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January 13, 2020 REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NEDERLAND 4:30 p.m- January 13, 2020 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor Albanese at the Nederland City Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum. The following statement was posted: "F.LJR5 DANT 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 Councilmember Root and seconded by Councilmember Horner 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 - December E., 2019 regular meeting b. Tax Assessor Collection Report - November 2019 4_ REGULAR AGENDA a. Ronald Fletcher, Customer Service Manager for Mid and South Counties of Entergy, reported on the new meter system which is in the process of being installed for residential and commercial customers. He said the meters will be able to be read remotely and turned off and on remotely_ It will provide better customer service, more accurate reading, and provide usage reports within 4-5 hours after use. Notification letters were mailed to all customers. No action was necessary. b. A motion was made by Councilmember Austin and seconded by Councilmember Root to accept the quarterly Hotel Occupancy Tax Fund financial report from the Nederland Chamber of Commerce. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Minutes Continued, January 13, 2020 Noes: None. c. A motion was made by Councilmember Hollier and seconded by Mayor Pro Tern Neal to accept the Quarterly Investment Report from the Finance Department. 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 amend the Lifeguard Training Reimbursement policy. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. e. A motion was made by Councilmember Austin and seconded by Councilmember Hollier to approve Ordinance No. 2020-01, authorizing the suspension of the effective date for an additional ninety days beyond the effective date proposed by Texas Gas Service Company in connection with its statement of intent to increase rates. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. f. A motion was made by Councilmember Austin and seconded by Councilmember Hollier to approve Ordinance No. 2020-02, authorizing the suspension of the effective date for an additional ninety days beyond the effective date proposed by CenterPoint in connection with its statement of intent to increase rates filed on November 14, 2019. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. g. Chris Duque, City Manager, said the city issued approximately $10 million in certificates of obligation to fund necessary sewer system improvements. The first project was the Main Sewer Line Rehabilitation Project which is currently under construction. With over $5 million remaining, staff discussed additional sewer projects. One of the priorities identified was improvements to the wastewater treatment plant. There have been no upgrades to the wastewater treatment plant in over 20 years. Robert Woods, Public Works Director, and Dannie Davis, Wastewater Treatment Plant Manager, presented a spreadsheet of needed repairs and the estimated cost associated with the repairs which included upgrades to the disinfection system controls, sludge handling equipment, clarifiers, replacement of existing pumps, and expansion to the building for electrical equipment. h. A motion was made by Councilmember Austin and seconded by Councilmember Hollier to approve a request from Mid-County Plaza, LLC for water and sewer service outside the city limits along Jerry Ware Drive, Parker Drive, and 1st Street at the Jack Brooks Regional Airport. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. Minutes Continued, January 13, 2020 5. COMMUNICATION a. Miscellaneous: Robert Woods, Director of Public Works reported work has completed on 33rd Street and the close out will be brought before City Council at the next meeting. On the sewer line project, the contractor has begun cleaning lines and will begin construction on 27th Street soon. Chris Duque said city offices will close on January 20th in observation of M. L. King Day. The Chamber of Commerce Officer Installation Banquet will be Thursday, January 16th at Benton's. Mr. Duque thanked Robert Woods, Terry Morton, and Gary Porter for the work they did preparing for the weather event. 6. ADJOURN There being no further business a motion was made by Mayor Albanese and seconded by Councilmember Austin to adjourn the meeting at 5:03 p.m. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root. Noes: None. '\‘‘ c.ER/A �;w .` .•o g -' st' n Albanese, Mayor v:q"1 City of Nederland, Texas 7 ,.• << 1111111/111111110\‘‘‘ ay erg on, City Cle City of Ne erland, 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 Jesse Branick City Attorney Cheryl Dowden Director of Finance V 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 Angela Fanette Parks Director on Albanese, Mayor -a r l ay Fergu on, City lerk January 13, 2020 Date Don Albanese,Mayor 14 EBilly Neal,Mayor Pro-Tem /0f, . Talmadge Austin,Councilmember 47/ ' City o f Nederland Emmettadge siCouncilmember / , Sylvia Root,Councilmember U , Christopher Duque,City Manager P.O.Box 967•Nederland,Texas 77627•(409)723-1503•FAX(409)723-1550 ,.nr Investment Report For the Quarter Ending September 30,2019 This report has been prepared in accordance with the Public Funds Investment Act(Section 2256.023, Government Code), which requires that a quarterly report be submitted to City Council detailing investment transactions and performance for the reporting period. Submitted by the Investment Officers of the City of Nederland que, jt Manager 0A4,4 Cheryl D.d�w , irector of Finance "Programmed for Progress City of Nederland Summary of Account Activity Total Portfolio -All Accounts For Quarter Ending September 30, 2019 Investments at Beginning of Period (7-1-19) $ 35,412,382.02 Purchases 700,680.59 Maturities 300,000.00 Investments at End of Period(9-30-19) $ 35,813,062.61 Maturity Summary at September 30, 2019 ■Less than 3 months ■3 to 9 months o9 to 12 months ■Greater than 12 months City of Nederland Summary of Account Activity Total Portfolio -All Accounts For Quarter Ending September 30,2019 Balance Balance 7/1/2019 Purchases Maturities 9/30/2019 General Fund $ 14,640,675.54 $ 82,879.83 $ 14,723,555.37 Library Fund 43,374.89 247.72 43,622.61 Library Fund-Zaruk Memorial 10,377.48 56.62 10,434.10 Nederland Ave. Rehab Fund 1,796,791.38 9,850.94 $ 300,000.00 1,506,642.32 Water& Sewer Fund 4,604,624.84 26,066.42 4,630,691.26 Solid Waste Fund 1,536,900.59 8,700.31 1,545,600.90 Street Improvement Fund 3,006,269.56 517,552.54 3,523,822.10 Police Narcotics Fund 74,511.70 421.75 74,933.45 2018 WW Project 9,515,719.01 53,867.78 9,569,586.79 Bond Redemption Fund 183,137.03 1,036.68 184,173.71 $ 35,412,382.02 $ 700,680.59 $ 300,000.00 $ 35,813,062.61 Fund Allocation at September 30, 2019 Police Narcotics Fund 0.21% Solid Waste Fund Street Improvement Fund 4.32% Nederland Ave.Rehab 9.84% Fund 4.21% General Fund 41.11% Water&Sewer Fund 12.93% Bond Redemption Fund 0.51% Library Fund-Zaruk Memorial 0.03% Library Fund 2018 WW Project 0.12% 26.72% Investment Report Schedule Investments for the Quarter ended September 30,2019 INVESTMENT POOL-TEXPOOL Average Days to Interest Interest Period Held Maturity Rate Market Principal Earned Book Value General Fund 07/01/19 09/30/19 1 2.2409% $ 14,640,675.54 82,879.83 $ 14,723,555.37 Water&Sewer 07/01/19 09/30/19 1 2.2409% 4,604,624.84 26,066.42 4,630,691.26 Bond Redemption Fund 07/01/19 09/30/19 1 2.2409% 183,137.03 1,036.68 184,173.71 Library Special 07/01/19 09/30/19 1 2.2409% 43,374.89 247.72 43,622.61 Library Special-Zaruk Memorial 07/01/19 09/30/19 1 2.2409% 10,377.48 56.62 10,434.10 Nederland Ave.Rehab Fund 07/01/19 09/30/19 1 2.2409% 1,496,791.38 9,850.94 1,506,642.32 Solid Waste Fund 07/01/19 09/30/19 1 2.2409% 1,536,900.59 8,700.31 1,545,600.90 Street Improvement Fund 07/01/19 09/30/19 1 2.2409% 3,506,269.56 17,552.54 3,523,822.10 2018 WW Project 07/01/19 09/30/19 1 2.2409% 9,515,719.01 53,867.78 9,569,586.79 Police Narcotic Fund 07/01/19 09/30/19 1 2.2409% 74,511.70 421.75 74,933.45 Totals for TEXPOOL Investments $ 35,612,382.02 $200,680.59 $ 35,813,062.61 *Texpool is rated AAAm by Standard&Poor's,which is the highest rating a local government investment pool can achieve Investment Report Schedule Investments for the Quarter ended September 30,2019 INTEREST EARNED ON DEMAND DEPOSITS Interest Earned Average Quarter ended Days to Interest September 30, Period Held Maturity Rate 2019 Bond Redemption Fund 07/01/19 09/30/19 1 1.3821% $ 75.65 Capital Outlay Fund 07/01/19 09/30/19 1 1.3821% 2,513.65 Court Technology Fund 07/01/19 09/30/19 1 1.3821% 7.25 Equipment Replacement Funds 07/01/19 09/30/19 1 1.3821% 4,443.77 Fire Department Special Fund 07/01/19 09/30/19 1 1.3821% 119.18 General Fund 07/01/19 09/30/19 1 1.3821% 7,805.54 Library Special Fund 07/01/19 09/30/19 1 1.3821% 25.29 MCML Dispatch 07/01/19 09/30/19 1 1.3821% 1,077.43 Motel Occupancy Tax Fund 07/01/19 09/30/19 1 1.3821% 205.47 Nederland Avenue Project 07/01/19 09/30/19 1 1.3821% (111.39) Parks&Recreation Special Fund 07/01/19 09/30/19 1 1.3821% 227.97 Police Narcotic Fund 07/01/19 09/30/19 1 1.3821% 116.71 Solid Waste Fund 07/01/19 09/30/19 1 1.3821% 3,445.88 Street Improvement Fund 07/01/19 09/30/19 1 1.3821% 1,156.94 SSES Fund 07/01/19 09/30/19 1 1.3821% 1,032.84 2018 WW Project 07/01/19 09/30/19 1 1.3821% 1,507.63 Water Plant Construction Fund 07/01/19 09/30/19 1 1.3821% 31.58 Wastewater Construction Fund 07/01/19 09/30/19 1 1.3821% 33.21 W&S Certificate Fund 07/01/19 09/30/19 1 1.3821% 0.00 Water&Sewer Fund 07/01/19 09/30/19 1 1.3821% 3,008.54 $ 26,723.14 Investment Report Schedule September 30, 2019 Interest Earnings for Quarter Ended September 30, 2019 Bond Redemption Fund $ 1,112.33 Capital Outlay Fund 2,513.65 Court Technology Fund 7.25 Equipment Replacement Funds 4,443.77 Fire Department Special Fund 119.18 General Fund 90,685.37 Library Special Fund 273.01 Library Special Fund-Zaruk Memorial 56.62 MCML Dispatch 1,077.43 Motel Occupancy Tax Fund 205.47 Nederland Avenue Project 9,739.55 Parks & Recreation Special Fund 227.97 Police Narcotic Account 538.46 Solid Waste Fund 12,146.19 Street Improvement Fund 18,709.48 SSES Fund 1,032.84 2018 WW Project 55,375.41 Water Plant Construction Fund 31.58 Wastewater Construction Fund 33.21 W & S Certificate Fund 0.00 Water& Sewer Fund 29,074.96 $ 227,403.73 ORDINANCE NO. 2020-01 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE EFFECTIVE DATE PROPOSED BY TEXAS GAS SERVICE COMPANY IN CONNECTION WITH ITS STATEMENT OF INTENT TO INCREASE RATES FOR ITS GULF COAST SERVICE AREA, CENTRAL TEXAS SERVICE AREA, AND THE CITY OF BEAUMONT, FILED ON DECEMBER 20, 2019; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS; 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 December 20,2019,Texas Gas Service Company,a Division of ONE Gas,Inc.("TGS"or the"Company")filed a Statement of Intent with the City of Nederland("City") to increase gas rates within the incorporated areas of the Central Texas Service Area ("CTSA"), the Gulf Coast Service Area("GCSA"),and the City of Beaumont by$17 million per year;and WHEREAS,TGS's statement of intent includes a request to consolidate the Central Texas, Gulf Coast,and City of Beaumont service areas into a single Central-Gulf Service Area;and WHEREAS,City has exclusive original jurisdiction over the rates,operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code§103.001;and WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates;and WHEREAS,the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act§103.022;and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment and request for consolidation, it is necessary to suspend the effective date for implementing the proposed rates until at least May 6, 2020 in order to allow the City's rate experts sufficient time to determine the merits of the Company's proposal; and WHEREAS,in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating TGS's $17 million rate increase request, City's efforts will be coordinated with similarly situated municipalities in the Company's affected service areas;and WHEREAS,the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City;and 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 resolution are hereby in all things approved and adopted. Section 2. The effective date of TGS's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety(90)days until May 6, 2020 in order to complete the review and investigation by the City's experts. Section 3. The City is authorized to join with other municipalities as part of the Gulf Coast Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of TGS before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to TGS for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from TGS through the service of requests for information,which shall be responded to within seven(7)calendar days of receipt of such requests for information. Section 7. TGS shall reimburse the City,through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related thereto,upon the presentation of invoices reviewed by the Steering Committee. Section 8. 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 9. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 13TH day of JANUARY,2020. \������IIIIIIII//„1 �p,ND. No z• 'y� :w E Don Albanese,Mayor u- `•�',W.p• City of Nederland,Texas a, . /J 4.4 Cay Fergu_soj,City Clerk • City of Nederland,Texas APPROVED AS TO FORM AND LEGALITY: Jesse Bra ick,C A rney City of N-•- and,Texas ORDINANCE NO.2020-02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE EFFECTIVE DATE PROPOSED BY CENTERPOINT IN CONNECTION WITH ITS STATEMENT OF INTENT TO INCREASE RATES FOR CENTERPOINT'S BEAUMONT/EAST TEXAS DIVISION FILED ON NOVEMBER 14, 2019; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTEND PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS; 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 November 14,2019,CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company")filed a Statement of Intent with the City of Nederland to increase gas rates in the Beaumont/East Texas Division Service Area by$6.816 million per year;and WHEREAS, the City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001;and WHEREAS, the Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates;and WHEREAS, the City's reasonable cost of regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022;and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least April 17, 2020 in order to allow the City's rate experts sufficient time to determine the merits of CenterPoint's proposed rates;and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,analyzing,and investigating CenterPoint's$6.816 million rate increase request, the City's efforts will be coordinated with similarly situated municipalities in CenterPoint's Beaumont/East Texas Division Service Area;and WHEREAS,the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City. 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 CenterPoint's proposed rate increase,and the proposed tariffs related thereto, is hereby suspended for an additional ninety(90)days until April 17,2020 in order to complete the review and investigation by City's experts. Section 3. The City is authorized to join with other municipalities as part of the CenterPoint Beaumont/East Texas Division Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs the Lawton Law Firm, P.C.to represent the City with regard to the proposed rate increase of CenterPoint before local and state regulatory authorities and any court of law and authorizes counsel to employee such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee shall review the invoices of the lawyers and/or rate experts for reasonableness before submitting the invoices to CenterPoint for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from CenterPoint through the service of requests for information,which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 7. CenterPoint shall reimburse the City, through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related thereto,upon the presentation of invoices reviewed by the Steering Committee. Section 8. 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 9. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 13TH day of JANUARY,2020. o„a,wnnu,I,,,,, C') A160 F.p:�3 _a , /14-/t2-1.1.4.-P ? ,�%: i-- 7.:.:. Don Albanese,Mayor 2''RR••,o. /I1?,•r__ City of Nederland,Texas "himnintl,'''°\`` P . ii Ai . Ji ay Fergusot,City Clerks City of Nederland, APPROVED AS TO FORM AND LEGALITY: Jesse anic Ci 'Attorney City G Nee•rland,Texas