April 15, 2019 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. April 15, 2019
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 HANDGUN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2. 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 Mayor Pro Tern Neal and seconded by Councilmember Austin
to approve the Consent Agenda Items a-c as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
a. Minutes - April 15, 2019 regular meeting
b. March 2019 Departmental Reports
c. Consider action regarding an amended request from Nederland Independent
School District to utilize the Nederland Swimming Pool, Doornbos Park, and the
Nederland Recreation Center for end of the school year parties.
5. EXECUTIVE SESSION
The regular meeting was recessed at 4:32 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.087, Deliberation Regarding Economic Development Negotiations.
6. RECONVENE
The regular meeting was reconvened at 4:43 p.m. by Mayor Nugent. He announced
the Executive Session was held for informational purposes only and no action was
necessary.
Minutes Continued, April 15, 2019
4. REGULAR AGENDA
a. Rhonda Masters with the Texas General Land Office and Jennifer Mattingly with
AECOM gave a presentation on the South East Texas Region Homeowner
Assistance Program (HAP). The HAP was developed by the State of Texas to assist
eligible homeowners in rehabilitation or reconstructing their homes after Harvey.
b. Gary Porter, Police Chief, gave a brief presentation on the Nederland Police
Department's Annual Report. No action was necessary.
c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve Ordinance No. 2019-11, suspending the rates for 45 days,
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 28, 2019. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
d. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Austin to approve Ordinance No. 2019-12, denying the Distribution Cost Recovery
Factor Rate increase request of Entergy Texas, Inc. filed on March 28, 2019.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
e. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to amend the Nederland Personnel Policy Manual. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
f. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Austin to amend Ordinance No. 164, setting the calendar for regular City Council
meetings for May 2019 through April 2020. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
g. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve Ordinance 2019-13, amending the fiscal year 2018-2019 budget.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
h. Bids:
i. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Belaire to authorize the solicitation of bids for the 2019 Hot Mix Overlay project.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, and Belaire.
Noes: None.
ii. A motion was made by Councilmember Belaire and seconded by Mayor Pro Tern
Neal to reject and rebid the Marion & Ed Hughes Public Library Roof project bid.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, and Belaire.
Minutes Continued, April 15, 2019
Noes: None.
7. COMMUNICATION
• Tomorrow will be the groundbreaking ceremony at DuGood FCU
• Saturday at Doornbos Park will be the First Baptist Church Easter Egg Hunt
• City Offices will be closed on Friday, April 19th in observance of Good Friday
• Saturday, April 27th will be Relay for Life
• SETRPC will be hosting the hazardous waste collection on April 27th in Silsbee
• National Day of Prayer will be on May 2nd
• EDC Market Days will be May 4th
6. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Mayor Pro Tem Neal to adjourn the meeting at 5:27 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
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R. A. Nugent, M.jor
City of Nederlan•, Texas
ATTEST:
Gay Ferguson, 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
Vacant Council Member—Ward III
Craig Belaire Council Member—Ward IV
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick CityAttorney
Y
Cheryl Dowden Director of Finance
Gary Porter Police Chief V
Terry Morton Fire Chief
Robert Woods Director of Public Works
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
17
Angela Fanette Parks Director
R.A. Nug t, M or
ay Fergu n, Ci le i6
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AN AMENDMENT TO ORDINANCE NO. 164
AN ORDINANCE SETTING REGULAR DATES FOR
COUNCIL MEETINGS TO BE HELD FROM MAY 13,
2019 THROUGH APRIL 13,2020.
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 13 and 20, 2019
June 10 and 24, 2019
July 8 and 22, 2019
August 12 and 26, 2019
September 9 and 23, 2019
October 14 and 28, 2019
November 11 and 18, 2019
December 9 and 16, 2019
January 13 and 27, 2020
February 10 and 24, 2020
March 9 and 23, 2020
April 6 and 13, 2020
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
`\ ,a l trot v%of April, 2019.
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Gay el-so'son, City Cl k
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jesse Bra'i , City Attorney
Cit of derland, Texas
ORDINANCE NO.2019-11
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 ENERGY ENTEX AND CENTERPOINT ENERGY
TEXAS GAS ("CENTERPOINT" OR "COMPANY") COMPANY'S
GAS RELIABILITY INFRASTRUCTURE PROGRAM("GRIP")FILING
MADE WITH THE CITY ON MARCH 28,2019;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 28, 2019, 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,the Company proposed an effective date for the proposed increase of
May 27,2019,unless the City suspends the date for a period no longer than forty-five(45)
days;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 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 City finds the need to suspend the effective date of CenterPoint's
proposed rate increase for 45 days beyond the Company's proposed effective date until
July 10, 2019 in order to review the Company's filing for compliance with Gas Utility
Regulatory Act§104.301;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 the Company's proposed GRIP rate increase,
and the proposed tariffs related thereto, are hereby suspended
until July 10,2019.
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 by operation of law
on July 10,2019.
Section 4. 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 5. This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 15TH day of APRIL,2019.
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pac -cap/ (4-m_,
ay on,City Clerk
City of Nederland,
APPROVED AS TO FORM AND LEGALITY:
Jes - Bra Vol , ity Attorney
Ci y o l ederland,Texas
ORDINANCE NO. 2019-12
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS ("CITY") DENYING THE DISTRIBUTION
COST RECOVERY FACTOR RATE INCREASE REQUEST OF
ENTERGY TEXAS, INC. FILED ON MARCH 28, 2019; SETTING
JUST AND REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR
SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT;MAKING
OTHER FINDINGS
WHEREAS, on or about March 28, 2019, Entergy Texas, Inc. ("Entergy") filed an
Application for Approval to Establish its Distribution Cost Recovery Factor with the City to
increase electric rates by implementing a new rider pursuant to Public Utility Regulatory
Act("PURA")Section 36.210;and
WHEREAS, the City has exclusive original jurisdiction over the rates, operations,
and services of an electric utility within its municipal limits pursuant to PURA Section
33.001(a);and
WHEREAS,the jurisdictional deadline for the City to act in this rate matter is May
27,2019;and
WHEREAS, Entergy's proposed Distribution Cost Recovery Factor rider would
increase customer rates in the Entergy Service Area by approximately $3.2 million per
year;and
WHEREAS,the City retained the Lawton Law Firm, P.C.to review the Company's
rate request and make necessary rate recommendations to the City;and
WHEREAS, the Lawton Law Firm has recommended that the City deny the
Company's request for a Distribution Cost Recovery Factor.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS,THAT:
Section 1. That the statement and findings set out in the preamble to this
Ordinance are hereby in all things approved and adopted.
Section 2. The City of Nederland hereby denies Entergy's request for a
Distribution Cost Recovery Factor in total.
Section 3. The meeting at which this ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act,
Texas Government Code,Chapter 551.
Section 4. This ordinance shall become effective from and after its passage.
`\`"0„,,,,,„,„PPSSED AND APPROVED this 15TH day of APRIL,2019.
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r .c•-14>,��Ij/•�.�� Mayor R.�Dick"Nugent
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Pay Fergu n,City Clerk
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APPROVED AS TO FORM AND LEGALITY:
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1/-,i , C....---"Jesse : . j'ity Attorney
City o. derland,Texas
2
ORDINANCE NO. 2019-13
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS AMENDING THE FISCAL YEAR 2018-
2019 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS,the City Council previously approved Ordinance No. 2018-25,which adopted
the Fiscal Year 2018-2019 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 2018-2019 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2019 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2018 and ending September 30, 2019,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 2018-2019 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
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�.�4 : '1 EETING THIS THE 15th DAY OF APRIL,2019.
1.1 R.A.Nugent, *or
City of Nederla 'd,Texas
AL1 .
G.ay Fergu�.•n,City Cler
APPROVED AS TO FORM AND LEGALITY:
Jes -011
� ,'City Attorney
1
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2018-2019
DATE: April 15, 2019
DEPARTMENT: Various
FUND: Parks Special (25), Capital Outlay(31)
Equipment Replacement General (34)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
25-0000-6720 Building, Fixtures&Grounds - 169,000 169,000
34-0000-6744 Miscellaneous Equipment - 10,650 10,650
TOTAL - 179,650 179,650
JUSTIFICATION
In the Parks Special Fund,funding the Doornbos Park Electrical Loop is funded; this is a carryover project from
last fiscal year; thus, it is necessary to re-allocate the funding in the new fiscal year.
In the Equipment Replacement Fund-General, funds are allocated for the purchase of a new containment fill
station suitable for SCBA cylinders. There are sufficient reserve funds to cover this purchase.
Dept. Head Signature: Date:
Finance Director: Date:
Date Approved: Date Posted:
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