April 25, 2016REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLANO
4:30 p.r11. APrit 2S, 2016
Y. MEETING
The meeting was called to order at 4:30 p -m. by Mayor Nugent at the Nederland City
Office auilding, 207 N. 12`x' Street, Nederland, Texas_ See attached for quorum.
The following statement was read by Mayor Nugent:
"PURSUANT TO SECTION 30.07, PENAL COOS (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGUNS, A PERSON LICENSED UNDER
SU SCHAPTER H, CHAPTER 411, GOVERNMENT CODE KHAN OGUN LICENSING
LAWS, MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2_ INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of aileglance were led by Chris puque, City Manager_
4_ REGULAR AGENDA
b. A motion was made by Mayor Pro Tern Albanese and seconded by Councilrr%ember
Neal to approve a proclamation in regards to Fair Housing Month.
MOTION CARRIED.
Ayers: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmernbers Austin and aelaire.
c. A motion was made by Mayor Pro Tem Albanese and seconded by Councilrrmember
Neal to approve a proclamation designating April 25, 2016 as Taxon Wolf bay.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese_
NoL+s: None_
Absent: Councilmembers Austin and aelaire.
3_ C-.ONSENT AGEy OA - 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 counciimernber so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Cou nciirnember Neal and seconded by Mayor Pro Tem
Albanese to approve the Consent Agenda Items a -f with the exception of item -611
which will be moved to the regular agenda_ MOTION CARRIED.
Minutes Continued, April 25, 2016
Ayes: Mayor Nugent, Counc|mennbarsNeal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
a' Minutes --April 11, 2016 regular meeting
b. March 2O16Departmental Reports
c. Tax Assessor Collector Report - March 2016
d. Consider action authorizing the closure of various streets for the Nederland Spring
Market on Saturday, May th .
e. Consider request from Brian English to utilize the Nederland Recreation Center
fora summer basketball league.
f. Payments:
° L]A Engineering, Inc. - $1,677.80, Phase ll MS4 Permit Implementation
Services
• Basco Construction, Inc. - $49,030.65, Bob Henson Building
Repairs/Improvements project
4. REGULAR AGENDA
Kay DeCuir from the Economic Development Corporation explained the street
closure is for the Nederland Spring Market Day event which is scheduled for
Saturday, May 7th. This event will take place onBoston Avenue between 14 pStreet
and the 1100 block ofBoston. The street will be closed from 8:30a.nn. to 6:00
p. m. She also stated the businesses along Boston Avenue were contacted
regarding the event and they were infavor.
A motion was made by Counci|member Neal and seconded by Mayor Fro Tern
Albanese to authorize the closure of various City streets for the Nederland Spring
Market Day on Saturday, May 7, 2018. MOTION CARRIED.
Ayes: Mayor Nugent, Cound|rnemnbersNeal, and Albanese.
Noes: None.
Absent: Counci|rnennbersAustin and Ba|aine.
a. Recognition of retiree: Farris VVovne Walker. The meeting was recessed at 4:50
- 5:00 to allow for cake and congratulations for Mr. Walker.
d. A motion was made by Mayor Pro Tern Albanese and seconded by Counci|nnennber
Neal tmaccept the Hotel Occupancy Tax Fund quarterly report from the Nederland
Chamber ofCommerce. MOTION CARRIED.
Ayes: Mayor Nugent, Counci|rnernbmngNeal, and Albanese.
Noes: None.
Absent: Cound|nnenmbersAustin and Ba|aing.
e. Amotion was made by Mayor Pro Tern Albanese and seconded byCmund|member
Neal to approve a request from the Nederland Independent School District for
utilization of the Nederland Swimming Pool for end of the school year parties.
MOTION CARRIED.
Ayes: Mayor Nugent, Cound|rnennbansNeal, and Albanese.
Noes: None.
Minutes Continued, April 25, 2016
f. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve a request from the Nederland Police Department to place "In God
We Trust" decals on Nederland Police Department vehicles. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
g. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve an agreement with Interface EAP for the employee assistance
program benefit afforded to city employees. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
h. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to authorize the submittal of a 2016 Port Security Grant application. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
i. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to amend Ordinance No. 164, setting the calendar for regular City Council
meetings - May 2016 to April 2017. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers; Austin and Belaire.
j. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve Ordinance No. 2016-15, suspending the rates proposed by
CenterPoint Energy Resources Corp. dba CenterPoint Energy Entex and CenterPoint
Energy Texas Gas Company's Gas Reliability Infrastructure Program filing made on
March 31, 2016. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
k. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2016-04, nominating Bert Lamson as a
candidate for the Board of Directors of the Jefferson County Appraisal District.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
1. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to authorize the solicitation of bids for the 2016 Flexible Pavement
Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmembers Austin and Belaire.
Minutes Continued, April 25, 2016
5. EXECUTIVE SESSION
Mayor Nugent announced the executive session was not necessary.
6. COMMUNICATION
City Manager's Report:
a. Construction Project Update - Steve Hamilton submitted a written report to
council members.
b. National Day of Prayer - Thursday, May 5th at 7:30 a.m.
c. Nederland Chamber Mother of the Year - Thursday, May 5th 5:00 P.M.
d. Miscellaneous: Chris Duque acknowledged the employees who participated in
the Relay for Life which was held Saturday, April 23rd. He thanked Joni Underwood
for coordinating the event and serving as the City's team captain. He said the City
will continue to have a team annually at this event.
7. ADIOURN
There being no further business a motion was made by Mayor Pro Tern Albanese and
seconded by Councilmember Neal to adjourn the meeting at 5:28 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, and Albanese.
Noes: None.
Absent: Councilmember Austin and Belaire.
r ayor
y"r` •1, Texas
ATTEST:
�yl J
ay F -e r-9 t A on, tl-ty C- I e r
City of Nederland, Texas
NAME
R. A. Nugent
Talmadge Austin
Billy Neal
Don Albanese
Craig Belaire
Chris Duque
Gay Ferguson
Jesse Branick
Cheryl Dowden
Darrell Bush
Gary Collins
Steve Hamilton
George Wheeler
Victoria Klehn
Holly Guidry
Joni Underwood
Angela Fanette
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
TITLE
Mayor
Council Member - Ward I
Council Member - Ward li
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
Parks Director
April 25, 2416
Date
PRESENT
V
0
V",
ABSENT
v-,
1/
AN AMENDMENT TO ORDINANCE NO. 164
AN ORDINANCE SETTING REGULAR DATES FOR
COUNCIL MEETINGS TO BE HELD FROM MAY 9,
2016 THROUGH APRIL 24, 2017.
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 meeting shall begin at 4:30 p.m. on each of the following dates:
May 9 and 23, 2016
June 13 and 27, 2016
July 11 and 25, 2016
August 8 and 22, 2016
September 12 and 26, 2016
October 10 and 24, 2016
November 7 and 14, 2016
December 5 and 12, 2016
January 9 and 23, 2017
February 13 and 27, 2017
March 13 and 27, 2017
April 10 and 17, 2017
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
25th day of April, 2016. /
R. A. N ge ayor
City of Nederland, Texas
ATTEST:
(Ij �-
Gay FerguAn, City CI k
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
JessrfNed6rland,
ran' ity Attorney
City Texas
ORDINANCE NO. 2016-15
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS SUSPENDING THE RATES PROPOSED BY
CENTERPOINT ENERGY RESOURCES CORP., D/B/A
CENTERPOINT ENTERGY ENTEX AND CENTERPOINT ENERGY
TEXAS GAS (-CENTERPOINT- OR -COMPANY-) COMPANY'S
GAS RELIABILITY INFRASTRUCTURE PROGRAM ("GRIP-) FILING
MADE WITH THE CITY ON MARCH 31, 2016; 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 March 31, 2016, CenterPoint Energy Resources Corp.,
d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or
"Company") filed an Annual GRIP adjustment for the Beaumont/East Texas Division with
the City of Nederland ("City) to increase gas rates in the Beaumont/East Texas Division
Service Area pursuant to Gas Utility Regulatory Act, TEx. UTIL. CODE ("Gas Utility Regulatory
Act") § 104.301; and
WHEREAS, CenterPoint proposed an effective date of May 30, 2016, for the rate
increase; and
WHEREAS, the City has exclusive original jurisdiction over the rates, operations
and services of a gas utility in areas in the municipality pursuant to Gas Utility Regulatory
Act §103.001; and
WHEREAS, the Gas Utility Regulatory Act § 104.301 requires a streamlined process
for the recovery of the costs of incremental investment by a gas utility; and
WHEREAS, the City's reasonable cost of regulatory expenses in ratemaking
proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act §
103.022; and
WHEREAS, the City will join with other municipalities in a steering committee in
order to coordinate the hiring and direction of counsel and/or consultants working on
behalf of the steering committee and the City; and
WHEREAS, the City finds the need to suspend the effective date of CenterPoint's
proposed rate increase for 45 days until July 14, 2016 in order to review the Company's
filing for compliance with Gas Utility Regulatory Act § 104.301; and
WHEREAS, the City's review of CenterPoint's GRIP filing is limited to a ministerial
review of the filing for compliance with the statute; and
WHEREAS, the reasonableness of the Company's investment will be reviewed in
CenterPoint's subsequent base rate case where all costs Included in CenterPoint's GRIP
filing will be subject to refund.
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 Company's proposed GRIP rate increase, and
the proposed tariffs related thereto, are hereby suspended until July 14, 2016.
Section 3. To the extent the City finds that the rates proposed by
CenterPoint's filing comply with Gas Utility Regulatory Act § 104.301, then the rates will
become effective byoperation nflaw onJuly 14,3O16.
Section 4. The City isauthorized tojoin with other municipalities ampart cf
the Beaumont/East Texas Division Steering Committee with the understanding that the
steering committee will provide direction and guidance to the lawyers who are
representing said cities.
Section S. The City employs the Lawton Law Firm, P.[»nrepresent the City
with regard to the proposed rate increase of CenterPoint before local and state regulatory
authorities and any court of law and authorizes counsel to employee such rate experts as
are recommended bythe Steering Committee.
Section 6. The Steering Committee shall review the invoices ofthe lawyers
and/or rate experts for reasonableness before submitting the invoices toCentemPointfor
reimbursement.
Section 7. CenterPmint shall reimburse the 0y, through the designated
representative of the Steering Committee, for the reasonable costs of attorneys and
consultant fees and expenses related thereto, upon the presentation ofinvoices reviewed
bythe Steering Committee.
Section B. The meeting atwhich this ordinance was approved was inall things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
PASSED AND APPROVED this 25T"day �APRIL, 2016.
City Nederland, Texas
ATTEST:
APPROVED ASlO FORM AND LEGALITY:
Cit of N eriand, Texas
THE LA.WTON LAW FIRM, P.C.
12600 Hill Country BW., Suite R-275 • Austin, Texas 78738 • 512/322-0019 • Fax: 855/298.7978
Via E -Mail
Mr. Richard Ferguson
City Attorney — City of Anahuac
City Attorney — City of Sour Lake
13201 Northwest Freeway, Suite 300
Houston, Texas 77040
Mr. Kyle Hayes
City Manager — City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Kelly McDonald
City Manager — City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Ms. Angela Smith
City Secretary — City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Mr. Jeff Lambright
Mayor — City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. Leonard Schneider
City Attorney — City of Huntsville
Liles Parker, PLLC
800 Rockmead Dr., Ste 165
3 Kingwood Place
Kingwood, TX 77339
April 8, 2016
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. David Douglas
City Manager — City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. Matt Benoit
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. Jesse Branick
City Attorney — City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
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
Mr. Harry Wright
City Attorney — City of Silsbee
PO Box 186
Port Neches, Texas 77651
Mr. Jack Provost
City Manager — City of Sour Lake
625 Hwy 105 W
Sour Lake, Texas 77659
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
Mr. Christopher Duque
City Manager — City of Nederland
P.O. Box 967
Nederland, Texas 77627
Mr. Rodney Price
City Attorney — City of Pine Forest
City Attorney — City of Rose City
P.O. Box 310
Vidor, Texas 77670
Mr. Robbie Hood
City Administrator — City of Pinehurst
2497 Martin Luther King Jr. Drive
Orange, Texas 77630
Mr. Tommy Bartosh
City Manager — City of Silsbee
105 South P Street
Silsbee, Texas 77656
Michael Kunst
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
Michael S. Stelly
City of West Orange, Texas
2700 Austin Avenue
West Orange, TX. 77630
Re: CenterPoint Enersv 2016 Annual GRIP Adjustment for the Beaumont/East
Texas Division
Dear Cities:
On March 31, 2016, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and
CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Gas Reliability
Infrastructure Program ("GRIP") adjustment factor with each of your communities in the
Beaumont/East Texas Division of the Company. The Company is authorized to make annual
GRIP rate change requests pursuant to Texas law passed in 2003, Gas Utility Regulatory Act,
TEX. UTIL. CODE § 104.301 ("GRIP Statute") also see Section 7.7101 of the Railroad
Commission of Texas ("Commission") Gas Services Division Rules. The GRIP Statute
authorizes gas utility companies to request annual rate increases associated with year-to-year
changes in incremental investment. The changes in investment are not subject to reasonableness
review in the GRIP filing. Instead all amounts collected under a GRIP filing are considered
interim rates subject to review and refund in the Company's next base rate proceeding.
In this case the Company has determined that CenterPoint's capital investment in the
Beaumont/East Texas Service Area has increased by $36,034,473 during calendar year 2015.
The carrying cost on this incremental GRIP investment results in the following average monthly
customer bill impact for each affected customer class:
Customer Impact Summary
CUSTOMER CLASS MONTHLY BILL INCREASE
RESIDENTIAL $1.71
GENERAL SERVICE SMALL $2.73
GENERAL SERVICE LARGE $12.37
The GRIP Statute provides that the proposed GRIP rate surcharge will become effective 60 days
from the date of the Company's filing or May 30, 2016, unless suspended by the Cities. Cities
may suspend the GRIP rate increase for an additional 45 days beyond the Company's proposed
effective date of May 30, 2016 while reviewing the GRIP application. Attached to this letter is a
Rate Ordinance for your consideration. This Rate Ordinance will suspend the GRIP rate effective
date until July 14, 2016. Please remember if your City wishes to suspend the proposed rates
you must take action by passing the attached Rate Ordinance prior to May 30, 2016.
Otherwise the Company's requested rates will go into effect on May 30, 2016.
The review process of a GRIP filing is generally a ministerial review limited to ensuring that the
GRIP filing complies with the GRIP Statute. See Atmos Energy Corp. v. Cities of Allen, 353
S.W. 3d 156 (Tex. 2011).
During the suspension period any issues related to whether the GRIP filing comports with the
GRIP filing rules can be reviewed so that Cities may make a final decision on this GRIP
proposal. Please send a completed copy of the final Rate Ordinance to me either by mail or
email. We expect to provide each City a Final Rate Ordinance by June 1, 2016 so that final
GRIP rates for 2016 may be approved, modified, or rejected by the July 14, 2016 deadline.
If there are any questions or concerns, please do not hesitate to call.
Sincerely,
-DP4� J -
Daniel J. Lawton
3
RESOLUTION NO. 2016-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS, NOMINATING BERT
LAMSON TO SERVE AS A MEMBER OF THE BOARD
OF DIRECTORS OF THE JEFFERSON COUNTY
APPRAISAL DISTRICT
WHEREAS, the Chief Appraiser of the Jefferson County Appraisal District
notified the City of Nederland, Texas that a vacancy has occurred on the Board of
Directors for the remaining portion of the 2016-2017 term; and
WHEREAS, Property Tax Code Sec. 6.03(1) allows all entities entitled to
vote for the Board of Directors to submit a nomination within 45 days after
notification that a vacancy has occurred; and
WHEREAS, Bert Lamson is a resident of Jefferson County, Texas; and
WHEREAS, Bert Lamson is a person duly qualified to serve as a Member
of the Board of Directors of the Jefferson County Appraisal District.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS THAT:
Section 1. Bert Lamson is hereby nominated to serve as a member of the
Board of Directors of the Jefferson County Appraisal District for the remaining
portion of the 2016-2017 term.
Section 2. The foregoing resolution was adopted as a valid action of the
Nederland City Council at a duly noticed meeting of that body on April 25, 2016 at
which a quorum was present and voting.
PASSED AND APPROVED by the City Council of the City of Nederland,
Texas, this the 25th day of April, 2016.
R. A. Nugent ayor
City of Nede and, Texas
ATTEST:
M14;1)
ay Fer on, City er c
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jes a Br ni , City Attorney
C' of ederland, Texas
Construction Project Update —April 25, 2016
1) 2015 HMAC Proiect (LD Construction)—The Engineer, SPI has indicated that work is
completed and they are awaiting the final pay request from the contactor. At that time,
discussion of liquidated damages will commence.
2) 2016 HMAC Proiect — Council will authorize bids today.
3) Henson Buildiniz — Work is progressing. Stucco subcontractor completed work today.
4) Service Center — Pre bid conference took place on April 14th. Eleven general contractors
participated and expressed interest. Bids will be opened on May 12th
5) South 5th Street Water Tower — Interior work is complete. Rain is slowing work on the
exterior.