August 14, 2017 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 P.m_ August 14, 2017
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12t. 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 HANUGUN), 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 Neal and seconded by Councilmember Austin
to approve the Consent Agenda Items a-b as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire_
Noes: None.
Absent: Mayor Pro Tem Albanese_
a. Minutes — July 24, 2017 regular meeting
b. Consider action regarding a request from Nederland Independent School District
to utilize the Nederland swimming pool for Nederland football team's end of camp
swim day.
4. REGULAR AGENDA
a. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to accept the Quarterly Investment Report from the Finance Department.
MOTION CARRIED_
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire_
Noes: None.
Absent: Mayor Pro Tem Albanese.
r►
Minutes Continued, August 14, 2017
b. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve an ad valorem tax abatement request from Sunoco Partners
Marketing & Terminals, L.P. for Tank 1560 tank line, $225,000; third booster-
rotation manifold, $2,500,000; and sweet manifold, $14,700,000. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
Absent: Mayor Pro Tem Albanese.
c. A motion was made by Councilmember Neal and seconded by Mayor Nugent to
approve an agreement between the City of Nederland and Phillips 66 Gulf Coast
Properties, LLC. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
Absent: Mayor Pro Tern Albanese.
d. A motion was made by Councilmember Austin and seconded by Mayor Nugent to
approve an ad valorem tax abatement request from Phillips 66 for 4-350,000 barrel
tanks and associated infrastructure, $75,000,000; and 2-booster pumps,
$10,000,000. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, and Belaire.
Noes: None.
Absent: Mayor Pro Tern Albanese.
e. Chris Duque, City Manager, reported Mr. Waleed Kahn was instructed to attend
today's meeting to provide an update on his plans to resolve the previously noted
issues at 2423 Nederland Avenue. Mr. Duque recommended discussing in
executive session prior to taking any action.
A motion was made by Councilmember Neal and seconded by Councilmember
Austin to table action on property located at 2423 Nederland Avenue until after
executive session. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Belaire.
Noes: None.
Absent: Mayor Pro Tern Albanese.
f. Fiscal Year 2017-2018 Budget:
i. Chris Duque, City Manager, reported there have been no changes to the
preliminary budget which was presented at the budget workshop held on July 11,
2017. A public hearing must be scheduled to solicit public input/comments
regarding the budget. A copy of the proposed budget is available in the City Clerk's
office and will be posted on the city's website. Mr. Duque recommended approval
of Resolution No. 2017-11 setting a public hearing date of Monday, August 28,
2017 at 4:30 p.m. at the Nederland City Hall.
Budget Highlights include:
General Fund
• Balanced budget by adjusting tax rate from $0.594 to $0.609578 per $100
assessed taxable value (an increase of $0.015578); the incremental tax
rate increase necessary to fund the Nederland Avenue project certificates
of obligation (payments made via debt service fund)
• Balanced budget with revenues and expenditures totaling $10,481,150
Minutes Continued, August 14, 2017
• Expenditures represent an increase of 2.65% or $270,550 over last year's
adopted budget. Significant portion toward salary and benefits increase,
which included a 2% COLA for all full-time employees, steps for employees
eligible for a step, steps for police officers and firefighters covered by
collective bargaining agreements, as well as $31,652 increase in transfer in
dispatch
• 2017/2018 street budget program budget will be $1.276 million
• $148,000 for street lights
• $42,000 for senior citizen center
• $13,000 for special programs to pay youth league reimbursements and city
events
• $15,000 for miscellaneous equipment and supplies for Nederland Fire
Department
• $2,000 for Spay & Neuter program and $3,000 for reline population control
services
Water & Sewer Fund
• Balanced budget with revenue and expenditures equaling $4,453,989 which
is a decrease of 0.5857 percent from last year's adopted budget.
• Water and sewer rate increase proposed to raise additional water/sewer
revenue for planned main sewer line repair/improvements project ($10M);
water consumption has steadily decreased
• 2% COLA for all regular, full-time employees; steps for hourly employees
affected by the 2016 salary survey on October 1, 2017; steps for hourly
employees not affected by salary survey on April 1, 2018; steps for salaried
employees not affected by salary survey on their anniversary date;
proposed adjustments to certificate pay effective April 1, 2018
• Additional Water Treatment Operator-trainee/Maintenance Worker position
started in FY 16-17 will promote to operator position; continue to fund 4th
position in WWTP as Maintenance Worker
• $200,000 for Untreated Water
• $25,000 for Water Treatment Plant Equipment and $25,000 for WWTP
Equipment - plant repairs/upgrades that may be necessary during fiscal
year
• WWTP budget adjusted to reflect actual costs; lab testing fees increase due
to TCEQ mandate
• $100,000 for water and sewer mains and $20,000 for water distribution
lines
Solid Waste Fund
• Balanced budget with revenue and expenditures equaling $1,584,800 which
is an increase of 0.0189 percent from last year's adopted budget
• No fee increase proposed this year
• 2% COLA for all regular, full-time employees; steps for employees not
affected by salary survey on anniversary date; steps for employees affected
by salary survey on April 1, 2018
• Waste disposal costs will gradually increase due to revised contract with
BFI/Allied Waste
• Green Waste Disposal costs increased due to new chipping contract
• $11,000 for contractual services for recycling drop-off center
Minutes Continued, August 14, 2017
Equipment Replacement Funds
• General Fund: $100,000 for purchase of 2 police patrol units, a truck for
the Fire Chief, and a trailer for the Street Department
• Water & Sewer Fund: $40,000 for purchase of a water/sewer distribution
Kubota mini excavator
• Solid Waste: $320,000 for purchase of a garbage truck
A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve Resolution No. 2017-11, submitting the City of Nederland Annual
Budget for the fiscal year beginning October 1, 2017 and ending September 30,
2018, and calling for a Public Hearing to be held on August 28, 2017 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, and Belaire.
Noes: None.
Absent: Mayor Pro Tern Albanese.
Mayor Pro Tern Albanese arrived at the meeting at 4:47 p.m.
ii. Chris Duque, City Manager, stated Nederland has a current tax rate of $0.594
per $100 assessed value which is the lowest tax rate among the mid and south-
county cities. This year the effective tax rate has been calculated as $0.582058
and the rollback tax rate has been calculated as $0.632355. On Thursday, July
20th, JCAD submitted the assessed taxable value of $1,086,947,865 which is an
increase of $30,574,128 or 2.89%. Mr. Duque recommended the city council
consider adopting a tax rate of $0.609578 per $100 assessed valuation, which is
$0.02752 or 4.7% greater than the effective tax rate. He felt this increase was
necessary due to nominal appraised value growth, the drop in oil prices that
continue to affect the local economy impacting sales tax revenue and industrial tax
revenue, increased personnel and contractual costs, and the Nederland Avenue
project debt. The proposed tax rate was calculated by carrying forward the current
maintenance and operations tax rate ($0.390828) and adding the new debt service
tax rate ($0.218750) that reflects the Nederland Avenue certificates of obligation.
The proposed budget is based on the increased tax rate. Two public hearings are
necessary since the proposed tax rate of $0.609578 is greater than the effective
tax rate.
A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve a proposed tax rate of 0.609578 per $100 assessed valuation
for the fiscal year beginning October 1, 2017 and ending September 30, 2018.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to schedule tax rate adoption dates:
• Monday August 28th at 4:30 p.m. at the Nederland City Hall (regular
meeting) - 1st Public Hearing
• Friday, September 1st at 9:00 a.m. at the Nederland City Hall (special
meeting) - 2nd Public Hearing
• Monday, September 11th at 4:30 p.m. at the Nederland City Hall (regular
meeting) - Adopt the tax Rate
Minutes Continued, August 14, 2017
MOTION CARRIED:
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
iv. A motion was made by Councilmember Austin and seconded by Councilmember
Neal regarding the proposed tax rate and establishing the dates of August 28, 2017
at 4:30 p.m. and September 1, 2017 at 9:00 a.m. for public hearings. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 4:55 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.071, Consultation with City Attorney.
6. RECONVENE
The regular meeting was reconvened at 5:09 p.m. by Mayor Nugent.
e. Consider action regarding the rehabilitation or condemnation and demolition of the
abandoned and dilapidated structure at the following address: 2423 Nederland
Avenue being Lots 10-12, Block 2, Hillcrest 1st.
A motion was made by Councilmember Belaire and seconded by Mayor Pro Tern
Albanese to set a public hearing date of September 11, 2017 to begin the
condemnation process on property located at 2423 Nederland Avenue. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
7. COMMUNICATION
City Manager's Report:
a. Miscellaneous - Robert Woods, Public Works Director, reported Holmes Road
should be completed later this week. The change order has been completed and
the county will be chip sealing Wednesday or Thursday.
Kay DeCuire, NEDC Director, reported the developer of The Landing is doing their
due diligence and their option period will be ending in May of 2018.
Chris Duque reported-
• There will be a special trash collection this Saturday, August 19th, from 8:30
a.m. to 12:30 p.m. at the Service Center located at 515 Hardy.
• A gaming room ordinance is being drafted and reviewed by staff and will be
brought before City Council at the next Council meeting.
• A utility adjustment ordinance will also be on the next council agenda for
consideration. Due to the sewerline project, it will be necessary to raise
rates in order to make the first bond payment of $387,000. Staff is
Minutes Continued, August 14, 2017
currently considering different scenarios. The effective date will be October
1, 2017.
• Sept. 12, 2017 the City will be hosting the Chamber of Commerce Coffee
beginning at 8:00 a.m. at Nederland City Hall.
• Staff is beginning the planning for National Night Out which will be in
October.
• The Nederland Economic Development Corporation is planning their next
market day which is scheduled for October 28, 2017.
• The Education Foundation breakfast will be August 22, 2017 at Casa Ole'
beginning at 7:00 a.m.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Mayor Pro Tern Albanese to adjourn the meeting at 5:30 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
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CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESE ABSENT
R.A. Nugent Mayor V
Talmadge Austin Council Member—Ward I
Billy Neal Council Member—Ward II
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Don Albanese Council Member—Ward III 1 of gt4'7
Craig Belaire Council Member—Ward IV v
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick City Attorney
Cheryl Dowden Director of Finance V
Darrell Bush Police Chief V
GaryCollins Fire Chief
Robert Woods Director of Public Works V/
George Wheeler Building Official �/
Victoria Klehn Librarian
Holly Guidry Human Resources Director V
Joni Underwood Executive Secretary V
Angela Fanette Parks Director V
1 ii .
R.A. Nugent,F air
Mir . , c �/AI I /
G.y erguso I Cu er
August 14, 2017
Date
R.A."Dick"Nugent,Mayor
N E D\n Don Albanese,Mayor Pro Tem
/ F ,- -•T Talmadge Austin,Councilmember
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Billy Neal,Councilmember
/ �%. � ,cit
Z\ � Craig J.Belaire,Councilmember
1��• C� o f Nederland_ Christopher Duque,City Manager
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"* I P.O.Box 967•Nederland,Texas 77627-(409)723-1503•FAX(409)723-1550
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Investment Report
For the Quarter Ending June 30,2017
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
0/\ _
Chris Duqu , City Manager
6—telFieei£LCheryl Director of Finance
"Programmed fel-Progress
City of Nederland
Summary of Account Activity
Total Portfolio - All Accounts
For Quarter Ending June 30, 2017
Investments at Beginning of Period (4-1-17) $ 6,067,366.25
Purchases 11,898.59
Maturities 0.00
Investments at End of Period(6-30-17) $ 6,079,264.84
Maturity Summary at
June 30, 2017
•Less than 3 months
■3 to 9 months
O 9 to 12 months
•Greater than 12 months
City of Nederland
Summary of Account Activity
Total Portfolio - All Accounts
For Quarter Ending June 30, 2017
Balance Balance
04/01/2017 Purchases Maturities 06/30/2017
General Fund $ 4,382,145.12 $ 8,607.96 $ 4,390,753.08
Library Fund 32,458.98 44.14 32,503.12
Water& Sewer Fund 1,012,492.56 1,988.84 1,014,481.40
Solid Waste Fund 513,006.36 1,007.67 514,014.03
Police Narcotics Fund 47,593.41 93.49 47,686.90
Bond Redemption Fund 79,669.82 156.49 79,826.31
$ 6,067,366.25 $ 11,898.59 $ - $ 6,079,264.84
Fund Allocation at June 30, 2017
Solid Waste Fund
8.46%
Bond Redemption
Fund
1.31%
Police
Narcotics
Fund
0.78%
Water&
Sewer Fund General Fund
16.69% 72.23%
Library Fund
0.53%
Investment Report Schedule
Investments for the Quarter ended June 30,2017
CERTIFICATES OF DEPOSIT
Interest Earned
Certificate Purchase Maturity Days to Interest for Quarter ended
Number Date Date be held Rate Face Amount June 30,2017
Held at June 30,2017
Library Special Fund 5713564135 01/04/2017 07/04/2017 185 0.05% $ 10,000.00 $ 1.26
Total Interest Earned on CDs for the quarter ended June 30,2017 $ 1.26
Total Certificates of Deposit held at June 30,2017 $ 10,000.00
Investment Report Schedule
Investments for the Quarter ended June 30,2017
INVESTMENT POOL - TEXPOOL
Average
Days to Interest Market Interest
Period Held Maturity Rate Principal Earned Book Value
General Fund 04/01/17 06/30/17 1 0.7876% $4,382,145.12 8,607.96 $4,390,753.08
Water&Sewer 04/01/17 06/30/17 1 0.7876% 1,012,492.56 1,988.84 1,014,481.40
Bond Redemption Fund 04/01/17 06/30/17 1 0.7876% 79,669.82 156.49 79,826.31
Library Special 04/01/17 06/30/17 1 0.7876% 22,458.98 44.14 22,503.12
Solid Waste Fund 04/01/17 06/30/17 1 0.7876% 513,006.36 1,007.67 514,014.03
Police Narcotic Fund 04/01/17 06/30/17 1 0.7876% 47,593.41 93.49 47,686.90
Totals for TEXPOOL Investments $ 6,057,366.25 $ 11,898.59 $ 6,069,264.84
*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 June 30,2017
INTEREST EARNED ON DEMAND DEPOSITS
Average Interest Earned
Days to Interest Quarter ended
Period Held Maturity Rate June 30,2017
Bond Redemption Fund 04/01/17 06/30/17 1 0.0444% $ 15.37
Capital Outlay Fund 04/01/17 06/30/17 1 0.0444% 84.97
Court Technology Fund 04/01/17 06/30/17 1 0.0444% 0.12
Equipment Replacement Funds 04/01/17 06/30/17 1 0.0444% 225.69
Fire Department Special Fund 04/01/17 06/30/17 1 0.0444% 27.43
General Fund 04/01/17 06/30/17 1 0.0444% 1,325.12
Library Special Fund 04/01/17 06/30/17 1 0.0444% 4.63
MCML Dispatch 04/01/17 06/30/17 1 0.0444% 50.29
Motel Occupancy Tax Fund 04/01/17 06/30/17 1 0.0444% 4.90
Nederland Avenue Project 04/01/17 06/30/17 1 0.0444% 355.28
Parks&Recreation Special Fund 04/01/17 06/30/17 1 0.0444% 14.13
Police Narcotic Fund 04/01/17 06/30/17 1 0.0444% 11.43
Solid Waste Fund 04/01/17 06/30/17 1 0.0444% 231.07
Street Improvement Fund 04/01/17 06/30/17 1 0.0444% 338.48
SSES Fund 04/01/17 06/30/17 1 0.0444% 39.64
Water Plant Construction Fund 04/01/17 06/30/17 1 0.0444% 42.71
Wastewater Construction Fund 04/01/17 06/30/17 1 0.0444% 5.35
W&S Certificate Fund 04/01/17 06/30/17 1 0.0444% 16.26
Water&Sewer Fund 04/01/17 06/30/17 1 0.0444% 308.15
$ 3,101.02
Investment Report Schedule
June 30, 2017
Interest Earnings for Quarter Ended June 30, 2017
Bond Redemption Fund $ 171.86
Capital Outlay Fund 84.97
Court Technology Fund 0.12
Equipment Replacement Funds 225.69
Fire Department Special Fund 27.43
General Fund 9,933.08
Library Special Fund 50.03
MCML Dispatch 50.29
Motel Occupancy Tax Fund 4.90
Nederland Avenue Project 355.28
Parks & Recreation Special Fund 14.13
Police Narcotic Account 104.92
Public Safety Construction Fund 0.00
Solid Waste Fund 1,238.74
Street Improvement Fund 338.48
SSES Fund 39.64
Water Plant Construction Fund 42.71
Wastewater Construction Fund 5.35
W& S Certificate Fund 16.26
Water& Sewer Fund 2,296.99
$ 15,000.87