June 27, 2016REGULAR MEETING OF THE CITY COUNCIL OF TME
CITY OF NEUERLANID
4:30 p.m. June 27, 2016
1. MEETING
The meeting was called to order at 4:30 p.m_ by Mayor Nugent at the Nederland City
Office Building, 207 N_ 12th Street, Nederland, Texas. See attached for quorum_
The following statement was posted=
PURSUANT TO SECTION 30_07, PENAL CODE TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED MANDGUN3, A PERSON LICENSED UNDER
SUBCHAPTER M, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAWS, MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY_"
M. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were led by Gay Ferguson, City Clerk.
3. CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion_ There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed From the Consent Agenda and considered separately.
A motion was made by Cou ncilmember Neal and seconded by Cou ncilmem bet Austin
to approve the Consent Agenda Items a -e as presented_ MOTION CARRIED_
Ayes: Mayor Nugent, Cou ncilmem bars Austin, Neal, Albanese and Belaire.
Noes: None_
a. Minutes — June 13, 2016 regular meeting
b. May 2016 0-epa rtmental Reports
c. Tax Assessor Collection Report - May 2016
d. Consider action approving a request from All Stars Little dribblers to utilize the
Nederland Recreation Center gymnasium for basketball team practices.
e_ Payments:
• LJA Engineering, Inc. - $1,93a_67, Phase II M54 Permit Implementation
Services
• Schaumburg 8i Polk, Inc_ - $5,199.60, South St" Street Water Tower
Rehabilitation project
• Schaumburg 8, Polk, Inc. - $5,725.16, 2016 HMA(-- Rehabilitation project
• Basco Construction, Inc_ - $26,574.75, Bob Henson Building
Repairs/Improvements project
Minutes Continued, June 27, 2016
4. REGULAR AGENDA
a. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to approve Resolution No. 2016-08, ratifying the action of the Nederland
Economic Development Corporation related to the incentive offered to Ashley
Furniture Home Store. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
b. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to approve Ordinance No. 2016-18, approving 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 Austin, Neal, Albanese, and Belaire.
Noes: None.
c. Appointments:
i. A motion was made by Mayor Pro Tem Albanese and seconded by
Councilmember Austin to appoint Billy Wayne Doornbos to the Civil Service
Commission with term ending June 30, 2019. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
ii. A motion was made by Mayor Pro Tem Albanese and seconded by
Councilmember Austin to re -appoint Jerry Smith and Lanny Howell to the Zoning
Board of Appeals and the Board of Appeals with terms ending June 30, 2020.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iii. A motion was made by Councilmember Belaire and seconded by Mayor Pro Tem
Albanese to appoint Michael Whitehead to the Zoning Board of Appeals and the
Board of Appeals with term ending June 30, 2020. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iv. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to appoint David Knight, Mitch Macon, Mike Spell, and Bill Wills to the
Construction Appeals Board with terms ending June 30, 2018. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
v. A motion was made by Mayor Pro Tem Albanese and seconded by
Councilmember Neal to re -appoint Jack Porter, Buzzy Mitchell, Scott Watjus, and
Mark Byars to the Planning & Zoning Commission with terms ending June 30, 2018
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
Minutes Continued, June 27, 2016
vi. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to appoint Chad Womack to the Planning & Zoning Commission with term
ending June 30, 2018. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
d. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to award a bid for Emergency Management Services to Ceres and DRC.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 4:50p.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; Chapter 551.087, Deliberation Regarding
Economic Development Negotiations; and Chapter 551.074, Discuss Personnel
Appointments: City Clerk, Director of Finance, Police Chief, and City Attorney.
6. RECONVENE
The regular meeting was reconvened at 5:44 p.m. by Mayor Nugent.
7. APPOINTMENTS
A motion was made by Councilmember Austin and seconded by Councilmember Neal
to authorize the following appointments: Gay Ferguson, City Clerk; Cheryl
Dowden, Director of Finance; Darrell Bush, Police Chief; and Jesse Branick, City
Attorney and increase the salary for the City Attorney from $4,140 to $4,225 monthly.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
8. COMMUNICATION
City Manager's Report:
a. July 4th - City offices closed in observance of the Independence Day holiday.
Garbage service will be delayed by one day.
b. July 4th Fireworks Extravaganza at Doornbos Park
c. July 61h Budget Workshop at the Library beginning at 8:15 a.m.
9. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Mayor Pro Tem Albanese to adjourn the meeting at 5:50 p.m. MOTION
CARRIED.
Minutes Continued, June 27, 2016
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
R. A. Nugent, yor
City of Neder nd, Texas
ATTEST: Ny
Gay Fergrk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I
Billy Neal Council Member- Ward II v
Don Albanese Council Member -Ward III v
Craig Belaire Council Member -Ward IV V
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance V
_Da"eI44hwh GPolice Chief
Gary Collins Fire Chief V
Steve Hamilton Director of Public Works V
George Wheeler Building Official
Victoria Klehn Librarian V
Holly Guidry Human Resources Director V
Joni Underwood Executive Secretary
Angela Fanette q; Lfv Parks Director V
June 27, 2016
Date
ALLISON NATHAN GETZ
TAX ASSESSOR -COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
TERRY WUENSCHEL
CHIEF DEPUTY
I, Allison Nathan Getz, P.C.C., the Tax Assessor -Collector of Jefferson County, Texas and
also, by contract or statute, the Tax Assessor -Collector for CITY OF NEDERLAND, affirm, under
oath, that this amount $111,276.42, represents all taxes collected for CITY OF NEDERLAND
during the month of May 2016.
"YAUAkA
Allison Nathan Getz, P.C.C.
JEFFERSON COUNTY COURTHOUSE - P.O. BOX 2112 - BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 - FAX: (409)835-8589
ORDINANCE NO. 2016-18
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS APPROVING THE RATES PROPOSED BY
CENTERPOINT ENERGY RESOURCES CORP., d/b/a
CENTERPOINT ENERGY 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 THATTHE
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 Service Area
with the City of Nederland ("City") to increase gas rates in the Beaumont/East Texas
Service Area pursuant to Gas Utility Regulatory Act, TEX. UTIL. CODE ("Gas Utility
Regulatory Act") § 104.301; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Gas Utility Regulatory Act
§ 103.001; and
WHEREAS, Gas Utility Regulatory Act § 104.301 requires a streamlined process for
the recovery of the costs of incremental investment by a gas utility; and
WHEREAS, the Company proposed an effective date of May 30, 2016, for the rate
increase; and
WHEREAS, the City suspended the proposed May 30, 2016 effective date until July
14, 2016; and
WHEREAS, the City's consultant has reviewed the GRIP filing and has concluded
that the proposed GRIP rates are correctly calculated; 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 Company's proposed GRIP rate increase is approved effective
July 14, 2016.
Section 3. The meeting at which the ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act,
Texas Government Code, Chapter 551.
Section 4. This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 27TH day of JUNE, 2016.
R. A. Nuge , ayor
City of Ne Hand, Texas
ATTEST:
ay Ferg n, City Cler
City of Nederland,
APPROVED AS TO FORM AND LEGALITY:
'0i
JeoBrrani , CiyAttorneyCiland, Texas
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd., Suite M75 • 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. Leonard Schneider
City Attorney — City of Huntsville
Liles Parker, PLLC
800 Rockmead Dr., Ste 165
3 Kingwood Place
Kingwood, TX 77339
Mr. Jesse Branick
City Attorney — City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
June 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
Worth= Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
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. Christopher Duque
City Manager — City of Nederland
P.O. Box 967
Nederland, Texas 77627
Mr. Shawn Oubre
City Manager — City of Orange
803 W. Green Avenue, Room 201
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. Rodney Price
City Attorney — City of Pine Forest
P.O. Box 310
Vidor, Texas 77670
Ms. DeeAnn Zimmerman
City Manager — City of Silsbee
105 South 3rd Street
Silsbee, Texas 77656
Re: Final Rate Ordinance For The CenterPoint Enerev 2016 Annual GRIP
Adjustment for the BeaumontlEast Texas Division.
Dear Cities:
We have attached a final Rate Ordinance for your consideration in the above referenced matter.
As you are aware 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
2
As we explained when this case was filed, 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. Cities have passed rate ordinances suspending rates until July
14, 2016.
We have reviewed the Company's GRIP filing and have concluded that the Company's filing
comports with the GRIP statute. As you are aware 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 Cap. v. Cities of Allen, 353 S.W. 3d 156 (Tex. 2011). Given the
above we recommend that each City approve the GRIP filing.
Attached is a rate ordinance approving the new GRIP rates for the 2016 year. This rate ordinance
must be passed prior to the jurisdictional deadline of July 14, 2016. If your City elects to not take
any rate action the GRIP rates will go into effect by operation of law on July 14, 2016.
If there are any questions or concerns, please do not hesitate to call.
Sincerely,
Dca� � T -lam✓
Daniel J. Lawton