January 8, 2024 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. January 8, 2024
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 Pledge of Allegiance was led by Mayor Pro Tern Sonnier.
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 Mayor Pro Tem Sonnier to
approve the Consent Agenda Item "a" as presented. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
a. Minutes—December 18,2023 regular meeting
4. REGULAR AGENDA
a. Mayor Albanese presented a proclamation recognizing Elijah Champion for his act of
kindness in November 2023.
b. A Motion was made by Councilmember Root and seconded by Councilmember Guillot
to reschedule the Joint Public Hearing for the purpose of receiving comments
regarding the Food Truck regulations revisions proposed by the Food Truck
Committee on Monday, February 12th at 4:30PM at Nederland City Hall. MOTION
CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
c. A motion was made by Councilmember Guillot and seconded by Mayor Pro Tem
Sonnier to authorize the purchase of a truck for the wastewater division of the
Public Works Department. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
Minutes continued, January 8, 2024
d. A motion was made by Councilmember Root and seconded by Councilmember
Guillot to award bid to Core & Main for the Water Inventory Items in the amount of
$56,916.82. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
e. A motion was made by Mayor Pro Tem Sonnier and seconded by Councilmember
Root to approve Resolution No. 2024-01, authorizing account signatories for the
City's TexPool Investment Account. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
f. A motion was made by Councilmember Root and seconded by Councilmember
Guillot to approve Ordinance No. 2024-01, authorizing participation with other
Entergy service area cities in matters concerning Entergy Texas, Inc. at the Public
Utility Commission of Texas in 2024. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Root, Sonnier, and Guillot.
NOES: None.
ABSENT: Bret Duplant
5. COMMUNICATION
City Manager's Report:
a. Miscellaneous:
• The City will be closed for Martin Luther King, Jr. Day on January 15th. Garbage
pickup will be delayed one day that week.
• The Chamber Coffee is tomorrow morning at The Golden Cup.
• Next Tuesday, Jan. 16th, is the Chamber's Installation Banquet.
• The Parks Department will be adding indoor pickleball and an open walking
program to their scheduled activities.
• The Library has started promoting overall City activities on a new City calendar.
b. Water Leaks update:
• Rob Woods, Director of Public Works, stated that the City has been having 1-2
small leaks a day. The contractors have helped the City get caught up on leak
repairs and the additional rain has helped with ground settling.
6. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 4:47 p.m.
irk
n Albanese, Mayor
City of Nederland, Texas
ATTEST:
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Joni U •erwood, City Clerk avoleAtoryi
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City of ederland, Texas kap} �� 4
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 ✓
Randy Sonnier Council Member—Ward III
David Guillot Council Member—Ward IV t/
Chris Duque City Manager ✓
Joni Underwood City Clerk
Chris Leavins City Attorney
-ea- r S-jvc4e( / — _--�
-Cheryl Dowden Director of Finance — /
Gary Porter Police Chief ✓
/ via
Terry Morton Fire Chief V 7001
Robert Woods Director of Public Works
George Wheeler Building Official ' /
Molli Hall Librarian 1/
_Holly Guidry Human Resources Director
Toby Latiolais Parks Director
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Don Albanese, ayor
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Joni Unde rod, City Clerk
01-08-24
Date
RESOLUTION NO. 2024-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS, AUTHORIZING ACCOUNT
SIGNERS FOR THE CITY OF NEDERLAND'S
TEXPOOL INVESTMENT ACCOUNT
WHEREAS,the City of Nederland is a local government of the State of Texas and is empowered to
delegate to a public funds investment pool the authority to invest funds and to act as custodian of
investments purchased with local investment funds;and
WHEREAS,it is in the best interest of the City of Nederland to invest local funds in investments
that provide for the preservation and safety of principal,liquidity,and yield consistent with the Public
Funds Investment Act;and
WHEREAS, the Texas Local Government Investment Pool ("Texpool/Texpool Prime"), a public
funds investment pool,were created on behalf of entities whose investment objective in order of priority
are preservation and safety of principal,liquidity,and yield consistent with the Public Funds Investment
Act.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS,
THAT:
Section 1. The City's investment officers (city manager and finance director) are authorized
representatives of the participant and are each hereby authorized to transmit funds for
investment in Texpool/Texpool Prime and are each further authorized to withdraw funds from
time to time,to issue letters of instruction, and to take all other actions deemed necessary or
appropriate for the investment of local funds.
Section 2.An authorized representative of the City may be deleted by a written instrument signed
by two remaining authorized representatives provided that the deleted authorized representative
(1)is assigned job duties that no longer require access to the participant's Texpool/Texpool Prime
account or(2)is no longer employed by the City.
Section 3. The City may by amending the resolution add an authorized representative provided
the additional authorized representative is an officer,employee,or agent of the City.
Section 4. The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Open Meetings Act,Texas Government Code,Chapter 551.
Section 5. This resolution shall become effective from and after its passage.
PASSED AND APPROVED by the Nederland City Council this the 8TH day of January 2024.
P°7( afieS'ea-a--t'
Don Albanese, Mayor
City of Nederland,Texas
ATTEST:
Joni nderwood, City Clerk \�,o��""""inu,„,,,
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APPROVED A TO FORM AND LEGALITY: ?�:( �9•��l'';
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Ch '- eavins, City Attorney �%, Op• •JEF�� `,
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ORDINANCE NO. 2024-01
AN ORDINANCE OF THE CITY COUNCIL OF
NEDERLAND, TEXAS, AUTHORIZING
PARTICIPATION WITH OTHER ENTERGY
SERVICE AREA CITIES IN MATTERS
CONCERNING ENTERGY TEXAS, INC. AT THE
PUBLIC UTILITY COMMISSION OF TEXAS IN
2024; AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZING
THE CITY'S PARTICIPATION TO THE FULL
EXTENT PERMITTED BY LAW AT THE PUBLIC
UTILITY COMMISSION OF TEXAS; FINDING
THAT THE MEETING COMPLIES WITH THE
OPEN MEETINGS ACT; AND DECLARING AN
EFFECTIVE DATE
WHEREAS, Cities have exclusive original jurisdiction over rates,
operations, and services of an electric utility in areas in the municipality
pursuant to Tex. Util. Code § 33.001; and
WHEREAS, Cities have standing in each case before the Public Utility
Commission of Texas that relates to an electric utility providing service in the
municipality pursuant to Tex. Util. Code § 33.025; and
WHEREAS, Entergy Texas, Inc. ("ETI" or "Company") is expected to
litigate rate change requests in various proceedings before the Public Utility
Commission of Texas ("Commission") or before municipalities in 2024, which
may include (1) a base rate case, (2) rate proceedings or cost adjustments
such as a transmission cost recovery rider, a distribution cost recovery rider,
generation cost recovery rider,energy efficiency cost recovery factor, or storm
restoration cost or offset true-ups, and (3) various fuel cost refunds or
surcharges and reconciliations; and
WHEREAS, ETI is scheduled to file fuel factor proceedings at the
Commission in February and August 2024, and may file other fuel proceedings
to reconcile, refund or surcharge fuel charges; and
WHEREAS, ETI is expected to file its annual proceeding with the
Commission to recover costs incurred in association with its Energy Efficiency
Plan as well as reconcile past costs; and
WHEREAS, Cities have the statutory right to set fair and reasonable
rates for both the Company and customers within Cities; and
WHEREAS, Cities are entitled to reimbursement by the utility of their
reasonable rate case expenses to participate in cases that are deemed rate
proceedings pursuant to Tex. Util. Code § 33.023.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND,TEXAS, THAT:
SECTION 1. The City of Nederland shall participate with other Cities
to intervene in ETI's various rate filings related to the
various fuel cost surcharges and reconciliations, any
interim or incremental surcharge proceedings or
surcharge adjustments, and for any base rate adjustment
proceedings or cost of service adjustments on file with
the Commission or with municipalities in 2024.
1
SECTION 2. The City of Nederland employs the Lawton Law Firm P.C.
to represent the City regarding the ETI rate matters
before local regulatory authorities and the Commission
and authorizes counsel to employ rate experts as are
recommended by the Cities' Steering Committee to
intervene in fuel or rate related proceedings at the
Commission concerning ETI's rates charged to Texas
customers.
SECTION 3. All such actions shall be taken pursuant to the direction
of the Cities' Steering Committee. Cities' Steering
Committee shall have authority to retain rate consultants
and lawyers. Cities' Steering Committee shall direct the
action of Cities'representatives in the above proceedings.
The Steering Committee is directed to obtain
reimbursement from ETI of all reasonable expenses
associated with participation in said proceedings.
SECTION 4. 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 5. This Ordinance shall be effective from and after the date
of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of
Nederland,Texas, this 8TH day of JANUARY, 2024.
Don Albanese, Mayor
City of Nederland, Texas
ATTEST:
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Joni 1 nderwood, City Clerks �tttED�n''''
City of Nederland, Texas :�°0.. •••- .
APPROVE' AS TO FORM AND LEGALITY: s V f •
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OG7'N UP
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Chris Leav'•-, City Attorney
City of Nederland,Texas
2
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275•Austin,Texas 78738•512/322-0019
December 14,2023
Via e-mail
Mr.Richard G.Baker Ms.Sharae Reed
City Attorney—City of Anahuac City Attorney—City of Beaumont
P.O.Box 10066 P.O.Box 3827
Liberty,Texas 77575 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 City Attorney—City of Pine Forest
Beaumont,Texas 77704 260 Rachal
Post Office Box 846
Bridge City,Texas 77611
Mr.Scott Swigert Ms.Mary Ann Powell
City Manager—City of Cleveland City Attorney—City of Cleveland
907 E.Houston Wortham Tower,Suite 600
Cleveland,Texas 77327 2727 Allen Parkway
Houston,Texas 77019
Ms.Alice Rios Mr.Gary Scott
City Secretary—City of Cleveland City Attorney—City of Conroe
907 E.Houston P.O.Box 3066
Cleveland,Texas 77327 Conroe,Texas 77305
Mayor Nyla Akin Dalhaus Amy L.Wade
City of Cut and Shoot City Secretary—City of Cut and Shoot
P.O.Box 7364 P.O.Box 7364
Cut and Shoot,Texas 77306 Cut and Shoot,Texas 77306
Mayor Caroline Wadzeck Ms.Kimberly Judge
City of Dayton City Manager—City of Dayton
117 Cook Street 117 Cook Street
Dayton,Texas 77535 Dayton,Texas 77535
Attorney-Client Privileged Communication 1
Mr.Brandon Monk Mr.D.E.Sosa
City Attorney—City of Groves City Manager—City of Groves
4875 Parker Drive P.O.Box 3286
Beaumont,TX 77705 Port Arthur,Texas 77643
Ms.Tina Paez Ms.Yushan Chang
City of Houston Administration&Regulatory City of Houston Legal Department
Affairs Department(ARA) P.O.Box 368,Houston,Texas 77001-0368
611 Walker, 13 th Floor City Hall Annex,4th Floor
Houston,Texas 77002 900 Bagby
Houston,Texas 77002
Mr.Leonard Schneider Mr.Aron Kulhavy
City Attorney—City of Huntsville City Manager—City of Huntsville
City Attorney—City of Riverside 1212 Ave.M
City Attorney—City of Splendora Huntsville,Texas 77340
Liles Parker PLLC
2261 Northpark Dr.,Suite 445
Kingwood,TX 77339
Mr.Brandon Davis Mr.Tom Warner
City Attorney—City of Liberty City Manager—City of Liberty
City Attorney—City of Dayton 1829 Sam Houston
1517 Trinity Liberty,Texas 77575
Liberty,Texas 77575
Mr.Alan P.Petrov Mr.Richard Tramm
City Attorney—City of Montgomery City Administrator—City of Montgomery
Johnson Petrov LLP 101 Old Plantersville Road
2929 Allen Parkway,Suite 3150 Montgomery,.TX 77316
Houston,Texas 77019
Mr.Cary Bovey Mr.Jason Weeks
City Attorney—City of Navasota City Manager—City of Navasota
Bovey&Cochran,PLLC 200 E.McAlpine Street
2251 Double Creek Dr.,Suite 204 Navasota,Texas 77868
Round Rock,Texas 78664
Mr.Christopher Duque Mr.Chris Leavins
City Manager—City of Nederland City Attorney—City of Nederland
P.O.Box 967 City Attorney—City of Vidor
Nederland,Texas 77627 City Attorney—City of West Orange
P.O.Box 4915
Beaumont,Texas 77704-4915
Attorney-Client Privileged Communication 2
Ms.Elizabeth Harrell Ms.Heather Neeley
City Secretary—City of Oak Ridge North City Manager—City of Oak Ridge North
27424 Robinson Road 27424 Robinson Road
Oak Ridge North,Texas 77385 Oak Ridge North,Texas 77385
Mr.Guy Goodson Mr.Mike Kunst
City Attorney—City of Orange City Manager—City of Orange
GERMER PLLC 812 North 16th Street
550 Fannin,Suite 400 P.O.Box 520
Beaumont,Texas 77701 Orange,Texas 77630
Mr.Rodney Price Mr.Jerry Hood
City Attorney—City of Rose City City Administrator—City of Pinehurst
P.O.Box 310 2497 Martin Luther King Jr.Drive
Vidor,Texas 77670 Orange,Texas 77630
Mr.Tommy Gunn Ms.Val Tizeno
City Attorney—City of Pinehurst City Attorney—City of Port Arthur
202 S.Border P.O.Box 1089
Orange,Texas 77630 Port Arthur,Texas 77641
Mr.Ronald Burton Mr.Lance Bradley
City Manager—City of Port Arthur City Attorney—City of Port Neches
P.O.Box 1089 P.O.Box 1148
Port Arthur,Texas 77641 Port Neches,Texas 77651
Mr.Andre'Wimer Mr.Larry L.Foerster
City Manager—City of Port Neches City Attorney—City of Roman Forest
P.O.Box 758 City Attorney—City of Panorama Village
Port Neches,Texas 77651 Darden,Fowler and Creighton,LLP
414 West Phillips,Suite 100
Conroe,Texas 77301
Ms.Kathie Reyer Mr.Solomon Freimuth
City Administrator—City of Shenandoah City Attorney—City of Silsbee
29955 IH-45 N. P.O.Box 186
Shenandoah,Texas 77381 Port Neches,Texas 77651
Ms.DeeAnn Zimmerman Mr.Alex Stelly
City Manager—City of Silsbee City Attorney—City of Sour Lake
105 South 3`I Street 2615 Calder Ave.,Ste. 1070
Silsbee,Texas 77656 Beaumont,Texas 77702
Attorney-Client Privileged Communication 3
I
Mr.Jack Provost Mayor Dorothy Welch
City Manager—City of Sour Lake City Attorney Leonard Schneider
625 Hwy 105 W City of Splendora
Sour Lake,Texas 77959 P.O.Box 1087
Splendora,Texas 77372
Mr.Robbie Hood Mayor Randy Branch
City Manager-City of Vidor Mayor—City of West Orange
1395 N.Main St. 2700 Western Avenue
Vidor,Texas 77662-3726 West Orange,TX 77630
Mr.Michael S.Stelly Ms.Marissa Quintanilla
City of West Orange,Texas City Secretary—City of Willis
2700 Austin Avenue 200 N.Bell
West Orange,TX 77630 Willis,Texas 77378
Re: Annual Ordinance Authorizing Municipal Participation in
Regulatory Proceedings of Entergv Texas,Inc.in 2024
Dear Steering Committee of Cities located in Entergy Texas,Inc.'s Service Territory:
It is once again time to authorize municipal participation in regulatory rate proceedings
involving Entergy Texas, Inc. ("ETI" or"Company") before the Public Utility Commission of
Texas("PUCT"or"Commission").Attached is a proposed Ordinance for your consideration
to authorize participation in rate proceedings in 2024. Please forward the completed
Ordinance to us by email at danlawtonlawfirm(@,gmail.com and
molly(a,mayhallvandervoort.com.
The Steering Committee of Cities ("Cities") continues to play a crucial role in limiting
ETI's various requested rate increases to reasonable revenue levels.ETI filed a base rate case in
2022 which was resolved by settlement in April 2023.ETI originally requested a$131.4 million
or 11.20%base rate increase.The parties' agreement authorized a$54 million or 4.6%increase
over current base rates,excluding fuel costs.Cities' efforts contributed significantly to reducing
the Company's initial proposed increase by 58.90%.Many of our consultants'recommendations
were reflected in the settlement terms,including a decrease to ETI's return on equity,adjustments
to the Company's depreciation rates, and longer amortization periods for recovery of certain
expenses. Cities also supported a reasonable allocation of the revenue requirement between the
various customer classes and a lower monthly fixed customer charge for residential customers.
The Company also initiated proceedings in late-2022 to reconcile fuel and purchased power
expenses incurred between April 1,2019 and March 31,2022.In these proceedings,ETI requested
that the Commission approve an under-recovery balance of$103.1 million. After Cities raised
issues related to the Company's proposal,the case settled with the Company agreeing to reduce
its under-recovery balance to$99.6 million.No other party raised any issues with the Company's
application.
Attorney-Client Privileged Communication 4
Looking forward to 2024, we anticipate that the Company may file Transmission Cost
Recovery Factor and Distribution Cost Recovery Factor applications for interim cost recovery of
investments made to its transmission and distribution systems.The Company is also expected to
file its annual application to amend its Energy Efficiency Cost Recovery Factor and its semi-annual
Fuel Factor rate adjustments in February and August 2024.
The continued support of each of the Cities in the Steering Committee has been
instrumental in the successful regulation of ETI and in maintaining reasonable rates for customers
within the Cities. We look forward to each City's continued participation with the Steering
Committee in the regulatory process.Please forward completed Ordinances to us by email at
danlawtonlawfirmAgmail.com and mollyna mayhallvandervoort.com.
If you have any questions or concerns,please call.
Sincerely,
104 VIAPIlifet
For Daniel J.Lawton
•
Attorney-Client Privileged Communication 5