don Albanese, Secretary City of Nederland Employee Benefits Trust 1 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. June ii, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -c as presented. MOTION L CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—May 21, 2012 regular meeting and work session b. May 2012 Departmental Reports c. Payments: • May 2012 monthly bills • Allco, Inc. - $77,022.60, 2009 Sewer Rehabilitation project • Allco, Inc. - $151,061.73, Nederland Water Treatment Plant Repairs/Improvements project 4. REGULAR AGENDA a. Phillip Klein presented the Nederland Volunteer Fire Department's 2011 Financial Report and IRS 990 Report. Mr. Klein thanked the City Council, staff, and citizens, on behalf of the Board of Directors of the Nederland Volunteer Fire Department, for their continued support. Mayor Nugent thanked the Volunteer Fire Department for their service to the citizens of Nederland. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember L Austin to accept the report from the Nederland Volunteer Fire Department regarding tax exempt status. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, June 11, 2012 b. Emergency Management: i. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to award bids to DRC and Phillips & Jordan for Debris Management Services, MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve a contract extension with Beck Disaster Recovery, Inc., for debris removal services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Rogers to approve a contract extension with Garner Environmental Services, Inc., for emergency response services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. Chris Duque, City Manager, explained that on May 14th, City Council authorized a payment to Severn Trent Environmental Services, Inc. in the amount of $19,613.36 for over baseline conditions. Shortly after payment was made, Mr. Goings informed the city that the administration fee was not included as outlined in the Wastewater Treatment Plant Operation and Maintenance Agreement. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a payment to Severn Trent Environmental Services, Inc. for an administrative fee. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve an agreement with Interface EAP for the employee assistance program. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve Resolution No. 2012-07, designating authorized signatories as required by the Disaster Recovery Grant Program. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Ordinance No. 2012-09, setting the just and reasonable rates for the Cost of Service Adjustment Clause to be charged by Texas Gas Service. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, lune 11, 2012 ocu",' 33 g. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tem Neal to approve a Renewal Agreement for Disposal Services Agreement dated August 1, 2005 and amended August 1, 2010 with Republic Services, Inc. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. Chris Duque, City Manager, reported that the City, along with a five -member employee Retiree Insurance Committee (RIC), over the past 2 years has been reviewing the retiree insurance benefit. In January of 2012, the RIC members unanimously recommended revisions to "unblend" the insurance plans (active employees would be on one plan while retirees will be placed in a pre -65 retiree pool). On March 12, 2012 Council advised staff to obtain insurance quotes for "blended" and "unblended" policies. Following the bid opening, the RIC members voiced their reservations on their earlier recommendation. Mr. Duque made the following recommendation to the retiree insurance policy: • Continue to utilize a "blended" health insurance plan where active employees and retiree health insurance premiums will be the same with the active employees subsidizing the reitrees' costs • Adjusting the current sliding scales benefit to a flat -rate contribution - retiree would receive a HRA in the amount of $7,675 • Adjusting eligibility requirement A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem L Neal to amend the City's retiree health insurance benefit policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. S. 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 551.072, Deliberations of Real Property. 6. RECONVENE The regular meeting was reconvened at 6:14 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATION City Manager's Report: a. 4T" OF July Fireworks Extravaganza at Doornbos Park. S. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Austin to adjourn the meeting at 6:24 p.m. MOTION CARRIED. 4 e vJv Minutes Continued, June 11, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. I Noes: None. 1'�J%!Y 151 R. A. Nugent, M r City of Nederlan , Texas ATTEST: C. y Fer4bson, City lerk City of Nederland, Texas 1 1 1 r ,qj),-11YZ_CW A.Nugen ayor erg on, dityy Cled' June 11, 2012 Date ABSENT CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor 'V Talmadge Austin Council Member— Ward I V V Billy Neal Council Member— Ward II Don Albanese Council Member—Ward III v Bert Rogers Council Member —Ward IV Chris Duque City Manager V Gay Ferguson City Clerk V Jesse Branick City Attorney v Cheryl Dowden Director of Finance V Darrell Bush Police Chief Gary Collins Fire Chief Steve Hamilton Director of Public Works / v George Wheeler Building Official Victoria Klehn Librarian V V Emily Pope Human Resources Director V Joni Underwood Executive Secretary ,qj),-11YZ_CW A.Nugen ayor erg on, dityy Cled' June 11, 2012 Date ABSENT 0002jz RESOLUTION 2012-07 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND AUTHORIZING THE CITY MANAGER AND FINANCE DIRECTOR TO SIGN DOCUMENTS RELATING TO A DISASTER RECOVERY GRANT THROUGH THE TEXAS GENERAL LAND OFFICE. WHEREAS, the City of Nederland has applied and received an award for funding through the Texas General Land Office for Non -Housing Community Development Block Grant funds in response to Hurricane Ike; and WHEREAS, the Nederland City Manager and Finance Director are designated to sign documents required by the grant; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT, the City Manager and Finance Director are authorized to sign documentation relating to the disaster recovery grant administered through the Texas General Land Office Round 2.2. PASSED AND APPROVED BY I HE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 11th DAY OF JUNE, 2012. ATTEST: Gay Ferg on, City CIEYk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Je se Bra c , City Attorney C ty of derland, Texas R. A. Nugent City of Neder and, Texas ORDINANCE NO. 2012-09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, F} TEXAS SETTING THE JUST AND REASONABLE RATES FOR THE COST OF SERVICE ADJUSTMENT CLAUSE ("COSA") TO BE CHARGED BY TEXAS GAS SERVICE ("TGS") FOR GAS SERVICE FOR CUSTOMERS IN THE CITY OF NEDERLAND, TEXAS; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE FOR THIS ORDINANCE. WHEREAS, on or about March 30, 2012, TGS filed a Statement of Intent with the City Clerk in Nederland, Texas requesting an annual rate increase of $316,304 for the South Jefferson County Service Area; and WHEREAS, TGS requested an effective date for the new rate schedule to go into effect with meters read on and after July 30, 2012; and WHEREAS, in order to exercise its exclusive original jurisdiction and property review the requested rates, it is necessary for the City to make a decision within 90 days of the March 30, 2012 filing, or by June 28, 2012, and WHEREAS, the City retained the Lawton Law Firm, P.C. to review TGS' rate request and make necessary rate recommendations to the City, and WHEREAS, on May 15, 2012, the Lawton Law Firm, P.C., filed a report with the City on this matter outlining the options available and making recommendations to the City; and WHEREAS, the Lawton Law Firm has recommended that the City approve the requested COSA annual rate increase as stated in the May 15, 2012 letter and report from the Lawton Law Firm. THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS HEREBY ORDAINS THAT: SECTION 1. The statements set out in the preamble to this ordinance are adopted herein as if set forth herein. SECTION 2. Based on the recommendations and review presented by the legal/rate consultant, Lawton Law Firm, whose report is attached, TGS' proposed $316,304 South Jefferson County System requested annual rate increase is adopted and the Company shall file tariffs with the City Clerk reflecting the South Jefferson County $316,304 annual rate increase. SECTION 3. As recommended by the Lawton Law Firm and proposed by TGS, the Company's authorized calendar year 2011 COSA revenue requirement is $8,434,775, or 3.75% higher than the 2010 revenue requirement. SECTION 4. The Company shall promptly reimburse the City's COSA review rate case expenses and may collect such expenses through surcharge based on Mcf usage. SECTION 5. The Company's Cost of Service Adjustment Clause is approved SECTION 6. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 7. This ordinance shall be effective immediately on passage. PASSED AND APPROVED 11TH day of JUNE, 2012. /zedMayor R.A. Nug t ' ATTEST: Gay FergLgon, City Cle CJJ�I'TR1�L� r,,.- �'f J -i J THE LAWTON LAW FIRM, P.C. 701 Brazos Suite 500 • Auatin, Texas 78701 • 512/322-0019 • Fax: 512/716-8917 May 15, 2012 Sent via e-mail Mr. D. E. Sosa Mr. James Black City Manager -City of Groves City Attorney — City of Groves 3947 Lincoln P.O. Box 3286 Groves, TX 77619 Port Arthur, TX 77643 Mr. Chris Duque City Manager -City of Nederland P.O. Box 967 Nederland, TX 77627 Mr. John Comeaux Interim City Manager -City of Port Arthur P.O. Box 1089 Port Arthur, TX 77641-1089 Mr. Andre Wimer City Manager -City of Port Neches 634 Ave C Port Neches, TX 77651 Mr. Jesse Branick City Attorney — City of Nederland 3120 Central Mall Drive Port Arthur, TX 77642 Ms. Val Tizeno City Attorney — City of Port Arthur P.O. Box 1089 Port Arthur, TX 77640 Mr. Pete Steele City Attorney — City of Port Neches 3120 Central Mall Dr. Port Arthur, Texas 77642 Re: Summary Report and Proposed Rate Ordinance, Texas Gas Service Company Proposed Annual Cost of Service Adjustment Dear Cities: Attached please find a Final Report and proposed Rate Ordinance related to the Texas Gas Service Company ("TGS" or "Company") annual Cost of Service Adjustment ("COSA") rate filing. As discussed below and in the attached Final Report, we recommend approval of the TGS COSA rate request and have provided a Rate Ordinance consistent with that recommendation. Please be aware approval must be completed by June 28, 2012, otherwise the COSA request is deemed not approved. 1 1 As you may recall, the Company filed this rate change request on March 30, 2012. The COSA I request is an annual request by the Company that measures the year to year cost changes. In this case the Company measures the cost change from calendar year 2010 to 2011. The Company has concluded that the overall cost increase supports an annual increase of $316,304 or 3.75% pursuant to the COSA tariff. ` ' The cost driver for the rate increase is primarily increased investment associated with the Company's ongoing pipe replacement program. As outlined in the attached report, we have reviewed the Company's data, calculations and workpapers, and conclude that the proposed COSA increase is correctly calculated. We recommend that the proposed COSA be approved and have provided a proposed Rate Ordinance. 1 If you have any questions or need additional information, please feel free to call. Sincerely, Dft"�, k Daniel J. Lawton ' The 2010 costs were $8,434,774; the calculated 2011 costs are $9,879,457 indicating an annual cost increase of $1,444,683. The COSA tariff limits or caps increases in 2011-2013 to 3.75% per year. Thus, 2010 cost of $8,434,774.3.75%=$316,304 for 2011. l0n,.1% �%)u 1 ATTACHMENT A I 1 THE LAWTON LAW FIRM, P.C. 701 Brazos Suite 500 • Austin, Texas 78701 • 512/322-0019 • Fax 512/716,8917 May 15, 2012 EVALUATION AND REVIEW OF THE TGS 2011 COSA FILING AND PROPOSED INCREASE On or about March 30, 2012, Texas Gas Service Company ("TGS" or "Company") filed with your City a Statement of Intent Application pursuant to the Cost of Service Adjustment Clause ("COSA") Rate Schedule. The Company makes a COSA filing each year on or before April 1, and the City has ninety days to take affirmative action to approve or modify the Company's proposed annual rate change. If no action is taken within ninety days, the proposed COSA rate ' adjustment is presumed denied. Given the March 30, 2012 filing date this year, Cities have until June 28, 2012 to take affirmative action to approve or modify the proposed annual COSA adjustment request. We have reviewed the Company's proposed COSA filing, calculations and workpapers. The following is a summary of the findings and recommendations: Summary and Recommendations • The Company's COSA filing is in compliance with the COSA Tariff; • The Company's COSA filing is correctly calculated and yields an annual system rate increase of $316,304, or 3.75% increase above the 2010 COSA revenue requirement of $8,434,775; • We recommend that each City approve the $316,304 COSA increase consistent with the attached proposed Rate Ordinance; and • The final rate action must be completed by June 28, 2012. Summary of COSA Filing Each year, around April 1, since 2008, the Company files a COSA request pursuant to Rate Schedule No. 1-1. The COSA request measures the year to year change in cost of serving the South Jefferson County Service Area, and any cost changes (up or down) from the previous year 0C�1� 11, °19 are included as a rate adjustment.' Any year to year COSA rate adjustment has historically been I limited to the annual change in inflation. Last year the 2010 COSA proposal resulted in a slight change in the COSA formula which resulted in temporarily changing the annual inflation (CPI) cap to a level or cap of 3.75%. The specific reason for the increase in the annual rate change cap is to accommodate the substantial increase in investment associated with the pipe replacement and safety program. The language of the COSA tariff was changed as follows: C. Components of Rate Adiustment For calendar years 2011, 2012 and 2013, the actual percentage change in the revenue requirement in any year shall not exceed 3.75%. The formula goes back to the CPI cap after 2013. Last year in the 2010 COSA case, the Company was allowed a $258,000 COSA increase to accommodate higher investment associated with pipe replacement program cost which was a negotiated amount between the Cities and TGS. It should be noted that the $258,000 represented about a 3.16% increase over the $8,176,774 2009 costs for a 2010 level of $8,434,774 or ($8,176,774 + $258,000). 1 The South Jefferson County Service Area includes the Cites of Groves, Nederland, Port Arthur and Port Neches. ' The reason for the annual COSA adjustment is to reduce the need for frequent, costly and often contentious rate proceedings. 1 1 000999 The Current 2011 COSA Reouest In this case the Company claims the cost of serving customers in the South Jefferson Service Area has increased as follows: TABLE 1 2011 COSA CALCULATION Thus, while the Company claims an annual cost increase of $1,444,683, the allowable cost increase is limited to a 3.75% cost adjustment or $316,304. We have reviewed all the underlying calculations, adjustments and workpapers and have concluded the Company has correctly calculated the COSA adjustment. To evaluate the reasonableness of the COSA change we evaluated the proposed $316,304 increase relative to what the Company could claim under other provisions of the Public Utility Regulatory Act ("PURA"). 2 Sum of lines 3-10 12 Months e COSA amount allowed last year 2010 Ended Description 12/31/11 1. Rate Base Investment $33,614,812 2. Rate of Return 8.58% 3. Required Return $2,884,151 4. Depreciation & Amortization $1,219,397 5. Taxes other than FIT $291,915 6. Distribution Expenses $1,663,175 7. Customer Expenses $1,176,611 8. Administrative & General $1,663,120 9. Interest on Customer Deposits $1,822 10. Federal Income Tax $979,267 11. Revenue Required / Cost to Serve $9,879,4572 12. COSA Amount 2010 $8,434,774 3 13. CLAIMED INCREASE $1,444,683 4 14. Amount allowed at 3.75% Cap $316,304 s 15. 2011 COSA REVENUES $8,751,0786 Thus, while the Company claims an annual cost increase of $1,444,683, the allowable cost increase is limited to a 3.75% cost adjustment or $316,304. We have reviewed all the underlying calculations, adjustments and workpapers and have concluded the Company has correctly calculated the COSA adjustment. To evaluate the reasonableness of the COSA change we evaluated the proposed $316,304 increase relative to what the Company could claim under other provisions of the Public Utility Regulatory Act ("PURA"). 2 Sum of lines 3-10 e COSA amount allowed last year 2010 4 Line 11-12 s Line 12*3.75% Cap e Line 12 + Line 14 000 _� 00 For example, PURA §104.301 Interim Adjustment for Changes in Investment authorizes a gas utility to file for interim rate adjustments based on the year to year changes in invested capital. The Company's use of the COSA tariff, rather than implementing PURA §104.301, has resulted in lower rates for customers. For example, applying PURA §104.301 to the change in the 2010 to 2011 investment results in the following calculation: Table 2 PURA §104.301 Cost Estimate Description Amount Source 1 Net Plant at 12/31/10 $32,068,258 Schedule 3 2010 Filing 2 Net Plant at 12/31/11 $37,895,685 Schedule 3 2011 Filing 3 Change in Net Plant $5,827,427 Line 2 - Line 1 4 Fixed Charge Rate' 16.776% From 2010 Filing 5 GRIP Increase $977,609 Based on the calculation of potential increases under PURA § 104.301, the proposed COSA increase of $316,304 is substantially lower than the $977,609 increase TGS could claim related to interim adjustments for changes investment. Given that the COSA is calculated correctly, the COSA is lowered by the 3.75% annual cap, and the COSA leads to a smaller annual increase than other provisions of PURR — the COSA increase is reasonable. The estimated annual impact of the $316,304 COSA adjustment to customers in the service area is as follows: Fixed Charge Rate based on 8.58% ROR grossed -up for FIT, depreciation and ad valorem taxes IJ 1 Annual City Impact Groves $49,049 Nederland $46,388 Port Arthur $169,205 Port Neches $42,133 Environs $9,530 $316,304 Fixed Charge Rate based on 8.58% ROR grossed -up for FIT, depreciation and ad valorem taxes IJ 1 1 1 1 Individual customer class impacts are estimated as follows: Class Annual Impact Residential $274,501 Commercial $29,929 Public Authority & Schools $8,979 Transportation $2,261 $315,670 The average customer monthly impacts on bills resulting from the proposed COSA increase are estimated as follows: Class Amount Residential $0.79 Commercial $2.18 Public Authority & Schools $3.95 Transportation $188.45 021 REGULAR MEETING OF THE CITY COUNCIL OF THE I CITY OF NEDERLAND 4:30 p.m. June 25, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance was lead by Councilmember Rogers. 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 Mayor Pro Tem Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes - June 11, 2012 regular meeting. b. Financials - Tax Assessor Collection Report - May 2012 C. Payments: • Walker Partners - $7,800.00, 2010 Water System Improvements project • Schaumburg & Polk, Inc. - $3,529.66, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $3,225.00, 18th Street Waterline Replacement project • Carroll & Blackman, Inc. - $591.50, Phase II MS4 Permit Implementation Services • Allco, Inc. - $139,525.79, Nederland Water Treatment Repairs/Improvements project 4. REGULAR AGENDA a. Appointments: L A motion was made by Councilmember Rogers and seconded by Mayor Pro Tem Neal to appoint Bill Cummins and Lanny Howell to the Zoning Board of Appeals and Board of Appeals with terms ending June 30, 2016. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Minutes Continued, June 25, 2012 Noes: None. L ii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to appoint Bob Smith, Mitchell Macon, Mike Spell and Bill Wills to the Construction Board of Appeals with terms ending June 30, 2014. MOTION CARRIED. Ayes. Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to re -appoint C. J. Schexnaider, Jack Porter, Mark Griffin, Scott Watjus and Mark Byars to the Planning and Zoning Commission with terms ending June 30, 2014. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iv. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to appoint Jerry McNeil to the Civil Service Commission with terms ending June 30, 2015. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a Letter of Understanding for Water Service with Chevron Pipeline Company. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. LNoes: None. S. EXECUTIVE SESSION The regular meeting was recessed at 4:44 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.074, discuss personnel appointments: City Clerk, Director of Finance, Police Chief, and City Attorney. 6. RECONVENE The regular meeting was reconvened at 5:23p.m. by Mayor Nugent. APPOINTMENTS A motion was made by Councilmember Rogers and seconded by Councilmember Austin to authorize the following appointments: Gay Ferguson, City Clerk; Cheryl Dowden, Director of Finance; Darrell Bush, Police Chief; and Jesse Branick, City Attorney. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. L U C L _141ibutes Continued, June 25, 2012 8. COMMUNICATION City Manager's Report: ' a. Construction Project Update - Steve Hamilton gave a brief update on the construction projects. The Water Plant switched over to the new electrical service and they are working now on replacing the gravity line. Sewer project is complete and the contractor is TV-ing the lines as required by the contract. The Notice to Proceed was issued for Monday, July 2, 2012, for the 18th Street Waterline Replacement project. b. City offices closed on Wednesday, July 4th for Independence Day. c. 4th of July Fireworks Extravaganza - Program will begin at 7:00 p.m. and the fireworks show will begin around 9:00 p.m. depending on sunset. 9. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Rogers to adjourn the meeting at 5:30 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugent, ayor City of Nederland, Texas ATTEST: .71 ay FergVson, City rklhi City of Nederland, Texas 1 1 )�) AY/_C)*�� R. A. Nugent, Mair Ga Fergu n, City Clerk June 25, 2012 Date CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor Talmadge Austin Council Member— Ward I `� 1 Billy_ Neal Council Member —Ward II Don Albanese Council Member— Ward III Bert Rogers Council Member— Ward IV (/ v Chris Duque City Manager 1 Gay Ferguson City Clerk V Jesse Branick City Attorney Cheryl Dowden Director of Finance 1 Darrell Bush Police Chief Gary Collins Fire Chief Steve Hamilton Director of Public Works George Wheeler Building Official V Victoria Klehn Librarian Emily Pope Human Resources Director / Joni Underwood Executive Secretary )�) AY/_C)*�� R. A. Nugent, Mair Ga Fergu n, City Clerk June 25, 2012 Date 0' ON CO2 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $92,183.15, represents all taxes collected for CITY OF NEDERLA.N'D during the month of May 2012. / J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 - FAX: (409)835-8589 1 1 SPECIAL MEETING OF THE CITY COUNCIL OF THE 01-10i 0 j ' CITY OF NEDERLAND 3:30 a.m. July 3, 2012 MEETING The special meeting was called to order at 2:00 a.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. EXECUTIVE SESSION The regular meeting was recessed at 2:01 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.072, Deliberations of Real Property. 3. RECONVENE The regular meeting was reconvened at 3:13 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 4. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Rogers to adjourn the meeting at 3:14 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ATTEST: day Ferg on, City CI k City of Nederland, Texas 1 Akfil 0� R. A. Nugent, M or City of Nederla , Texas _QC0108 NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick Cheryl Dowden �-Darrel`! Bush �cw�hr,,4ei Gary Collins Steve Hamilton George Wheeler Victoria Klehn Emily Pope �JoniUnderwood CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET TITLE Mayor Council Member— Ward I Council Member — Ward II Council Member— Ward III Council Member— Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary Atd R. A. Nugent, Ma I 61) Gay Ferg on, City Cler c Julv 3, 2012 Date PRESENT V tlV� V V ABSENT 1 1 1 1 1 8:30 a.m. 1. MEETING 2. 3. WORKSHOP OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 0r -1010a July 16, 2012 The workshop was called to order at 8:30 a.m. by Mayor Pro Tem Billy Neal at the Marion and Ed Hughes Public Library, 2712 Nederland Avenue, Nederland, Texas. See attached for quorum. PROPOSED BUDGET Chris Duque, City Manager, stated that each department will present their accomplishments, goals, and future needs to the Council relative to budgeting. Following each presentation Mr. Duque reviewed the proposed 2012-2013 budget for that department. The schedule was as follows: Library Fire Department Inspections Department IT Police Department Finance Parks Department Public Works Personnel City Manager/Other Funds 8:30 a.m. to 8:50 a.m. 8:50 a.m. to 9:25 a.m. 9:25 a.m. to 9:40 a.m. 9:45 a.m, to 10:10 a.m. 10:20 a.m. to 10:40 a.m. 10:40 a.m, to 10:50 p.m. 10:50 p.m. to 11:30 p.m. 1:00 p.m. to 1:30 p.m. 1:30 p.m. to 1:50 p.m. 1:50 p.m. to 2:50 p.m. A discussion was held after each department presentation. ADJOURN There being no further discussion the Workshop was adjourned at 2:47 p.m. by Mayor Pro Tem Billy Neal. ATTEST: Joni Underwc{ , Deputy City Clerk City of Neder nd, Texas � f aI/ illy Ne�Mayor Pro Telm City of Nederland, Texas 00-0 110 NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick Cheryl Dowden Darrell Bush Gary Collins Steve Hamilton George Wheeler Victoria Klehn Emily Pope Joni Underwood 6) -ti el a iF nd-�r— Will I 6tm SPC/I CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET TITLE PRESENT Mayor Council Member — Ward I Council Member — Ward II Council Member— Ward III Council Member— Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary L � Billy neal, Mayor Pro Tem I I Joni Underwood, Deputy City Clerk July 16, 2012 Date ABSENT J 1 n 1 REGULAR MEETING OF THE CITY COUNCIL OF THE 00-0111 CITY OF NEDERLAND 4:30 p.m. July 9, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance was lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -b as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. ' Noes: None. a. Minutes - June 25, 2012 regular meeting and July 3, 2012 special meeting b. Payments: • June 2012 monthly bills 4. REGULAR AGENDA a. Chris Duque, City Manager, reported that Aziz Maredia has submitted a request for waste water service at 8078 Beauxart Garden Road/Holmes Road. Mr. Maredia intends to build a meat market or neighborhood market on a location which is outside the city limits. He added that Aqua Texas has approved his request to receive City water and wastewater service. Mr. Duque recommended postponing action to allow Mr. Hamilton and Mr. Wheeler to further discuss this request with Mr. Maredia. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to postpone action regarding a request from Aziz Maredia for waste water service at 8078 Beauxart Garden Road/Holmes Road. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Neal to approve the Nederland youth Athletic League Utility Reimbursement ' policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 0�0'I? Minutes Continued, July 9, 2012 c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Resolution No. 2012-08, suspending CenterPoint's proposed rate increase. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. Contract/ Agreements i. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a work authorization with the LaBiche Architectural Group, Inc. for programming and probable cost services of various City facilities. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to approve a Commercial Service Agreement with Waste Management for recycling services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a Collective Bargaining Agreement with the International Association of Firefighters, Local 3339, MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. COMMUNICATION City Manager's Report: a. Budget Workshop is scheduled for Monday, July 16, 2012 at 8:30 a.m. 6. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Rogers to adjourn the meeting at 5:03 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugent, Vayor"Z City of Nederland, Texas ATTEST: aTlt , 0/1' "ot-G1 Jonit)nderwood, Deputy City Clerk City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET ' NAME TITLE PRESENT R. A. Nugent Mayor ✓ Talmadge Austin Council Member -Ward I Billy Neal Council Member- Ward II Don Albanese Council Member- Ward III ✓ Bert Rogers Council Member -Ward IV ✓ Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance ✓ ' Darrell Bush Police Chief J Gary Collins Fire Chief Steve Hamilton Director of Public Works ✓/ George Wheeler Building Official ✓ Victoria Klehn Librarian ✓ Emily Pope Human Resources Director ✓ Joni Underwood Executive Secretary ✓ AA A4�6 R. k Nugent, Moor ' Joni Und ood, DeputyCity Clerk July 9, 2012 Date O C' 13 ABSENT 0i'0111 11 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND ' 4:30 p.m. July 23, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor Pro Tem Billy Neal at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. Mayor Nugent joined the meeting by phone due to his recent surgery. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -d as presented. MOTION CARRIED. I Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—July 9, 2012 regular meeting b. June 2012 Departmental Reports c. Financials: Tax Assessor Collection Report - June 2012 d. Payments: • Carroll & Blackman Inc. - $331.75, Phase II MS4 Permit Implementation Services • Schaumburg & Polk, Inc. - $2,120.00, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $1,540.00, 18`h Street Waterline Replacement project 4. REGULAR AGENDA a. Proclamations: i. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a Proclamation in regards to DuPont Goodrich Federal Credit Union. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Albanese and seconded I Councilmember Austin to approve a Proclamation in regards to Celebration Women Equality Week. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, July 23, 2012 C�li �_iaJ ' b. Recognition of Retiree: Delia McKinley c. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to authorize the closing of Boston Avenue from Twin City Highway to 14th Street on August 11`h and the Saturday in October, once it is determined, from 9:00 a.m. to 4:00 p.m. for "Saturday on the Avenue" event. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve Resolution 2012-09, ratifying the action of the Nederland Economic Development Corporation related to an incentive offered to Imprint Studios/Excel Screenprinting. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. Chris Duque, City Manager, reported that the proposed project was for sanitary sewer connections of the multi -family residential units located at 1616 Highway 365 to be funded through the Texas Community Development Block Grant program contract number 710489. One bid was received which was significantly over budget. Due to the strict restriction on project completion there is not sufficient time to re -bid the project. Staff met with representatives of Waxman & Associates and the Texas Department of Agriculture and decided to complete sewer service lines for the single-family residential home project and unspent funds will be returned to the state. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to reject a bid in the amount of $349,800.00 from All Star Plumbing for sanitary sewer improvements on multi -family residential units located at 1616 Highway 365. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. Chris Duque, City Manager, stated that SAFER Grant is being submitted to the U.S. Department of Homeland Security for four (4) firefighter positions. This is a two (2) year grant that would pay 100% of the firefighters' salary and benefits with no retention requirement. If awarded the grant, the City would have the ability to reject the grant if the City finances do not support the acceptance of the grant. A motion was made by Councilmember Rogers and seconded by Counciimember Austin to authorize the submission of a SAFER grant to the U. S. Department of Homeland Security. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. Robert Sangster, Water Treatment Plant Supervisor, reviewed the 2011 Drinking Water Quality Report (Consumer Confidence Report) that was recently mailed to all customers. In accordance with EPA regulations all water suppliers are required to issue the CCR to all its customers on an annual basis. He added that the report shows that Nederland's water quality does not exceed maximum allowable levels for any contaminates. 000-1. 16 Minutes Continued, July 23, 2012 h. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a request from Sunoco Partners Marketing & Terminal L.P. ' for an ad valorem tax batement. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. i. Gary Graham, Walker Partners, was in attendance to discuss and answer questions regarding Change Order #3 requested for the Water Treatment Repairs/Improvements project. Items in the change order include: replacement of culvert crossing at Canal, removal of old piping around the new high service pumps, revision of the connection to the 10" water line on 22nd Street, cleaning and painting of above ground tank, and revision of tie-in of the 18" line at 12th Street. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve Change Order #3 (+$64,020.00), Nederland Water Treatment Plan Repairs/Improvements project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. S. EXECUTIVE SESSION The regular meeting was recessed at 5:15 p.m. by Mayor Pro Tem Neal for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.071, Consultation with City Attorney; and Chapter 551.074, ' discuss City Attorney and City Manager. 6. RECONVENE The regular meeting was reconvened at 6:11p.m. by Mayor Pro Tem Neal. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to increase the City Attorney's salary from $3,450.00 to $3,750.00 monthly. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 7. COMMUNICATIONS City Manager's Report: a. Update on various construction projects. Steve Hamilton reported that Schaumburg & Polk are working on closing out the Sewer project. Avenue H is shut down due to the manholes being too deep which was reported to the county. The next milestone for the Water plant is the tie-in. The water plant will have to be shut down for several hours to make the tie-in from the old connection to the new connection. Construction on the 18th Street water line project has begun. Gay Ferguson reported that contracts have been executed with the Texas , General Land Office for the Hurricane Ike Disaster Recovery Program. Schaumburg & Polk are awaiting their executed contract and engineering work will be able to begin. Minutes Continued, July 23, 2012 n1i7 8. ADJOURN There being no further business a motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to adjourn the meeting at 6:23 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ATTEST: adGay FerguVon, City Cler City of Nederland, Texas 1 1 Billy Neal, ayor Oro Tem City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor ✓By Phone Talmadge Austin Council Member— Ward I V Billy Neal Council Member— Ward II ✓ Don Albanese Council Member— Ward III Bert Rogers Council Member— Ward IV Ike Chris Duque City Manager ✓ Gay Ferguson City Clerk �✓ Jesse Branick City Attorney ✓ Cheryl Dowden Director of Finance ✓ Darrell Bush Police Chief ✓ Gary Collins Fire Chief ✓ Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director Joni Underwood Executive Secretary ✓ Billy Neal, Mayor Pro -Tem 64n on ay Ferg , City I k July 23, 2012 Date 1 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON 000, ".19 SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $60,795.62, represents all taxes collected for CITY OF NEDERLAND during the month of JUNE 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 00C'-1_'0 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND ' 4:30 p.m. CITY 6, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. , Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Neal. a. Minutes—July 16, 2012 special meeting; July 23, 2012 regular meeting b. Consider action approving Resolution No. 2012-09, ratifying the action of the Nederland Economic Development Corporation related to an incentive offered to Imprint Studios/Excel Screenprinting. c. Payments: • July 2012 monthly bills • Allco, Inc. - $79,356.72, Nederland Water Plant Repairs/Improvements project 4. REGULAR AGENDA a. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve Resolution No. 2012-50, authorizing the submission of a contract performance statement and budget amendment request for Texas Community Development Grant Program Contract 710489. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Neal. b. Budget: ' Chris Duque, City Manager, reviewed the proposed 2012-2013 annual budget. He stated the assessed taxable value decreased by 0.421% or $4,047,796 from $960,734,800 to $956,687,004 which would increase the effective tax rate due to decreased values. The General Fund is balanced with a total of revenues and Minutes Continued, August 6, 2012 expenditures equaling $8,968,500. The revenues and expenditures represent an ' increase of 1.2% compared to the amended FY 11-12 budget. The proposed budget includes a 3.5% COLA in all funds for all regular, full-time employees, including firefighters and police officers as per their respective Collective Bargaining Agreements. The Street Program will receive a total of $965,000; $250,000 for Street Improvements in the Street Department and $715,000 budgeted via the Street Improvement Fund. Mr. Duque noted that the budget includes $40,000 in the Computer System to purchase a Document Management tool for electronic recordkeeping; $145,000 for street lights; $27,000 for the Senior Citizen Center; $28,000 for Retiree Insurance to fund a flat rate contribution for new retirees; $20,000 for Retiree Accrued Compensation; $60,000 for Special Programs to pay youth athletic league reimbursements and fund Christmas on the Avenue, Trash Bash, and 4`h of July. The Water and Sewer Fund revenue and expenditures equal $4,294,600. Mr. Duque reported that revenues will remain flat and that no rate increase is being proposed. The Solid Waste revenues and expenditures equal $1,358,700. Green Waste Disposal costs were reduced due to the chipping program versus incineration. In the equipment fund $160,000 was allocated for the purchase of 2 Police Interceptors, repairs to NFD's Rescue 7, purchase a replacement truck for the city engineer, and purchase of replacement truck for Streets/Sanitation Supervisor; $22,000 has been budgeted for a Water and Sewer Department water treatment truck and $260,000 has been budgeted for a replacement trash truck. i. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve Resolution No. 2012-11, authorizing the City ' of Nederland Annual Budget for the fiscal year beginning October 1, 2012 and ending September 30, 2013, and calling for a Public Hearing to be held on August 20, 2012 at 4:30 p.m. for the purpose of discussing the proposed budget, as per Article VI of the City Charter. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Neal. ii. Chris Duque, City Manager, reported that current tax rate is $0.578, which is the lowest tax rate among mid and south county cities. The effective tax rate has been calculated as $0.591853 and the rollback rate has been calculated as $0.611256. Mr. Duque recommended that City Council consider adapting the effective tax rate of $0.591853 per $100 assessed valuation which is $0.013853 or 2.4% greater than the current tax rate. He explained that the tax rate increased due to the decreased assessed taxable values of $956,687,004, which represents a decrease of 0.421% or $4,047,796. The proposed FY 2012-2013 budget reflects conservative revenue and expenditures considering the difficult economic reality that we now face. He added that the proposed tax rate of $0.591853 does not necessitate public hearings and publications before adoption. He requested that City Council hold one public hearing to allow taxpayers to voice their opinions and/or concerns. No action is necessary. iii. A motion was made by Councilmember Albanese and seconded Councilmember Austin to adopt the budget and tax rate at 4:30 p.m. on September 10, 2012. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Neal. Minutes Continued, August 6, 2012 iv. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to authorize one Public Hearing at 4:30 p.m. on August I 20, 2012 to receive questions and/or comments regarding the proposed tax rate. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers, Austin, Albanese, and Rogers. Noes: None. Absent: Neal. 5. COMMUNICATIONS City Manager's Report: • The Chamber of Commerce is sponsoring a Back to School Bash on August 11th on Boston Avenue. • The Citizens' Survey will go out in the mail this week. • The Avenue H street project is 99% complete. There are minor issues left on the punchlist; one being the manholes. Remaining street improvement funds will go toward repaving of 29th Street between Avenue H and Highway 365. • There is a City Council workshop scheduled for August 13th at 2:30 • The Chamber of Commerce will hold their Chamber Coffee at City Hall on August 14th. 6. ADJOURN There being no further business a motion was made by Councilmember Rogers and , seconded by Councilmember Albanese to adjourn the meeting at 5:03 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Neal. )61�--,)Lao� R. A. Nugent, yor City of Nederland, Texas ATTEST: Gay Ferguson, City Clerk City of Nederland, Texas 1 1 1 1 OOG12� CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT I R. A. Nugent Mayor ✓ Talmadge Austin Council Member— Ward I I Billy Neal Council Member— Ward II ✓ Don Albanese Council Member —Ward III ✓ I Bert Rogers Council Member —Ward IV ✓ I Chris Duque City Manager V Gay Ferguson City Clerk I Jesse Branick City Attorney Cheryl Dowden Director of Finance Dade! -Bush �c4r Pc✓ %PY Police Chief Gary Collins Fire Chief (� Steve Hamilton Director of Public Works V George Wheeler Building Official Victoria Klehn Librarian ✓ Emily Pope Human Resources Director ✓ Joni Underwood Executive Secretary R. A. Nugent, G& Fergu9bn,`City Clerk Auoust 6, 2012 Date WORK SESSION OF THE CITY COUNCIL OF THE I CITY OF NEDERLAND 2:30 p.m. August 13, 2012 1. MEETING The work session was called to order at 2:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas, for the purpose of considering the following items. See attached for quorum. 2. FACILITIES Chris Duque, City Manager, reported that the Nederland Fire Department received a Port Security Grant in the amount of 2AM to construct an Emergency Operations Center and the purchase of supporting equipment. He reminded everyone that several Executive Sessions were held to discuss possible locations for a new fire station. Without much success, it was discussed building a new city hall and allowing Fire and Police to remodel the existing city hall spaces for a Public Safety Facility. Staff met with Bob Stegall, the grant contact, who informed city staff that the remodeling approach is acceptable and within grant guidelines. The City would have ' 2 years to encumber the money or to be under contract and that the Police Station remodel could be incorporated into the grant. In addition to the grant funding, funds would be allocated for the City Hall, and the match portion required by the grant. Mr. Duque went on to advise the Mayor and Councilmembers that "wishlists" for the 2 separate projects were drafted and forwarded to Mr. LaBiche who had been procured to do a feasibility study. The first cost estimates, received on July 9th, with all the "wishlist" items came in at $5,739,595.00. Staff reviewed the estimates and made cuts to bring the estimates in line with the proposed budget. The estimates received July 30th with revisions are $4,352,472.50. Don LaBiche, The LaBiche Architectural Group, went over the spreadsheet regarding City Hall, Police and Fire Stations. He reported that he met with both the Police Chief and the Fire Chief and talked about the relationships of the shared rooms. Both departments will share common areas such as training room, conference rooms and lobby. Mr. Duque stated that the city intended to hold training at the new facility; therefore, the Fire and Police Building would have more guests and bathrooms facilities would have to accommodate the guests. Mr. LaBiche responded that there would be adequate bathroom and shower facilities for both Fire and Police Departments. Bert Rogers asked if a growth factor has been considered for all facilities. Darrell Bush, Police Chief, said that his building allowed for some growth especially in the ' Patrol area. He did not anticipate much growth in the Detective Division for the next 5 - 7 years. Gary Collins, Fire Chief, added that a growth factor was considered in his plans. The 2nd dorm facility would accommodate growth but would also o0c.1� _�J Minutes Continued, August 13, 2012 accommodate emergency workers during emergency situations. Mr. Duque said if the airport frontage road develops, the city may need to consider a fire substation near that area in the future. Mayor Nugent asked what the proposed timeline is for the next steps. Mr. Duque reminded Councilmembers that this is a workshop and no action could be taken. He suggested that City Council consider an item on their next regular meeting scheduled for August 20, 2012 for The LaBiche Architectural Group to proceed with the necessary work on the city hall project. Mr. LaBiche estimated that a floorplan for city hall would be completed by the middle of September, bid documents ready in October, an award date in December, and 9 months for construction work. He also requested several council workshops to keep the council abreast of the progress. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 3:53 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 1 ATTEST: Gy Fergus t, City Clerk City of Nederland, Texas 1 ''44&4 .� R. A. ugent, ayor City of Neder nd, Texas 0Cil- 2)U I NAME R. A. Nugent Talmadge Austin Billy Neal Don Albanese Bert Rogers Chris Duque Gay Ferguson Jesse Branick . Cheryl Dowden Darrell Bush Gary Collins Steve Hamilton George Wheeler Victoria Klehn ' Emily Pope Joni Underwood R. A. Nugent, Ma ay Ferg on, City Cle c August 13, 2012 Date CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET TITLE Mayor Council Member - Ward I Council Member -Ward II Council Member- Ward III Council Member -Ward IV City Manager City Clerk City Attorney Director of Finance Police Chief Fire Chief Director of Public Works Building Official Librarian Human Resources Director Executive Secretary PRESENT Y V� V / V/ V Y ABSENT 1 1 1 CC: G_'_27 REGULAR MEETING OF THE CITY COUNCIL OF THE ' CITY OF NEDERLAND 4:30 p.m. August 20, 2012 MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -f as presented. MOTION ' CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—August 6, 2012 regular meeting b. July 2012 Departmental Reports c. Tax Assessor Collection Report - July 2012 d. Consider action authorizing the installation of a street light on 2512 Avenue D. e. Requests: • Consider action regarding a request from the Mid -County Noon Optimist Club to waive fees associated with the scheduled Cross Country Meet at Doornbos Park. • Consider action regarding a request from Brian English to utilize the Recreation Center gymnasium for a high school basketball league and a Fall tournament. • Consider action approving a request from Ridgewood Christian School to have a "Bike-A-Thon" at Doornbos Park. • Consider action approving a request from Twirl America to utilize the Recreation Center classroom for twirling classes. • Consider action approving a request from the Boy Scouts of America and the HAM Radio Club of Nederland for a "Jamboree on the Air" event at Cropo LeBlanc Park. • Consider action approving the street closure of N. 13"' Street from Nederland Avenue to Atlanta Avenue for a "Back to School Bash". f. Payments: • Carroll & Blackman, Inc. - $1,187.81, Phase II MS4 Permit Implementation Services t' L FzAtes Continued, August 20, 2012 4. REGULAR AGENDA a. Mayor Nugent presented a Proclamation to Amanda Yarborough, Gift of Life, ' recognizing the month of September 2012 as Ovarian Cancer Awareness Month in Nederland. Ms. Yarborough thanked the council for their time to issue this proclamation and getting the word out regarding Ovarian Cancer and awareness. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to approve a Proclamation recognizing September 2012 as Ovarian Cancer Awareness Month. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. Receive comments from Alyssa Rutty in regards to social media's impact on the community. Alyssa Rutty of 3159 Fellswood Lane in Port Neches requested to address the City Council regarding concerns of posts and comments on FaceBook. She stated that she is a business owner with 2 snow cone stands in Nederland and that comments on a FaceBook page titled "Good, Bad and Ugly" were made about her in a negative way. She went on to add that she was not allowed access to this page in order to defend herself. Mayor Nugent thanked her for coming to the meeting and expressing her concerns but City Council did not have control over free speech or any remarks on FaceBook. The City Attorney confirmed the Mayor's opinion. Chris Duque, City Manager, informed her that this was a private matter and she I should seek legal counsel. c. Wanda Hollier, Nederland Heritage Festival, presented grants from the Heritage Festival to the Parks & Recreation and Police Department. Mrs. Hollier thanked the City and commended the Police Department for the excellent service it provides during the Festival. She also commended the Parks Department for all the events being provided to the citizens. Chief Bush and Angela Fanette thanked Ms. Hollier for the generous donations. d. Chris Duque, City Manager, explained that Sunoco Partners Marketing & Terminals requested an adjustment on their utility bill due to a water leak. He reported that staff provided a "leak adjustment" of $5,325 on July 5`h and on July 27th he authorized waiving the late fee of $2,323.69 since Sunoco requested to come before Council for additional relief. Wayne Turner, Nederland Terminal Manager, petitioned relief from the sewer portion of the bill. He stated that a leak was found and they have no problem paying for the water. The leak was found at dock #5 which is near the river. Mr. Duque stated that this was a unique situation in that the leak was near the river, and the water leaked into the river and not through the city's sewer system. He advised if council should grant an additional adjustment, it should be only for industrial facilities. ' The item was tabled until Cheryl Dowden, Director of Finance, could research past bills for Sunoco. Minutes Continued, August 20, 2012 000129 e. A motion was made by Councilmember Rogers and seconded by Councilmember ' Austin to approve Resolution No. 2012-12, supporting a settlement in principle regarding the transfer of operational control of Entergy's transmission system to the Midwest Independent Transmission System Operator, Inc. in Public Utility Commission Docket No. 40346. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to authorize a work authorization with Carroll & Blackman, Inc. in regards to the Phase II MS4 Permit Implementation Services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. Mrs. Dowden researched past water bills for Sunoco and found the highest bill over a 6 month period was $3,684.98. Mr. Duque suggested if City Council wished to grant an additional adjustment to Sunoco, they take the difference between Sunoco's adjustment request and the highest sewer bill from the last 6 months and waive that amount. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to authorize an additional leak adjustment to Sunoco, only applicable for industrial customers in a unique situation. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ' g. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to receive the Quarterly Investment Report from the Finance Department. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to authorize issuance of a Request for Proposals for the city bank depository services. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. L The regular meeting was recessed and a Joint Public Hearing was called to order at 5:16 by Mayor Nugent for the purpose of receiving comments regarding the proposed City of Nederland Fiscal Year 2012 - 2013 Annual Budget. There being no further questions and/or comments, the Public Hearing was adjourned and the regular meeting was reconvened at 5:17 by Mayor Nugent. j. The regular meeting was recessed and a Joint Public Hearing was called to order at 5:17 by Mayor Nugent for the purpose of receiving comments regarding the proposed tax rate of $0.5918353/$100 assessed valuation for the fiscal year 2012-2013. ' Mayor Nugent announced the budget and tax rate will be approved on September 10, 2012 at 4:30 p.m. There being no further questions and/or comments, the Public Hearing was adjourned and the regular meeting was reconvened at 5:20 by Mayor Nugent. 0r 0 R_30 Minutes Continued, August 20, 2012 k. A motion was made by Councilmember Rogers and seconded by Councilmember ' Albanese to approve Ordinance No. 2012-10, utility rates and regulations. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 1. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a work authorization with the LaBiche Architectural Group, Inc. for a city facility project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. S. EXECUTIVE SESSION The regular meeting was recessed at 5:25 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; and Chapter 551.087, Deliberation Regarding Economic Development Negotiations. 6. RECONVENE The regular meeting was reconvened at 6:18 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is I necessary. 7. COMMUNICATIONS City Manager's Report: a. Construction Project Update. Mr. Hamilton reported the contractor is working on the MCC unit, pouring concrete for the vault and is in the process of making the final, temporary tie-in. The sewer project is complete and final paperwork is in process. Asphalt overlay on Avenue H is complete. The County has started chip sealing the streets which were previously approved. Asphalt overlay began on S. 29`h Street between Avenue H and Highway 365 and will be completed by the end of the fiscal year. S. AD30URN There being no further business a motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to adjourn the meeting at 6:35 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugent,FdyloFexas r City of Nederl ATTEST: U Gay Fergu n,�CjLt�Cjek City of Nederland, Texas 1 1 0�: ;.;.3 03 ' i_ V 7 1. CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor V Talmadge Austin Council Member - Ward I Billy Neal Council Member -Ward II Don Albanese Council Member -Ward III `V/ `V/ Bert Rogers Council Member- Ward IV v V Chris Duque City Manager Gay Ferguson City Clerk Y 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 V Victoria Klehn Librarian Emily Pope Human Resources Director V Joni Underwood Executive Secretary R. A. Nugent, *�or Gay FerguidonlCity Cler August 20, 2012 Date ABSENT 1 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON 0('C133 SUSIE JAMES CHIEF DEPUTY 1, J. Shane Howard, 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 $70,799.37, represents all taxes collected for CITY OF NEDERLAND during the month of JULY 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE - P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 00T.m ORDINANCE NO. 2012-10 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS ESTABLISHING WATER AND SEWER RATES, WATER METER DEPOSITS, WATER AND SEWER CONNECTION FEES, WATER AND SEWER MAINTENANCE FEES, TRASH REMOVAL, AND GARBAGE RATES, AND PROVIDING FOR THE ADDITION OF STATE MANDATED SALES TAX TO THE GARBAGE PORTION OF THE RATE, INSIDE AND OUTSIDE: THE CITY OF NEDERLAND, TEXAS, AND FURTHER PROVIDING FOR INTEREST PENALTIES, RE- CONNECTION CHARGES, TRANSFER FEES, AND RETURNED CHECK FEES AND REPEALING ORDINANCE NO. 2011-17. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: WHEREAS, a revision should be made in the rates for utility services now being charged by the City of Nederland, Texas, inside the city limits and outside the city limits. SECTION 1. Repeal of Previous Ordinances and Regulations. 1. All other ordinances and/or regulations governing City of Nederland (CITY) water and sewer service in conflict with this ordinance are hereby repealed when this ordinance takes effect, provided, however, the repeal of prior ordinances does not waive, excuse, or vacate any balances due for water services provided hereunder and the CITY may collect such balances due. SECTION 2. Water and Sewer Svstems. 1. The water system and sewer system are public utilities operated and maintained by the CITY. The systems shall be operated in accordance with ordinances and policies adopted by the CITY, State law, and/or Federal law. Subject to such requirements, the City Manager may make such reasonable regulations as to govern the water and sewer systems to ensure their continued operation. 2. For the purpose of this ordinance, the terms "water service" and "utility service" shall be inclusive of water service, sewer service, and garbage/trash services as provided by the CITY. 3. For the purpose of this ordinance, the term "customer' shall mean the person responsible for payment and/or all persons acting for him/her or by his/her direction. SECTION 3. Application for Water Service. Any person and/or business desiring to obtain water service from the CITY shall make application on a form supplied by the CITY. The application shall include: a) name of the individual to be responsible for the payment of utility service b) the social security number of the individual responsible for payment c) the driver's license number d) the applicant's employer e) the applicant's work telephone number f) address to be served ' g) address, if different from the service address, to which bills are to be sent h) home telephone number i) the signature of the individual responsible for payment j) proof of identification 00C 335 2. The person responsible for the payment of utility service shall agree that he/she will abide by all ordinances, rules, policies, and/or regulations governing water and sewer service provided by the CITY. SECTION 4. Installation of Service. 1. No private service lines shall be connected or tapped to any CITY water line unless a meter is installed by the CITY at that connection. 2. No private service lines shall be connected to any CITY sewer line unless the connection/tap has been made and/or approved by the CITY. 3. Not more than one (1) premise may be connected to any 1 water and/or sewer tap. Exceptions may, however, be granted to this stipulation for situations involving a master meter to serve apartment complexes, mobile home parks, etc. 4. No person shall make or permit to be made any subsidiary connection of another's premises with his/her water or sewer service. 5. If approved by the CITY, additional water services may be provided to residences and/or businesses for water to be utilized for purposes such as outside watering, swimming pools, etc. In this situation, water provided by such separate service will not be discharged through the CITY's sewer system. SECTION 5. Water Connection/Taps. 1. The CITY reserves the right to tap existing CITY water lines, set water meters, and require use of CITY taps and meters. 2. Any individual or business desiring a water tap shall make said request to the CITY. If said request, in the CITY's opinion, is beneficial to the CITY and/or does not endanger the existing water line and/or water system, the CITY shall provide all materials, labor and equipment to tap the existing water line. 3. The CITY shall make the final determination as to the location of the water tap. 4. The water connection fees are as follows: Inside City Outside City Asphalt Concrete (No Street Excavation) (No Street Excavadon) 3/4" Water Tap $ 350.00 $ 525.00 1" Water Tap 450.00 675.00 1 '/2 "Water Tap 650.00 975.00 2" Water Tap 1,400.00 2,100.00 Over 2" Water Tap Cost Cost x 1.5 If street excavation is required, the following fees will be assessed in addition to the fees listed above: Additional Cost for Street Excavations Length Asphalt Concrete 11-10, $200.00. $ 300.00 11' — 20' 375.00 550.00 21'— 30' 525.00 675.00 31'— 40' 700.00 875.00 . 000'36 41'- 50' 850.00 1,050.00 5. In return for payment of such fee, the CITY shall tap the existing CITY water line and install a water meter. The fee does not include the cost of the meter deposit as provided in Section 7. SECTION 6. Sewer Connection/Taos. 1. The CITY reserves the right to tap existing CITY sewer lines. 2. Any individual or business desiring a sewer tap shall make said request to the CITY. If said request, in the CITY's opinion, is beneficial to the CITY and/or does not endanger the existing sewer line and/or sewer collection system, the CITY shall provide all materials, labor and equipment to tap the existing sewer line. 3. The CITY shall make the final determination as to the location of the sewer tap. 4. The sewer connection fees are as follows: Length 8" depth/width or less Inside City Outside City $200.00 (No Street Excavation) (No Street Excavation) 4" Sewer Tap $200.00 $300.00 6" Sewer Tap 300.00 450.00 8" Sewer Tap 400.00 600.00 8" depth/width or more Inside City Outside City (No Street Excavation) (No Street Excavation) 4" Sewer Tap Cost Cost x 1.5 6" Sewer Tap Cost Cost x 1.5 8" Sewer Tap Cost Cost x 1.5 If street excavation is required, the following fees will be assessed in addition to the fees listed above: Additional Cost for Street Excavations Length Asphalt Concrete 11-10, $200.00 $ 300.00 11' - 20' 375.00 550.00 21'- 30' 525.00 675.00 31'- 40' 700.00 875.00 41'- 50' 850.00 1,050.00 SECTION 7. Water Meter and Garbaae Container Deposits. Gl 1 . In order to establish water, sewer, and garbage service, an applicant for said services shall be required to pay a deposit to the CITY in accordance with the following schedule (excludes residential rental property in renter/tenant's name): Inside Ci Outside City 3/4" and Smaller Water Meter $100.00 $100.00 ' 1" Water Meter 150.00 150.00 1 %" Water Meter 200.00 200.00 1 0 000137 1 1% " Water Meter 250.00 250.00 2" and Larger Water Meter 300.00 300.00 2. Residential Rental Property Deposit: In order to establish water, sewer, and garbage service, an applicant, who is not the property owner, for said services shall be required to pay a deposit to the CITY in accordance with the following schedule (excludes apartment complexes and duplexes without individual water meters for each unit): Inside Ci Outside City 3/4" and Smaller Water Meter $150.00 $150.00 1" Water Meter 200.00 200.00 Elevated Risk Account 250.00 250.00 Definition: Renter/Tenant/Property that has 2 disconnect/reconnect services for late or non-payment during the 24 months prior to setting up a new service. 3. In order to be provided with an additional garbage container, which shall be limited to one additional garbage container per account, an applicant shall be required to pay an additional deposit of $75.00. No deposit will be required if customer has paid his bill in full by the due date specified on each individual bill for a period of twelve (12) consecutive months immediately prior to the request for an additional garbage container. SECTION 8. Application of Deposit. 1. Upon the termination of water service, at the request of the customer, the deposit or any portion of the deposit remaining shall be returned to the customer when water and all other charges have been paid. 2. Current customers, who have service in their name, who continue to maintain utility service and who have, each month, paid their bill in full and by the due date specified on each individual bill for a period of 12 consecutive months shall, at their request, be refunded the full amount of their deposit. 3. Tenants, who rent residential property from a property owner that elected to not have service in their own name, shall be refunded the full amount of their deposit if they continue to maintain utility service and pay their bill in full and by the due date specified on each individual bill for a period of twenty-four (24) consecutive months. 4. Service accounts established for those individuals or residential rental properties classified as "Elevated Risk' shall not be refunded any portion of their deposit until water service is terminated. SECTION 9. Previous Service - Outstandinq Balance.. Any applicant requesting water service from the CITY who has previously had CITY water service and has, at the time of application, an outstanding balance on his/her previous water service must pay the outstanding balance in full in addition to the meter deposit prior to receiving new service. SECTION 10. Water Rates. The following monthly rates shall be charged for water service: Inside City Outside City First 2,000 Gallons (minimum)' $ 8.95 $ 13.45 Each additional 1,000 gallons— (up 2.55 4.30 to 50,000 gallons) Each additional 1,000 gallons 2.56 4.31 above 50,000 gallons Water Line Maintenance - 0.30 0.30 per 1,000 gallons (above minimum) Effective July 1, 2007, where water service is provided to multiple units served by one meter, the minimum rate for the first 2,000 gallons will be charged for each unit based upon ninety percent (90°/x) occupancy of the total number of units. Except as required by provisions of outside CITY contracts. SECTION 11. Sewer Rates. The following monthly rates shall be charged for sewer service: Effective July 1, 2007, where water service is provided to multiple units served by one meter, the minimum rate for the first 2,000 gallons will be charged for each unit based upon ninety percent (90%) occupancy of the total number of units. Except as required by provisions of outside CITY contracts. SECTION 12. Garbaqe Rates. All residences inside the CITY limits shall be required to use the CITY garbage service in accordance with the following schedule: Inside City Rates (per month) $ 17.25 + sales tax' Additional Container $ 5.25 + sales tax' Sales tax shall be in an amount required by law SECTION 13. Billinq and Penaltv. ' 1. All charges on utility service bills shall be due and payable to the CITY fifteen (15) days after the date the bill is mailed to the person responsible for payment. 2. If payment is not received by the sixteenth (16th) day, a ten percent (10%) penalty Inside Ci Outside City First 2,000 Gallons (minimum)' $ 9.10 $ 14.90 Each additional 1,000 gallons'* 3.00 4.45 ' (up to 50,000 gallons) Each additional 1,000 gallons 3.01 4.46 above 50,000 gallons Water Line Maintenance - 0.30 0.30 per 1,000 gallons (above minimum) Effective July 1, 2007, where water service is provided to multiple units served by one meter, the minimum rate for the first 2,000 gallons will be charged for each unit based upon ninety percent (90%) occupancy of the total number of units. Except as required by provisions of outside CITY contracts. SECTION 12. Garbaqe Rates. All residences inside the CITY limits shall be required to use the CITY garbage service in accordance with the following schedule: Inside City Rates (per month) $ 17.25 + sales tax' Additional Container $ 5.25 + sales tax' Sales tax shall be in an amount required by law SECTION 13. Billinq and Penaltv. ' 1. All charges on utility service bills shall be due and payable to the CITY fifteen (15) days after the date the bill is mailed to the person responsible for payment. 2. If payment is not received by the sixteenth (16th) day, a ten percent (10%) penalty shall be assessed. 3. Notwithstanding the provisions of 1 and 2 above, in accordance with Section 182.002 of the Texas Utilities Code, the 10% penalty shall not be applied to persons age 60 or older until the 25th day after the date on which the bill was issued, provided that such person has made a request for delay, presented reasonable proof of their age, and is a residential customer who has occupied, and shall continue to occupy, the entire premises for which a delay is requested. 4. Should the 15th day fall upon a weekend, holiday, or any day that the City Hall Building is closed, a grace period of two (2) days shall be granted. SECTION 14. Delinquencv - Termination of Service. 1. If full payment is not received by the CITY by the next date at which the water meter is read, a subsequent utility bill shall be mailed for the current reading plus the amount owed on the previous billing including the 10% penalty; this does not apply to residential rental property classified as "Elevated Risk." 2. If full payment is not received on the date on which the subsequent utility bill is due, all utility service shall be disconnected. A final written notice shall be mailed to the customer's premises on the Thursday following the due date indicating that services shall be disconnected on the Wednesday immediately following the issuance of such notice. 3. For all residential rental properties classified as "Elevated Risk," if full payment is not received by the CITY by the due date, all utility service shall be disconnected. A final written notice shall be mailed to the customer's premises on the Thursday following the due date indicating that services shall be disconnected on the Wednesday immediately following the issuance of such notice. SECTION 15. Re -connection Charqes. 1. Should utility service be discontinued due to non-payment of a utility bill, all funds due to the CITY, in addition to a re -connection fee shall be paid prior to reinstatement of utility service. The re -connection fee shall be $30.00 if reinstatement of utility service is requested during working hours (8:00 a.m. to 4:30 p.m., Monday through Friday). The re -connection fee shall be $100.00 if reinstatement of utility service is requested after working hours. If customer does not have a $200 deposit on file, he will be required to pay a deposit in addition to the account balance and reconnection fees before utility service is reconnected. 2. Should service be discontinued, the CITY shall install a lock on the water meter. Should the customer or any person tamper with the lock and damage it, a $50.00 fee shall be assessed. This fee shall be paid, in addition to all other charges, prior to reinstatement of service. 3. Should any person turn on water service, after the CITY has discontinued the service for non-payment, such action shall be considered a criminal offense. 4. Should a customer be repeatedly disconnected due to non-payment, the CITY may require the following: a) Payment for the delinquent bill in the form of cash, money order, and/or cashier's check. b) The CITY retains the option of requiring payment for utility bills by cash, money order, and/or cashier's check for all future utility billings. 5. If payment is made with a check returned insufficient funds due to the issuance of a disconnection notice, water will be immediately disconnected. SECTION 16. Transfer Fee. I A transfer fee, in the amount of $15.00, shall be assessed for transferring service within the CITY's utility service system. The current and final balance, if any, on the account transferred plus $15.00 will be added to the customer's new account. SECTION 17. Returned Check Fees. 1. Any customer who pays his/her utility bill with a check which is returned from the financial institution due to, but not limited to, insufficient funds and/or closed account shall be assessed a $30.00 fee. 2. The CITY may, at the request of the customer, re -run the check. If the check is accepted, the fee shall be waived. However, if the check continues to be returned, the CITY shall require that the bill be paid by cash, money order, or cashier's check. 3. The CITY retains the right to prosecute for returned checks in accordance with the Texas Penal Code. 4. If a check is returned unpaid due to the financial institution error, the financial institution shall submit written verification of such error. In this situation, the fee shall be waived. 5. Should a customer have more than two (2) checks returned due to insufficient funds and/or closed account within a period consisting of twelve (12) consecutive months, the CITY shall no longer accept checks from that individual for a period of 24 months. During the 24 month period, all payments shall subsequently be made in the form of cash, money order, and/or cashier's check. SECTION 18. TemDorary Service,. 1. Should a customer request ternporary service, no deposit shall be required, unless the customer is in arrears on other accounts. 2. The duration of such temporary service shall not exceed fifteen (15) calendar days. Customer shall be billed for actual usage. 3. Should the account become delinquent, the customer shall not be allowed to begin any new service until all delinquent monies are paid. SECTION 19. Failure to Receive a Bill. 1. All bills for utility service shall be rendered monthly in accordance with a schedule established by the CITY. The CITY shall exercise care in the delivery of utility bills, but is NOT responsible for the service provided by the United States Postal Service. 2. Failure to receive a bill shall not relieve the customer for payment of service received within the prescribed period nor exempt him/her from the responsibility imposed for delinquent accounts. SECTION 20. Deferred Pavments. 1. The City Manager and/or his/her designee shall be empowered to develop payment schedules should a customer be unable to pay his/her bill. The City Manager may not develop payment schedules should a customer be unable to pay his/her bill if ' the outstanding balance is greater than $500.00. 2. Should a customer not be able to pay his/her account by the due date, he/she must contact the CITY prior to the due date and request that a payment schedule be developed. On-CZ41 3. Should a customer not contact the CITY prior to the issuance of a disconnection notice, he/she shall be required to pay the entire amount of the bill in order to retain water service. 4. The customer and the CITY may develop a payment schedule which shall be documented on a form supplied by the CITY. This form shall include, but not be limited to, the following information: a) dates of future payments; b) amounts of future payments; and c) signature of the customer. Should the customer subsequently not comply with the payment schedule, water service shall be disconnected and shall not be reinstated until the full amount owed on the bill is paid. 5. In no case shall the CITY abdicate the right to refuse a payment schedule as presented by the customer. 6. If a customer fails to comply with the provisions of their payment schedule, he/she shall not be permitted to establish additional payment schedules until full payment has been received on the initial/existing payment schedules. SECTION 21. Sewer Adiustments. 1. The City Manager and/or his/her designee shall be empowered to make adjustments on utility bills when an investigation reveals that the meter charges are excessive in comparison to previous billings due to inadvertent misfortune or inadvertent damage to a customer's pipes and plumbing. Customer must show proof leak has been repaired before issuance of adjustment. 2. Any adjustments made to the utility bill shall be made to the cost for sewer service, including base rate and maintenance fee. An adjustment will be made based upon an average of six monthly bills during the previous six-month period. 3. In the event that water usage during the billing period exceeded 50,000 gallons, the cost of water shall be adjusted by one-third (1/3) of the excess water usage based upon an average of six monthly bills during the previous six-month period. Such an adjustment, however, shall only be made for those customers whose monthly bill averages less than 50,000 gallons based upon an average of the preceding 12 months. Any adjustment to the cost of water shall only be made if the customer provides verification that a leak existed and that repairs have been made. 4. In no case shall a sewer adjustment be granted if the CITY notified the customer of a potential water leak on his/her property. 5. Sewer adjustments will be limited to one per 12 -month period 6. A sewer adjustment will be granted the first time a swimming pool is filled upon construction. To be eligible for an adjustment, the customer must have a Building Permit issued by the City of Nederland Inspections Department. SECTION 22. Meter Tamroerinq. 1. It is unlawful for any person to turn on water to any premises from the CITY water system without first obtaining approval from the CITY. ' 2. It is unlawful for any person to connect water service to a premises after service has been terminated by the CITY. 3. It is unlawful to interfere with, disturb or damage in any manner or form any water meters, locks, cutoff valves, or other appliances of the CITY. The head of household or property owner involved shall be held responsible for the violation of this section. 4. Tampering fees of up to five hundred dollars ($500.00) shall be assessed where a meter has been interfered with, disturbed, or damaged. SECTION 23. Trash Removal Rates. 1. Trash blocking drainage - a service fee of $50.00 - $200.00 will be charged to the owner of the property when it becomes necessary to clear a ditch of trash and/or debris during, before, and/or after a rainstorm to prevent possible flooding. The fee shall be based upon the amount of work performed by the CITY. 2. Miscellaneous trash and/or debris, defined as green waste and/or any other bulky items not able to be piaced into the standard CITY garbage container, from empty (undeveloped or vacant) property must be hauled off by the owner or developer at their expense. 3. The CITY will provide collection of trash to customers receiving garbage service twice per month. The amount of trash removed shall be limited to four (4) cubic yards per collection. The CITY may charge an additional fee, no less than $5.00 per cubic yard per collection for quantities greater than four cubic yards. 4. Should an owner of property within the CITY request the removal of trash, the CITY may do so at a cost equivalent to the actual costs of personnel, equipment, and disposal fees. The amount of trash to be collected shall not exceed four (4) cubic yards at any one time. Such service shall be provided at the discretion of the CITY dependent upon such factors including, but not limited to, existing work load, and 1� scheduling. This provision shall not apply to the accumulation of trash due to work performed by contractors and/or individuals/companies hired by the property owners. SECTION 24. Validation. If any section, paragraph, subdivision, clause, phrase or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof other than the part so decided to be invalid or unconstitutional. This ordinance shall take effect October 1, 2012. PASSED AND APPROVED by the City Council of the City of Nederland, Texas at a special meeting this the 20TH day of AUGUST 2012. �J R. A. Nugent, Wayor City of Nederland, Texas ATTEST: ay FerguSbn, City Cler City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jess Branick ity Attorney City f Nede nd, Texas RESOLUTION NO. 2012-12 l% n n _I 43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, JOINING WITH OTHER ENTERGY SERVICE AREA CITIES IN SUPPORT OF A SETTLEMENT IN PRINCIPLE REGARDING THE TRANSFER OF OPERATIONAL CONTROL OF ENTERGY'S TRANSMISSION SYSTEM TO THE MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC. IN PUBLIC UTILITY COMMISSION DOCKET NO. 40346 WHEREAS, on or about April 30, 2012 Entergy Texas, Inc. ("Entergy') filed an Application for Approval to Transfer Operational Control of its Transmission Assets to the Midwest Independent Transmission System Operator, Inc. ("MISO") with the Public Utility Commission of Texas ("PUC" or "Commission"); and WHEREAS, MISO, as a regional transmission system operator, is an independent entity that exercises control over the regional transmission system and is intended to perform certain functions such as maintaining and managing reliability and providing for economic dispatch of generation resources. WHEREAS, Entergy has determined that the net benefits to Texas retail customers of Entergy from transitioning to MISO is approximately $170 to $225 million over the first ten years, or approximately $17 to $22.5 million per year on average. I WHEREAS, City has intervened at the Commission with the Steering Committee of Cities to review ETI's proposal and make certain recommendations regarding the public interest; and WHEREAS, the consulting expert retained by the Steering Committee of Cities recommends that a transfer of operational control of Entergy's transmission system to MISO is in the public interest so long as certain conditions are met; and WHEREAS, the consulting expert retained by the Steering Committee of Cities recommended that the transfer of operational control of Entergys transmission system must be conditioned on 1.) All Entergy Operating Companies join MISO; 2.) ETI receiving sufficient transmission rights (ARR allocations) to hedge against the congestion charges for importing current and future energy requirements into Texas; 3.) an analysis as to what modifications to the System Agreement would be necessary in order to permit the greatest reasonable benefits to be received from joining MISO to be accrued for Texas customers. WHEREAS, Entergy has agreed to the terms recommended by the Steering Committee of Cities as demonstrated by the attached Settlement in Principle ("Settlement"); and WHEREAS, the City of Nederland, Texas finds that transfer of operational control of Entergys transmission system to MISO is in the public interest subject to the conditions set forth in the Settlement; WHEREAS, the Entergy Service Area Cities' Steering Committee has authorized the approval of the attached Settlement and recommends settlement to the Cities; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. The statement and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The City of Nederland hereby reaffirms its support for the I settlement terms in the Settlement in Principle attached. Section 3. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 4. This resolution shall become effective from and after its passage. PASSED AND APPROVED this 20P day of AUGUST, 2012. R. . Nugent, Mayor City of Nederland, Texas ATTEST: Wxa42Q1C�J/xA- Gay Fergus , City Clerk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Je a Brani ity Attorney Ci of N erland, Texas I 1 V C'145 1 THE LAWTON LAW FIRM, P.C. 701 Brazos Suite 500 • Austin, Texas 78701 • 512/322-0019 • Fax: 512/716.8917 August 2, 2012 Mr. Richard Ferguson Mr. Tyrone Cooper City Attorney — City of Anahuac City Attorney — City of Beaumont 13201 Northwest Freeway, Suite 300 P.O. Box 3827 Houston, Texas 77040 Beaumont, Texas 77704 Mr. Kyle Hayes Mr. Paul Fukuda City Manager — City of Beaumont City Attorney — Bridge City P.O. Box 3827 260 Rachal Beaumont, Texas 77704 Post Office Box 846 Bridge City, Texas 77611 Ms. Dion Miller Mr. David Olson Interim 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 Mr. Kenneth Wall Mr. Mark Winberry City Attorney — City of Cleveland City Attorney — City of Conroe Olson & Olson P.O. Box 3066 Wortham Tower, Suite 600 Conroe, Texas 77305 2727 Allen Parkway Houston, Texas 77019 Mr. Felix Skarpa Mr, David Douglas Mayor — City of Dayton City Manager — City of Dayton 117 Cook Street 117 Cook Street Dayton, Texas 77535 Dayton, Texas 77535 Mr. James Black Mr. D. E. Sosa City Attorney — City of Groves City Manager — City of Groves BBVA Compass Bank Building P.O. Box 3286 3535 Calder Avenue, Suite 300 Port Arthur, Texas 77643 Beaumont, TX 77706 0, C 4 6 Ms. Tina Paez Ms. Melba T. Pourteau City of Houston Administration & Regulatory City of Houston Legal Department Affairs Department (ARA) P.O. Box 368, Houston, Texas 77001-0368 611 Walker, 10th Floor City Hall Annex, 4th Floor Houston, Texas 77002 900 Bagby Houston, Texas 77001-0368 Mr. Leonard Schneider City Attorney — City of Huntsville 2 Riverway, Suite 700 Houston, Texas 77056-1918 Ms. Elaine Allums Mayor Pro -Tem — City of Kountze P.O. Box 188 Kountze, Texas 77625 Mr. Bryan Fowler City Attorney — City of Montgomery 101 Old Plantersville Road Montgomery, Texas 77316 Mr. Cary Bovey Law Office of Cary L. Bovey, PLLC 2251 Double Creek Dr., Suite 204 Round Rock, Texas 78664 Mr. Jesse Branick City Attorney — City of Nederland 221 Hwy. 69 South, Suite 100 (office) Nederland, Texas 77627 Ms. Clasina Watson City Secretary — City of Oak Ridge North 27424 Robinson Road Oak Ridge North, Texas 77385 Mr. Rodney Price City Attorney — City of Pine Forest City Attorney — City of Rose City 215 W. Freeway Vidor, Texas 77662 Mr. Bill Baine City Manager — City of Huntsville 1212 Ave. M Huntsville, Texas 77340 Mr. Gary Broz City Manager — City of Liberty 1829 Sam Houston Liberty, Texas 77575 Mr. Brad Stafford City Manager — City of Navasota 202 E. Washington Navasota, Texas 77868 Mr. Christopher Duque City Manager — City of Nederland P.O. Box 967 Nederland, Texas 77627 Ms. Vicky Rudy City Manager — City of Oak Ridge North Oak Ridge North 27424 Robinson Road Oak Ridge North, Texas 77385 Mr. Shawn Oubre City Manager — City of Orange 803 W. Green Avenue, Room 201 Orange, Texas 77630 Mr. Tommy Gunn City Attorney — City of Pinehurst 202 S. Border Orange, Texas 77630 1 1 1 ' Mr. Joe Parkhurst City Administrator — City of Pinehurst 202 S. Border Orange, Texas 77630 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 Mr. Harry Wright City Attorney — City of Silsbee PO Box 186 Port Neches, Texas 77651 Mr. Larry Saurage City Manager — City of Sour Lake 655 W. Barkley St. Sour Lake, Texas 77659 Mr. Ricky E. Jorgensen City Manager — City of Vidor 1395 N. Main St. Vidor, Texas 77662-3726 Mayor Roy McDonald Mayor — City of West Orange 2700 Western Avenue West Orange, TX 77630 0 c0, ("' 14 7 Mr. John Comeaux Interim 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 Mr. Greg Smith City Manager — City of Shenandoah 29955 IH -45 N. Shenandoah, Texas 77381 Mr. Tommy Bartosh City Manager — City of Silsbee 105 South 3`d Street Silsbee, Texas 77656 Mayor Dorothy Welch City Attorney Leonard Schneider City of Splendora P.O. Box 1087 Splendora, Texas 77372 Mr. Guy N. Goodson City Attorney — City of Vidor P.O. Box 4915 Beaumont, Texas 77704-4915 Mr. Joe Alford City Attorney — City of West Orange 105 Market Orange, Texas 77630 Re: Entergy Texas, Inc.'s Anticipated Proceedings Regarding Joining MISO Steering Committee of Cities located in Entergy Texas, Inc.'s Service Territory: As you may recall, on or about April 30, 2012, Entergy Texas, Inc. ("Entergy") filed with the Public Utility Commission of Texas ("PUC" or "Commission") an application to join the Midwest Independent Transmission System Operator ("MISO"). Entergy anticipates that Texas customers could save in the range of $170 to $225 million of power production costs for the ten year time frame of 2013 to 2022. This translates to about $17 million to $22.5 million to Texas ' customers for each year. Cities intervened and filed testimony in support of the transfer to MISO so long as certain conditions were met. Cities consulting expert recommended that the transfer of operational control of Entergy's transmission system must be conditioned on 1.) All Entergy Operating Companies joining MISO, 2.) ETI receiving sufficient transmission rights (ARR allocations) to hedge against the congestion charges for importing current and future energy requirements into Texas, and 3.) an analysis as to what modifications to the System Agreement would be necessary in order to permit the greatest reasonable benefits to be received from joining MISO to be accrued for Texas customers. Today, Entergy has agreed to abide by the Conditions recommended by Cities' consulting expert, and we recommend Cities approval of the proposed Settlement in Principle. Attached is a proposed resolution supporting the Settlement in Principle. These resolutions will be filed with the Public Utility Commission of Texas to support the recommended transition to MISO. If you have any questions or need further information, please feel free to call. Sincerely, Daniel J. La2wton 1 Ono T19 ' RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF TEXAS, JOINING WITH OTHER ENTERGY SERVICE AREA CITIES IN SUPPORT OF A SETTLEMENT IN PRINCIPLE REGARDING THE TRANSFER OF OPERATIONAL CONTROL OF ENTERGY'S TRANSMISSION SYSTEM TO THE MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC. IN PUBLIC UTILITY COMMISSION DOCKET NO. 40346 WHEREAS, on or about April 30, 2012 Entergy Texas, Inc. ("Entergy") filed an Application for Approval to Transfer Operational Control of its Transmission Assets to the Midwest Independent Transmission System Operator, Inc. ("MISO") with the Public Utility Commission of Texas ("PUC" or "Commission"); and WHEREAS, MISO, as a regional transmission system operator, is an independent entity that exercises control over the regional transmission system and is intended to perform certain functions such as maintaining and managing reliability and providing for economic dispatch of generation resources. WHEREAS, Entergy has determined that the net benefits to Texas retail ' customers of Entergy from transitioning to MISO is approximately $170 to $225 million over the first ten years, or approximately $17 to $22.5 million per year on average. WHEREAS, City has intervened at the Commission with the Steering Committee of Cities to review ETI's proposal and make certain recommendations regarding the public interest; and WHEREAS, the consulting expert retained by the Steering Committee of Cities recommends that a transfer of operational control of Entergy's transmission system to MISO is in the public interest so long as certain conditions are met; and WHEREAS, the consulting expert retained by the Steering Committee of Cities recommended that the transfer of operational control of Entergy's transmission system must be conditioned on 1.) All Entergy Operating Companies join MISO; 2.) ETI receiving sufficient transmission rights (ARR allocations) to hedge against the congestion charges for importing current and future energy requirements into Texas; 3.) an analysis as to what modifications to the System Agreement would be necessary in order to permit the greatest reasonable benefits to be received from joining MISO to be accrued for Texas customers. WHEREAS, Entergy has agreed to the terms recommended by the Steering Committee of Cities as demonstrated by the attached Settlement in Principle ' ("Settlement"); and WHEREAS, the City of finds that transfer of operational control of , Entergy's transmission system to MISO is in the public interest subject to the conditions set forth in the Settlement; WHEREAS, the Entergy Service Area Cities' Steering Committee has authorized the approval of the attached Settlement and recommends settlement to the Cities; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF , TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The City of hereby reaffirms its support for the settlement terms in the Settlement in Principle attached. Section 3. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 4. This resolution shall become effective from and after its passage. PASSED AND APPROVED this day of 2012. ' ATTEST: 1 SETTLEMENT IN PRINCIPLE 0001.051 ' The following settlement in principle ("Settlement") is entered into to resolve all issues in controversy between Entergy Texas, Inc., ("ETI" or "Company"), the Staff of the Public Utility Commission of Texas ("Staff'), and any other party that agrees to this term sheet (together, "Signatories") in PUCT Docket No. 40346. The Settlement is subject to completion of a definitive written settlement agreement acceptable to the Signatories and issuance of a final order by the Public Utility Commission of Texas ("Commission") in Docket No. 40346 consistent with the Signatories' definitive written settlement agreement. 1. MISO Public Interest Determination and Other Statutory Requirements—Based on the terms and conditions set out in this Settlement, the Signatories agree that ETI's application to transfer operational control of its transmission facilities to the Midwest Independent Transmission System Operator ("MISO") Regional Transmission Organization ("RTO") meets the requirements of Sections 39.915(b) and 39.262(m) of the Public Utility Regulatory Act ("PURA") and is in the public interest, subject to all conditions stated in this agreement. The Signatories further agree that ETI has resolved any and all issues that could be raised in this proceeding concerning the application and implementation of PURA Section 39.457 as it concerns ETI's application in this docket and those contracts that are subject to PURA Section 39.457. 2. Timing and Extent of Entergy Operating Company Participation in MISO—ETI agrees that if all of the Entergy Operating Companies ("EOCs") do not join MISO by December 31, 2013, ETI will not transfer operational control of its transmission assets to MISO, without first making a new filing with the Commission pursuant to PURA Section 39.915 and allowing the Commission the statutory timeframe to issue a determination concerning that filing under PURA Section 39.915(b). 3. Status of Entergy System Agreement ("ESA") —As a condition of ETI joining MISO, and unless otherwise directed by the Commission, ETI agrees to give notice by October 31, 2013 to exit the ESA pursuant to Section 1.01 of the ESA, provided the following conditions are met: 1) issuance of a final order by the Commission in Docket No. 40346 determining that if ETI joins MISO, ETI's continued participation in the ESA is not in the public interest; 2) ETI has determined, by October 31, 2013, that all of the EOCs will be integrated into the MISO ' RTO by December 19, 2013. The Signatories further agree that for good cause shown the Commission may extend these deadlines. The Signatories agree to include in a Proposed r.7 SETTLEMENT IN PRINCIPLE 1, '. Order language supporting such conditions. The Signatories further agree that the notice to exit the ESA is subject to the following additional requirements: a. ESA Transition Study—The Signatories agree that the Commission will direct a study regarding the determination of the impact of ETI leaving the ESA and the earliest feasible date to do so (ESA Transition Study). ETI agrees that it will cooperate in providing requested input and data. The ESA Transition Study may include, but shall not be limited to, identification of options and recommendations for achieving an orderly transition out of the ESA and integrating into MISO including solving operational issues, economic impacts, contract issues, and optimal exit timing. The ESA Transition Study will be performed pursuant to the following requirements: i. The scope assumptions and parameters of the study will be established by the Commission, with cooperation of ETI, on an expedited basis, but on a schedule mutually convenient to ETI and Staff. ii. The ESA Transition Study will be performed by independent consultants selected by the Commission and paid for by ETI. ETI shall timely pay the ' reasonable costs of the services of such consultants as determined by the Commission. The amount that ETI shall be responsible to pay shall not exceed $750,000. ETI shall be entitled to seek recovery of these costs. ETI, Staff and Cities agree to support full and timely recovery in retail rates of the costs of the independent consultants, and the other Signatories do not oppose recovery of reasonable and necessary costs of the independent consultants as determined by the Commission. The ESA Transition Study will not be considered to represent the views of any specific Signatory. iii. The target completion date for the ESA Transition Study will be determined after the framework and scope of the ESA Transition Study are determined, but the date will be set so as to provide sufficient time for Commission review of the ESA Study prior to the October 31, 2013 deadline for ETI's issuance of notice to exit the ESA. 2 r` rt ., ,r. SETTLEMENT IN PRINCIPLE 1 J 3 IN ' iv. Upon submission of the ESA Transition Study for Commission review, within a reasonable period of time, ETI shall, and other parties may, file a response to the study and its conclusions. The Commission's consideration of the ESA Transition Study shall not affect its determination, subject to the conditions specified in this Settlement, that ETI's membership in MISO is in the public interest. b. ETI's notice to exit the ESA must be filed with and accepted by the FERC in order for it to be effective. 3 c. ETI agrees to not seek to rescind its notice to exit the ESA without the support of the Commission, and the Signatories further acknowledge in this connection that ETI's position is that the Company may not unilaterally rescind the notice once it is given and that Staff does not share that position. d. The Signatories acknowledge that Staff has continuing reservations regarding ETI's continuing participation in the ESA upon integration into MISO, and that the Commission may desire ETI to accelerate its exit from the ESA (or termination of the ESA). The Signatories agree that the provisions of this Settlement calling upon ETI to issue notice of exit from the ESA are not intended nor are to be construed as in any way diminishing any desire expressed by the Commission to bring about an earlier withdrawal of ETI from the ESA. Therefore, ETI further agrees to exercise reasonable best efforts to: i. engage the various Operating Companies and their retail regulators in searching for a consensual means of allowing ETI to exit the System Agreement prior to the end of the mandatory 96 -month notice period; ii. in addition to the study addressed in 3.a. above and in cooperation with the Staff, perform reasonable technical analyses to assist the Commission in its evaluation of the timing for exiting the ESA; iii. consult with the Staff on an ongoing basis regarding efforts to exit the ESA prior to the expiration of the 96 -month notice period. e. The Signatories agree that, if the Commission directs ETI to withdraw from the ESA, ETI may seek recovery in retail rates of its costs to effectuate that withdrawal. The ' Signatories reserve the right to contest such costs. 3 SETTLEMENT IN PRINCIPLE f. Schedule MSS -4 Contracts—Prior to December 31, 2012, ETI will provide to the ' Signatories its position on the effect of exiting the ESA on the Company's ESA Schedule MSS -4 contracts associated with the following EOC generating facilities: Sabine, Lewis Creek, Willow Glen, Nelson Units 3 and 4, Perryville, and Calcasieu (collectively, the "ESA Transition Study Contracts"). ETI's position on the ESA Transition Study Contracts may be considered in conjunction with the ESA Transition Study regarding the impact of ETI leaving the ESA and the earliest feasible date to do so. The Signatories reserve their right to take any position they may desire regarding the effect of exiting the ESA on the ESA Transition Study Contracts. For all other Schedule MSS4 contracts to which ETI is a party --which are River Bend, Carville, Dow, and EAI WBL--ETI's position is that exit from the ESA is not intended to affect the terms, pricing, or energy entitlements under these contracts, and the pricing under these contracts will continue to be based on a cost - based formula filed at and approved by the FERC. g. ESA Reporting—ETI agrees to file with the Commission the following reports and information regarding the ESA, with the details and timing of such reports to be determined in cooperation with the Staff; i. Monthly Intra -System Bill (which includes detail for each individual EOC's monthly payments and receipts under ESA Schedules MSS -I, MSS -2, and MSS -3); ii. MISO Settlement Statements; iii. A plan and periodic status reports regarding ETI's exit from the ESA; and iv. Filings made at the FERC regarding the ESA. 4. MISO Governance (E-RSC)—ETI agrees that as a condition of joining MISO it will support retention of the Entergy Regional State Committee's ("E-RSC's") current level of authority during the five year transition period (as defined in Attachment FF of the MISO tariff) in MISO as follows: a. The E -RSC shall retain authority to direct the EOCs, upon unanimous vote, to exercise their rights as Transmission Owners in MISO to add projects to the MISO Transmission Expansion Plan. ' 4 SETTLEMENT IN PRINCIPLE 00-C155 b. The E -RSC shall retain authority, upon unanimous vote, to direct the EOCs, as Transmission Owners in MISO, to propose to modify the usual MISO cost allocation methodology among the EOCs' transmission pricing zones with respect to new transmission projects, other than Multi -Value Projects ("MVPs"), that are situated entirely within MISO South, and are approved during the five year transition period for cost allocation that MISO proposed to FERC and that FERC has conditionally approved. Any modifications to the cost allocation methodology would require FERC approval. c. ETI further agrees that it will use reasonable efforts in working with the other Entergy Operating Companies (who ETI expects will work with their respective retail regulators) and the Commission in considering an extension of such authority beyond the five year transition period. 5. MISO Governance (OMS} --Provided that nothing in this agreement shall limit MISO's ability to expand upon or modify the implementation of the governance provisions herein as a result of the ongoing governance discussions in the MISO stakeholder process and among the OMS and ERSC, MISO agrees that prior to the expiration of the five-year transition period, it will file with FERC to provide the Organization of MISO States (OMS) with rights as follows: a. MISO will include alternative tariff sheets and justification proposed by the OMS in any cost allocation filing in which MISO seeks to amend or otherwise modify the regional transmission cost allocation methodologies or formulae, where OMS has an alternative proposal to a major element or elements of the MISO proposal. Inclusion of the alternative tariff sheets and justification proposed by the OMS will be contingent upon the alternative proposal meeting the qualifying circumstances set forth below: i. MISO is filing a new proposal seeking to amend the existing cost allocation methodology accepted by FERC for any of its regional transmission cost allocation methodologies. ii. At the conclusion of MISO's stakeholder process developing a proposal I seeking to amend the existing cost allocation methodology: 5 f J U SETTLEMENT IN PRINCIPLE 1. OMS disagrees with one or more components of the proposed MISO ' filing; 2. OMS provides an alternative approach to such component memorialized in the form of alternative Tariff provisions; and 3. The required supermajority or special majority of OMS members requests MISO to include the OMS's alternate Tariff sheets in MISO's filing seeking FERC acceptance of MISO's proposal referenced above. iii. If the qualifying circumstances are met, MISO will include the OMS's alternative proposal in MISO's section 205 filing to modify the cost allocation methodology. The OMS's alternative proposal will be included along with MISO's proposal in the MISO filing in the following manner: 1. The OMS's alternative proposal will be included in the filing in addition to, not in lieu of, the MISO proposal and will be identified as being requested by the OMS. 2. OMS is responsible for supporting the justness and reasonableness of their alternative proposal. ' 3. MISO will include such justification as well as any testimony or other supporting documentation provided by OMS in MISO's filing as so requested by OMS, contingent upon OMS providing any supporting language in a time frame that is consistent with MISO's schedule for the filing. iv. The inclusion of the OMS alternative proposal in MISO's filing is intended to ensure the OMS alternative proposal receives the same presumption as the MISO proposal and is subject to the same legal standard of review as the MISO proposal. b. MISO also agrees that, upon the integration of all Entergy Operating Companies, MISO will file with FERC to: L Expand the retail representation on the Advisory Committee to include a retail regulator from the E -RSC; 1 Z SETTLEMENT IN PRINCIPLE C) 5 ' ii. Create a new retail regulator committee that reports directly to the MISO Board of Directors ("Board") in the same way that the Advisory Committee and Transmission Owner's Committee reports to the Board today. c. MISO also agrees to codify the advisory role of the OMS regarding transmission planning. 6. MISO Cost/Benefit Review—The Signatories agree that the PUCT will conduct a supplemental review of ETI's continued MISO membership prior to the end of five years from the date that the Company achieves integration into MISO or December 31, 2018, whichever occurs first. In connection with this supplemental review, one year prior to that date, ETI will submit a filing that includes a study analyzing the costs and benefits to date of MISO participation and a forward-looking costibenefit analysis, which affords the opportunity for meaningful stakeholder input. a. MISO Costs/Benefit Periodic Reports—ETI agrees to work in cooperation with Staff to develop an appropriate framework for periodic analyses and reporting of the costs and benefits of ETI membership in MISO. ' 7. Auction Revenue Rights ("ARRs")—The Signatories agree that ETI will work with Staff, and receive stakeholder input, to analyze proposed MISO rule changes regarding ARRs to detemiine whether the proposed revisions to the rules for ARR allocations are expected to provide a reasonable allocation of ARRs to ETI, consistent with FERC standards. The Signatories further agree that the Commission's determination that the transfer of control to MISO is in the public interest shall be conditioned on the potential impact to ETI ratepayers of: a. the outcome of the proceedings for the establishment of MISO tariff and/or business practices, and/or FERC orders, addressing the manner in which ARRs can be nominated by ETI and the other EOCs and other Load Serving Entities in the Entergy footprint; and b. the projected ARR allocation to ETI. Based on its consideration of these matters, the Commission may take further action as it deems appropriate, including determining whether changed circumstances justify reconsideration of its public interest determination. 7 �J SETTLEMENT IN PRINCIPLE ARR Reporting—ETI agrees that it will share the results of its analysis of projected ' ARR allocations to the Entergy Operating Companies with the Staff, the Cities, and the outside counsel and outside consultant that have represented TIEC in Docket No. 40346, as Highly Sensitive information subject to the Docket No. 40346 Protective Order, after MISO files its proposed ARR tariff provisions with the FERC. ETI further agrees that it will consult with Staff on an ongoing basis, during the MISO stakeholder process and when the new tariff changes are filed for FERC review, to analyze the MISO ARR tariff and business practice changes to determine whether the proposed revisions are expected to provide a reasonable allocation of ARRs to the Company, consistent with FERC standards. 8. Cost Recovery—The Signatories agree that it is not necessary to address at this time cost recovery issues related to: 1) the level of ARR allocation received by ETI; or 2) the cost of transmission upgrades for integrating ETI into MISO, if any, which are not included in the Company's cost/benefit analysis in Docket No. 40346. The Signatories reserve their right to address such issues in a future appropriate rate setting proceeding. 9. Bundled Rate Exemption—ETI agrees that it will not unbundle transmission or seek to ' make changes to transmission service for retail ratemaking without prior PUCT approval. ETI, while it is a transmission owner in MISO, commits to take all reasonable steps to qualify for the exemption for bundled retail load from MISO Schedule 9 transmission charges under the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff. ETI also commits, while a transmission owner in MISO, to oppose any efforts by MISO transmission owners or others to modify the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff and/or the MISO Transmission Owners Agreement in a manner that would subject ETI to MISO Schedule 9 transmission charges for bundled retail load. 10. Transmission Congestion Reporting—ETI agrees that it will provide regular periodic updates to the Commission which detail its ongoing efforts, through its own transmission planning and its participation in the MISO transmission expansion planning process, to proactively identify, advocate and pursue construction of transmission upgrades that are reasonably forecasted to provide a net economic benefit toward reducing ETI's cost to provide reliable electric service to its retail customers. 8 1 00cJ59 SETTLEMENT IN PRINCIPLE ' It. SPS Acknowledgement—The Signatories acknowledge that Southwestern Public Service Company ("SPS") requested that the Commission use its membership in the SPP Regional State Committee and the MISO Organization of MISO States to encourage both SPP and MISO to investigate: 1) implementing a joint reserve sharing or contingency reserve co - optimization arrangement that would pool the resources of both SPP and MISO into a larger coordinated reserve sharing pool; and 2) modifying the existing SPP/MISO JOA to enable improved operational and planning coordination between SPP and MISO to accommodate ETI's membership in MISO. 12. Additional Provisions—After ETI joins MISO, it shall remain responsible and accountable for the operation of its systems, including but not limited to: the manner in which it participates in any MISO-administered market; how it offers its generation into the MISO Day Ahead and Real Time Markets; how it offers load into the MISO Day Ahead market; bidding and scheduling; any actions it takes to supply its retail loads; any actions it takes to procure fuel, capacity and/or energy; the prudent administration and management of its energy supply contracts; the prudent administration and management of its energy supply transactions with MISO; its obligation to ensure that the charges and credits received from MISO are correct and accurate; appropriate management of nominating ARRs, conversion to or use of FTRs and appropriate crediting of ARR and FTR receipts, and any resource adequacy market transactions. Staff shall have complete access to information and full rights to conduct audits of costs incurred by or credited to ETI and to conduct prudence reviews, as needed, in connection with these and related activities within ETI's control, including activities associated with transitioning to an operating within membership in MISO. These audits and prudence reviews rights are not intended to make ETI responsible for activities required by a valid FERC tariff and which are undertaken by MISO that are therefore beyond ETI's control. Ensuring that MISO charges and credits to ETI are correct and accurate, however, will be the explicit responsibility of ETI to the extent that it is reasonably possible for ETI to do so consistent with the information that is available to it. ETI must undertake all reasonable efforts to verify the correctness and accuracy of these charges and credits which will include all reasonable efforts to obtain the information necessary to verify the accuracy D n f U 0 SETTLEMENT IN PRINCIPLE of these charges and credits. ETI must also validate that the charges and credits it receives ' are being assessed pursuant to the MISO tariff. ETI shall provide Staff a list and description of the principles observed, practices and protocols utilized by ETI in its capacity and energy procurement, including but not limited to: the manner of offering in generation and bidding and scheduling load into the Day Ahead and Real Time Markets, ARR nominations and all other material aspects of any MISO- administered market interaction, when requested. ETI will maintain contemporaneous documentation of the activities listed in the previous sentence. The scope of the documentation and the extent to which each and every departure from established protocols must be documented and justified will be determined on a cooperative basis between Staff and the Company. This condition is not intended to alter FERC or Commission jurisdiction. Executed as shown below: Dated this _ day of August, 2012. PUBLIC UTILITY COMMISSION OF TEXAS STAFF to Date: August _, 2012 ENTERGY TEXAS, INC. 0 Date: August _, 2012 STEERING COMMITTEE OF CITIES SERVED BY ETI M Ll 1 SETTLEMENT IN PRINCIPLE C n c 16 1 Date: August _, 2012 MIDWEST INDEPENDENT TRANSMISSION SYSTEM OPERATOR, INC. m Date: August _, 2012 EAST TEXAS ELECTRIC COOPERATIVE, INC. m Date: August 2012 I SOUTHWESTERN PUBLIC SERVICE COMPANY Date: August _, 2012 0 Date: August _, 2012 m Date: August , 2012 1 11 0 1, —16 2 SETTLEMENT IN PRINCIPLE 0 Date: August _, 2012 12 1 1 1 REGULAR MEETING OF THE CITY COUNCIL OF THE O t! 1 c CITY OF NEDERLAND . 4:30 p.m. September 10, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -e as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—August 13, 2012 special meeting and August 20, 2012 regular meeting b. Reports - August 2012 Departmental Reports c. Consider action authorizing the installation of a street light on 832 Boston Avenue. d. Consider action authorizing the submission of the 2012 - 2013 grant application to the Wilton and Effie Mae Hebert Foundation. e. Payments: • August monthly bills • Walker Partners - $14,370.37, 2010 Water System Improvements project • Schaumburg & Polk, Inc. - $2,007.50, 2009 Sewer Rehabilitation project • Schaumburg & Polk, Inc. - $712.50, 18th Street Waterline Replacement project • Allco, Inc. - $39,553.25, 18th Street Waterline Replacement project 4. REGULAR AGENDA a. Mayor Nugent presented a Proclamation to Amanda Yarborough, Gift of Life, recognizing the month of October 2012 as Breast Cancer Awareness Month in Nederland. Ms. Yarborough thanked the Council for their continued support. She stated that screening is very important and reminded females to get mammograms through the Gift of Life or Baptist Hospitals. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Neal to approve a Proclamation recognizing October 2012 as Breast Cancer Awareness Month. MOTION CARRIED. 6 41 Minutes Continued, September 10, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a payment to Jefferson County - Avenue H Hot Mix Overlay project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to authorize the submission of an Amended Interlocal Cooperation Contract to the Texas Department of Public Safety. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to authorize the solicitation of bids for the "Repair and Painting of the Hardy Avenue Elevated Water Storage Tank" project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to approve Ordinance No. 2012-11, declaring certain utility accounts as uncollectable. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to approve Ordinance No. 2012-12, an appropriation ordinance adopting a budget in accordance with Article VII of the City of Nederland Charter. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. Tax Rate: Mr. Duque advised the tax rate is comprised of two components: 1) maintenance and operations and 2) debt service. He added that according to State tax law, it is necessary to set the property tax rate for maintenance and operations and interest and sinking fund (debt service) separately. L A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to set the maintenance and operation portion of the property tax rate at $0.390395 for FY 2012-2013. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to set the interest and sinking fund portion of the property tax rate at $0.201458 for FY 2012-2013. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iv. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Ordinance No. 2012-13, adopting the tax rate for fiscal year Minutes Continued, September 10, 2012 onn1.65 beginning October 1, 2012 and ending September 30, 2013. MOTION L CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. Policies/Procedures: i. A motion was made by Councilmember Austin and seconded by Councilmember Rogers to approve a 'Sponsor -A -Bench" policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve a "Softball Field Practice" policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to amend the Wage and Position Classification Plan - "Acting Status" pay. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iv. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to adopt a Clothing Allowance Standard Operating Procedure. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. V. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to amend the City of Nederland Personnel Policy manual. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. S. 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 551.071, Consultation with City Attorney; and Chapter 551.074, Annual Evaluation - City Manager Christopher Duque. ' IT-tgielZVA4,L4 The regular meeting was reconvened at 7:00 p.m. by Mayor Nugent. He announced there the consultation with the City Attorney was for information purposes only and no action is necessary for that item. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to tentatively approve a contract with the City Manager pending final review from the City Attorney. MOTION CARRIED. `; P 1 i444s Continued, September 10, 2012 Ayes: .Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 7. COMMUNICATIONS 1 City Manager's Report: a. National Night Out - October 9th b. Update on Facility projects - A meeting is scheduled with LaBiche and Associates on Thursday. S. ADJOURN There being no further business a motion was made by Councilmember Albanese and seconded by Councilmember Rogers to adjourn the meeting at 7:03 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugent,or Y City of Nederland, Texas ATTEST: Gay Fergus n, City CleNJ- City of Nederland, Texas 1 L 1 1 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET 000167 NAME TITLE PRESENT ABSENT / 11 R. A. Nugent Mayor V I ✓ Talmadge Austin Council Member - Ward I I ✓ Billy Neal Council Member- Ward II I ✓ Don Albanese Council Member -Ward 111 Bert Rogers Council Member -Ward IV V Chris Duque City Manager I Gay Ferguson City Clerk ✓ I Jesse Branick City Attorney �✓ I Cheryl Dowden Director of Finance ✓ I Darrell Bush Police Chief V ✓ Gary Collins Fire Chief V Steve Hamilton Director of Public Works ✓ l George Wheeler Building Official Victoria Klehn Librarian ✓ Emily Pope Human Resources Director I ✓ Joni Underwood Executive Secretary 90 1 R. A. Nugent, r Gay Fergu n, ity Clerk' September 10, 2012 Date 63 ORDINANCE NO. 2012-11 ' AN ORDINANCE ACCEPTING UTILITY ACCOUNTS RECEIVABLE CHARGE-OFFS IN THE AMOUNT OF $ 6,932.77 AS SHOWN IN ATTACHMENT "A" FOR THE YEAR ENDED 9-30-12 IN THE CITY OF NEDERLAND. WHEREAS, Generally Accepted Accounting Practices require that uncollectible accounts receivable be written off to reflect accurate revenues; and, WHEREAS, Based on auditor recommendations it is desirable to present uncollectible accounts to be charged off, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: Section 1. The City of Nederland's book of accounts of the Water Billing/Collecting Department are hereby corrected to reflect the following charge-offs for fiscal year 2011-12 in the amount of $ 6,932.77 as set forth in Attachment "A." Section 2. Charge-offs affected by this Ordinance are for accounting purposes only and are not to be construed as a release or forgiveness of indebtedness by the City. This provision shall in no way be construed to waive or discharge or dispense with the continued application of Section 106-32 of the Code of Ordinances concerning the accounts hereby affected. THAT this being an ordinance not requiring publication, it shall be effective from and after its passage. ' PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 10'h day of September, A.D., 2012. R1 flog R. Nu en 44ayor City ofNede and, Texas ATTEST: bot (4 '-*Q/1-C�1� Gay Few rg�usot� City Clerk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jes B FZ� y Attorney C' of , Texas ' 1 L ATTACHMENT "A" CITY OF NEDERLAND ACCOUNTS TO BE WRITTEN OFF FOR FYE 2011-2012 Account Number Amount 01-0070-03 52.48 O1-1400-06 153.84 02-0730-05 182.51 02-0980-17 63.19 02-1090-01 209.24 02-1952-04 86.54 02-2560-08 50.19 03-0750-00 234.88 03-0980-07 169.03 03-1240-05 166.64 03-2290-04 14.41 04-0065-05 37.00 04-0070-08 136.48 04-1160-00 82.83 04-4600-13 97.95 05-0590-01 74.10 05-0780-02 29.50 05-1030-04 20.11 05-3700-01 73.25 05-3910-17 75.98 06-1150-01 80.42 06-1300-08 85.35 06-2060-06 54.48 06-2420-04 15.10 06-2640.00 239.46 06-2740-01 90.85 06-2890-04 79.07 07-0100-18 10.58 07-0580-11 47.84 07-1590-18 126.76 08-1010-01 10.32 08-1770-02 84.62 09-1020-05 12.58 09-1030-07 35.70 10-0600-12 417.74 10-3510-00 169.40 11-1840-07 98.74 11-2540-02 87.68 11-3195-10 102.91 12-0640-19 18.49 12-1330-11 24.62 12-1540-07 184.82 13-0160-03 38.54 13-0890-05 45.51 13-0950-21 170.65 13-1020-02 70.63 13-1470-00 65.71 13-1700-10 146.42 13-2067-11 112.30 13-2070-20 36.13 Ot?v rl 0 ATTACHMENT "A" PAG 2 13-2123-05 12.69 14-0330-03 25.48 14-0750-00 217.87 14-1610-05 17.24 15-1060-02 190.87 15-1250-04 63.32 15-1840-00 20.15 15-2430-05 226.93 15-2500-05 20.79 16-0850-18 19.46 16-1280.04 23.09 16-1700-05 312.91 17-0010-08 122.03 17-0610-05 71.68 17-0863-08 10.28 18-0910-11 11.73 19-0310-10 152.52 20-0300-11 92.92 20-0320-08 47.97 20-0510-10 16.20 20-0910-02 73.25 20-2570-02 49.03 22-0970-07 110.38 22-2050-01 59.77 22-3045-02 28.91 23-0470-01 95.68 24-0340-02 66.05 TOTAL 6,932.77 1 1 1 1 1 1 00 0171 CITY OF NEDERLAND ORDINANCE NO. 2012-12 AN APPROPRIATION ORDINANCE ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR BEGINNING OCTOBER 1, 2012, AND ENDING SEPTEMBER 30, 2013, IN ACCORDANCE WITH ARTICLE VII, OF THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, in accordance with Article VII, Section 7.02 of the City Charter, the City Manager prepared and presented to the City Council a city budget itemizing estimated revenues and appropriations for the ensuing fiscal year beginning October 1, 2012 and ending September 30, 2013. WHEREAS, in accordance with Article VII, Section 7.05 of the City Charter, at the meeting of the Council at which the budget and budget message were submitted, the Council determined the place and time of the public hearing. On August 20, 2012, after notice was published, said Public Hearing was held by the City Council on the proposed budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: Section 1 - GENERAL FUND. That there be and is hereby appropriated the sum of Eight million, nine hundred eighty-six thousand, five hundred dollars and no cents ($8,986,500.00) to the General Fund for the payment of operating expenses and necessary capital outlay for the following departments and uses: a. City Council $17,655 b. Legal $65,870 c. City Manager $392,284 d. Finance $269,438 e. Personnel $188,858 f. Civil Service $4,100 g. City Hall $69,268 h. Police $3,023,980 i. Police -Prisoner Extra Help $50,178 j. Emergency Management $48,600 k. Fire $1,420,005 1. Fire Volunteers $15,700 m. Inspections $208,474 n. Public Works Administration $261,496 o. Street Department $1,038,262 p. City Shop $165,837 q. Parks & Recreation $512,691 r. Library $460,304 s. Other Requirements $773,500 Section 2 - DEBT SERVICE FUND. That there be and is hereby appropriated the sum of Two million, two hundred fifty-six thousand, five hundred thirty dollars and no cents ($2,256,530.00) to the Debt Service Fund for payment of principal and interest on outstanding City debt. Section 3 - WATER & SEWER FUND. That there be and is hereby appropriated the sum of Four million, two hundred ninety-four thousand, six hundred dollars. and no cents ($4,294,600.00) to the Water & Sewer Fund for the payment of operating expenses and necessary capital outlay for the following departments and uses: a. Water Treatment $1,297,869 O U C 172 b. Billing/Collections $344,902 c. Wastewater Treatment $748,032 d. Water & Sewer Distribution $945,044 , e. Other Requirements $958,753 Section 4 — SANITARY SEWER EVALUATION FUND(SSES). That there be and is hereby appropriated the sum of Twenty-five thousand dollars and no cents ($25,000.00) to the SSES Fund for the payment of operating expenses and necessary capital outlay. Section 5 - SOLID WASTE FUND. That there be and is hereby appropriated the sum of One million, three hundred fifty-eight thousand, seven hundred dollars and no cents ($1,358,700.00) to the Solid Waste Fund for the payment of operating expenses and necessary capital outlay. Section 6 - EOUIPMENT REPLACEMENT FUND -GENERAL. That there be and is hereby appropriated the sum of One hundred sixty thousand dollars and no cents ($160,000.00) to the Equipment Replacement Fund -General for the payment of necessary capital outlay. Section 7 - EOUIPMENT REPLACEMENT FUND -WATER & SEWER. That there be and is hereby appropriated the sum of Twenty-two thousand dollars and no cents ($22,000.00) to the Equipment Replacement Fund -Water & Sewer for the payment of necessary capital outlay. Section 8 - EOUIPMENT REPLACEMENT FUND -SOLID WASTE. That there be and is hereby appropriated the sum of Two hundred fifty thousand and no cents ($250,000.00) to the Equipment Replacement Fund -Solid Waste for the payment of necessary capital outlay. Section 9 - POLICE NARCOTICS FUND. That there be and is hereby appropriated the sum of Eighteen thousand dollars and no cents ($18,000.00) to the Police Narcotics Fund for the payment of operating expenses and necessary capital outlay. Section 10 -LIBRARY SPECIAL FUND. That there be and is hereby appropriated th I e sum of One hundred thirteen thousand, one hundred dollars and no cents ($113,100.00) to the Library Special Fund for the payment of operating expenses and necessary capital outlay. Section 11 - HOTEL/MOTEL FUND. That there be and is hereby appropriated the sum of Sixty-three thousand sixty dollars and no cents ($63,060.00) to the Hotel/Motel Fund for the payment of operating expenses. Section 12 — FIRE DEPARTMENT SPECIAL FUND. That there be and is hereby appropriated the sum of Twenty-eight thousand dollars and no cents ($28,000.00) to the Fire Department Special Fund for the payment of operating expenses and necessary capital outlay. Section 12 - PARKS & RECREATION SPECIAL FUND. That there be and is hereby appropriated the sum of Fifteen thousand five hundred dollars and no cents ($15,500.00) to the Parks & Recreation Special Fund for the payment of operating expenses and necessary capital outlay. Section 13 — COURT TECHNOLOGY FUND. That there be and is hereby appropriated the sum of Five thousand dollars and no cents ($5,000.00) to the Court Technology Fund for the payment of operating expenses and necessary capital outlay. Section 14 — STREET IMPROVEMENT FUND. That there be and is hereby appropriated the sum of Seven hundred fifteen thousand dollars and no cents ($715,000.00) to the Street Improvement Fund for the payment of operating expenses and necessary capital outlay. Section 15 - MID -COUNTY MUNICIPAL LEAGUE CENTRAL DISPATCH FUND. That ' there be and is hereby appropriated the sum of One million, seventy-eight thousand, eight hundred eighty-four dollars and no cents ($1,078,884.00) to the Mid -County Municipal League Dispatch Fund for the payment of operating expenses and necessary capital outlay. OnC173 THAT the foregoing appropriations for expenditures be adopted as the budget for the ensuing fiscal year beginning October 1, 2012 and ending September 30, 2013. ' THAT the City Council shall meet and adopt an Ordinance levying on the assessed valuation of the property within the City, subject to the provisions of the Charter and lawful exceptions given by State Law or City Ordinance, a rate of taxation on each One Hundred Dollars ($100.00) of valuation sufficient to raise the amounts estimated to be required in this annual budget less the amounts estimated to he received from fines, licenses, and other sources of revenue. THAT any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2012, shall be construed with and classified with Miscellaneous Revenue anticipated during the fiscal year beginning October 1, 2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council Contingency Account for purposes approved by the City Council THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed THAT the City Clerk shall file a true copy of this ordinance and said budget with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 THIS THE 10TH DAY OF SEPTEMBER, 2012. ATTEST: Gay Fergus City Clerk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jess BranicrldyTexas Attorney Ci of Ne 1 a0� R A. Nugent, Ma City of Nederland, Texas Or, r,' 7 4 ORDINANCE NO. 2012-13 ' AN ORDINANCE APPROVING THE TAX ASSESSMENT ROLLS FOR THE YEAR 2012, LEVYING AND ASSESSING TAXES FOR THE SUPPORT OF THE CITY OF NEDERLAND AND THE MUNICIPAL GOVERNMENT THEREOF; APPORTIONING EACH LEVY FOR SPECIFIC PURPOSES; AND PROVIDING FOR THE INTEREST AND SINKING FUND. WHEREAS, pursuant to the provisions of the Tax Code of the State of Texas, the tax assessment rolls to be used for the collection of taxes for the captioned year, wherein the value of all property situated within the City of Nederland, subject to ad valorem taxes for the tax year 2012, was fixed by Roland R. Bieber, Chief Appraiser of Jefferson County Appraisal District, at a total value of $1,030,587,040; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND: SECTION 1: - That the tax assessment rolls furnished by the City's Tax Assessor -Collector, based upon the certified roll furnished by Roland R. Bieber, Chief Appraiser of Jefferson County Appraisal District, at a total value of $1,030,587,040, shall become the tax assessment rolls of the City of Nederland for the year 2012, less all exemptions provided by either State Law or City ordinance in the amount of $73,900,036. SECTION 2: - That there is hereby levied for the current year, 2012, and there shall be collected for the use and support of the municipal government of the City of Nederland, and to provide interest ' and sinking funds for the fiscal year ending September 30, 2013 upon all property, real, personal, and mixed, within the corporate limits of said City subject to taxation, a tax of 59.1853 cents on each one hundred dollars ($100) valuation of property; said tax being so levied and apportioned to the specific purposes hereinafter set forth: (a) For the maintenance and support of the general government (General Fund), 39.0395 cents on each one hundred dollars ($100) valuation of property; and (b) For the Interest & Sinking Fund, 20.1458 cents on each one hundred dollars ($100) valuation of property as follows: For the purpose of paying interest and principal of Three hundred forty-seven thousand, eight hundred twenty-five dollars ($347,825.00) on the General Obligation Bonds, Series 2008, 3.5624 cents on each one hundred dollars ($100) valuation of property. For the purpose of paying interest and principal of One million, two hundred ninety- two thousand, two hundred fifty dollars ($1,292,250.00) on the General Obligation Refunding Bonds, Series 2010, 13.2350 cents on each one hundred dollars ($100) valuation of property. For the purpose of paying interest and principal of Three hundred twenty-six thousand, nine hundred thirty-two dollars and fifty cents ($326,932.50) on the Certificates of Obligation, Series 2012, 3.3484 cents on each one hundred dollars ($100) valuation of property. SECTION 3: - The Jefferson County Tax Assessor -Collector (who, pursuant to contract, is the Tax ' ' Assessor -Collector for the City of Nederland) is hereby directed to prepare Tax Statements and proceed with the collections of the 2012 taxable year, and the amounts collected shall be deposited in the Depository of the City of Nederland, to be distributed in accordance with this Ordinance. SECTION 4: - That if any provision, section, subsection, paragraph, sentence, clause, or phrase of this ordinance shall for any reason be held to be unconstitutional, void, or invalid, such invalidity shall not affect the validity of the remaining provisions of this ordinance; and to this end all provisions of this ordinance are declared to be severable. PASSED, APPROVED and ADOPTED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A REGULAR MEETING THIS THE 10th DAY OF SEPTEMBER, A.D., 2012. R A. Nuge ay., City of Nederland, Texas 1 ATTEST: ��rk ay Fergus City of Nederland, Texas APPROV AS TO FOPM A�1D LEGALITY: Je se B City Attorney ty of e erland, Texas 1 li V Q 17 6 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. September 24, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Albanese and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -e and removing the payment for LaBiche Architectural Group, Inc. from the consent agenda and placing on the regular agenda. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—September 10, 2012 regular meeting b. Tax Assessor Collection Report - August 2012 c. Street Closures: • Consider action authorizing the closure of Boston Avenue from 14th Street to 17th Street on October 9th from 5:00 p.m. to 9:00 p.m. for "National Night Out." • Consider action authorizing the closure of Boston Avenue from 14th Street to Twin City highway and the intersections of 12th and 13th Streets on Boston Avenue for the "Trunk -R -Treat' event on Wednesday, October 31St d. Consider action regarding a request from Laci Totels to utilize the Nederland Recreation Center gymnasium for a volleyball tournament. e. Payments: • Carroll & Blackman, Inc. - $1,908.83, Phase II MS4 Permit Implementation Services • Allco, Inc. - $192,211.89, Nederland Water Treatment Plant Repairs/Improvements project • LaBiche Architectural Group, Inc. - $3,512.41, City Hall project 4. REGULAR AGENDA a. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve the payment to LaBiche Architectural Group, Inc. pending additions and deletions to the contract and placing it into final form meeting approval of City Attorney. MOTION CARRIED. 1 1 1 Minutes Continued, September 24, 2012 O 177 Ayes. Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a Proclamation declaring Fire Prevention Week. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. The South County Breakfast Lions Club made a donation in the amount of $1,000 to the Nederland Parks & Recreation Department for the purchase of a park bench at Tex Ritter Park. Curtis O'Steen, President made the presentation to Angela Fanette, Parks Supervisor. Other Lion Club members present were Moe Cully, Joanne Cravens, Clarance Richards, and Allen Sturm. d. Angela Fanette, Parks Supervisor, reported on the success of the 2012 Swimming Pool Season. The Nederland Swimming Pool opened May 16, 2012 and closed on September 3, 2012. There were a total of 2,779 adult residents, 1,584 child residents, 987 adult non-residents, and 525 child non-residents. Ages 4 and under were not calculated as their visits were free. There were a total of 3 Family Movie Nights and 2 Special Events: Summer in the City and July Fireworks Extravaganza. A total of 252 swimming lessons were given. e. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tem Neal to authorize the purchase of playground equipment at Cropo LeBlanc Park and South 5`h Street Park. MOTION CARRIED: Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. Appointments: i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to appoint Jim McDaniel to the Zoning Board of Appeals and Board of Appeals for a term ending June 30, 2015. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ii. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tem Neal to appoint Craig Belaire to the Nederland Economic Development Corporation Board of Directors for a term ending September 30, 2014. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. iii. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Neal to appoint Larry Ducharme and Jim McNeill to the Nederland Economic Development Corporation Board of Directors for terms ending September 30, 2014. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to approve Resolution No. 2012-13, ratifying the action of the Nederland Economic Development Corporation related to the NEDC's participation in certain Minimum Revenue Guarantee requested by American Airlines to establish air service at the Jack Brooks Regional Airport. MOTION CARRIED. Minutes Continued, September 24, 2012 b Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. 0 i78 Noes: None. h. A motion was made by Councilmember Austin and seconded by Councilmember Rogers to approve an Agreement for Services with the Nederland Economic Development Corporation. MOTION CARRIED. Ayes: Mayor Nugent, Councilmerrbers Austin, Neal, Albanese, and Rogers. Noes: None. i. A motion was made by Councilmember Austin and seconded by Councilmember Rogers to approve the revised City Logo. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve Ordinance No. 2012-14, amending the Fiscal Year 2011- 2012 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. k. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to approve Resolution No. 2012-14, accepting the 2012 Port Security Grant. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. COMMUNICATIONS City Manager's Report: a. Construction Project Update - Steve Hamilton gave a brief update of the construction projects. 18`h Street Waterline project is completed and a pressure test is scheduled for Wednesday. Contractors are working on the high service pump station of the Water Plant project. The Sewer project is completed and final pay request will be on Council's next agenda. Asphalt Overlay on 29`h Street has been completed. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Counciimember Albanese to adjourn the meeting at 5:14 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. A. Nugen Mayor City of Ned land, Texas ATTEST: Gay FergAon, City CP rk City of Nederland, Texas 1 1 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET 0 0 017 9 NAME TITLE PRESENT ABSENT ✓ R. A. Nugent Mayor Talmadge Austin Council Member— Ward I Billy Neal Council Member — Ward II ✓ Don Albanese Council Member— Ward III ✓ Bert Rogers Council Member— Ward FV Chris Duque City Manager ✓ l Gay Ferguson City Clerk Jesse Branick City Attorney V l Cheryl Dowden Director of Finance V ✓ Darrell Bush Police Chief I+ps`(;_- fr Mmrlm Fire Chief Steve Hamilton Director of Public Works ✓ ✓ George Wheeler Building Official Victoria Klehn Librarian V Emily Pope Human Resources Director v Joni Underwood Executive Secretary V ` R. A. Nugent, yor Z A-, G y Fergus n, City Clerk September 24, 2012 Date ri r} �. 9 0���g,50N COGS J. SHANE HOWARD timet SUSIE JAMES TAXASSESSOR-COLLECTOR p�� CHIEF DEPUTY TEXAS STATE OF TEXAS COUNTY OF JEFFERSON I, J. Shane Howard, 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 $38,276.55, represents all taxes collected for CITY OF NEDERLAND during the month of AUGUST 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 1 r 1 1 ORDINANCE NO. 2012-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND AMENDING THE FISCAL YEAR 2011-2012 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2011-12 which adopted the Fiscal Year 2011-2012 City Budget; and, WHEREAS, the City Council deems it necessary to amend the current budget to adjust revenues and expenditures as set out in Attachment "A" attached hereto; and, WHEREAS, the 2011-2012 City budget states 'That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2012 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2011 and ending September 30, 2012, 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 2011-2012 is amended to allow for adjustments in reverlues and expenditures as set out in Attachment "A." ` THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. THAT the City Clerk shall file a true copy of this ordinance and said budget amendment with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 24t' DAY OF SEPTEMBER, 2012. R. A. Nugent, yor City of Nederland, Texas ATTEST: ' APPROVED AS TO FORM AND LEGALITY: �i Je a Br icli City Attorney OCC 182 BUDGET AMENDMENT REQUEST FISCAL YEAR: 2011-2012 DATE: September 24, 2012 DEPARTMENT: Various FUND: General (01) AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 01-0000-4120 Industrial In Lieu of Taxes 1,300,000.00 244,850.00 1,544,850.00 01-0000-4472 Pool & Recreation Bldg Fees 56,500.00 34,500.00 91,000.00 01-1100-6110 Salaries & Wages 5,940.00 5,940.00 01-1100-6126 Social Security - 450.00 450.00 01-1100-6317 Reimbursement 7,000.00 (5,400.00) 1,600.00 01-1100-6333 Training & Travel 7,000.00 (500.00) 6,500.00 01-1300-6115 Extra Help - 3,200.00 3,200.00 01-1300-6332 Postage & Freight 1,000.00 4,450.00 5,450.00 01-1300-6333 Training & Travel 4,500.00 300.00 4,800.00 01-1300-6337 Advertising/Publication 7,000.00 (2,000.00) 5,000.00 01-1300-6393 Contractual Services 35,000.00 (3,000.00) 32,000.00 01-1500-6110 Salaries & Wages 100,950.00 3,860.00 104,810.00 01-1500-6115 Extra Help 9,000.00 1,000.00 10,000.00 01-1600-6115 Extra Help 9,660.00 (7,480.00) 2,180.00 01-1600-6121 Group Insurance 11,110.00 80.00 11,190.00 01-1600-6347 Unemployment Insurance 10,000.00 (9,000.00) 1,000.00 01-1900-6220 Miscellaneous Supplies 1,250.00 800.00 2,050.00 01-1900-6341 Insurance General 15,650.00 (1,000.00) 14,650.00 01-1900-6349 Natural Gas 2,000.00 (1,000.00) 1,000.00 01-1900-6350 Bldgs/Structure Improvements 6,000.00 (4,000.00) 2,000.00 01-1900-6380 Janitorial Services - 7,600.00 7,600.00 01-2100-6110 Salaries & Wages 1,381,220.00 28,780.00 1,410,000.00 01-2100-6111 Overtime 190,000.00 40,000.00 230,000.00 01-2100-6116 Certification Pay 89,190.00 (11,190.00) 78,000.00 01-2100-6220 Miscellaneous Supplies 5,000.00 (500.00) 4,500.00 01-2100-6231 Wearing Apparel 22,000.00 (8,000.00) 14,000.00 01-2100-6265 Supplies/Minor Tools & Equipment 8,700.00 700.00 9,400.00 01-2100-6315 Computer System 10,000.00 16,000.00 26,000.00 01-2100-6341 Insurance General 21,050.00 810.00 21,860.00 01-2100-6343 insurance Motor Equipment 8,850.00 1,170.00 10,020.00 01-2100-6350 Bldgs/Structure Improvements 500.00 2,100.00 2,600.00 Net Effect to Fund Balance 3,320,130.00 343,520.00 3,663,650.00 JUSTIFICATION Budget amendments are necessary to ensure line -items operate in the 'black." Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: 1 f 1 BUDGET AMENDMENT REQUEST Qt?C-' g3 JUSTIFICATION Budget amendments are necessary to ensureline-items operate in the "black." Dept Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: FISCAL YEAR: 2011-2012 ScR(ember 24, 2012 'DATE: DEPARTMENT: Various FUND: Geperal (01) AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 01-2100-6384 Prisoner Cost 18,000.00 1,000.00 19,000.00 01-2100-6391 Support of Animal Shelter 4,500.00 500.00 5,000.00 01-2100-6393 Contractual Services 8,000.00 7,400.00 15,400.00 01-2101-6222 Motor Vehicle Fuel 7,500.00 1,500.00 9,000.00 01-2101-6331 Telephone 780.00 70.00 850.00 01-2101-6343 Insurance Motor Equipment 1,150.00 10.00 1,160.00 01-2101-6355 Vehicle & Equipment R&M 4,000.00 (2,000.00) 2,000.00 01-2102-6393 Contractual Services 40,000.00 15,160.00 55,160.00 01-2200-6110 Salaries & Wages 806,420.00 23,580.00 830,000.00 01-2200-6222 Motor Vehicle Fuel 13,000.00 3,000.00 16,000.00 01-2200-6231 Wearing Apparel 10,000.00 240.00 10,240.00 01-2200-6350 Bldg/StructureImprovements 1,000.00 160.00 1,160.00 01-2200-6351 fixed Plant & Equipment R&M 1,500.00 1,360.00 2,860.00 01-2200-6355 Vehicle & Equipment R&M 38,840.00 18,700.00 57,540.00 ' 01-2201-6385 01-2400-6115 Volunteer Promotional Services Extra Help 4,800.00 14,000.00 200.00 (3,000.00) 5,000.00 11,000.00 01-2400-6333 Training & Travel 1,600.00 40.00 1,640.00 01-2400-6341 Insurance General r 600.00 (150.00) 450.00 01-2400-6393 Contractual Services 25,000.00 (4,000.00) 21,000.00 01-3000-6110 Salaries & Wages 145,950.00 2,000.00 147,950.00 01-3000=6111 Overtime 150.00 200.00 350.00 01-3000-6212 Books & Publications 500.00 (250.00) 250.00 01-3100-6220 Miscellaneous Supplies 1,000.00 (200.00) 800.00 01-3000-6236 Foods 800.00 250.00 1,050.00 01-3100-6110 Salaries & Wages 356,000.00 4,000.00 360,000.00 01-3100-6111 Overtime 38,000.00 (8,000.00) 30,000.00 01-3100-6222 Motor Vehicle Fuel 35,000.00 5,000.00 40,000.00 01-3100-6240 Signs, Signals & Markers 18,000.00 (4,000.00) 14,000.00 01-3100-6246 Street & Bridge Supplies 85,000.00 (6,500.00) 78,500.00 01-3100-6354 Traffic Lights 9,000.00 (9,000.00) - 01-3100-6357 Street Striping 6,000.00 (2,600.00) 3,400.00 Net Effect to Fund Balance 1,696,090.00 44,670.00 1,740,760.00 JUSTIFICATION Budget amendments are necessary to ensureline-items operate in the "black." Dept Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: C ri84 BUDGET AMENDMENT REQUEST FISCAL YEAR: 2011-2012 DATE: September 24, 2012 DEPARTMENT: Various FUND: General (01) AMOUNT CURRENTACCOUNT INCREASE PROPOSED NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 01-3100-6341 Insurance General 2,900.00 (1,085.00) 1,815.00 01-3100-6343 Insurance Motor Equipment 5,450.00 825.00 6,275.00 01-3100-6366 Rental Equipment 10,000.00 (6,000.00) 4,000.00 01-3100-6730 Street Improvement 300,000.00 25,000.00 325,000.00 01-3200-6222 Motor Vehicle Fuel 2,100.00 200.00 2,300.00 01-5100-6111 Overtime 6,000.00 600.00 6,600.00 01-5100-6115 Extra Help 86,000.00 1,000.00 87,000.00 01-5100-6126 Social Security 15,000.00 1,000.00 16,000.00 01-5100-6210 General Office Supplies 1,500.00 280.00 1,780.00 01-5100-6220 Miscellaneous Supplies 1,000.00 170.00 1,170.00 01-5100-6222 Motor Vehicle Fuel 4,750.00 1,800.00 6,550.00 01-5100-6231 Wearing Apparel 1,300.00 (450.00) 850.00 01-5100-6236 Foods 9,000.00 900.00 9,900.00 01-5100-6243 Special Programs 5,000.00 310.00 5,310.00 01-5100-6256 Chemicals 22,500.00 4,250.00 26,750.00 01-5100-6265 �SuvvIies/Minor Tools & Equipment 17,500.00 435.00 17,935.00 01-5100-6333 lTri.ig & Travel 1,000.00 1,575.00 2,575.00 01-5100-6341 llnsurance General 24,850.00 (1,600.00) 23,250.00 01-5100-6350 IBldg/Structure Improvements 10,000.00 (6,350.00) 3,650.00 01-5100-6366 Rental Equipment 1,500.00 30.00 1,530.00 01-5100-6393 lContractual Services 13,000.00 2,195.00 15,195.00 01-5100-6720 lBuilding/Fixtures and Grounds 75.000.00 (10,000.00) 65,000.00 01-5500-6341 Insurance General 28,000.00 (2,000.00) 26,000.00 01-5500-6377 & Memberships 330.00 5.00 335.00 01-5500-6720 +Dues IBuilding/Fixtures and Grounds 30,150.00 10,520.00 40,670.00 01-9000-6315 Computer System 56,000.00 (2,000.00) 54,000.00 01-9000-6326 Retiree Insurance 114,000.00 (32,000.00) 82,000.00 01-9000-6336 Retiree Accrued Compensation 20,000.00 (20,000.00) - 01-9000-6409 Vacation Buy Back 22,000.00 (22,000.00) - 01-9000-6720 Bldg/Structure Improvements ITransfer 12,900.00 12,900.00 01-9000-6904 to Parks Special Fund 45,000.00 10,000.00 55,000.00 01-9000-6907 ITransferto Capital Outlay Fund 200,000.00 200,000.00 Net Effect to Fund Balance 930,830.00 170,510.00 1,101,340.00 JUSTIFICATION Budget amendments are necessary to ensure line-items operate in the "black" Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: u 1 1 BUDGET AMENDMENT REQUEST FISCAL YEAR: 2012-2013 DATE: September 24, 2012 'DEPARTMENT: Various FUND: Narcotics; Hotel/Motel; Water & Sewer AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 20-2100-6220 Miscallenous Supplies 1,985.00 1,985.00 20-2100-6333 Training & Travel 490.00 490.00 20-2100-6355 Vehicle & Equipment R&M 320.00 320.00 20-2100-6393 Contractual Services - 2,285.00 2,285.00 23-0000-6341 Insurance General 2,400.00 200.00 2,600.00 23-0000-6389 Payment to Chamber & Historical Sac. 51,000.00 4,000.00 55,000.00 50-6000-6110 Salaries & Wages 297,850.00 10,900.00 308,750.00 50-6000-6111 Overtime 50,000.00 14,000.00 64,000.00 50-6000-6222 Motor Vehicle Fuel 3,500.00 1,000.00 4,500.00 50-6000-6231 Wearing Apparel 1,150.00 150.00 1,300.00 50-6000-6256 Chemicals & Insecticides 290,000.00 20,000.00 310,000.00 50-6000-6341 Insurance General 52,550.00 (4,050.00) 48,500.00 50-6000-6343 Insurance Motor Equipment 600.00 30.00 630.00 50-6000-6351 Fixed Plant & Equipment R&M 84,000.00 (29,500.00) 54,500.00 50-6000-6740 Plant Equipment 82,000.00 (82,000.00) - ' 50-6100-6110 50-6100-6111 Salaries & Wages Overtime 173,470.00 1,500.00 2,500.00 300.00 175,970.00 1,800.00 50-6100-6222 Motor Vehicle Fuel 3,000.00 500.00 3,500.00 50-6100-6275 Water Meters & Bpxes 32,000.00 (1,000.00) 31,000.00 50-6100-6331 Telephone 1,000.00 175.00 1,175.00 50-6100-6341 Insurance General 850.00 50.00 900.00 50-6100-6343 Insurance Motor Equipment 350.00 20.00 370.00 50-6100-6393 Contractual Services 8,650.00 (170.00) 8,480.00 50-6200-6393 Contractual Services 575,000.00 21,575.00 596,575.00 50-6200-6740 Plant Equipment - 30,080.00 30,080.00 50-6300-6111 Overtime 71,500.00 11,500.00 83,000.00 50-6300-6116 Certification Pay 1,620.00 530.00 2,150.00 50-6300-6222 Motor Vehicle Fuel 45,000.00 2,000.00 47,000.00 50-6300-6247 Water & Sewer Mains 106,000.00 (6,540.00) 99,460.00 50-6300-6341 Insurance General 3,750.00 770.00 4,520.00 50-6300-6343 Insurance Motor Equipment 3,000.00 160.00 3,160.00 50-9000-6908 Transfer to Equipment Replacement Fund 25,000.00 82,000.00 107,000.00 Net Effect to Fund Balance 1,966,740.00 84,260.00 2,051,000.00 JUSTIFICATION Budget amendments are necessary to ensure line -items operate in the "black." Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: 1 1 BUDGET AMENDMENT REQUEST FISCAL YEAR: 2012-2013 DATE: September 24, 2012 DEPARTMENT: Various FUND: Solid Waste; Central Dispatch AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 52-3300-6111 Overtime 12,000.00 1,250.00 13,250.00 52-3300-6113 Longevity 1,250.00 50.00 1,300.00 52-3300-6210 General Office Supplies 200.00 70.00 270.00 52-3300-6231 Wearing Apparel 1,175.00 75.00 1,250.00 52-3300-6242 Garbage Bags 5,000.00 5.00 5,005.00 52-3300-6258 Motor Vehicle Supplies 73,000.00 14,000.00 87,000.00 52-3300-6355 Vehicle & Equipment R&M 23,000.00 2,000.00 25,000.00 52-3300-6390 Waste Disposal 278,515.00 (23,520.00) 254,995.00 52-3300-6393 Contractual Services 5,000.00 10,750.00 15,750.00 52-3300-6397 Green Waste Disposal 30,000.00 (15,000.00) 15,000.00 52-3300-6744 Miscallenous Equipment - 6,520.00 6,520.00 52-9000-6908 Transfer to Equipment Replacement Fund - 25,000.00 25,000.00 70-1700-6315 Computer System 87,785.00 20,000.00 107,785,00 70-1700-6393 Contractual Services 750.00 300.00 1,050.00 70-2100-6110 Salaries & Wages 409,170.00 1,830.00 411,000.00 70-2100-6111 Overtime 25,000.00 13,000.00 38,000.00 70-2100-6115 Extra Help 10,000.00 1,000.00 11,000.00 70-2100-6265 Supplies/Minor Tools & Equipment 200.00 1,100.00 1,300.00 70-2100-6333 Training & Travel 800.00 670.00 1,470.00 70-2100-6341 Insurance General 14,800.00 (6,000.00) 8,800.00 70-2100-6355 Vehicle & Equipment R&M 3,500.00 (2,000.00) 1,500.00 70-2100-6406 Contingency 20,000.00 (20,000.00) Net Effect to Fund Baiance 1,001,145.00 31,100.00 1,032,245.00 JUSTIFICATION Budget amendments are necessary to ensure line -items operate in the "black." Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: 1 1 000 '187 RESOLUTION NO. 2012-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS ACCEPTING A 2012 PORT SECURITY GRANT FUNDED THROUGH THE U. S. DEPARTMENT OF HOMELAND SECURITY IN THE AMOUNT OF $2,800,225 AND AUTHORIZING CITY MANAGER, CHRIS DUQUE, TO SIGN ASSOCIATED DOCUMENTATION. WHEREAS, the City of Nederland is a suburban community of approximately 18,000 people located in Southeast Texas; and WHEREAS, the City's Fire and Rescue provides services to the city, area industry, and to the regional airport; and WHEREAS, the City has been devastated by 2 major hurricanes since 2005 where it was made apparent the current location of the Nederland Fire Station and Emergency Operations Center is severely lacking in space and functionality; and WHEREAS, the City applied for a 2012 Port Security Grant through the U. S. Department of Homeland Security; and WHEREAS, the City of Nederland was notified on September 11, 2012 of the award in the amount of $2,800,225. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS:THAT 1. The City Council accepts the grant from the U. S. Department of Homeland Security in the amount of $2,800,225. 2. The City Council directs and authorizes the City Manager to execute all necessary documents as may be required. PASSED and APPROVED on this the 24"' day of September 2012. R. A. Nugent, Wyor ATTEST: Gay Ferg son, City Cler ' APPROVED AS TO FORM: 4n.ck, Cityey J. v REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND ' 4:30 p.m. October 8, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -e as presented. MOTION ' CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—September 24, 2012 regular meeting b. Reports - September 20.12 Departmental Reports c. Street Closures: • Consider action authorizing the closure of Franklin Street between 12th Street and 13th Street on October 25`h for Langham Elementary School's "Annual Fall Carnival." • Consider action authorizing the closure of 13th Street from Nederland Avenue to Boston Avenue, including the intersection of 13th Street and Atlanta Avenue on October 31St for First United Methodist Church's "Trunk or Treat" event. d. Consider action authorizing the installation of a street light at 924 22nd Street. e. Payments: • September 2012 monthly bills • Walker Partners - $1,800.00, 2010 Water System Improvements project • Carroll & Blackman, Inc. - $1,145.58, Phase II MS4 Permit Implementation Services • Allco, Inc. - $224,235.67, Nederland Water Treatment Plant Repairs/Improvements project • Allco, Inc. - $197,101.74, 18th Street Waterline Replacement project Minutes Continued, October 8, 2012 L4. REGULAR AGENDA P"r ; a. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to approve a Proclamation in regards to the Knights of Columbus Family Week. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. b. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to approve Resolution 2012-13, ratifying the action of the Nederland Economic Development Corporation related to the NEDC's participation in certain Minimum Revenue Guarantee requested by American Airlines to establish air service to the Jack Brooks Regional Airport. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Resolution No. 2012-15, authorizing the submittal of a Texas Community Block Grant program application to the Texas Department of Agriculture. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Ordinance No. 2012-15, denying CentrPoint Energy Resources Corp.'s requested rate increase. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve Ordinance No. 2012-16, amending the FY 2012-2013 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. COMMUNICATION City Manager's Report: a. National Night Out - October Stn b. Tuesday, October 9th - workshop (10 a.m.) and special meeting (11:00 a.m.) scheduled to discuss new city hall project. F-1-1 131011 There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 4:44 p.m. MOTION CARRIED. e r'r 190 Minutes Continued, October 8, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. I Noes: None. R. A. N gent, yor City of Neder a d, Texas ATTEST: G y Fergu , City Clerk City of Nederland, Texas 1 Ll 11 1 00C 191 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT i R. A. Nugent Mayor �✓ Talmadge Austin Council Member— Ward I Billy Neal Council Member— Ward II Don Albanese Council Member — Ward III V Bert Rogers Council Member— Ward IV Chris Duque City Manager V Gay Ferguson City Clerk �/ Jesse Branick City Attorney Cheryl Dowden Director of Finance V V Darrell Bush Police Chief Gary Collins Fire Chief V Steve Hamilton Director of Public Works V George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director L. Joni Underwood Executive Secretary V R. A. Nugent, Mayor Gay Fergalson, City Cl October 8, 2012 Date 000 A2 1 RESOLUTION No. 2012-13 A RESOLUTION OF THE CITY OF NEDERLAND CITY COUNCIL RATIFYING THE ACTION OF THE NEDERLAND ECONOMIC DEVELOPMENT CORPORATION. WHEREAS, the present and prospective right to gainful employment and general welfare of the people of Nederland require as a public purpose the promotion and development of new and expanded business enterprises; and WHEREAS, the existence, development, and expansion of business, commerce, and industry are essential to the economic growth of Nederland and to the full employments, welfare, and prosperity of its citizens; and WHEREAS, the means and measures authorized by the Texas Legislature and the assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic development are in the public interest and serve a public purpose in promoting the welfare of the citizens of the City economically by the securing and retaining of business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability; and WHEREAS, the citizens of the City of Nederland provided for the creation of the Nederland Economic Development Corporation by popular vote in a duly authorized election to serve the public purposes herein described; and WHEREAS, the Nederland Economic Development Corporation is authorized and empowered under applicable state law, its charter, bylaws and by board approval, to aid in the ' development of business enterprises by offering incentives to prospective new and expanding businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the action of the Board of Directors of the Nederland Economic Development Corporation ("Board") relating to minimum revenue guarantee for the benefit of American Airlines or an approved subsidiary to establish air service at the Jack Brooks Regional Airport, in an aggregate maximum amount of not more than Seventy-five Thousand dollars ($75,000.00), in accordance with the terms and conditions as prescribed by the Board, is hereby ratified. PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 24T" day of September 2012 at which meeting a quorum was present and voting. Ou R. A. Nugent, a r City of Nederlan ,Texas ATTEST: G y Fergus n, City Clei City of Nederland, Texas ' APPROVED AS TO FORM AND LEGALITY: Jes Bra c ,City Attorney C y of derland, Texas 1 000193 PASSED AND APPROVED ON THE SECOND READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 9 441day of OcC beY 2012 at which meeting a quorum was present and voting. R. A. Nugent, M r City of Nederlan , Texas ATTEST: lay�, Cit Fergdson City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: 1 City Attorney les4Ned Citand, Texas 1 1 C^f!94 RESOLUTION 2012-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, ' TEXAS, AUTHORIZING THE SUBMISSION OF A TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM APPLICATION TO THE TEXAS DEPARTMENT OF AGRICULTURE FOR THE COMMUNITY DEVELOPMENT FUND; AND AUTHORIZING THE MAYOR TO ACT AS THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE COMMUNITY DEVELOPMENT PROGRAM. WHEREAS, the City Council of the City of Nederland desires to develop a viable urban community including decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low/moderate income; and WHEREAS, certain conditions exist which represent a threat to the public health and safety; and WHEREAS, it is necessary and in the best interests of the City of Nederland to apply for funding under the 2013/2014 Texas Community Development Program; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: • That a Texas Community Development Block Grant Program application for the Community Development Fund is hereby authorized to be filed on behalf of the City with the Texas Department of Agriculture. • That the City's application be placed in competition for funding under the Community' Development Fund . • That the application be for $275,000.00 of grant funds to carry out a Water System Improvement Project, with matching funds of $55,000.00 provided by the City. • That the City Council directs and designated the Mayor as the City's Chief Executive Officer and Authorized Representative to act in all matters in connection with the application and the City's participation on the Texas Community Development Block Grant Program. PASSED AND APPROVED by the City Council of the City of Nederland this the 8t' day of October, 2012. l dl� R. A. Nugent, +.r City of Nederland, Texas ATTEST: paa'- 11JAA-1 Gay FerguZ City Cler City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: ' 1krn- Jes Brani ity Attorney Ci of N erland, Texas ORDINANCE NO. 2012-15 000195 ' AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF NEDERLAND TEXAS DENYING THE RATES OF CENTERPOINT ENERGY RESOURCES CORP. FILED IN CENTERPOINT ENERGY RESOURCES CORP.'S RATE PROCEEDING INITIATED ON JULY 2, 2012; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about July 2, 2012 CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement of Intent with the City to increase gas rates in the service area of the Beaumont/East Texas Division of CenterPoint by $8.6 million per year; and WHEREAS, the City of Nederland, Texas ("City") suspended the effective date of CenterPoint's rates within its jurisdictional limits until at least November 4, 2012 and hired the Lawton Law Firm, P.C. to review the Company's rate change request and proposed tariffs; WHEREAS, CenterPoint requested an overall base rate increase of $8.6 million dollars, consisting of a rate increase to residential customers of $8.2 million, and a rate increase of $0.9 million to small general service customers, and a rate decrease of ($0.5) million to large volume general service customers; WHEREAS, CenterPoint's rate filing request proposes to increase the residential customer charge from an approximate charge of $12.25 per month to $20.25 per month. Overall, revenues from all customer classes proposed to be charged directly to customers through the customer charges make up 89.48% of the Company's total requested revenues -- $48,271,035 million out of the Company's total requested $53,943,521 million revenue requirement; • WHEREAS, CenterPoint's rate filing request includes unreasonable rate increases for recovery of employee expense and benefits, various tax expense and rate base issues, injuries and damages expense, other various expense and investment, unsubstantiated costs allocated from affiliate service companies, and an excessive rate of return and profit for shareholders. 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 City of Nederland, Texas hereby denies the rate change and proposed tariff revisions requested in CenterPoint's Statement of Intent. Section 3. 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. Section 4. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 8T" day of OCTOBER, 2012. ' R.A. Nugent, or bATTEST: / ^�y / n ' y ) Y v y'Fe rgtn, C Cle THE LAWTON LAW FIRM, P.C. 701 Braws Suite 500 • Austin, Texas 78701 • 512/322-0019 • Fax: 512/716.8917 Mr. Richard Ferguson City Attorney — City of Anahuac 13201 Northwest Freeway, Suite 300 Houston, Texas 77040 Mr. Tyrone Cooper City Attorney — City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Mr. Paul Fukuda City Attorney — Bridge City 260 Rachal Post Office Box 846 Bridge City, Texas 77611 Mr. David Olson City Attorney — City of Cleveland Wortham Tower, Suite 600 2727 Allen Parkway Houston, Texas 77019 Mr. Felix Skarpa Mayor — City of Dayton 117 Cook Street Dayton, Texas 77535 October 1, 2012 Mr. Lance Nauman City Administrator — City of Anahuac 501 Miller St. Anahuac, Texas 77514 Mr. Kyle Hayes City Manager — City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Mr. Jerry D. Jones City Manager — City of Bridge City 260 Rachal Post Office Box 846 Bridge City; Texas 77611 Mr. Dion Miller City Manager — City of Cleveland 907 E. Houston Cleveland, Texas 77327 Mr. David Douglas City Manager — City of Dayton 117 Cook Street Dayton, Texas 77535 1 1 1 ' Mr. Leonard Schneider Mr. Chuck Pinto City Attorney — City of Huntsville City Manager — City of Huntsville 2 Riverway, Suite 700 1212 Ave. M Houston, Texas 77056-1918 Huntsville, Texas 77340 Mr. Gary Broz Mr. Randall Gunter City Manager — City of Liberty City Attorney — City of Liberty 1829 Sam Houston 310 Main St. Liberty, Texas 77575 Liberty, Texas 77575 Mr. Jesse Branick Mr. Christopher Duque City Attorney — City of Nederland City Manager — City of Nederland 221 Hwy. 69 South, Suite 100 (office) P.O. Box 967 Nederland, Texas 77627 Nederland, Texas 77627 Mr. Shawn Oubre Mr. John Smith City Manager — City of Orange City Attorney — City of Orange 803 W. Green Avenue, Room 201 P.O. Box 520 Orange, Texas 77630 Orange, Texas 77631-0520 Mr. Tommy Gunn Mr. Joe Parkhurst City Attorney — City of Pinehurst City Manager — City of Pinehurst 202 S. Border 2497 Martin Luther King Jr. Drive ' Orange, Texas 77630 Orange, Texas 77630 Mr. Rodney Price Mr. Rodney Price City Attorney — City of Rose City City Attorney — City of Pine Forest 215 W. Freeway 215 W. Freeway Vidor, Texas 77662 Vidor, Texas 77662 Mr. Harry Wright Mr. Tommy Bartosh City Attorney — City of Silsbee City Manager — City of Silsbee PO Box 186 105 South 3`d Street Port Neches, Texas 77651 Silsbee, Texas 77656 Mr. Richard Ferguson Mr. Larry Saurage City Attorney — City of Sour Lake City Manager — City of Sour Lake 13201 Northwest Freeway, Suite 300 655 W. Barkley St. Houston, Texas 77040 Sour Lake, Texas 77659 F1 OCC197 n v �. , Re: CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and ' CenterPoint Energy Texas Gas ("CenterPoint" or "Company") Application to Increase Gas Service Rates Dear Steering Committee of Cities: This letter is to recommend municipal action to deny CenterPoint Gas Beaumont/East Texas Division's ("CenterPoint") Statement of Intent to Increase Rates filed with the Cities on July 2, 2012. The City must approve, deny, or modify CenterPoint's statement of intent rate increase by November 2, 2012 or else the Company's request is deemed approved by operation of law. We recommend that the City adopt the Ordinance denying the Company's proposed rate increase based upon the recommendations of the consulting expert retained to review the Company's filing. The Company will likely appeal the decision to the Railroad Commission to be joined with the proceeding currently underway. If you have any questions or concerns, please do not hesitate to call. Sincerely, P.il�Jt ILa- — �B'Lv ORDINANCE NO. 2012-15 0 01 (1 19 9 ' AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF NEDERLAND TEXAS DENYING THE RATES OF CENTERPOINT ENERGY RESOURCES CORP. FILED IN CENTERPOINT ENERGY RESOURCES CORP.'S RATE PROCEEDING INITIATED ON JULY 2, 2012; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about July 2, 2012 CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company') filed a Statement of Intent with the City to increase gas rates in the service area of the Beaumont/East Texas Division of CenterPoint by $8.6 million per year; and WHEREAS, the City of Nederland, Texas ("City") suspended the effective date of CenterPoint's rates within its jurisdictional limits until at least November 4, 2012 and hired the Lawton Law Firm, P.C. to review the Company's rate change request and proposed tariffs; WHEREAS, CenterPoint requested an overall base rate increase of $8.6 million dollars, consisting of a rate increase to residential customers of $8.2 million, and a rate increase of $0.9 million to small general service customers, and a rate decrease of ($0.5) million to large volume general service customers; WHEREAS, CenterPoint's rate filing request proposes to increase the residential customer charge from an approximate charge of $12.25 per month to $20.25 per month. Overall, revenues from all customer classes proposed to be charged directly to customers ' through the customer charges make up 89.48% of the Company's total requested revenues -- $48,271,035 million out of the Company's total requested $53,943,521 million revenue requirement; WHEREAS, CenterPoint's rate filing request includes unreasonable rate increases for recovery of employee expense and benefits, various tax expense and rate base issues, injuries and damages expense, other various expense and investment, unsubstantiated costs allocated from affiliate service companies, and an excessive rate of return and profit for shareholders. 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 City of Nederland, Texas hereby denies the rate change and proposed tariff revisions requested in CenterPoint's Statement of Intent. Section 3. 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. Section 4. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 8T" day of OCTOBER, 2012. o00 ,00 ATTEST: Gay Ferguson, City Clerk Mayor R.A. Nugent fl 1 ORDINANCE NO. 2012-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012- 2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted the Fiscal Year 2012-2013 City Budget; and, WHEREAS, the City Council deems it necessary to amend the current budget to adjust revenues and expenditures as set out in Attachment "A" attached hereto; and, WHEREAS, the 2012-2013 City budget states 'That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2012 and ending September 30, 2013, 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 2012-2013 is amended to allow for adjustments in revenues and expenditures as set out in Attachment "A." THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed. THAT the City Clerk shall file a true copy of this ordinance and said budget amendment with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local Government Code. 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 8th DAY OF OCTOBER, 2012. R. A. Nugent, I)AAyor City of Nederl nd, Texas ATTEST: brtr ,l 17�, �'t �� day FergAon, City -e i'k� ' APPROVED AS TO FORM AND LEGALITY: Jes Brani ! City Attor CITY OF NEDERLAND + (= '"� 2. BUDGET AMENDMENT REQUEST FISCAL YEAR: 2012-2013 DATE: October 8, 2012 DEPARTMENT: Varous FUND: Equip. Rep-W&S (36) Water & Sewer (50) AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 36-0000-6950 Transfer Out 82,000.00 82,000.00 50-0000-4936 Transfer In - Equip Rept Fund 36 82,000.00 82,000.00 50-6000-6740 Plant Equipment 82,000.00 82,000.00 TOTAL 246,000.00 246,000.00 JUSTIFICATION $82,000 was transferred from the Water & Sewer Fund at the end of the FY 11-12 (Hardy Avenue water tower); project will be completed in the FY 12-13. Funds moved to the Equipment Replacement Fund - W&S (36) are returned to the W&S Fund as a transfer in (revenue) and then allocated in the Plant Equipment line -item (allocation). Dept. Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of 1 1 1 u3 WORK SESSION OF THE CITY COUNCIL OF THE ICITY OF NEDERLAND 10:00 P.M. October 9, 2012 MEETING The work session was called to order at 10:00 a.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas, for the purpose of considering the following items. See attached for quorum. 2. PROPOSEDLAYOUT Mayor Nugent welcomed all participants to the work session to discuss the proposed layout and design of the proposed City Hall. He reminded everyone of the time restrictions related to this project in order to meet requirements of the Port Security Grant awarded for the construction of the Nederland Fire Rescue/EOC project. Don LaBiche, The LaBiche Architectural Group, reviewed 2 floor plans proposed for the new City Hall which came from meetings with staff and how they work with each other and the public. He added that square footage and cost was the top priority ' and that they were mindful to try and stay within those parameters. He suggested the floorplan with the council chambers in the center may be a better choice in order to provide access to the public. Mr. LaBiche advised Council that the building is proposed to be 65 feet by 75 feet, pre-engineered metal building, wind rated to 150 miles per hour. The facade design is reminiscent to Boston Avenue in the 1920s. There was substantial discussion regarding both floorplan layouts and possible changes. Mayor Pro Tem Neal stated that the Mayor's office needs to be up front and accessible to the public. Councilmember Rogers had several questions and proposed a revised floorplan. Discussions included outcomes from meetings with staff, the necessity for finance to be within a secure area, the placement of the Mayor's Office in relation to the City Manager's Office, and the placement of restrooms and file rooms. Mr. LaBiche proposed several revisions from the outcome of this discussion. Mr. LaBiche reviewed the 2 exterior designs and the site plan. 3. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Mayor Pro Tem Neal to adjourn the meeting at 11:35 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. A"i� ' R. A. Nug4nt, or t Minutes Continued, October 9, 2012 ATTEST: Gay Ferguso C ty Cler City of Nederland, Texas 1 1 1 SPECIAL MEETING OF THE CITY COUNCIL OF THE Or'^O CITY OF NEDERLAND J 11:37 a.m. October 9, 2012 ' 1. MEETING The special meeting was called to order at 11:37 a.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. PROPOSED LAYOUT Chris Duque, City Manager, commended the Mayor and the City Council for their support of a new City Hall building which will serve the community for the next 40 years. He thanked Don LaBiche and his staff for being patient, receptive, and timely with our requests and changes. He also thanked staff for their input. Mr. Duque recommended City Council approve Plan B of the proposed floorplans with the changes as proposed from the Work Session. He suggested council consider bid solicitation at their October 22, 2012 regular scheduled meeting. He also recommended the all brick fagade with the wording "Nederland City Hall" for the sign. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to accept floorplan B with the changes proposed that came out of the Work Session, the all brick facade with possible relocation of restrooms to the rear of the building. ' MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Mr. LaBiche reported he will engage the engineers within 3-4 weeks, Council will authorize bids on October 22, 2012, there will be 4 weeks for bidding time, and Council will accept the bidder in early December, and construction should begin after the first of the year. 3. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Neal to adjourn the meeting at 11:55 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. Nugent,or City of Nederl d, Texas ATTEST: o/to�f� ' Gay Fergu r City Cle City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE R. A. Nugent Mayor Talmadge Austin Council Member-- Ward I Billy Neal Council Member— Ward II Don Albanese Council Member— Ward III Bert Rogers Council Member — Ward IV Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief Gary Collins Fire Chief Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director Joni Underwood Executive Secretary R. A. Nugent, Mayo Gay Fergu n, City Cler October 9. 2012 Date PRESENT V/ V V/ V V ABSENT 1 1 1 1 1 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. 1. MEETING 0'r 07 October 22, 2012 The meeting was called to order at 4:30 p.m. by Mayor Pro Tem Billy Neal at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Albanese and seconded by Councilmember Austin to approve the Consent Agenda Items 3 a -e as presented. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. a. Minutes—October 8, 2012 regular meeting, October 9, 2012 workshop, October 9, 2012 special meeting b. Reports - September 2012 Departmental Reports c. Tax Assessor Collector Report - September 2012 and Fiscal Year End Report d. Consider action regarding a request from Kelly McBride to utilize the pavilion at Doornbos Park for a "Wings of Freedom Picnic/Rally". e. Payments: • LaBiche Architectural Group, Inc. - $13,474.71, City Hall project • Schaumburg & Polk, Inc. - $10,326.10, 18th Street Waterline Replacement project • Schaumburg & Polk, Inc. - $7,840.00, 2009 Sewer Rehabilitation project 4. REGULAR AGENDA a. Mayor Nugent presented a Proclamation to Misty Craver and Cindy Fertitta declaring the month of October as "National Domestic Violence Awareness Month" in Nederland. Ms. Craver and Ms. Fertitta thanked the Council for their continued ' support. A motion was made by Councilmember Austin and seconded by Councilmember Rogers to approve a Proclamation in regards to National Domestic Violence Awareness Month. MOTION CARRIED. 0111"108 Minutes Continued, October 22, 2012 Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. b. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to amend Ordinance 164, setting the calendar for regular City Council meetings May 2012 - April 2013. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. c. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to authorize the acceptance of a 2012 State Homeland Security Program grant for interoperability radio equipment. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. d. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve an Interlocal Agreement between the Southeast Texas Regional Planning Commission and the City of Nederland regarding the Blackboard Connect system. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. e. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to authorize the submission of the Year 5 Stormwater Report to the Texas Commission on Environmental Quality. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. f. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a License to Encroach between Marjan Rahmani and the City of Nederland regarding property located at 7909 Holmes Road. MOTION CARRIED. Ayes. Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. g. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tem Neal to approve Change Order #4 (+$35,431.25), 2009 Sewer Rehabilitation project. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. h. A motion was made by Councilmember Austin and seconded by Councilmember Rogersl to approve final payment and release of retainage to Allco, Inc. - 2009 Sewer Rehabilitation project. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. Minutes Continued, October 22, 2012 rrs r 1", , . _-209 L A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to authorize the solicitation of bids for the Nederland City ' Hall project. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. Absent: Mayor Nugent. S. COMMUNICATION City Manager's Report: a. Construction project update — 18th Street Waterline has been completed ahead of schedule. The pavement between Helena and the ditch is behind schedule by about 2 weeks. Overall completion date for the project is March 9th The Water plant is about 77% completed. The contractor is working on the high service pumps. b. Trunk -R -Treat, October 31st 6. ADJOURN There being no further business a motion was made by Mayor Pro Tem Neal and seconded by Councilmember Albanese to adjourn the meeting at 5:10 p.m. MOTION CARRIED. Ayes: Mayor Pro Tem Neal, Councilmembers Austin, Albanese, and Rogers. Noes: None. ' Absent: Mayor Nugent. ATTEST: V Gay Fergu A,C�ityCle City of Nederland, Texas 1 Billy Neal, Mayor Pro Tem 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 Billy Neal Council Member— Ward II Don Albanese Council Member— Ward III v Bert Rogers Council Member— Ward IV Chris Duque City Manager Gay Ferguson City Clerk V Jesse Branick City Attorney V Cheryl Dowden Director of Finance / �✓ , / Darrell Bush Police Chief v/ v Gary Collins Fire Chief Steve Hamilton Director of Public Works George Wheeler Building Official ^V Victoria Klehn Librarian ,V/ V Emily Pope Human Resources Director Joni Underwood Executive Secretary Angela Fanette Parks Director " Billy Neal, Mayor Pro Tem Gay Ferguson, Cify Clerk October 22, 2012 Date 1 1 1 1 1 J. SHANE HOWARD TAX ASSESSOR -COLLECTOR STATE OF TEXAS COUNTY OF JEFFERSON 4,SON CO G�� 4, e X SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $31,337.61, represents all taxes collected for CITY OF NEDERLAND during the month of SEPTEMBER 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 M Orr, 11 4) AMENDMENT TO ORDINANCE NO. 164 AN ORDINANCE SETTING REGULAR DATES FOR COUNCIL MEETINGS TO BE HELD FROM MAY 14, 2012 THROUGH APRIL 22, 2013. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the following dates will be and are hereby regular meeting dates for the meetings of the City Council of the City of Nederland, Texas. All of the below regular meetings shall begin at 4:30 p.m. on each of the following dates: May 14 and 21, 2012 June 11 and 25, 2012 July 9 and 23, 2012 August 6 and 20, 2012 September 10 and 24, 2012 October 8 and 22, 2012 November 12 and 19, 2012 December 10 and 17, 2012 January 14 and 28, 2013 February 11 and 25, 2013 March 11 and 25, 2013 April 8 and 22, 2013 ANY AND ALL ordinances of the City of Nederland, Texas which conflict with any provisions of this amendment are hereby expressly repealed. PASSED AND APPROVED by the City Council at a regular meeting this 22nd day of October, 2012. R. A. Nugen , ayor City of Nede nd, Texas ATTEST: y ���c� Gay Fergus City Clerk City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: J 0ofeFland, /ity Attorney iderTexas REGULAR MEETING OF THE CITY COUNCIL OF THE t 3 CITY OF NEDERLAND 4:30 p.m. November 12, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Mayor Pro Tem Neal and seconded by Councilmember Rogers to approve the Consent Agenda Items 3 a -e as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—October 22, 2012 regular meeting b. Reports - October 2012 Departmental Reports c. Street Closures: • Consider action authorizing the closure of Boston Avenue from 17th Street to Twin City Highway and all intersections on December 1St for the "Christmas on the Avenue" event. • Consider action authorizing the closure of Nederland Avenue from 21St Street to Twin City Highway, Twin City Highway from Nederland Avenue to Boston Avenue, and Boston Avenue from Twin City Highway to 17th Street on December 11th for the Annual Lighted Christmas Parade. d. Consider action setting a Joint Public Hearing date of December 10, 2012 at 4:30 p.m. for the purpose of receiving comments regarding the rezoning of 1616 Highway 365, Meadow Garden Estates Mobile Home Park, being 5.074 acres of land, described as part of Lots 3 & 4, Block 14, Range G, Port Arthur Land Company from "C-3" Highway Retail Commercial District to "R-4" Manufactured Home District. e. Payments: • October 2012 monthly bills • Walker Partners - $1,600.00, 2010 Water System Improvements project • DSR & Associates - $4,840.00, Hardy Avenue elevated water tower re- paint project • Allco, Inc. - $117,210.78, 18th Street Waterline Replacement project 0rC'?; 4; Minutes Continued, November 12, 2012 4. REGULAR AGENDA I a. Recognition of Charles L. Gallier for 35 years of service to the City of Nederland as a Heavy Equipment Operator. Mayor Nugent presented Mr. Gallier a retirement gift and thanked him for his long and faithful service to the City of Nederland. b. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve a request from the Nederland Heritage Festival for a water tap to be located at N. 21St and Atlanta Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. Carl Hicks was in attenance to address the City Council in regards to his daughter's property located at 2105 Canal. Chris Duque, City Manager, advised that after a drainage complaint was filed, it was discovered that a culvert at this location was not positioned properly. It was also discovered that the culvert was not an approved material and it was undersized. Mr. Duque added that according to city policy and past practices, the culvert was removed and placed on the property owner's property. The Public Works Department restored a drivable access to the property but Mr. Hicks requests the 20 foot wide access be restored. Mr. Hicks and his daughter, Cynthia Hicks, stated that the culvert was pulled up , and replaced during the construction of the 18th Street waterline replacement project by the contractor. Mr. Duque suggested that the City Council postpone action until further investigation could be done. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to postpone action regarding a request by Carl Hicks regarding the replacement of culverts at 2105 Canal Avenue.. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve Resolution No. 2012-16, ratifying the action of the Nederland Economic Development Corporation related to the incentive offered to Specialty Insulation Solutions, L.L. C. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Austin and seconded by Councilmember Rogers to approve Resolution No. 2012-17, approving the 2012 Tax Roll, as certified by the Jefferson County Appraisal District. MOTION CARRIED. I Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued, November 12, 2012 Q,C'2I5 f. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve Wells Fargo Bank as the City's bank depository service provider. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve a Temporary Road Access Agreement with Keystone Pipeline Company. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. h. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to award a bid for the 'Repairs and Painting of the Hardy Avenue Elevated Water Tank project" to Maguire Iron, Inc. in the amount of $69,490.00. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. L A motion was made by Councilmember Rogers and seconded by Councilmember Austin to authorize Mayor Nugent to sign a Gift Deed from the Nederland Economic Development Corporation for the NEDC's property located at North 12th Street and Atlanta Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ' j. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tem Neal to approve the layout/floor plan of the Nederland Public Safety Complex/EOC to be located at 1400 Boston Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. COMMUNICATION City Manager's Report: a. 2012 Community Survey, November 19th meeting. b. 2nd November Regular Council meeting will be November 19tH 6. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 5:15 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. ' R.'A. Nugent, Mfybr ) City of Nederland, Texas ATTEST: 0 ( . ' i U / G y Fergus n, City Clerb City of Nederland, Texas 1 1 1 L 1 oCc2117 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT R. A. Nugent Mayor V , Talmadge Austin Council Member — Ward I V V Billy Neal Council Member —Ward II V, Don Albanese Council Member— Ward III Bert Rogers Council Member —Ward IV V Chris Duque City Manager V Gay Ferguson City Clerk 1 V l Jesse Branick City Attorney V Cheryl Dowden Director of Finance Darrell Bush Police Chief t Gary Collins Fire Chief V Steve Hamilton Director of Public Works V George Wheeler Building Official V Victoria Klehn Librarian Emily Pope Human Resources Director t/ Joni Underwood Executive Secretary Angela Fanette Parks Director l R. . Nugent, M r .,n G y Ferg on, City Cler�� — v November 12, 2012 Date CITY OF NEDERLAND RESOLUTION NO. 2012-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEDERLAND APPROVING THE 2012 TAX ROLL. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS; THAT pursuant to the Texas Property Tax Code, Section 26.09, the City Council of the City of Nederland hereby approves the attached 2012 tax roll. PASSED AND APPROVED this the 12th day of November, 2012. U R. ugent, yor City of Nederl d, Texas ATTEST: ay FerUuson, City erk4 City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jess ran r ity Attorney City of Ned rland, Texas 1 G' 1 Rso. c� . OCC'219 J. SHANE 11ONVARD r �. SUSI'E 1401ES ' 7: t_1 1SSE.SSC)R-t'iJ1.1.FCTCJR X,,� CHIEF DEPUTY October 25, 2012 Cheryl Dowden City of Nederland P 0 Box 967 Nederland, TX 77627 Dear Ms. Dowden: Enclosed please find the Certified Rat/ Jurisdiction Summary of the tax roll for the tax year 2012 for your jurisdiction. Pursuant to the Texas Property Tax Code, Section 26.09, this certified roll summary should be approved by your Board of Directors at your next board meeting. After the approval, 1 would appreciate you sending me an original resolution for retention in the Tax Office. ' If you should have any questions or require further information, please feel free to call. Sincerely,. J. SHANE HOWARD Assessor -Collector of Taxes Jefferson County, Texas JSH:db Enclosure cc: Christopher Duque 1 JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUh10NT, TEXAS 77?042112 PIIO`,T1=.: (409)8;5-8516 • PP.X: (40958 �5-5589 10/11/2012 01:14:30 SEQUENCE: 1294275 TAX COLLECTION SYSTEM PAGE: 16 TC501 C E R T I F I E D R O L L J U R I S D I C T I O N S U M M A R Y PROCESSING FOR TAX YEAR: 2012 TOTAL PARCELS: MARKET VALUE: EXEMPT PARCELS: EXEMPT VALUE: AG PROPERTIES: HS CAPPED CNf: VET FULL XMP CNT: GROSS TAXABLE: STATE HOMESTEAD LOCAL HOMESTEAD OVER65 LOCAL OVER65 SURVIVING SPOUSE: R OF DISABLED: TOTAL VET TOTAL PART ZMP: TAXABLE VALUE: FROZEN ACCTS; LEVY LOSS: TOTAL LEVY: LATS RENDPEN CNT: FROZEN HOMESITE: FROZEN TAXABLE: UNFROZEN LEVY: FROZEN LEVY: TIF CAPTUERD: TOTAL NON -E MT PARCELS: JURISDICTION: 0031 9,189 1,030,587,040 189 43,923,600 1 122 16 983,567,110 0 O S,Sxo 3,510 4 246 101 26,880.106 956.687,004 0 0.00 5,662,180.53 309 0 0 0.00 0.00 0 9,000 CITY OF NEDERLAND TAX RATE:00.591853 STATE HOM: D OPT HOM: 0.00000 STATE 065: 0 OPT 065: 15,000 DISABLED: 15,000 AG EXCLUSION: 47,960 HS CAPPED AMT: 1,266,960 VET FULL EXEMPTION: - 1,781,410 HOMESTEAD AMT: HOMESTEAD NMT: OVER 65 ANT: OVER 65 AMT: AMOUNT: DISABLED ATT: VETERAN ANT: LATE RENDPEi AMT: 0 0 0 22,3S1,438 60,000 3,439,170 1,029,496 4.434.14 ' WORK SESSION OF THE CITY COUNCIL OF THE Cn0221 CITY OF NEDERLAND 10:00 P.M. November 12, 2012 1. MEETING The work session was called to order at 3:00 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas, for the purpose of considering the following items. See attached for quorum. FACILITIES Mayor Nugent welcomed all participants to the work session to discuss the proposed floorplan of the proposed Nederland Fire Station / Emergency Operations Center / Police Station funded through a Port Security Grant administered through the U. S. Department of Homeland Security. Chris Duque, City Manager, stated with the proposed layout, the building is divided into two separate sections—Police and Fire with the Court Room / Emergency Operations Center in the center. Public access to the building is centralized to the front entrance; access to the building will be controlled with security doors with receptionists, protected by glass, to greet the public in the lobby. In the police ' station, the detectives' offices and patrol area have been grouped together for greater efficiency. The restrooms/showers have been upgraded and repaired. Central Dispatch shall not be affected by this project. In the fire station, the sleeping quarters have been expanded to 6 beds, which allows for future growth, with a small dorm for eight. The dayroom is located off the large dorm. Three double deep bays are proposed, which will house six pieces of fire equipment/apparatus. Firefighting equipment storage is accessed off the bays. The Information Technology staff and equipment will remain at this building. The "shell" space is unprogrammed space that facilitates future staff growth for either public safety department, as well as being available for a staff sleeping area during an emergency. Mr. Dohn LaBiche, The LaBiche Architectural Group, Inc., was in attendance and answered questions from councilmembers. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Mayor Pro Tem Neal to adjourn the meeting at 3:47 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 3,J f„, - , ” ' R. A. Nugent, May r City of Nederland', Texas ATTEST: --41A a OA aa G y FergusUn, City Clerl City of Nederland, Texas 1 1 C ,nn CITY OF NEDERLAND "23 COUNCIL WORKSHOP ATTENDANCE SHEET 1 NAME TITLE PRESENT ABSENT R. A. Nugent Mayor \� Talmadge Austin Council Member- Ward I Billy Neal Council Member- Ward II Don Albanese Council Member- Ward III Bert Rogers Council Member- Ward IV V Chris Duque City Manager (/ Gay Ferguson City Clerk I/ Jesse Branick City Attorney Cheryl Dowden Director of Finance / ' Darrell Bush Police Chief V Gary Collins Fire Chief V Steve Hamilton Director of Public Works V J George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director Joni Underwood Executive Secretary l Angela Fanette Parks Director l R. A. Nugent, or ho ✓✓ , ' ay Fer ity CI k November 12, 2012 Date w REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND I 4:30 p.m. November 19, 2012 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -d as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. a. Minutes—November 12, 2012 regular meeting b. Tax Assessor Collector Report - October 2012 c. Consider action approving Resolution No. 2012-16, ratifying the action of the Nederland Economic Development Corporation related to the incentive offered to Specialty Insulation Solutions, L.L. C. d. Payments: • LaBiche Architectural Group, Inc. - $52,451.92, City Facilities project • Carroll & Blackman, Inc. - $408.92, Phase II MS4 Permit Implementation Services • Allco, Inc. - $195,438.30, Water System Improvements 4. REGULAR AGENDA a. Stephanie Baker of Intrepid USA Home Health Services was present to accept the proclamation declaring November 2012 as "National Home Care Month" in Nederland. She thanked the City Council for their continued support. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve a Proclamation in regards to "National Home Care Month". MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. Minutes Continued, November 19, 2012 00022 5 ' b. A motion was made by Councilmember Rogers and seconded by Councilmember Albanese to approve an Interlocal Agreement between the City of Nederland, Port Neches, and Groves for an electronic document management system. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. c. Chris Duque, City Manager, advised that Sunoco Partners Marketing and Terminals, L.P. (Sun) submitted ad valorem tax abatement requests for Tanks 1572 and 1573, NIST 2-36" Transfer Line Installation, Marshland Booster Pump, Amdel Reversal Project, NIST #1 Ship Dock structural improvements, NIST Fire Water pump replace C Dock upstream, NIST Thermal Relieve Valves, and NED Vacuum Truck. He recommended approval on all items excluding the NED vacuum truck since the request is not "new plant facilities or improvements" as outlined in the Industrial District Agreement. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve a tax abatement request, excluding the NED Vacuum Truck, for Sunoco Partners Marketing & Terminals, L.P. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. ' d. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to authorize Keystone Pipeline temporary use of the City's private KCS railroad crossing. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. e. Chris Duque, City Manager, gave an overview of the 2012 Community Survey and highlighted the following points: • A 10 -page survey was mailed to 6,840 Nederland addresses that have utility accounts. These included households and businesses. . 1,323 were returned which calculates to a 19.34% response rate. . 3/4 of respondents rated quality of life in Nederland as excellent or good. . Top three perceived problems were taxes, drugs, and maintenance of infrastructure. . 3/4 of respondents felt the city was very safe or safe. . Top rated city services were Fire, Solid Waste, Police, Sewer, Drinking Water, and Library. . City services rated the poorest was maintenance of infrastructure. . How public information was received overall was by word of mouth, TV, local newspapers. . How public information was received for households with an age less than 50 was by word of mouth, newspaper, social media. . . City customer service had a rating of 85% as excellent or good. 3/4 of the respondents rated the quality of city services as excellent or good. . 43% stated that they receive good quality of services for taxes they pay. . 44% strongly agreed they are pleased with the overall direction the city is taking. . Average age of respondents was 58 years old and 52% were female. e 2,a Minutes Continued, November 19, 2012 Mr. Duque suggested three ways of addressing getting public information out to ' the citizens: 1) join Facebook, 2) complete the redesign of the city's website, and 3) quarterly meetings with the city manager. S. EXECUTIVE SESSION The regular meeting was recessed at 5:05 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.072, Deliberations of Real Property. 6. RECONVENE The regular meeting was reconvened at 6:15 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATION City Manager's Report: a. City offices closed in observance of Thanksgiving holiday on Thursday, November 23rd and Friday, November 24tH b. Christmas on the Avenue event - Saturday, Dec. 1St ' c. Annual Lighted Christmas Parade - Tuesday, Dec. 11th 8. AD.IOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 6:18 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers. Noes: None. Absent: Mayor Pro Tem Neal, and Councilmember Austin. R. A. Nugent, M or City of Nederl ' d, Texas ATTEST: - 2�u I /vim I Ga J Ferguso Ci y Clerk City of Nederland, Texas November 19, 2012 Date f,." 27 ABSENT CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET ' NAME TITLE PRESENT R. A. Nugent Mayor `Talmadge Austin Council Member- Ward I Billy Neal Council Member- Ward II Don Albanese Council Member- Ward III ✓ Bert Rogers Council Member- Ward IV V Chris Duque City Manager ✓ Gay Ferguson City Clerk V/ Jesse Branick City Attorney v Cheryl Dowden Director of Finance ' I C„aiu Pa4p(' Police Chief Gary Collins Fire Chief `Steve Hamilton Director of Public Works George Wheeler Building Official Victoria Klehn Librarian Emily Pope Human Resources Director Joni Underwood Executive Secretary ✓ Angela Fanette Parks Director or”- R. A. Nuge�ngt, Ma Gay Fergus%h, City Clerk J November 19, 2012 Date f,." 27 ABSENT ONC, J. SHANE HOWARD SUSIE JAMES TAX ASSESSOR-COLLECTOR CHIEF DEPUTY STATE OF TEXAS COUNTY OF JEFFERSON I, J. Shane Howard, 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 $36,800.18, represents all taxes collected for CITY OF NEDERLAND during the month of OCTOBER 2012. J, Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 1 u 1 1 RESOLUTION 2012-16 A RESOLUTION OF THE CITY OF NEDERLAND RATIFYING THE ACTION OF THE NEDERLAND ECONOMIC DEVELOPMENT CORPORATION. WHEREAS, the present and prospective right to gainful employment and general welfare of the people of Nederland require as a public purpose the promotion and development of new and expanded business enterprises; and WHEREAS, the existence, development, and expansion of business, commerce, and industry are essential to the economic growth of Nederland and to the full employments, welfare, and prosperity of its citizens; and WHEREAS, the means and measures authorized by the Texas Legislature and the assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic development are in the public interest and serve a public purpose in promoting the welfare of the citizens of the City economically by the securing and retaining of business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability; and WHEREAS, the citizens of the City of Nederland provided for the creation of the Nederland Economic Development Corporation by popular vote in a duly authorized election to serve the public purposes herein described; and ' WHEREAS, the Nederland Economic Development Corporation is authorized and empowered under applicable state law, its charter, bylaws and by board approval, to aid in the development of business enterprises by offering incentives to prospective new and expanding businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the action of the Board of Directors of the Nederland Economic Development Corporation (`Board") relating to project costs associated with Specialty Insulation Solutions, LLC, in an aggregate maximum amount of not more than One Hundred Thousand dollars ($100,000.00), in accordance with the terms and conditions as prescribed by the Board, is hereby ratified. PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 12th day of November , 2012 at which meeting a quorum was present and voting. R. A. Nugent,or City ofNederl d, Texas ATTEST: Q�aua,"zexkl_ ay Fer son, City CI c City of Nederland, Texas ' APPROVED AS TO FO AND LEGALITY: Jesse ranick, i Attorney City f Nede d, Texas 0x0!'229 Ct Ili x''30 PASSED AND APPROVED ON THE SECOND READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 1% of 2012 at which meeting a quorum was present and voting. R A. Nugent or City of Nederlan Texas ATTEST: Ory Fer on, City C k City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: t Jes rac�yy 1 �ty Attorney C' of 6d and Texas 1 1 1 a"C.231 REGULAR MEETING OF THE CITY COUNCIL OF THE ICITY OF NEDERLAND 4:30 p.m. December 10, 2012 MEETING The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -c as presented. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—November 12, 2012 workshop and November 19, 2012 regular meeting b. Reports - November 2012 c. Payments: • November 2012 monthly bills • Walker Partners - $3,811.42, 2010 Water System Improvements project • Schaumburg & Polk, Inc. - $5,064.70, 18th Street Waterline Replacement project • Schaumburg & Polk, Inc. - $1,212.50, 2009 Sewer Rehabilitation project • Allco, Inc. - $156,210.56, 18th Street Waterline Replacement project 4. REGULAR AGENDA a. Chris Duque, City Manager, reminded everyone that Mr. Hicks addressed the Council on November 12, 2012 in regards to his daughter's property at 2105 Canal Avenue. A report was made by a citizen of drainage problems at this location. It was found the culvert was not positioned properly, was not of an approved material, and was undersized. In compliance with city policy, the culvert was removed and placed on the property owners' property. Mr. Hicks suggested the culvert was pulled up and placed during the construction along t Canal Avenue. After investigation of this claim, there was no evidence supporting this claim. Mr. Duque recommended providing a drivable access to the property, with a 4' culvert, but this should not set a precedent for other property owners who have installed non -conforming culverts. Minutes Continued, December 10, 2012 A motion • was, made by Councilmember Albanese and seconded by Councilmember Austin to approve providing a 4' culvert for a drivable access on property located at 2105 Canal Avenue. MOTION CARRIED. ' Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. b. The regular meeting was recessed and a Joint Public Hearing was called to order at 4:34 by Mayor Nugent for the purpose of receiving comments regarding the rezoning of 1616 Highway 365, Meadow Garden Estates Mobile Home Park, being 5.074 acres of land, described as part of Lots 3 & 4, Block 14, Range G, Port Arthur Land Company from "C-3" Highway Retail Commercial District to "R-4" Manufactured Home District. Chris Duque, City Manager, advised that Mr. Robert Lund, owner of 1616 Highway 365, submitted a rezoning request. The same rezoning request was made last year and was unanimously denied. The Planning & Zoning Commission will meet on Tuesday, December 11, 2012 to consider the request. The joint public hearing is being held to allow any interested parties an opportunity to voice comments for or against this request. No action is necessary. George Wheeler, Building Official, reported requirements for the rezoning have all been met. There being no further questions and/or comments, the Public Hearing was adjourned and the regular meeting was reconvened at 4:41 by Mayor Nugent. c. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve a request from Ryan Slott to utilize the ' Nederland Recreation Center gymnasium for Nederland Little Dribblers League. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. Chris Duque, City Manager, reported on the LNVA Notice of 2013 Municipal Raw Water Rates notice. The 2012 rate was $0.20 for contracted volumes and the $0.02 increase represents a 10% rate increase. No action is necessary. e. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to approve a contract with MCO for an electronic document management system. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. f. A motion was made by Councilmember Austin and seconded by Councilmember Albanese to approve Resolution No. 2012-18, ratifying the action of the Nederland Economic Development Corporation related to the incentive offered to Howell's Furniture Co., LTD. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. g. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve Ordinance No. 2012-17, revising the City's ' Floodplain Ordinance. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. Minutes Continued December 10 2012 ' G'`r:?33 h. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Neal to approve Ordinance No. 2012-18, suspending the proposed Texas Gas ' Service rate increase. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. 5. EXECUTIVE SESSION The regular meeting was recessed at 4:53 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 and Chapter 551.072, Deliberations of Real Property. 6. RECONVENE The regular meeting was reconvened at 6:05 p.m. by Mayor Nugent. He announced that the Executive Session was held for informational purposes only and no action is necessary. 7. COMMUNICATION City Manager's Report: a. Construction Project Update. Steve Hamilton reported that the contractor ' is working on replacing the high power pumps at the water plant. Traffic on 18th Street will go back to 2 -way next week and the contractor is working on curbs, driveways, and root barriers. City Hall is in the bidding process. A second pre-bid conference will be held December 18th with Bid Opening January 8, 2013. b. 2"d December Regular Council meeting will be December 17tH 8. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 6:10 p.m. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. AIJAI R. A. Nugent, Ma City of Nederland, Texas ATTEST: ay Ferg n, City e_rW City of Nederland, Texas GrC X34 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT }, ` R. A. Nugent Mayor Talmadge Austin Council Member- Ward I Billy Neal Council Member- Ward II V� Don Albanese Council Member - Ward III Bert Rogers Council Member- Ward IV i U L� Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance Darrell Bush Police Chief v Gary Collins Fire Chief V Steve Hamilton Director of Public Works v George Wheeler Building Official V Victoria Klehn Librarian V Vacant Human Resources Director Joni Underwood Executive Secretary V Angela F/anette Parks Director pAlugen, R.M ,6 / Gay Fergufi6n, City ClerG December 10, 2012 Date 0--14:01 1 1 CITY OF NEDERLAND 600235 ORDINANCE NO. 2012-17 AN ORDINANCE OF THE CITY OF NEDERLAND, TEXAS, ADOPTING REGULATIONS DESIGNED TO MINIMIZE FLOOD LOSSES, AND PROVIDING PENALTY (NOT TO EXCEED $500.00 EACH DAY), AND SEVERABILITY CLAUSES. ARTICLE I STATUTORYAUTHORIZATION, FINDINGS OFFACT, PURPOSEAND METHODS SECTION A. STATUTORY AUTHORIZATION The Legislature of the State of Texas has in the Flood Control Insurance Act, Texas Water Code, Section 16.315, delegated the responsibility of local governmental units to adopt regulations designed to minimize flood losses. Therefore, the City Council of the City of Nederland, Texas does ordain as follows: SECTION B. FINDINGS OF FACT (1) The flood hazard areas of the City of Nederland are subject to periodic inundation, which results in loss of life and property, health and safety hazards, disruption of commerce and governmental services, and extraordinary public expenditures for flood protection and relief, all of which adversely affect the public health, safety and general welfare. (2) These flood losses are created by the cumulative effect of obstructions in floodplains which cause an increase in flood heights and velocities, and by the occupancy of flood hazard areas by uses vulnerable to floods and hazardous to other lands because they are inadequately elevated, floodproofed or otherwise protected from flood damage. SECTION C. STATEMENT OF PURPOSE It is the purpose of this ordinance to promote the public health, safety and general welfare and to minimize public and private losses due to flood conditions in specific areas by provisions designed to: (1) Protect human life and health; (2) Minimize expenditure of public money for costly flood control projects; (3) Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public; (4) Minimize prolonged business interruptions; (5) Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets and bridges located in floodplains; (6) Help maintain a stable tax base by providing for the sound use and development of flood -prone areas in such a manner as to minimize future flood blight areas; and (7) Insure that potential buyers are notified that property is in a flood area. SECTION D. METHODS OF REDUCING FLOOD LOSSES In order to accomplish its purposes, this ordinance uses the following methods: 0 � 23e (1) Restrict or prohibit uses that are dangerous to health, safety or property in times of flood, or cause excessive increases in flood heights or velocities; (2) Require that uses vulnerable to floods, including facilities which serve such uses, be ' protected against flood damage at the time of initial construction; (3) Control the alteration of natural floodplains, stream channels, and natural protective barriers, which are involved in the accommodation of flood waters; (4) Control filling, grading, dredging and other development which may increase flood damage; (5) Prevent or regulate the construction of flood barriers which will unnaturally divert flood waters or which may increase flood hazards to other lands. ARTICLE 2 DEFINITIONS Unless specifically defined below, words or phrases used in this ordinance shall be interpreted to give them the meaning they have in common usage and to give this ordinance its most reasonable application. ALLUVIAL FAN FLOODING - means flooding occurring on the surface of an alluvial fanor similar landform which originates at the apex and is characterized by high -velocity flows; active processes of erosion, sediment transport, and deposition; and unpredictable flow paths. APEX - means a point on an alluvial fan or similar landform below which the flow path of the major stream that formed the fan becomes unpredictable and alluvial fan flooding can occur. ' APPURTENANT STRUCTURE — means a structure which is on the same parcel of property as the principal structure to be insured and the use of which is incidental to the use of the principal structure AREA OF FUTURE CONDITIONS FLOOD HAZARD — means the land area that would be inundated by the 1 -percent -annual chance (100 year) flood based on future conditions hydrology. AREA OF SHALLOW FLOODING - means a designated AO, AH, AR/AO, AR/AH, or VO zone on a community's Flood Insurance Rate Map (FIRM) with a 1 percent or greater annual chance of flooding to an average depth of 1 to 3 feet where a clearly defined channel does not exist, where the path of flooding is unpredictable and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. AREA OF SPECIAL FLOOD HAZARD - is the land in the floodplain within a community subject to a I percent or greater chance of flooding in any given year. The area may be designated as Zone A on the Flood Hazard Boundary Map (FHBM). After detailed rate making has been completed in preparation for publication of the FIRM, Zone A usually is refined into Zones A, AO, AH, Al -30, AE, A99, AR, AR/AI-30, ARAE, AR/AO, AR/AH, AR/A, VO, Vl- 30, VE or V. BASE FLOOD - means the flood having a 1 percent chance of being equaled or exceeded in, any given year. BASE FLOOD ELEVATION (BFE) — The elevation shown on the Flood Insurance Rate Map (FIRM) and found in the accompanying Flood Insurance Study (FIS) for Zones A, AE, AH, Al - A30, AR, V 1-V30, or VE that indicates the water surface elevation resulting from the flood that I has a 1% chance of equaling or exceeding that level in any given year - also called the Base Flood. O'n0'237 BASEMENT - means any area of the building having its floor subgrade (below ground level) on all sides. ' BREAKAWAY WALL — means a wall that is not part of the structural support of the building and is intended through its design and construction to collapse under specific lateral loading forces, without causing damage to the elevated portion of the building or supporting foundation system. CRITICAL FEATURE - means an integral and readily identifiable part of a flood protection system, without which the flood protection provided by the entire system would be compromised. DEVELOPMENT - means any man-made change to improved and unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations or storage of equipment or materials. ELEVATED BUILDING — means, for insurance purposes, a non -basement building, which has its lowest elevated floor, raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. EXISTING CONSTRUCTION - means for the purposes of determining rates, structures for which the "start of construction" commenced before the effective date of the FIRM or before January 1, 1975, for FIRMS effective before that date. 'Existing construction" may also be referred to as "existing structures." EXISTING MANUFACTURED HOME PARK OR SUBDIVISION - means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including, at a minimum, the installation of utilities, ' the construction of streets, and either final site grading or the pouring of concrete pads) is completed before the effective date of the floodplain management regulations adopted by a community. EXPANSION TO AN EXISTING MANUFACTURED HOME PARK OR SUBDIVISION - means the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads). FLOOD OR FLOODING - means a general and temporary condition of partial or complete inundation of normally dry land areas from: (1) the overflow of inland or tidal waters. (2) the unusual and rapid accumulation or runoff of surface waters from any source. FLOOD ELEVATION STUDY — means an examination, evaluation and determination of flood bazards and, if appropriate, corresponding water surface elevations, or an examination, evaluation and determination of mudslide (i.e., mudflow) and/or flood -related erosion hazards. FLOOD INSURANCE RATE MAP (FIRM) - means an official map of a community, on which the Federal Emergency Management Agency has delineated both the special flood hazard areas and the risk premium zones applicable to the community. FLOOD INSURANCE STUDY (FIS) — see Flood Elevation Study FLOODPLAIN OR FLOOD -PRONE AREA - means any land area susceptible to being inundated by water from any source (see definition of flooding). FLOODPLAIN MANAGEMENT - means the operation of an overall program of corrective and preventive measures for reducing flood damage, including but not limited to emergency preparedness plans, flood control works and floodplain management regulations. FLOODPLAIN MANAGEMENT REGULATIONS - means zoning ordinances, subdivision regulations, building codes, health regulations, special purpose ordinances (such as a floodplain , ordinance, grading ordinance and erosion control ordinance) and other applications of police power. The term describes such state or local regulations, in any combination thereof, which provide standards for the purpose of flood damage prevention and reduction. FLOOD PROTECTION SYSTEM - means those physical structural works for which funds have been authorized, appropriated, and expended and which have been constructed specifically to modify flooding in order to reduce the extent of the area within a community subject to a "special flood hazard" and the extent of the depths of associated flooding. Such a system typically includes hurricane tidal barriers, dams, reservoirs, levees or dikes. These specialized flood modifying works are those constructed in conformance with sound engineering standards. FLOOD PROOFING - means any combination of structural and non-structural additions, changes, or adjustments to structures which reduce or eliminate flood damage to real estate or improved real property, water and sanitary facilities, structures and their contents. FLOODWAY — see Regulatory Hoodway FUNCTIONALLY DEPENDENT USE - means a use, which cannot perform its intended purpose unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, but does not include long-term storage or related manufacturing facilities. HIGHEST ADJACENT GRADE - means the highest natural elevation of the ground surface prior to construction next to the proposed walls of a structure. HISTORIC STRUCTURE - means any structure that is: ' (1) Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; (2) Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district; (3) Individually listed on a state inventory of historic places in states with historic preservation programs which have been approved by the Secretary of the Interior; or (4) Individually listed on a local inventory or historic places in communities with historic preservation programs that have been certified either: (a) By an approved state program as determined by the Secretary of the Interior or, (b) Directly by the Secretary of the Interior in states without approved programs. LEVEE - means a man-made structure, usually an earthen embankment, designed and constructed in accordance with sound engineering practices to contain, control, or divert the flow of water so as to provide protection from temporary flooding. LEVEE SYSTEM - means a flood protection system which consists of a levee, or levees, and associated structures, such as closure and drainage devices, which are constructed and operated in accordance with sound engineering practices. LOWEST FLOOR - means the lowest floor of the lowest enclosed area (including basement). An unfinished or flood resistant enclosure, usable solely for parking or vehicles, building access or storage in an area other than a basement area is not considered a building's lowest floor; OCC239 provided that such enclosure is not built so as to render the structure in violation of the applicable non -elevation design requirement of Section 60.3 of the National Flood Insurance ' Program regulations. MANUFACTURED HOME - means a structure transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation when connected to the required utilities. The term "manufactured home" does not include a "recreational vehicle". MANUFACTURED HOME PARK OR SUBDIVISION - means a parcel (or contiguous parcels) of land divided into two or more manufactured home lots for rent or sale. *MEAN SEA LEVEL - means, for purposes of the National Flood Insurance Program, the North American Vertical Datum (NAVD) of 1988 or other datum, to which base flood elevations shown on a community's Flood Insurance Rate Map are referenced. NEW CONSTRUCTION - means, for the purpose of determining insurance rates, structures for which the "start of construction" commenced on or atter the effective date of an initial FIRM or after December 31, 1974, whichever is later, and includes any subsequent improvements to such structures. For floodplain management purposes, "new construction" means structures for which the "start of construction" commenced on or after the effective date of a floodplain management regulation adopted by a community and includes any subsequent improvements to such structures. NEW MANUFACTURED HOME PARK OR SUBDIVISION - means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed ' on or after the effective date of floodplain management regulations adopted by a community. RECREATIONAL VEHICLE - means a vehicle which is (i) built on a single chassis; (ii) 400 square feet or less when measured at the largest horizontal projections; (iii) designed to be self- propelled or permanently towable by a light duty truck; and (iv) designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. *REGULATORY FLOODWAY - means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height. RIVERINE — means relating to, formed by, or resembling a river (including tributaries), stream, brook, etc. SPECIAL FLOOD HAZARD AREA — see Area of Special Flood Hazard START OF CONSTRUCTION - (for other than new construction or substantial improvements under the Coastal Barrier Resources Act (Pub. L. 97-348)), includes substantial improvement and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition placement, or other improvement was within 180 days of the permit date. The actual start means either the first placement of permanent construction of a structure on a site, such as the pouring of slab or footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the placement of a manufactured home on a foundation. Permanent construction does not include land preparation, such as clearing, grading and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for basement, footings, piers or foundations or the ' erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the eactemal dimensions of the building. 5 A STRUCTURE — means, for floodplain management purposes, a walled and roofed building, Cr 4 0 including a gas or liquid storage tank, that is principally above ground, as well as a manufactured I home. SUBSTANTIAL DAMAGE - means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. SUBSTANTIAL U81PROVEMENT - means any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before "start of construction" of the improvement This term includes structures which have incurred "substantial damage", regardless of the actual repair work performed. The term does not, however, include either: (1) Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications which have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions or (2) Any alteration of a "historic structure", provided that the alteration will not preclude the structure's continued designation as a "historic structure." VARIANCE — means a grant of relief by a community from the terms of a floodplain management regulation. (For full requirements see Section 60.6 of the National Flood Insurance Program regulations.) VIOLATION - means the failure of a structure or other development to be fully compliant with the community's floodplain management regulations. A structure or other development without the elevation certificate, other certifications, or other evidence of compliance required in Section 60.3(b)(5), (c)(4), (c)(10), (d)(3), (e)(2), (e)(4), or (e)(5) is presumed to be in violation until such time as that documentation is provided. ' *WATER SURFACE ELEVATION - means the height, in relation to the North American Vertical Datum (NAND) of 1988 (or other datum, where specified), of floods of various magnitudes and frequencies in the floodplain of coastal or riverine areas. ARTICLE 3 GENERAL PROVISIONS SECTION A. LANDS TO WHICH THIS ORDINANCE APPLIES The ordinance shall apply to all areas of special flood hazard with the jurisdiction of the City of Nederland. *SECTION B. BASIS FOR ESTABLISHING THE AREAS OF SPECIAL FLOOD HAZARD The areas of special flood hazard identified by the Federal Emergency Management Agency in the current scientific and engineering report entitled, "The Flood Insurance Study (FIS) for the Citv of Nederland. Communitv Number 485492 0005D dated June 3. 1991, and. Flood Insurance Studv. Jefferson Countv. Texas. Uninco%orated Areas. Effective Julv 1980. with accompanying Flood Insurance Rate Maps and/or Flood Boundary-Floodway Maps (FIRM and/or FBFM) dated FIRM dated June 3, 1991 and FIRM dated August 6, 2002, and any revisions thereto are hereby adopted by reference and declared to be a part of this ordinance. SECTION C. ESTABLISHMENT OF DEVELOPMENT PERMIT A Floodplain Development Permit shall be required to enure conformance with the provisions I of this ordinance. SECTION D. COMPLIANCE ' No structure or land shall hereafter be located, altered, or have its use changed without full compliance with the terms of this ordinance and other applicable regulations. SECTION E. ABROGATION AND GREATER RESTRICTIONS This ordinance is not intended to repeal, abrogate, or impair any existing easements, covenants, or deed restrictions. However, where this ordinance and another ordinance, easement, covenant, or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall prevail. SECTION F. INTERPRETATION In the interpretation and application of this ordinance, all provisions shall be; (1) considered as minimum requirements; (2) liberally construed in favor of the governing body; and (3) deemed neither to limit nor repeal any other powers granted under State statutes. SECTION G. WARNING AND DISCLAIMER OR LIABILITY The degree of flood protection required by this ordinance is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. On rare occasions greater floods can and will occur and flood heights may be increased by man-made or natural causes, This ordinance does not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This ordinance shall not create liability on the part of the community or any official or employee thereof for any flood damages that result from reliance on this ordinance or any administrative decision lawfully made hereunder. ARTICLE 4 ADMINISTRATION SECTION A. DESIGNATION OF THE FLOODPLAIN ADMINISTRATOR, The Chief Buildine Official is hereby appointed the Floodplain Administrator to administer and implement the provisions of this ordinance and other appropriate sections of 44 CFR (Emergency Management and Assistance - National Flood Insurance Program Regulations) pertaining to floodplain management. SECTION B. DUTIES & RESPONSIBILITIES OF THE FLOODPLAIN ADMINISTRATOR Duties and responsibilities of the Floodplain Administrator shall include, but not be limited to, the following: (1) Maintain and hold open for public inspection all records pertaining to the provisions of this ordinance. (2) Review permit application to determine whether to ensure that the proposed building site project, including the placement of manufactured homes, will be reasonably safe from flooding. (3) Review, approve or deny all applications for development permits required by adoption of this ordinance. (4) Review permits for proposed development to assure that all necessary permits have been obtained from those Federal, State or local governmental agencies (including Section 404 of the Federal Water Pollution Control Act Amendments of 1972, 33 U.S.C. 1334) from which prior approval is required. (5) Where interpretation is needed as to the exact location of the boundaries of the areas of special flood hazards (for example, where there appears to be a conflict between a mapped I boundary and actual field conditions) the Floodplain Administrator shall make the necessary interpretation. *(6) Notify, in riverine situations, adjacent communities and the State Coordinating Agency which is the Texas Water Development Board (TWDB) and also the Texas Commission on Environmental Quality (TCEQ), prior to any alteration or relocation of a watercourse, and submit evidence of such notification to the Federal Emergency Management Agency. (7) Assure that the flood carrying capacity within the altered or relocated portion of any watercourse is maintained. (8) When base flood elevation data has not been provided in accordance with Article 3, Section B, the Floodplain Administrator shall obtain, review and reasonably utilize any base flood elevation data and floodway data available from a Federal, State or other source, in order to administer the provisions of Article 5. *(9) When a regulatory floodway has not been designated, the Floodplain Administrator must require that no new construction, substantial improvements, or other development (including fill) shall be permitted within Zones Al -30 and AE on the community's FIRM, unless it is demonstrated that the cumulative effect of the proposed development, when combined with all other existing and anticipated development, will not increase the water surface elevation of the base flood more than one foot at any point within the community. *(10) Under the provisions of 44 CFR Chapter 1, Section 65.12, of the National Flood Insurance Program regulations, a community may approve certain development in Zones Al -30, AE, AH, on the community's FIRM which increases the water surface elevation of the base flood by more than I foot, provided that the community first completes all of the provisions required by Section 65.12. SECTION C. PERMIT PROCEDURES (1) Application for a Floodplain Development Permit shall be presented to the Floodplain Administrator on forms furnished by him/her and may include, but not be limited to, plans in duplicate drawn to scale showing the location, dimensions, and elevation of proposed landscape alterations, existing and proposed structures, including the placement of manufactured homes, and the location of the foregoing in relation to areas of special flood hazard. Additionally, the following information is required: (a) Elevation (in relation to mean sea level), of the lowest floor (including basement) of all new and substantially improved structures; (b) Elevation in relation to mean sea level to which any nonresidential structure shall be floodproofed; (c) A certificate from a registered professional engineer or architect that the nonresidential floodproofed structure shall meet the floodproofing criteria of Article 5, Section B (2); (d) Description of the extent to which any watercourse or natural drainage will be altered or relocated as a result of proposed development; (e) Maintain a record of all such information in accordance with Article 4, Section (B)(1); , (2) Approval or denial of a Floodplain Development Permit by the Flooplain Administrator shall be based on all of the provisions of this ordinance and the following relevant factors: (a) The danger to life and property due to flooding or erosion damage; v t, ( 2 a 3 (b) The susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner; (c) The danger that materials may be swept onto other lands to the injury of others; (d) The compatibility of the proposed use with existing and anticipated development; (e) The safety of access to the property in times of flood for ordinary and emergency vehicles; (f) The costs of providing governmental services during and after flood conditions including maintenance and repair of streets and bridges, and public utilities and facilities such as sewer, gas, electrical and water systems; (g) The expected heights, velocity, duration, rate of rise and sediment transport of the floodwaters and the effects of wave action, if applicable, expected at the site; (h) The necessity to the facility of a waterfront location, where applicable; (i) The availability of alternative locations, not subject to flooding or erosion damage, for the proposed use. SECTION D. VARIANCE PROCEDURES (1) The Appeal Board, as established by the community, shall hear and render judgment on requests for variances from the requirements of this ordinance. ' (2) The Appeal Board shall hear and render judgment on an appeal only when it is alleged there is an error in any requirement, decision, or determination made by the Floodplain Administrator in the enforcement or administration of this ordinance. (3) Any person or persons aggrieved by the decision of the Appeal Board may appeal such decision in the courts of competent jurisdiction. (4) The Floodplain Administrator shall maintain a record of all actions involving an appeal and shall report variances to the Federal Emergency Management Agency upon request. (5) Variances may be issued for the reconstruction, rehabilitation or restoration of structures listed on the National Register of Historic Places or the State Inventory of Historic Places, without regard to the procedures set forth in the remainder of this ordinance. (6) Variances may be issued for new construction and substantial improvements to be erected on a lot of 1/2 acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, providing the relevant factors in Section C (2) of this Article have been fully considered. As the lot size increases beyond the 1/2 acre, the technical justification required for issuing the variance increases. (7) Upon consideration of the factors noted above and the intent of this ordinance, the Appeal Board may attach such conditions to the granting of variances as it deems necessary to further the purpose and objectives of this ordinance (Article 1, Section C). (8) Variances shall not be issued within any designated floodway if any increase in flood levels during the base flood discharge would result. ' (9) Variances may be issued for the repair or rehabilitation of historic structures upon a determination that the proposed repair or rehabilitation will not preclude the structure's continued designation as a historic structure and the variance is the minimum necessary to preserve the historic character and design of the structure. �1 [10) Prerequisites for granting variances: t V r (a) Variances shat] only be issued upon a determination that the variance is the minimum necessary, considering the flood hazard, to afford relief. (b) Variances shall only be issued upon: (i) showing a good and sufficient cause; (ii) a determination that failure to grant the variance would result in exceptional hardship to the applicant, and (iii) a determination that the granting of a variance will not result in increased flood heights, additional threats to public safety, extraordinary public expense, create nuisances, cause fraud on or victimization of the public, or conflict with existing local laws or ordinances. (c) Any application to which a variance is granted shall be given written notice that the structure will be permitted to be built with the lowest floor elevation below the base flood elevation, and that the cost of flood insurance will be commensurate with the increased risk resulting from the reduced lowest floor elevation. (11) Variances may be issued by a community for new construction and substantial improvements and for other development necessary for the conduct of a functionally dependent use provided that (i) the criteria outlined in Article 4, Section D (1)-(9) are met, and (ii) the structure or other development is protected by methods that minimize flood damages during the base flood and create no additional threats to public safety. ARTICLE 5 PROVISIONS FOR FLOOD HAZARD REDUCTION SECTION A. GENERAL STANDARDS In all areas of special flood hazards the following provisions are required for all new construction ' and substantial improvements: (1) All new construction or substantial improvements shall be designed (or modified) and adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy; (2) All new construction or substantial improvements shall be constructed by methods and practices that minimize flood damage; (3) All new construction or substantial improvements shall be constructed with materials resistant to flood damage; (4) All new construction or substantial improvements shall be constructed with electrical, heating, ventilation, plumbing, and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding; (5) All new and replacement water supply systems shall be designed to minimize or eliminate infiltration of flood waters into the system; (6) New and replacement sanitary sewage systems shall be designed to minimize or eliminate infiltration of flood waters into the system and discharge from the systems into flood waters; and, (7) On-site waste disposal systems shall be located to avoid impairment to them or contamination from them during flooding. I 10 COC245 SECTION B. SPECIFIC STANDARDS ' In all areas of special flood hazards where base flood elevation data has been provided as set forth in (i) Article 3, Section B, (ii) Article 4, Section B (8), or (iii) Article 5, Section C (3), the following provisions are required: (1) Residential Construction - new construction and substantial improvement of any residential structure shall have the lowest floor (including basement), elevated to at least one and one-half feet above the base flood elevation. A registered professional engineer, architect, or land surveyor shall submit a certification to the Floodplain Administrator that the standard of this subsection as proposed in Article 4, Section C (1) a., is satisfied. (2) Nonresidential Construction - new construction and substantial improvements of any commercial, industrial or other nonresidential structure shall either have the lowest floor (including basement) elevated to at least one and one-half feet above the base flood level or together with attendant utility and sanitary facilities, be designed so that below the base flood level the structure is watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic and hydrodynamic loads and effects of buoyancy. A registered professional engineer or architect shall develop and/or review structural design, specifications, and plans for the construction, and shall certify that the design and methods of construction are in accordance with accepted standards of practice as outlined in this subsection. A record of such certification which includes the specific elevation (in relation to mean sea level) to which such structures are floodproofed shall be maintained by the Floodplain Administrator. (3) Enclosures - new construction and substantial improvements, with fully enclosed areas below the lowest floor that are usable solely for parking of vehicles, building access or storage in ' an area other than a basement and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a registered professional engineer or architect or meet or exceed the following minimum criteria: (a) A minimum of two openings on separate walls having a total net area of not less than 1 square inch for every square foot of enclosed area subject to flooding shall be provided. (b) The bottom of all openings shall be no higher than 1 foot above grade. (c) Openings may be equipped with screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. (4) Manufactured Homes - (a) Require that all manufactured homes to be placed within Zone A on a community's FHBM or FIRM shall be installed using methods and practices which minimize flood damage. For the purposes of this requirement, manufactured homes must be elevated and anchored to resist flotation, collapse, or lateral movement. Methods of anchoring may include, but are not limited to, use of over -the -top or frame ties to ground anchors. This requirement is in addition to applicable State and local anchoring requirements for resisting wind forces. (b) Require that manufactured homes that are placed or substantially improved within Zones Al -30, AH, and AE on the community's FIRM on sites (i) outside of a manufactured home park or subdivision, (ii) in a new manufactured home park or subdivision, (iii) in an expansion to an existing manufactured home park or subdivision, or (iv) in an existing manufactured home park or subdivision on which a manufactured home has incurred "substantial damage" as a result of a flood, be elevated on a permanent foundation such that the lowest floor of the manufactured . home is elevated to or above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist flotation, collapse, and lateral movement. (c) Require that manufactured homes be placed or substantially improved on sites in an existing manufactured home park or subdivision with Zones Al -30, AH and AE on the community's FIRM that are not subject to the provisions of paragraph (4) of this section be f elevated so that either: (i) the lowest floor of the manufactured home is at or above the base flood ' elevation, or (ii) the manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches in height above grade and be securely anchored to an adequately anchored foundation system to resist flotation, collapse, and lateral movement. (5) Recreational Vehicles - Require that recreational vehicles placed on sites within Zones Al -30, AH, and AE on the community's FIRM either (i) be on the site for fewer than 180 consecutive days, or (ii) be fully licensed and ready for highway use, or (iii) meet the permit requirements of Article 4, Section C (1), and the elevation and anchoring requirements for "manufactured homes" in paragraph (4) of this section. A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions. SECTION C. STANDARDS FOR SUBDIVISION PROPOSALS, (1) All subdivision proposals including the placement of manufactured home parks and subdivisions shall be consistent with Article 1, Sections B, C, and D of this ordinance. (2) All proposals for the development of subdivisions including the placement of manufactured home parks and subdivisions shall meet Floodplain Development Permit requirements of Article 3, Section C; Article 4, Section C; and the provisions of Article 5 of this ordinance. (3) Base flood elevation data shall be generated for subdivision proposals and other ' proposed development including the placement of manufactured home parks and subdivisions which is greater than 50 lots or 5 acres, whichever is lesser, if not otherwise provided pursuant to Article 3, Section B or Article 4, Section B (8) of this ordinance. (4) All subdivision proposals including the placement of manufactured home parks and subdivisions shall have adequate drainage provided to reduce exposure to flood hazards. (5) All subdivision proposals including the placement of manufactured home parks and subdivisions shall have public utilities and facilities such as sewer, gas, electrical and water systems located and constructed to minimize or eliminate flood damage. SECTION D. STANDARDS FOR AREAS OF SHALLOW FLOODING (AO/AH ZONES) Located within the areas of special flood hazard established in Article 3, Section B, are areas designated as shallow flooding. These areas have special flood hazards associated with flood depths of 1 to 3 feet where a clearly defined channel does not exist, where the path of flooding is unpredictable, and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow; therefore, the following provisions apply: (1) All new construction and substantial improvements of residential structures have the lowest floor (including basement) elevated to or above the base flood elevation or the highest adjacent grade at least as high as the depth number specified in feet on the community's FIRM (at least 2 feet if no depth number is specified). (2) All new construction and substantial improvements of non-residential structures; (a) have the lowest floor (including basement) elevated to or above the base flood ' elevation or the highest adjacent grade at least as high as the depth number specified in feet on the community's FIRM (at least 2 feet if no depth number is specified), or 12 OOr247 No structure or land shall hereafter be constructed, located, extended, converted, or altered without full compliance with the terms of this court order and other applicable regulations. Violation of the provisions of this court order by failure to comply with any of its requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Any person who violates this court order or fails to comply with any of its requirements shall upon conviction thereof be fined not more than $500.00 dollars for each violation, and in addition shall pay all costs and expenses involved in the case. Nothing herein contained shall prevent the Nederland City Council from taking such other lawful action as is necessary to prevent or remedy any violation. PASSED and APPROVED by the City Council of the City of Nederland, Texas, at a regular meeting on this 10th day of December. 2012. R. A. Nugent yor City of Nederl d, Texas 13 (b) together with attendant utility and sanitary facilities be designed so that below the base specified flood depth in an AO Zone, or below the Base Flood Elevation in an AH Zone, level the structure is watertight with walls substantially impermeable to the passage of water and ' with structural components having the capability of resisting hydrostatic and hydrodynamic loads of effects of buoyancy. (3) A registered professional engineer or architect shall submit a certification to the Floodplain Administrator that the standards of this Section, as proposed in Article 4, Section C are satisfied. (4) Require within Zones AH or AO adequate drainage paths around structures on slopes, to guide flood waters around and away from proposed structures. SECTION E. FLOODWAYS Floodways - located within areas of special flood hazard established in Article 3, Section B, are areas designated as floodways. Since the floodway is an extremely hazardous area due to the velocity of flood waters which cavy debris, potential projectiles and erosion potential, the following provisions shall apply: (1) Encroachments are prohibited, including fill, new construction, substantial improvements and other development within the adopted regulatory floodway unless it has been demonstrated through hydrologic and hydraulic analyses performed in accordance with standard engineering practice that the proposed encroachment would not result in any increase in flood levels within the community during the occurrence of the base flood discharge. (2) If Article 5, Section E (1) above is satisfied, all new construction and substantial improvements shall comply with all applicable flood hazard reduction provisions of Article 5. (3) Under the provisions of 44 CFR Chapter 1, Section 65.12, of the National Flood ' Insurance Program Regulations, a community may permit encroachments within the adopted regulatory floodway that would result in an increase in base flood elevations, provided that the community first completes all of the provisions required by Section 65.12. SECTION F. SEVERABILITY If any section, clause, sentence, or phrase of this Ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this Ordinance. SECTION G. PENALTIES FOR NON COMPLIANCE No structure or land shall hereafter be constructed, located, extended, converted, or altered without full compliance with the terms of this court order and other applicable regulations. Violation of the provisions of this court order by failure to comply with any of its requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Any person who violates this court order or fails to comply with any of its requirements shall upon conviction thereof be fined not more than $500.00 dollars for each violation, and in addition shall pay all costs and expenses involved in the case. Nothing herein contained shall prevent the Nederland City Council from taking such other lawful action as is necessary to prevent or remedy any violation. PASSED and APPROVED by the City Council of the City of Nederland, Texas, at a regular meeting on this 10th day of December. 2012. R. A. Nugent yor City of Nederl d, Texas 13 C,. r 3 ATTEST: ay Ferg on, City CI City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jes B City Attorney C. o ederland, Texas 1 1 1 _0 WHEREAS, on or about November 20, 2012 Texas Gas Service Company ("TGS" or "Company") filed a Statement of Intent with the City of Nederland ("City') to increase gas rates in the South Jefferson County Service Area by $1,587,904 per year; and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least March 26, 2013 in order to allow the City's rate experts sufficient time to determine the merits of TGS's proposed rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating TGS's $1,587,904 annual rate increase request, City's efforts will be coordinated with similarly situated municipalities in TGS's South Jefferson County Service Area; and WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City, and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. The statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. ORDINANCE NO. 2012-18 L AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE DECEMBER 26, 2012 EFFECTIVE DATE PROPOSED BY TEXAS GAS SERVICE COMPANY IN CONNECTION WITH ITS RATE INCREASE APPLICATION ENTITLED "STATEMENT OF INTENT TO INCREASE RATES FOR THE SOUTH JEFFERSON COUNTY SERVICE AREA," FILED ON NOVEMBER 20, 2012; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW BEFORE LOCAL AND STATE REGULATORY AUTHORITIES AND ANY COURT OF LAW; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about November 20, 2012 Texas Gas Service Company ("TGS" or "Company") filed a Statement of Intent with the City of Nederland ("City') to increase gas rates in the South Jefferson County Service Area by $1,587,904 per year; and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least March 26, 2013 in order to allow the City's rate experts sufficient time to determine the merits of TGS's proposed rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating TGS's $1,587,904 annual rate increase request, City's efforts will be coordinated with similarly situated municipalities in TGS's South Jefferson County Service Area; and WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City, and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, THAT: Section 1. 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 TGS's proposed rate increase, and the L' J proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until March 26, 2012 in order to complete the review and investigation by City's experts. Section 3. The City is authorized to join with other municipalities as part of the TGS South Jefferson County Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of TGS before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to TGS for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from TGS through the service of requests for information, which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 7. TGS shall reimburse the City for the reasonable costs of attorneys and consultant fees and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 8. 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. Section 9. This Ordinance shall become effective from and after its passage. PASSED AND APPROVED this the 10TH day of DECEMBER, 2012. R' A!. Nugent, Mayor ATTEST: ,✓/ fl o/,� ,/�0/7 7 »?h Gay Fergibson, City Cl4k " , Je se Br ni , City Attorney 1 THE LAWTON LAW FIRM, P.C. 701 Brazos Suire 500 • Austin, Texas 78701 • 512/.322-0019 • Fax: 512/716-8917 November 21, 2012 Mr. D. E. Sosa Mr. James Black City Manager -City of Groves City Attomey-City of Groves 3947 Lincoln P.O. Box 3286 Groves, TX 77619 Port Arthur, TX 77643 Mr. Chris Duque Mr. Jesse Branick City Manager -City of Nederland City Attorney -City of Nederland P.O. Box 967 3120 Central Mall Drive Nederland, TX 77627 Port Arthur, TX 77642 Mr. Floyd Johnson Ms. Val Tizeno City Manager -City of Port Arthur City Attorney -City of Port Arthur P.O. Box 1089 P.O. Box 1089 Port Arthur, TX 77641-1089 Port Arthur, TX 77640 Mr, Andre Wimer Mr. Pete Steele ' City Manger -City of Port Neches City Attorney -City of Port Neches 634 Ave C 3120 Central Mall Dr. Port Neches, TX 77651 Port Arthur, Texas 77642 RE: TGS November 20, 2012 Rate increase filing Dear City Officials, On or about November 20, 2012, you received from Texas Gas Service Company ("TGS" or "Company") a statement of intent application to increase the TGS gas rates in your city. The proposed rate increase has also been filed in all cities and environs of the Company's South Jefferson County Service Area. The Company is requesting an annual rate of increase of $1,587,904 which represents about an 18.53% increase above current non -gas related annual revenues. The Company's estimated impact of the proposed rate increase on the monthly bills of customers is shown below: Customer Class Averase Increase Residential $3.89 Commercial $22.71 Public Authority $1,432.22 Standard Transport $994.42 The City has exclusive original jurisdiction and must ultimately determine fair, just and reasonable rates.2 TGS has proposed that the rate change take effect on December 26, 2012. In ' Company Statement of Intent at page 5. order to provide time for a proper review of the Company's proposed increase the City may suspend the Company's proposed effective date for an additional 90 days.3 Thus, the City must pass a rate ordinance suspending the rates for up to 90 days beyond the Company's proposed ' December 26, 2012 date. Otherwise, if no action is taken TGS' proposed rate change will take effect on December 26, 2012, by operation of law. We have attached for your convenience a Rate Ordinance suspending the effective date of rate change from December 26, 2012, to March 26, 2012 (90 days suspension) allowing the City sufficient time to consider the Company's rate increase request. Following passage of the rate suspension ordinance a copy should be delivered to a TGS representative in your area well before the December 26, 2012, effective date. As we develop our review of the Company's proposed rate increase we will keep you informed of our findings. If you have any questions or concerns please do ngt�esitate to call. 2 Gas Utility Regulatory Act §103.001. 3 Gas Utility Regulatory Act § 104.107(a)(I). 1 1 1 OrT -53 ORDINANCE NO. ORDINANCE OF THE CITY OF TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE DECEMBER 26, 2012 EFFECTIVE DATE PROPOSED BY TEXAS GAS SERVICE COMPANY IN CONNECTION WITH ITS RATE INCREASE APPLICATION ENTITLED "STATEMENT OF INTENT TO INCREASE RATES FOR THE SOUTH JEFFERSON COUNTY SERVICE AREA," FILED ON NOVEMBER 20, 2012; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW BEFORE LOCAL AND STATE REGULATORY AUTHORITIES AND ANY COURT OF LAW; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about November 20, 2012 Texas Gas Service Company ("TGS" or "Company") filed a Statement of Intent with the City of ("City") to increase gas rates in the South Jefferson County Service Area by $1,587,904 per year; and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code § 103.001; and WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least March 26, 2013 in order to allow the City's rate experts sufficient time to determine the merits of TGS's proposed rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating TGS's $1,587,904 annual rate increase request, ' City's efforts will be coordinated with similarly situated municipalities in TGS's South Jefferson County Service Area; and 54. . WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF , 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 TGS's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until March 26, 2012 in order to complete the review and investigation by City's experts. Section 3. The City is authorized to join with other municipalities as part of the TGS South Jefferson County Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of TGS before local and state regulatory I authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to TGS for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from TGS through the service of requests for information, which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 7. TGS shall reimburse the City for the reasonable costs of attorneys and consultant fees and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 8. 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. Section 9. This Ordinance shall become effective from and after its passage. PASSED AND APPROVED this day of , 2012 1 1 ATTEST: 1 1 OC;r255 �' rs REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND ' 4:30 p.m. 1. MEETING December 17, 2012 The meeting was called to order at 4:30 p.m. by Mayor R. A. Nugent at the Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum. 2. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation and pledge of allegiance were lead by Councilmember Rogers. 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 Rogers and seconded by Councilmember Albanese to approve the Consent Agenda Items 3 a -e as presented. MOTION ' CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. a. Minutes—December 10, 2012 regular meeting b. Tax Assessor Collector Report - November 2012 c. Consider action approving Resolution No. 2012-18, ratifying the action of the Nederland Economic Development Corporation related to the incentive offered to Howell's Furniture Co., LTD. d. Street Light Requests: • Consider action authorizing the installation of a street light at 922 S. Twin City Highway • Consider action authorizing the installation of a street light at 1123 N. 17tH Street. e. Payments: • Carroll & Blackman, Inc. - Phase II MS4 Permit Implementation Services • Allco, Inc. - Nederland Water Treatment Plant Repairs/Improvements project • LaBiche Architectural Group, Inc. - City Facilities project 4. REGULAR AGENDA a. Mayor Nugent presented a Proclamation to Orville Dombrosky of The Barnabas ' Society declaring December 21, 2012 as "National Homeless Persons Memorial Day" in Nederland. Mr. Dombrosky thanked the council for their support and extended an invitation to an event at the Heritage Festival Pavilion supporting the homeless. Minutes Continued, December 17, 2012 099 57 A motion was made by Councilmember Rogers and seconded by Councilmember Austin to approve a proclamation in regards to "National Homeless Persons ' Memorial Day". MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers. Noes: None. 1 1 b. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve the rezoning of 1616 Highway 365, Meadow Garden Estates Mobile Home Park, being 5.074 acres of land, described as part of Lots 3 & 4, Block 14, Range G, Port Arthur Land Company from "C-3" Highway Retail Commercial District to "R-4" Manufactured Home District. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. c. A motion was made by Councilmember Albanese and seconded by Councilmember Austin to approve a contract with ES&S for rental of election equipment for the May 2013 General Election. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. d. A motion was made by Councilmember Albanese and seconded by Councilmember Rogers to approve a Social Media Policy. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. e. A motion was made by Councilmember Rogers and seconded by Councilmember Austin to approve transferring, donating, and /or selling 255 acres, more or less, of undeveloped property near the City's closed landfill off Twin City Highway to the Nederland Economic Development Corporation along with the right of first refusal on an additional tract of 614 acres more or less per attached exhibit(s) of undeveloped property adjacent thereto, all of which will be for economic development pursuant to a proposed contract of sale between the City and Nederland EDC. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. EXECUTIVE SESSION Mayor Nugent announced that it will not be necessary to conduct the scheduled Executive Session. 6. COMMUNICATION City Manager's Report: a. City offices closed in observance of Christmas and New Year's Day holidays. 7. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Albanese to adjourn the meeting at 5:05 p.m. MOTION CARRIED. ,�o Minutes Continued, December 17, 2012 Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers. Noes: None. R. A. 14ugent, or City of Nederla' d, Texas ATTEST: G ergus , City Clerk City of Nederland, Texas 1 1 1 CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT R. A. Nugent Mayor v, Talmadge Austin Council Member - Ward I V Billy Neal Council Member- Ward II V Don Albanese Council Member- Ward III Bert Rogers Council Member -Ward IV Chris Duque City Manager V Gay Ferguson City Clerk v Jesse Branick City Attorney V Cheryl Dowden Director of Finance \ V Darrell Bush Police Chief Gary Collins Fire Chief ,� Steve Hamilton Director of Public Works `� George Wheeler Building Official v Victoria Klehn Librarian V Vacant Human Resources Director Joni Underwood Executive Secretary V Angela Fanette Parks Director A)m R. A. Nugent, May yC�a �Fergu bn, City Clerk December 17, 2012 Date C'_'• r � 59 ABSENT u0 • �4-q' 50N 00G•2 J. SHANE HOWARD TAX ASSESSOR- COLLECTOR TEXAS STATE OF TEXAS COUNTY OF JEFFERSON SUSIE JAMES CHIEF DEPUTY I, J. Shane Howard, 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 $362,548.29, represents all taxes collected for CITY OF NEDERLAND during the month of NOVEMBER 2012. J. Shane Howard JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112 PHONE: (409)835-8516 • FAX: (409)835-8589 1 1 1 C, r) r 61 RESOLUTION 2012-18 A RESOLUTION OF THE CITY OF NEDERLAND RATIFYING THE ACTION OF THE NEDERLAND ECONOMIC DEVELOPMENT CORPORATION. WHEREAS, the present and prospective right to gainful employment and general welfare of the people of Nederland require as a public purpose the promotion and development of new and expanded business enterprises; and WHEREAS, the existence, development, and expansion of business, commerce, and industry are essential to the economic growth of Nederland and to the full employments, welfare, and prosperity of its citizens; and WHEREAS, the means and measures authorized by the Texas Legislature and the assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic development are in the public interest and serve a public purpose in promoting the welfare of the citizens of the City economically by the securing and retaining of business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability; and WHEREAS, the citizens of the City of Nederland provided for the creation of the Nederland Economic Development Corporation by popular vote in a duly authorized election to serve the public purposes herein described; and ' WHEREAS, the Nederland Economic Development Corporation is authorized and empowered under applicable state law, its charter, bylaws and by board approval, to aid in the development of business enterprises by offering incentives to prospective new and expanding businesses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the action of the Board of Directors of the Nederland Economic Development Corporation ("Board") relating to project costs associated with Howell's Furniture Co., LTD., in an aggregate maximum amount of not more than Two Hundred Fifty Thousand dollars ($250,000.00), in accordance with the terms and conditions as prescribed by the Board, is hereby ratified. PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 10th day of December . 2012 at which meeting a quorum was present and voting. R. A. Nugent, Ma City of Nederland, Texas ATTEST: i ay Fe on, Ci Clerk City of Nederland, Texas APPROVE T9 F01 i.M AND LEGALITY: Jes BVerila-nd,Texas ttorney C" of e% "I PASSED AND APPROVED ON THE SECOND FADING BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS this 1 I ay of L'�L'Cwn�ol . 2012 at which meeting a quorum was present and voting. ATTEST: Gay Fergu n, City Clerl City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jesse c , Ci Attorney City o N erland, Texas tM R. A. Nuge r City of Nederland, Texas 1 1 1