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.
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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.
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'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.
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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