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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