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August 13, 2018 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEE)ERLANE) 4:30 p_m. August 13, 2018 1_ MEETING The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City Office Building, 207 N. 12'. Street, Nederland, Texas. See attached for quorum. The following statement was posted: "PIIRSUANT TO SECTION 30.07, PENAL COE)E (TRESPASS MT LICENSE HOLE)ER WITH AN OPENLY CARRIEE) 11-4ANE)GIJN3, A PERSON LICENSEE) II.JNE)ER SUBCHAPTER H, CHAPTER 411, GOVERNMENT COE)E (MANE)GO-1N LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANE)GIJN THAT IS CARRIEE) OPENLY_" 2. INVOCATION ANE) PLEOGIE OF ALLEGIANCE The invocation and pledge of allegiance were led by Gay Ferguson, City Clerk. 3. CONSENT AGENE)A - 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 Albanese and seconded by Councilmember Austin to approve the Consent Agenda Items a-lp as presented. MOTION CARRIEE). Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Selaire_ Naas: None. a. Minutes — July 23, 2016 regular meeting b. Consider action declaring surplus a 2006 F-150 truck from the Utility Billing Department_ 4. REGULAR AGENE)A a. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember Neal to accept the Hotel Occupancy Tax Fund financial reports from the Nederland Chamber of Commerce and the Nederland Historical Society. MOTION CARRIEE)_ Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and 13elaire_ Noes: None. b_ A motion was made by Councilmember Neal and seconded by Mayor Pro Tem Albanese to approve a waiver of the interest portion of the demolition and high Minutes Continued, August 13, 2018 grass liens, in the amount of $2,790.38, on property located at 303 22nd Street in Mr. Cunningham's name. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. c. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve an agreement between the Marion & Ed Hughes Public Library and Willian T. Block III to host and maintain the W. T. Block, Jr. website pending final legal review and approval. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. d. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern Albanese to confirm the appointment of Terry Morton as the Acting Fire Chief in accordance with Texas Local Government Code Section 143.013. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. e. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember Austin to approve Ordinance No. 2018-19, amending the fiscal year 2017-2018 budget. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. f. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem Albanese to approve on first reading of Ordinance No. 2018-20, granting a franchise agreement with Texas Gas Service. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. g. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve Change Order #1 - 2018 Asphalt Street Rehabilitation project in the amount of $41,370.06 for hot mix overlay of W. Chicago from 27th Street to Gary Avenue. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. h. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember Neal to approve Resolution No. 2018-19, authorizing the publication of the notice of intent for Certificates of Obligation to finance a main sewer line replacement project. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. i. Fiscal Year 2018-2019 Budget: i. Chris Duque, City Manager, reported the preliminary budget presented to City Council at the July 9th workshop contained an error and the revised preliminary budget was submitted to the council with the corrections. He said a public hearing must be scheduled to solicit public input-comments regarding the budget. A copy of the budget is available in the City Clerk's Office and will be posted on the City's website. Mr. Duque recommended approval of Resolution No. 2018-10 setting a public hearing date of Monday, August 27th at 4:30 p.m. at the Nederland City Hall. Minutes Continued, August 13, 2018 Budget Highlights include: General Fund • Balanced budget by maintaining tax rate of $0.609578 per $100 assessed taxable value • Balanced budget with revenues and expenditures totaling $10,950,827 • Expenditures represent an increase of 4.48% or $469,677 over last year's adopted budget. Significant portion of increase goes toward salary and benefits increase, which includes three new positions (2 School Resource Officers and an Accounting Assistant), a 2% COLA for all full-time employees, steps for employees eligible for a step, steps for police officers and firefighters covered by collective bargaining agreements, as well as the match for a new radio grant and increasing monthly allocation to the NVFD. • Adjustment for City Council monthly pay allocation to reflect pay increase - mayor adjustment from $183.33 to $400 and city councilmembers from $150 to $300 • 2% COLA for all regular, full-time employees; steps for hourly employees affected by 2016 salary survey on October 1, 2018; steps for hourly employees not affected by salary survey on their anniversary date; steps for police and fire fighters per their collective bargaining agreement; steps for salaried employees affected by salary survey on April 1, 2019; steps for salaried employees not affected by salary survey or hired after April 1, 2017 on their anniversary date; $2/hour increase to life guard wages; proposed increase to jean allowance from $120 to $140 • Continue Health Lifestyle Stipend - $40/month per employee who meet certain physical criteria; this is an effort to manage health insurance costs; continue to fund health insurance's healthy initiatives program • 2018/2019 Street Program budget $1.295M: $275,000 for Street Improvements in Street Department and $1.02M budgeted via the Street Improvement Fund • Book budget for the Library - $25,000 • $148,000 for street lights • $42,000 for senior citizen center • $12,000 for special programs to pay youth league reimbursements and city events • $3,000 for Spay & Neuter program and $2,000 for feline population control services Water & Sewer Fund • Balanced budget with revenue and expenditures equaling $4,494,378 which is an increase of 0.9 percent from last year's adopted budget • Water and sewer rate increase proposed to raise additional water/sewer revenue for planned main sewer line repair/improvements project ($10M); water consumption has steadily decreased • 2% COLA for all regular, full-time employees; steps for hourly employees affected by the 2016 salary survey on October 1, 2018; steps for hourly employees not affected by salary survey on April 1, 2019; steps for salaried employees not affected by salary survey on their anniversary date; proposed adjustments to jean allowance from $120 to $140 Minutes Continued, August 13, 2018 • Additional Water Treatment Operator-trainee/Maintenance Worker position started in FY 16-17 will promote to operator position; continue to fund 4th position in WWTP as Maintenance Worker • $207,000 for Untreated Water • $85,000 for Water Treatment Fixed Plant and Equipment R&M and $35,000 for WWTP Equipment - plant repairs/upgrades that may be necessary during fiscal year • $55,000 allocated for water meters due to expired warranty and new accounts; increase in contractual services due to utility bill credit card fees • WWTP budget adjusted to reflect actual costs • $105,000 for Water and Sewer Mains and $22,000 for Water Distribution Lines Solid Waste Fund • Balanced budget with revenue and expenditures equaling $1,587,264 which is an increase of 0.017 percent from last year's adopted budget • No fee increase proposed this year • 2% COLA for all regular, full-time employees; steps for employees not affected by salary survey on anniversary date; steps for employees affected by salary survey on April 1, 2019 • Waste disposal costs will gradually increase due to revised contract with BFI/Allied Waste • Green Waste Disposal reflect chipping contract • $11,000 for contractual services for recycling drop-off center Equipment Replacement Funds • General Fund: $213,000 for purchase of 2 police patrol units, a truck for the Chief Building Official, and a truck for the Parks Department; a dump truck for the Streets Department, which utilizes $38,000 of reserves. • Water & Sewer Fund: $162,000 for purchase of a truck for water/sewer distribution; and a dump truck for the WWTP, which utilizes $97,000 of reserves. • Solid Waste: $290,000 for purchase of a trash truck A motion was made by Councilmember Austin and seconded by Mayor Pro Tem Albanese to approve Resolution No. 2018-10, submitting the City of Nederland Annual Budget for the fiscal year beginning October 1, 2018 and ending September 30, 2019 and calling for a Public Hearing to be held on August 27, 2018 at 4:30 p.m. at the Nederland City Hall (207 N. 12th Street) for the purpose of discussing the proposed budget, as per Article VI of the City Charter. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. ii. Chris Duque, City Manager, stated Nederland has a current tax rate of $0.609578 per $100 assessed value which is the lowest tax rate among the mid and south-county cities. This year the effective tax rate has been calculated as $0.596083 and the rollback tax rate has been calculated as $0.618234. On Thursday, July 20th, JCAD submitted the assessed taxable value of$1,119,582,257 which is an increase of $32,634,392 or 3.002%. Mr. Duque recommended the city council consider adopting a tax rate of $0.609578 per $100 assessed valuation, which is $0.013495 or 2.2% greater than the ,effective tax rate. He felt this increase was necessary due to nominal appraised value growth, the anticipated Minutes Continued, August 13, 2018 decrease in sales tax revenue due to the post hurricane sales tax trend, on-going sluggish industrial development, the creation of three new positions, the necessary local match for the new regional radio system grant application and the on-going Nederland Avenue project debt, he believed it was necessary to maintain the current tax rate. The proposed tax rate was calculated by carrying forward the current maintenance and operations tax rate ($0.390828) and adding the new debt service tax rate ($0.218750) that reflects the Nederland Avenue certificates of obligation. The proposed budget is based on the increased tax rate. Two public hearings are necessary since the proposed tax rate of $0.609578 is greater than the effective tax rate. A motion was made by Councilmember Austin and seconded by Councilmember Neal to approve a proposed tax rate of 0.609578 per $100 assessed valuation for the fiscal year beginning October 1, 2018 and ending September 30, 2019. MOTION CARRIED. Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire. Noes: None. iii. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember Austin to schedule tax rate adoption dates: • Monday August 27th at 4:30 p.m. at the Nederland City Hall (regular meeting) - 1st Public Hearing • Friday, August 31st at 9:00 a.m. at the Nederland City Hall (special meeting) - 2nd Public Hearing • Monday, September 10th at 4:30 p.m. at the Nederland City Hall (regular meeting) - Adopt the Tax Rate MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. iv. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern Albanese regarding the proposed tax rate and establishing the dates of August 27, 2018 at 4:30 p.m. and August 31, 2018 at 9:00 a.m. for public hearing. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. 5. EXECUTIVE SESSION The regular meeting was recessed at 5:10 p.m. by Mayor Nugent for the purpose of conducting an Executive Session as authorized by Texas Government Code, Chapter 551.074, Annual Evaluation - City Manager Christopher Duque. 6. RECONVENE The regular meeting was reconvened at 5:49 p.m. by Mayor Nugent. 7. APPOINTMENT Minutes Continued, August 13, 2018 A motion was made by Councilmember Austin and seconded by Mayor Pro Tern Albanese to approve the employment agreement between the City of Nederland and Nederland City Manager, Christopher Duque. MOTION CARRIED. Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. Noes: None. 8. COMMUNICATION City Manager's Report: a. Nederland Avenue project update - Mr. Woods reported: • Pavement repairs are finishing. • A conflict was discovered on 12th Street with AT &T conduit. A temporary force main repair was made around DD7 channel back toward 17th Street. Research is being done for a permanent repair. • Asphalt overlay is due to begin in the next couple of weeks and be finished by September 1st on the section of street they are currently working on. b. Miscellaneous - Education Foundation Breakfast tomorrow, a draft CIP 5- year plan will be on the next city council meeting and a bid was received on a new fire truck. 9. ADJOURN There being no further business a motion was made by Mayor Nugent and seconded by Councilmember Austin to adjourn the meeting at 5:59 p.m. MOTION CARRIED. \\\\\\``\ ND,, ,,Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire. (tAT None. • Li- 4 %\~'�'•� R. A. Nug", Mayor -P•151(-\L; City of N=•erland, Texas 1 ��'�\s`$' i� IL /Ai , 4/_,. .y Ferguso , City Clerk 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 Craig Belaire Council Member-Ward IV Chris Duque City Manager Gay Ferguson City Clerk Jesse Branick City Attorney Cheryl Dowden Director of Finance Gary Porter Police Chief Terry Morton Acting Fire Chief \/ Robert Woods Director of Public Works George Wheeler Building Official V Victoria Klehn Librarian Holly Guidry Human Resources Director Joni Underwood Executive Secretary Angela Fanette Parks Director ied R. . Nugent,or yor f 1 . ,_s /4 y Fergu , City Cler August 13, 2018 Date CERTIFICATE FOR RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION I,the undersigned City Clerk of the City Council(the"Governing Body")of the City of Nederland,Texas(the"Issuer"),hereby certifies as follows: 1. The Governing Body convened in regular session, open to the public, on August 13,2018,4:30 p.m.,at Nederland City Hall,207 North 12th Street,Nederland,Texas,and the roll was called of the members of the Governing Body,to-wit: R.A."Dick"Nugent Mayor Don Albanese Mayor Pro-Tem Talmadge Austin Councilmember Billy Neal Councilmember Craig Belaire Councilmember All members of the Governing Body were present, except the following: constituting a quorum. Whereupon among other business,the following was transacted at such Meeting: A written RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION was duly introduced for the consideration of the Governing Body and read in full. It was then duly moved and seconded that such Resolution be adopted; and, after due discussion, such motion, carrying with it the adoption of such Resolution,prevailed and carried by the following votes: AYES: NOES: (0 I T 2. A true, full, and correct copy of the aforesaid Resolution adopted at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Resolution has been duly recorded in the Governing Body's minutes of such Meeting;the above and foregoing paragraph is a true, full, and correct excerpt from the Governing Body's minutes of such Meeting pertaining to the adoption of such Resolution;the persons named in the above and foregoing paragraph are the duly chosen qualified,and acting officers and members of the Governing Body as indicated therein;each of the officers and members of the Governing Body was duly and sufficiently notified officially and personally, in advance, of the time,place, and purpose of such Meeting, and that such Resolution would be introduced and considered for adoption at such Meeting and each of such officers and members consented, in advance,to the holding of such Meeting for such purpose;and such Meeting was open to the public,and public notice of the time,place,and purpose of such Meeting was given,all as required by chapter 551, Texas Government,as amended. SIGNED this ID SIGNED of 01)9151-- ,2018. Py Fergus ,City Clerk 56432744.1 RESOLUTION NO.2018-09 A RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION WHEREAS, the City Council of the City of Nederland, Texas (the "Issuer"), deems it advisable to issue Certificates of Obligation to fund construction of public work,to-wit: (1) improvements and expansion to existing sanitary sewer facilities; including replacement of main sewer lines and sewage treatment plant improvements;and(2)certain other costs related and incidental thereto,including cost of issuance of the Certificates of Obligation in accordance with the Notice hereinafter set forth. * * * * * * * NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS: SECTION 1. The facts and recitations contained in the Preamble of this Resolution are hereby found and declared to be true and correct. SECTION 2. The City Clerk is hereby authorized and directed to cause to be published in the manner required by law a notice of intention to issue Certificates of Obligation in substantially the form attached hereto as"Exhibit A"and made a part hereof. SECTION 3. The notice set forth in"Exhibit A" to this Resolution is to be published once a week for two consecutive weeks in a newspaper of general circulation in the Issuer,the date of the first publication to be before 30 days prior to the date set in said notice for the issuance of Certificates of Obligation. SECTION 4. The Mayor,City Clerk,City Manager,and other officers of the Issuer are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. SECTION 5. This Resolution takes effect immediately upon its passage. PASSED AND APPROVED by the City Council of the City of Nederland this the 131 ayAfgaig(f „2018. 444• 07 4,-4);11:1: R. f ugent,Mayor • •Z .1..• City o :oederland,Texas G y Fer sU ty Cle���/�2 APPROVED AS TO FORM AND LEGALITY: r Jess; rani ity Attorney 56432744.1 • EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION TAKE NOTICE that the City Council of the City of Nederland,Texas(the"City"), shall convene at 4:30 p.m. on Monday, September 24, 2018, at its regular meeting place in Nederland City Hall,207 North 12th Street,Nederland,Texas,and during such meeting,the City Council will consider the passage of an ordinance authorizing the issuance of certificates of obligation in an amount not to exceed $10,000,000 for the purpose of paying contractual obligations to be incurred to fund construction of public work, to-wit: (1) improvements and expansion to existing sanitary sewer facilities; including replacement of main sewer lines and sewage treatment plant improvements; and(2) certain other costs related and incidental thereto, including cost of issuance of the Certificates of Obligation. The certificates of obligation will be payable from the levy of an annual ad valorem tax,within the limits prescribed by law,upon all taxable property within the City,and from a pledge of certain available net revenues derived from the operation of the City's water and sanitary sewer system. The certificates of obligation are issued,and this notice is given,under and pursuant to the provisions of Texas Local Government Code,Section 271.049,as amended. f • R.A."P ick"Nu:i1 Mayor 56432744.1 CITY OF NEDERLAND RESOLUTION 2018-10 A RESOLUTION BY THE CITY COUNCIL ACCEPTING THE BUDGET FOR THE CITY OF NEDERLAND AS PREPARED AND SUBMITTED BY THE CITY MANAGER, SUCH BUDGET COVERING THE FISCAL YEAR BEGINNING OCTOBER 1,2018 AND ENDING SEPTEMBER 30,2019. WHEREAS, the City Manager has prepared and submitted to the City Council a budget estimate of expenditures and revenues of all City department activities and offices for the fiscal year beginning October 1,2018 and ending September 30,2019;and WHEREAS, such proposed and estimated budget, after due hearing and consideration, should be approved in its proposed or amended form; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS: That the budget as prepared and submitted by the City Manager for the total expenditures in each of the various departments of the City of Nederland is hereby accepted and a Public Hearing is hereby set for 4:30 p.m.,August 27,2018,to approve this budget in the proposed or amended form in accordance with Article VII of the City Charter. PASSED AND APPROVED this the 13th day of August,2018. <<$ --• . 40 -4/:��,- Ql'�:;fid' %iiL =u-:* u� , R.A.Nugenci ayor . -;s 7;4;:;�; City of Ned-hand,Texas �nninnm�u�`r Val ay FergutIon, City Cle City of Nederland,Texas APPROVED AS TO FORM AND LEGALITY: Jes - Bra ' k,City Attorney Ci of N=.erland,Texas APPROVAL OF CONTRACT CHANGE Change Order No.1 Date:August 2,2018 Project: 2018 Asphalt Street Rehabilitation Project Owner: City of Nederland PO Box 967 Nederland,Texas 77707 Contractor: Hayden Paving,me 4710 Windsong Dr. Houston,Texas 77084 To the Owner: Approval of the following contract change is requested. Reason for Change:Provide for mill and overlay of Chicago from 27th St to Gary. ORIGINAL CONTRACT AMOUNT: $949,383.79 THIS CHANGE ORDER: Changes in Units Item Description Unit Qty Rev.Otv Orig.Price Rev.Price Net Change 11 Proof Rolling,per TxDOT Item 216 HR 19 21 $80.53 $80.53 $ 161.06 12 Flexible Base(Complete in Place),Type A,Grl or Gr2, 6 to 8 inches,per TxDOT Item 247 SY 3477 3307 $24.45 $24.45 $ (4,156.50) 13 Salvaging,Hauling and Stockpiling of Reclaimable Asphalt Pavement,per TxDOT Item 305 SY 19835 23235 $1.92 $1.92 $ 6,528.00 14 Dense Graded Hot-Mix Asphalt(Type D,Ordinary Compaction Control),per TxDOT Item 351 TONS 2936 3236 $95.60 $95.60 $ 28,680.00 15 Flexible Pavement Base Repair(7 inches Mph.Stab. Base)per TxDOT Item 351 SY 412 582 $59.75 $59.75 $ 10,157.50 • TOTAL AMOUNT OF THIS CHANGE ORDER: $ 41.370.06 TOTAL REVISED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER: $990.753.85 Percent Change in Contract 4.4% Calendar Days Original Contract Tame plus inclement weather days allowed to date 104 Additional Time Requested this Change Order Total Revised Contract Time Including this Change Order 4 CONDITION OF CHANGE: "Contractor acknowledges and agrees that the adjustments in contract price and contract time stipulated in this Change Order represents full compensation for all increases and decreases in the cost of and the time required to perform the entire work under the Contract arising directly or indirectly from this Change Order and all previous Change Orders.Acceptance of this waiver constitutes an agreement between Owner and Contractor that the Change Order represents an all inclusive,mutually agreed upon adjustment to the Contract,and that Contractor will waive all rights to file a claim on this Change Order after it is properly executed." Recommend by ^'� Approved By: Accepted by: Sch mburg�$1S6ilc �/ City of Nederland Hayden Paving,Inc. Engineer � / Owner Contractor 3 Date: , `0-/Qr Date: Date ORDINANCE NO.2018-19 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2017- 2018 BUDGET IN ACCORDANCE WITH THE BUDGET AND THE CHARTER OF THE CITY OF NEDERLAND. WHEREAS,the City Council previously approved Ordinance No.2017-19,which adopted the Fiscal Year 2017-2018 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 2017-2018 City budget states"That any unencumbered funds remaining on hand at the end of the fiscal year ending September 30, 2018 shall be construed with and classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1, 2017 and ending September 30,2018,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 2017-2018 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 Rp,u,I,AR MEETING THIS THE 13th DAY OF AUGUST,2018. 100 Z; �44: "' ' \�i' y: R.A.N age Mayor _L !(►: � ,,u-_ City of Nes erland,Texas "Air , /l /1/I/ . /_. G.y Ferguson(ity Clerk APPROVED AS TO FORM AND LEGALITY: Jess- = ,Ci Attorney 1 CITY OF NEDERLAND BUDGET AMENDMENT REQUEST FISCAL YEAR: 2017-2018 DATE: August 13,2018 DEPARTMENT: Various FUND: General(01),Capital Outlay(31) AMOUNT CURRENT INCREASE PROPOSED ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET 01-0000-4720 Sale of Land - 332,448 332,448 01-9000-6907 Transfer to Capital Outlay - 332,448 332,448 31-0000-4901 Transfer In - 332,448 332,448 TOTAL - 997,344 997,344 JUSTIFICATION Revenue from the Exxon Mobil pipeline transaction is deposited in the General Fund;those funds are transferred to the Capital Outlay Fund for future capital projects. Dept.Head Signature: Date: Finance Director: Date: Date Approved: Date Posted: Page of ORDINANCE NO.2018-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS, GRANTING TO ONE GAS, INC., ACTING BY AND THROUGH TEXAS GAS SERVICE DIVISION,AND ITS SUCCESSORS AND ASSIGNS, FOR A PERIOD OF TWENTY-FIVE (25) YEARS FROM APPROVAL AND ACCEPTANCE OF THIS ORDINANCE, A NON-EXCLUSIVE FRANCHISE AND RIGHT TO ENTER THE PUBLIC WAYS TO INSTALL, OPERATE, AND MAINTAIN A DISTRIBUTION SYSTEM WITHIN,ALONG,ACROSS OVER AND UNDER THE PUBLIC WAYS OF THE CITY OF NEDERLAND, TEXAS FOR THE TRANSPORTATION, DISTRIBUTION AND/OR SALE OF GAS TO CUSTOMERS AND THE PUBLIC GENERALLY IN THE CITY; DEFINING THE WORDS AND PHRASES THEREIN; PROVIDING FOR ASSIGNMENT, SALE OR LEASE OF THE FRANCHISE; PROVIDING THAT THE CITY MAY ENACT AN ORDINANCE CHARGING PERSONS TRANSPORTING GAS THROUGH COMPANY'S DISTRIBUTION SYSTEM A FEE ON THE CALCULATED VALUE OF SUCH TRANSPORTED GAS; PROVIDING FOR USE AND REPAIR OF THE PUBLIC WAYS; PROVIDING FOR REGULATION OF SERVICE; ESTABLISHING DEPTH OF PIPELINES; ESTABLISHING RIGHTS AND DUTIES IN THE MOVEMENT AND ALTERATION OF PIPELINES; PROVIDING FOR INDEMNIFICATION OF THE CITY OF NEDERLAND; PROVIDING FOR COMPANY'S RULES AND REGULATIONS; PROVIDING FOR INSPECTION OF COMPANY'S RECORDS; REQUIRING COMPANY TO PAY A FRANCHISE FEE;PROVIDING FOR CONDITIONS OF THE FRANCHISE; PROVIDING FOR CONSTRUCTION OF THIS ORDINANCE UPON THE INVALIDITY OF ANY PART THEREOF; PROVIDING FOR ACCEPTANCE OF THIS FRANCHISE BY COMPANY AND BOTH AN EFFECTIVE AND AN OPERATIVE DATE THEREOF; DIRECTING PUBLICATION REQUIREMENTS OF THE FRANCHISE ORDINANCE CAPTION; REPEALING ALL OTHER ORDINANCES DIRECTLY IN CONFLICT HEREWITH; AND PROVIDING FOR SEVERABILITY NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, HEREBY ORDAINS THAT: SECTION 1. DEFINITIONS As used in this Ordinance,the following words and phrases shall have the following meanings: A. "City"means the City of Nederland,in Jefferson County,Texas,a municipal corporation. B. "City Clerk" means the City Clerk of the City or other such officer of the City designated to serve as the filing officer for official documents and records of the City. C. "City Council"means the City Council of the City as the governing body of the City. D. "City Engineer"means the City Engineer of the City or such other officer of the City designated to approve the engineering plans and designs for construction within Public Ways. E. "City Manager"means the City Manager of the City or such other chief administrative officer of the City designated to hear appeals from the decisions of other City officers. F. "Company" means ONE Gas, Inc., an Oklahoma corporation,acting by and though its Texas Gas Service division,and its successors and assigns. G. "Customer" means any individual person, corporation, company, partnership, firm, unincorporated association,trust,municipality,or public or private entity located within the municipal corporate limits of the City and serviced by the Company through any use of the Public Ways. H. "Franchise Fee"or"Franchise Fees"means the sum of fees to be paid to the City by Company under Section 11 of this Ordinance. I. "Gas Sales" means the sale of natural gas to the Company's customers located within the corporate limits of the City by use of the System. J. "Gas Transportation"means the transportation of Transport Gas for redelivery to customers with re-delivery points located within the corporate limits of the City. K. "Gross Receipts from Gas Sales"shall constitute and include Company's total receipts from the sale,distribution,or transportation of gas to the Company's customers. The Company's Gross Receipts from Gas Sales subject to the Franchise Fee shall specifically exclude,without limitation: (1) receipts from gas sales or services to customers located at delivery points outside the corporate limits of the City; (2) receipts from gas consumed or transported by Company for its own use; (3) bad debt or uncollected accounts; (4) receipts collected for gas utility taxes; (5) receipts for any taxes, assessments, charges or fees of any kind charged by a governmental entity and collected by Company from the customer by a pass-through charge on the gas bill,except for Franchise Fees and gross receipt taxes; (6) receipts for construction advances or contributions in aid of construction; (7) receipts for maintenance of appliances,machinery or equipment; (8) receipts for compensation for damage to Company's property; (9) receipts from sales of materials,appliances or equipment;and (10) receipts from any non-regulated utility or non-regulated services or products. L. "Gross Receipts from Gas Transportation" shall constitute and include Company's total receipts from its transportation of Transport Gas,consisting of receipts from cost of service. The Company's Gross Receipts from Gas Transportation subject to the Franchise Fee shall specifically exclude,without limitation: (1) receipts from gas transportation services to customers located at delivery points outside the corporate limits of the City; (2) receipts from gas transported by Company for its own use; (3) bad debt or uncollected accounts; (4) receipts collected for gas utility taxes; (5) receipts for any taxes, assessments, charges or fees of any kind charged by a governmental entity and collected by Company from the customer by a pass-through charge on the gas bill,except for Franchise Fees and gross receipt taxes; (6) receipts from construction advances or contributions in aid of construction; (7) receipts for maintenance of appliances,machinery or equipment; (8) receipts for compensation for damage to Company's property;and (9) receipts from any non-regulated utility or non-regulated services or products. M. "Permit"means the authorization to Company: (1) for the opening of the streets,avenues,alleys,other public places or Public Ways shown on maps or plans submitted by Company to the City Engineer, showing the streets, avenues, alleys and other public places and the locations thereon wherein Company proposes to construct new mains and pipes; (2) for the new construction or laying of the new mains and pipes by Company as shown on plans;and (3) to perform all work on existing Company facilities or the System within the Public Ways or other City rights-of-way. N. "Public Ways" means the present and future streets,avenues, boulevards, parkways, lanes, alleys,bridges,sidewalks,parks,easements,highways,and any other public place within the municipal corporate limits of the City,whether dedicated or not. O. "System" means Company's system of mains, pipelines,conduits,valves,feeders, regulator stations, laterals, service lines, measuring devices, and all other necessary plants, attachments,land,structures,facilities,and appurtenances for the purpose of selling,storing, supplying,conveying,transmitting,distributing,and/or transporting natural gas and any gas, including the equivalent substitutes,for all other lawful purposed in,through,upon, under, and along the present and future Public Ways. P. "Transport Gas" means gas owned or controlled by a user or its designee (i.e., gas that is purchased or otherwise acquired by a user from someone other than Company)and delivered by such user or its designee to Company at a point on Company's System, such point of delivery to be defined by Company, and carried, delivered, or transported through the Company's System at a point of redelivery within the municipal corporate limits of the City by Company to the user for a fee. Q. "Utility Regulated Service Charges"shall consist of charges for services(but not for natural gas sales or transportation services)that: (1) Company provides to its customers located within the corporate limits of the City;and (2) which are or may, from time to time, become subject to the rate regulation of the applicable regulatory authority. Such Utility Regulated Service Charges shall not include receipts by Company from its customers in the City,if applicable,for appliance sales,appliance light-ups, maintenance of customer equipment or facilities and any other receipts that are not related to or derived from the sale or transport of natural gas. SECTION 2. GRANT OF FRANCHISE A. Subject to the terms and conditions of this Ordinance,the City hereby grants to ONE Gas, Inc.,an Oklahoma corporation,acting by and through its Texas Gas Service division,for the term of twenty-five(25)years from the passage and approval of this Ordinance and the filing of a written acceptance by the Company,the right to enter upon the Public Ways to have, own, acquire, install, construct, reconstruct, repair, replace, operate, maintain, use, and extend a System along, across, over and under the Public Ways for the privilege of transporting,distributing and/or selling gas to Customers and the public generally within the municipal corporate limits of the City,and including any territory that the City may hereafter annex,acquire,purchase;and to distribute,sell,store,supply,transport,carry and/or convey natural gas and any gas through Company's System in the City to other cities, towns, communities,and areas outside the City and to inhabitants thereof,for the full term of this Franchise Ordinance. B. The Ordinance shall have the effect of and shall be a contract between the City and Company and shall be the measure of the rights and liabilities of the City,as well as the Company. C. The Franchise granted by this Ordinance shall in no way affect or impair the present or future rights,obligations,or remedies of the City or Company under the Texas Gas Utility Regulatory Act,as amended. SECTION 3. FRANCHISE ASSIGNMENT,SALE OR LEASE The Company is expressly given the power and privilege to sell,transfer or assign the franchise granted hereby,or any part of this franchise,to any person,entity or corporation. SECTION 4. USE AND REPAIR OF THE PUBLIC WAYS A. The Company's System shall be erected, placed, and laid or otherwise installed, operated, and maintained in such a manner as will,consistent with reasonable necessity,least interfere with other public uses of the Public Ways. This Ordinance shall constitute the Permit to perform all work on existing Company facilities or the System within the Public Ways or rights of way. B. When in streets and avenues,mainlines and service pipes shall be laid parallel with the curb line thereof,or in such locations as shall be most practical,provided,however,that in no case shall any main be laid less than 18 inches below the established street grade,or if not within a street right-of-way at least 18 inches below the grade of the nearest street, without permission of the City Engineer. All work shall comply with applicable City Ordinances, including, but not limited to, Ordinance No. 2002-01 (Chapter 90, Nederland Code of Ordinances). Subject to the terms and provisions of applicable ordinances of the City pertaining to the management of rights-of-way,the Company is hereby authorized,licensed and empowered to do any and all things necessary and proper to be done and performed in executing the powers and utilizing the privileges granted by this Franchise Ordinance, provided the same do not conflict with existing infrastructure in the Public Ways. C. Except in the case of emergency, within the City's full purpose jurisdiction, when the Company desires to lay any new mains hereunder, and before commencing its new construction work on mains,it shall submit to the City Engineer,or other proper authority,a map or plan showing the streets, avenues,alleys,and other public places and the locations thereon wherein it proposes to construct such new mains and pipes. The City Engineer,or other proper authority, shall by written notice, either issue or deny the Permit to the Company within ten (10) calendar days. Approval by the City Engineer or other proper authority shall constitute the Permit to the Company for the opening of the streets,avenues, alleys and other public places shown on the map or plan, and for the new construction or laying of the new mains and pipes by the Company as shown on the plan. If the City Engineer, or other property authority,does not respond within ten(10)calendar days,the Permit shall be deemed approved. In the event that the Permit is denied,the City Engineer,or other proper authority,shall advise the Company of the reasons for the denial and all necessary steps to secure approval of the Permit. The Company shall have the right to immediately appeal the non-issuance of the Permit to the City Manager,and if the Permit is not approved within ten(10)calendar days by the City Manager,the Company may appeal to the City Council and be heard at the next scheduled public meeting held in compliance with applicable law following the date of the Permit denial. If the City Council fails to act on the appeal during the public meeting, the appeal will be deemed denied unless agreed otherwise in writing by the Company and City. Appeal of any decision made by the City Council shall be made to the District Court of Travis County,Texas,and an appeal from any decision of the District Court shall be as in all other civil actions. This Subsection 4(C) shall apply to all other facilities and equipment of the Company to be constructed or installed on public property within the City's full purpose jurisdiction. D. It shall not be necessary for the Company to secure a Permit for the laying of service pipes from the mainline pipes of the Company to its customers. E. After any excavation or disturbance, the Company shall, with due diligence and dispatch, place the Public Way in a condition in compliance with the City's reasonable standards and specifications. F. The Company shall not install any pipe, line, or facility within any park or recreational land, and shall not install any above ground facility on City property, without specific written permission by the City Engineer,or other proper authority,which shall be granted within ten (10) calendar days. Should permission be denied, the City Engineer, or other proper authority,shall advise the Company of the reasons for the denial. The Company may appeal to the City Council and be heard at the next scheduled public meeting held in compliance with applicable law following the date of denial. The Company may petition the City Council for permission to cross park lands during a public meeting held in compliance with applicable law,and any such permission shall be granted by the City Council through ordinance.Appeal of any decision made by the City Council shall be made to the District Court of Travis County, Texas,and an appeal from any decision of the District Court shall be as in all other civil actions. SECTION 5. REGULATION OF SERVICE The System of the Company shall at all times be installed, operated, and maintained in accordance with accepted good practice and in such condition as will enable the Company to furnish adequate and continuous service as required by the orders,rules,and regulations of the Railroad Commission of Texas or other regulatory authority having jurisdiction. The requirements set forth in this Section shall not relieve the Company of any other obligations set forth herein. SECTION 6. DEPTH OF PIPELINES After the operative date of this Franchise, the Company's main or lateral lines installed or replaced in Public Ways shall be installed or replaced at depths which comply with all applicable state and federal rules and regulations establishing minimum safety standards for the design, construction,maintenance and operations of pipelines. Depth shall be measured from the lower of existing grade or proposed future grade as set forth on plans or other specifications existing at the time such lines are installed or replaced. SECTION 7. DUTY TO MOVE OR ALTER LINES A. The City reserves the right to lay or permit to be laid cables,electric conduits,water,sewer, gas or other pipelines and to do or permit to be done any underground work deemed necessary and proper by the City,along,across,over or under the Public Ways. In permitting such work to be done, the City shall be liable to the Company for any damages to the Company's pipelines and facilities caused by the City or its agents'or contractors'negligence. B. When the Company is required by the City to remove or relocate its mains,laterals,and other facilities to accommodate construction of streets and alleys by the City,and the Company is eligible under federal,state,county,local or other programs for reimbursement of costs and expenses incurred by the Company as a result of such removal or relocation, and such reimbursement is required to be handled through the City, then the Company's costs and expenses shall be included in any application by the Company for reimbursement. The Company will provide the City its appropriate cost and expense documentation prior to the filing of the application. C. When the Company is required to remove or relocate its mains,laterals or other facilities to accommodate construction of streets or alleys by the City without reimbursement, the Company shall have the right to seek a surcharge to recover relocation costs pursuant to Section 104.112 of the Texas Utilities Code or any other applicable law or regulations. D. If the City shall require the Company to adapt or conform its System or in any way to alter, relocate or change its property to enable any other perform, firm, corporation or entity (whether public or private),other than the City,to use the Public Ways,the Company shall be reimbursed by the person,firm,corporation,or entity desiring or occasioning such change for any and all loss,cost,or expense occasioned thereby. SECTION 8. INDEMNIFICATION The Company shall indemnify,save and hold the City harmless from and against any and all claims for damages for which the City shall or might become liable to the extent caused by any negligent act or omission of the Company, its agents or contractors in the construction and operation of the System; provided, however, than in the event of such claim or claims being prosecuted against the City,the Company shall have the right to defend against the same, and to settle or discharge same in such manner as it may see fit,and the City shall give prompt written notice to the Company of the presentation or prosecution of such claims. The indemnity provided for in this paragraph shall not apply to any claim or liability resulting from the acts, omissions, or negligence of the City,its employees,agents or contractors. The Company's undertaking shall be subject to its ability, by use of due diligence and normal business methods, to obtain and place in service the necessary materials and facilities. Moreover,the Company shall be excused from failure or delay in performing such obligations if and to the extent occasioned by an act of nature or"act of God,"fire,explosion,flood,act of a public enemy, contagion, or contamination hazardous to human life or health, legal restraints, labor difficulties,material shortages,interruption or deficiency of gas supply not attributable to default of the Company or, without limitation, any other cause or combination of causes not City promptly and in no case less than thirty(30)days of its intent to utilize this provision of this Ordinance. SECTION 9. COMPANY'S RULES AND REGULATIONS The Company shall have the right to make and enforce such reasonable rules and regulations as it may deem necessary for the extension of its facilities,the sale of its gas and the conduct of its business,provided that such rules and regulations shall neither be in conflict with the laws of the State of Texas,with the orders,rules,or regulations of the Railroad Commission of Texas or other regulatory authority having jurisdiction, nor with the ordinances and regulations of the City insofar as they are consistent with the jurisdiction of the Railroad Commission of Texas or such other regulatory authority. The Company shall supply natural gas and provide regulated services at the rates and under the terms and conditions specified by such rules, its tariffs filed with the City,and as provided herein. SECTION 10. INSPECTION OF RECORDS The Company shall permit the City or its agents to inspect, during regular business hours,the books, papers, and records kept by the Company in the ordinary course of business and pertaining to the natural gas business carried on by it in the City,such as plats,maps and atlases identifying the Company's' pipelines in the City, and the books and records necessary to verify the franchise fee payment provided for in Section 11 hereof. It is understood and agreed that such representative may be an independent agent,assigned by the City to conduct the inspection of the Company's books and records for the reconciliation of franchise fee payments to determine the accuracy thereof. Notwithstanding the obligation herein and subject to the requirements of the Texas Public Information Act, the company shall have the right to the reasonable protection of proprietary information and to provide redacted documents or require the City or its agents to enter into such agreements pertaining to confidentiality as may reasonably protect the proprietary information of the Company but which do not unreasonably frustrate the purposes of this Section. The City shall promptly notify the Company in writing of the annexation of any new territory into its city limits by providing the legal description,maps,and any other relevant information such as the GPS/GIS information that highlight the newly annexed territory. Upon receipt of written notice of annexation from the City,the Company shall have ninety(90)days to begin collecting and paying the franchise fee for any revenues received from the Company's customers residing in the newly annexed territories. The City shall assist the Company in determining and classifying exemptions from the franchise fee for the Company's customers,including providing or requiring written confirmation of the customer's claimed exemption. SECTION 11. CONSIDERATION FOR FRANCHISE:FRANCHISE FEE A. As full consideration for the rights and privileges conferred by this Ordinance,the Company agrees to the pay the City as follows: (1) The Company shall collect the Franchise Fee from its customers and shall pay the City a Franchise Fee the sum of which is equal to Four Percent (4%) of the Gross Receipts received by the Company, per billing period, from the transportation, distribution, and sale of natural gas for consumption within the municipal corporate limits of the City. The calculation of the Franchise Fee shall include only Gross Receipts from Gas Sales to customers located in the City; Gross Receipts from Transportation to Transport Gas Customers with re-delivery points located in the City; plus, Gross Receipts from Utility Regulated Service Charges. All sums due from the Company shall be in lieu of all other franchise fees, licenses,or occupational taxes, which may be levied or attempted to be levied on the Company by the City. (2) The Company shall pay such Franchise Fee collected from its customers to the City under the terms of this Franchise Ordinance,based upon meters read on or after the effective date of this Ordinance. During the term of this Franchise Ordinance,the Company shall collect from its customers and pay the City in January and July for the preceding six months. The Company shall include with the Franchise Fee payment a statement showing its collections of Gross Receipts from Gas Sales and Gas Transportation in the City, and Utility Regulated Service Charges in the City,including the calculation of the Franchise Fee for the subject time period. Collection and payment of Franchise Fee shall be final as to both parties unless questioned by written notice provided by one party to the other within one year after payment thereof has been made. It is expressly agreed that the Franchise Fee payments shall be in lieu of payments for the right to use the Public Ways or other public rights-of-way of the City, including expressly the charge permitted to be levied by the Texas Tax Code Section 182.021-182.026 and 182.081-182.082,or any successor statute permitting such charge, however designated. The Franchise Fee shall be in lieu of and accepted payment of all of the Company's obligations to pay all other franchise fees, licenses, easements or occupation taxes, levies, exactions, rentals, street-cut fees, inspection fees, right-of-way inspection fees, permit fees, franchise fees, easement taxes, or charges of any kind whatsoever which may be levied or attempted to be levied in general by the City for the use of the City's Public Ways and other rights-of-way,with the sole exception of sales taxes, ad valorem taxes, and special assessments which are made without reference to or dependence upon the Company's franchise or occupancy of the streets and public right of way, e.g.special assessment paving liens. The rights, privileges, and franchises granted by this Ordinance are not to be considered exclusive,and the City hereby expressly reserves the right to grant,at any time as it may see fit, live privileges, rights, and franchises to any other person or corporation for the purpose of furnishing gas in the City. In the event any entity(other than the Company)providing gas sales or gas transportation service to customers within the City is subject to a lesser franchise fee than is required to be collected and paid by the Company in this Ordinance,then with respect to such gas sales or transportation service to those customers,the Company's Franchise Fee obligation on sales or transportation service to those customers will be reduced to a rate equal to the franchise fee rate required to be paid by such other entity. In the event the Company shall hereafter accept any franchise from a city in the Texas Gas Service Gulf Coast Service Area which provides for the payment to such city a fee in excess of the franchise fee provided herein,the Company shall inform the City's governing body and pursuant to such process as it deems appropriate,the Company may be directed by the City's governing body to pay City such increase rate applicable to the class of service affected. It is expressly agreed by the City and the Company that the Franchise Fees defined in this Franchise Ordinance are reasonable and necessary operating expenses of the Company and shall be fully recovered by the Company by collection from its customers in the City,whether asserted retroactively or prospectively and pursuant to existing or future laws or regulations,by revising its rate schedules,assessing an additional charge to the monthly bills of its customers within the City,adding an additional charge to the Company's purchase gas adjustment clause for the City or in any legal manner determined in the Company's discretion. Unless expressly set forth herein,or otherwise provided by law,by accepting this Ordinance,the Company does not agree to be responsible for the payment of franchise fees other than as expressly set forth herein, or for the payment of franchise fees owed to the City by any other entity,corporation,or firm. It is specifically provided however that this subsection shall not release, waive, or apply to the imposition of any fine,penalty or charge arising and imposed as a result of the violation of a rule, regulations,or ordinance. SECTION 12. CONDITIONS OF FRANCHISE This contract, franchise, grant and privilege is granted and accepted under and subject to all applicable laws and under and subject to all of the orders,rules,and regulations now or hereafter adopted by governmental bodies now or hereafter having jurisdiction. To the extent that all or any other existing ordinance shall conflict with any provision of this Ordinance,this Ordinance shall prevail upon passage,adopting and acceptance of this Ordinance. To the extent that all or any part of this Franchise Ordinance shall conflict with any provision of Ordinance No. 2002-01,Chapter 90 of the Nederland Code of Ordinances,the latter ordinance shall prevail. For clarification, nevertheless, any indemnity by the Company provided for in accordance with Ordinance No. 2002-04 shall not apply to any liability resulting from the negligence or intentional acts or omissions of the City,its employees,agents or contractors. SECTION 13. DISPUTE RESOLUTION Resolution of disputes arising under this Franchise Ordinance between the City and the Company, or any of its affiliates may first be attempted by submitting the dispute to mediation. The dispute shall be submitted to mediation upon the written demand of either party. The mediation shall be held in Jefferson County, Texas at the location designated by the party demanding the mediation. The mediator shall be selected by agreement within twenty(20)calendar days from the date the demand for mediation is received by the other party. If an agreement cannot be reached on a mediator within the time period stated herein,each party shall submit the name of a mediator and the selection will be made by chance drawing. The party not making the demand for mediation shall make the blind draw from the names submitted in the presence of the other party. Thereafter, the mediation shall be held at the selected designation within thirty (30) calendar days. Nothing herein shall preclude a party from seeking a mandatory or prohibitive injunction, or equitable relief from any court of competent jurisdiction to enforce or maintain the status quo pending mediation of any dispute. SECTION 14. INVALIDITY OF ORDINANCE If any clause,sentence,or section of this Ordinance shall be held to be invalid,it shall not affect the remaining portions of this Ordinance,which shall remain valid and effective as if such invalid provision did not exist, although the parties shall be entitled to a judicial interpretation or construction of this Ordinance to address the validation of such provision by minimal amendment thereof. Further,should any governmental body now or hereafter having jurisdiction determine that the Company shall not be permitted to collect in whole or in part the compensation due the City by others for Transport Gas as set forth in Paragraph(2)of Subsection A of Section 11 of this Ordinance,the Company shall thereafter have no obligation to make such payment to the City and Paragraph(2)of Subsection A of Section 11 shall be of no force and effect with regard to the sale of Transport Gas. SECTION 15. EFFECTIVE DATE AND TERM This Ordinance shall be presented at two (2) regular meetings of the City Council and not be finally acted upon until thirty (30) days after the first presentation. The Ordinance shall take effect and be in full force from and after its final passage and approval by the City Council and the acceptance hereof in writing by the Company as herein provided. This Franchise Ordinance shall continue and remain in full force and effect for a period of twenty-five(25)years from the effective date. SECTION 16. ACCEPTANCE BY COMPANY The Company shall have sixty(60)days from the execution of this Ordinance within which to file in the office of the City Clerk its consent to and written acceptance of provisions and conditions of this Franchise Ordinance. SECTION 17. PUBLICATION Within ten (10) days following each of the two presentations of this Ordinance, a descriptive caption of the Ordinance stating in summary the purpose of the Ordinance shall be published one time in the official newspaper of the City,and the expense of such publication shall be borne by the prospective franchise holder,the Company. SECTION 18. REPEALER Each and every other ordinance or part thereof which is directly in conflict with any provision herein as to the grant of a franchise for natural gas services and the regulation thereof is hereby repealed. SECTION 19. SEVERABILITY The provisions of this Ordinance are severable, and if any part or provision hereof shall be adjudged invalid by any court of competent jurisdiction, such adjudication shall not affect or impair any of the remaining parts or provisions hereof. PASSED AND READ by the City Council of the City of Nederl nd,Texa ,for the first reading of this ordinance,at a regular meeting this,the 13 rjv day of 2018. PASSED AND READ by the City Council of the City of Nederland, Texas, for the second reading of this ordinance,at a regular meeting this,the day of ,2018. APPROVED: .. =Z; --7**- L= R. •.Nugent yor '����•sq�� �' City of Nede nd,Texas ********** _tit i ,J// Ai.i ay Fergus./,City Clerk City of Nederland,Texas APPROVED AS TO FORM AND LEGALITY: Jess: Branir city Attorney City of Ne'erland,Texas The above and forgoing Franchise Ordinance and the grants,franchise,powers,rights and privileges thereto were accepted by the Company this ,2018. ONE Gas,Inc. By: Caron Lawhorn Senior Vice President, Commercial Distribution