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August 12, 2019 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m. August 12, 2019 1_ MEETING The meeting was called to order at 4:30 p.m. by Mayor Albanese at the Nederland City Office Building, 207 N. 12« Street, Nederland, Texas. See attached for quorum. The following statement was posted: " RSDANT TO SECTION 30_07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED FiANDGIJN), A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANUGUN LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY_" 2. INVOCATION AMC, 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 Councilmember Root and seconded by Councilmember Hollier to approve the Consent Agenda Items a-b as presented. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Horner, and Root. Noes: None. a. Minutes - July 22, 2019 regular meeting b. Consider action regarding a request from Brian English to utilize the Nederland Recreation Center gymnasium for a basketball league and tournament. 4_ REGULAR AGENDA a. Chris Ouque, City Manager, stated Ronnie Sanders, who resides at the corner of Holmes Road and Sara Lane, has approached city staff to request utility service. Mr. Sanders plans on building a home on this lot which is located outside the city limits and not located within any entities water certificate of convenience and necessity. Public Works staff has reviewed the request and does not believe there are any issues to prevent providing utility service. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Austin to provide utility service to property located at the corner of Holmes Road Minutes Continued, August 12, 2019 and Sara Lane, which is located outside the city limits of Nederland. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. b. A motion was made by Councilmember Austin and seconded by Councilmember Root to appoint Brandin Shaw to the Parks Advisory Board to fill a vacancy with a term ending January 30, 2020. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. c. A motion was made by Councilmember Austin and seconded by Councilmember Hollier to approve Ordinance No. 2019-03, approving a settlement agreement regarding the statement of intent of Texas Gas Service Company, a division of One Gas Inc., filed on April 16, 2019. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. d. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember Root to approve an Interlocal Agreement between the City of Nederland and the South East Texas Regional Planning Commission for the regional Emergency Notification project. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. e. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember Austin to approve a work authorization with UA Engineering for engineering services related to the Hazard Mitigation Grant Program Lift Station Generators project. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. f. A motion was made by Councilmember Hollier and seconded by Councilmember Root to amend the City of Nederland Wage &Classification Plan to adjust the School Crossing Guard compensation. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. g. Fiscal Year 2019-2020 Budget: i. Chris Duque, City Manager, reported there have been no changes to the preliminary budget which was presented at a budget workshop held on July 15, 2019. 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. 2019-11 setting a public hearing date of Monday, August 26th at 4:30 p.m. at the Nederland City Hall. Budget Highlights include: General Fund • Balanced budget by reducing the tax rate to $0.599159 per $100 assessed taxable value • Balanced budget with revenues and expenditures totaling $11,397,058 Minutes Continued, August 12, 2019 • Expenditures represent an increase of 4.07% or $446,231 over last year's adopted budget. Significant portion of increase goes toward salary and benefits increase, which includes one new Firefighter position, a 3.5% 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 increasing the monthly allocation to the Senior Citizen Center and $50,000 for a street light project. • 3.5% COLA for all regular, full-time employees; steps for hourly employees affected by 2016 salary survey on October 1, 2019; 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, 2020; steps for salaried employees not affected by salary survey or hired after April 1, 2017 on their anniversary date; $0.25/hour increase to part-time employee wages (if they have been with the City for two consecutive years); proposed adjustment to crossing guard pay ($35/day and $45/day for CO Wilson duty). • 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 • 2019/2020 Street Program budget $1.018M: $275,000 for Street Improvements in Street Department and $743,000 budgeted via the Street Improvement Fund; plan to allocate an additional $1.5M in the Street Improvement Fund after 10/1/2020 to be utilized for street projects; after 10/1/20 plan to allocate funding in Capital Outlay Fund to be utilized for drainage work. • Book budget for the Library - $25,000 • $198,000 for street lights • $48,000 for senior citizen center • $12,000 for special programs to pay youth league reimbursements and city events • $2,500 for Spay & Neuter program and $1,500 for feline population control services Water & Sewer Fund • Balanced budget with revenue and expenditures equaling $5,192,368 which is an increase of 15.53 percent from last year's adopted budget • Water and sewer rate increase $0.50 per 1000 gallons above the base will be proposed to raise additional revenue for main sewer line rehab project debt. • 3.5% COLA for all regular, full-time employees; steps for hourly employees affected by the 2016 salary survey on October 1, 2019; steps for hourly employees not affected by salary survey on April 1, 2020; steps for salaried employees not affected by salary survey on their anniversary date. • $210,000 for Untreated Water (updated LNVA water allocation) • $62,000 for Water Treatment Fixed Plant and Equipment R&M and $24,000 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 $5,000 for Water Distribution Lines Minutes Continued, August 12, 2019 Solid Waste Fund • Balanced budget with revenue and expenditures equaling $1,620,250 which is an increase of 2.08 percent from last year's adopted budget • No fee increase proposed this year • 3.5% 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, 2020 • Waste disposal costs will gradually increase due to revised contract with BFI/Allied Waste • Green Waste Disposal reflect chipping contract • $8,000 for contractual services, eliminated Recycling service costs Equipment Replacement Funds • General Fund: $160,000 for purchase of 2 police patrol units (Ford Explorers), and a dump truck for the Streets Department. • Water & Sewer Fund: $65,000 for purchase of 6 turbidimeters for WTP and 1/2 ton pickup truck for W/S Distribution. • Solid Waste: $300,500 for purchase of a garbage truck A motion was made by Councilmember Austin and seconded by Councilmember Hollier to approve Resolution No. 2019-11, submitting the City of Nederland Annual Budget for the fiscal year beginning October 1, 2019 and ending September 30, 2020 and calling for a Public Hearing to be held on August 26, 2019 at 4:30 p.m. at 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 Albanese, Councilmembers Austin, Neal, Hollier, and Root. 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 $0.579332 and the rollback tax rate has been calculated as $0.599159. On Friday, July 19th, JCAD submitted the assessed taxable value of $1,186,297,529 which is an increase of $66,715,272 or 5.96%. Mr. Duque recommended the city council consider reducing the tax rate to the rollback tax rate of $0.599159 per $100 assessed valuation, which is $0.019827 or 3.42% greater than the effective tax rate. He felt it was necessary to utilize the rollback tax rate with the on-going Nederland Avenue project debt, creation of a new fire fighter position, on-going sluggish industrial development, and the upcoming revenue cap imposed by Senate Bill 2. The proposed budget is based on the rollback tax rate. Since the proposed tax rate ($0.559159) is greater than the effective tax rate, two public hearings are necessary. The subsequent agenda items have been included to satisfy this requirement. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember Hollier to approve a proposed tax rate of $0.599159 per $100 assessed valuation for the fiscal year beginning October 1, 2019 and ending September 30, 2020. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. Minutes Continued, August 12, 2019 iii. A motion was made by Councilmember Hollier and seconded by Councilmember Root to schedule tax rate adoption dates: • Monday August 26th at 4:30 p.m. at the Nederland City Hall (regular meeting) - 1st Public Hearing • Friday, August 30th at 9:00 a.m. at the Nederland City Hall (special meeting) - 2nd Public Hearing • Monday, September 9th at 4:30 p.m. at the Nederland City Hall (regular meeting) - Adopt the tax Rate MOTION CARRIED: Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. iv. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern Neal regarding the proposed tax rate and establishing the dates of August 26, 2019 at 4:30 p.m. and August 30, 2019 at 9:00 a.m. for public hearings. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. 5. EXECUTIVE SESSION Mayor Albanese announced the Executive Session was not needed. 6. COMMUNICATION a. Miscellaneous: 1. Robert Woods, Director of Public Works, gave a brief update on projects: • Asphalt Street Project - work is substantially completed. Closeout will be on next agenda. • Concrete Street Project - 17th Street has been completed and contractor has moved to 33rd Street. Work will take 4-5 weeks to complete. • Sewerline Project - KCS has signed off on the permit and work will begin on Avenue H after the Labor Day holiday as to not interfere with beginning of school traffic. 2,300 feet of pipe has been cleaned and TV'd. 2. Library Roof is close to 50% being completed. 3. The Education Foundation Breakfast will be in the morning at the First Methodist Church 4. The Legislative Update will be tomorrow at 11:00 a.m. at the Bob Bowers Civic Center. 5. School begins August 19th 7. ADJOURN There being no further business a motion was made by Mayor Albanese and seconded by Councilmember Hollier to adjourn the meeting at 5:00 p.m. MOTION CARRIED. Minutes Continued, August 12, 2019 Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. deg. ,.\`\,QR�/�/Q''%,,` Don Albanese, Mayor �C�,•• �_oc�•. City of Nederland, Texas C .n, \, 11) o 9UIVT`I ()� C, /!lI1111 ,0\ ATTEST: /44 04F cia:4 ay Fer, son, City C rk City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESENT ABSENT Don Albanese Mayor V Talmadge Austin Council Member—Ward I Billy Neal Council Member—Ward II V Emmett Hollier Council Member—Ward III Sylvia Root Council Member—Ward IV Chris Duque City Manager Gay Ferguson City Clerk ‘7 Jesse Branick City Attorney Cheryl Dowden Director of Finance Gary Porter Police Chief V Terry Morton Fire Chief V Robert Woods Director of Public Works V George Wheeler Building Official V Victoria Klehn Librarian V Holly Guidry Human Resources Director Joni Underwood Executive Secretary `' Angela Fanette Parks Director i 41,Apti daemstia I,on Albanese, Mayor T4� Gay FergusPOL , ty C erk August 12, 2019 Date I CITY OF NEDERLAND RESOLUTION 2019-11 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 1,2019 AND ENDING SEPTEMBER 30,2020. 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 1,2019 and ending September 30,2020;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 26,2019,to approve this budget in the proposed or amended form in accordance with Article VII of the City Charter. 00""" iASSED AND APPROVED this the 12th day of August,2019. �FORND 4.. \��•:moo .. � *Li- on Albanese,Mayor JC %U; ORDINANCE NO. 2019-23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS APPROVING A SETTLEMENT AGREEMENT REGARDING THE STATEMENT OF INTENT OF TEXAS GAS SERVICE COMPANY, A DIVISION OF ONE GAS INC., TO INCREASE RATES TO RECOVER HURRICANE HARVEY RESPONSE COSTS WITHIN THE GULF COAST SERVICE AREA; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; 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 April 16, 2019,Texas Gas Service Company, a division of One Gas,Inc.("TGS"or"Company")filed a Statement of Intent with the City of Nederland ("City")and concurrently with the Texas Railroad Commission to implement a Hurricane Harvey Surcharge in the Gulf Coast Service Area to collect $357,194 per year for two years,for a total recovery of$714,389;and WHEREAS, the City denied the Company's request on June 24, 2019 under Ordinance No.2019-20;and WHEREAS,the City intervened as an interested part in the concurrent proceedings regarding the Company's Statement of Intent at the Railroad Commission of Texas,Gas Utilities Docket No.10844("GUD No. 10844");and WHEREAS, on July 17, 2019, TGS filed a Petition for Review of the City's denial ordinance in GUD No.10844;and WHEREAS, TGS, Railroad Commission staff, and Gulf Coast Service Area cities, including the Cities of Groves, Nederland, Port Arthur, and Port Neches and the City of Galveston,participated in settlement discussions to resolve the issues raised in GUD No. 10844 without further litigation;and WHEREAS, a copy of the proposed Settlement Agreement is attached hereto as Attachment A and is incorporated herein by reference;and WHEREAS,in summary,the parties to GUD No. 10844 agreed that(1)no change to base rates will be approved at this time; (2) the Company will seek to recover its Hurricane Harvey response costs in its next comprehensive base rate proceeding;(3)the Cities and other parties reserve the right to dispute the reasonableness and necessity of the Company's Hurricane Harvey response costs in its next comprehensive base rate proceeding; (4) TGS will create and record a regulatory asset to defer the $714,389 in costs at issue so that the reasonableness and necessity of these costs can be considered in its next comprehensive base rate proceedings;(5)TGS will not include carrying costs in the regulatory asset and will not seek to recover any carrying costs associated with the Hurricane Harvey response costs; and (6) TGS will reimburse Cities for their legal and consultant expenses and may request recovery of these expenses along with its own reasonable and necessary rate case expenses in its next comprehensive base rate proceeding;and WHEREAS, the Railroad Commission staff, the Lawton Law Firm retained to represent the cities of Groves, Nederland, Port Arthur,and Port Neches,and counsel for the City of Galveston have recommended approval of the Settlement Agreement terms as a reasonable alternative to resolve the issues raised in GUD No. 10844 without litigation and further accrual of rate case expenses. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS,THAT: Section 1. The statements and findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. The City of Nederland, Texas hereby approved the attached Settlement Agreement terms resolving the issues raised in GUD No. 10844,currently pending at the Railroad Commission of Texas. 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. PASSED AND APPROVED this 12TH day of AUGUST,2019. t, • ("'rt( l.�C.'� 01* !ly :�= Don Albanese,Mayor B>.-•z„.0 • _ City of Nederland,Texas CAI IFIT6 Gay Ferg/on,City Cler City of Nederland,Texas APPROVED AS TO FORM AND LEGALITY: iiayt441 Jesse anic Attorney City qf Ned: and,Texas ATTACHMENT A Page 1 of 4 GAS UTILITIES DOCKET NO. 10844 STATEMENT OF INTENT OF TEXAS § GAS SERVICE COMPANY,A DIVISION § BEFORE THE OF ONE GAS, INC., TO INCREASE § RATES TO RECOVER HURRICANE § RAILROAD COMMISSION HARVEY RESPONSE COSTS WITHIN § THE GULF COAST SERVICE AREA § OF TEXAS UNANIMOUS SETTLEMENT AGREEMENT IN SUPPORT OF A REGULATORY ASSET This Unanimous Settlement Agreement is entered into by and between Texas Gas Service Company, a Division of ONE Gas, Inc. ("TGS"), the Staff of the Railroad Commission of Texas ("Staff"),the City of Galveston("Galveston"), and the Cities of Groves,Nederland,Port Arthur, and Port Neches ("Cities") (collectively,the"Signatories"). WHEREAS, on April 16, 2019, TGS filed a Statement of Intent to Increase Rates to Recover Hurricane Harvey Response Costs Within the Gulf Coast Service Area; WHEREAS, TGS proposed in its Statement of Intent to recover$714,389,which reflects an offset for insurance proceeds,through a two-year surcharge; WHEREAS,the Commission docketed the rate request as GUD No. 10844; WHEREAS,Staff,Galveston,and Cities sought intervention and were granted party status in GUD No. 10844; WHEREAS, on May 7, 2019, the Commission suspended the implementation of the Company's rate request for one hundred fifty (150) days from the date on which the rates would otherwise become effective,until October 18,2019; WHEREAS,TGS filed direct testimony with its Statement of Intent; , WHEREAS, Staff, Galveston, and Cities will not file testimony in reliance on this Unanimous Settlement Agreement; WHEREAS, the Signatories agree that resolution of this docket by settlement agreement will significantly reduce the amount of reimbursable rate case expenses that would, if further litigation is pursued,be allocated to customers within the Gulf Coast Service Area; WHEREAS, the Signatories represent diverse interests and the Unanimous Settlement Agreement resolves the issues in GUD No. 10844 in a manner that the Signatories agree is consistent with the public interest; and NOW,THEREFORE,in consideration of the mutual agreements and covenants established herein, the Signatories, through their undersigned representatives, agree to and recommend for 1 ATTACHMENT A Page 2 of 4 approval by the Commission, Cities and Galveston the following Settlement Terms as a means of fully resolving the rate request pending before the Commission,Cities and Galveston without the need for additional litigation: Settlement Terms 1. The Signatories agree that TGS is no longer seeking to implement a surcharge and change utility rates for customers within the Gulf Coast Service Area through the statement of intent filed in this case. Accordingly, no change to base rates will be approved in this docket. 2. The Signatories agree to postpone consideration of the reasonableness and necessity of TGS's costs incurred in its response to Hurricane Harvey until the next comprehensive base rate proceeding in which base rates for the Gulf Coast Service Area are determined. 3. The Signatories do not take any position at this time on the reasonableness or necessity of the costs that TGS proposed to recover through this statement of intent filing. 4. The Signatories agree that TGS will create and record a regulatory asset to defer the costs at issue in this case so that the reasonableness and necessity of these costs can be considered in the next proceeding in which base rates for the Gulf Coast Service Area are determined. The amount of deferred costs is $714,389, which represents total Hurricane Harvey response costs net of insurance proceeds and other adjustments,as proposed in this docket. 5. The Signatories agree that TGS will not include carrying costs in the regulatory asset and will not seek to recover any carrying costs associated with the Hurricane Harvey response costs. 6. TGS agrees to reimburse Cities and Galveston for their legal and consultant expenses associated with GUD No. 10844. Such reimbursement shall be made on or before thirty (30)days from the date the Commission approves this Settlement Agreement and upon the Company receiving legal invoices or other documentation reflecting Cities' and Galveston's incurred costs. The Signatories agree that TGS is entitled to request the recovery of rate case expenses incurred by TGS, Galveston and Cities related to this case, in the next proceeding in which base rates for the Gulf Coast Service Area are determined. The reasonableness,necessity, and total amounts of the proposed rate case expenses to be recovered will be determined in the next proceeding in which base rates for the Gulf Coast Service Area are determined. 7. The Signatories agree to the admission of the following items: • TGS's filed Statement of Intent to Increase Rates to Recover Hurricane Harvey Response Costs Within the Gulf Coast Service Area, inclusive of all attachments and including the direct testimony of Stacey McTaggart. • Affidavit of Jeffrey J. Husen, Vice President, Chief Accounting Officer and Controller, ONE Gas, Inc., attesting to the accounting treatment for Hurricane Harvey costs reflected in Item 1 (attached as Exhibit 1). 2 • ATTACHMENT A Page 3 of 4 • Affidavit of Stacey McTaggart attesting to the completion of notice on June 20, 2019. 8. The Signatories agree to support and seek approval by the Commission, Cities, and Galveston of this Unanimous Settlement Agreement. 9. The Signatories agree that all negotiations, discussions, and conferences related to the Unanimous Settlement Agreement are privileged, inadmissible, and not relevant to prove any issues associated with the next proceeding in which base rates will be determined for the Gulf Coast Service Area. 10. The Signatories agree that neither this Unanimous Settlement Agreement nor any oral or written statements made during the course of settlement negotiations may be used for any purpose other than as necessary to support the entry by the Commission of an order approving this Unanimous Settlement Agreement. 11. The Signatories agree that the terms of the Unanimous Settlement Agreement are interdependent and indivisible,and that if the Commission intends to enter an order that is inconsistent with this Unanimous Settlement Agreement, then any Signatory may withdraw without being deemed to have waived any procedural right or to have taken any substantive position on any fact or issue by virtue of that Signatory's entry into the Unanimous Settlement Agreement or its subsequent withdrawal. 12. The Signatories agree that this Unanimous Settlement Agreement is binding on each Signatory only for the purpose of settling the issues set forth herein and for no other purposes, and except to the extent the Unanimous Settlement Agreement governs a Signatory's rights and obligations for future periods, this Unanimous Settlement Agreement shall not be binding or precedential upon a Signatory outside this proceeding. 13. The Signatories agree that this Unanimous Settlement Agreement may be executed in multiple counterparts and may be filed with facsimile signatures. 3 a ATTACHMENT A Page 4 of 4 Agreed to this 18th day of July 2019. TEXAS GAS SERVICE COMPANY,a Division of ONE Gas,Inc. By: Stephanie G.Houle Attorney for Texas Gas Service Company STAFF OF THE RAILROAD COMMISSION OF TEXAS By: Natalie Dubiel Attorney for Staff of the Railroad Commission of Texas THE CITY OF GALVESTON By: Jamie Mauldin Attorney for the City of Galveston Agreed in principle,subject to approval of the City Council of the City of Galveston THE CITIES OF GROVES,NEDERLAND, PORT ARTHUR,AND PORT NECHES By: Molly Mayhall Vandervoort Attorney for the Cities of Groves,Nederland,Port Arthur, and Port Neches Agreed in principle, subject to approval of the City Councils of the Cities of Groves, Nederland,Port Arthur,and Port Neches 4