November 13, 2023 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4.30 p.m. November 13, 2023
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:
"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 the Pledge of Allegiance was led by a member of the Veteran of
Foreign Wars.
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 Tem Sonnier and seconded by Councilmember Root to
approve the Consent Agenda Item "a thru c"as presented. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
a. Minutes—October 23,2023 regular meeting and October 17, 2023 special meeting.
b. October 2023 Departmental Reports
c. Consider action regarding a request from Nederland Little Dribblers to utilize the
Nederland Recreation Center gymnasium for games and waiver of associated fees.
4. REGULAR AGENDA
a. George Nami with the Texas Employer Support of the Guard and Reserve presented
Terry Morton and Holly Guidry with the "Patriot" award for their support of the
Guard and Reserve and the "Above and Beyond" award to the City.
b. A motion was made by Councilmember Root and seconded by Mayor Pro Tem
Sonnier to receive the quarterly Hotel Occupancy Tax Fund financial report from the
Nederland Chamber of Commerce. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
c. A motion was made by Councilmember Root and seconded by Councilmember
Guillot to approve Resolution No. 2023-23, ratifying the action of the Nederland
Economic Development Corporation Board of Directors related to the $30,000
incentive offered to PHO-09. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
Minutes continued, November 13, 2023
d. A motion was made by Councilmember Duplant and seconded by Mayor Pro Tern
Sonnier to approve Resolution No. 2023-24, casting all votes for candidate Bob
Thewman for the Board of Directors of the Jefferson County Appraisal District.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root,Sonnier, and Guillot.
NOES: None.
e. A motion was made by Mayor Pro Tern Sonnier and seconded by Councilmember
Guillot to authorize the purchase of a replacement gable shelter and concrete pad
at Doornbos Park via state-approved contract from Kraftsman in the amount of
$205,101.96. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
f. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Root to amend the professional services agreement with Griffith, Moseley, Johnson
& Associates, Inc. for grant administration and management services associated
with CDBG Disaster Recovery Funding, Hurricane Harvey DR-4332. MOTION
CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
g. A motion was made by Councilmember Guillot and seconded by Councilmember
Root to approve a work authorization with Soutex Surveyors & Engineering for
engineering services related to the 2023-2024 HMAC Street Program project in the
amount of$92,250. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
h. A motion was made by Councilmember Guillot and seconded by Councilmember
Root to approve a work authorization with Schaumburg & Polk, Inc. for engineering
services related to the 2023-2024 Concrete Pavement Rehabilitation project in the
amount of$91,800. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers.Duplant, Root, Sonnier, and Guillot.
NOES: None.
i. A motion was made by Councilmember Root and seconded by Councilmember
Duplant to reject and rebid the 2023 Water Inventory Items bid. MOTION
CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
j. A motion was made by Councilmember Root and seconded by Councilmember
Guillot to approve Ordinance No. 2023-25, suspending the effective date for an
additional 90 days beyond the effective date proposed by CenterPoint in connection
with its statement of intent to increase rate in the Texas division filed on October
30, 2023. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Duplant, Root, Sonnier, and Guillot.
NOES: None.
5. COMMUNICATION
City Manager's Report:
a. CITY OF NEDERLAND 101 - Municipal Government Academy
Chris Duque stated that the previous quarterly town hall meetings were held in an
attempt to provide information to the public. These meetings were held in person
Minutes continued, November 13, 2023
and posted on Facebook live. Participation was very low. This new platform, the
Municipal Government Academy, will be a 6-session course to address various
topics of the City. The maximum number of participants per class will be 20.
Topics discussed will be the city charter, permitting and zoning, finances,
government elections, public safety, public works, quality of life,
and economic development. The requirements for participation will be that you
live within our city, or own a business in our city, and are at least 18 years of age.
b. Miscellaneous:
• City offices will be closed next Thursday and Friday in observance of the
Thanksgiving holidays.
• The garbage route will be delayed by one day due to the holidays.
• Preparations for Christmas on the Avenue are currently underway.
• There will be a Chamber meeting next week regarding the Christmas parade.
• Chris Duque will be on vacation starting tomorrow afternoon until Saturday
evening. Cheryl Dowden will be in charge.
6. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 5:07 p.m.
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Don Albanese, Mayor
City of Nederland, Texas
ATTEST:
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Joni nderwood, City Clerk
City of Nederland, Texas
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CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
Don Albanese Mayor
Bret Duplant Council Member-Ward I /
Sylvia Root Council Member-Ward II I
Randy Sonnier Council Member-Ward III i/
David Guillot Council Member-Ward IV
Chris Duque City Manager I'
Joni Underwood City Clerk ✓
Sara /Iowa
nes- City Attorney
Hca.-the(' .51vcker - --✓
Cheryl Dowden Director of Finance /
Gary Porter Police Chief /
Terry Morton Fire Chief v
Robert Woods Director of Public Works
George Wheeler Building Official T
Molli Hall Librarian v/
Holly Guidry Human Resources Director
Toby Latiolais Parks Director
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Ion Albanese, Mayor
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Joni Und ood, City Clerk
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Date
RESOLUTION 2023-23
A RESOLUTION OF THE CITY OF NEDERLAND
RATIFYING THE ACTION OF TUE NEDERLAND
ECONOMIC DEVELOPMENT CORPORATION.
WHEREAS,the present and prospective right to gainful employment and general welfare
of the people of Nederland require as a public purpose the promotion and development of new and
expanded business enterprises;and
WHEREAS, the existence, development, and expansion of business, commerce, and
industry are essential to the economic growth of Nederland and to the full employments,welfare,
and prosperity of its citizens;and
WHEREAS, the means and measures authorized by the Texas Legislature and the
assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic
development are in the public interest and serve a public purpose in promoting the welfare of the
citizens of the City economically by the securing and retaining of business enterprises and the
resulting maintenance of a higher level of employment,economic activity,and stability;and
WHEREAS, the citizens of the City of Nederland provided for the creation of the
Nederland Economic Development Corporation by popular vote in a duly authorized election to
serve the public purposes herein described;and
WHEREAS, the Nederland Economic Development Corporation is authorized and
empowered under applicable state law, its charter,bylaws and by board approval,to aid in the
development of business enterprises by offering incentives to prospective new and expanding
businesses.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND,TEXAS:
THAT the action of the Board of Directors of the Nederland Economic Development
Corporation("Board")relating to project costs associated with PHO-09 in an aggregate maximum
amount of not more than Thirty Thousand dollars($30,000.00),in accordance with the terms and
conditions as prescribed by the Board,is hereby ratified.
PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL
OF THE CITY OF NEDERLAND,TEXAS this 13th day of November , 2023 at which
meeting a quorum was present and voting.
'Don Albanese,Mayor
City of Nederland,Texas
ATTEST: .,,- ,�.,
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Joni derwood,City Clerk "���,,,,,,,,,il����
City of Nederland,Texas ��``�� NEo f",,,
APPROVED AS TO FORM AND LEGALITY: ''�rin V% S
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Chris Leavins,City Attorney 'o�
City of Nederland,Texas J ;„1,"Q� ]EF�� �\
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PASSED AND APPROVED ON THE SECOND READING BY THE CITY
COUNCIL OF THE CITY OF NEDERLAND,TEXAS this day of _,2023 at
which meeting a quorum was present and voting.
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
Joni Underwood,City Clerk
City of Nederland,Texas
APPROVED AS TO FORM AND LEGALITY:
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Chris Leavins,CityAttorney --'''/1/4;1
'OF]EPEE'�`
City of Nederland, exas � \
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CITY OF NEDERLAND
RESOLUTION 2023-24
WHEREAS,Senate Bill No.621,Acts of the 66th Texas Legislature, Chapter 841,
1979, provides for establishing an Appraisal District which would concern the City of
Nederland; and
WHEREAS,the Act provides that the Appraisal District shall be governed by a Board of
Directors to be chosen by the taxing units within the district by a voting method set out in the
Act;and
WHEREAS,the Act provides for nomination of candidates for the Board by the taxing
units within the Appraisal District;and
WHEREAS,the City of Nederland is desirous of having representation on the Board
of Directors of the Appraisal District;and
WHEREAS,the Act entitles each taxing unit to vote and determine its votes by
resolution submitted to the Jefferson County Appraisal District before December 15,2023.
NOW,THEREFORE, BE IT RESOLVED,that the City Council of the City of
Nederland, in compliance with Senate Bill No.621, hereby casts its entire vote as follows:
Tim Funchess
Eugene Landry
Kenneth Marks
Lauren Williams Mason
Robert Thewman 53
SO RESOLVED,this the 13th day of November,2023.
i1, IV.glA
Don Albanese,Mayor
City of Nederland,Texas
ATTEST:
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Joni derwood, City Clerk
City of Nederland,Texas
AP'ROVED AS TO FORM AND LEGALITY: ooli"""iiinw,,,
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Chris Leavins, ity Attorney ==,--)•47 ,..4_,01E-5-::::
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City of Nederland,Texas P,,�1✓•��;`
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ORDINANCE NO. 2023-25
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
IN THE TEXAS DIVISION, FILED ON OCTOBER
30, 2023; 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 October 30, 2023, CenterPoint Energy
Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint
Energy Texas Gas ("CenterPoint" or "Company") file a Statement of
Intent with the City of Nederland "City" to increase gas rates in its
Houston, Texas Coast, South Texas, and Beaumont/East Texas Division
Service Areas by $37.4 million per year, effective December 4, 2023;
and
WHEREAS, CenterPoint's statement of intent includes a request
to consolidate the Houston, Texas Coast, South Texas, and
Beaumont/East Texas Divisions into a single Texas District; 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 Texas Utilities Code § 103.001; and
WHEREAS, Texas Utilities Code § 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
Texas Utilities Code § 103.022; and
WHEREAS, Texas Utilities Code § 104.107(a)(1) authorizes a
local regulatory authority to suspend a utility's proposed rate change for
not longer than 90 days after the date the rate change would otherwise
be effective; 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
March 3, 2024 to allow the City's rate experts sufficient time to
determine the merits of CenterPoint's proposed rates; and
WHEREAS, to maximize the efficient use of resources and
expertise in reviewing, analyzing, and investigating CenterPoint's $37.4
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 March 3, 2024, 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 CenterPoint Beaumont/East Texas
Division Service Area Steering Committee with the
understanding that the steering committee will
provide additional 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 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 CenterPoint for
reimbursement.
Section 6. The City's legal representatives shall have the right to
obtain additional information from CenterPoint
through the service of request 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 reviewing by the Steering
Committee.
Section 8. 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.
PASSED AND APPROVED this 13TH day of NOVEMBER, 2023.
POW
banese,Mayor
City of Nederland,Texas
ATTEST:
Glai' lay tdatAb/
Joni nderwood,City Clerk
City of Nederland,Texas
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APPROVED AS TO FORM AND LEGALITY: ��`��OF NFpF�
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Chris Leavins,City Attorney .,
City of Nederland,Texas ,,, OF..1E?SG..``
''1nn,,,i II t00
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275•Austin,Texas 78738•512/322-0019
November 8,2023
Via E-Mail
Mr.Richard G.Baker Mr.Ronald D.Stutes
City Attorney—City of Anahuac City Attorney—City of Arp
P.O.Box 10066 Wilson Law Firm
Liberty,Texas 77575 909 ESE Loop 323,Suite 400
Tyler,Texas 75701
Ms.Tracey Pritchett Ms.Sharae Reed
City Secretary—City of Arp City Attorney—City of Beaumont
109 W.Longview P.O.Box 3827
Arp,TX,75750 Beaumont,Texas 77704
Mr.Kenneth R.Williams Mr.Paul Fukuda
City Manager—City of Beaumont City Attorney—City of Bridge City
P.O.Box 3827 260 Rachal
Beaumont,Texas 77704 Post Office Box 846
Bridge City,Texas 77611
Mr.Leonard Schneider Mr.Aron Kulhavy
City Attorney—City of Huntsville City Manager—City of Huntsville
City Attorney—City of Riverside 1212 Ave.M
Liles Parker PLLC Huntsville,Texas 77340
2261 Northpark Dr.,Suite 445
Kingwood,TX 77339
Mr.Brandon Davis Mr.Tom Warner
City Attorney—City of Liberty City Manager—City of Liberty
1517 Trinity 1829 Sam Houston
Liberty,TX 77575 Liberty,Texas 77575
Mr.Jesse Branick Mr.Christopher Duque
City Attorney—City of Nederland City Manager—City of Nederland
221 Hwy.69 South,Suite 100 P.O.Box 967
Nederland,Texas 77627 Nederland,Texas 77627
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION
Mr.Guy Goodson Mr.Mike Kunst
City Attorney—City of Orange City Manager—City of Orange
GERMER PLLC 812 North 16t Street
550 Fannin,Suite 400 P.O.Box 520
Beaumont,Texas 77701 Orange,Texas 77630
Ms.Val Tizeno Mr.Ronald Burton
City Attorney—City of Port Arthur City Manager—City of Port Arthur
P.O.Box 1089 P.O.Box 1089
Port Arthur,Texas 77641 Port Arthur,Texas 77641
Mr.Solomon Freimuth Ms.DeeAnn Zimmerman
City Attorney—City of Silsbee City Manager—City of Silsbee
P.O.Box 186 105 South 3'd Street
Port Neches,Texas 77651 Silsbee,Texas 77656
Ms.Stormy Perez Mr.Alex Stelly
City Secretary—City of Riverside City Attorney—City of Sour Lake
P.O.Box 623 2615 Calder Ave.,Ste. 1070
Riverside,TX 77637 Beaumont,Texas 77702
Mr.Jack Provost
City Manager—City of Sour Lake
625 Hwy 105 W
Sour Lake,Texas 77659
Re: 2023 Statement of Intent of CenterPoint Energy Resources Corp. d/b/a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas("CenterPoint"
or"Company")to Increase Rates in the Texas Division
Dear Cities:
As you may know,CenterPoint recently filed an application with your City for an increase
in gas service rates.The Company's application also includes a request to consolidate its Houston,
Texas Coast,South Texas,and Beaumont/East Texas Divisions into a single Texas Division.The
total increase requested for the combined divisions is$37.4 million annually,representing a 5.8%
increase in non-gas revenues.However,if the proposed consolidation is approved, customers in
the Beaumont/East Texas Division service area are expected to experience a decrease in their
monthly bills. If approved,the average decrease per residential customer ranges from -$2.12 to
-$5.08 monthly depending on location.
CenterPoint has proposed that the gas service rate increase become effective on December
4, 2023.As such,the City must take action to approve, deny,modify,or suspend the rate
increase request by December 4,2023.We recommend that the City suspend the effective date
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 2
S I " -
of the proposed rate increase to permit time to review CenterPoint's request and make an informed
recommendation to the City.
We are providing a proposed ordinance that would suspend the effective date proposed by
CenterPoint to March 3,2024.Pursuant to Gas Utility Regulatory Act,Tex.Util.Code§ 104.107,
municipal regulatory authorities may suspend the rate change proposed by a utility up to 90 days
from the effective date.Once again,this proposed ordinance must be passed by December 4,
2023.Please forward copies of passed ordinances to us at danlawtonlawfirm@gmail.com and
molly@m ayhallvandervoort.com.
The proposed ordinance also authorizes the City to join with the Steering Committee of
Cities to retain legal counsel and rate consultants,participate in the gas service rate proceeding
before the Railroad Commission and any courts,and to seek reimbursement for rate case expenses
from CenterPoint.
Once we have had an opportunity to review the case and supporting documentation,we
will provide more information on the current rate increase request and a recommendation on the
actions to be taken.
If you have any questions or concerns,please do not hesitate to call.
Sincerely,
/s/Daniel J.Lawton
CONFIDENTIAL/ATTORNEY-CLIENT COMMUNICATION 3