August 8, 2016REGULAR MEETING OF THE CITY COUNCIL OF THE
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4:30 P_m_ August 8, 2016
1_ MEETING
The meeting was called to order at 4:30 p_m_ by Mayor Nugent at the Nederland City
Office Building, 207 N_ 12— Street, Nederland, Texas_ See attached For quorum.
The following statement was posted:
-F-URSIJANT TO SECTION 30.07, PENAL CODE CTRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
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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 Cou ncilmember Neal and seconded by Mayor Pro Tem Albanese
to approve the Consent Agenda Items a -c as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Cou ncilmem bars Austin, Neal, Albanese and Belaire_
Noes: None_
a_ Minutes — July 25, 2016 regular meeting
b. Consider action regarding a request from Tommy Olesky to utilize Ooornbos Park
and the Nederland Recreation Center for a cross country meet and the waiver of
associated fees.
c. Payments:
Bruce's General Construction - $79,065.00, Nederland Service Center
project
Schaumburg 8, Polk, Inc. - $4,400.04, South 5— Street Water Tower
Rehabilitation project
Schaumburg 8, Polk, Inc_ - $1,895.00, 2016 HMAC Rehabilitation project
Schaumburg 8k Polk, Inc. - $350.00, Renewal application of the Texas
Pollutant E>ischarge Elimination System Permit No_ 10483-002
Minutes Continued, August 8, 2016
4. REGULAR AGENDA
a. A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Neal to approve a request from Sunoco Partners Marketing & Terminals, L.P. for
an ad valorem tax abatement pending confirmation of terms of their Industrial
District Agreement. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to appoint Wathen, DeShong & Juncker auditing firm to perform the City's
audit for the Fiscal Year 2015-2016. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
c. Fiscal Year 2016-2017 Budget:
i. Chris Duque, City Manager, reported an adjustment will need to be made from
$0.591853 to $0.594 per $100 assessed taxable value to facilitate the creation of
an additional police officer position. The effective tax rate has been calculated as
$0.578403 and the rollback tax rate has been calculated as $0.610243. On
Tuesday, July 26th Jefferson County Appraisal District submitted the assessed
taxable value of $1,056,376,737 which is an increase of 3.41% or $34,836,155.
Mr. Duque recommended City Council consider adopting the tax rate of $0.594 per
$100 assessed valuation, which is $0.015597 or 2.7% greater than the effective
tax rate. He explained with nominal appraised value growth, the drop in oil prices
that continue to affect sale tax and industrial tax revenue, the costs associated
with police CBA and fire CBA, and the request from Police Chief Bush for an
additional police officer position; he feels it is necessary to nominally increase the
tax rate. The proposed budget is based on the increased tax rate. Since the
proposed tax rate ($0.594) is greater than the effective tax rate, two (2) public
hearings are necessary.
Budget Highlights include:
General Fund
• Balanced budget with revenues and expenditures totaling $10,210,600
Expenditures represent an increase of 2.26% or $225,740 over last year's
adopted budget. Approximately $221,950 will go toward all salary and
benefit cost increases which includes a 2% COLA for all regular, full-time
employees; new step increase on pay plan for police and fire; and salary
survey adjustments
• Creation of new police officer position increasing the department to 26
police officers.
2016/2017 street budget program budget will be $1.4 million
• $145,000 for street lights
• $38,000 for senior citizen center
• $15,000 for special programs to pay youth league reimbursements and city
events
$15,000 for miscellaneous equipment and supplies for Nederland Fire
Department
Water & Sewer Fund
• Balanced budget with revenue and expenditures equaling $4,480,215 which
is a decrease of 0.07% from last year's adopted budget.
Minutes Continued, August 8, 2016
Nominal water and sewer rate increase proposed to raise additional
water/sewer revenue; water consumption has steadily decreased
2% COLA for all regular, full-time employees and benefits costs increase to
include salary survey adjustments
• Additional Water Treatment Operator-trainee/Maintenance Worker position.
This will allow a selected employee to begin apprenticing to fast-track an
employee getting their Class C license
• $190,000 for Untreated Water
• $50,000 for Water Treatment Plant Equipment and exterior paint repairs to
Canal water tower
• City resuming operation of wastewater treatment plant following a cost
analysis study of privatization versus internal control. Creates 4 new
positions: WWTP supervisor, 2 WWTP operators, and a WWTP maintenance
worker
Solid Waste Fund
• Balanced budget with revenue and expenditures equaling $1,584,200 which
is an increase of 3.25 percent from last year's adopted budget
Nominal fee increase of $0.30/month to keep up with costs
• 2% COLA for all regular, full-time employees and benefits costs increase to
include salary survey adjustments
• City Shop budget moved from General Fund to Solid Waste since mechanic
primarily works on garbage and trash trucks
• Waste disposal costs remain low due to revised contract with BFI/Allied
Waste
• Green Waste Disposal costs increased due to expired chipping contract
$11,000 for contractual services for recycling drop-off center
EauiDment Replacement Funds
• General Fund: $175,000 for purchase of 3 police patrol units and 2 half -
ton pick-ups for Street Department
• Water & Sewer Fund: $82,000 for purchase of a water/sewer distribution
dump truck and a meter reading hand held device
• Solid Waste: $30,000 for purchase of a half -ton extended cab pickup truck
A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to approve Resolution No. 2016-10, submitting the City of Nederland Annual
Budget for the fiscal year beginning October 1, 2016 and ending September 30,
2017, and calling for a Public Hearing to be held on August 22, 2016 at 4:30 p.m.
at the 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 Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
ii. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve a proposed tax rate of 0.594 for the fiscal year beginning
October 1, 2016 and ending September 30, 2017. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
Minutes Continued, August 8, 2016
iii. A motion was made by Mayor Pro Tem Albanese and seconded by
Councilmember Austin to schedule tax rate adoption dates:
• Monday August 22nd at 4:30 p.m. at the Nederland City Hall (regular
meeting) - 1st Public Hearing
• Monday, August 29th at 4:30 p.m. at the Nederland City Hall (special
meeting) - 2nd Public Hearing
• Monday, September 12th at 4:30 p.m. at the Nederland City Hall (regular
meeting) - Adopt the tax Rate
iv. A motion was made by Councilmember Austin and seconded by Councilmember
Neal regarding the proposed tax rate and establishing the dates of August 22, 2016
at 4:30 p.m. and August 29, 2016 at 4:30 p.m. for public hearings. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
S. EXECUTIVE SESSION
The regular meeting was recessed at 4:56 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.087, Deliberation Regarding Economic Development Negotiations.
6. RECONVENE
The regular meeting was reconvened at 5:30 by Mayor Nugent. He announced the
Executive Session was held for informational purposes only and no action is necessary.
7. COMMUNICATION
City Manager's Report:
a. Construction Project Report: Steve Hamilton gave a brief construction report.
• Hot Mix Asphalt Overlay - testing on 17th Street base turned out good.
Contractor will begin work on 17th Street then head over to the Bob Henson
parking lot.
• Service Center - Slab is ready to pour and concrete will be available later
this week or next week. The delivery date has moved up to August 22nd for
the metal building.
• Bob Henson Building - a few items left on the punch -list on the inside.
• Bob Henson parking lot - work is being done in-house and there was an
accident last week that damaged the front of the building. An insurance
claim has been made.
b. Miscellaneous:
• Chamber of Commerce Coffee will be in the morning at the Rustic Door at
8:00 a.m.
• Nederland Education Foundation Breakfast will be August 16th. See Joni for
tickets.
Minutes Continued, August 8, 2016
S. ADJOURN
There being no further business a motion was made by Mayor Pro Tem Albanese and
seconded by Councilmember Neal to adjourn the meeting at 5:39 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
AIJVA�"Ia6�
R. ug t,M or
City of Nederl d, Texas
ATTEST:
AW��,0A—
Gay Ferg on, City CI
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
I NAME
( TITLE
{ PRESENT
R. A. Nugent
Mayor
Talmadge Austin
( Council Member- Ward I
` v
Billy Neal
Council Member- Ward II
' V
Don Albanese
Council Member- Ward III
Craig Belaire
I Council Member -Ward IV
I 1�
Chris Duque
City Manager
Gay Ferguson
City Clerk
Jesse Branick
City Attorney
I �%
`Cheryl Dowden
Director of Finance
Darrell Bush
Police Chief
T�rw l�o�v�iarj
f
�Ga�y-s
Fire Chief
Steve Hamilton
Director of Public Works
George Wheeler
Building Official
Victoria Klehn
Librarian
Holly Guidry
, Human Resources Director
(
Joni Underwood
Executive Secretary
Angela Fanette
Parks Director
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Auqust 8, 2016Date
ABSENT
CITY OF NEDERLAND
RESOLUTION 2016-10
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, 2016 AND ENDING SEPTEMBER 30, 2017.
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, 2016 and ending September 30, 2017; 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 22, 2015, to approve this budget in the proposed or amended form
in accordance with Article VII of the City Charter.
PASSED AND APPROVED this the 8'" day of August, 2016.
R.A. 146gEff, Mayor
City of Nederland, Texas
ATTEST:
G�'ay Fergus n, City Cler
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
of Nof 4 z�
Je a Bran c , ity Attorney
e Texas