2013 MinutesREGULAR MEETING OF TH E CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. January 14, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Pro Tern Billy Neal at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached
for quorum.
2 . INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Austin to approve the Consent Agenda Items 3 a-e as presented. MOTION
CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
a. Minutes-December 17, 2012 reg ular meeting
b. December 2012 Departmental Reports
c. Tax Assessor Collection Report -December 2012
d. Requests:
• Consider action approving a request from Adaptive Sports for Kids to
utilize Doornbos Park for various recreation activities.
• Consider action approving a request from the Nederland Rotary Club to
utilize Doornbos Park for the Hooked on Fishing, Not on Drugs event.
• Consider action approving a request from Nederland High School to utilize
Doornbos Park for a tennis tournament.
e. Payments:
• December 2012 monthly bills
• Allco, Inc. -$140,371.52, 18th Street Waterline Replacement project
• Schaumburg & Polk, Inc. -$9,476.90, 18th Street Waterline Replacem ent
project
• Carroll & Blackman, I nc. $1,250.00, Phase II MS4 Permit
Implementation Services
4. REGULAR AGENDA
a. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Rogers to set a public hearing on February 11, 2013 at 4:30 p.m. to receive
Minutes Continued, January 14, 2013
comments regarding a Specific Use Permit for 216 Nederland Avenue, Lots 15 &
16, Block 10 of Staffen Addition . MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese and Rogers.
Noes: None.
Absent: Mayor Nugent.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Albanese to accept the Quarterly investment Report for the quarter ending
September 30, 2012. MOTION CARRIED.
Ayes: Mayor Pro Tern Nea l, Councilmembers Austin, Albanese and Rogers.
Noes: None.
Absent: Mayor Nugent
c. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to authorize the Jefferson County Mosquito Control District to fly at low
altitudes as required for the application of pesticides for the control of mosquitoes
within the Nederland City limits. MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
d. A motion was made by ·Councilmember Albanese and seconded by
Councilmember Rogers to declare a 2003 Ford F-550 cab and chassis, 1996 Ford
Aerotech passenger van, and 2002 Magnum cascade trailer surplus miscellaneous
City equipment. MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
S. COMMUNICATION
City Manager's Report:
a. Construction Project Update. Steve Hamilton reported 18th Street
Waterline Replacement project is nearing completion. All deck work, road
work, and curb work has been completed and the contractor is working on
sidewalks on south side. The sidewalks on the north side will be last to be
done. He advised the Water Plant Rehabilitation is behind schedule. The
contractor is working on the pumps and they are estimating completion by
next month. Gary Graham will report to Council at the next meeting.
b. Introduction of new Human Resource Director. Chris Duque introduced
Holly Guidry as the new Director of Human Resources. Mrs. Guidry addressed
City Council and stated that she is excited about t he opportunity to serve in
this capacity and she is anxious to begin on January 21, 2013.
6. ADJOURN
There being no further business a motion was made by Mayor Pro Tern Neal and
seconded by Councilmember Austin to adjourn the meeting at 4 :55 p.m. MOTION
CARRIED.
·.
Minutes Continued, January 14, 2013
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Abseht: Mayor Nugent
Billy~r Pro1.?/
City of Nederland, Texas
ATTEST:
~f#?'cl/{f'~{tlifb= Gay~~ Cityaer~
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING A TT EN DANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I /
Billy Neal Council Member -Ward II \/
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief ·V
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
~ ~ ~-
Siiiy Neal, MaY'ff Pro Tern
January 14, 2013
Date
J. SHANE HOWARD
TAX ASSESSOR-COLLECTOR
ST A TE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY O F NEDERLAND, affirm, under oath,
that this amount $2,034,457.39, represents all taxes collected for CITY OF NEDE RLAND during
the month of DECEMBER 2012.
J. Shane Howard
.JEFFERSON COUNTY COU RTHOUSE • P.O. BOX 211 2 •BEAUMONT, TEXAS 77704-21 12
PHONE: (409)835-8516 •FAX: (409)835-8589
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. January 28, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Albanese to approve the Consent Agenda Items 3 a-e as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes-January 14, 2013 regular meeting
b. December 2012 Departmental Reports
c. Consider action authorizing the closure of various City streets for the Nederland
Heritage Festival activitfes.
d. Consider action approving a request from the First Baptist Church to utilize
Doornbos Park for their annual Easter Egg Hunt.
e. Payments:
• LaBiche Architectural Group, Inc. -$4,960.72, City Facilities project
• Allco, Inc. -$56,877 .22, Water Plant Repairs/Improvements project
• MCCi -$93,454.39, Document Management Software
• Allco, Inc. -$92,188.81, 18th Street Waterline Replacement project
• DRS & Associates -$1,210.00, Hardy Avenue elevated water tower re-
paint project
4. REGULAR AGENDA
a. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve Change Order No. 4 ( +$13,530.00) to add 17 pipe bollards for
protection of new high service pumps -Nederland Water Treatment Plant
Repairs/Improvements project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal , Albanese and Rogers.
Noes: None.
Minutes Continued, January 28, 2013
b. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to approve Resolution No. 2013-01, authorizing participation with other
Entergy service area cities in matters concerning Entergy Texas, Inc. at the Public
Utility Commission of Texas and the Federal Entergy Regulatory Commission in
2013. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers.
Noes: None.
c. i. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Neal to approve Resolution No. 2013-02, ca lling for an election to be held on
May 11, 2013 for the purpose of electing two (2) Councilmembers -one from
Ward I and one from Ward III and appoint a Clerk for Early Voting. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Rogers to approve an Interlocal Agreement with the Nederland Independent
School District in regards to the 2013 election. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve Ordinance No. 2013-01, amending the FY 2012-2013
budget. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. i. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to authorize the solicitation of Request for Proposals in
conjunction with the City of Port Neches for employee insurance benefits
consultant services. MOTtON CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Neal to authorize the solicitation of bids for a 30-ton air conditioning unit at
the Nederland Recreation Center. MOTION CARRIED.
Ayes: Mayor Nugent, Council members Austin, Neal, Albanese, and Rogers.
Noes: None.
111. A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to approve a contract with Bruce's Construction in the
amount of $1,265,000.00 for the construction of the new City Hall. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. COMMUNICATION
City Manager's Report:
a. Upcoming events: HOFNOD, February 23rd; Trash Bash, morning of March
2nd and ASK Opening Ceremony afternoon of March 2nd. Mr. Nederland
Banquet, February 22nd .
Minutes Continued, January 28, 2013
6. ADJOURN
There being no further business a motion was made by Councilmember Albanese and
seconded by Mayor Nugent to adjourn the meeting at 5:00 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
R.~
City of Nederland, Texas
ATTEST:
GaYFer9US/ CJtYOerl(
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manaaer v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Buildina Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretarv v . v
Angela Fanette Parks Director
January 28, 2013
Date
ORDINANCE NO. 2013-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012•
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year 2012-2013 City Budget; and,
WHEREAS, the City Council deems it necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment "A" attached hereto; and,
WHEREAS, the 2012-2013 City budget states ''That any unencumbered funds remaining
on hand at t he end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council
Contingency Account for purposes approved by the City Council; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT the budget for the fiscal year 2012-2013 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publication, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 28th DAY OF JANUARY, 2013 •
. ~.c
City of Nederland, Texas
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
01-900Q-6907
31-000Q-4901
31-0000-6720
39-0000-6730
25-0000--6265
25-0000-6270
25-5104-6265
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2012-2013
January 28, 2013
Varous
General Fund (01)
Parks Special Fund (25)
Capital Outlay Fund (31)
Street Improvement Fund (39)
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Transfer to Caoital Outlay Fund -1,200,000.00
Transfer from General Fund -1,200,000.00
BuildinQs, Fixtures, & Grounds -1,265,000.00
Street Improvements 680,000.00 200,000.00
Suoolies -3,400.00
Bids, Fixtures & Grounds -1,000.00
Softball Fied Maintenance/Suoolies -5,700.00
TOTAL 680,000.00 3,875, 100.00
JUSTIFICATION
PROPOSED
BUDGET
1,200,000.00
1,200,000.00
1,265,000.00
880,000.00
'3,400.00
1,000.00
5,700.00
4,555, 100.00
The transfer from the General Fund to the Capital Outlay Fund will finance the two facility projects. There are sufficient funds in the GF to
ensure the fund balance meets the City's Fund Balance Policy requirements. The COF allocation will pay for the City Hall project.
The increased SIF Street Improvements allocation wilt allow additional street projects this year; this wiil draw down the fund ba!Wlce.
The increased Parks Special Fund allocations are for carryover projects from FY 2011-2012: the Heritage Festival banners (fund were donated
to the City last year): bench at Tex Ritter Perle (funds were donated by Lions Club); and shade dugouts for A.S.K. (GF transfer).
Date: --------
Finance Director: Date:
Date Approved: Date Posted: -------
Page ____ of ____ _
RESOLUTION NO. 2013-01
A RESOLUTION OF THE CITY COUNCIL OF NEDERLAND, TEXAS,
AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE
AREA CITIES IN MA TIERS CONCERNING ENTERGY TEXAS, INC. AT
THE PUBLIC UTILITY COMMISSION OF TEXAS AND THE FEDERAL
ENERGY REGULATORY COMMISSION IN 2013
WHEREAS, Entergy Texas, lnc.'s ("ETI") implementation of customer choice has
ceased due to Senate Bill 1492 and ETI will continue to be regulated;
WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate
proceedings will have a direct impact on ETI and customer bills during the year and into
the future;
WHEREAS, ETI is scheduled to litigate requests in various proceedings before the
Public Utility Commission, before municipalities, or before the Federal Energy
Regulatory Commission in 2013 related to ETl's proposal to integrate with the Midwest
Independent System Operator ("MISO"), ETl's proposal to divest its transmission system
through a transaction with ITC Holdings Corp., various fuel cost refunds or surcharges
and reconciliations, capacity cost surcharges and reconciliations; and for any type of
incremental base rate adjustment proceedings (such as a transmission cost recovery
rider, a distribution cost recovery rider, or a purchased power capacity cost recover
rider) or cost allocation adjustments;
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in February and August 2013, and file other fuel proceedings during 2013 to
reconcile fuel, to refund or surcharge fuel charges, and to change the fuel mechanism,
along with various surcharge requests impacting rates;
WHEREAS, ETI is scheduled to file a proceeding to determine the proper Texas
allocation of rough production cost equalization payments from Entergy Arkansas to be
refunded to Texas customers as well as refund past payments ordered to be made;
WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in
association with its Energy Efficiency Plan as well as reconcile past costs;
WHEREAS, Cities have the statutory right to set fair and reasonable rates for
both the Company and customers within Cities;
WHEREAS, Cities have original jurisdiction over rates, operations, and services of
an electric utility in areas in the municipality pursuant to Tex. Util. Code § 33.001;
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. UTJL. Code § 33.025, and standing before each Federal Energy Regulatory
Commission case in which the City may be affected pursuant to 18 C.F.R. § 385.214;
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 RESOLVED 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 ETl's various rate filings related to the various fuel cost surcharges and reconciliations,
capacity cost surcharges and reconciliations, the allocation and refund of rough
production cost equalization payments, and for any base rate adjustment proceedings
or cost of service adjustments on file with the Public Utility Commission or with
municipalities in 2013 and seek appropriate regulatory scrutiny in any case on file at the
Federal Energy Regulatory Commission affecting the City and its residents.
The City of Nederland shall participate with other Cities to intervene in fuel or
fuel related proceedings at the Public Utility Commission and the Federal Energy
Regulatory Commission on file in 2013 concerning ETl's rates charged to Texas
customers.
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 actions 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 2. This Re solution 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 the 28th day of January 2013.
ATTEST:
G/vFergus <, City Clerk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
2
THE LAWTON LAW FIRM, P.C.
701 Brazo$ Suite 500 • Austin, Tcx:is 78701 • 512/322-0019 • Fax: 512/716-8917
January 8, 2013
Mr. Richard Ferguson
City Attorney -City of Anahuac
13201 Northwest Freeway, Suite 300
Houston, Texas 77040
Mr. Kyle Hayes
City Manager -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Dion Miller
Interim City Manager -City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Mr. Kenneth Wall
City Attorney -City of Cleveland
Olson & Olson
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Felix Skarpa
Mayor -City of Dayton
11 7 Cook Street
Dayton, Texas 77535
Mr. James Black
City Attorney -City of Groves
BBV A Compass Bank Building
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
Attorney-Client Privileged Communication
Mr. Tyrone Cooper
City Attorney -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Mr. Paul Fukuda
City Attorney -Bridge City
260 Rachal
Post Office Box 846
·Bridge City, Texas 7761 1
Mr. David Olson
City Attorney -City of Cleveland
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Mark Winberry
·City Attorney -·City of Conroe
P.O. Box 3066
Conroe, Texas 77305
Mr. David Douglas
City Manager -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthur, Texas 77643
Ms. Tina Paez
City of Houston Administration & Regulatory
Affairs Department (ARA) ·
611 Walker, 10th Floor
Houston, Texas 77002
Mr. Leonard Schneider
City Attorney -City of Huntsville
2 Riverway, Suite 700
Houston, Texas 77056-1918
Ms. Elaine Allums
Mayor Pro-Tern -City of Kountze
P.O. Box 188
Kountze, Texas 77625
Mr. Bryan Fowler
City Attorney -City of Montgomery
101 Old Plantersville Road
Montgomery, Texas 77316
Mr. Cary Bovey
Law Office of Cary L. Bovey, PLLC
2251 Double Creek Dr., Suite 204
Round Rock, Texas 78664
Mr. Jesse Branick
City Attorney -City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
Ms. Clasina Watson
City Secretary -City of Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Rodney Price
City Attorney -City of Pine Forest
City Attorney -City of Rose City
215 W. Freeway
Vidor, Texas 77662
Attorney-Client Privileged Communication
Ms. Melba T. Pourteau
City of Houston Legal Department
P.O. Box 368, Houston, Texas 77001-0368
City Hall Annex, 4th Floor
900 Bagby
Houston, Texas 77001-0368
Mr. Chuck Pinto
City Manager-City of Huntsville
1212 Ave. M
Huntsville, Texas 77340
Mr. Gary Broz
City Manager-City of Liberty
1829 Sam Houston
Liberty, Texas 77575
Mr. Brad Stafford
City Manager-City of Navasota
202 E. Washington
Navasota, Texas 77868
Mr. Christopher Duque
City Manager-City of Nederland
P.O. Box 967
Nederland, Texas 77627
Ms. Vicky Rudy
City Manager -City of Oak Ridge North
Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Shawn Oubre
City Manager -City of Orange
803 W. Green A venue, Room 201
Orange, Texas 77630
Mr. Tommy Gunn
City Attorney -City of Pinehurst
202 S. Border
Orange, Texas 77630
Mr. Joe Parkhurst
City Administrator -City of Pinehurst
202 S. Border ·
Orange, Texas 77630
Ms. Val Tizeno
City Attorney -City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Pete Steele
City Attorney -City of Port Neches
3120 Central Mall Drive
Port Arthur, Texas 7764Z
Mr. Harry Wright
City Attorney -City of Silsbee
PO Box 186
Port Neches, Texas 77651
Mr. Larry Saurage
City Manager -City of Sour Lake
655 W. Barkley St
Sour Lake, Texas 77659
Mr. Ricky E . Jorgensen
City Manager -City of Vidor
1395 N. Main St.
Vidor, Texas 77662-3726
Mayor Roy McDonald
Mayor -City of West Orange
2700 Western Avenue
West Orange, TX 77630
Michael S. Stelly
City of West Orange, Texas
2700 Austin Avenue
West Orange, TX. 77630
Attorney-Client Privileged· Communication
Mr. Floyd Johnson
C ity Manager -City of.Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Andre Wimer
City Manager -City of Port Neches
634 Avenue C
P ort Neches, Texas 77651
Mr. Greg Smith
City Manager -City of Shenandoah
29955 IH-45 N.
Shenandoah, Texas 77381
Mr. Tommy Bartosh
City Manager -City of Silsbee
I 05 South 3rd Street
Silsbee, Texas 77656
Mayor Dorothy Welch
City Attorney Leonard Schneider
City of Splendora
P.O. Box 1087
Splendora, Texas 77372
Mr. Guy N. Goodson
City Attorney -City of Vidor
P.O. Box 4915 .
Beaumont, Texas 77704-4915
Mr. Joe Alford
City Attorney -City of West Orange
105 Market
Orange, Texas 77630
Re: Annual Ordinance Authorizing Municipal
Participation in Regulatory Proceedings of Entergy
Texas, Inc.
Steering Committee of Cities located in Entergy Texas, Inc.'s Service Territory:
With the new year, it is once again time to authorize municipal participation in regulatory
rate proceedings involving Entergy Texas, Inc. ("Entergy") before municipalities, the Public
Utility Commission ("PUC" or "Commission"), and the Federal Energy Regulatory Commission
("FERC"). Attached is a proposed Ordinance to authorize participation in rate proceedings on
file in 2013.
Many important developments are expected to be litigated by Entergy at the Public
Utility Commission this year. First, Entergy received Commission approval for the Company's
transfer of control over the transmission system to the Midwest Independent System Operator
("MISO"). Entergy currently has a proceeding open to ensure Entergy complies with the
Commission's · Final Order and the agreement with the Cities placing conditions on Entergy's
transfer of operational control. Entergy is also expected file with the Commission a proceeding
requesting authorization to sell or divest the transmission system to ITC Holdings. The proposed
sale will be reviewed by the Cities in a proceeding before the Commission to determine if the
transaction is in the public interest. The continued participation of the Cities in these
proceedings is necessary to ensure that the operations and charges of Entergy to Texas customers
are not adversely affected by this transaction.
Over the course of the year, we also anticipate that Entergy will continue to seek base
rate revenue increases from the Cities and the Public Utility Commission either possible base
rate cases or through incremental cost recovery mechanisms. The Steering Committee of Cities
was successful in past years with limiting Entergy's requested base rate increase to reasonable
revenue levels and dismissing Entergy's request for purported incremental cost recovery.
On November 28, 2011, Entergy filed a base rate proceeding with the Cities and the
Commission to increase customer's rates by $111.8 million annually. The Cities contested
Entergy's rate request and took issue with Entergy's claimed costs of providing service to
customers. Cities denied Entergy's rate increase request and litigated the reasonableness of
Entergy's proposal before the Public Utility Commission. After a week and a half trial, the
Commission reduced the Company's rate increase request to a $23.8 million first year increase in
rates" (adjusted for fuel disallowance) rather than the $11 l.8 million that was originally
requested.
We also anticipate that Entergy will file various fuel proceedings throughout the year.
Last year, the Steering Committee of Cities was able to negotiate a favorable settlement for the
fuel refund proceedings filed by Entergy. The settlement returned more money to customers and
in a more timely fashion than would have been possible through Entergy·s filed request or
through litigation.
Attorney-Client Privileged Communication
RESOLUTION 2013-02
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS CAUING A GENERAL ELECTION ON
SATURDAY, MAY 11, 2013; DESIGNATING THE POLLING
PLACE; PROVIDING FOR OTHER MATTERS RELATING TO
THE GENERAL ELECTION; AND FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW.
WHEREAS, the laws of the State of Texas and the Charter of the City of Nederland
provide that on May 11, 2013 there shall be elected the following officials for this City:
One (1) Council member, Ward I
One (1) Council member, Ward Ill
WHEREAS, the laws of the State of Texas and the Charter of the City of Nederland
further provide that the Election Code of the State of Texas is applicable to said election, and in
order to comply with said Code, a resolution should be passed establishing the procedure to be
followed in said election, and designating the voting place for said election.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS:
That all independent candidates ·at the election to be held on the second Saturday in
May, 2013, for the above mentioned offices file their application to have their name placed on the
ballot with the City Clerk at City Hall, 1400 Boston Avenue, Nederland, Texas, not later than the
sixty-second (62nd) days before the election or earlier than the 30111 day before the date of the
filing deadline in accordance with Election Code Sec. 143.006 and 143.007. The eartiest date for
a candidate to file same will be January 30, 2013, at 8:00 a.m., with the last day for filing to be
March 1, 2013 at 5:00 p.m. All of said applications shall be on a form as prescribed by Section
141.031 of the Election Code.
The order in which names of the candidates are to be printed on the ballot shall be
determined by a drawing by the City Clerk as provided by Section 52.094 of the Election Code.
The City of Nederland has one polling place located in the City Office Building, 1400
Boston Avenue, Nederland, Texas. The City Clerk is hereby authorized and instructed to provide
and furnish all necessary election supplies to conduct said election.
Gracie Gonzales will serve as Presiding Judge and Susan Monroe will serve as Alternate
Presiding Judge, and the clerks of the election will be appointed by the Presiding Judge in a
number not to exceed seven (7).
The polls at the above designated polling place shall on said Election Day be open from
7:00 a.m. to 7:00 p.m.
Gay Ferguson is hereby appointed Clerk for Early Voting. The Early Voting for the above
designated election shall be at the Nederland City Office Building, 1400 Boston Avenue,
Nederland, Texas, and said place of Early Voting shall remain open for at least eight (8) hours on
each day for Early Voting which is not a Saturday, Sunday, or an official State holiday, beginning
on the twelfth (12111) day and continuing through the fourth (4"') day preceding the date of said
election. Said place of voting shall remain open between the hours of 8:00 a.m. and 5:00 p.m. on
each day for said Early Voting. As required under Section 85.005(d), Election Code, early voting
by personal appearance at the main early voting polling place shall be conducted for at least 12
hours on two weekdays, if the early voting period consists of six or more weekdays, therefore,
early voting by personal appearance shall be conducted for 12 hours from 7:00 a.m. to 7:00 p.m.
on Tuesday, April 30, 2013 and Tuesday, May 07, 2013. The above described place for Early
Voting is also the Early Voting Clerk's address to which ballot applications and ballots voted by
mail may be sent
The Early Voting Ballot Board shall be created as provided by Election Code Sec.
87.001. Gracie Gonzales is hereby appointed as the Presiding Judge for the Early Voting Ballot
Board and is authorized to appoint two (2)-cierks to serve on the Board. Gay Ferguson is hereby
appointed to serve as the Presiding Judge of the Central Counting Station as provided in Section
127.005 of the Election Code.
Said election shall be held in accordance with the Election Code of the State, and only
resident qualified voters of said City shall be eligible to vote at said election.
All ballots shall be prepared in accordance with Texas Election Code. Paper ballots shall
be used for early voting by mail and for provisional ballots. The iVotronic Voting System v3.0.1 .1
(Direct Recording Electronic) shall be used for early voting by personal appearance and voting on
Election Da.y. The City Council hereby adopts for use in early voting and Election Day voting the
iVotronic Voting System v3.0. 1.1 (Direct Recording Electronic) as approved by the Secretary of
State. All expenditures necessary for the conduct of the election, the purchase of materials
therefore, and the employment of all election officials is hereby authorized.
The Mayor shall give notice of this election in accordance with the terms and provisions
of Sections 4.004, 83.010, 85.004, and 85.007 of the Election code, and all necessary orders and
writs for said election shall be issued by the proper authority. Returns of said election shall be
made to the City Council immediately after the closing of the polls.
It is further found and determined that in accordance with the order of this governing
body, the City Clerk posted written notice of the date, place and subject of this meeting on the
bulletin board located in the City Hall, a place convenient and readily accessible to the general
public, and said notice having been posted and remaining posted continuously for at least 72
hours preceding the scheduled time of said meeting.
PASSED, APPROVED AND ADOPTED this 28th day of January, 2013.
RA~
~~rd~r
City of Nederland, exas
/!d!j . ~J
Billy Neal, Ward II Councilmember
Q~ t!JLU; ~
uncilmember Oon Albanese, Ward Ill Councilmember
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
1:30 p.m. January 31, 2013
1. MEETING
The special meeting was called to order at 1:30 p.m. by Mayor R. A. Nugent at t he
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. EXECUTIVE SESSION
The regular meeting was recessed at 1:31 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.074, Discuss Personnel -City Manager.
3 . RECONVENE
The regular meeting was reconvened at 3:41 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
4 . ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Cou ncilmember Albanese to adjourn the meeting at 3:43 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
ATTEST:
~LAfl/L-
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING A TIEN DANCE SHEET
NAME TITLE PRESE~T ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I /
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v ·
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
Darrell Bush Police Chief
Garv Collins 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
January 31, 2013
Date
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
9:30 a.m. February 7, 2013
1. MEETING
The special meeting was called to order at 9:30 a.m. by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. STREET PROGRAM
Chris Duque, City Manager, reviewed t he proposed 2013 Street Program. The
budget for the upcoming street program is $1,165,000.00 which includes
$389,000.00 carried over from last year's budget. The Street Department's General
Fund is budgeted at $915,000.00 and the Street Improvement Fund is budgeted at
$250,000.00.
Mr. Duque reported that City staff is recommending dividing the street program into
3 main components: BOMAG/Chip Seal projects, Mot Mix Overlay/Resurfacing, and
Concrete Street Repairs. ·
Mr. Duque advised the Street Department's staff has assessed the streets in most
need of repair. After meeting with Commissioner Weaver, the following list of streets
will be BOMAG'ed by the Street Department and chip sealed with the County's
assistance at an estimated cost of $250,0 00.00.
BOMAG and Chip Seal Width Length
Priority # 1.
Hilldale 20 2300
South 15tn -Hiohwav 365 to Dead End 20 2075
Avenue M -South 15tn to Twin City Highway 20 1350
South 14tn -Nederland Avenue to Avenue B 20 550
Avenue A -South 13tn to South 14tn 20 300
South 1 112 -Avenue H to Dead End 20 1000
Avenue E -South 5tn to South 7tn 20 425
Eloin -23r<1 to 24tn 20 450
Total Linear Feet 9,100
Priority #2
34th -Lawrence to Canal 20 1475
Avenue B -South 5tn to South 4 V2 20 300
South 2 V2 -Avenue B to Nederland Avenue 20 550
South 4tn -Nederland Avenue to Avenue D 20 1100
Garv -Twin Citv Hiohwav to 12tn 20 525
16th -Helena to Eloin 20 970
1stn -Helena to Detriot 20 1250
19th -Helena to Detriot 20 1250
Total Linear Feet 7,420
Minutes Continued, February 7, 2013
Mr. Duque recommended to the Hot Mix Overlay/Resurfacing the following streets at
an estimated cost of $375,000.00.
Width Len th
20 2900
20 2150
Total Linear Feet 5 050
Mr. Duque reported Boston Avenue would be a contracted Hot Mix Overlay project
similar to 27th Street, Gage, N. 12th Street, Detriot, and Avenue H. Canal Avenue
would be "level-upped" then re-surfaced by a contractor similar to what was done on
Hillterrace and S. 29th Street. Mr. Duque recommended engaging Schaumburg and
Polk, Inc. to assess the following roads and recommend a course of repair.
Future Hot Mix Overla Resurfacin Width Len th
13th -Chica o to Nederland Avenue 20 1100
South 21st -Avenue H to Nederland Avenue 20 2600
20 2600
20 2600
South 9th -Avenue B to Avenue H 20 1850
Total Linear Feet 10 750
Mr. Duque recommended a budget of $300,000.00 for the concrete portion of the
street program to be used for repairs to Helena Avenue from 27th Street to Highway
69.
Mr. Duque advised the sale of property to Sunoco would be closing within the next
30 days. He recommended half of the funds go toward the street program to hot
mix overlay the streets Schaumburg & Polk will be testing and assessing. He also
recommended $200,000.00 go toward a study of the drainage problems in the
downtown area. Mr. Duque went on to say that the funds being received from
Sunoco should go back into the community and suggested some of the funds go
toward a study to resurface Nederland Avenue from Twin City Highway to Highway
69. This study would take months to complete and would give Council options and
possible investment to complete the project. This project will need to be carefully ·
planned as not to put businesses out of business due to road construction.
3. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 10:30 a.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, February 7, 2013
ATIEST:
~lt;~~l~ G Ferius ~ itY Clerk
City of Nederland, Texas
•• t '
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor \/
Talmadge Austin Council Member -Ward I /
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
Darrell Bush Police Chief
Gary Collins Fire Chief
l-urn{ {},rave5
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
R .. &l.~~
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. February 11, 2013
1. MEETING
The meeting was called to order at 4:30 p.m . by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Albanese to approve t he Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
a. Minutes-January 28, 2013 regular meeting and January 31, 2013 special
meeting
b. January 2013 Departmental Reports
c. Payments:
• January 2013 monthly bills
• Carroll & Blackman, Inc. -$534.00, Phase II MS4 Permit I mplementation
Services
• Allee, Inc. -$36,413.50, 18th Street Waterline Replacement project
4. REGULAR AGENDA
a. The regular meeting was recessed and a Joint Public Hearing was called to order
at 4:32 by Mayor Nugent for the purpose of receiving comments and/or questions
regarding a Specific Use Permit request for 216 Nederland Avenue, Lots 15 & 16,
Block 10 of Staffen Addition.
Chris Duque, City Manager, stated that Vernon Escolovon, the property owner of
216 Nederland Avenue has requested approval of a Specific Use Permit to
operate an indoor mini-storage rental business in an existing C-2 (Neighborhood
Retail zoning) district as required by the City's Zoning Ordinance. The property
owner would construct a new metal building for 16 rental storage units. The
Public Hearing will allow any interested party to voice questions, comments,
and/or concerns. The Planning & Zoning Commission will meet on March 5, 2013
to make a recommendation for Council action. No action is necessary tonight.
Minut es Continued, February 11, 2013
George Wheeler, Building Official, advised there may be requirements added to
the Specific Use Permit once the Planning & Zoning Commission meets and
discusses this project.
There being no further questions and/or comments, the Public Hearing was
adjourned and the regular meeting was reconvened at 4:35 by Mayor Nugent.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Albanese to approve Seaway Crude Pipeline Company LLC's offer to acquire a 30'
wide easement to construct and operate a pipeline across City property near the
closed landfill's entrance and near the Keystone Pipeline easement pending final
legal review and approval. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
c. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to approve Change Order No. 5 ( + 105 days to the contract) MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
d. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve an amendment ( +$32,000.00) to Walker Partners' contract
for the 2010 Water System Improvements project. MOTION CARRI ED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
Gary Graham, Walker Partners, was in attendance to give Council a brief update
on the Water Treatmen~ Plant project.
e. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to authorize payment to Walker Partners in the amount of
$4,806.66 for the 2010 Water System Improvements project. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
S. EXECUTIVE SESSION
The regular meeting was recessed at 4:49 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: 18 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
Minutes Continued, February 11, 2013
7. COMMUNICATION
City Manager's Report:
a. Construction project update -Mr. Hamilton reported 18th Street is finished
except for the installation of the root barrier. Trees have been removed on
the City Hall project and city staff is working on redirecting the drainage away
from the downtown area.
b. City offices will be closed on Monday, February 18th in observance of
Presidents' Day holiday.
6. ADJOURN
There being no further business a motion was made by Councilmember Rogers and
seconded by Mayor Nugent to adjourn the meeting at 5:21 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Neal.
ATTEST:
d'aYfurg1JSl1, City Clerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
L NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manaaer v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v -v -~
~ D~rrell Bush Police Chief
V7 Gary Collins Fire Chief
Steve Hamilton Director of Public Works v
George Wheeler Buildina Official v
/ v1ctona t\lenn LIDrarian l /
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
1;Jo ~~L~ Gcty Fergus CitYcierk
February 11, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. February 25, 2013
1 . MEETING
The meeting was ca lled to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Councilmem ber Rogers and seconded by Councilmember
Austin to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes-February 7, 2013 workshop and February 11, 2013 regular meeting
b. Consider action authorizing the closure of various City streets for the Spindletop
Streetrods & Hotrods Association ca r show.
c. Tax Assessor Collector Report -January 2013
d. Payments:
• LaBiche Architectural Group, Inc. -$5,016.68, City Facilities project
• Carroll & Blackman, Inc. $1,056.25, Phase II MS4 Permit
Implementation Services
• Schaumburg & Polk, Inc. -$4,625.60, 18th Street Waterline Replacement
project
4. REGULAR AGENDA
a. Scott Ferguson, President with Adaptive Sports for Kids, was present to give a
brief overview of last year's sporting events and to thank City Council and staff
for their support. Athletes presented t-shirts to members of the City Council and
invited everyone to come to Opening Day of Baseball on March 2, 2013.
b. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to approve the donation of a surplus cascade trailer to the
Hamshire Volunteer Fire Department. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers.
Noes: None.
Minutes Continued, February 25, 2013
c. A motion was made by Councilman Austin and seconded by Mayor Pro Tern Neal
to accept the "Racial Profiling Report" from the Nederland Police Department as
required by Article 2.132{b)(7) of the Texas Code of Criminal Procedure.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve Ordinance 2013-02, amending the FY 2012-2013 budget.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to accept the constructed water and sewer system improvements, upon
successful completion and final inspection, for Aleef Estates and approving the
release of the final plat. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve a request from the Nederland Independent School District to
utilize the Nederland Recreation Center for their summer recreation program.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
··gt A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve an Interlocal Agreement with the Nederland Independent
School District and Water District 10 in regards to the 2013 election. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
h. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to amend the agreement with Keystone Pipeline
authorizing the temporary use of the City's private KCS railroad crossing subject
to the following conditions:
• Keystone must present copy of KCS permit/agreement to cross railroad
tracks.
• Keystone shall reimburse all costs associated with the cities of Nederland
and Port Neches disposing of their green waste with Good Times Wood
Products, including but not limited to, ALL costs over and above $4.00 per
ton of delivered product as stated in the current contract between GTWP,
Nederland and Port Neches; included in these costs are move-in costs,
weekly costs to keep the grinder at the chipping location, and additional
per ton costs associated with the delivery of the wood product.
• Keystone shall make necessary improvements to agreed-upon chipping
location, to include providing a rock pad, approximately 100' x 115'; the
City shall provide asphalt millings located at the City Service Center, but
Keystone is responsible for the transportation of the material to the
project site.
• A Keystone representative will attend any meetings to discuss problems,
concerns, etc. with the City or either club with City-approved access to the
property-radio control airplane club and shooting range.
Minutes Continued, February 25, 201 3
MOTION CARRI ED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
i. i. A motion was made by Councilmember Rogers and seconded by
Councilmember Austin to approve a Request for Proposals in conjunction with the
City of Port Neches for employee insurance benefits consultant services.
MOTI ON CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to award a bid for a 30-ton air conditioning unit at the Nederland Recreation
Center to Sumrall Air Conditioning in the amount of $26,396.00. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
j. i. A motion was made by Councilmember Austin and seconded by
Councilmember Rogers to approve a Quality Control Testing Services contract,
pending final legal review and approval, with T & N Laboratories & Engineering
for the 2013 Street Program. MOTION CARRIED.
Ayes: Mayor Nugel"'!t, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve a work order with Schaumburg & Polk, Inc., pending final legal
review and approval, for study and report phase services related to various City
streets. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iii. A motion was rnade by Councilmember Rogers and seconded by
Councilmember Albanese to approve a work order with Schaumburg & Polk, Inc.
for concrete street repairs. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:20 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.072, Deliberations of Real Property; and Chapter 551.087, Deliberation
Regarding Economic Development Negotiations.
6. RECONVENE
The regular meeting was reconvened at 6:13 p.m. by Mayor Nugent.
k. A motion was .made by Councilman Rogers and seconded by Councilmember
Albanese to postpone action approving an Agreement between the City of
Nederland and Sunoco Partners Marketing & Terminals, L.P. MOTION
CARRIED.
Minutes Continued, February 25, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
I. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Austin to authorize the City Clerk to file with the County Clerk documentation
terminating a lease agreement with Pass Petroleum Industries. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
m. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to approve Resolution No. 2013-03, authorizing the City Manager to
execute closing and title documents for the sale of 255 acres of land, more or
less, and to include a right of first refusal for remaining acreage owned by the
City, to the Nederland Economic Development Corporation. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
n. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve a Purchase and Sale Agreement, pending final legal review and
approval, between the City of Nederland and the Nederland Economic
Development Corporation in regards to the sale of 255 acres of land, more or
less, for future economic development. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Roge rs.
Noes: None.
7. COMMUNICATION
City Manager's Report:
a. Upcoming events - Trash Bash, Ma rch 2 @ 8:30 and A.S.K. Opening
Ceremonies, March 2 @ 1: 30.
6. ADJOURN
There being no further business a motion was made by Councilmember Rogers and
seconded by Mayor Nugent to adjourn the meeting at 6:23 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Alba nese, and Rogers .
Noes: None.
ATTEST:
G~.QM~,!41~
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v ·
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk ~
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v ,
Darrell Bush Police Chief
,/
Gary Collins Fire Chief v -v Steve Hamilton Director of Public Works
George Wheeler Building Official v
Victoria Klehn Librarian :\/
Holly Guidry Human Resources Director v
Joni Underwood . Executive Secretary v
Angela Fanette Parks Director v
G fierQUn,City c1er
February 25. 2013
Date
J. SHANE HOWARD
TAX ASSESSOR-COLLECTOR
ST A TE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $2,270,815.85, represents all taxes collected for CITY OF NEDERLAND during
the month of JANUARY 2013.
.T. Shane Howard
JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 •BEAUMONT, TEXAS 77704-21 12
PHONE: (409)835-8516 •FAX: (409)835-8589
Nederland Police Department Report to Nederland City Council
February 21, 2013
The following information summarizes t he activity of the Nederland Police Department as it relates to the requirements
of Articles i.13i -2.138 of the Texas Code of Criminal Procedure. The Nederland Police Department collects data
concerning traffic citations and arrests due to both traffic and pedest rian stops. This report fulfills the statutory
requirements of the Nederland Police Department to report contacts and racial/ethnic breakdowns to the Nederland
City Council by February 25, 2013.
NUMBER OF MOTOR VEHICLE/PEDESTRIAN STOPS
Citations Only 1502
Arrest Only 7
Citations and Arrest 49
TOTAL 1576
RACE OR ETHNICITY
African American 127
Asian 27
Caucasian 1304
Hispanic 109
Middle Eastern 4
Native American . 5
TOTAL 1576
RACE OR ETHNICITY KNOWN PRIOR TO STOP
Yes 183
No 1393
TOTAL 1576
SEARCH CONDUCTED?
Yes 64
No 1512
TOTAL 1576
SEARCH CONSENTED:
Yes 17
No 47
TOTAL 64
The Nederland Police Department has adopted detailed written policy on racial profiling. Our policy: (1) clearly defines
acts const ituting racial profiling; (2) strictly prohibits peace officers employed by the Nederland Police Department from
engaging in racial profiling; (3) implements a process by with an individual believes that a peace officer employed by the
Nederland Police Department has engaged in racial profiling with respect to the individual; (4) provides public education
relating to the agency's complaint process; (S)requires appropriate corrective action to be taken against a peace officer
employed by the Nederland Police Department who, after an investigation, is shown to have engaged in racial profiling
in violation of the Nederland Police Department's policy adopt ed under this article; (6) require collection of information
relating to motor vehicle st ops in which a citation is issued and to arrests made as a result of those stops, including
RESOLUTION NO. 2013-03
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS AUTHORIZING
THE CITY MANAGER TO EXECUTE CLOSING
DOCUMENTS RELATED TO SALE OF 259.269,
MORE OR LESS, ACRES OF LAND TO THE
NEDERLAND ECONOMIC DEVELOPMENT
CORPORATION FOR FUTURE ECONOMIC
DEVELOPMENT
WHEREAS, on December 17, 2012, the Nederland City Council unanimously
approved the sale of 255 acres of land, more or less, to the Nederland Economic
Development Corporation, along with the right of first refusal for an additional tract of
614 acres more or less, all of which was for economic development.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT Nederland City Manager Christopher Duque is authorized to execute
closing documents related to the sale of 259.269, more or less, acres of land to
the Nederland Economic Development Corporation along with the right of first
refusal tract of land,_ for f~ture economic development.
PASSED and APPROVED on this the 25th day February 2013.
ATTEST:
APPROVED AS TO FORM:
·~ ..
ORDINANCE NO. 2013-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012-
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year 2012-2013 City Budget; and,
WHEREAS, the City Council deems It necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment "A" attached hereto; and,
WHEREAS, the 2012-2013 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City CouncH
Contingency Account for purposes approved by the City Council; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT the budget for the fiscal year 2012-2013 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publication, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 25th DAY OF FEBRUARY, 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
36-0000-6742
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2012-2013
February 25, 2013
Equipment Replacement W&S (36)
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Motor Vehicles 22,000.00 7,000.00
TOTAL 22,000.00 7,000.00
JUSTIFICATION
PROPOSED
BUDGET
29,000.00
29,000.00
An additional $7000 is allocated for Equipment Replacement to fund the purchase a replacement
booring machine for the Water & Sewer departments. The old equipment is nearly 10 years old; it is
more cost effective to purchase a new piece of equipment.
Dept. Head Signature: ----------------Date: -----
Finance Director: Date: -----
Date Posted: -----Date Approved:
Page ____ of ___ _
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
11:00 a.m. March 1, 2013
1. MEETING
The special meeting was called to order at 11 :00 a.m. by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. PUBLIC SAFETY COMPLEX
A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve a contract with LaBiche Architectural Group, Inc., for a City
Facility Project, Nederland Public Safety Complex. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Albanese, and Rogers.
Noes: None.
Absent: Councilmembers Austin, and Neal.
3 . ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 11:08 a.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
R. A. Nugent , May
City of Nederland,
~Ct~'dwiqµ~ Ga'Yferguson ity Clerk
City of Nederland, Texas
J. ·"'-
CITY OF NEDERLAND
COUNCIL MEETING A TIEN DANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I
Billy Neal Council Member -Ward II
Don Albanese Council Member -Ward Ill ~
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Gtleryl Dowden Director of Finance
G QfL{ P'ovter-v Barrell Bttsh Police Chief
Gary Collins 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
G8iFer90n: City c1e
March 1 2013
Date
"'\ . .. . .
•;. . . ·'•
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. March 11, 2013
1 . MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2 . INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Austin to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Aye~: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes-February 25, 2013 regular meeting and March 1, 2013 special meeting
b. February 2013 Departmental Reports
c. Payments:
• February 2013 monthly bills
• Walker Partners -$4,267 .SO, 2010 Water System Improvements project
• Carroll & Blackman, Inc. -$910.00, Phase II MS4 Permit Implementation
Services
• Allco, Inc. -$33,138.09, 18th Street Waterline Replacement project
4. REGULAR AGENDA
a. Jason Parthum, 1639 N. 27th Street, was present to request City Council consider
approving a Resolution in regards to the 2nd amendment of the U. S. Constitution
that is intended to protect citizens of Nederland from rights infringement from
City officials and to protect City officials from rights infringement from the federal
government. Included in said resolution was language that the city council would
declare any federal acts, laws, etc., related to gun control would violate the 2nd
amendment and that the city council instructs city staff to not enforce said
federal laws, acts, etc., that in the previous section the council found violated the
2nd amendment.
Councilman Rogers asked what cities have adopted the resolution and whether
the resolution had been presented to the "large" cities in the state. Mr. Parthum
. '
Minutes Continued, March 11, 2013
identified the cities of League City, Gonzalez, and Rockwall and that the
resolution had not been presented to "large" cities in the state.
Councilman Neal expressed concerns with the legality of the resolution, which
Council Albanese reiterated. Councilman Neal stated that city government
cannot override the federal government and that the resolution could possibly
place police officers in a difficult position since the officers have sworn to uphold
federal, state and local laws. Jesse Branick, City Attorney stated that elected
officials and police officers are duty-bound to follow the U.S. Constitution; he
further elaborated on pre-emption and how he did not believe a city council can
determine whether or not a federal law is constitutional. Police Chief Bush stated
he believed he and his police officers had enforcement discretion on traffic laws,
e.g. giving speeding ticket for going 31mph in a 30mph zone.
Councilmen Albanese and Rogers sought further clarification from Mr. Parthum.
Councilman Albanese posed a hypothetical situation in which Congress and the
President execute a law making certain high capacity magazines illegal, would the
City Council declare the magazines legal. Mr. Parthum argued this point that the
City Council should override the federal government.
Mayor Nugent expressed his and other Councilmembers support of 2nd
Amendment rights, but he stated that the City ca nnot override federal law. Mr.
Parthum stated that it is possible because "supreme law" and state law both
contradict federal law.
City Manager Duque stated that City elected officials, police officers, City staff
have sworn oaths or have professional standards where they have sworn to
protect the laws of this country, the state of Texas, and local ordinance, including
the 2nd Amendment. In addition, Mr. Duque stated he does not believe anyone
disagrees with the sentiment of protecting our constitutional rights. The main
question is whether the city council of a home rule city has the authority to judge
the constitutionality of a federal law. Mr. Duque stated he was unaware of any
city having this type of power or exercising said power. ·
Although not listed on the agenda, Mayor Nugent allowed others in attendance to
address the Council in regards to this issue.
John Theriot, 324 Avenue F, stated if the federal government passes a law
against guns without changing the Constitution, this ordinance will be needed not
to limit or take away gun rights.
Jay Faris, 1119 Twin City Highway, asked City Council to pass the resolution to
put it on paper first before the federal laws are passed limiting gun rights.
John Mason Hill, 2812 Erwin Street, stated the City Council has nothing to lose by
passing the resolution. Mr. Duque stated various bills have been proposed by the
Texas State Legislature to articulate the state's position on 2nd Amendment rights
and that state law pre-empts local ordinances.
Mr. Duque explained this resolution is trying to make a hypothetical law
unconstitutional and city councils do not have the authority to declare federal law
unconstitutional. The Supreme Court has that responsibility. Mr. Duque asked
what city in Texas has declared a hypothetical federal law unconstitutional; Mr.
Minutes Continued, March 11, 2013
Parthum answered he knew of none but various sheriffs indicated their refusal to
enforce gun control legislation. Mr. Duque again stated the City's commitment to
protecting the U.S. Constitution, including the 2 nd Amendment rights.
Terry Shipley, 8765 Homles Road, made a formal request of the City Council to
look into what could be done regarding gun control and find where the limitations
are.
Mayor Nugent thanked everyone for coming and expressing their concerns
regarding the 2nd amendment. He stated t he city will be watching this closely
and will report any new information to Mr. Parthum.
b. Mayor Nugent presented a Proclamation to Cooper Slott for placing 4th at the Elks
Texas State Hoop Shoot Competition in Dallas. Mr. Slott raised over $4,000 for
this competition and elected to donate the funds to Adaptive Sports for Kids, Inc.
Mr. Slott was in attendance to accept the Proclamation and thanked the
community for their support.
A motion was made by Councilmember Austin and seconded by Councilmember
Albanese to Proclam March 11, 2013 as Cooper Slott Day in the City of
Nederland. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese and Rogers.
Noes: None.
c. A motion was made by Councilman Albanese and seconded by Councilmember
Rogers to approve the issuance of a Specific Use Permit for the property located
at 216 Nederland Avenue, Lot ·1s & 16, Block 10 of Staffen Addition. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to authorize the solicitation of bids to establish unit pricing of Water
Inventory Items. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Nea l to approve the Certificate of Unopposed Candidates for the general election
scheduled for May 11, 2013. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Neal to approve Ordinance No. 2013-03, declaring unopposed candidates in the
May 11, 2013 General City Election and cancelling said election. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, March 11, 2013
5 . EXECUTIVE SESSION
Mayor Nugent announced it will not be necessary to conduct the scheduled Executive
Session.
6 . COMMUNICATION
City Manager's Report:
a. Construction project update. Steve Hamilton reported 18th Street
Waterline project had the final walkthrough and minor items were identified
to be addressed before completion. City hall project is underway and on
schedule. Eng ineering work has begun on the assessments of concrete
streets. Pol ice/Fire building renovation project is moving forward and the
Police and Fire Departments are looking at options for relocation during the
construction of the current building.
6. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Albanese to adjourn the meeting at 5:30 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
~~.~liJ1/V'---
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I ·V
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney i/
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief /
Gary Collins Fire Chief ,/
Steve Hamilton 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
Atn /); iAf LJ, ;y
R. A. Nugen't, MayoiV -
March 11 2013
Date
CITY OF NEDERLAND
ORDINANCE NO. 2013-03
AN ORDINANCE DECLARING UNOPPOSED
CANDIDATES IN THE MAY 11, 2013 GENERAL
CITY ELECTION ELECTED TO OFFICE;
CANCELING THE ELECTION; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the general city election was called for May 11, 2013, for the
purpose of electing 2 members to the City Council; and
WHEREAS, the city clerk has certified in writing that there is no
proposition on the ballot, that no person has made a declaration of write-in
candidacy, and that each candidate on the ballot is unopposed for election to
office; and
WHEREAS, under these circumstances, Subchapter C, Chapter 2,
Election Code, authorizes the City Council to declare the candidates elected to
office and cancel the election;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS .
Section 1. The following candidates, who are unopposed in the May 11,
2013, general city election, are declared elected to offioe, and shall be issued
certificates of election following the time the election would have been
canvassed:
Council Ward I
Council Ward Ill
Talmadge Austin
Oon Albanese
Section 2. The May 11, 2013, general election is canceled, and the city
clerk is directed to cause a oopy of this ordinance to be posted on election day at
each polling place that would have been used in the election.
Section 3. It is declared to be the intent of the City Council that the
phrases, clauses, sentences, paragraphs, and sections of this ordinance are
severable, and if any phrase, clause, sentence, paragraph, or section of this
ordinance is declared invalid by the judgment or decree of a court of competent
jurisdiction, the invalidity shall not affect any of the remaining phrases, clauses,
sentences, paragraphs, or sections of this ordinance since the City Council would
have enacted them without the invalid portion.
Section 4. This ordinance shall take effect upon it final passage, and it is
so ordained.
PASSED AND APPROVED this the 11th day of March, 2013.
ATTEST:
~A~ QA g} j,o,cJIA_, G'aYFE;f9u5 O:C;ty c1e
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY: .....
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. March 25, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Pro Tern Neal at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See attached
for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Albanese and seconded by Councilmember
Austin to approve the Consent Agenda Items 3 a-c as prese,nted. MOTION
CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
a. Minutes-March 11, 2013 regular meeting
b. February 2013 Departmental Reports
c. Payments:
• Carroll & Blackman, Inc. -$468.00, Phase II MS4 Permit Implementation
Services
• Bruce's General Construction -$1,265.00, Nederland City Hall project
4. REGULAR AGENDA
a. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve Ordinance No. 2013-04, setting just and reasonable rates to
be charged by Texas Gas Service. MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve a contract with Public Sector Solutions, LLC for professional
services regarding collective bargaining agreement negotiations. MOTION
CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese and Rogers.
Minutes Continued, March 25, 2013
Noes: None.
Absent: Mayor Nugent.
c. A motion was made by Councilman Albanese and seconded by Councilmember
Rogers to authorize the solicitation of bids for Employee Group Benefits.
MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Council members Austin, Albanese and Rogers.
Noes: None.
Absent: Mayor Nugent.
d. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to authorize an amendment to the Agreement between
the City of Nederland and Sunoco Partners Marketing & Terminals, L.P. subject to
legal review and approval. MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
e. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to approve Ordinance No. 2013-05, amending the FY 2012-2013 budget.
MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
f. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve a payment to the LaBiche Architectural Group, Inc.
MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
g. Stacy Fitch, J.R.· Edwards & Associates, LLP presented the Comprehensive Annual
Financial Report ending September 30, 2012 to City Council. She thanked Cheryl
Dowden and her staff for assisting her with the audit. She reported the process
went smoothly and there were no findings or suggested changes this year.
A motion was made by Councilmember Austin and seconded by Councilmember
Albanese to accept the Fisca l Year 2011-2012 audit as prepared by J. R. Edwards
& Associates, LLP. MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
5. COMMUNICATION
City Manager's Report:
a. Nederland Police Department -12-hour shift
b. City offices will be closed Friday, March 29th in observance of Good Friday.
Minutes Continued, March 25, 2013
6 . ADJOURN
There being no further business a motion was made by Councilmember Rogers and
seconded by Councilmember Albanese to adjourn the ·meeting at 5: 14 p.m.
MOTION CARRIED.
Ayes: Mayor Pro Tern Neal, Councilmembers Austin, Albanese, and Rogers.
Noes: None.
Absent: Mayor Nugent.
ATTEST:
Gay Fergu n/citv Cle~
City of Nederland, Texas
Billy Neal, or Pro Tern
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I ·~
Billy Neal Council Member -Ward II v'
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works /
George Wheeler Building Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director \/
Joni Underwood Executive Secretary v
Angela Fanette Parks Director -v
March 25 2013
Date
ORDINANCE NO. 2013-04
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS SETIING THE JUST AND
REASONABLE RATES TO BE CHARGED BY TEXAS
GAS SERVICE ("TGS") FOR GAS SERVICE FOR
CUSTOMERS IN THE CITY OF NEDERLAND, TEXAS;
REQUIRING REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; AND
DECLARING AN EFFECTIVE DATE FOR THIS
ORDINANCE.
WHEREAS, on or about November 20, 2012, TGS filed a Statement of Intent
with the City Secretary in the City of Nederland, Texas requesting an annual rate
increase of $1 ,587,904 for the South Jefferson County Service Area;
WHEREAS, TGS requested an effective date for the new rate schedule to go into
effect on December 26, 2012;
WHEREAS, in order to exercise its exclusive original jurisdiction and properly
review the requested rates, it was necessary for the City to suspend TGS' proposed
effective date for 90 days until March 26, 2013;
WHEREAS, the City retained the Lawton Law Firm to review TGS' rate request,
retain necessary rate consultants-ReSolved Energy Consulting, and make necessary
rate recommendations to the City;
WHEREAS, on January 31, 2013, the Lawton Law Firm presented the
recommendation of ReSolved Energy Consulting;
WHEREAS, on February 14, 2013, TGS made a settlement proposal to the
Lawton Law Firm for presentation to the City;
. WHEREAS, on February 28, 2013, certain City Officials participated with the
Lawton Law Firm in a settlement conference with TGS;
WHEREAS, on February 28, 2013, TGS agreed to reduce the requested rate
increase by $277,904 to a level of $1,310,000 for the South Jefferson County Service
Area; and
· WHEREAS, the Lawton Law Firm and rate consultant Resolved Energy
Consulting has recommended that the City approve a $1 ,310,000 annual rate increase.
THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS HEREBY
ORDAINS THAT:
SECTION .1. The statements set out in the preamble to this ordinance are
adopted herein as if set forth herein:
SECTION 2. TGS' proposed $1 ,587,904 requested annual rate increase is
denied and the Lawton Law Firm's and Consultant's recommendation for a $1,310,000
rate increase is adopted.
SECTION 3. TGS shall design its rate such that the· residential customer charge
is no more than $16.40 per month and the residential volumetric charge is not more
than $0.1951 per Ccf. The base rate (non-gas) charges for an average residential
customer using 6 Mcf per month shall be as set out below:
--~ ----~-------------------..,..----~---------
Base Rate (Non-Gas) Charges for Customer Using 6 Mcf per Month
Charge Rate 6 Mcf Usage
Customer Charge $16.40 I Mo. $16.40
Volumetric Charge $0.1951 / Ccf lli..21
Total: $28.11
The agreed revenue increase shall be spread across customer classes as set forth on
Attachment A.
SECTION 4. As recommended by ReSolved Energy Consulting and agreed to
by TGS, the return on equity is set at 10.5% and cost of debt is set at 5.18%, with a
capital structure of 54.91% equity and 45.09% debt.
SECTION 5; The depreciation rates to be applied to plant are those included in
TGS's original filing on November 20, 2012.
SECTION 6. The proposed interim rate adjustment tariff is approved. No
proposeq interim rate adjustment (GRIP) fling shall be made until 2014. For purposes of
future determinations of any increase or decreases in the net plant in service of TGS,
the net value of plant in service as of June 30, 2012 of $39,415,879 will be used. Ad
valorem taxes for use in determining any increases or decreases in net plant in service
shall be $343,538.
SECTION 7. TGS shall promptly reimburse the City's rate case expenses which
amounts shall be collected based on a volumetric surcharge per Ccf calculated by
dividing the total municipal rate case expenses by the test year weather normalized
usage of 15, 181,060 Ccf of gas and shall be collected over one year or until ·fully
collected, whichever occurs first.
SECTION 8. TGS shall file tariffs with the City Secretary reflecting the South
Jefferson County $1 ,310,000 annual rate increase as indicated above and the
modifications TGS proposed to its Rules of Service and General Terms and Conditions
for Transportation tariffs as indicated in its filing on November 20, 2012.
SECTION 9. The meeting at which this ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Chapter 551.
SECTION 10. This ordinance shall be effective immediately on passage.
PASSED AND APPROVED this the 25TH day of MARCH, 2013.
Billy Neal, Mayor Pro Tern
ATTEST:
THE LAWTON LAW FIRM, P.C.
701 BrazosSuite500 •Austin, textis 78701 • 512/32L-0019 •Pax: 512/716-8917
Sent via e-mail
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthur, Texas 77643
Mr. Chris Duque
City Manager-City of Nederland
P.O. :Box 967
Nederland, Texas 77627
Mr. Floyd Johnson
City Manager-City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
. .
Mr. Andre Wimer
City Manager-City of Port Neches
634 Ave C
Po1t Neches, Texas 77651
March 5, 2013
Mr. James Black
City Attorney -City of Groves
3535 Calder Avenue, Suite 300
Beaumont, Texas 77706
Mr. Jesse Branick
City Attorney -City of Nederland
221Hwy.69 South, Suite 100
Nederland, Texas 77627
Ms. Val Tizeno .
City Attorney-City of Port Arthur
P.O. B0x 1089
Port Arthur, Texas 77640
Mr. Pete Steele
City Attorney-City of Port Neches
3120 Central Mall Dr.
Port Arthur, Texas 77642
Re: TGS 2013 Statement oflntent Rate Case
Dear Cities:
Attached is a proposed rate ordinance adopting the settlement terms agreed to by TGS
last week. The statutory deadline for approval of the proposed ordinance attached is March 26,
2013. If no action is taken to approve the settled rates, then the original rate increase proposed
by TGS will talce effect by operation of law.
If you have any questions or need any additional information, please feel free to call
ORDINANCE NO. 2013-0X
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS SEnlNG THE JUST AND
REASONABLE RATES TO BE CHARGED BY TEXAS
GAS SERVICE ("TGS") FOR GAS SERVICE FOR
CUSTOMERS IN THE CITY OF NEDERLAND, TEXAS;
REQUIRING REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; AND
DECLARING AN EFFECTIVE DATE FOR THIS
ORDINANCE.
WHEREAS, on or about November 20, 2012, TGS filed a Statement of Intent
with the City Secretary in the City of Nederland, Texas requesting an annual rate
increase of $1 ,587,904 for the South Jefferson County Service Area;
WHEREAS, TGS requested an effective date for the new rate schedule to go into
effect on December 26, 2012;
WHEREAS, in order to exercise its exclusive original jurisdiction and properly
review the requested rates, it was necessary for the City to suspend TGS' proposed
effective date for 90 days until March 26, 2013;
WHEREAS, the City retained the Lawton Law Firm to review TGS' rate request,
retain necessary rate consultants-ReSolved Energy Consulting, and make necessary
rate recommendations to the City;
WHEREAS, on January. 31, 2013, the Lawton Law Firm presented the
recommendation of ReSolved Energy Consulting;
WHEREAS, on February 14, 2013, TGS made a settlement proposal to the
Lawton Law Firm for presentation to the City;
WHEREAS, on February 28, 2013, certain City Officials participated with the
Lawton Law Firm in a settlement conference with TGS;
WHEREAS, on February 28, 2013, TGS agreed to reduce the requested rate
increase by $277,904 to a level of $1,310,000 for the South Jefferson County Service
Area; and
WHEREAS, the Lawton Law Firm and rate consultant ReSolved Energy
Consulting has recommended that the City approve a $1,310,000 annual rate increase.
THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS HEREBY
ORDAINS THAT:
SECTION 1. The statements set out in the preamble to this ordinance are
adopted herein as if set forth herein.
SECTION 2. TGS' proposed $1 ,587,904 requested annual rate increase is
denied and the Lawton Law Firm's and Consultant's recommendation for a $1 ,310,000
rate increase is adopted.
SECTION 3. TGS shall design its rate such that the residential customer charge
is no more than $16.40 per month and the residential volumetric charge is not more
than $0.1951 per Ccf. The base rate (non-gas) charges for an average residential
customer using 6 Mcf per month shall be as set out below:
Base Rate (Non-Gas) Cha~es for Customer UsinQ 6 Met per Month
Charge Rate 6 Met Usage
Customer Charge
Volumetric Cha~ge
$16.40 I Mo.
$0.1951 / Ccf
Total:
·.
$16.40
ill.11
$28.11
The agreed revenue increase shall be spread across customer classes as set forth on
Attachment A.
SECTION 4. As recommended by ReSolved Energy Consulting and agreed to
by TGS, the return on equity is set at 10.5% and cost of debt is set at 5.18%, with a
capital structure of 54.91% equity and 45.09% debt
SECTION 5. The depreciation rates to be applied to plant are those included in
TGS's original filing on November 20, 2012.
SECTION 6. The proposed interim rate adjustment tariff is approved. No
proposed interim rate adjustment (GRIP) fling shall be made until 2014. For purposes of
future determinations of any increase or decreases in the net plant in service of TGS,
the net value of plant in service as of June 30, 2012 of $39,415,879 will be used. Ad
valorem taxes for use in determining any increases or decreases in net plant in service
shall be $343,538.
SECTION 7. TGS shall promptly reimburse the City's rate case expenses which
amounts shall be collected based on a volumetric surcharge per Ccf calculated by
dividing the tot~I municipal rate case expenses by the test year weather nonnalized
usage of 15, 181 ,060 Ccf of gas and shall be collected over one year or until fully
collected, whichever occurs first.
SECTION 8. TGS shall file tariffs with the City Secretary reflecting the South
Jefferson County $1 ,310,000 annual rate increase as indicated above and the
modifications TGS proposed to its Rules of Service and General Tenns and Conditions
for Transportation tariffs as indicated in its filing on November 20, 2012.
SECTION 9. The meeting at which this ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Chapter 551.
SECTION 10. This ordinance shall be effective immediately on passage.
PASSED ANO APPROVED this the 25TH day of MARCH, 2013.
R. A. Nugent, Mayor
ATTEST:
Gay Ferguson, City Clerk
Jesse Branick. City Attorney
..
ORDINANCE NO. 2013-05
AN ORDINANCE OF THE CllY COUNCIL OF THE CllY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 20124
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CllY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year 2012-2013 City Budget; and,
WHEREAS, the City Council deems it necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment ''AH attached hereto; and,
WHEREAS, the 2012-2013 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council
Contingency Account for purposes approved by the City Council; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT the budget for the fiscal year 2012-2013 is amended to allow for ~djustments in
revenues and expenditures as se~ out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publication, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 25u. DAY OF MARCH, 2013.
ATTEST:
~ dwtt1J1i.&?1= G;;FergUfl, City Clerk
APPROVED AS TO FORM AND LEGALITY:
illy Neal, Mayor Pro Tern
City of Nederland, Texas
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2012-2013
DATE: Mardi 25, 2013
DEPARTMENT: Various
FUND: General Fund (01)
Fire Dept Special Fund (24)
Parks Special Fund (25)
Street Improvement Fund (39)
AMOUNT
CURRENT INCREASE PROPOSED
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE) BUDGET
01-0000-4720 Sale of Land -1,450 650.00 1,450,650.00
01-1200-6313 Lecal Services 45,000.00 12,000.00 57,000.00
01-1300.0393 Contractual Services 32 500.00 11,000.00 43,500.00
01-55()()..6350 Buildinq/Structure Improvements 11 900.00 25 000.00 36,900.00
01-9000-6393 Contractual Services 55,000.00 10,000.00 65,000.00
01-900Q.&406 Continoencv 111 000.00 111,000.00l 100,000.00
01-00Q0.6904 Transfer to Parks SMrial Fund 15,000.00 25,000.00 40,000.00
01-00Q0.6907 Transfer to Capltal Outlav Fund 1,200,000.00 428,650.00 1,628,650.00
01-90~939 Transfer to Street Improvement Fund . 950000.00 950,000.00
24-2206-6265 Suoolies/Minor Tools & Eauioment . 2,500.00 2.500.00
24-2206-6333 Travel & Traininq . 4.500.00 4,500.00
25-0000-4910 Transfer In 15,000.00 25000.00 40,000.00
25-0000-8350 Blda, Fixtures & Grounds . 12 500.00 12,500.00
25-5102-6265 Sunnlies/Minor Tools & Eauioment 500.00 2,500.00 3.000.00
25-5103-6720 Sida, Fixtures & Grounds -10,000.00 10,000.00
39--0000-4910. Transfer In -950000.00 950,000.00
39-0000.6393 Contractual Services 35,000.00 250,000.00 285.00000
39-0000-6730 Street Improvement 680,000.00 700,000.00 1,580,000.00
JUSTIFICATION
Funds from the Sunoco land sale are received in the General Fund and then distributed to various line-items to cover closing costs (l.e@!I) and
the remainder is allocated to the Library ($25K) and transferred out to the Parks Special Fund ($25K), Street Imp Fund ($950K), and Capital
Outlay Fund ($428.650). Funds are allocated in the Parks Special Fund and Street Improvement Fund with the transfers-in. Jn addition. funds
arc transferred from Contingency to City Manager's dept to cover Public Sector Solutiom contract costs. Finally. donated funds are
allocated in the Fire Dept Special Fund.
Dept Head Signature;;.:;.._ __________________ _ Date: ______ _
Finance Director: Date: ______ _
Date Approved: Date Posted: ______ _
Page ____ of ____ _
ISCAL YEAR:
ATE:
EPARTMENT:
FUND:
ACCOUNT NO.
30-0000-4350
30-0000-4800
30-0000-4910
30-0000-6265
30-0000-6393
30-0000-6720
30-0000-6744
31-0000-4901
31-0000-6265
31-0000-6393
31-0000-6 720
31-0000-6930
01-~393
01-~907
.-
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2012-2013
March 25. 2013
Various
Port Security Grant Fund (30)
Capital Ou1tay Fund (31)
General Fund (01)
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Federal Grant Revenue -2 003.333.00
Other Financial Sources 2.100 000.00
Transfer In -250 000.00
Suoolies/Minor Tools & Eouioment -125 000.00
Contractual Services -501,200.00
BuildinRS Fixtures & Grounds -3,000 000.00
Misa:llancous Eouioment -435,000.00
Transfer fi'om General Fund 1.628,650.00 55,000.00
Suoolies/Minor Tools & Eouioment -50.ooo.oo
Contnctual Services -111135.00
Buildinll;S, Fixtures & Grounds 1.200.000.00 65 000.00
Transfer to Pon Sccuritv mull fund -250.000.00
Contractual Services 65,000.00 (55.000.00)
Transfer to Caoital Outlay Fund 1.628.650.00 55.000.00
PROPOSED
BUDGET
2003 333.00
2 100,000.00
250,000.00
125,000.00
501.200.00
3,000,000.00
435 000.00
-
1,683,650.00
so 000.00
111,135.00
1.265.000.00
250.000.00
-
10.000.00
1.683.650.00
-u TOTAL -4,522,300.00 8,945,668.00 13,467,968.00
JUSTIFICATION
Funds are allocated for the Nederland Public Safety Complex project In addition, additional line-items are established to oomplete
the City Hall project. Funds are transferred from the capital outlay fund to port security fund.
Funds from the General Fund contractual services line-item are transferred to the Capital Outlay fund.
Dept Head Signature._:'--------------------Date: -------
Finance Director: Date: ______ _
Date Approved: Date Posted: ______ _
Page ____ of ___ _
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:00 p.m. April 1, 2013
1. MEETING
The special meeting was called to order at 4:00 p.m. by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. EXECUTIVE SESSION
The regular meeting was recessed at 4: 02 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.072, Deliberations of Real Property; and Chapter 551.071, Consultation with
City Attorney.
3 . RECONVENE
A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Albanese to approve an amendment to the Purchase and Sale Agreement between
the City of Nederland and Nederland Economic Development Corporation in regard
to the Right of First Refusal option. Language shall be amended to include a 10-
year term and for the remaining city property to stay one tract as illustrated in
Exhibit 1. Agreement changes will be contingent upon legal review and approval.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
4. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Council member Albanese to adjourn the meeting at 4: 52 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
City of Nederland, Texas
...---------------~-------------
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor \/
Talmadge Austin Council Member-Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill (
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance
Darrell Bush Police Chief
Gary Collins Fire Chief
Steve Hamilton Director of Public Works v
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Angela Fanette Parks Director
April 1, 2013
Date
ff ·t· • ...,,_.. TRACT 1 = 874.245 ACRES TOTAL 609. 109 ACRES OUT OF TH£ CITY OF N£D£RlAND 934.0 ACR£ TRACT . FILM FIL£ COD£ NUMBER 101-27-1067 J£FT£RSON COUNTY, IFXAS 265. 136 ACRES OUT OF TH£ CITY OF N£D£RLAND CALLED 267.492 ACR£ TRACT FILM FIL£ COD£ NUMBER 100-87-0110 J£FT£RSON COUNTY, WG4S PLAT OF SUNOCO PARTNERS MARKETING & TERMINALS, L.P. RIGHT OF FIRST REFUSAL ON TRACT 1 FROJI THE CITY OF NEDERLAND 0 1400 2800 4200 ~---~ I -~ f.H.0 ACllt "'4C1" fUI IUC'OOI"-. 101-a1-1CM1 ~c.o..n-. "· llU; • .i_\.' ("f.fli\·~~/J ·"f:ut,,r·r .l~t;;;·'f,lr-,. ,\I JJIJf,;,.· J:J TRACT 1 «Jg.Jog ACR83 Hi liN" t'A."'"f~I.!. !'"l.111'1.i AlJ."'1/t.H'1' l\'l JIPt.R li1C "" ... ..,,.,._ n1~•UAOIE""'4CT n.MIUCOOCNlrlt. JIJ0..41-()11'1 ~"""" ZM.130 ACllliS i--~· ... .... , .-:-'4 .~i~' ~-~ r'•r...,' !~~ ~"f· EXHIBIT A .:: ~~ , . .;/ ·l; l' t~ .• ~,.,.,.. .-ota ~OJ'YOF~ ·~AOtC"JllMt;T "nutnu-cox-. • 10,..z1-'°'' ~m."'-:C. ~· ~' _, '" ... --~~" ~~* t·t· (,::.~-o" ~l,.J , .. J $-A .. ~ i;~-l' J' I i I .~ ,;-......... I .,:\~' ~ti ... _c/ t~· f 1"'i ~~'f ~-.;, ~~~ '!·"~ ·~:...· ~~if ¥'* MARCH ZT, 201' sfi"J'inc P.O. ~67 S'U8(c, 1ElC4S' 718$4 4'>1~207.f
SPECIAL MEETING OF THE CITY COUNCI L OF THE
CITY OF NEDERLAND
3:00 p.m. April 22, 2013
1. MEETING
The specia l meeting was called to order at 3:00 p.m. by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. PROPOSED LAYOUT
Chris Duque, City Manager, reported the proposed layout for the City of Nederland
Public Safety Building, is divided into two separate sections-police and fire with the
Court Room/Emergency Operations Center in the center. Public access to the
building is centralized to the front entrance; access to the building will be controlled
with security doors with receptionists to greet the public in the lobby. In the police
station, the detectives' offices and patrol area have been grouped together for
greater efficiency. The restrooms/showers have been upgraded and repaired.
Central Dispatch will not be affected by this project.
Mr. Duque advised the sleeping quarters in the fire station have been expanded to 6
beds with a small dorm for eight. The dayroom/kitchen is located off the large dorm.
Three double deep bays are proposed which will house six pieces of fire
equipment/apparatus. Firefighting equipment storage is accessed off the bays.
Mr. Duque went on to report the Information Technology staff and equipment will
remain at the building. The "shell" space is un-programmed space which facilitate.s
future growth for either public safety department, as well as being available for a
·staff sleeping area during an emergency.
Mr. Dohn LaBiche, The LaBiche Architectural Group, Inc., was in attendance and
answered questions from councilmembers.
3. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Albanese to adjourn the meeting at 3:49 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v:-
Bert Rogers Council Member -Ward IV v
Chris DuQue City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
·Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Angela Fanette Parks Director
April 22, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. April 22, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Albanese to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor N.ugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes-April 1, 2013 special meeting and April 8, 2013 regular meeting
b. March 2013 Departmental Reports
c. Payments:
• Carroll & Blackman, Inc. -$91.00, Phase II MS4 Permit Implementation
Services
• DRS & Associates -$13,200.00, Hardy Avenue elevated water tower re-
paint project
4. REGULAR AGENDA
a. Cindy Fertita was present to receive a proclamation. She thanked City Council for
their continued support. She reported her organization is working within the
schools in the Nederland community promoting sexual assault awareness.
A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to approve a Proclamation in regards to Sexual Assault
Awareness and Prevention Month. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. Misty Craver accepted the proclam ation and thanked City Council for always
supporting National Crime Victims Rights Week.
Minutes Continued, April 22, 2013
A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Austin to approve a proclamation in regards to National Crime Victims Rights
Week. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. The regular meeting was recessed and a Public Hearing was called to order at
4:42 p.m. by Mayor Nugent for the purpose of receiving questions and/or
comments regarding rehabilitation or condemnation of abandoned and
dilapidated structures at 7 addresses. George Wheeler, Ch ief Building Official,
made the following reports on each address:
• 303 North 22nd Street -the dilapidated residential structure owned by,
Edil Cunningham, is a danger to the public health and safety and
considered to be substandard and unfit for human habitation. There was
no one in attendance to speak in favor or against this property.
• 2011 Avenue E -the dilapidated residential structure owned by, Erin Ann
Maxey being the same person as Erin Jenkins Miller, is a danger to the
public health and safety and considered to be substandard and unfit for
human habitation. There was no one in attendance to speak in favor or
against this property.
• 318 Hill Terrace Drive -the dilapidated residential structure owned by,
Alan Cramer Investments, Inc., is a danger to the public health and safety
and considered to be substandard and unfit for human habitation. There
was no one .in attendance to speak in favor or against this property.
• 816 North 14th Street -the dilapidated residential structure owned by,
Arthur E. Halter, is a danger to the public health and safety and
considered to be substandard and unfit for human habitation. There was
no one in attendance to speak in favor or against this property.
• 145 and 147 Atlanta Avenue -the dilapidated residential structure, which
is owned by Waleed A. Khan, is a danger to the public health and safety
and considered to be substandard and unfit for human habitation. Mr.
Khan who resides at 104 S. Twin City Highway, was present to speak in
favor of repairing the structure. He asked for 2 weeks to get an estimate
from a licensed contractor and forward the plan to the Chief Building
Official.
• 2423 Nederland Avenue - the uncompleted commercial structure, which is
owned by M.A. Khan, is a danger to the public health and safety and
considered to be substandard and unfit for human habilitation. Mr. Khan
reported that his intentions are to completely finish what was started on
the repairs to this structure. Mr. Wheeler informed the owner he would
need to reapply for a bu ilding permit. He also advised the owner the
Specific Use Permit (SUP), wh ich allowed the installation of gasoline
pumps, has expired and if he wanted to sell gasoline, he would need to
start the SUP process over again.
• 1136 Jackson Avenue -the dilapidated residential structure, which is
owned by Thomas Earl Adams, is a danger to the public health and safety
Minutes Continued, April 22, 2013
and considered to be substandard and unfit for human habilitation. Mr.
Thomas was present and stated he has applied for housing assistance
through the South East Regional Planning Commission. He advised he
was unable to demolish the structure and requested additional time to see
if he was able to receive federal funds to assist in demolishing and
rebuilding his house. Mr. Wheeler reported 90 days would be the
maximum that could be given and extensions may be requested after the
90 days has passed.
Chris Duque, City Manager, stated notice of the public hearing was published and all
property owners were sent notification via certified mail. He advised Mr.
Wheeler followed basic criteria, in accordance with Ordinance No. 2001-07, when
determining whether a building should be demolished. He added City Council retains
the ultimate authority to determine what action, if any, will be taken with respect to
removal or repair of a structure.
There being no further questions and/or comments, the Public Hearing was
adjourned and the regular meeting was reconvened at 5:08 p.m. by Mayor Nugent.
d. i. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Neal to order the demolition of the structure located at 303 N. 22nd Street
and clearance of the lot within forty-five ( 45) days, hence the City will cause the
work to be performed and a lien filed on the property. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Austin and seconded by Mayor Pro
Tern Neal to order the demolition of the structure located at 2011 Avenue E and
clearance of the lot within forty-five ( 45) days, hence the City will cause the work
to be performed and a lien filed on the property. MOTI ON CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iii. A motion was made by Council member Austin and seconded by Mayor Pro
Tern Nea l to order the demolition of the structure located at 318 Hill Terrance
Drive and clearance of the lot within forty-five ( 45) days, hence t he City will
cause the work to be performed and a lien filed on the property. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iv. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Neal to order the demolition of the structure located at 816 N. 14th Street
and clearance of the lot within forty-five ( 45) days, hence the City will cause the
work to be performed and a lien filed on the property. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
v . A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to order the owner to hire a building contractor to
secure a permit for the property located at 145 and 147 Atlanta Avenue within
fourteen (14) days of April 23, 2013. The Contractor shall submit to the City for
review and approval a scope of work stating all repair work to be performed and
Minutes Continued, April 22, 2013
the time needed to complete the repair work or within forty-five ( 45) days
beginning May 6, 2013, to demolish the structure and to clear the lot, hence the
city will cause the demolition work to be performed and a lien fi led on the
property. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
vi. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to order the owner to re-permit and re-start the work on
the commercial building located at 2423 Nederland Avenue without gas pumps
within fourteen (14) days from April 23, 2013 or within sixty (60) days beginning
May 6, 2013 to demolish the structure and clear the lot, hence the City will cause
the demolition work to be performed and a lien filed on the property. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
vii. A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to order the demolition of the structure located at 1136
Jackson Avenue and clearance of the lot within ninety (90) days. After the initial
ninety (90) days, the City will reconsider another ninety (90) day extension if it is
justified that a decision may be made during .this period by the South East Texas
Regional Planning Commission regarding the owner's application for a hurricane
Ike housing grant, or if the extension is not justifiable, at such time the City will
cause the demolition work to be performed and a lien filed on the property.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to accept the Quarterly Investment Reports from the Finance Director.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. Chris Duque, City Manager, advised Dohn LaBiche and a representative from
Bruce's Construction were present to give an update on the Nederland City Hall
project.
Dohn LaBiche, The LaBiche Architectural Group, Inc. reported there have been
some issues with weather and deliveries on certain items. He stated grade
beams were being installed and foundation would be poured soon. He added
weekly reports would be submitted for Council review.
Ricky Morgan, Job Superintendent, reviewed the new schedule and estimated the
project would be completed by the end of August as planned. He stated the
building would be delivered on May 17th and there should be no problems
meeting the end of August date.
Minutes Continued, April 22, 2013
g. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to amend Ordinance 164, setting the calendar for regular City Council
meetings May 2013 -April 2014. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
h. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to approve Ordinance 2013-06 amending the FY 2012-
2013 budget. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
i. Bids/Purchases:
i. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to authorize the purchase of furniture for Nederland City
Hall via BuyBoard, HCAC, or state-approved contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to award bid for Water Inventory Items. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iii. A motion was made by Councilrnember Austin and seconded by
Councilmember Rogers to authorize the solicitation of bids for 2013 Concrete
Street Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Cou ncil members 'Austin, Neal, Albanese, and Rogers.
Noes: None.
iv. A motion was made by Council member Austin and seconded by Mayor Pro
Tern Neal to authorize the solicitation of bids for Emergency Response Products,
Eq uipment, and Services. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
v. A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to aut horize the solicitation of bids for the Hurricane Ike
Round 2.2 -Traffic Signals Lights/Signs project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
vi. A motion was made by Councilmember Austin and seconded by Mayor Pro
Tern Neal to authorize the solicitation of bids for the Hurricane Ike Round 2.2 -
Wastewater Treatment System generators project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
vii. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to authorize the purchase of a 2013 F-550 cab and
Minutes Continued, April 22, 2013
chassis for the Nederland Fire Department via BuyBoard, HGAC, or state-
approved contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
j. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tern
Neal to approve the proposed layout and design of the Nederland Public Safety
Complex. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. COMMUNICATION
City Manage~s Report:
a. National Day of Prayer -May 2 nd@ 7:30 a.m.
6. ADJOURN
There being no further business a motion was made by Councilmember Albanese and
seconded by Councllmember Rogers to adjourn the meeting at 5:45 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
~1Mh---G~)IFer9USn/ciyaerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I ~
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member-Ward IV v
Chris Duque City Manager \/
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director ·v
April 22, 2013
Date
AN AMENDMENT TO ORDINANCE NO. 164
AN ORDINANCE SETTING REGULAR OATES FOR
COUNCIL MEETINGS TO BE HELO FROM MAY 6,
2013 THROUGH APRIL 28, 2014.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS:
THAT the following dates will be and are hereby regular meeting dates for
the meetings of the City Council of the City of Nederland, Texas. All of the below
regular meetings shall begin at 4:30 p.m. on each of the following dates:.
May 6 and 20, 2013
June 10 and 24, 2013
July 8 and 22, 2013
August 12 and 26, 2013
September 9 and 23, 2013
October 14 and 28, 2013
November 11and18, 2013
December 9 and 16, 2013
January 13 and 27, 2014
February 10 and 24, 2014
March 10 and 24, 2014
April 14 and 28, 2014
ANY ANO ALL ordinances of the City of Nederland, Texas-which conflict
with any provisions of this amendment are hereby expressly repealed.
PASSED AND APPROVED by the City Council at a regular meeting this
22rd day of April, 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
ORDINANCE NO. 2013-06
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012-
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year 2012-2013 City Budget; and,
WHEREAS, the City Council deems it necessary to amend the current' budget to adjust
revenues and expenditures as set out in Attachment "A" attached hereto; and,
WHEREAS, the 2012-2013 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council
Contingency Account for purposes approved by the City Council; and,
NOW,. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT the budget for the fiscal year 2012-2013 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publication, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 22nd DAY OF APRIL, 2013.
M~
City of Nederland, Texas
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
01-0000-4120
01-2100-6110
01-2100-6111
01-2200-6222
01-9000-6336
52-3300-6222
52-9000-6406
70-0000-4390
70-0000-4392
70-0000-4394
70-1700-6315
70-2100-6111
70-2100-6406
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2012-2013
April 22, 2013
Various
General Fund (01)
Solid Waste Fund (52)
Central Dispatch Fund (70)
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Industrial in lieu of Truces 1,300,000.00 55,000.00
Salaries & Wacies 1,509,076 5,000
Overtime 175,000 50,000
Motor Vehicle Fuel 10,500 5,000
Retiree Accrued Compensation 20,000 (5,000'
Motor Vehicle Fuel 70,000 6,000
Continciencv 30,937 (6,000)
Contribution-Groves 368,980 36,722
Contribution-Port Neches 317,780 36,722
Contribution-Nederland 392,124 36,722
Computer System 109,000 110,166
Overtime 25,000 10,000
Continciencv 20000 (10 000)
JUSTIFICATION
PROPOSED
BUDGET
1,355,000.00
1,514,076
225,000
15,500
15,000
76,000
24,937
405,702
354,502
428,846
219,166
35,000
10,000
These are mid-year budget amendments. The transfers are balanced with either allocation decreases or revenue increases to
offset the additional expenses, such as Overtime or Fuel. The amendments will not harm service to the public.
Date: -------
Finance Director: Date: -------
Date Approved: Date Posted: -------
Page ____ of ___ _
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:45 p.m. April 18, 2013
1. MEETING
The special meeting was called to order at 4:45 p.m . by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas. See
attached for quorum.
2. SUNOCO/NEDC LAND SALE
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern Neal
to approve Ordinance No. 2013-05, authorizing the transfer of rea l property
(approximately 259 acres) to the Nederland Economic Development Corporation.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
3. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 4:52 a.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nuaent Mayor \/
Talmadge Austin Council Member -Ward I \./
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque Citv Manager v
Gav Ferguson City Clerk v
Jesse Branick City Attorney v
Chervl Dowden Director of Finance
Darrell Bush Police Chief
Gary Collins Fire Chief
Steve Hamilton Director of Public Works
Georae Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Anaela Fanette Parks Director
R.~ G~~&.~
April 18, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. April 8, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Councilmember
Albanese to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Alban.ese, and Rogers.
Noes: None.
Absent: Councilme,l).ber Austin.
a. Minutes-March 25, 2013 regular meeting
b. March 2013 Departmental Reports
c. Tax Assessor Collector Report -February 2013
d. Payments:
• March 2013 monthly bills
• Walker Partners -$4,275.00, 2010 Water System Improvements project
• Carroll & Blackman, Inc. $1,458.00, Phase II MS4 Permit
Implementation Services
• Schaumburg & Polk, Inc. -$3,950.27, 19th Street Waterline Rehabilitation
project
• Schaumburg & Polk, Inc. -$940.00, 2013 Concrete Street Rehabilitation
project
• LaBiche Architectural Group, Inc. -$1,998.70, City Hall project
• Allee, Inc. -$24,806.40, 1atti Street Waterline Replacement project
4. REGULAR AGENDA
a . A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve a Proclamation in regards to Fair Housing Month. MOTION
CARRIED.
Minutes Continued, April 8, 2013
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
b. Angela Fanette, Director of Parks and Recreation, made a presentation to Jeff
Rogers of the Nederland Domino's Pizza. She thanked him for his support of all
the activities held within our community and presented him with a plaque.
c. A motion was made by Councilman Albanese and seconded by Mayor Pro Tern
Neal to appoint Jerry Smith to the Zoning Board of Appeals. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese and Rogers.
Noes: None.
Absent: Councilmember Austin.
d. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to set a Public Hearing date of April 22, 2013 at 4 :30
p.m. for the purpose of receiving comments regarding the rehabilitation or
condemnation and demolition of abandoned and/or dilapidated structures at the
following addresses: 303 N. 22nd Street, 2011 Avenue E, 318 Hill Terrance Drive,
816 N. 14th Street, 145 and 147 Atlanta Avenue, 2423 Nederland Avenue, and
1136 Jackson Avenue. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Aust in.
e. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Rogers to approve an amendment to the !PS Advisors, I nc. Agreement for
Consulting Services for Employee Insurance Benefits. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
f. Ch ris Duque, City Manager, reported this authorization request is for the bid of
SCADA Radio System for the Water and Wastewater proj ect. Mr. Duque
explained the existing radios were installed when the water plant project was
completed in 1995, but today the radios are no longer manufactured or
supported. This was a planned component of the Nederland Water Treatment
Plant Repairs/Improvements project; however, t he bid specifications called for
equipment now found to be incompatible. Staff consulted with the project
engineer and elected to remove this work f rom the project and bid on our own.
A motion was made by Councilmember Rogers and seconded by Cou ncilmember
Albanese to authorize the solicitation of bids for the SCADA Radio System for the
Water and Wastewater Systems project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
Minutes Continued, Aprils, 2013
g. A motion was made by Councilmember Albanese and seconded by Mayor Pro Tern
Neal to approve an Interlocal Agreement for street repair and maintenance with
Jefferson County. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
h. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve Resolution No. 2013-04, approving an Interlocal Agreement
to participate in The Cooperative Purchasing Network (TCPN). MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
i. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to approve Resolution No. 2013-05 regarding House Bill
442, which addressed public safety communication. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Alban·ese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
j. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Neal to approve the renewal of an Interlocal Agreement for Operation of a
Regional 9-1-1 System with the South East Texas Planning Commission.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
·Noes: None.
Absent: Councilmember Austin.
S. COMMUNICATION
City Manager's Report:
a. Construction project update. Steve Hamilton made a brief presentation of
construction projects. He reported 18th Street Waterline Rehabilitation project
is complete and final documentation is being prepared by the contractor. City
Hall project is underway. The plumber found a discrepancy so the plans had
to go back to the engineer for verification. Testing has been completed on
street program and authorization for bids should be on council agenda soon.
b. Art-In-The-Park -Saturday, April 13th@ Doornbos Park.
6. ADJOURN
There being no further business a motion was made by Councilmember Albanese and
seconded by Councilmember Rogers to adjourn the meeting at 5: 12 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Minutes Continued, April 8, 2013
Noes: None.
Absent: Councilmember Austin.
ATIEST:
Jf!J~~
City of Ne rland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nuaent Mayor ·V
Talmadge Austin Council Member -Ward I
./ v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gav Ferguson City Clerk v
Jesse Branick City Attorney v
Chervl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
Georae Wheeler Building Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Anaela Fanette Parks Director v
GayFergon, City cl
AprilB.2013
Date
J. SHANE HOWARD
TAX ASSESSOR-COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $520,291.91 , represents all taxes collected fo r CITY OF NEDERLAND during
the month of February 2013.
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 •BEAUMONT, TEXAS 77704-21 12
PHONE: (409)835-8516 •FAX: (409)835-8589
RESOLUTION NO. 2013-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND; TEXAS, APPROVING THE TERMS
AND CONDITIONS OF AN INTERLOCAL AGREEMENT
BETWEEN THE REGION 4 EDUCATION SERVICE
CENTER, WHICH SPONSORS THE COOPERATIVE
PURCHASING NETWORK (TCPN), PROVIDING FOR A
COOPERATIVE PURCHASING PROGRAM FOR
GOODS AND SERVICES; DESIGNATING THE
NEDERLAND CITY MANAGER, AS OFFICIAL
REPRESENTATIVE OF THE CITY OF NEDERLAND
RELATING TO THE PROGRAM.
WHEREAS, the City Council of the City of Nederland, Texas has been presented a
proposed lnterlocal Agreement by and between the Region 4 Education Service Center, which
sponsors The Cooperative Purchasing Network, and the City of Nederland and found to be
acceptable and in the best interests of the City of Nederland and its citizens, are hereby in all
things approved.
WHEREAS, the City of Nederland, Texas, pursuant to the authority granted under
Sections 271.101 to 271.102 of the Local Government Code, desires to participate in the
described purchasing program sponsored by the Region 4 Education Service Center which is
known as The Cooperative Purchasing Network, and in the opinion that participation in this
program will be highly beneficial to the taxpayers through the anticipated savings to be realized.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
Section I. The Terms and conditions of the agreement having been reviewed by the
City Council of the City of Nederland and found to be acceptable and in the
best interests of the City and its citizens are hereby in all things approved.
Section II. The City Manager of the City of Nederland under the direction of the City
Council is hereby designated to act for the City in all matters relating to The
Cooperative Purchasing Network including the designation of specific
contracts in which the City of Nederland desires to participate.
Section Ill. This resolution shall become effective from and after its passage.
PASSED AND APPROVED by the City Council of the City of Nederland, Texas, this
the 8111 day of April 2013.
ATTEST:
~y erg ~City Ci
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
R. . Nugent, Mayor c:,:o ederland, Texas
RESOLUTION 2013-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS ENDORSING THE FUNDING OF
HOUSE BILL 442 TO IMPROVE COMMUNICATIONS FOR
PUBLIC SAFETY
WHEREAS, more than 5,800 fire, police, emergency management and emergency medical
service agencies respond daily to emergency and life threatening incidents throughout Texas; and
WHEREAS, the ability for public safety agencies from various jurisdictions in the counties, region
and the state to communicate expediently can mean the difference between life and death-for citizens
andior F=lrst Responders; and
WHEREAS, House Bill 442 acknowledged the critical need for public safety communications in
Texas by establishing a fund dedicated to sustaining and furthering the interoperable communications
strides made in Texas;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS THAT:
Dedicating $30,700,000 annually to the 2011 Texas Enacted House Bill 442 for public safety
communications will make for a safer Texas-for our citizens and the First Responders responsible for
protecting them.
PASSED, APPROVED AND ADOPTED this 8th day of April, 2013.
AT.TEST:
fi,_ 1 /2£~/l~L~ G'aYFef9uiS'n. City Clerk
City of Nederland, Texas
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. May 6, 20 13 ·
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2 . INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
3. CONSENT AGENPA -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 Rogers and seconded by Councilmember
Albanese to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes-April 1, 2013 special meeting, April 18, 2013 special meeting, April 22,
2013 workshop, and April 22, 2013 regular meeting
b. Requests:
• Consider action approving a request from Brian English to utilize the
Nederland Recreation Center gymnasium for a basketball league and
waive associated fees.
• Consider action approving a request from Keith Barrow to utilize the
soccer field at Doornbos Park for a soccer camp and league and waive
associated fees.
• Consider action approving a request from Adaptive Sports for Kids to
utilize the Nederland Recreation Center gymnasium for a basketball league
and to waive associated fees.
c. Payments:
• April 2013 monthly bills
• T & N Laboratories -$13,771.00, 2013 Street Program Quality Control
Testing Services
• Walker Partners -$3,825.00, 2010 Water System Improvements project
• Alica, Inc. $34,670.39, Nederland Water Treatment Plant
Repairs/Improvements project
• DRS & Associates $12,650.00, Hardy Avenue Water Tower
Improvements
• Bruce's General Construction -$48,663.00, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$36,400.00, Nederland Public Safety
Complex project
Minutes Continued, May 6, 2013
4 . REGULAR AGENDA
a. Jon Zack Waybright was in attendance to accept the proclamation. He thanked
City Council for helping them raise awareness for motorcycle safety.
A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to approve a proclamation in regards to Motorcycle Safety
and Awareness Month. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. Gary Graham, Walker Partners, was in attendance to give an update on the
Water Treatment Plant Repairs/Improvements project. He reported there have
been delays in the control system programming and the issue was resolved in a
meeting held on Friday with the contractor. He realized the May 1st deadline for
project completion has passed and estimated the actual completion would be
within 2 -3 weeks. He added the SCADA program currently used is out of date
and needed to be updated.
c. A motion was made by Councilmember Albanese and seconded by
Councilmember Austin to approve final payment and release of retainage to
Maguire Iron, Inc. -Repair and Painting of the Hardy Avenue Elevated Water
Storage Tank project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. Finance:
i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to appoint Edwards & Fontenote, LLP (now known as J. R. Edwards &
Associates, LLC) to perform the City's audit for Fiscal Year 2012-2013. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Albanese and seconded by
Councilmember Rogers to rescind the contract with Coastal Securities LTD as the
City's financial advisor. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
111. A motion was made by Councilmember Rogers and seconded by
Councilmember Albanese to appoint Capital Advisors, LLC as the City's financial
advisor. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Rogers and seconded by Councilmember
Albanese to approve the purchase of a ShoreTel IP Phone system for City Hall via
state-approved contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, May 6, 2013
f. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to postpone consideration of a lease agreement with Albanese Nederland
SPE, LLC for the temporary housing of the Nederland Police Department.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. COMMUNICATION
City Manager's Report:
a. Construction project update -Steve Hamilton reported the 18th Street is
complete and waiting on paperwork from contractor. Concrete street work
project has been advertised and bid opening is scheduled for May 30th. The
initial report should be received by next council meeting regarding the street
asphalt work project. The slab for city hall has been poured and delivery of
the building is expected on May 17th. Environmental was cleared on the
Nederland Public Safety Building and also on the Hurricane Ike Disaster
Program.
6 . ADJOURN
There being no further business a motion was made by Mayo~ Nugent and seconded
by Councilmember Albanese to adjourn the meeting at 5:08 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
City of Nederland, Texas
ATTEST:
!1Qa1~ ~LMYV Ga)lfe;:gu nJCity Cle~
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nu ent Ma or v
Talmad e Austin Council Member -Ward I
Bill Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Ro ers Council Member -Ward IV v
Chris Duque Ci v
Ci Clerk v
Jesse Branick Ci v
Che I Dowden Director of Finance v
Darrell Bush Police Chief
Ga Collins Fire Chief v
Steve Hamilton Director of Public Works \/
Geor e Wheeler Buildin Official \/
Victoria Klehn Librarian
Human Resources Director
Joni Underwood Executive Secreta
Parks Director
May 6, 2013
Date
ORDINANCE NO. 2013-05
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AUTHORIZING THE TRANSFER/SALE
OF 259 ACRES OF LAND, MORE OR LESS, TO THE
NEDERLAND ECONOMIC DEVELOPMENT CORPORATION
FOR FUTURE ECONOMIC DEVELOPMENT
WHEREAS, the City of Nederland (the "City") is authorized to transfer/sale the property
as indicated herein in accordance with Chapter 253, Section 253.009 of the Texas Local
Government Code; and
WHEREAS, Nederland Economic Development Corporation (the "NEDC"), as a Type B
corporation, is authorized by Jaw to undertake community development projects that include
Propane/Butane storage and transfer facilities; and
WHEREAS, on December 17, 2012, the Nederland City Council unanimously approved
the sale of 255 acres of land, more or less, (259.269 acres of land, more or less, as further
described in Exhibit "A' attached hereto, the "Property") to the NEDC, along with the right of
first refusal for an additional tract (terms were set by the City Council on April 1, 2013), all of
which was for economic development; and
WHEREAS, the Property was conveyed to the City as a gift as part of a larger tract of land
and accepted by the City as documented in the December 17, 1985 City Council minutes
attached hereto as Exhibit "B", and
WHEREAS, the NEDC has found that the Property is in an area and adjacent to an area
designated for development by'the NEDC; and
WHEREAS, Section 253.009, Texas Local Government Code, permits the City to convey
the Property to the NEDC without complying with the other notice or bidding requirements
prescribed by other law; and
WHEREAS, the conveyance of the Property to the NEDC shall comply with the
requirements of Section 5.022, Texas Property Code, except a covenant of general warranty is
not required; and
WHEREAS, the NEDC shall purchase the Property from the City for at least
$1,450,650.00, which is the fair market value and fair consideration for the Property; and
WHEREAS, as further fair consideration for the sale of the Property, the NEDC agrees to
develop, or cause the development of, the Property in accordance with the form of the
Restrictive Covenant Agreement attached hereto as Exhibit "C"; and
WHEREAS, the City desires to approve the terms and conditions for the sale and
development of the Property to the NEDC;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS THAT:
Section 1.
The facts and findings in the recitals hereto are hereby found to be true and correct and
are incorporated herein for all purposes.
The City hereby approves and authorizes the sale of the Property to the NEDC in
accordance with this Ordinance, and further authorizes the Nederland City Manager,
Christopher Duque, to execute all documents related to the sale of the Property to the
NEDC, for future economic development, to carry out the intent of this Ordinance.
Section 2. SAVINGS CLAUSE
Except as hereby amended, any provisions of the code of ordinances or directives of the
City of Nederland, Texas, not in conflict with this Ordinance shall remain in full force and·
effect, unimpaired hereby.
Section 3. SEVERABIUTY CLAUSE
The invalidity of any section, clause, sentence or provision of this ordinance shall not
affect the validity of any other part thereof. The effects of this Ordinance shall at all
times be in compliance with state, federal, local, and other guidelines as directed.
Section 4. PROPER NOTICE AND MEETING
It is hereby officially found and determined that the meeting at which this Ordinance
was passed was open to the public and that public notice of the time, place and purpose
of said meeting was given as required by the Open Meetings Act, Chapter 551 of the
Texas Government Code.
PASSED AND APPROVED on this the 18TH day of April, 2013.
ATTEST:
APPROVED AS TO FORM:
.....
.·
'\
Restriction Agreement
WHEN RECORDED RETURN TO:
STATE OF TEXAS
COUNTY OF JEFFERSON
§
§
§
(Space Above For Recorder's Use Only)
RESTRICTION AGREEMENT
This RESTRICTION AGREEMENT ("Agreement") is made and entered into as of the
Effective Date by and between the City of Nederland, a Texas hom~rule municipality ("City"),
and Sunoco Partl1ers Marketing & Terminals L.P., ("Developer"), a Texas limited partnership,
acting by and through their respective authorized officers or agents or partners.
RECITALS
WHEREAS, as of the Effective Date, pursuant to the Purchase Agreement, Developer
has purchased the Property from the Nederland Economic Development Corporation (''NEDC11
);
and .. ,,.
WHEREAS, prior to or concurrent with the sale of the Property to Developer, NEDC
purchased tfi' Property from City pursuant to that certain Purchase and Sale Agreement effective
April .Z.J , 2013, between City and NEDC ("the City Contract'') pursuant to Texas Local
Government Code §253.009; and
'WHEREAS, as a condition of the sale of the Property to NEDC and pursuant to Texas
Local Government Code §253.009, the City Contract requires that NEDC have the Property
redeveloped and used for the Required Use; and
WHEREAS, NEDC has, as a condition of the conveyance of the Property to Developer,
restricted tho use of the Property and required Developer to develop the Property with the
Improvements in accordance with the terms and conditions set forth herein; and
WHEREAS, as a condition to and in consideration of the NEDC' s conveyance of the
Property to Developer, Developer bas agreed to develop the Property in accordance with th.is
Restriction Agreement, and
WHEREAS, Developer desires to grant City an option to repurchase the Property in the
vent Developer fails to cause Commencement of Construction or Completion of Construction
ereinafter defined) of the Improvements in accordance with th.is Restriction Agreement, subject
the terms and conditions hereafter set forth;
NOW, THEREFORE, in consideration of the sum of TEN AND N0/100 DOLLARS
($10.00) and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, City and Developer hereby agree as follows:
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#4274205.2
c(i,V:,;; ':. ~cnl ?_~rs
fy~ ,~C "r -/(~'P'l.tc.f,~ t?~•._.....,pL
ArticJe l
Property Subject to Declaration
The Property shall be owned, held, leased, transferred, sold, mortgaged and/or conveyed
by Developer and any subsequent owners (as such term is hereinafter defined for the term
specified in Section 5.2), subject to the terms of this Restriction Agreement.
Article II
Definitions
. For purposes of this Agreement, the follo\'\ring words and phrases shall have the
following meanings unless the context clearly indicates a different meaning:
"Developer" means Sunoco Partners Marketing & Terminals, L.P ., a Texas limited
partnership.
"City" shall mean the City of Nederland, a Texas a home rule municipality located in the
County of Jefferson, State of Texas.
"City Manager" shall mean the City Manager of City.
"Commencement of Construction" shall mean (i) the .plans have been prepared and all
approvals thereof required by applicable governmental authorities have been obtained for
construction of the Improvements, (ii) all necessary permits· for the cons1ruction of the
Improvements have been issued by the applicable governmental authorities and (iii) construction
of the Improvements (including site-preparation) has commenced. ·
"Completion of Construction" shall mean (i) substantial completion of the Improvements
on the Land has occurred, and (ii) a certificate of occupancy or final inspection has been issued
by City for occupancy of the Improvements for the Required Use by Developer or (iii) sufficient
documentation has been provided to the City substantiating th.at the cost of constructing the
Improvements was at least $200,000,000.
"Effective Date" shall mean the date this Agreement is signed by all parties hereto.
"NEDC" shall mean the Nederland Economic Development Corporation, a Texas non-
profit corporation.
"Force Majeure" shall mean any contingency or cause beyond the reasonable control of a
party including, without limitation, acts of God or the public enemy, war, riot, civil com.motion,
insurrection, by the order of a court resulting from any litigation brought by a third party to
prevent or delay D6Veloper's development, construction, or operation, City delay of permits or
other approvals, delays caused by government entities (including, without limitation, the City
and NEDC) or government or de facto .governmental action or inaction (unless caused by acts of
omissions of the party claiming such Force Majeure), pending referendum, fires, explosions or
floods, strikes, slowdowns or work stoppages. Such extension shall be for a period equal to the
actual length of such delay, together with any ti.me reasonably required by Developer to re-
mobilize for construction as a result of such delay.
"Improvements" shall mean the structures to be located on the Property, inclusive of any
materials, equipment, and fixtures incorporated into said structures as more particularly
described on Exhibit "E".
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"Land" shall mean;
11.475 ACRE TRACT, more or less, attached as Ex.lu'bits "A" and "B".
247.794 ACRE TRACT, more or less, attached as Exhibit "C" and "D".
"Option Period" shall mean that period of ti.me commencing on the Effective Date and
ending on the earlier of (a) Completion of Construction or (b) 60 months following the Effective
Date ..
"Option Price" shall mean the Purchase Price stated in the Purchase Agreement less all
clo~ing costs and expenses paid or incurred by NEDC pursuant to the Purchase and Sale
Agreement and pursuant to the exercise of the Option.
"Property" shall collectively mean the Land and any Improvements following
construction thereof on the Property:
"Purchase Agreement" shall mean that certain Purchase and Sale .{\greement, as amended
or assigned, by and between NEDC and Developer, effective April Z J~ , 2013.
''Required Use" shall mean the·construction and operation of a marine terminal with
associated appurtenances for the receipt, storage and delivery of hydrocarbons.
Article m
Option
3.1 Grant of Option In consideration of TEN AND N0/100 DOLLARS ($10.00), in hand
paid by City to Developer and other good and valuable copsideration, the receipt and sufficiency
of which is acknowledged by Developer, Developer hereby grants to City during the Option
Period an option to repurchase the Property (the "Option") pursuant to the terms of this
Agreement.
3.2 Time for Exercising Option Subject to Sections 3.2 and 3.3, below, the Option may be
exercised by City in its sole discretion by providing written notice to Developer upon the
occurrence of the following: ·
(a) subject to delays caused by Force Majeure, if D6Veloper has failed to call.se
Commencement of Construction of the Improvements to occur on the Property on or before the
last day of the [24th) month following the Effective Date, provided Commencement of
Construction has in fact still not occurred on the date of the exercise of the Option; or
(b) subject to delays caused by Force Majeure, if Commencement of Consnuction has
occurred, but Developer has failed to cause Completion of Construction by the last day of the
72nd month following the date that Commencement of Construction occurred , provided that (x)
Completion of Construction bas in fact still not occurred on the date of the exercise of the Option
or (y) if Commencement of Construction has occurred and Developer is diligently pursuing
construction of the Improvements, the City will not exercise its Option pursuant to this Section
3.2(b).
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.(c) Following the expiration of the Option Period, this Agreement and all of the
City's rights and options hereunder shall automatically terminate and be of no further force and
effect.
3.3 Force Majeure In the event of Force Majeure, Developer shall have such additional
time to cause Commencement of Construction or Completion of Construction, as the case may
be, so long as Developer is diligently and faithfully pursuing the same. The termination of the
Option Period shall be extended for the same number days that the performance of Developer
with respect to Commencement of Construction or Completion of Construction is extended by
Force Majeure.
3.4 Sole Remedv The City's sole and exclusive remedy for violation of the obligation of
Developer for the Commencement of Construction and Completion of Construction shall be the
exercise of the Option.
Article IV
Terms of Sale Upon Exercise of Option
4.1 Effect of Exercise of the Option Upon any timely exercise of the Option by City in
accordance with the foregoing provisions, the conveyance of the Property to be C<?nveyed to City
shall be in accordance with the provisions in this Article IV.
4.2 Title.. Survey, and Environmental Reports
(a) Not later than the fifteenth (15th) business day after the exercise of the Option,
Developer shall, at Developer's expense, deliver to City:
(i) a current commitment for an Owner's Policy of Title Insurance from the
Title Company for the portion of the Property to be conveyed to City, setting forth the
state of title to the Property together with. any easements or restrictions (existing or
created pursuant hereto) benefiting or burdening the Property, together with all
exceptions or conditions to such title;
. (ii) legible copies of all documents referenced in the Title Commitment;
(iii) any environmental studies or reports that Developer may have in its
possession with respect to the Property; and,
(iv) tax certifi.cate(s) regarding the payment of ad valorem taxes for current
and prior years.
(b) Upon any exercise of the Option, City shall have the right, at its sole option, to
cause a boundary or "as·built" survey of the Property to be made by a certified land surveyor
selected by it. Such survey shall be made at the sole cost and expense of City.
( c) City shall, not later than twenty (20) days after City's receipt of the last of Survey
and Title Commitment, notify Developer and Title Company of any objections to the Survey and
Title Commitment. If there are objections by City, Developer shall use commercially reasonable
efforts to satisfy them prior to Closing, provided, however, Developer shall not be required to
pay any money in connection with such cure requests. If Developer delivers written notice to
City not later th.an the tenth (10~ calendar day after Developer's receipt of City's objections that
Developer is unable to satisfy such objections, City may either waive such objections and accept
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#4274205.2
title as Developer is able to convey or terminate the exercise of the Option by written notice to
Developer and the Title Company.
4.3 Closing
(a) The closing of the sale of the Property identified in the notice exercising the
Option shall occur not later than sixty (60) calendar days following the date of exercise of the·
Option unless otherwise extended by written agreement of Developer and City.
(b) At the closing, Developer shall deliver to City:
(i) a Special Warranty Deed, in form and substance substantially similar to
the form used to convey the Property to Developer pursuant to the Purchase Agreement,
conveying good and indefeasible title to the Property described in the notice exercising the
Option and/or the survey obtained by City (whichever is the most accurate description) to City,
free and clear of any and all encumbrances except the Permitted Exceptions (as defined in the
Purchase Agreement), save and except such oil, gas, and other minerals as may have been
reserved by prior granters;
(ii) an owner's policy of title insurance (or equivalent) in the amount of the
Purchase Price, insuring such title to qty; and
(iii) possession of the Property, free of parties in possession.
(c) At closing, City shall pay in cash or by certified or cashier's check the Option
Price descnoed in Article II, less all Closing Costs and other costs and expenses to be paid by
Developer pursuant to this Article.
Notwithstanding anything stated herein to the contrary, Developer shall not have any obligation
to cure any lien or encumbrances affecting title to the Property if such lien or encumbrance
existed on or prior to the Effective Date.
4.4 Taxes Ad valorem taxes assessments; and any other charges against the Property and/or
improvements conveyed to City pursuant to this Article IV shall be prorated as of the Closing
Date for the current year, such that Developer will be responsible for all such items which accrue
prior to the Closing Date, and City will be responsible for all such items which accrue on and
after the Closing Date. Taxes and assessments for all prior years shall be paid by Developer.
4.5 Oosing Costs
(a) Developer will pay and be responsible for the following closing cost:
(i) the cost of all tax certificates relating to all taxes and other assessments
incurred or arising in relation to the Land;
(ii) all fees and premiums for Basic Owner's Title Policy, and any
endorsements to the Basic Owner's Title Policy;
(iii) one-half (112) of the Title Company's escrow fees;
(iv) all recording fees;
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(v) all costs and expenses incurred by or on behalf of Developer, including
Developer's attorney's fees;
(vi) all costs related to ootairiiiig any releases of liens o.n the portion of the
Land conveyed relating to any loans obtained by Developer which were secured by a
deed of trust lien on said property; and
(vii) such other incidental costs and fees customarily paid by sellers of real
property in Jefferson County, Texas, for transactions of a similar nature to the transaction
contemplated herein.
(b) City hereby agrees to pay and be responsible for the following closing cost:
(i) all fees and premiums for the Survey;
(ii) ·one-half (1 /2) of the Title Company's escrow fees;
(iii) all costs and expenses incurred by or on behalf of City, including City's
attorneys' fees; and
{iv) such other incidental costs and fees customarily paid by purchasers of
property in Jefferson County, Texas, for transactions of a similar nature to the transaction
contemplated herein.
4.6 Reserved
4. 7 Conveyance As Is City acknowledges and agrees that the Property and/or improvements
conveyed pursuant to this Article IV will he conveyed "AS IS" with all faults and defects,
whether patent or latent, existing as of the Closing. Except with respect to the quality of the title
being convey~ by Developer as set forth in the Deed, City acknowledges and agrees that
Developer will be making no representations, warranties, guarantees, statements or information,
express or implied, pertaining to the Property or improvements conveyed, their condition, or any
other matters whatsoever, made to or furnished to City by Developer or any employee or agent
of Developer, except as specifically set forth in this Restriction Agreement
Article V
Restrictions
5.1 Use of Propertv: Buildings No portion of the Property shall be utilized for any use other
than the Required Use. No building shall be constructed, reconstructed, erected, altered, or
placed on any portion of the Property other than the Improvements or other structures that will be
used in conformance with the Required Use.
5 .2 Term of Restrictions The restrictions set forth in Section 5 .1 above, shall commence on
the Effective Date and automatically terminate following the Completion of Construction of the
Improvements.
Article VI
Miscellaneous
6.1 Enforcement City shall have the right, but not the obligation, to enforce the Restriction
Agreement and any covenants and restrictions contained herein, as the same may be amended as
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#4274205.2
herein provided. Subject to the limitation set forth. in Section 5.1, above, enforcement of the
provisions set forth in Section 5.1 contained herein may be exercised after failure of any pen;on
or persons violating or attempting to violate any covenants or restrictions to cure such violation
or breach within two (2} sixty (60) <lay-notice perioels after reeeipt of written notice thereof, oy
proceeding at law or in equity, against any person or persons violating or attempting to violate
any covenants or restrictions, to restrain violation or to recover damages, and failure to enforce
any covenant, restriction or condition shall not be deemed a waiver of the right of enforcement
either with respect to the violation in question or any other violation. This Restriction Agreement
is not intended to restrict the rights of the City Council of the City of Nederland to exercise its
legislative duties and powers insofar as the Prop erty is concerned. For further remedy,
Developer, for itself, its successors, and assigns agrees that the City may withhold building
permits, development approvals, certificates of occupancy and/or final inspection necessary for
the lawful use of any portion of the Property not then in compliance with this Agreement The
City's right to repurchase the Land pursuant to the exercise of the Option as set forth in Articles
ID and IV of this Restriction Agreement constitutes the City's sole and exclusive remedy for any
failure by Developer to Commence Construction or Complete Construction of the Improvements
on the Property. The rights of City under this Restriction Agreement may not be waived or
released except pursuant to an amendment or termination approved in accordance with the
provisions hereof, except by expiration of the Term ..
6.2 Amendment No amendment or .any termination of this Restriction Agreement shall be
effective unless and until approved by Developer and the City (as evidence9 by a resolution of
the City Council executed by the Mayor and recorded in the Official Public Records in the office
of the Jefferson County Clerk); provided, however, the City may, without the consent of
Developer, terminate and release the restrictions set forth in Section 5.1. In the event Developer,
or subsequent owner of the Property desires to change, amend or alter the covenants, conditions
or restrictions as set forth herein, Developer, or subsequent owner, as the case may be, shall file a
written application for such change or amendment with C ity, which shall approve or deny such
application in whole or in part within thirty (30) days after receipt of such application. Any
change or amendment approved by the City shall not be effective unless and until an instrument
executed by the Mayor is recorded in the Official Public Records in the office of the Jefferson
County Clerk in accordance with this Section.
6.3 Notices All notices, requests, demands or other .communications required or permitted
hereunder shall be in writing and shall be deemed to have been fully and completely made when
given by hand, by confumed facsimile transmission by overnight delivery by Federal Express or
other reliable courier or the mailing of such by registered or certified mail, addressed as follows:
If intended for City, to:
City of Nederland
Attn: Chris Duque, City Manager
1400 Boston Ave
Nederland, TX 77627
If intended for Developer:
Sunoco Partners Marketing & Terminals L.P.
Michael S. Prince, Vice President, Business Development
1818 Market Street, Suite 1500
Philadelphia, PA 19103
#4274205.2
7
With a copy to:
Sunoco Partners Marketing & Terminals LP.
Attn: General Counsel
1818 Market Street, Suite 1500
Philadelphia, PA 19103
AJJ.y party may at any time and from time to time by notice in writing to the other party hereto
change the name or address of the person to who notice is to be given as herein before provided.
6.4 Successors and Assigns This Restriction Agreement shall bind, and inure to the benefit
of, the parties and their respective successors and assigns.
6.5 Governing Law This Restriction Agreement is entered into and is intended to be
perfonned in ~e State of Texas, and the validity, enforceability, interpretation and construction
hereof shall be determined and governed by the laws (other than conflict of laws provisions) of
the State of Texas. V~nue for any action shall be in the state District Court of Jefferson County,
Texas. The parties agree to submit to the p~onal and subject matter jurisdiction of said court.
6.6 Recording The parties agree that City may record the Restriction Agreeipent in the
Official Public Records in the office of the Jefferson County Clerk.
6.7 Covenants Run with the Propertv This Restriction Agreement and the restrictions,
covenants, and conditions set forth herein are for the purpose of protecting the value and
desirability of the Property as well as to carry out compliance with Tex. Loe. Govt. Code
§253.009, as amended, and, consequently, shall run with the Property and be binding on the
Developer and all parties having all right, title, or interest in the Land, in whole or in part, and
their heirs, successors and assigns. These covenants, conaitions and restrictions shall be for the
benefit of the City of Nederland, Texas. This Restriction Agreement is binding upon Developer
and each and every subsequent owner-, tenant, subtenant, licensee, manager, and occupant of all
or any portion of the Property, but only during the -term of such party's ownership, tenancy,
license, management or occupancy of the Property, for which such party shall remain liable and
shall be binding upon and inure to the benefit of the City and its successors and assigns. It is
expressly understood and agreed that acceptance of title to all or a portion of the Property shall
automatically, and without further acknowledgement or confirmation from the owner, constitute
such owner's assumption of the obligations of Developer hereunder.
6.8 Severabilitv Invalidation of any one of these covenants, conditions, or restrictions by
judgment or court order shall in no way affect any other provisions, and all other provisions shall
remain in full force and effecl
6.9 Entire Agreement This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof, and no statement, promise, representation or
modification hereof by any person, if any, and whether oral or written, shall be binding upon any
party.
6 .10 Counterparts Th.is Agreement may be executed by the parties hereto in separate
counterparts; each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument Each counterpart may consist
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#4274205.2
of a number of copies hereof each signed by less than all, but together signed by all of the parties hereto.·
[Signature Pages Follow]
11427~205.2
9
SIGNED AND AGREED on this M day of__..__i1p~ti_,_l ___ __,, 2013.
Approved as to Form:
City's Acknowledgment
STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
~ Acknow.ledged before me, the undersi~ed authority, this @or d. day of
_ii t , 2013, by Chris Duque, City Manager for the City of Nederland,
Tex , a exas home rule municipality, on behalf of such municipality.
My Commission expires:
~-jQ I PiOll(
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#4274205.2
SIGNED AND AGREED on this ;l.5 ~y of_Ad---r--·-----· 2013.
Sunoco Partners Marketing & Terminals L. P. a Teias limited liabilify company
By: Sunoco Logistics Partners
Operations G.P., L.L.C., its general
partner
By:!Mw/J.~
Name: Michael S. Prince
Title: Vice President, Business Development
<fP
Developer's Acknowledgment
STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
h.".,_.'J\b.is instrument was acknowledged before me on the \tQ"\h day of ~iL , 2013, by Michael S. Prince as Vice President, Business
Development of SUNOCO LOGISTICS PARTNERS OPERATIONS GP LLC, a Delaware
limited liability company, in its capacity as general partner of SUNOCO PARTNERS
MARKETING & TERMINALS L.P., a Texas limited partnership, and on its behalf.
My Commission expires: \R> J '12.J 2.D\U
1~~-MARIA L TAYLOR f,:*:-i MY COMMISSION EXPIRES t • . l' ?..:. .~.. Au ust ')I} 2016 "•?.fr..f'~·· I'll.lg -
11
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£.tlM'llftrOC.--ACl2. .,..,., AQIC 11lllCr lllOtlU .,.,...,... ,J'L J!D't.J. s~iflkERIN, SEJlll/CES COMPANY P.O. BOX 17 5'lSl1U; n;i;U" 17C6 f 09-"65-IOU flC Ito. ffJJfU O./"./f. .D'fCRSO# CO.. IX EXHIBIT A 0 500 1000 ~__..., -1500 .. Necees .Rll?J;.R ~,b, S;>-~~Osn~ ~<In_ y4· SURVEYfJRS CJ:RrrF!C.4'1'8 ll'IUIMI CtlllROLL SURllEI' ABSTRJICT Nill/BER JS 1"1Af OF NI '1.47!1 ACRE' 11MCr OF lAHO, It/ORE Of1 L£S:s. IN me WIU.WI ~~~~:~;::;~~n::: .~ N:RES II Tll£ ND;H:S fr/llfR MO IJDKJ OUT OF 1H4T 9.3f.O ~ l1MCT aJMIElfD 10 mE: an' OF NDJB1U4ttD, ~ IN OUD RSXlflDfD VtlO£R 'ff.&foN~8/11J.O',u2~ u!/Ji,,~"'t:;f ~ OF .5<.fflnfSIQf ·" .-.wrr. .201.L ~ A. SIONWEll :;,;;;,: SLTRR ~ CASll'ELL SURVEY .A.8S17MCT Nu.I/BER' 408 ...... '\. "'· R..7• .-;;~ '• ., , .
EXHmITB
11.475 Acre Truct
Being an 11.475 aarctract af'land, more or less, out af'thut 934.0 acre tract~ooveycd to the City of
Nederland, Texas in deed recorded under Film File Cade Number l 01-27-1067 of the Official Public
Reco.rds of Jeifen;an County,.Texas, :with said.tract being out of.the William Gam>U Survey, Abstract
Number 13 ln Jeffen;on Cowit;y, Texas, wllh said 11.475 acre tract being descnDed as follows:
BBGINlmiG at a l inch iron pipe fuwuJ for the southeast comer a!' this tract, same being sn interior comer
of said 934.0 acre tract. being the most westerly southwest comer of the Sunoco Pertners Marlceting and
Terminala, L.P. tract. said comer having a Texas State Plane Grid Coordinate for the Texas South Centnil
Zone ofNortb 13,949,828.84, Eut 3,547,329.70 with a conv~nce 1111glc of02° 26' 41";
THENCE North 74° 30' 03" West with the south line of this tra::t a distance of740.82 feet to a~ inch iron
rod with a cap stamped "SPSCO" setfor1he southwest comer ofthi.s tntct;
THENCE North IS" 29' 57" East with the west line of this tn.ct, at 410.78 fc!:t a. Yl inch iron rod with a cap
stamped "SESCO" set in the south high bank of the Neches Rivi:r, continuing for a total distance of67S.75
feet ta the northwest comer this tract, beini. in 1he Neches River, being in the most WCSWiy north line .of
said 934.0 acre traCJ;
THENCE South 74° 20' 30" East (deed called S 71 °55'42" E) with the north line of this tract, being in the
Neches River, and most westerly north line of said 934.0 acre tiact a dismnce of740.83 feet to the north:ut
corner of this tract, being in 1he Neches River, and same being the most westerly northeast comer of said
934.0 acre met, and being the northwest comer of said Sunoco tract;
TH.ENCE South 15° 29' 57" West with 1he east lino of this tract1111d a west::rly ea.st line !lllid 934.0 llllr'e tnct
and most northerly west line of said Sunoco tract, at 249.76 feet the sou!h high bank of the Neohes River, at
253.44 feet a Kinch iron rod with a c.ap stamped "SESCO" set for reference, continuing for a total distance
of 673.69 feet(doed called S 17" 54' 45• W 673.69 feat) to.the plaoe of BEGINNING:
Said tract of land herein desoribedCQDtains 11.475 acres of h1nd, more or less, with said tract having 4.419
ncres in the Neches River, leaving 7 .056 acres south of the south high bank of the Nechcs River, with said
7 .056 acres being described as fullowr.
BEOINNINO ata. l inch iron pipe found for the southOCISt c:omer·ofthis tra.ct, wne being llll intmior comer
of said 934.0 a.ere tract, being the most westerty southwest cnmer of the Sunoco~ Me.rla:bng and
Terminals, L.P. tract, mid being the southeest comer of the above dcscn'bcd 11.475 11CTC tract, and said
comer having e. TCXAS State Phuui Grid Coordinate for tile TelCllS South Central Zone ofNorth
13,949,828.84, Bast 3,547,329.70 with a convergence angle of02° 26' 41 1;
nmNCE North 74• 30' 03" West with 1he south line ofthls tract md 50Ulh line of said 11.475 acre tract a
distance of740.82 feet to a Yi inch iron rod with a cap stamped "SBSCO" set for the Stl\llhwest comer of this
tract, same being the sou1hwcst comer of said 11.475 acre tract;
THENCE North 15°29' 57" East with the west lino of this tract and west line ofwd 11..;75 aam tract a.
di.dance of410.78 feet a ~ inch iron rod with a C4Jl stmnped "SESCO" se:tfor the northwest comer of this
IT8ct, being in the south high bank of the Neches RNer;
THENCE with the north linc.ofthis tract and the existing south high bank oftbe Neches River as follows:
South 53° 04' 41" East a diatane; of 154.73 feet to an 1111gle point,
South 89" 59' 21• East a distance of 435.10 feet to an 1111glo point,
South 59" 48' 43• East a distance of 183.48 feet to the northeast comer of this tract, being in the Clllt line of
said 11.475 acre tract and a westerly east line of said 934.0 acre tract and the most northerly west line of said
Sunoco tract;
THENCE South 15° 29' 57• West (deed called S 17" 54' 45• W) with the east line ofthis tract and cast line
of said 11.475 acre tract and 11 westerly east line said 934.0 11CTe tntct and most northerly wesl line of said
Sunoco tract, at 3.6& feet a.~ inch iron rod with a cap stamped "SESCO" set for refcn:n::e ta comer,
continuing for a total distance of 423.93 feet to tbe place afBEGINNlN<l
Said tract of land herein described com•in.s 7 .056 u:res ofland, more or icss.
The bcarinp in the dcst:ription above are baaed on the Texas State Plane Grid Coardinatos fur the Texas
Bo d' ces smed herein a we surface distan.ccs.
EXHIBIT c
0 :500 1.000 P"'W!w-
-,. "·
l I
1!500
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i l
EXHIBITD
247.794 Acre Trad
Being a247.794 acre tmct oflmd, more or Jess, out of that 934.0 acie tmct conveyed to tho City
ofNedcrland. Texas in deed recorded midcr Film.File Code Number 101·27-1067 of the Official.
Public Records ofJ :ffi:rson County, Texas, with said tract having 181.928 acres out of the Burr
and Caswell Survey; Abstract Number 406, 1-.758 acres out of tho John C. Kuchtr Survey,
Abstract Mumbcr 158, 29342 acres out oftbe Ogist.er Montee Survey, Abstract Number 177 and
28.766 acres out of the Vi'illiem Cmoll Survey, Abstract Number 13 in Jeffi:rs01l Cotlll1y, Texas,
with said 247 .794 acre tract being descnDed es follows:
BEGINNING at a l inch iron pipe fmmd for the northeast com.er of this tract, same being the
mo!i:t easterly northeast comer of said 934.,0 a.er;~ being e:n mterior c~ma of the Sunoco
Partners Marketing and T=inals, L.P. 1Iact, said comer haviDg a Tcx:ns State Plane Grid
Coordinate for the Texas South Central Zone of North 13,948,066.69, East. 3,553,705.98 with a
convergence nngle of02° 27' 16";
TIIBNCE SoUtb 21° 01' 38" West with an cast IiDe of th.is tract and said 934.0 lll:Ie tract and a
west lino of said SUDoco Partnm Matketing and Terminals, L.P. tract a disbmce of 1798.63 feet
(deed celled S 23° 29' 37" W 1798.65 feet) to a 1 inch iron pipe fouod for rm angle point in the
east line offuis tract end said 934.0 a.ere tract mid west line of said Stm0co tract; ·
THENCE South 16° ST 23" West wi1h an east line of this tract end said 934.0 acre tract and a
west line of said Sunoco Partners M.arketiDg and Teoninals, L.P. tract a distance of 1761.38 feet
(deed called S 19" 26 11" W 1761.53 fuet) to a 1 inch iron pipe foUDd for an angle point in the
east line of this traet and said 934.0acre1ract and west line of said Sunoco tract;
THENCE South 02° 01' 02• West with an east line of this tract and said 934.0 a.ere 1ract and a
west line of said Sunoco PartDcts Marlccling and T c:rminals, L.P. tract a distance of 621.62 feet
(deed called S 04° 2S oo~ W 621.68 feet) to a 1 inch iron pipe found for southeast comer of this
tmat and a southeast comer of said 934.0 = tmct and an angle point in the west IiDe of said
SUDOCO tract;
1RENCE South 43° 52' 27" West wifh the moSt sou1herly south line of this tmct and a south line
of said 934.0 acre tract and a west line of said SUDOco PBrlDers Marketing and TermiDals, L.P.
tracta.<fistance of2473.92 feet (deed called S 46" 19' 23" W 2474.03 feet) to a 5/8 inch iron rod
found for the most soutbc-ly southwest comer of this tract and a southwest comer of said 934 .0
acre tract, same being m cxtcma.l comer of said Sunoco 1mct md being in the east lliie of th st
267.492 acre tract conveyed to the City of Nederland, Texas in deed recorded under Film File
Code Number 100..87-0110 of the Official Public Records of Jeffi:i:son County, Texas, and being
in the cast line of seid Ogistcr Momee Survey and in the west IiDe oftbe William McFaddin
Survey, Abstract Number 181 ofJcffi:rson Coun.ty, Tcx11S;
TIIENCE North 00° 01' 07" West with a w-..st line of this 1rBct and an cas=ly west line of said
934.0 aero tract and cast line of said 267 :492 a.ere tract and east line of said William McFaddin
Survey and west line of said Ogi.stcr Montee Survey a dis!Bnce of 1630.84 feet (deed called N
02°28'45" E 1630.41feet)toa1 inch iron pipe found for BD mgie point in the west line ofthis
tract and an CU1terly west line of said 934.0 acre tract and east line of said 267.492 acre tract. and
being the northeast comer of said William McFaddin Survey and the northwest corner of said
Ogister Montee Survey and being in th: south line of said Bmr and Caswell Survey;
THENCE Nortli 15° 18' 46• Bast with a west liDe of th.is tract md BD easterly west IiDe of said
934.0acretract and1he CllSt liDe of said 267.492 a.ere tract a distance of94.06 feet (deed celled N
17"13'56" E 94.16 feet) to a 1 inch iron pipe found for an eng1e point iii a west line of this traet
mid an easU:rly west line of said 934.0acre1rllct and iD tbe cast liDo of said 267.492 eme tract;
THENCE North 3 l 0 02' 3 g• East with e. west line of this tract and en easterly west line of said
934.0 acre tractBDd east line of said267.492 acre tract a di.stance of812.3S feet (deed celledN
33°45'12n E 812.35 feet) to a Y, inch iron rod with a cap stamped "SESCO" sot for en angle point
Page 1 of 2
in a west line of this tract and an eBSter!y west liDe of said 934.0 acre tmct md e.n cast line of said
267.492 aa-e tra...'1;
TIIBNCENorth 09°13' 13" We.st with a 'WeStline of this tract and an easterly west line of said
934.0 aae tract and e.n east line of said 267.492 acxe tract a distance of2147.00 feet (deed called
N 06"30'39" W 2147 .00 feet) to a Vi inch iron rod with a cap s1ampcd "SESCO" set for an angle
point in-a west line-ufthis tract and an-easterly west line nf said 934.0 aac-nct md an east line
of said 267.492 acre tract; ·
THENCE North 28" 13' 36" West with a west liDe ofthis tract and an eamrly west line of said
934.0 acre tract and l!ll. east liDe of said267.492 acre tract a distance of 104.97 feet (deed called
N 30"18'44" W 104.97 feet) to a% inch iron rod with a cap stm:nped. "SESCO" set for the most
northerly southwest comer of1his tract, same being a westerly southeast comer of said 934.0 acre
tra.ct and being the northeast comer of said 267.492 acre trBct;
THENCE North 52° 38' 50" West with the most northerly south line of this tract end an easterly
south line cir llllid 934.0 acre tract and the north line of said 267.492 acre tract, at 504.20 feet a l
inch iro11 pipe found for the nortb.Vo.'.est comer of said 207 .492 aae IIact and llll exterior comer of
said 934.0 acre, continuing an the same course for a total distance of758.75 feet (deed called N
50" OT 19" W) to a \4 inch iron rod with a cap stamped .. SESCO" set for the southwest corner of
this tract, being in a westerly cast line of said 934.0 acre 1rallt and 11 westerly east line of said
Sunoco Partnas Marketing end Tmn.inals, L.P. tract, from said comer al inch iron pipe found
for an extemal corner of said 934.0 acre tract and a southeast comer of said Sunoco t:ra.ct bears
South 3'r 08' 56" West a distimcc of36.49 feet;
THENCE North 3'r 08' 56" East with the most northtdy west line of this 1Iact and e west line of
said 934.0 acre tract and a westerly east line of s!lld Sunoco tract a distance ofl300.54 feet (deed
callcd.N 39"35'11" E) to a 1 inch iron pipe found fur the northwest comer of this tI2Ct, same
being ao easterly nortbwest comer of said 934.0 acre tract and being an interior comer of said
Sunoco tract;
THENCE North 61° 01' 27" East with the north tine of this trsctBDd a north liDe of said 934.0
acre tract and a south line of said Stliloco tract a distance of520.80 feet(dccd called N 63"39'32"
E 520.72 feet) to a 1 inch iro.n pipe found for im angle point in the north lino of this tract, same
being an angle point in a north liDe of said 934.0 ac:re 1ract md in a 8CUtb line of said Sunoco
tract;
THENCE Sooth 74° 32' 59" East wi1b the north line of this tract and a north line of said 934.0
aCIC tract and a south line of said Sunoco tract a distance of2290.93 feet( deed called S 72"05'15"
E 2290.89 feet} to the place ofBEGINNlNO.
Said tract of land herein described contains 247.794 acres ofland, more or less.
The bearings in the description above are based on the Texas State Plane Grid Coordinates for
the Texas Soiitb Cent:ml Zone, the distances stBtcd bctein a true surface distances.
Surveyed in JIDlllll1Y 2013.
Pagc2of 2
_., ,.
EXHIBITE
• Refrigerated Sto~g~_T~
• Electrical Substation and motor control center
• Inlet Sulfur Treating Plant
• Dehydration Mole Seive Beds
• HP Refrigeration Trains
• BOG (Boil-Off-Gas) Recovery System for both Tanks
• Pipeline Metering Facility
• Pipeline Origination Pump Station
• Marine Metering Facility and Marine Loading Pumps
• Propane/B utanc Warming Facilities
• Overpressure Relief System and Flare
• Hot Oil Heating System
• Piperacks and interconnection piping, manifolds and valves
• Control Room, Analyzers and Lab Facilities
• Protective Levee and Tanlc Secondary containment
• Utility Connections and extensions for: Potable Water, Sewer, Nitrogen, Fuel Gas & Firewater
• All other appurtenances and equipment consistent with the Required Use as defined.in Article II
of this agreement
#4274205.2
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853~964
Tll ITATt or Tt2AI
QIJlt CLA HI DUD
J./<Y
IOI Z7 1007
J:JOY ALL "'' It Tlt SI PltltllTl TIAT1
SUI IUl.111'1 tll.l"tllALS, 111c., a l>ttlawa re corporat lo•
(RC:ra•tor"), for a 11d l• co••idoratlo• of t .. e oua of T•ll Dollar•
<•10) ••• ot .. •r aood ••• ••l•ol>I • co••l••r•tloa t• it in h ood
pal• 1'7 the CJTT OP ll!Dll.LAID, TUAI , 1 awaicipalit7 (•Crant ee"),
the rttcelpt ••• awfflcl•••J nf .... ich i a kere1'7 a ekaowte•c••• h••
Cl.AllTtD, IOLI>, ao• COJ•Etltl>, ••• 1'7 thttao prttoaata doe a Cl.AllT,
l!LL, and COIY!T, without ••rraot7, eapreo• or iaplle 4, •nto
Craatae, !ta ••c.ceaaor a ••' a11J1aa . eut.ject t o t)le e ac e,t Loe•
••4 otllar •1tter1 •eotlo•e• "•lo•, a ll o f Crootar'a riaht, tith,
and lat1r a1 t in ••• to tho follo•l•c r11 l propert7 o ituatttd lo
the Couetf of Jeffttraoa, ltate of Tea••:
ALL TIAT CllTAt ll tract or parce l of 1oa4 4e•cribe4 on
Exhibit A &ttoclled here to ••••••• a por t hereof for all purpooe•
end berelnoft•r ca llttd , !lie "Property",
TOC:tTlll YITI a ll ••• a iaaular the ri1ht1 ead apporte••~•••
reapectiY•lJ beloa1ia1 th•r•t •.
TH11 co0Ye7aac e i o •••• •1 Croat•r ••• a ccepted b7 Cra ntee
1 u•J•ct to t he lia itot io•• •el forth he r e ia, iaclo•i•c ooit\lo•t
li•lt etl oo , tho f ollo•inc:
t. A 11 out a ta•dias iat•r••t •, 4efec.ta . •••••••t•, •ar•••••t.•• i111 tTO•••t•. c•.,••••t •, co•4J.tio••• ti•"••
eac••"r••C•• ••• •t"•• ••tt1r1 a ffectia& the Pro,~r t7 ••
Craotor'• i•t•re•t th1 r 1 i• of reeor•, t\lor• llein& ••pr1ool 7
IXCltPTtt tro• thl• co•'•7•••• oil pip1 ll11•• (i1cl••ia1 all
••l•••• littia11 1 te•eec.tio1t•, '"•P•• ••t•r•. c.orroa !•• co•trol
••• protectloa ••ulpa11t, aa4 •t"er relot•• f1c lllti11 ond "•"'P•••t), o il e l ectric ••" t olophooe polea , wlreo, ao.i related
••uip•••t an• f1c ilitl1a, and a ll other klo41 of pr1pert 7 l1e1te4
oa, u•••r, or abo•e the 1aa4 p•r••••t t• 117 o r 1 11 of the fore1olag ;
2. A17 ••••II dl1crep1atiea, caafllcto , or 1horta1•• i n
•r•• or ~oua•ar7 liaea, ••croa c~•••t •, 4efecta , c.oadltione, at1te
of f acta, aad other •attera t ••t •• ••••••to 11r••1 of the
fropoTt J •••I• •l••lo••:
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IOI 27 lffiB.
l. AaJ ••• 1 11 rl1hl1 ••• c lalaa of nlh•r• who ••7 be I•
aetaal ,oa1t••io1 of th• Propertr;
4 . Aa7 104 1'1 I coadltloa1 1ad olher •atl•rt lll•l aro
•l t il>I• oe tha Property.
5. A•J 1d 111 tit l e dohct• 104 1d•trte clalu of rtcord
effectlaa t"• Propert7;
6. A1 7 ani •I l i £001 a ffect !aa th• Propert7 lar I 1 bor or
•aterlal; ••'
7. All l ••• .. or4.loaat t•, re1ul a tioa1, t ftd ordtr• of
co•era•••t •l aathor!tl1t1 of whalewe r J•rh•lctloa 1ffect!a1 or
relatlna to lh• Property.
Crantor tXCEPTS llDtD it .. 11, lt• ••ccutort 1114 1u t1u the
u:.l1l i n1 road acro11, oa or thtouab tlle ProperlJ conoecllo& or
providlaa !aar••• or •1re 11 bttweea the ••In teralaol or
operolloa o f Craator and Ito f1cllitle1 1114 operatlono oa or near
the ~ech•• ll•er, the ceaterllnc the reof btlna further doocrlbo4
la lahlbit I attached hereto.
Crt11tee, lt• .. cceuoro aod ualano oha 11 h••• the riaht to
Ct'Oll 11 id road at &DJ po!a.t 10 loft I &• 1u,c)t cT'ot• i•& doe• •ot
laterfere wi th Crant or'o l11areu or ear••• or ••7 f1cll ltleo
abo•e or below 1r1de 1 1••& aa l4 road.
Parth•~. Cr•at or tlCEPTS vnto it•etf, it• •~tte11or • 104
011 l 1 •• t wo (1) ohlp 117 berth• off 1hore •f Porctl ti 11
d11crlbed l• lahlblt •.i.•, atuc"•' hereto ••d "''' a po rt her1of.
TO llAYl AID TO 10\.D the Pro .. trt7, toael htr w!t~ a 11 •~4
ale1a. l•T t1'• •tpQrt e aaace1. at:ab j ee.t t.o t\t e1c.e~ti.o••·
reeer••t lo••.••' otbet ••tte-ra •••tio••• at.o•e, v•to Crafttc e ,
it• •~cce•••r• ••4 •••ii••. forever.
C:IAITOI DOtl IOT JIAJ:.l AllT llPlllllTAt'JOI, VAlUITT, 01
COUllAIT, UPllll oa 1JIP1.11D, VITI I UPICT '1'0 Tll TITU, rlUDOll
PlOll ~11111 Ol llCDllllAICll, Pllt\CAL COllDITIOI , KEICIAllTAIJl.tTl,
FlTlllll POI A PAlTDCDLAl PDlPOll, OPllAt'tOll, Ult , PtlPOlllAICI, Ol
OTl&I CIAUCTlll l TtC or AU 01 Al.I. or Tiii PlOPtlTT AID
APPUITlllAICll 'l'ltllTO, AllT IDCI llPlll&llTATIOI, VAllARTT , 01
COYtJAIT, lllCLODtllC, UT 10'1' l.llll'l'ID TO, TllOU VIJCI OTlllVlll
WOULD I t lMPLllD IT I.AV, ltllC lllllT 11.XPllllLT lllCATJVID.
I OTVlTllTAIDUC AMT'l'lllc lllz:t 11 TO TU COllTUlT, TUI DUD
U ALL IOT OPlUTI TO CUllT. conn 01 AllICll "" APl'UllTUAllCU 01
OTUI ll Cl!TI IXCIPT 'l'O Tlll UTlllT LOCATID VlTlllll TU IOUllDAll El
01 Tiii TIACTI 01 PAlCll.I or LAllD DllCIIllD 011 IXMllJT A AttACJIED
Utl.ETO,
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IOI 27 1070
.. COUICTT or TULU
tlrOll Ill, the llader1l1ae4, a Jlotar7 11l~llc la aa4 far Luo
l ate aa Coual7, oa tbl a 4a7 per1oa1ll7 a ppeare4
J;.L.:..'4.....1.."""'""'flfl:lt..,...,~1-'--.. lr.aowa to•• to Ila tlla porooe a11d officer.
ab1cribe• to tba foracoi•c iutnant, and
a okaowled •• to •• that tbe aaae wa1 tb• act of tb• 1a ld IUI
lfAltll TllllllAl.I, ·11c., a corporal i.oa, ••d tlt•t lie eaocute4 tht
•••• •• tbo a ct of auci. corporatioe for tbe pvrpoooa a nd
coo1ideutioa therola u;pre11ed, 0.11 4 l a the capaclt7 thereio
• t. t •••
ITATI or TUAI ..
COUITT or J!rr11101
IU Oil 111, Frink M. Leinon -----• llot a r 7
Pu~) ic., 01 th1 • ••1 per••••l 17 •PP••t•d R A lugent •
k•owa to ae LO ~e th e per•o• ••4 off lc!al •~••« •••• i•
aubacrlll•• to tho ror•1•l111 laatr••••t aa• a clr.11owled1ad lo ••
tha t the 1aa1 VII tho act or lh• CITT or lllDllLAID, T!XAI, •
•ualclpa llt7 Co r Lh• purpo••• aa4 coaal4eratloii therela
e&prt1•e~, .,, i• ~h• capacit7 t l1trcin •t•t••·
AID s11.1. or orrtc1, thla __ 1_1 __ .ia7 or
llotar7~ "'> t lc r,{,f,y/( /"{, t.,~l'f .I" I ,.y"'
4
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IOI 27 1071
lUUlT A
Puca\ l
FltLb MOTi btlCllPTlOI or A 934.0 ACll TlACT or LAJb IM r•z
RICl!I l l Vll MAlll 701 IOI MAllll TllMIJALI, IIC.
lllJC a 934.0 ocr• tr•ct of 1 011• out of tbt Vill i •• Carrol l '"'"•1• Alootract lo. 13, tllo lurr a. Cat•tl 1 lvr•tJ, Alootract lo.
406, tllo Joba c. locber l•r••J• Abotract 10. 1~8, the o. lloat••
; .. , •• ,. Abotract lo. 171 '• Jef!er•o• CovDt7, r ••••••• oai<I
934,0 a c re tract of l ••d bolo& aort portlculorl7 4eocrlbed by
actu a114 loo•Ddo •• fo 1 lo••I
COllllllCIIC at a ateel ba r ia coocrote fo,.•4 i• tllo loot l iae of
tho J, I, Jehaooa l•r••J• Alootroct lo. 34 ••' la tbo Voot 11•• of
tbe Vllliow Carroll g,.r••f A•ll ood tbe lorthooot ri1bt-of-wa7
liae of loa••• City lo•thero loilr••• riaht-of-•a f (100 foot
riaht•of-••r>, •aid ateel bor looiea SO feet fro•, •e•••r•• •t
riaht 01111•• to tho ceeterli•• of oa i• roi l r•••:
TJllCl North 0 ••1ree1 28 wia,.te• 27 oecoedo Voot olona the
c•••o• I lno of the Ja·haeo11 l•r••:r &11d the Vil 1 loa Ce rro 11 Svr .. ey
aod at o dl•t ••ct of 1324.70 feat pa11 tht tootaoot loutheolt
coraer of the I. 1. o,.Poat Do leaoro Coaptllf lta• .. o•t Vorka ond
CO'Dt!o1ae & total diotaDce O( 1f}O.•O feet ti t 1 l/4 iach iro11
pipe found l• the ••c• of tho lecbto li•er aoroh for the
Ve•t•o•t. lo•th•••t ••' \e&la•l•& cor••r of t h• tract of l aed
bercia det crlbe4;
t*fwci to•tiaal•& Kort~ O ••are•• 2i ai.,oteo 2; ••t•••• Veot
o loac 1014 co•••• ••r'Ytf I lae oad •loac th• loet lla• of ••i•
OuPe·at leouaont Vorko troct of 1,..4 ••• ot • dhtoce o·f 41)9.6'1
f••t P••• t l loch &•l••Diaod ir•• plpt pieced for ref•<•••• oa4
coatiaut a totol dl1taace of 4242.47 feet to tho kortbweot coracr
of that cert1lo 1179,)4 •era tract of la•• •••cribod la 6ee4 fro~
J, I. lro1a11ar•, Jr .. ot al. to lua Oll Coap••r doted Au11a1t 21,
1974 ••• recorde4 I• •ol. 1848, P•&• 442 "f th• Dead lecordo of
Jeffer••• C•••tJ• Teaea;
TlllCI lolllh 71 '•&r••• SS a i a•teo 42 ttcoodo &ao t 1loa1 th•
lorth•11ter l 7 l b • of oaU 1119.34 ocre trocl of laad ••••Iona
tho lethoo li•or Cut-off o •l•t•ac• of 3703.54 foeti
TkllCI lo•tb 17 ••creeo 54 aia•t•• 45 ••<•••• Veit ••• at •
dlot•••• of ,0.00 foet pao1 • 1 lacb l•l•aaiaed lroa pipt plt c•d
for refor•nc• oad contioue o tott l dioteaco of 623,69 feel to • I
inch s•l•••i••• lroa pipe aloced;
tKllCE loutb 72 ••er••• OS •i•ultt 15 ••coed• leot o 4l•l•Dce of
1005.61 feet to a 1 iacb a•l••'Dlaed lroa plpe pi e ced ;
170
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IOI 27 1073
Poree! l (Coat'd.)
TIE"CI lorth 30 deer•e• 18 ai••l•• 44 1ecoad1 Veet e l oa1 tbe
llortbeu terly Ila• of 11l• Clt7 of l ederlaa• 267,4'2 acre tract
o{ l a•4 • dlotonce of 104.91 fee t to • 1 lnctl e •l•1•lse4 iron
pip• placed;
tlE"CI lorth SO ••er••• 01 ai••te• 19 a ecoad• Ve i t a lo•e the
l'ortbeutetly ll•• of oaU City of le4•rta•• Ul.492 one tract
of l ond & diot aace of Sll.49 feet to a 1 loch e•l•••ited iron
p·i•• place4 at tbe lortb-·at coraer of aaU 261.492 ecr• Lract of
ha•;
tll"CI South 42 ••er••• 01 a lautat 36 e ecoado Ve et 110•1 the
lorthveoterl7 ·1 be of 1ai4 Clt7 of l ederh•• 267.492 ecro troct
of I an•• ·•h~•••• of 4972.:n feet to a I iach 1 •l•••l•ed iroa
pipe pla c •d ia th• •ortba1aterlJ Ii•• of tha Albotb A44ltloa,
1ccor4lae to the ••p thereof r e corded la Tol. 46f., Paa• ~19 of
the Dee• of lecord• of Jeffar•o• Couot7, taae•;
r11ac1 Mort .. 4S ••area• 32 aia•~•• ll e ecoado Veot aloaa the
lorthot •t•rlJ 1 l•• o f Albotb A44itioa ••41 it• projection •
4iotaace of 1192.62 f eet to tbe l a•t •o•t coraer of the Cr1ry
Ad•ltioa, accordi•a to the plat thereof record•' l a fol. 6 , P•c•
63 of the Ka p lecor•• of Jefferaoa C..aat7, Te~••;
TXIMCt larth 41 4e&reea l\ alo•t•• 30 •••••'• Voat 0 \001 th•
lortbe&1tc rl7 Iha o! &aU Cra r1 A44itl.oo • •ietaact of 866.13
feel to a a •na ie polat1
TUINCl Worth 48 de1r•e1 08 alnat•• %) aecooda Vea t alon1 the
lorthta•t•rl7 lio e of eaid Cr ar7 A441ltioa & .tia t a ace of 600,00
feet to tbe •orth•o1t coraer af oal4 Crar7 A4dition;
TKtlCt •ortb 15 41•&•••• 31 oln~t•• 23 •••0•4 1 V••t a dia t aace of
8'0 .00 (ut1
TllNCI lo•th Sl 4•ar••• 4S ala vtt• 37 e etoa4• Veot a dl a t a ace of
320.00 feet\
TRE•Ct Mortb 29 4e ar•e a 57 •iautet 23 oecoo4• Veit a loa1 th•
lortbeaaterl7 ll•• of •• 11.14 acre tract of l ea4 4eocribe4 la
4ee4 f roa the Port ~rthar Laad Coapaay to Cha rle• t, Cra r7 4•t•4
Au1uot I I , 1909 aod r ecor4•• l• Tol, 1 41, Paa• 384 of tb e I>••'
lecor4a o( J e (fc r •o• Cou•t7, Te••• a dia taace of '40.&0 feet to
an ••ah pol.at; ·
TlllCI •ortb 20 dcareeo 03 •iaut•• 27 •••o••• Veot a lone the
lortbea ot lloa of aai4 11.14 acr• tra ct of l••" a 41 1 tantt of
901.59 !eet to tha place of l>•alaaloa ••" coota ialea 934.0 aero
of 1 .. .i.
'
172
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IOI 27 1074
tUlltT A
Parce l t1
f l tLD llOTt DtlCllPTlOI or A 1~'·'0 AClt ISLAID I I Tll llClll
lltll II J I HlllOI COUllTT . TUAI rot lll l OCO Ttl"IJIAU
llCOUOUTll>
an•c a lst.90 acre i11 a o4 la ti .. leclut ll•ur ••• beha o•t of
tlle Jolie. Koates lar••J, '-b•tra ct lo. 17 S aacl tlat l•rt ' Ca••t 11
l•r••J• '-b•tract lo. 406 l o Jet !ereoa Co•ot7 , Teaaa a nd 11 ld
l o l a ed be lns for••• by th• l a lth• ll•ff Cat-off of tbe leche•
ll••r aed 01!4 1S9.90 acre l ol ao d bt loa ••r• p ortlcularl7
doocribe4 by ••ttt a od boaad• •• follow&:
POl locatl•• coro•r l>e1 l 11 a t • polot lo tl>• l aat 11•• of tlt• J.
I. Johaooo lur••Y a o• lo th• llea t l l a a o f th• Vl l l l a• Ce rro 11
Sur•e7, '-l>•tr•ct lo. 13 ••• lo th• loutb ed&e of tho l ache1 ll•er
Cut-off, 11 l4 po lot a l t o loc1t•• tl>• l ortheaot coroar o f the ll .
1. ,,.Pont De leaour1 Plaat tract of l ••cl 104 th• lorthwt•t coroer
of ao ll '19.34 a cr• trac t of l ao4 tba t wao coo••1•' b7 J, C.
lrou111rcl, Jr., e t al. to tb• 1 •11 O l l Coa p•117 1>7 •••cl cl e t ed
A111tuot %1 , 197 4 ao cl recor4a d io t o 1. 1 8 41, P •&• 441 of t ha Dead
leco~4• of Jef fe r•o• Cou•tJ• Te a••t
TlllCl South 71 dear••• 55 a louta1 36 1ecood• l a•t •ltb tho South
a4&e of the l acbea ~l•er Cat-of{ aa 4 wltll ti>• Mottb ll•• o{ told
lu• Oll Coapao7 1179,34 •er• t r •ct of l •Dd a d l1t 0Dc• of 6997.tl
f e at to ao lro• pipa l7la1 l o th• Veot I lo• of a C:1al! ltoteo
Dtilltl•• Coapaa y riaht-of-••1;
TlllCl llortb 14 4e1ree1 ~· alaatet 01 oecoodo t a1t cro••l•a the
llecbe o tl•or Cat-off • <I l •t u•t • of 2012.43 feat to a 2 i.•c'h
&o l•aa laa4 lroo plpe plocod OD oal4 (o l aocl )oca tlaa t he louthweot
oa• the ha1l•alaa coraer of tbe l ol ao4 bere l• 4aecrlha4 1
TlllCl Ca • So•th•••tarl7 dlrectlo• w ith tbe Morth Lhe of tbe
l •ltba l h!r Cet-off ••" wltll th• lout II Llae of t ... berei•
de1crlbad lo lad tlle fol lo•h a eo•r••• .. , dlot aocaa :
l outb 46 '•ar••• 37 •l••t•• 41 aoco••• 1. .. t 12~ .oo h•tl
South 75 ••tr••• 2t •iaat.e1 15 ·aacoa4• l ••t 171.71 f••t.;
l out II 6t 4 e1re e1 u •laate1 21 eecoa•• l a1t Sl3 . 5 2 f••t;
so.ti> " '•a-r-••• 41 •1.Datel .. , aecoa.•• l ••t Ul .32 feet;
lout II 11 dear••• 43 aioateo 511 ••COD-4 I l aot 40.30 h•tl
•••tll '2 4eaTeell 27 •i•ut.ea 51 ••coA4 • l •Ot 176 .'10 feet;
lout 11 1• ••ar••• 45 •l ••t•• 07 1ecoo 4a l ••t 5 44.0• fee t to a 2
l a c 11 lroa p lp• p l •c •• for COt'ae~ lo t ho Va1t a rl7 11 .... of th•
llecllea tl•er at lta l.at e r eact lo11 wlth th• lorth•olt ll•• of th•
l llltba l hff Cat-off:
173
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IOI 27 1075
Parcel It (Co•t'•.>
TltlCt lortb 22 ••er••• 2• •i•ute1 37 1acoa41 l••t wltb tba Vaat
book of the lacb•• liTer 1 di1t1nce of 2t2.72 feet to 1 2 incb
&llTani&od iroa ~ipe p l1ce4 for cor••r;
TltlCI h. • aortllarl1 41.rectloa alo101 tli• Veatao1t beak of the
lecbe• l iTer the followlac co•r•e• ••• •l 1t 1ace11
llort• B ••ar••• 19 aiaetaa 40 • •eo•d • 1 .. t l.U.U !eet; llortb 01 ••are•• H •lD•t•• 41 ...... , ···~ 'll.24 feet; llortb 20 ••ar••• 01 •b•t•• 5' 01coad • ... t 23L4l feet; llortb 24 ••art•• 26 •d.a•t•• 30 1 eco•d • l u t 14t .02 feet; llortli u ••ar•H 42 •!nut•• 12 1 ecoacl • t u t 2u .11 feet; llortb 45 ••ar••• H •'-••t•• H • eC014 a l.u t 116. 90 '••t : •ortll 23 ••ar ou 10 alnatu 41 aecoa• • 1. .. t 302.41 fe et i
llortb 19 ••&•••• 26 •l••t•• 14 •oco104 1 l••t 46' .n Ca et to • 2 iacb &•lTaoloa4 lro• pipe place4 for corner;
TltlCI b • Vu t1rl7 ••• loetll•••t or l 7 •iroctlo• with the So11tb ••• la et b ••Ir. I of •!•"•• l{Tor t .. , followiaa ~o•t ••• ··~ diotaacui
lortb 05 4e&r•H 44 aiDutu 54 • ecoad • Vut 116,94 feet; llort• 19 .. , .... Ot •lD11t u 15 ••coa• • Voi t 161,60 {eet; lortb l4 .. , .... 28 •iaut ea 30 aecoad• Vu t U .70 fee t; llortb H 4e&r••• ,. •la•t •• 02 ••co••• Vut 251.&2 feet: llortb 74 ••&r•e1 2' a iavte1 43 aecoatla Vut 121 ,)l hat; lorth " ••sr••• 28 •ie•t•• 27 a ecoacl• Vaat 215 .11 feet; loetb 71 .. , .... 06 •iD•t•• lt 1eco••· lleH 144,U !aet; lo11th " ••sr••• H •h11ste1 " ••co••• Vett 114.)) !uc; loetb S7 ••ar••·• 24 •lo11te• 40 aeco•• • Volt 5U .5S fe et; South. 44 .. , .... 41 .1 ... t •• 5S ••c.•••• Veo t '30 .S3 f••'tt •••th 32 .. , .... 46 aiaot u 2' ••coad 1 Veit H5,6S fe et; So•tb 37 .. , .... H •h•t•• S2 aeco941 Veot 277 ... feet; •••tb 15 ••••••• o• •i••t•• u •ecoad• Veot 208,'5 f••t: '••t~ 54 <l•&Taoo l2 •i••t•• H ••coa4 a Veot IH .U feet; loetb 31 ••••••• II •h11tu 26 aecoatl 1 lie et 440,94 feet; ·'••th 2' .. , .... 24 •lD•t•• 01 ••c.oa411 • llut 3S6 ,0l !eac; Co11th 06 .. , .... 17 •hiatu 0 •••o••• v .. t • 4lotnce of 261.69 feet to tbepl ace of b•& ha i•& 10.d CDDtaiDio1 159.tO AC rl'I or had,
174
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IOI 27 1076
UllUlT I
attllC: the c.e•ter lh• of the u;loti•& '"" tlari•• Ttr•h••l Doell Jlo. S loa4 ocroaa that certaia 934.0 acre tract of 1aa4 oat of the
Vlllla• CarTOI I l•r•eJ, Alaa tra ct llo. 13, the lurr 'Caovall
l•r••Y• Alaetract l o. 406, t·h• Joli• C. l"cb•r lar••J• Abau a ct llo.
lH, tha O, Xootee lur•cy, lb01tuct lo. 177 ii J eftcroo• Co••tf1
T•••a aad th• c eaterllDe of aail Doe ll 110. S load l>eha •ore
partlc•l•rl7 deecrll>ed lay aetee aad \ouade •• fol lov11
COlllllUClllC: at the lou tbeaat cor11•r of tha t certa ia 247.492 acre
tract of l aad deacril>ed ia dead fro•'"" Ma rlo• Teralaa l a , loc.
t o th• City of laderl a ad, teaaa 4ated lo•••b•r 15, 1914 ;
TlltllCt lortb 02 de&raaa 21 al•atea 45 aecooda laat a l••& the laot
lloa of aald City of laderla•• 267.•92 acre tract of l aod a
diot aoca of 194.34 fea t to a I iach sa lyaai r.ad iron pipe pla cod
a t th• laatao1t Soutberly corner of that c ~rtala 9l4 a cre t r1ct
of lntJ
t \\!.llCI llorth 46 ••&r••• 19 ·•l aat ea %3 1ecood1 laat a Ion& th•
laat•o•t loutheaat ll•• o f aald 934 aero tract of la•• a 4iot aoc•
of 96.47 feat to the cao terlloa of tho a tla tlna Doell llo. 5 load
and locatlna the b•&i••i•& of th• herain deacrlbed centerline ;
tlllllC& llorth Ol de1reea 15 aiaut•• 3% aecoo4a taat a loa& the
c eat erl he of aaid l>o cll llo. 5 1oa4 a 4 iat •••• of 1601.60 feet to
eo aa1h polaq
Tl&llCI •ortlt. l3 de1 r eea 4 5 a ia~t •• 1 2 oecoo61 taat a l oaa the
ceaterliae of aai4 Dock lo. 5 loa4 porallel wi th ao4 30 f eet
l o•tlt.ea1t e rl7 of a lo•tbeaat lioa of oa i• City Df leder l aa4
%67.492 acre tract of l aad a dia t aace of 149.46 fe at to •• &ft&l •
p• ia t:
t \\KllCI lortlt. 06 '•&r••• 30 a iavtea 39 ••••••• Vea t a lo•a 'th•
c ••t •rl la• of oaid l>ock lo. 5 &oa4 para l l a l with &ftd %5 h a t la •t
of •• laot llao of ••1• City ot ••'•rl••' 267.492 acre tra c t of
lat>d a 4lat a aca of 2211 .23 fee t t o ao aa&l e polat;
tllllCI llortll 50 'e&reca 07 a ia•t•• 19 aocoa41 Veat al oa& th•
c aater l iee of aa1 4 Do ck llo. 5 t oa6 p a r a llel with a •' 20 f eet
llorthaaat of t"• lort hoaat lloe of oal • CitJ of le,er la•d 267.492
a cre tract of l a•' • diataaca of 14l,1% het to a llortlt.ar l7 lb•
of aai4 934 a cre t ract of laad a od tot"• poi•t of t er•iaatioa of
tl\la ceatarllDo deacrlptloa, fro• u1' po lat of t eraiaatioa a 1
i ach aal•••l&ad i ro• pipe p l •c•• at t h• aoat •••therly poiat aaar
the caator of aai• tl4 acre tra ct'' lorthera ~o•••ar7 b aara1
•••tit. 39 ••ar••• l5 aio .. t•.• n aoco••· •••t a diataa ce of 56.4f
f&at.
l trcU2
Du 30 ID oc AH '85
r 175
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100 870110
1~3B971 QUIT CUill DI.ID
Tll ITATI or T1lAI
UOll 4Lt. MU It TllU PlllJllTI TUT: .
COO•TT or Jlrr1110•
SO• 1141111 tllllt •ALt, lllC., •Del••••• coTporotlo•
(•C:raator•), for ea• la coatUere tlo11 of t~t ••"'of T~• Dol lor1
<•IO) ••• et\er 1••• ••• ••l••~l• coa•l•eretloa to it l• lo••• pal• \7 Cltt OJ llDllL.t.ID, TIX.I, 1 aaalclpellt7 (•c:roateo•), t~t
r •c•lpt ••• ••ff lcl•••7 of w\l c\ lo \orolt.7 ock•••l••a••· II•• ClAltlD, IOLI, aa• COl,IYID, ••• \7 tlt.010 praooate •••• Clllt,
II.LL, ••• COl,lt, wltlt.oat wa rra11t7, oapr••• or l•pllod, ••t•
Craatoe, lt• ••c•••••r• ••4 •••l&••, •••J••t to c\e eaceptl•••
••• •t\ar ••ttero •••tl•••• llal••• a ll of Cr••t•r'• rlallt, tit le, ••• lata r eat la tit.a f•llowla& raal propert7 oltaat•• la tlo• ·
Coaat7 of Jofforeoa, ltato of T•••• w~lcll Ora•t•• \al ~••• ••l•& la part aa a .. alclpal l••dflll a laca t\1 \t'O'a ••• curr••t\7 l 1
l eeela& u•••r • Leaoa , ••t•• Jeaa•r7 11, 1'10:
All t\et certah tract or parcel et l a•• ••••rlloo• ••
lsbl~lt l atteclla• \orate a•••••• 1 port llar••f for 111 porpo101
(t"• ·L•••tl11•),
tOOltlll VITI ell ••• olaaa l ar t \• rl1lot1 ••' appart••••••• r•apactl••l7 lloloaal•a tllar•t••
t\lo •••••7•••• l a •••• lt.7 Creator ••• ••••pt•• lo7 Croat&• 1allject to tll• ll•ltetl••• eat tartlt. lt.•r •l•, leclo4loa
•ltlt.oat ll•ltetlea, tll• fo l lowl•a •
(l) la7 ••• 111 oil, 1••• ••• a l••r•l rl1llt• pra1eatl7
oat•t•••h1 ••• •••o• of racer• lt.7 tlllr& pertlaa (.,ll•t~tr
afflllat•• or •••ffl\lat•• wltll Oroator) affectl•a tlle L•••fill
lacladl•& a ll rhllta nletl•& tll•ret• ••• «;re•tor llltl'll to
ltaa lf, aaccuaor•, ••• ·uala•• ••7 •tll•r oll, &••• ••• •la•r•l•
affectl•a tlt.o ~•••fl ll a ll of w\lcll ora •••r•••lJ ElC&rTID fro•
tlll• •0••···~··1
(ll~ ll l ••t•taa• l•& l•tera•t•, ilafecta, •••••••t o , •lt•••••t •• laatr••••t.•. c.••••••t•• e:•••tti•••• t i•••· o•c••llroaca• ••• etller aattor• affectl•a tll• \•••fill ••
Creator'• l•t•ro•t tllar•l• .. t r •ce>r4, tll•r<: ~•L•a a11:pr•••l1
l l C&J'TSD fr•• t ll l • co•9•7••c• e I l p lp• l ha• ( (ac l•• lat o 11
••t•aa, fltthaa, ••••••ti•••• po•pa, -tara, corr••l•• co•t rol
••• protactloa •••iP•••l, ••• •Uoor ral afod f aclllt l ea ••'
o,alpaaat), ell electric ••• talapll~•• pole,, ~lr11, ••• ralat•• •••lpaaat ••• fecilh t aa, aad el l otllar .. la4a af propart J laceta4
••• •••or, or allo•• Cll• l ••• p•r••••t t• ••7 or a 11 •f tlla foraaol•al
100:81-0110 ---···-·--· ...... _ ..
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(t l l) l a7 ••• all •l•cra,••cl••• cea f l l ct1, er
a111ert•a•• l a•••• or •••••••l \l•••• •••r•••"••~t•, ••f •ct•, co••lt l•••. •t•t• et fact a, ••• ot ~•r ••tt•r• t ~•t •• aecMr•t•
••r••J ef tllle La••flll •••14 •l•cl•••I
(t•) Aa7 ••• ol l r lalllto ••• clol•• •f etller t •II• ••1
"• la •ct aol po•••••l oa of tlll• L•••f lll ;
(•) l•J ••• el l cedltlo•o ••• •t "•r aattere t "•t •••
•l1l .. le oa t .. e Laa•f lll1
(yl) l•J •••el l tltl• ••foct t ••• ••••r •• cl a la1 of
racor4 affact l•a tba L•••t lll;
(•tl) la7 ••• •l l l ln1 affoct h & t llla L•••rll l for
l•"O• or ••tarl•ll
<•iii) 11 l lawa, ordhaaca, raaa 1at lo••, ••4 or••r• of
1•••ru1eatel awtlllorltla• of wllat•••r l"rla•lctlo• d fectln& or
relatiaa to t"• Loa•fll11
(la) 'r•ator lllllYll ••ta ltaal f, ••••••••r•, ••'
•••la•• •• ·····••t ar aeaaaa•t• t br••&ll tll••• ••rt • or t bt Lea•Clll oa t111• cloalag lat• lll•••••••r •"lclll ar• aot p•r•ltta• or
fer wlllclll.,raat•• Illa& •at appll•• l• "• peraltt•• ~7 t "• l t at• of
T•••• ••a •••lt•r7 l •••fll l wl.t111 r•aaa••"l• t •r•• l•cl••l•a • wUtll ar wU t lll• ef at l•••l fift7 faot (SO') for p l.pel hu ••'
atllltha wbiclll ara r•'l•ir•• for tlll• operatl aa ••• ••P•••l o• of
tlll• "••l•a•• co•••cte• oa '•••t•r or it• ••••••••r'• prepert 7 a•Jol alaa tllla La••f ll l or la tllla a lta,aetl•• 'r••l•• alllall areal
t • Cr eator wlt~oat c•at ot oK,•••• ••c• •••••••t or •••••••t•1 •••
. (a) 'r••toa, l t a aacceoto r• ••• •••t a•• 1loe l l ••l ,ar•lt t lllo La••f ill tori•• lllallor t llloa por•i t t a4 ~or c l•••r• '°1
tllo l t ato of Toa&• ••• ta ••Clll a ••••or •• •ot l o l •cr•••• tll•
410 la•1• fro• t"• La•.•f ll l oat o '"•••tor'• a4 Ja l•l •I prap~rt7 •••
•• ••t to 4atract fro• Or••t•r'• ••Joialaa prepert 7.
TO IJ.YI A.ii TO OOLI tllle Lea•tlll, l •l•tllle1 altll el l •••
• la1a lar app•rtaaeacoa, aa~ ject te t lll• ••c•ptl•••, r•••r•at l•••,
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16~
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
6:30 P.M. December 17 , 1985
The meeting was called to order by Mayor Protem R. A. Nugent at 6:30 P.M.
Members present were Mr. R. D. Sawyer, Mr. T. E. Lee, Jr., Mr. M. R. Bourque
and Mr. R. A. Nugent. Mr. H. E. Nagel was absent.
A motion was made by Mr. Bourque and seconded by Mr. Sawyer to approve the
minutes of the December 10, 1985 meeting. All Voted Aye .
A motion was made by Mr. Lee and seconded by Mr. Sawyer to approve executing
a quit claim deed accepting property donated to the City of Nederland by
Sun Marine Terminals, Inc. All Voted Aye .
A motion was made by Mr. Lee and seconded by Mr. Sawyer to approve Change Order
No. 3 in the amount of $4,528.00 to G. R. Grier, Job No. 3Wl7D, wastewater treat-
ment plant. All Voted A.ye.
A motion was made by Mr. Bourque and seconded by Mr. Lee to approve .applications
for "on premise" consumption of alcoholic beverages in accordance with Ordi-
nance #70 as follows:
Mazzio's Pizza
The Jones'
Peggy's Seafood
Taco Rey Mexican Restaurant
Mr. Gatti's Pizza
LaSuprema Mex.ican Restaurant
Club 493 of the American Legion
Irene' s Lounge
The Schooner
J. Marie 's
Linder's Bar-B-Que
Pizza Inn
Emilio's Italian Cuisine
Italian Restaurant & Flying Pizza
A motion was made .by Mr. Sawyer and seconded by Mr. Bourque to table taking
any action regarding a lawsuit against the City. All Voted Aye.
The City Council gave infot:111al approval to Mr. Frank Lamson to settle the
Holcomb sidewalk case.
Discussion Items:
1. The City Manager asked for approval to negotiate with the Drainage District
to place a bridge at Avenue H @ 14th Street to allow for an increased flow
from the Midway Addition.
1 .-0 5
SPECIAL MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
9:30 a.in. May 16, 20~3
1. MEETING
The work session was called to order at 9:30 a.m. by Mayor R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, . Nederland, Texas, for the
purpose of considering the following items. See attached for quorum.
2. EMPLOYEE GROUP BENEFITS
The regular· meeting was recessed at 9:31 a.m. by Mayor Nugent for the purpose of
conducting a City of Nederland Employee Benefits Trust meeting to award bids for
employee group benefits.
The regular meeting was reconvened at 10:31 a.m. by Mayor Nugent.
A motion was made by Councilmember Austin and seconded by Mayor Pro Tern Neal
to authorize the transfer of funds from the City of Nederland to the City of Nederland
Employee Benefits Trust to pay for employee-related benefits. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
3. ADJOURN
There being no further busines~ a motion was made by Mayor Nugent and seconded
by Councilmember Albanese to adjourn the meeting at 10:32 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
City of Nederland, Texas
[Page Intentionally Left Blank]
SPECIAL MEETING OF THE CITY OF NEDERLAND
EMPLOYEE BENEFITS TRUST
9:31 j .m. May 16, 2013
1. MEETING
The meeting was called to order at 9:31 a.m. by Chairperson R. A. Nugent at the
Nederland City Office Building, 1400 Boston Avenue, Nederland, Texas.
2. APPROVAL OF MINUTES
A motion was made by Vice-Chairperson Neal and seconded by Trustee Albanese to
approve the minutes of the May 21, 2012 meeting of the Employee Benefits Trust as
written. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: None.
3. LONG-TERM DISABILITY
A motion was made by Trustee Rogers and seconded by Trustee Austin to award bids
received for employee long-term disability insurance to Mutual of Omaha as
recommended by IPS and the City of Nederland Insurance Committee. MOTION
CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: N.one.
4. LIFE INSURANCE
A motion was made by Trustee Albanese and seconded by Trustee Austin to award
bids received for employee life insurance to Mutual of Omaha as recommended by
IPS and the City of Nederland Insurance Committee. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: None.
5. DENTALINSURANCE
A motion was made by Trustee Rogers and seconded by Trustee Austin to award bids
received for employee dental insurance to Humana as recommended by IPS and the
City of Nederland Insurance Committee. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: None
Minutes continued, May 16, 2013
6. HEAL TH INSURANCE
A motion was made by Vice-Chairperson Neal and seconded by Trustee Austin to
award bids received for employee health insurance to TML Intergovernmental
Employee Benefits Pool utilizing Plan 4 as the standard plan with employee
contribution at $443.58 for employee only, $873.40 for employee + spouse, $651,52
for employee + children and $1,012.30 for employee + family. In addition, the city
will eliminate plans 1, 2 and 5 as recommended by IPS and the City of Nederland
Insurance Committee. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: None.
7. ADJOURN
There being no further business a motion was made by Trustee Rogers and seconded
by Trustee Albanese to adjourn the meeting at 10:31 p.m. MOTION CARRIED.
Ayes: Chairperson Nugent, Trustees Austin, Neal, Albanese, and Rogers.
Noes: None.
City of Nederland Employee Benefits Trust
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30,.m. May 20, 2013
1 . MEETING
The meeting was called to order at 4:30 p .m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2 . INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Mayor Pro Tern Neal
to approve the Consent Agenda Items 3 a-e as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Councilmember Albanese.
a. Minutes -May 6, 2013 regular meeting
b. April 2013 Departmental Reports
c. Tax Assessor Collector Report -April 2013
d. Consider action authorizing t he closu re of various City streets for First Baptist
church's "Crawfish Boil Night."
e. Payments:
• Aiko, Inc. $34,670.39, Nederland Water Treatment Plant
Repairs/Improvements project
• Carroll & Blackman, Inc. $1,843.57, Phase II MS4 Permit
Implementation Services
• LaBiche Architectural Group, Inc. -$36,400.00, Nederland Public Safety
Complex project
• Schaumburg & Polk, Inc. -$15,425.26, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, I nc. -$2,092.94, 2010 Water System Improvements
project
• Schaumburg & Polk, Inc. -$20,191.82, 2013 Concrete Street
Rehabilitation project
• City Attorney Jesse Bra nick -$21,295. 72, Sunoco land sale
• Jim Wimberley -$2,125.00, Sunoco land sale
Minutes Continued, May 20, 2013
4 . REGULAR AGENDA
a. Gay Ferguson, City Clerk, administered the Oath of Office to Talmadge C. Austin,
Councilmember Ward I.
b. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Rogers to elect Councilmember Albanese Mayor Pro Tempore in accordance with
Section 3.06 of the City Charter. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Councilmember Albanese.
c. Philip Klein presented the 2012 Financial Report for the Nederland Volunteer Fire
Department, Inc. He reported the annual 990 will be filed on August 1, 2013.
Over the past 17 years, the Corporation raised over $660,000 from the
community and business partners to provide life saving equipment for the fire
department and citizens of Nederland. The 2012 donation includes 2 sets of
safety gear, 2 pair of boots, safety training, hoods, gloves, EMS training, and
uniforms totaling over $18,000.00.
A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to accept a donation from the Nederland Volunteer Fire Department.
MOTION CARRIED.
Ayes: Mayor Nugent, Counci lmember Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
d. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to accept a grant from the Foundation for Southeast Texas. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
e. 2013 Street Program:
i. Ricky Bourque, Schaumburg & Polk, reported on the street assessment of
city streets as authorized at the February 25, 2013 City Council meeting.
Physical assessment, testing and traffic counts all were taken under consideration
when recommending streets and costs estimates to be recommended for repair.
The 3 major streets being recommended to be undertaken this program year are
Canal Avenue from Twin City Highway to 27th Street; Boston Avenue from gtn
Street to 3rd Street; and 13th Street from Chicago Avenue to Nederland Avenue.
ii. A motion was made by Councilmember Austin and seconded by
Councilmember Rogers to authorize the solicitation of bids for the 2013 Hot Mix
Overlay project for Canal Avenue from Twin City Highway to 27th Street; Boston
Avenue from 9th Street to 3rd Street; and 13th Street from Chicago Avenue to
Nederland Avenue. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
Minutes Continued, May 20, 2013
iii. A motion was made by Councilmember Austin and seconded by
Councilmember Neal to approve a work order with Schaumburg & Polk, Inc. for
the 2013 Hot Mix Overlay project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
f. A motion was made by Councilmember Rogers and seconded by Councilmember
Neal to approve Ordinance No. 2013-08, adopting the 2012 edition of the
International Building Code. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
g. A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve a lease agreement with Albanese Nederland SPE, LLC for the
temporary housing of the Nederland Police Department. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
h. A motion was made by Councilmember Rogers and seconded by Councilmember
Neal to approve Ordinance No. 2013-09, authorizing the issuance of City of
Nederland, Texas General Obligation refunding bonds, Series 2013. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
i. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve Ordinance No. 2013-06, authorizing the publication of the
Notice of Intent for certificates of obligations to fund the Nederland Public Safety
Complex project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
i. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to authorize the solicitation of bids for the Nederland Public Safety
Complex project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
Councilmembers Neal and Austin directed the City Manager to place on the next
agenda an item regarding the naming of the Nederland Public Safety Complex.
5. COMMUNICATION
City Manager's Report:
a. Memorial Day City office closure on May 27th
Minutes Continued, May 20, 2013
b. Miscellaneous -Ribbon cutting for Howell's Furniture May 23rd. Budget
process is beginning for next yea r and calenda r will be developed soon. A
workshop will be held in June and a public hearing in August.
6. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 6:05 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Nea l, and Rogers.
Noes: None.
Absent: Mayor Pro Tern Albanese.
ATIEST:
~1~~J.j}f0= G YF€f"9us ~Dty ClerlC
City of Nederland, Texas
R. A. Nugent, May
City of Nederland,
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRES~NT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill ./
Bert Rogers Council Member -Ward IV /
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian ~
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
May 20, 2013
Date
RESOLUTION NO. 2013-06
A RESOLUTION OF U1E CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS
AUTHORIZING THE PUBLICATION OF NOTICE
OF INTENTION TO ISSUE TAX & REVENUE
CERTIFICATES OF OBLIGATION
WHEREAS, the City Council of the City of Nederland, Texas {the "Issuer"), deems it
advisable to .issue Tax .& Rev.enue Certificat.es of .Obligation to fund (1) .the .reno"IUU.ian .and
equipping of a public safety & emergency operations center, (2) renovation and equipping of the
public works building (housing the City Repair Shop, administrative offices, and storage space),
including the renovation and expansion of the City garage, and (3) to pay for professional
services related thereto and the issuance costs of the certificates., in accordance with the Notice
hereinafter set forth, now therefore,
• • • • • • •
BE IT ORDAINED BY THE NEDERLAND CITY COUNCIL:
Section 1. The facts and recitations contained in the preamble of this Resolution are
hereby.found.and .declared .to be .true.and .con:ect.
Section 2. The City Clerk is hereby authorized and directed to cause to be published in
the manner required by law a notice of intention to issue Certificates of Obligation in
substantially the form attached hereto as "Exhibit A" and made a part hereof.
Section 3. The notice set forth in "Exhibit A" to this Resolution shall be published once
a week for two consecutive weeks in a newspaper of general circulation in the Issuer, the date of
the first publication to be before 30 days prior to the date set in said notice for the issuance of
Certificates of Obligation.
Section 4. The Mayor, City Clerk, and other officers of the lssuer are hereby authorized
and directed to do any and all things necessary or desirable to carry out the provisions of this
Resolution.
Section 5. This Resolution shall take effect immediately upon its passage.
PASSED, APPROVED, AND ADOPTED this 20TR day of May 2013.
AITEST:
~~%f~&~
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
EXHIBIT A
NOTICE OF INTENTION TO ISSUE
CERTIFICATES OF OBLIGATION
TAKE NOTICE that the City Council of the City of Nederland, Texas (the
"Cityj, shall convene at 4:30 p.m. on June 24, 2013 at its re.9ular meetin.9 place in the
City Hall, 1400 Boston Avenue, of said City and during such meeting, such City Council
will consider the passage of an ordinance authorizing the issuance of certificates of
obligation in an amount not to exceed $3,000,000 for the purpose of paying contractual
obligations to be incurred (1) for the renovation and equipping of a public safety &
emergency operations center, (2) renovation and equipping of the public works building
(housing the City Repair Shop, administrative offices, and storage space), including the
renovation and expansion of City garage, and (3) to pay for professional services
related thereto and the issuance costs of the certificates. The certificates of obligation
will be payable from the levy of an annual ad valorem tax, within the limits prescribed by
law, upon all taxable property within the City and from a limited pledge of a subordinate
lien on certain available net revenues derived from the operation of the City's
waterworks and sanitary sewer system. The certificates of obligation are issued, and
this notice is given, under and pursuant to the provisions of Texas Local Government
Code, Section 271 .049, as amended.
May 13, 2013 12:35 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-C02013) Page I
SOURCES AND USES OF FUNDS
City of Nederland. Texas
Tax & Rev Certificates of Obligation, Series 2013
Sources:
Bond Proceeds:
Par Amount
Accrued Interest
Premium
Uses:
Project Fund Deposits:
Project Fund
Other Fund Deposits:
Accrued Interest
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional PToceeds
2,060,000.00
3,593.33
106,137.80
2,169,731.13
2,100,000.00
3,593.33
49,185.00
13,390.00
62,575.00
3,562.80
2,169,731.13
May 13, 2013 12:35 pm Prepared byDBC Finance (Finance 7.004 nederland:NEDERLAN-C02013) Page 2
BOND PRICING
City of Nederland, Texas
Tax & Rev Certificates of Obligation, Series 2013
Bond Component
Maturity
Date Amount Rate
Tax & Rev Certifcates of Obligation, Series 2013:
09/01/2014
09/01/2015
09/0l/20i6
09/01/2017
09/01/2018
09/01/2019
09/01/2020
09/01/2021
09/01/2022
09/01/2023
09/01/2024
09/01/2025
09/01/2026
09/01/2027
09/01/2028
09/01/2029
o9101/2ojo
09/01/2031
09/01/2032
09/01/2033
'Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
50,000 2.000%
50,000 2.000%
50,000 2.000%
50,000 2.000%
95,000 2.000%
100,000 2.000%
100,000 2.000%
100,000 2.000%
105,000 2.0000/o
IOS,000 3.0000/o
110,000 3.0000/o
110,000 3.000%
115,000 3.000%
120,000 3.0000/o
125,000 3.500%
125,000 3.500%
130,000 3.5000/o
135,000 3.500%
140,000 3.500%
145,000 3.5000/o
2,060,000
07/01 /2013
07/23/2013
03/01/2014
2,060,000.00
106,137.80
2,166,137.80
-13,390.00
2,152,747.80
3,593.33
2,156,341.13
Yield Price
0.500% 101.651
0.600% 102.924
0.700% ioj.986
0.8500/o 104.629
1.050% 104.710
1.200% 104.695
1.400% 104.044
1.600% 103.028
1.800% 101.672
2.000% 108.285 c
2.000% 108.285 c
2.200% 106.567 c
2.200% 106.567 c
2.400% 104.879 c
2.400% 108.947 c
2.750% 106.003 c
2.750% 106.003 c
3.000% 103.955 c
3.0000/o 103.955 c
3.0000/o 103.955 c
I OS. I 52320%
-0.6500000/o
104.502320%
May 13, 2013 12:35 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-C02013) Page 3
BOND SUMMARY STATISTICS
City of Nederland, Texas
Tax & Rev Certificates of Obligation, Series 2013
Bond Component
Dated Date
Delivery Date
Last Maturity
Arbitrage Yield
True Interest Cost (TIC)
Net Interest Cost (NiC)
All-In TIC
Average Coupon
Average Life (years)
Duration of Issue (years)
Par Amount
Bond Proceeds
Total Interest
Net Interest
Total Debt Service
Maximum Annual Debt Service
Average Annual Debt Service
Underwriter's Fees (per $1000)
Average Takedown
Other Fee
Total Underwriter's Discount
Bid Price
Tax & Rev Certifcates of Obligation, Series 2013
Par Value
+ Accrued Interest
+ Premium (Discount)
-Underwriter's Discount
-Cost of Issuance Expense
-Other Amounts
Target Value
Target Date
Yield
TIC
2,060,000.00
3,593.33
106,137.80
-lj,390.00
2, 156,341.13
07/23/2013
2.643516%
07/01/2013
0712312013
09/01/2033
2.254287%
2.643516%
2.?49645%
2.874982%
3.117789%
12.169
10.142
2,060,000.00
2, 169,731.13
785,475.00
692,727.20
2,845,475.00
153,000.00
141,348.08
6.500000
6.500000
104.502320
Par
Value
2,060,000.00
2,060,000.00
Price
105.152
All-ln
TIC
2,060,000.00
3,593.33
106,137.80
-13,390.00
-49,185.00
2, 107, 156.13
07n3/201 3
2.874982%
Average Average
Coupon Life
3.1 18% 12.169
12.169
Arbitrage
Yield
2,060,000.00
3,593.33
106,137.80
2,169,731.13
07123/2013
2.i54287%
May 13, 2013 12:35 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-C02013) Page 4
BOND DEBT SERVICE
City ofNederland, Texas
Tax & Rev Certificates of Obligation, Series 2013
Period Debt
Ending Principal Coupon Interest Service
09/30/2014 50,000 2.000% 68,600 118,600
09/30/2015 50,000 2.000% 57,800 107,800
09/30/2016 50,000 2.000% 56,800 106,800
09/j0/2011 50,000 2.000% 55,800 105,800
09/30/2018 95,000 2.000% 54,800 149,800
09/30/2019 100,000 2.000% 52,900 152,900
09/30/2020 100,000 2.000% 50,900 150,900
09130/2021 100,000 2.000% 48,900 148,900
09/30/2022 105,000 2.000% 46,900 151,900
09/30/2023 105,000 3.000% 44,800 149,800
09130/2024 110,000 3.000% 4i,6SO I 5i,650
09/30/2025 110,000 3.000% 38,350 148,350
09/30/2026 115,000 3.000% 35,050 150,050
09130/2027 120,000 3.000% 31,600 151,600
09/30/2028 125,000 3.500% 28,000 153,000
09130/2029 125,000 3.500% 23,625 148,625
09/3012030 130,000 3.500% 19,250 149,250
09/30/203 j 135,000 3.500% 14,100 149,700
09/3012032 140,000 3.500% 9,975 149,!175
09/30/2033 145,000 3.500% 5,075 150,075
2,060,000 785,475 2,845,475
May 13, 2013 12:35 pm Prepared by DBC Finance (Finance 7 .004 nederland:NEDERLAN-C02013) Page5
BOND DEBT SERVICE
City of Nederland, Texas
Tax & Rev Cenificat7s of Obligation, Series 2013
Annual
Period Debt
Ending Principal Coupon Interest Debt Service Service
03/0112014 39,200.00 39,200.00
09/0112014 50,000 2.0000/o 29,400.00 79,400.00
09/30/2014 118,600
03/01/20 15 28,900.00 28,900.00
09/01 /2015 50,000 2.000% 28,900.00 78,900.00
09/30/2015 107,800
03/01/2016 28,400.00 28,400.00
09/0112016 50,000 2.000% 28,400.00 78,400.00
09/3012016 106,800
03/01/2011 27,900.00 27,900.00
09/01/2017 50,000 2.000% 27,900.00 77,900.00
09/30/2017 105,800
03/01/2018 27,400.00 27,400.00
09/01/2018 95,000 2.000% 27,400.00 122,400.00
09/30/2018 149,800
03/0112019 26,450.00 26,450.00
09/0112019 100,000 2.0000/o 26,450.00 126,450.00
09130/2019 152,900
03/01/2020 25,450.00 25,450.00
09/01/2020 100,000 2.0000/o 25,450.00 125,450.00
09130/2020 150,900
03/01/2021 24,450.00 24,450.00
09/0112021 100,000 2.0000/o 24,450.00 124,450.00
09/30/2021 148,900
03/01 /2022 23,450.00 23,450.00
09/01 /2022 105,000 2.000% 23,450.00 128,450.00
09/30/2022 151,900
03/01 /2023 22,400.00 22,400.00
09/01/2023 105,000 3.000% 22,400.00 127,400.00
09/30/2023 149,800
03/01/2024 20,825.00 20,825.00
09/01/2024 110,000 3.000% 20,825.00 130,825.00
09/30/2024 151,650
03/01/2025 19,175.00 19,175.00
09/01/2025 110,000 3.000% 19,175.00 129,175.00
09130/2025 14&,350
03/01/2026 17,525.00 17,525.00
09/01/2026 115,000 3.000% 17,525.00 132,525.00
0913012026 150,050
03/01/2027 15,800.00 15,800.00
09/01/2027 120,000 3.000% 15,800.00 135,800.00
09130/2027 151,600
03/01/2028 14,000.00 14,000.00
09/01/2028 125,000 3.500% 14,000.00 139,000.00
09130/2028 153,000
03/0112029 11,812.50 11,812.50
09/01/2029 125,000 3.500% 11,812.50 136,812.50
09/30/2029 14&,625
03/01 /2030 9,625.00 9,625.00
09/01 /2030 130,000 3.5000/o 9,625.00 139,625.00
09/3012030 149,250
03/01/2031 7,350.00 7,350.00
09/01 /2031 135,000 3.500% 7,350.00 142,350.00
May 13, 2013 12:35 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDER1.AN-C02013) Page 6
BOND DEBT SERVICE
City of Nederland, Texas
Tax & Rev Certificates of Obligation, Series 2013
Period
Ending
09/30/2031
03/01/2032
09/01/2032
09/30/2032
03/01/2033
09/01/2033
09/30/2033
Principal
140,000
145,000
2,060,000
Coupon Interest
4,987.50
3.500% 4,987.50
2,537.50
3.500% 2,537.50
785,475.00
Annual
Debt
Debt Service Service
149,700
4,987.50
144,987.50
149,975
2,537.50
147,537.50
150,075
2,845,475.00 2,845,475
May 13, 2013 12:35 pm Prepared byDBC Finance (Finance 7.004 ncderland:NEDERLAN-C02013) Page 7
Bond Component Date
FORM 8038 STATISTICS
City ofNederland, Texas
Tax & Rev Certificates of Obligation, Series 2013
Dated Date
Delivery Date
Principal
07/01/2013
07n3/2013
Coupon Price
Tax & Rev Certifcates of Obligation, Series 2013:
09/0112014 50,000.00 2.000% I 01.651
09/01/2015 50,000.00 2.000% 102.924
09/01/2016 50,000.00 2.000% 103.986
09/0112017 50,000.00 2.000% 104.629
09/01/2018 95,000.00 2.000% 104.710
09/01/2019 100,000.00 2.000% 104.695
09/01/2020 100,000.00 2.000% 104.044
09/01/2021 100,000.00 2.000% 103.028
09/01/2022 105,000.00 2.0000/o 101.672
09/01/2023 105,000.00 3.000% 108.285
09/0112024 110,000.00 3.000% 108.285
09/01/2025 110,000.00 3.000% 106.567
09/01/2026 115,000.00 3.000% 106.567
09/0112027 120,000.00 3.000% 104.879
09/01/2028 125,000.00 3.500% 108.947
09/01/2029 125,000.00 3.500% 106.003
09/01/2030 130,000.00 3.500% 106.003
09/01/2031 . 135,000.00 3.500% 103.955
09/0112032 140,000.00 3.500% 103.955
09/0112033 145,000.00 3.500% 103.955
2,060,000.00
Stated
Maturity Interest Issue Redemption
Date Rate Price at Maturity
Final Maturity 09/!H/2033 3.500% 150,734.75 145,000.00
Entire Issue 2,166,137.80 2,060,000.00
Proceeds used for accrued interest
Proceeds used for bond issuance costs (including underwriters' discount)
Proceeds used for credit enhancement
Proceeds allocated to reasonably required reserve or replacement fund
Redemption
Issue Price at Maturity
50,825.50 50,000.00
51,462.00 50,000.00
51,993.00 50,000.00
52,314.50 50,000.00
99,474.50 95,000.00
104,695.00 100,000.00
104,044.00 100,000.00
103,028.00 100,000.00
106,755.60 105,000.00
113,699.25 105,000.00
119,113.50 110,000.00
117,223. 70 110,000.00
122,552.0S 1 i5,ooo.oo
125,854.80 120,000.00
136,183.75 125,000.00
132,503.75 125,000.00
137,803.90 130,000.00
140,339.25 135,000.00
145,537.00 140,000.00
150,734.75 14S,ooo.oo
2,166,137.80 2,060,000.00
Weighted
Average
Maturity Yield
12.1909 2.2543%
3,593.33
62,575.00
0.00
0.00
ORDINANCE NO. 2013-08
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS ADOPTING THE 2012 EDITION OF THE
INTERNATIONAL.BUILDING CODE, REGULATING AND GOVERNING
THE CONDITIONS, MAINTENANCE OF ALL PROPERTY, BUILDINGS
AND STRUCTURES; BY PROVIDING THE STANDARDS FOR
SUPPLIED UTILITIES AND FACILITIES AND OTHER PHYSICAL
THINGS AND CONDITIONS ESSENTIAL TO ENSURE THAT
STRUCTURES ARE SAFE, SANITARY AND FIT FOR OCCUPATION
AND USE; AND THE CONDEMNATION OF BUILDINGS AND
STRUCTURES UNFIT FOR HUMAN OCCUPANCY AND USE, AND THE
DEMOLITION OF SUCH EXISTING STRUCTURES IN THE CITY OF
NEDERLAND; PROVIDING FOR THE ISSUANCE OF PERMITS AND
COLLECTIONS OF FEES THEREFORE; REPEALING ARTICLES 1 IN
GENERAL AND ARTICLE 2 BUILDINGS, IN CHAPTER 18 OF THE
CITY OF NEDERLAND CODE OF ORDINANCES.
The City Council of the City of Nederland does ordain as follows:
Section 1.. That a certain document, three (3) copies of which are on file in the office of the
City Clerk of the City of Nederland, being marked and designated as the International
Building Code, 201.2 edition, including Appendix G and H, as published by the International
Code Council, be and is hereby adopted as the Building Code of the City of Nederland, in
the State of Texas for regulating and governing the conditions and maintenance of all
property, buildings and structures; by providing the standards for supplied utilities and
facilities and other physical things and conditions essential to ensure that structures are
safe, sanitary and fit for occupation and use; and the condemnation of buildings and
structures unfit for human occupancy and use; and the demolition of such existing
structures as herein provided; providing for the issuance of permits and collection of. fees
therefor; and each and all of the regulations, provisions, penalties, conditions and terms of
said Building Code on file in the office of the Inspection Department are hereby referred to,
adopted, and made part hereof, as if fully set out in this ordinance, with the additions,
insertions, amendments and deletions, If any, prescribed in Section 2 of this ordinance.
Section 2. The following sections if the 2012 International Building Code is hereby revised:
Section 101.1. Title, of the 2012 International Building Code is hereby revised by inserting
into the jurisdiction the words City of Nederland.
Section 104.10.01 Flood hazard area, of the 2012 International Building Code Is hereby
revised to read in full as follows:
Section 104.iO.<'.>i Fiood hazard areas. The Building Offidal shali not grant a permit nor
grant modifications to any provisions required in special flood hazard areas unless said
permit or modifications fully comply with the provisions found in Chapter 50 Floods of the
Code of Ordinance.
Section 105.1 Permits required, of the 2012 international Building Code is hereby revised
to read in full as follows:
Section 1.05.1 Permits required. Any owner or authorized agent who intends to construct,
enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure,
or to erect, install, enlarge, alter, repair, remove, convert or replace and electrical, gas,
mechanical or plumbing system, the instillation of which is regulated by this code, or to
cause an·d such work to be done, shall first make application to the Inspection Department
and obtain the required permit to include but not limited to:
• New residential and commercial construction
• Manufactured homes
• Additions and remodels
• Remodels (to include replacement of interior veneer, sheet rock)
• Replacement of exterior veneer, siding
• Carports, patio covers, porches, gazebos, decks and sunrooms
• Outdoor kitchens and fireplaces or permanent fire pits
• Storage buildings (120 sq. ft. or greater)
• Accessory garages, shops and cabanas
• Fences
• Driveways, parking areas and extensions
• New roofs, replacement and roof repairs
• Foundation repairs
• House or building moving
• Building demolition
• Electrical & gas utility reconnections
• Air conditioning and water heater replacements
• Swimming pools and enclosures (in-ground and above ground)
• Trade work (Electrical, Plumbing, HVAC)
Section 105.2 Work exempt from permit, Building: (1) through (13) of the 2012
International Building Code is hereby revised to read as follows:
Section 105.2 Work exempt from permit. Exceptions from permit requirements of this
code shall not be deemed to grant authorization for any work to be done in any manner in
violation of the provisions of this code or any other laws or ordinances of this jurisdiction.
Permits shall not be required for the following:
Building:
1. One-story detached portable accessory structures used as tool and storage sheds,
playhouses and similar uses, provided the floor area is not greater than 120 square
feet and is not constructed on a concrete foundation or slab.
2. Fences under 3 ¥2 feet in height.
3. Painting, papering, tiling, carpeting, cabinets, counter tops and similar work.
4. Repair of existing exterior and interior veneer and does not Include complete or
substantial replacement or other new work.
5. Prefabricated swimming pools that are less than 24 inches deep are not greater
than 5,000 gallons and are Installed entirely above ground.
Section 105 of the 2012 International Building Code is hereby revised by adding section
105.8 Contractor's bond requirements, to read as follows:
Section 105.8 Contractor's bond requirements
(a). It shall be the duty of every person, firm, corporation, contractor or builder, who shall
make contracts for the erection or construction or repair of buildings or structures for
which a building permit is required, to deposit with the city a good and sufficient bond in
the sum of $15,000.00 dollars. Nothing in this code shall be construed to require a person
to obtain a bond or license to do any work himself on his own residence which is occupied
by the owner as his homestead. The bond shall be conditioned that the person, firm,
corporation, contractor, or builder will faithfully conform to the building regulations of the
City of Nederland, and further, that the City shall be Indemnified and saved harmless from
all claims arising from accidents and damage of any character whatsoever caused by the
negligence of such person, firm, corporation, contractor, or builder or by any other
Inadequate work done either by themselves or their agents or employees. The bond shall
be on City bond forms or so written as to similar to and written to allow a third party to file
on the bond without assistance of the City.
(b). The City reserves the right to revoke the bond of any person, firm, corporation,
contractor or builder for reoccurring Incidents of work performed not in accordance with
the bond. The City shall first give notice to the person, firm, corporation, contractor or
builder of a hearing to be held before the Board of Appeals.
*Section 107.1 General is hereby revised to read in full as follows:
General: documents required to be submitted for permit may Include but not limited to:
• Construction plans and documents, storm water plans, statement of any special
inspection, ge~technical report
• Both residential and commercial projects are required to be windstorm certified to
120-mph or greater by submitting an engineered document. A document certifying
the engineer's framing inspection shall be submitted to the City before a City
framing inspection is requested and performed.
• Commercial projects are required to submit proof of registration with the TDLR for
compliance with Texas Accessibility Standards for projects valued at $50,000 and
more.
• An asbestos survey must be made prior to renovation or demolition of public or
commercial buildings and the survey must be submitted to the Inspection
Department prior to a permit being issued.
The documents shall be submitted in two or more sets with each permit application. The
construction documents shall be prepared by a registered design professional and shall be
affixed with their official seal for the following:
1. All group occupancies with a square foot floor area of 5,000 square feet or more.
2. Buildings and structures three stories or more in height.
3. For buildings and structures required by state statutes.
Exception:
1. All group R occupancies not three stories or more in height.
2. The Building Official is authorized to waive the submission of construction
documents and other data not required to be prepared by a registered design
professional if It Is found that the nature of the work applied for is such that review
of construction documents is not necessary to obtain compliance with the code.
Section 107.2.5 Site plan of the 2012 International Building Code is hereby amended to
read in full as follows:
Site plan. The construction documents submitted with the application for permit shall be
accompanied by a site plan showing, to scale, the size and location of new construction
and existing structures on the site, distances from property lines, distances from all
easements, alleys and right-of-ways. The site plan shall also show the direction of storm
water surface drainage existing and finished grade, and, as applicable, flood hazard areas,
floodways, and design flood elevations. The site plan shall be drawn in accordance with an
accurate boundary llne survey. Approval of the site plan by the Bulldlng Official does not, in
any way, release the applicant, contractor and property owner from the responslbllity to
Insure that all structures remain free from encroaching into any easement, alley, right-of-
way or required building setbacks. Except If a License to Encroach is approved by Section
10 of the Zoning Ordinance, at any time, It is found that any structure has encroached into
an easement, alley, right-of-way or setback, the responsible applicant or property owner
shall be required to completely remove the structure from the easement, alley, right-of-way
or building setback.
Section 108.3 Temporary power of the 2012 International Building Code is hereby revised
to read in full as follows:
,.
Section 108.3 Temporary power. Temporary utility service may be supplied to a building
that is under construction only after the owner of the building and the general contractor
make such signed request on a form provided by the Building Official which outlines the
minimum requirements necessary for the release of the utility. The temporary service shall
be provided for a period not to exceed three (3) months. At t~e end of the three (3) months,
ten (10) days written notice shall be provided to the owner or occupant that the utility
service will be disconnected unless permanent approval or an additional temporary permit
has been issued. The Building Official shall then issue written Instructions to the utility
provider to disconnect the temporary service.
Section 109.2 Schedule of permit fees of the 2012 International Building Code is hereby
revised to read in full as follows:
Section 109.2 Schedule of permit fees. On buildings, structures, additions, remodels,
alterations and any other item required to obtain a building permit, a fee for each permit
shall be paid in accordance with the following schedule:
Permit Issuance fee
Inspection
Total Valuation
Up to $999.99
$1,000.00 to $49,999.99
$50,000.00 to $99,999.99
$100,000.00 to $499,999.99
$500,000.00 and up
$20.00
$10.00
Fee
$10.00 dollars for any amount up to $999.99
$15.75 for the first $1,000.00 plus $5.25 for
each additional thousand or fraction thereof, to
and including $49,999.99
$273.00 for the first $50,000.00 plus $4.20
for each additional thousand or fraction thereof,
to and Including $99,999.99
$483.00 for the first $100,000.00 plus $3.15
for each additional thousand or fraction
thereof, to and Including $499,999.99
$1, 7 43.00 for the first $500,000.00 plus
$2.10 for each additional thousand or fraction
thereof.
Permit Issuance and Inspection fee: Unless a permit Is required through other sections of
Chapter 18, a separate fee designated as a permit issuance fee shall be added to every
permit issued. If a permit only requires an inspection or Certificate of Occupancy
inspection, the inspection fee Is added to the permit issuance fee.
Manufactured Homes: a building permit and plan review is required for all manufactured
homes requesting to be located into a designated manufactured home park. The fee shall
be $100.00 in addition to the moving fee Issued to a state licensed manufactured home
mover and installer.
Moving fee: For the moving of any building or structure within or through the streets of
Nederland, the fee shall be $50.00.
Demolltlon fee: For the demolition of any building or structures, the fee shall be $50.00.
Plan check fees: When the valuation of the proposed construction exceeds one hundred
thousand dollars ($100,000.00) and a plan is required to be submitted, a plan check fee
shall be paid to the City in addition to the building permit fee. Said plan checking fee shall
be equal to one-half (1/2) of the building permit fee.
Section 109.3 Building permit valuation of the 2012 International Building Code Is hereby
revised to read in full as follows:
Section 109.3 Building permit valuation. The permit valuation shall be calculated by the
Square Foot Construction Cost for each group shown In the following chart:
GROUP TYPE I II Ill IV v
A-1 Assembly, theaters, with stage 191.00 179.00 163.00 173.00 148.00
A-1 Assembly, theaters, without stage 173.00 160.00 145.00 154.00 129.00
A-2 Assembly, nightclubs 147.00 137.00 126.00 132.00 113.00
A-2 Assembly, restaurants, bars, banquet halls 146.00 136.00 125.00 131.00 1.12.00
A-3 Assembly, churches 176.00 163.00 148.00 158.00 132.00
A-3 Assembly, general, community halls;
libraries, museums 147.00 135.00 120.00 129.00 104.00
A-4 Assembly, arenas 172.00 159.00 144.00 153.00 128.00
B Business 147.00 136.00 119.00 131.00 104.00
E Educational 162.00 150.00 134.00 145.00 119.00
F-1 Factory and industrial, moderate hazard 88.00 80.00 69.00 77.00 56.00
F-2 Factory and Industrial, low hazard 87.00 79.00 68.00 76.00 55.00
H-1 High Hazard, explosives 82.00 75.00 63.00 71.00 N.P.
H234 High Hazard 82.00 75.00 63.00 71.00 50.00
H-5 HPM 147.00 136.00 119.00 131.00 104.00
1-1 Institutional, supervised environment 148.00 138.00 125.00 139.00 112.00
1-2 Institutional, hospitals 252.00 241.00 N.P. 235.00 N.P.
1-2 Institutional, nursing homes 174.00 163.00 N.P. 158.00 N.P.
1-3 Institutional, restrained 170.00 159.00 142.00 153.00 126.00
1-4 Institutional, day care facilities 148.00 138.00 125.00 139.00 112.00
M Mercantile 108.00 98.00 87.00 94.00 75.00
R-1 Residential, hotels 150.00 140.00 127.00 141.00 11.4.00
R-2 Residential, multiple family 125.00 115.00 1.02.00 116.00 89.00
R-3 Residential, one-and two-family 1.19.00 1.13.00 1.06.00 111.00 96.00
R-4 Residential, care/assisted llvlng facilities 148.00 138.00 125.00 139.00 112.00
5-1. Storage, moderate hazard 81.00 . 74.00 62.00 70.00 49.00
5-2 Storage, low hazard 80.00 73.00 61.00 69.00 48.00
*U Utility, miscellaneous 62.00 55.00 46.00 52.00 37.00
*Group U Utility, miscellaneous Includes but not limited to detached garages, and storage
buildings in excess of 400 total square feet.
The applicant for a permit to construct any structure required to secure a building permit
and not listed above, to include but not limited to, open carports, open patio or storage
buildings under 400 square feet, swimming pools (In ground and above ground pools with
a depth of 24 inches), shall provide an estimated cost value at the time of application. If in
the opinion of the building offic.ial, the valuation is underestimated on the application, the
building official shall request the applicant to show detailed estimates to meet the
approval of the building official.
Section 109.4 Work commencing before permit Issuance of the 2012 International
Building Code is hereby revised to read in full as follows:
Section 109.4 Work commencing before permit Issuance. Where work for which a permit
is required by this code is started or preceded prior to obtaining said permit, the fees
herein specified shall be doubled, but the payment of such doubled fee shall not relieve
any persons from fully complying with the requirements of this code in the execution of the
work nor from any penalties prescribed herein.
Section 11.0.3 Required Inspections of the 2012 International Building Code ls hereby
revised to read In full as follows:
Section 110.3 Required Inspections. The Building Official, upon notification, shall make the
inspections set forth in Sections 110.3.1 through 110.3.10 of the Building Code. The
requested inspection will not be performed unless the job site has in place
accommodations for a construction restroom, address numbers installed visible from the
adjacent street, storm water standards In place and accommodations for debris storage
and removal. No Inspections will be performed on job sites found with work debris placed
In a street right-of-way. It is not the duty of the City to remove any type of work debris from
a contractor's job site. It is the duty and expense of all contractors that make contracts for
work performed within the city limits of Nederland, to at all time keep the street right-of-
way clear of debris and to remove all debfis from the job site.
Section 110.3.10 Final Inspection of the 2012 International Building Code is hereby
revised to read in full as follows:
Section 110.3.10. Final Inspection. The final Inspection shall be made after all work
required by the building permit Is completed and the all debris from the permitted work
is removed from the property and disposed of by the contractor at the contractor's
expense. No Inspection will be performed for the contractor if debris from the
contractor's permitted work is placed by the street for city sanitation pickup.
Section 113.1 General of the 2012 International Building Code Is hereby revised to read
in full as follows:
Section 113.1 General. In order to hear and decide appeals of the orders, decisions or
determinations made by the Building Official relative to the application and
interpretation of the code, there shall be and is hereby created a Construct.ion Board of
Appeals. The Construction Board of Appeals shall be appointed by the applicable
governing authority and shall hold office at Its pleasure. The board shall adopt rules of
procedure for conducting its business. The Construction Board of Appeals shall be the
Board of Appeals as referenced through the content of this code.
Section 114.4 Violation penalties of the 2012 International Building Code Is hereby
revised to read In full as follows:
Section 114.4 Violation penalties. Any person, firm or corporation violating any of the
provisions of these regulations or who shall fall to comply with any of the requirements
hereof, or who shall build or alter any building in violation of any detailed statement or
plan submitted and approved hereunder, shall be deemed guilty of a misdemeanor and
upon conviction shall be subjected to a fine not to exceed two thousand ($2,000.00)
dollars and each day such violation continues or exist shall constitute a separate offense.
The owner of any .building or premises or part thereof, where anything in violation of these
regulations shall be placed or shall exist. and any architect, builder, contractor or agent,
person or corporation employed In connection therewith and who may have assisted in
the commission of any such violation, shall be guilty of a separate offense and upon
conviction thereof, shall be fined as herein provided.
Section 1612.3 Establishment of flood hazard areas, of the 2012 International Building
Code is hereby revised by inserting name of jurisdiction, (City of Nederland), and date of
Floodplain Map revision, {November 20, 1991).
Section 1804.3 Site grading of the 2012 International Building Code is hereby revised to
read In full as follows:
Section 1804.3 Site grading. For residential and commercial construction, the ground
immediately adjacent to a foundation, shall be sloped away from the building at a slope of
not less than one unit vertical In 20 units horizontal (5 percent slope) for a minimum
distance of ten (10) feet measured perpendicular to the face of the foundation. If a
property line is located at the ten (10) feet minimum distance point, the water shall be
diverted from draining onto adjacent property by creating a swale to direct the drainage to
the City drainage system. If physical obstructions or property lot lines prohibit the full ten
(10) feet of horizontal distance, the 5 percent slope shall be provided and collected Into for
an approved underground drainage piping system. To prevent the storm water from
dumping onto adjoining property, an approved roof gutter system may be needed and to
collect the water into the underground drainage piping system.
Section 3. That if any section, subsection, sentence, clause or phrase of this legislation Is,
for any reason, held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The [GOVERNING BODY] hereby declares that It
would have passed this law, and each section, subsection, clause or phrase thereof,
Irrespective of the fact that any one or more sections, subsections, sentences, clauses and
phrases be declared unconstitutional.
Section 4. That nothing in this legislation or in the Building Code hereby adopted shall be
construed to affect any suit or proceeding impending In any court, or any rights acquired, or
liability incurred, or any cause or causes of action acquired or existing, under any act or
ordinance hereby repealed as cited in Section 1 of this law; nor shall any just or legal right
or remedy of any character be lost, impaired or affected by this legislation.
Section 5. That the City Clerk Is hereby ordered and directed to cause this legislation to be
published. (An additional provision may be required to direct the number of times the
legislation is to be published and to specify that It is to be in a newspaper in general
circulation. Posting may also be required.)
Section 6. That this law and the rules, regulations, provisions, requirements, orders and
matters established and adopted hereby shall take effect and be In full forc-e and effect ten
(10) days from and after the date of its final passage and adoption.
PASSED, APPROVED, AND ADOPTED this 20 ni day of May 2013.
ATTEST:
G'ayFeTll,City Cler
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
SS9S4977.3
Ordinance No. 2013-09
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF
"CITY OF NEDERLAND, TEXAS, GENERAL OBLIGATION
REFl,JNDING BONDS, SERIES 2013";
LEVYING AN AD VALOREM TAX;
APPROVING AN OFFICIAL STATEMENT,
AUTHORIZING THE EXECUTION
OF A BOND PURCHASE AGREEMENT, A TRANSFER AND
PAYING AGENCY AGREEMENT, AND AN ESCROW AGREEMENT;
AUTHORIZING OFFICIALS TO APPROVE THE AMOUNTS,
INTEREST RATES, PRICES AND TERMS THEREOF AND
CERT A1N OTHER MA T'rERS RELATING THERETO;
AND OTHER MATTERS IN CONNECTION THEREWITH.
CITY OF NEDERLAND, TEXAS
Adopted May 20, 2013
TABLE OF CONTENTS
Page
RECITALS ........................................................................................................................ 1
Section 1.1.
Section 1.2.
Section 1.3.
Section 1.4.
Section 1.5.
Section 1.6.
Section 1.7.
Section 1.8.
ARTICLE ONE
THE BONDS
Authorization and Terms; Purpose .................................................................. 2
Redemption ...................................................................................................... 4
Execution, Registration by Comptroller, Delivery, and Dating ...................... 5
Registration, Transfer, and Exchange .............................................................. 6
Mutilated, Destroyed, Lost, and Stolen Bonds ................................................ 7
Persons Deemed Owners ................................................................................. 7
Cancellation ..................................................................................................... 7
Book-Entry Only ............................................................................................. 8
ARTICLE TWO
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 2.1.
Section 2.2.
Section 2.3.
Section 2.4.
Section 2.5.
Section 2.6.
Section 2.7.
Section 2.8.
Section 2.9.
Section 2.10.
Section 3.1.
Section 3.2.
Section 3.3.
Section 3.4.
Section 3.5.
Section 3.6.
Section 3.7.
Section 4.1.
SS9S4977.3
Definitions ....................................................................................................... 9
Notices ........................................................................................................... 13
Effect ofHeadings and Table of Contents; Recitals ...................................... 13
Ordinance a Contract; Amendments .............................................................. 13
Benefits of Ordinance .................................................................................... 14
Repealer ......................................................................................................... 14
Goverrting Law .............................................................................................. 14
Severability .................................................................................................... 14
Public Meeting ............................................................................................... 15
Authority of Officers ..................................................................................... 15
ARTICLE THREE
FORMS
Forms Generally ............................................................................................ 16
Form of Bond ................................................................................................. 17
Form of Registration Certificate of Comptroller of Public Accounts ........... 23
Form of Certificate of Paying Agent ............................................................. 23
Form of Assignment ...................................................................................... 24
Insurance Legend ........................................................................................... 24
Form of Initial Bond ...................................................................................... 24
ARTICLE FOUR
TAXES, REVENUES, AND FUNDS; INVESTMENTS
Debt Service Fund ......................................................................................... 26
-i-
Section 4.2.
Section 4.3.
Section 4.4.
Section 4.5.
Section 5.1.
Section 5.2.
Section 5.3.
Section 6.1.
Section 7.1.
Section 7 .2.
Section 7.3.
Section 8.1.
Section 8.2.
Section 8.3.
Section 8.4.
EXHIBIT A
EXHIBITS
55954977.3
TABLE OF CONTENTS
(continued)
Page
Deposits to Debt Service Fund; Excess Bond Proceeds ................................ 26
TaxLevy ........................................................................................................ 26
Investments and Security For Funds .............................................................. 27
Escrow Agreement; Funding ofDefeasance; Redemption of Refunded
Obligations ..................................................................................................... 27
ARTICLE FIVE
COVENANTS
To Maintain Agency ...................................................................................... 30
Covenants to Maintain Tax-Exempt Status ................................................... 30
Remedies in Event of Default ........................................................................ 34
ARTICLE SIX
DEFEASANCE
Discharge of Obligations ............................................................................... 35
ARTICLE SEVEN
SALE
Sale of the Bonds; Bond Purchase Agreement... ........................................... 3 7
Payment of Costs of Issuance; Engagement of Bond Counsel... ................... 37
Official Statement .......................................................................................... 38
ARTICLE EIGHT
CONTINUING DISCLOSURE UNDERTAKING
Annual Reports .............................................................................................. 39
Material Event Notices .................................................................................. 39
Limitations, Disclaimers, and Amendments .................................................. 40
Definitions ............................................................................ : ........................ 41
Financial Information
Officer's Pricing Certificate
-ii-
AN ORDINANCE AUTHORJZING THE ISSUANCE OF "CITY OF NEDERLAND,
TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2013; LEVYING
AN AD VALOREM TAX; APPROVING AN OFFICIAL STATEMENT,
AlITHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT, A
TRANSFER AND PA YING AGENCY AGREEMENT, AND AN ESCROW
AGREEMENT; AUTHORIZING OFFICIALS TO APPROVE THE AMOUNTS,
INTEREST RATES, PRICES AND TERMS THEREOF AND CERTAIN OTHER
MATTERS RELATING THERETO AND OTHER MATTERS IN CONNECTION
THEREWITII.
RECITALS
1. The City ofNederland, Texas (the "Issuer "), a home-rule city, has duly issued the
stated maturities of the obligations (the "Refunded Obligations") described in this Ordinance.
2. The City Council of the Issuer (the "Governing Body") has determined that
refunding bonds should be issued in an amount sufficient to discharge and make final payment of
the principal of and interest on all of the Refunded Obligations at their respective maturities in
order to achieve a present value debt service savings and a gross debt service savings, to be
established in the Officer's Pricing Certificate described here.
3. The Issuer is empowered by Texas Government Code chapter 1207, as amended,
and the Charter of the Issuer to issue the refunding bonds hereinafter authorized for such
purposes.
4. The Governing Body is of the opinion and hereby affirmatively finds that it is in
the best interest of the City to issue the Bonds in the amounts and for the purpose herein stated.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS:
55954971.3 -1-
SECTION 1.1.
ARTICLE ONE
THE BONDS
Authorization and Terms; Purpose.
A. Authorization, Designation, Principal Amount, Purpose. General Obligation
Refunding Bonds of the Issuer shall be and are hereby authorized to be issued in the aggregate
principal amount not to exceed of .J4,000,000 to be designated and bear the title "CITY OF
NEDERLAND, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2013",
for the purpose of providing funds to refund the Refunded Obligations, and to pay costs incurred
in connection with the issuance of the Bonds, pursuant to and in conformity with the Constitution
and laws of the State of Texas, including particularly, but not by way of limitation. Texas
Government Code chapter 1207, as amended. The Mayor of the Issuer (and in the absence of the
Mayor, the Mayor Pro Tern of the Issuer) is hereby authorized to act on behalf of the Issuer in
selling and delivering the Bonds and carrying out the other procedures specified in this
Ordinance, including any additional designation or title by which the Bonds shall be known, the
price at which the Bonds will be sold, the date or dates on which the Bonds shall be sold, the
form in which the Bonds shall be issued, whether as current interest bonds, as compound interest
bonds, or as a combination of current interest bonds and compound interest bonds, the day and
years in which the Bonds will mature, the principal amount to mature in each of such years, the
aggregate principal amount of the Bonds, the rate of interest to be borne by each such maturity,
the first interest payment date or compounding date, as the case may be, the dates, prices, and
terms, if any, upon and at which the Bonds shall be subject to redemption prior to maturity at the
option of the Issuer, as well as any mandatory sinking' fund redemption provisions, and all other
matters relating to the issuance, sale and delivery of the Bonds, including the refunding of the
Refunded Obligations, all of which shall be specified in the Officer's Pricing Certificate for the
Bonds, provided that:
(i) the price to be paid for the Bonds shall hot be Jess than 90% of the aggregate
original principal amount of the Bonds plus accrued interest, if any, thereon from their
date to their delivery,
(ii) none of the Bonds shall bear interest at an interest rate which results in an initial
yield greater than 15% per annum or in excess of the maximum rate allowed by
Chapter 1204, Texas Government Code, whichever is less, and
(iii) the aggregate principal amount of the Bonds shall equal an amount sufficient to
provide for the refunding of the maximum principal amount of the Refunded Obligations,
but in any event may not exceed $4,000,000, and (iv) refunding of the refunded
obligations will result in a minimum dollar reduction in aggregate debt service costs to
the Issuer on a present value basis, equal to or not less than 3% of the principal amount of
the Refunded Obligations based on bond market conditions and available interest rates
for the Bonds on the date of the sale of the Bonds, all as set forth in the Officer's Pricing
Certificate.
33934977.3 -2-
If the condition set forth above cannot be met, the Bonds may not be issued.
B. Denominations, Stated Maturities, Interest Rates. The Bonds shall be issued in
fully registered fonn only, and shall have a dated date of July 1, 2013 (unless otherwise provided
in the Officer's Pricing Certificate as a later date) (the "Dated Date"). The Bonds are in ·
denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof; and are due
and payable on the day and in each of the years (but not later than 2023) designated in the
Officer's Pricing Certificate (the "Stated Maturities"). The Bonds shall be in the principal
amounts and bear interest at per annum rates as set forth in the Officer's Pricing Certificate,
computed on the basis of a 360-day year of twelve 30-day months on the unpaid principal
amounts from the Dated Date or from the most recent Interest Payment Date which interest has
been paid or duly provided for, to the earlier of redemption or Stated Maturity.
C. Terms of Payment. The principal of and the interest on the Bonds, due and
payable by reason of maturity or otherwise, shall be payable only to the Registered Owners
appearing on the Security Register maintained by the Paying Agent, and the payment thereof
shall be in any coin or currency of the United States of America, which at the time of payment is
legal tender for the payment of public and private debts and shall be without exchange or
collection charges to the Registered Owners.
Principal of the Bonds shall be payable at the Stated Maturities only up<>n presentation
and surrender of the Bonds to the Paying Agent at the Place of Payment. Interest on the Bonds
shall be paid to the Registered Owners whose name appears in the Security Register at the close
of business on the Record Date and shall be paid by the Paying Agent (i) by check sent United
States Mail, first class postage prepaid, to the address of the Registered Owner recorded in the
Security Register or (ii) by such other method, acceptable to the Paying Agent, requested by, and
at the risk and expense of, the Registered Owner.
If the date for the payment of the principal of or interest on the Bonds shall be a Saturday,
Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying
Agent is located are authorized by Law or executive order to close, then the date for such
payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or
day on which banking institutions are authorized to close, and payment on such date shall have
the same force and effect as if made on the original date payment was due.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent, if and when funds for the payment of such interest have been
received from the Issuer. Notice of the Special Record Date and of the scheduled payment date
of the past due interest ("Special Payment Date"), which shall be 15 days after the Special
Records Date) shall be sent at least five business days prior to the Special Record Date by United
States mail, first class postage prepaid, to the address of each Registered Owner of a Bond
appearing on the registration books of the Paying Agent at the close of business on the last
business day next preceding the date of mailing of such notice.
SS914977.3 -3-
SECTION 1.2. Redemption.
A. Optional and Mandatory Redemption. The Bonds are not subject to redemption
at the option of the Issuer prior to Stated Maturity. The Bonds may be subject to mandatory
redemption on the Redemption Dates and Redemption Prices as set forth in the Officer's Pricing
Certificate.
B. Notice of Redemption. The Paying Agent shall mail notice of redemption in the
name and at the expense of the Issuer not less than 30 days prior to the Redemption Date to each
Registered Owner of Bonds to be redeemed, stating:
(1) the Redemption Date,
(2) the Redemption Price,
(3) the principal amount, the identification (by title, CUSIP number, Stated
Maturity, interest rate, and Dated Date) and, in the case of partial redemption, the
respective principal amounts and Bond numbers of the Bonds to be redeemed,
(4) that on the Redemption Date the Redemption Price of each of the Bonds to
be redeemed will become due and payable and that interest thereon ceases to accrue from
and after said date, and
(5) that the Bonds to be redeemed are to be surrendered for payment of the
Redemption Price at the Place of Payment, an(! the address of such Place of Payment
Neither the failure to give any notice to any Registered Owner nor any defect therein will affect
the sufficiency of notice given to Registered Owners as hereinabove stated. Any notice so
mailed shall be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. Notice having been so given, the Bonds called for redemption shall
become due and payable on the specified Redemption Date, and notwithstanding that any Bond
or portion thereof has not been surrendered for payment, interest on such Bond or portion thereof
shall cease to accrue.
C. Payment of the Redemption Price. Upon the surrender of such Bonds for
redemption in accordance with such notice, the Paying Agent shall pay such Bonds at the
Redemption Price out of money supplied by the Issuer.
If any Bond called for redemption is not so paid upon surrender thereof for redemption,
the same continues to bear interest from the Redemption Date at the rate borne by such Bond.
D. Partial Redemption. Any Bond which is to be redeemed only in part must be
surrendered at the Place of Payment (with, if the Issuer or the Paying Agent so requires, due
endorsement by, or written instrument of transfer in form satisfactory to the Issuer and the
Paying Agent duly executed by, the Holder thereof or his attorney duly authorized in writing),
and the Issuer shall execute and the Paying Agent shall register and deliver to the Holder of such
Bond, without service charge, a new Bond or Bonds of the same Stated Maturity and of any
55954911.3 -4-
authorized denomination or denominations as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of the Bond so
surrendered.
SECTION l.3. Execution, Registration by Comptroller, Delivery, and Dating.
The Mayor of the Issuer shall execute the Bonds on behalf of the Issuer and such
signature shall be attested by the Clerk of the Issuer. The signature of either of said officers on
the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of
individuals who were at the time the proper officers of the Issuer bind the Issuer, notwithstanding
that such individuals or either of them cease to hold such offices prior to the certification and
delivery of such Bonds. The seal of the Issuer may be reproduced, affixed, or impressed thereon
but is not required except as other-wise required under Texas law.
The Mayor of the Issuer is authorized and directed to execute and the Clerk of the Issuer
to attest the initial Bond in the name of Cede & Co. The Mayor of the Issuer is further
authorized and directed to submit such initial Bond, together with the record of the proceedings
authorizing the issuance thereof and any and all other necessary orders, certificates, and records,
to the Attorney General of Texas for approval. After the Attorney General has approved such
Bonds, the Mayor of the Issuer shall cause such Bonds to be delivered to the Comptroller of
Public Accounts of the State of Texas for registration. If requested by the Attorney General or
its representatives, or if otherwise deemed necessary to properly evidence the intent of the Issuer
in the adoption of this Ordinance, the Mayor or Mayor Pro Tern of the Issuer may make such
ministerial changes in the written text of this Ordinance as such officer determines are consistent
with the intent and purposes of this Ordinance, which determination shall be final. Upon
registration of the Bonds, the Comptroller is authorized and directed to deliver the Bonds in
accordance with insnuctions of the Mayor of the Issuer. At any time thereafter the Issuer may
deliver such Bonds to the Paying Agent together with definitive Bonds to be issued in exchange
therefor, and the Paying Agent is directed, within not more than five business days following
receipt of instructions from the payee named therein designating the Persons, Stated Maturities,
and denominations to and in which such Bonds are to be transferred, register and deliver such
definitive Bonds as provided in such insnuctions. The officers or acting officers of the
Governing Body are authorized to execute and deliver on behalf of the Governing Body such
certificates and instruments as may be necessary to accomplish or in furtherance of the delivery
of the Bonds to and payment therefor by the Purchasers.
All Bonds registered and delivered by the Paying Agent hereunder are to be dated by the
Paying Agent the date of their registration. ·
No Bond is entitled to any right or benefit under this Ordinance, or is valid or obligatory
for any purpose, unless there appears on such Bond either a certificate of registration
substantially in the form provided in Section 3.3, executed by the Comptroller of Public
Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate
of registration substantially in the form provided in Section 3 . .t, executed by the Paying Agent
by manual signature, and either such certificate upon any Bond is conclusive evidence, and the
only evidence, that such Bond has been duly certified or registered and delivered.
SS9S4977.3 -5-
SECTION 1.4. Registration, Transfer, and Exchange.
The Issuer shall cause to be kept at the Place of Payment a register (herein referred to as
the "Security Register") in which, subject to such reasonable regulations as the Issuer or the
Paying Agent may prescribe, the Paying Agent shall provide for the registration of the Bonds and
of transfers of the Bonds as herein provided.
Upon surrender or transfer of any Bond at the Place of Payment, the Issuer shall execute,
and the Paying Agent shall register and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of the same Stated Maturity, of any authorized
denominations, and of a like aggregate principal amount. New Bonds registered, and delivered
in an exchange or transfer will be delivered by the Paying Agent at the Place of Payment or sent
by United Stated mail at the Holder's written request, risk, and expense.
At the option of the Holder, Bonds may be exchanged for other Bonds of the same Stated
Maturity, of any authorized denominations, and of like aggregate principal amount, upon
surrender of the bonds to be exchanged at the Place of Payment. Whenever any Bonds are so
surrendered for exchange, the Issuer shall execute, and the Paying Agent shall register and
deliver, the Bonds which the Holder of Bonds making the exchange is entitled to receive.
Every Bond presented or surrendered for transfer or exchange must be duly endorsed, or
be accompanied by a written instrument of transfer in form satisfactory to the Paying Agent duly
executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge may be mad.e to the Holder for any registration, transfer, or exchange
of Bonds, but the Issuer or the Paying Agent may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any transfer or
exchange of Bonds.
Neither the.Issuer nor the Paying Agent is required (1) to transfer or exchange any Bond
during a period beginning 45 days prior to a Redemption Date hereunder and ending at the close
of business on the day of mailing of a notice of redemption or (2) thereafter to transfer or
exchange in whole or in part any Bond so selected for redemption.
55954911.3 -6-
SECTION 1.5. Mutilated, Destroyed, Lost, and Stolen Bonds.
If(l) any mutilated Bond is surrendered to the Paying Agent, or the Issuer and the Paying
Agent receive evidence to their satisfaction of the destruction, loss, or theft of any Bond, and
(2) there is delivered to the Issuer and the Paying Agent such security or indemnity as they
require to save each of them harmless, then, in the absence of notice to the Issuer or the Paying
Agent that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and
upon its request the Paying Agent shall register and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated Maturity, and of
like tenor and principal amount, bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the Issuer in its discretion may pay such Bond instead of issuing a new
Bond.
Upon the issuance of any new Bond under this Section, the Issuer or the Paying Agent
may require the payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost,
or stolen Bond constitutes an original additional contractual obligation of the Issuer, whether or
not the mutilated, destroyed, lost, or stolen Bond is at any time enforceable by anyone, and the
new Bond is entitled to all the benefits of this Ordinance equally and ratably with all other
Outstanding Bonds.
The provisions of this Section are exclusive and preclude (to the extent lawful) all other
rights and remedies with respect to the replacement and pa'Yment of mutilated, destroyed, lost, or
stolen Bonds.
SECTION 1.6. Persons Deemed Owners.
The Issuer and the Paying Agent, and any agent of either, may treat the Registered Owner
as the owner of a Bond for purposes of receiving payment of principal and Redemption Price of
and (subject to Section 1.3) interest on the Bond and for all other purposes whatsoever, whether
or not the Bond is due or overdue, and neither the Issuer nor the Paying Agent, or any agent of
either, is affected by notice to the contrary.
SECTION 1.7. Cancellation.
All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if
surrendered to the Paying Agent, are to be promptly canceled by it and, if surrendered to the
Issuer, are to be delivered to the Paying Agent and, if not already canceled, are to promptly be
canceled by the Paying Agent. The Issuer may at any time deliver to the Paying Agent for
cancellation any Bonds previously certified and delivered which the Issuer acquires in any
manner whatsoever, and all Bonds so delivered are to be promptly canceled by the Paying Agent.
No Bond may be certified in lieu of or in exchange for any Bond canceled as provided in this
Section, except as expressly provided by this Ordinance. All canceled Bonds held by the Paying
ss9149n.3 -7-
Agent are to be disposed of in accordance with the standard document retention policies of the
Issuer.
SECTION 1.8. Book-Entry Only
Notwithstanding the provisions contained in Sections J.3, 1.4, 1.5, or 1.6 relating to the
payment. redemption and transfer/exchange of the Bonds, the Issuer hereby approves and
authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system
provided by The Depository Trust Company ("DTC"), a limited purpose trust company
organized under the laws of the State of New York, in accordance with DTC's requirements and
procedures, and authorizes the Issuer and the Paying Agent to take such as actions as are
necessary to qualify the Bonds with DTC and to deliver the Bonds through DTC.
Pursuant to the rules and procedures of DTC now in effect, the Bonds shall be deposited
with OTC (or with the Paying Agent on behalf of DTC) who shall hold said Bonds for its
participants (the "DTC Participants"). While the Bonds are so held, the Registered Owner of
the Bonds on the Security Register for all purposes, including payment and notices, shalJ be
Cede & Co., as nominee of OTC, notwithstanding the ownership of each actual purchaser or
owner of each Bond (the "Beneficial Owners") being recorded in the records of OTC and OTC
Participants.
In the event OTC determines to discontinue serving as securities depository for the Bonds
or otherwise ceases to provide book-entry clearance and settlement of securities transactions in
general or the Issuer determines that DTC is incapable of properly discharging its duties as
securities depository for the Bonds, the Issuer covenants and agrees with the Registered Owners
of the Bonds to cause Bonds to be printed in definitive form and provide for the certificated
certificates to be issued and delivered to OTC Participants and Beneficial Owners, as the case
may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on
the Security Register maintained by the Paying Agent and payment of such Bonds shall be made
. in accordance with the provisions of Sections J.2, 1.3, 1.4, or 1.5.
[The remainder of this page intentionally left blanlc.]
SS954977.3 -8-
SECTION 2.1.
ARTICLE TWO
DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION
Definitions
For all purposes of this Ordinance, except as otherwise expressly provided or unless the
context otheiwise requires:
(I) The terms defined in this Section have the meanings assigned to them in
this Section.
(2) All terms defined herein include the plural as well as the singular.
(3) All references in this Ordinance to designated "Articles", "Sections",
"Exhibits", and other subdivisions are to the designated Articles, Sections, Exhibits, and
other subdivisions of this Ordinance as originally adopted.
(4) The words "herein", "hereof', and "hereunder" and other words of
similar import refer to this Ordinance as a whole and not to any particular Article,
Section, Exhibit, or other subdivision.
"Bonds" means any obligation of the Issuer authorized to be issued by Article One,
whether initially delivered or issued in exchange for or upon transfer or in lieu of any
Predecessor Bond.
"Code" means the Internal Revenue Code of 1986, as amended by any amendments
thereto enacted prior to the Issue Date.
"Computation Date " has the meaning stated in section 1.148-l(b) of the Regulations.
"Collection Date" means, for any year, the date that annual ad valorem taices levied by
the Issuer in that year.
"Dated Date" has the meaning stated in Section J.J(b).
"Debt Service Fund" means thl'. special fund of the Issuer created and established by the
provisions of Section if.I.
"Debt Service Requirements" means (i) the interest on the Bonds and (ii) a sinking fund
for payment of principal of the Bonds at Stated Maturity or earlier redemption or a sinking fund
of2% (whichever amount is greater).
"DTC" means The Depository Trust Company, New York, New York, New York, or any
successor securities depository.
SS9S<4917.3 -9-
"DTC Participant" means brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations on whose behalf DTC was created to hold securities
to facilitate the clearance and settlement of securities transactions among DTC Participants
through electronic book-entry changes in the accounts of the DTC Participants, thereby
eliminating the need for physical movement of definitive certificates.
"Escrow Agent" means BOKF, NA dba Bank of Texas, or any successor thereto under
the Escrow Agreement.
"Escrow Agreement" means the Escrow Agreement dated as of the Dated Date among
the Issuer and the Escrow Agent.
"Fiscal Year" means the annual financial accounting period for the Issuer as established
by the Issuer on or prior to the date of this Ordinance; provided, however, the Governing Body
may change such annual financial accounting period to end on another date if such change if
found and determined to be necessary for accounting purposes or is required by applicable Jaw.
"Governing Body" means the City Council of the Issuer.
"Governmental Obligations" means
(I) direct noncallable obligations of the United States, including obligations
that are unconditionally guaranteed by the United States;
(2) noncallable obligations of an agency or instrumentality of the United
States, including obligations that are unconditionally guaranteed or insured by the agency
or instrumentality and that, on the date the governing body of the issuer adopts or
approves the proceedings authorizing the issuance of refunding bonds, are rated as to
investment quality by a nationally recognized investment rating firm not less than AAA
or its equivalent; and
(3) noncallable obligations of a state or an agency or a county, municipality,
or other political subdivision of a state that have been refunded and that, on the date the
governing body of the issuer adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized
investment rating firm not less than AAA or its equivalent. .
"Gross Proceeds" means any proceeds as defined in section 1.148-l(b) of th~
Regulations, and any replacement proceeds as defined in section 1.148-l(c) of the Regulations,
of the Bonds.
"Interest Payment Date" means a date specified in the Bonds as a fixed date on which an
installment of interest thereon is due and payable.
"lrrvestment " has the meaning stated in section l.148-l(b) of the Regulations.
-10-
"Issue Date" means the date on which Bonds are first registered and delivered to the
Purchasers in exchange for the purchase price therefor.
"Issuer" has the meaning stated in the Recitals.
"Maturity" when used with respect to any Bond means the date on which the principal of
such Bond becomes due and payable as therein provided, whether at the Stated Maturity, by call
for redemption. or otherwise.
"Nonpurpose Jrrvestment" means any investment property, as defined in section 148(b) of
the Code, in which Gross Proceeds of the Bond~ are in"'.ested and which is not acquired to carry
out the governmental purposes of the Bonds.
"Officer's Pricing Certificate" shall mean a certificate or certificates to be signed by the
Mayor of the Issuer (or in the Mayor's absence, the Mayor Pro Tern) pursuant to Section 1
hereof, in substantially the fonn attached hereto as Exhibit B.
"Ordinance" means this Ordinance as finally passed and adopted by the Governing Body
or as it may from time to time be supplemented, modified, or amended in accordance with the
provisions hereof.
"Outstanding" when used with respect to Bonds means, as of the date of determination,
all Bonds theretofore issued and delivered under this Ordinance, except, without duplication:
(1) Canceled Bonds: Bonds theretofore canceled by the Paying Agent or
delivered to the Paying Agent for cancellation;
(2) Gross Cash Defeasance: Bonds for whose payment or redemption money
in the necessary amount has been theretofore deposited with the Paying Agent in trust for
the Registered Owner of such Bonds, provided that, if such Bonds are to be redeemed,
notice of such redemption has been duly given pursuant to this Ordinance, irrevocably
provided for to the satisfaction of the Paying Agent, or waived;
(3) Replaced Bonds: Bonds in exchange for or in lieu of which other Bonds
have been registered and delivered pursuant to this Ordinance;
(4) Paid Missing Bonds: Bonds alleged to have been destroyed, lost, or stolen
which have been paid as provided in Section I. 7; and
(5) Net Cash Defeasance : Bonds for the payment of the principal (or
Redemption Price) of and interest on which money or Governmental Obligations or both
are held by the Paying Agent or other bank or trust company and with the effect specified
in Section 6.1;
provided, however, that in determining whether the Registered Owners of the requisite principal
amount of Bonds Outstanding have given any request, demand, authorization, direction, notice,
consent, or waiver hereunder, Bonds owned by the Issuer or any other obligor upon the Bonds
-11-
are disregarded and deemed not Outstanding, except that, in determining whether the Paying
Agent is protected in relying upon any such request, demand, authorization, direction, notice,
consent, or waiver, only Bonds which the Paying Agent knows to be so owned are required to be
so disregarded.
"Paying Agent" means the corporation named as the "Paying Agent" herein until a
successor Paying Agent becomes such pursuant to the applicable provisions of this Ordinance,
and thereafter "Paying Agent" means such successor Paying Agent.
"Person" means any individual, corporation, partnership, joint venture, association, joint-
stock company, trust, unincorporated organization, or government or any agency or political
subdivision thereof.
"Place of Payment" initially means a corporate trust office of the Paying Agent in the
City of Austin, Texas, established, and thereafter means the city so designated from time to time
by the Issuer as the "Place of Payment" with notice to the Registered Owners.
"Predecessor Bonds" of any particular Bond means every previous Bond evidencing all
or a portion of the same debt as that evidenced by such particular Bond, and, for purposes of this
definition, any Bond registered and delivered under Section 1. 7 in lieu of a mutilated, lost,
destroyed, or stolen Bond is deemed to evidence the same debt as the mutilated, lost, destroyed,
or stolen Bond.
"Purchaser" means the initial purchaser or purchasers of the Bonds named in
Section 7.1.
"Rebate Amount" has the meaning set forth in Section l .148-1 (b) of the Regulations.
"Record Date" for the interest payable on any Interest Payment Date means the close of
business on the 151h day of the month next preceding such Interest Payment Date.
"Redemption Date" means the date fixed for redemption of a Bond pursuant to the terms
of this Ordinance.
"Redemption Price" means the price specified in the Form of Bond in Section 3.2 as the
price at which a Bond may be redeemed pursuant to the terms oftbe Ordinance.
"Refunded Obligations" means the Issuer's General Obligation ~onds, Series 2008
(except as any such series, maturities within a series, or bonds within a maturity may be omitted
in the Officer's Pricing Certificate).
"Registered Owner" mean the registered owner, whose name appears in the Security
Register, for any Bond.
".Regulations;, means any temporary or final Income Tax Regulations issued pursuant to
sections l 03 and 14 l through 150 of the Code, and 103 of the Internal Revenue Code of 1954,
which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as
SS9S4977.3 -12-
appropriate, any temporary or final Income Tax Regulation designed to supplement, amend or
replace the specific Regulation referenced.
"Security Register" has the meaning stated in Section 1.4.
"Stated Maturity" when used with respect to any Bond means the date specified in such
Bond as the fixed date on which the principal of such Bond is due and payable.
"Yield" of
(1) any Investment has the meaning set forth in section 1.148-5 of the
Regulations; and
(2) the Bonds has the meaning set forth in section 1.148-4 of the Regulations.
SECTION 2.2. Notices.
Where this Ordinance provides for notice to Registered Owners of any event, such notice
is sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-
class postage prepaid, to each Registered Owner, at the address of such Registered Owner as it
appears in the Security Register close of business on the date next preceding the date of mailing
such notice. Neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Registered Owner affects the sufficiency of such notice with respect to all other
Registered Owners. Where this Ordinance provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either before or after the event
with respect to which such notice is given, and such waiver is the equivalent of such notice.
Waivers of notice by Registered Owners are to be filed with the Issuer, but such filing is not a
condition precedent to the validity of any action taken in reliance upon such waiver.
SECTION 2.3. Effect of Headings and Table of Contents; Recitals.
The section headings herein and in the Table of Contents are for convenience only and do
not affect the construction hereof
The Recitals contained in the preamble hereof are hereby found to be true, and such
Recitals are hereby made a part hereof for all purposes and are adopted as part of the judgment
and findings of the Governing Body.
SECTION 2.4. Ordinance a Contract; Amendments.
This Ordinance constitutes a contract with the Registered Owners entered into upon the
initial purchase of the Bonds, is binding on the Issuer and its successors and assigns whether or
not so expressed, and may not be amended or repealed by the Issuer so long as any Bond remains
Outstanding except as permitted in this Section.
The Issuer may, without the consent of or notice to any Registered Owner, from time to
time and at any time amend this Ordinance in any manner not detrimental to the interests of the
SS9S4917.3 -13-
Registered Owners, including the curing of any ambiguity, inconsistency, or fonna! defect or
omission herein or therein. In addition, the Issuer may, with the written consent of the Registered
Owners of a majority in aggregate principal amount of the Bonds then Outstanding affected
thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without
the consent of the Registered Owners of all of the 8.ffected Outstanding Bonds, no such
amendment, addition, or rescission may (1) change the Stated Maturity of the Bonds or any
Interest Payment Date for an installment of interest thereon, reduce the principal amount thereof,
the Redemption Price therefor, or the rate of interest thereon, change the place or places at, or the
coin or currency in, wruch any Bond or the interest thereon is payable, or in any other way
modify the terms or sources of payment of the principal of or interest on the Bonds, (2) give any
preference to any Bond over any other Bond, (3) modify any of the provisions of the proviso to
the definition of the term "Outstanding", or (4) modify any of the provisions of this Section,
except to increase the percentage provided hereby or to provide that certain other provisions of
this Ordinance cannot be modified or waived without the consent of the Registered Owner of
each Bond affected thereby.
Any consent to any amendment hereof by the Registered Owner of any Bond binds every
future Registered Owner of the same Bond and the Registered Owner of every Bond issued upon
transfer or in lieu thereof or in exchange therefor, in respect of anything done or suffered to be
done by the Issuer in reliance thereon, whether or not notation of such action is made upon such
Bond.
SECTION 2.5. Benefits of Ordinance.
Nothing in this Ordinance, expressed or implied, is intended or may be construed to
confer upon any Person (other than the Issuer and Reg!stered Owners) any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this
Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit
of the Issuer and the Registered Owners.
SECTION 2.6. Repealer.
All orders, ordinances, and resolutions, or parts thereof, wruch are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed and declared to be
inapplicable to the extent of such conflict, and the provisions of this Ordinance are controlling as
to the matters prescribed herein.
SECTION 2.7. Governing Law.
This Ordinance is to be construed in accordance with and governed by the laws of the
State of Texas and the United States of America.
SECTION 2.8. Severability.
If any provision of this Ordinance or the application thereof to any Person or
circumstance is held to be invalid, illegal, or unenforceable, the remainder oftbis Ordinance and
the application of such provision to other Persons and circumstances is nevertheless valid, legal,
55954977.3 -14-
and enforceable and the Governing Body hereby declares that this Ordinance would have been
enacted without such invalid provision or application.
SECTION 2.9. Public Meeting.
The Governing Body officially finds, determines, and declares that notice of the adoption
of this Ordinance was posted as required by law at a location within the Issuer in a place readily
accessible to the general public at all times for at least 72 hours preceding the scheduled time of
the meetings at which this Ordinance is read and approved; that such meetings were open to the
public; and that public notice of the time, place, and purpose of such meetings was given as
required by Texas Government Code chapter 551, as amended.
SECTION 2.10. Authority of Officers.
The Mayor, the Mayor Pro Tern, the Clerk or any assistant clerk, Manager, Attorney, or
Director of Finance of the Issuer, or any of them, are authorized to evidence adoption of this
Ordinance and to do any and all things proper and necessary to carry out the intent hereof.
55954977.3 -15-
SECTION 3.1.
ARTICLE THREE
FORMS
Forms Generally.
The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the
State of Texas to be reproduced on the initial Bonds, the Registration Certificate of the Paying
Agent to be reproduced on subsequently delivered Bonds, and the form of Assignment to be
reproduced on each of the Bonds are to be substantially in the forms set forth in this Section with
such appropriate insertions, omissions, substitutions, and other variations as are pemtitted or
required by this Ordinance, and the Bonds may have such letters, numbers, or other marks of
identification (including identifying numbers and letters of the Committee on Uniform Securities
Identification Procedures of the American Bankers Association) and such legends and
endorsements (including any reproduction of an opinion of counsel or notice of insurance)
thereon as may, consistently herewith, be detennined by the officers executing such Bonds as
evidenced by their execution thereof'. Any portion of the text of any Bonds may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the Bond.
The Bonds may be printed, lithographed, engraved, typewritten, photocopied, or
produced by any combination of these methods, or produced in any other manner, all as
determined by the officers executing such Bonds as evidenced by their execution thereof. The
initial Bonds submitted to the Attorney General of Texas are to be numbered consecutively T-1
and upward.
[The remainder of this page intentionally left blank]
559'4911.3 -16-
SECTION 3.2. Form of Bond.
Unless this bond is presented by an authorized representative of The Depository Trust Company,
a New York corporation ("DTC''), to the Issuer or its agent for registration of transfer, exchange,
or payment, and any bond issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made to Cede & Co.
or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof: Cede & Co., has
an interest herein.
REGISTERED
NO ................. .
Dated Date:
United States of America
State of Texas
CITY OF NEDERLAND, TEXAS,
GENERAL OBLIGATION REFUNDING BOND,
SERIES 2013
Interest Rate: Stated Maturity:
REGISTERED
$ ....................... .
[CUSIPNO.:
..................... ]•
REGISTERED OWNER: ................................................................................................................. .
PRINCIPAL AMOUNT: ................................................................................................ DOLLARS
The City of Nederland, Texas (hereinafter referred to as the "Issuer"), a body corporate
and political subdivision of the State of Texas, for value received, acknowledges itself indebted
to and hereby promises to pay to the order of the Registered Owner named above, or the
registered assigns thereof, on the Stated Maturity date specified above the Principal Amount
hereinabove stated, and to pay interest on the unpaid principal amount hereof from the Dated
Date specified above at the per annum Interest Rate specified above, computed on the basis of a
360-day year of twelve 30-day months; such interest being payable on March I and September I
in each year, commencing September I, 2013 (the "Interest Payment Dates"), and, except as
otherwise permitted by the Ordinance hereinafter referred to, to make the payments to the United
States of America in the amounts and on the dates therein described when due. Principal of this
Bond is payable at its Stated Maturity to the Registered Owner hereof, upon presentation and
surrender, at the principal payment office of the Paying Agent executing the Registration
Certificate of Paying Agent appearing hereon, which shall initially be BOKF, NA, dba Bank of
Texas, Austin, Texas, or its successor.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such interest payment (a "Special Record Date") will be
SS9S4971.3 -1 7-
established by the Paying Agent, if and when funds for the payment of such interest have been
received from the Issuer. Notice of the Special Record Date and of the scheduled payment date
of the past due interest ("Special Payment Date"), which shall be 15 days after the Special
Records Date) shall be sent at least five business days prior to the Special Record Date by United
States mail, first· class postage prepaid, to the address of each Registered Owner of a Bond
appearing on the registration books of the Paying Agent at the close of business on the last
business day next preceding the date of mailing of such notice.
If the specified date for the payment of the principal of or interest on this Bonds shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Paying Agent is located are authorized by law or executive order to close, then the date for such
payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or
day on which banking institutions are authorized to close, and payment on such date shall have
the same force and effect as if made on the original date payment was due.
This Bond is one of the series specified in its title issued in the aggregate principal
amount of$( ] (the "Bonds") for the purpose of providing funds to refund certain of
the Issuer's outstanding obligations and to pay costs incurred in connection with the issuance of
the Bonds, under and in conformity with the Constitution and laws of the State of Texas,
including particularly, but not by way of limitation, Texas Government Code chapter 1207, as
amended, and pursuant to an Ordinance adopted by the Governmg Body of the Issuer (herein
referred to as the "Ordinance").
The Issuer shall not have the option of redeeming the Bonds prior to maturity.
[Bonds maturing on Mandatory Redemption Dates are subject to mandatory redemption
prior to maturity in the principal amounts and on the redemption dates set out below, at a price
equal to such principal amounts plus accrued interest from the most recent interest payment date
to such redemption dates:
55954977.3
Bonds maturing [Stated Maturity]
Redemption Date
![Maturity Datefl
(Stated Maturity)
Principal
Amount
$
Bonds maturing [Stated Maturity]
Redemption Date
![Maturity Datefl
Principal
Amount
-18-
..
•
-~
-
•
I I (Slated Maturity)
B-Onds maturing
Redemption Date
([Maturity Datef1
(Stated Maturity)
B-Onds maturing
Redemption Date
([Maturity Datef1
(Stated Maturity)
Bonds maturing
Redemption Date
([Maturity Datef1
(Stated Maturity)
[Stated Maturity)
Principal
Amount
$
[Stated Maturity]
Principal
Amount
$
[Stated Maturity]
Principal
Amount
$
Such Bonds to be redeemed shall be selected by lot from and among the Bonds of such maturity
ption, may credit against any mandatory sinking
turity then subject to redemption which have been
en redeemed and theretofore applied as a credit
equirement.]
then subject to redemption. The Issuer, at its o
fund redemption requirement Bonds of the ma
purchased and canceled by the Issuer or have be
against any mandatory sinking fund redemption r
The Bonds may be redeemed in part o nly in integral multiples of $5,000. If a Bond
er than $5,000, a portion of such Bond may be
$5,000. Io selecting portions of Bonds for
subject to redemption is in a denomination larg
redeemed but only in integral multiples of
redemption, each Bond shall be treated as representing that number of Bonds of $5,000
principal amount of such Bond by $5,000. Upon denomination which is obtained by dividing the
SS9S4977.3 -l 9-
surrender of any Bond for redemption in part, the Paying Agent, in accordance with the
provisions of the Ordinance, shall authenticate and deliver in exchange therefor a Sood or Bonds
of like maturity and interest rate in an aggregate principal amount equal to the unredeemed
portion of the Bond so surrendered.
Notice of any such redemption shall be sent by first-class mail to the Registered Owners
thereof at their addresses as shown on the books of registration kept by the Paying Agent not less
than 30 days before the date fixed for such redemption. By the date fixed for redemption, due
provision shall be made with the Paying Agent for the payment of the redemption price of the
Bonds called for redemption. If such notice of redemption is given, and if due provision for such
payment is made, all as provided above, the Bonds which are to be so redeemed thereby
automatically shall be deemed prior to their scheduled maturities, they shall not bear interest
after the date fixed for redemption, and they shall not be regarded as being outstanding for
purposes of the Ordinance except for the purpose of being paid by the Paying Agent with the
funds so provided for such payment.
The Bonds are equally and ratably payable from the proceeds of an ad valorem tax levied,
within the limitations prescribed by law, upon all taxable property in the Issuer.
Reference is hereby made to the Ordinance, a copy of which is on file with the Paying
Agent, and to all of the provisions thereof which the Registered Owner of this Bond by the
acceptance hereof hereby assents, for definitions of terms; the description of and the nature and
extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or
supplemented with or without the consent of the Registered Owners; the rights, duties, ·and
obligations of the Issuer and the Paying Agent; the terms and provisions upon which tills Bond
may be redeemed or discharged at or prior to its maturity, and deemed to be no longer
Outstanding thereunder; and for other terms and provisions contained therein. A capitalized term
used herein and not otherwi.se defined has the same meaning as the meaning assigned to such
term in the Ordinance.
The Ordinance perm.its, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and the rights of the
Registered Owners of the Bonds under the Ordinance at any time by the Issuer with the consent
of the Registered Owners of a majority in aggregate principal amount of such Bonds at the time
outstanding affected by such modification. Any such consent by the Registered Owners of this
Bond or any Predecessor Bond herefor evidencing the same debt is conclusive and binding upon
· such Registered Owner and all future Registered Owners of this Bond and of any Bond issued
upon the transfer or in lieu hereof or in exchange berefor, whether or not notation of such
consent is made upon tills Bond.
This .Bond, subject to certain limitations contained in the Ordinance, may be transferred
on the Security Register only upon its presentation and surrender at the principal corporate trust
office of the Paying Agent, with the Assignment hereon duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Paying Agent duly executed by, the
Registered Owner hereof, or his duly authorized agent. When a transfer on the Security Register
SS9S49n.3 -20-
occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized
denominations, bearing the same Interest Rate, and of the same aggregate Principal Amount will
be issued by the Paying Agent to the designated transferee or transferees.
No service charge may be made for any transfer or exchange of this Bond, but the Issuer
or the Paying Agent may require payment of a sum sufficient to cover any tax or governmental
charge payable in connection therewith.
The Issuer, the Paying Agent, and any agent of either of them may treat the Person in
whose name this Bond is registered as the Registered Owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Bond be overdue, and
none of the Issuer, the Paying Agent, and any such agent is affected by notice to the contrary.
It is hereby certified, recited, represented and declared that the Issuer is a body corporate
and political subdivision duly organized and legally existing under and by virtue of the
Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by
law; that all acts, conditions and things required to exist and be done precedent to and in the
issuance of the Bonds to render the same lawful and valid obligations of the Issuer have been
properly done, have happened, and have been perfonned in regular and due time, form, and
manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that
the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has
been made for the payment of the principal of and interest on the Bonds by the levy of a tax as
aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be
construed in accordance with and shall be governed by the laws of the State of Texas.
Unless either a Registration Certificate hereon has been executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent or by the Paying Agent,
respectively, by manual signature, this Bond shall not be entitled to any benefit under the
Ordinance or be valid or obligatory for any purpose.
55954977.3 -21-
IN WTINESS WHEREOF, the Issuer has caused this Bond to be duly executed.
Dated:
.t::'.\cl.~: .. ao+ .. a.013 ............. .
CITY OF NEDERLAND, TEXAS
COUNTERSIGNED:
... %f.01J-/)J.4.{(;tf. /NM v-·~ljcity c1erk ·0171;r:.rv·-···-
....... ~~··········
[The remainder of this page intentionally left blank.]
SS9S4911.3 -22-
June 28
June 28
July 8
July 23
Legend
I \
Friday
Friday
Monday
Wednesday
City of Nederland
Fulbright & Jaworski
US Capital Advisors
Print and maiJ Final OS.
Comments due on draft closing memorandwn.
Send final closing memorandum.
Deliver Bonds.
Issuer (C)
Bond Counsel (BC)
Financial Advisor (FA)
Page2
,. I
FA
All
FA
C,BC
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 5
Bond Component
BOND SUMMARY STATISTICS
City ofNederland, Tex.as
General Obligation Refunding Bonds, Series 2013
Dated Date
Delivery Date
Last Maturity
Arbitrage Yield
True Interest Cost (TIC)
Net Interest Cost {NIC)
All-In TIC
Average Coupon
Average Life (years)
Duration of Issue (years)
Par Amount
Bond Proceeds
Total Interest
Net Interest
f otal Debt Service
Scale & SLG 5/6/13
S&P'AA-'
BQ Non Insured
Maximum Annual Debt Service
Average Annual Debt Service
Underwriter's Fees (per $1000)
Average Takedown
Other Fee
Total Underwriter's Discount
Bid Price
07/0112013
07/23/2013
09/01/1023
1.592698%
1.685977%
1.709844%
l.961802%
2.000000%
7J57
6.844
3,660,000.00
3,767,040.73
543,000.00
464,222.60
4,20.3,000.00
Par
679,000.00
415,467.18
6.500000
6.500000
102.152388
Value f>rice
General Obligation Refunding Bonds, Series 2013 3,660,000.00 102.802
Par Value
+ Accrued Interest
+ Premium (Discount)
-Underwriter's Discount
-Cost of Issuance Expense
-Other Amounts
Target Value
Target Date
Yield
TIC
3,660,000.00
4,473.33
102,567.40
-23,790.00
3, 743,250. 73
07123/2013
l.685977%
3,660,000.00
All-In
TIC
3,660,000.00
4,473.33
102,567.40
-23,790.00
-69,285.00
3,673,965. 73
07123/2013
1.961802%
Average Average
Coupon Life
2.000% 7.357
7.357
Arbitrage
Yield
3,660,000.00
4,473.33
102,567.40
3,767,040.73
07123/2013
1.592698%
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 6
BOND PRICING
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Bond Component
Maturity
Date
Scale & SLG 5/6113
S&P'AA-'
BQ Non Insured
Amount Rate
General Obligation Refunding Bonds, Series 2013:
09/01/2014
09/01/2015
09/01/2016
09/01/2017
09/01/2018
09/0i/20i9
09/01/2020
09/01/2021
09/01/2022
09/0112023
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
45,000 2.000%
45,000 2.000%
245,000 2.000%
245,000 2.000%
265,000 2.0000/o
160,000 i.000%
605,000 2.000%
640,000 2.000%
650,000 2.000%
660,000 2.000%
3,660,000
07/01/2013
07123/2013
09/01/2013
3,660,000.00
102,567.40
3, 762,567.40
-23,790.00
3,738,777.40
4,473.33
j, 74j,250. 73
Yield
0.500%
Q.600%
0.700%
0.850%
1.050%
i .1000/o
1.4000/o
1.600%
1.8000/o
2.0000/o
102.802388%
--0.650000%
I 02.152388%
Price
101.651
102.924
103.986
104.629
104.710
104.695
104.044
103.028
101.672
100.000
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013.REF2013) Page 7
BOND DEBT SERVICE
City ofNederland, Texas
General Obligation Refunding Bonds, Series 2013
Scale & SLG 5/6113
S&P'AA-'
BQ Non Insured
Period Debt
Ending Principal Coupon Interest Service
09/30/2013 12,200 12,200
09/30/2014 45,000 2.000% 73,200 I 18,200
09/30/2015 45,000 2.000% 72,300 117,300
09/30/2016 245,000 2.000% 71,400 316,400
09/30/2017 245,000 2.000% 66,500 311,500
09/30/2018 265,000 2.0000/o 61,600 326,600
09130/2019 260,000 2.000% 56,300 j i6,300
09/30/2020 605,000 2.000% 51,100 656,100
09/3012021 640,000 2.000% 39,000 679,000
09/30/2022 650,000 2.0000/o 26,200 676,200
09/30/2023 660,000 2.000% 13,200 673,200
3,660,000 543,000 4,203,000
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013} Page 8
BOND DEBT SERVJCE
City ofNederland, Texas
General Obligation Refunding Bonds, S~ries 2013
Scale & SLG 5/6/13
S&P 'AA-'
BQ Non Insured
Annual
Period Debt Debt
Ending Principal Coupon Interest Service Service
09/01/2013 12,200 12,200
09/30/2013 12,200
03/0112014 36,600 36,600
09/01/2014 45,000 2.000% 36,600 81,600
09/30/2014 118,200
03/01/2015 36,150 36,150
09/01/2015 ~5,000 2.0000/o 36,150 81,150
09/3012015 117,300
03/01/2016 35,700 35,700
09/0112016 245,000 2.000°/o 35,700 280,700
09/30/2016 316,400
03/0tn017 33,250 33,250
09/0112017 245,000 2.0000/o 33,250 278,250
09/30/2017 311,500
03/01/2018 30,800 30,800
09/01/2018 265,000 2.000% 30,800 295,800
09/30/2018 326,600
03/0112019 28,150 28,150
09/01/2019 260,000 2.0000/o 28,150 288,150
09/3012019 316,300
03/0112020 25,550 25,550
09/0112020 605,000 2.000% 25,550 630,550
09/30/2020 656,100
03/01/2021 19,500 19,500
09/0112021 640,000 2.000% 19,500 659,500
09/30/202 1 679,000
03/01/2022 13,100 13,100
09/01/2022 650,000 2.000% 13,100 663,100
09/30/2022 676,200
03/01/2023 6,600 6,600
09/01/2023 660,000 2.000% 6,600 666,600
09/3012023 673,200
3,660,000 543,000 4,203,000 4,203,000
May 9, 2013 3 :07 pm Prepared by D BC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 9
PRIOR BOND DEBT SERVICE
City of Nederland, Texas
G~neral Obligation Refunding Bonds, Series 2013
Scale & SLG 5/6/13
S&P'AA-'
BQ Non Insured
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
09/01 /2013 74,556.25 74,556.25
09/30/2013 74,556.25
03/01/2014 74,556.25 74,556.25
09/01/2014 74,556.25 74,556.25
09/30/2014 149,112.50
03/01/2015 74,556.25 74,556.25
09/() lliO i 5 74,556.25 74,556.25
09/3012015 149,112.50
03/0112016 74,556.25 74,556.25
09/0112016 200,000 4.2500/o 74,556.25 274,556.25
09/30/2016 349,112.50
03/0112017 70,306.25 70,306.25
09/01/2017 200,000 4.500% 70,306.25 270,306.25
09i30/2017 340,6i2.50
03/01/20 18 65,806.25 65,806.25
09/01/2018 225,000 4.500% 65,806.25 290,806.25
09/30/2018 356,612.50
03/01/2019 60,743.75 60,743.75
09/0112019 225,000 4.500% 60,743.75 285,743.75
09/30/2019 346,487.50
03/01/iOiO 55,681.25 55,681.25
09/01/2020 575,000 4.5000/o 55,681.25 630,681.25
09/30/2020 686,362.50
03/01/2021 42,743.75 42,743.75
09/0112021 625,000 4.350% 42,743.75 667,743.75
09/3012021 710,487.50
03/01/2022 29,150.00 29,150.00
09/0 lliOii 650,000 4.400% 29,iSO.OO 679,iso.oo
09/30/2022 708,300.00
03/0112023 14,850.00 14,850.00
09/01/2023 675,000 4.4000/o 14,850.00 689,850.00
09/30/2023 704,700.00
3,375,000 1,200,456.25 4,575,456.25 4,575,456.25
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 10
Period
Ending
09/01/2013
09/30/2013
03/01/2014
09/0l/20i4
09/30/2014
03/0 1/2015
09/0112015
09/30/2015
UNREFUNDED BOND DEBT SERVlCE
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Scale & SLG 5/6113
S&P'AA-'
BQ Non Insured
General Obligation Refunding Bonc!s. Series 2008 CSER2008)
Principal Coupon Interest Debt Service
175,000 4.250% 11,687.50 186,687.50
7,968.75 7,968.75
i75,000 4.250% 7,968.75 182,968.75
4,250.00 4,250.00
200,000 4.250% 4,250.00 204,250.00
550,000 36,125.00 586,125.00
Annual
Debt Service
186,687.50
190,937.50
208,500.00
586,125.00
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF20 13,REF2013) Page 11
FORM 8038 STATISTICS
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Scale & SLG 516113
S&P 'AA-'
BQ Non Insured
Dated Date
Delivery Date
07/0112013
0712312013
Bond Component Date Principal Coupon
General Obligation Refunding Bonds, Series 2013:
09/0112014 45,000.00 2.000%
09/01/2015 45,000.00 2.000%
09/(j 112016 245,000.00 2.0000/o
09/01/2017 245,000.00 2.000%
09/01/2018 265,000.00 2.000%
09/0112019 260,000.00 2.0000/o
09/01/2020 605,000.00 2.000%
09/01/2021 640,000.00 2.000%
09/0112022 650,000.00 2.000%
09/01/2023 660,000.00 2.000%
3,660,000.00
Maturity Interest Issue
Date Rate Price
Final Matl.U'ity 09/01/2023 2.000% 660,000.00
Entire Jssue 3,762,567.40
Proceeds used for accrued interest
Proceeds used for bond issuance costs (including underwriters' discount)
Proceeds used for credit enhancement
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to currently reftmd prior issues
Proceeds used to advance refund prior issues
Price
101.651
102.924
103.986
104.629
104.710
104.695
104.044
103.028
101.672
100.000
Stated
Redemption
at Maturity
660,000.00
3,660,000.00
Remaining weighted average maturity of the bonds to be currently refunded
Remaining weighted average maturity of the bonds to be advance refunded
Issue Price
45,742.95
46,315.80
i54,765.7o
256,341.05
277,481.50
272,207.00
629,466.20
659,379.20
660,868.00
660,000.00
3, 762,567.40
Weighted
Average
Maturity
7.3288
Redemption
at Maturity
45,000.00
45,000.00
245,000.00
245,000.00
265,000.00
260,000.00
605,000.00
640,000.00
650,000.00
660,000.00
3,660,000.00
Yield
1.5927%
4,473.33
93,075.00
0.00
0.00
0.00
3,731 ,481.32
0.0000
7.6611
•'
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 12
FORM 8038 STATISTICS
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Bond
Component Date
Scale & SLG 516113
S&P'AA-'
BQ Non Insured
Refunded Bonds
Principal Coupon
General Obligation Refunding Bonds, Series 2008:
SER2008 09/01/2016 200,000.00
SER2008 09/0112017 200,000.00
SEiU008 09/0112018 225,<i00.00
SER2008 09/0112019 225,000.00
SER2008 09/01/2020 575,000.00
SER2008 09/0112021 625,000.00
SER2008 09/01/2022 650,000.00
SER2008 09/01/2023 675,000.00
3,375,000.0<i
4.250%
4.500%
4.500%
4.500%
4.500%
4.350%
4.400%
4.400%
Last
Call
Date
Price
100.000
100.000
100.000
100.000
100.000
100.000
100.000
100.000
Issue
Date
General Obligation Refunding Bonds, Series 2008
All Refunded Issues
09/01/2015 03/01/2013
09/01/2015
Issue Price
200,000.00
200,000.00
225,<iOO.oo
225,000.00
575,000.00
625,000.00
650,000.00
675,000.00
3,j75,ooo.oo
Remaining
Weighted
Average
Maturity
7.661 1
7.6611
,. n '
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013 ,REF2013) Page 13
ESCROW REQUIREMENTS
City of Nederland, Texas
General Obligation Refunding Bonds, Series 201 ~
Period
Ending
09/01/2013
03/01/2014
09/01/2014
03/01/2015
09/01/2015
Scale & SLG 5/6113
S&P'AA-'
BQ Non Insured
Principal
Interest Redeemed
74,556.25
74,556.25
74,556.25
74,556.25
74,556.25 3,375,000.00
Total
74,556.25
74,556.25
74,556.25
74,556.25
3,449,556.25
372,781.25 3,375,000.00 3,747,'i&i.25
' r•
May 9, 2013 3 :07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 14
ESCROW DESCRIPTIONS
City of Nederland, Texas
General O?Iigation Refunding Bonds, Series 2013
Type of Type of
Security SLGS
Jul 23, 2013:
SLGS Certificate
SLGS Certificate
SLGS Note
SLGS Note
SLGS Note
SLGS Rates File
Scale & SLG 516113
S&P'AA-'
BQ Non Insured
Maturity First Int
Date Pmt Date
09101/2013 09/01/2013
03/01/2014 0310112014
09/01/2014 09/01/2013
03/01/2015 09/01/2013
09/01/2015 09/01/2013
SLGS Summary
Total Certificates of Indebtedness
Total Notes
Total original SLGS
Par
Amount
73,710
70,633
70,667
70,706
3,445,765
3,731,481
09MA.Yi3
144,343.00
3,587,138.00
3, 731,481.00
Max
Rate Rate
0.0100/o 0.010%
0.080% 0.080%
0.110% 0.110%
0.170% 0.170%
0.220% 0.220%
May 9, 2013 3 :07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013.REF2013) Page 15
ESCROW COST
City of Nederland., Texas
General Obligation Refunding Bonds, Series 2013
Scale & SLG 516113
S&P'AA-'
BQ Non Insured
Type of Maturity Par Total
Security Date Amount Rate Cost
SLGS 09/01/2013 73,710 0.0100/o 73,710.00
SLGS 03/01 /2014 70,633 0.080% 70,633.00
SLGS 09/01/2014 70,667 0.110% 70,667.00
SLGS 03/01/2015 70,706 0.170% 70,706.00
SLGS 09/0112015 3,445,765 0.220% 3,445, 765.00
3,731,481 3,731,48i.OO
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost Yield
07123/2013 3,731,481 0.32 3, 731,481.32 0.2 17408%
3,731,481 0.32 3,731,481.32
\,l• r
s M
5 6
12 13
19 20
26 27
M
7 8
14 15
21 22
28 29
Complete By
May 13
May20
May21
May23
Week ofMay 27
Jlllle 14
Jtllle 17
June 19
June 24
June24
Jlllle 25
June27
•
CITY OF NEDERLAND, TEXAS
G ENERAL OBLIGATION REFUNDING BONDS, SERIES 2013
COUNCIL MEETS 2Nl) & 4m MONDAY OF THE M ONTH ( 4:30PM)
T w Th
1 2
7 8 9
14 15 16
21 22 23
28 29 30
T w Th
2 3 4
9 I 0 11
16 17 18
23 24 25
30 31
Day
Monday
Monday
Tuesday
Thursday
Friday
Monday
Wednesday
Monday
Monday
Tuesday
Thursday
Tl·ntati' l' Timctahll' of E' l'nts
F s s M T w Th
4
10 11 2 3 4 5 6
17 18 9 10 11 12 13
24 25 16 17 18 19 20
31 23/30 24 25 26 27
F s s M T w Th
5 6
12 13 4 s 6 7 8
19 20 11 12 13 14 15
26 27 18 19 20 21 22
25 26 27 28 29
Event
Send draft bond documents to the working group for
comments.
City Council considers financing plan for General
Obligation Refunding Bonds (the "Bonds"). City Council
approves the parameter sale and the ordinance (the
"Ordinance").
Send draft bond documents to Standard & Poor's Rating
Service for review. Request rating call.
Comments due on bond documents.
Rating calJ with City Officials, Financial Advisor and S&P
~~~~-~~~~-am.
Receive S&P verbal rating and insurance qualification.
Request updated scale on Bonds -revise PCS/NOS.
Request CUSIPs.
Ptifit ahd mail POS -IPREO, Bloomberg, MAC.
Competitive bond sale (Bids received until I O:OOam).
Pricing Officer signs the Pricing Certificate and Bond
Purchase Agreement.
Distribute draft of Final Official Statement ("OS").
Comments due on draft OS.
Pagel
Draft
5.1911 3
F S
7 8
14 15
21 22
28 29
F S
2 3
9 10
16 17
23 24
30 31
Parties
FA
C,BC,FA
FA
All
C,FA
FA
FA
FA
FA, C,BC
C,BC,FA
FA
ALL
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 1
SOURCES AND USES OF FUNDS
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Sources:
Bond Proceeds:
Par Amount
Accrued Interest
Premiwn
Other Sources ofFunds:
i&S f'unds on Hand
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Other Fund Deposits:
Accrued Interest
Delivery Date Expenses:
Cost oflssuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
Scale & SLG 516113
S&P 'AA-'
BQ Non Insured
3,660,000.00
4,473.33
102,567.40
3, 767,040. 73
62,ooo.oo
3,829,040.73
0.32
3,731,481.00
3,731,481.32
4,473.33
69,285.00
23,790.00
93,075.00
11.08
3,829,040. 73
May 9, 2013 3 :07 pm Prepared by DBC Finance Date 09/30/2013 09/30/2014 09/30/2015 09/30/2016 09/30/2017 09/30/2018 09/3012019 09/30/2020 09/30/2021 09/3012022 09/30/2023 Prior Debt Service 74,556.25 149, 112.50 149,112.50 349,112.50 340,612.50 356,612.50 346,487.50 686,362.50 710,487.50 708,300.00 704,700.00 4,575,456.25 (Finance 7.004 nederland:NEDIERLAN-REF2013,R:EF2013) Page 2 SAVINGS City of Nederland, Texas General Obligation Refunding Bonds, Series 2013 Prior Scale & SLG 516113 S&P'M-' BQ Non Insured Refunding Refunding Refunding Prior Receipts Net Cash Flow Debt Service Receipts Net Cash Flow 62,000.00 12,556.25 12,200.00 149,112.50 118,200.00 149,112.50 117,300.00 349, 112.50 316,400.00 340,612.50 311,500.00 356,612.50 326,600.00 346,487..50 316,300.00 686,362.50 656,100.00 710,487..50 679,000.00 708,300.00 676,200.00 704,700.00 673,200.00 62,000.00 4,513,456.25 4,203,000.00 SavinJ?S Summarv PV of savings from cash flow Plus: Refunding fWlds on hand Net PV Savings 4,473.33 7,726.67 118,200.00 117,300.00 316,400.00 311,500.00 326,600.00 316,300.00 656,100.00 679,000.00 676,200.00 673,200.00 4,473.33 4, 198,526.67 290,904.31 11.08 290,915.39 Present Value to·07/23/2013 Savings @ l.5926977% 4,829.58 4,725.25 30,912.50 30,672.08 31,812.50 31,063.24 32,712.50 31,434.49 29,112.50 27,553.32 30,012.50 27,934.59 30, 187.50 27,636.34 30,262.50 27,250.86 31,487.50 27,850.93 32,100.00 27,893.13 31,500.00 26,890.08 314,929.58 290,904.31
May 9, 2013 3 :07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERI.AN-REF2013,REF2013) Page 3
SUMMARY OF REFUNDING RESULTS
City of Nederland, Texas
General Obligation Refunding Bonds, Series 2013
Dated Date
Deiivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
Scale & SLG 516113
S&P'AA-'
BQ Non Insured
PV of prior debt to 07/2312013@ 1.S9i698%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
07/01/2013
01m1io1j
1.592698%
0.217408%
3,660,000.00
1.685977%
1.709844%
2.000000%
7.357
3,375,000.00
4.415333%
7.661
4,ii5,47i.7l
290,915.39
8.619715%
7.948508%
May 9, 2013 3:07 pm Prepared by DBC Finance (Finance 7.004 nederland:NEDERLAN-REF2013,REF2013) Page 4
SUMMARY OF BONDS REFUNDED
City ofNederland, Texas
General Obltgation Refunding Bonds, Series 2013.
Bond
Maturity
Date
Scale & SLG 5/6/13
S&P'AA-'
BQ Non Insured
Interest
Rate
Par
Amount
General Obligation Refunding Bonds, Series 2008, SER2008:
SER2008 09/01/2016 4.250% 200,000.00
09/01/2017 4.500% 200,000.00
09/0112018 4.500% 225,000.00
09/0112019 4.500% 225,000.00
09/01/2020 4.500% 575,000.00
09/01/2021 4.3500/o 625,000.00
09/01/2022 4.4000/o 650,000.00
09/01/2023 4.4000/o 675,000.00
3,375,000.00
Call
Date
09/01/2015
09/01/2015
09/011201 5
09/011201 5
09/01/2015
09/01/2015
09/01/2015
09/01/2015
Call
Price
100.000
100.000
100.000
100.000
100.000
100.000
100.000
100.000
(2) The Refunded Obligations are being called for redemption, and will be redeemed
not later than the earliest date on which such bonds may be redeemed and on which the Issuer
will realize present value debt service savings (determined without regard to administrative
expenses) on the issue.
(3) The initial temporary period under section 148( c) of the Code will end: (i) with
respect to the proceeds of the Bonds not later than 30 days after the date of issue of such Bonds;
and (ii) with respect to proceeds of the Refunded Obligations on the Issue Date if not ended prior
thereto.
(4) On and after the date of issue of the Bonds, no proceeds of the Refunded
Obligations will be invested in Nonpurpose Investments having a Yield in excess of the Yield on
such Refunded Obligations.
(5) The Bonds are being issued for the purposes stated in the recitals of this
Ordinance. There is a present value savings associated with the refunding. In the issuance of the
Bonds the Issuer has neither: (i) overburdened the tax-exempt bond market by issuing more
bonds, issuing bonds earlier or allowing bonds to remain outstanding longer than reasonably
necessary to accomplish the governmental purposes for which the Bonds were issued; (ii)
employed on "abusive arbitrage device" within the meaning of Section 1.148-lO(a) of the
Regulations; por (!ii) employed a "device" to obt.all! a material financial advantage based oq
arbitrage, within the meaning of section 149(d)(4) of the Code, apart from savings attributable to
lower interest rates and reduced debt service payments in early years.
SECTION 5.3. Remedies in Event of Default.
In addition to all the rights and remedies provided by the laws of the State of Texas, the
Issuer covenants and agrees particularly that in the event the Issuer (a) defaults in the payments
to be made to the Debt Service Fund, or (b) defaults in the observance or performance of any
other of the covenants, conditions, or obligations set forth in this Ordinance, the Registered
Owners of any of the Bonds shall be entitled to seek a writ of mandamus issued by a court of
proper jurisd1ction compelling and requiring the governing body of the Issuer and other officers
of the Issuer to observe and perform any covenant, condition, or obligation prescribed in this
Ordinance.
No delay or omission to exercise any right or power accruing upon any default shall
impair a.ny such right or power or slia1l be eonStr'Ued co be a waivet of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
SS9S4977.3 -34-
SECTION 6.1.
ARTICLE SIX
DEFEASANCE
Discharge of Obligations.
Any Bond is deemed paid and is no longer considered to be a Bond within the meaning
of this Ordinance when payment of the principal of and interest on such Bond to the Stated
Maturity thereof or (if notice of redemption bas been duly given, irrevocably provided for, or
waived as provided herein) to the Redemption Date bas been made or bas been provided for by
deposit with the Paying Agent or an escrow agent for such payment (or with any other bank or
trust company which bas agreed to hold the same for such purpose) (1) money sufficient to make
such payment, (2) Government.al Obligations certified by an independent public accounting firm
of national reputation to be of such maturities and interest payment dates and to bear such
interest as will, without further investment or reinvestment of either the principal amount thereof
or the interest earnings therefrom, be sufficient to make such payment, or (3) a combination of
money and Governmental Obligations together so certified sufficient to make such payment,
provided that all the expenses pertaining to the Bonds with respect to which such deposit is made
have been paid or the payment thereof provided for to the satisfaction of the Paying Agent (and
to such other bank or trust company).
If such deposit is made with respect to some but not all of the Bonds then Outstanding,
the Issuer shall designate the Stated Maturities of Bonds with respect to which such deposit is
made. If such deposit is sufficient so to provide for the payment of the principal of and interest
on some but not all Outstanding Bonds of a particular Stated Maturity so designated, the Paying
Agent shall select the Outstanding Bonds of such Stated Maturity with respect to which such
deposit is made by such random method as the Paying Agent deems fair and appropriate and
which may provide for the selection of portions (equal to and leaving unredeemed an authorized
denomination) of Bonds a denomination larger than $5,000.
Notwithstanding anything herein to the contrary, no such deposit bas the effect described
in this Section (a) if made during the subsistence of a default in the payment of any Bond unless
made with respect to all of the Bonds then Outstanding or (b) unless accompanied by an opinion
of counsel of recognized standing in the field of federal income taxation to the effect that neither
such deposit nor the investment thereof adversely affects the excludability of interest on any
Bond from the gross income of any owner thereof for federal income t.ax purposes.
The Paying Agent (or other bank or trust company) with which a deposit is made or
money and Governmental Obligations for such purpose shall hold the deposit in a segregated
account in trust or escrow for the Registered Owners of the Bonds with respect to which such
deposit is made and, together with any investment income therefrom, the deposit may be
disbursed solely to pay the principal of and interest on such Bonds when due, except that cash
receipts may be withdrawn and paid to the Issuer provided the date and amount of such
withdrawals are taken into accotmt in the most recent verification of the accounting firm referred
to in this Section. No money or Governmental Obligations so deposited may be invested or
reinvested unless in Governmental Obligations and unless such money and Governmental
55954971.J -35-
Obligations not invested and such new investments are together certified by an independent
public accounting firm of national reputation to be of such amounts, maturities, and interest
payment dates and to bear such interest as will, without further investment or reinvestment of
either the principal amount thereof or the interest eami.J?gs therefrom, be sufficient to make such
payment.
At such times as a Bond is deemed to be paid hereunder, as aforesaid, it is no longer
entitled to the benefits of this Ordinance, except for the purposes of any such payment from such
money or Governmental Obligations and for the provisions of Sections J.-1 and J. 7 and for the
continuing compliance of the Issuer with the provisions of Section 5.2.
Provided, however, the City has reserved the option. to be exercised at the time of the
defeasance of the Bonds, to call for redemption at an earlier date those Bonds which have been
defeased to their maturity date, if the City (i) in the proceedings providing for the firm banking
and financial arrangements, expressly reserves the right to call the Bonds for redemption.
(ii) gives notice of the reservation of that right to the owners of the Bonds immediately following
the making of the firm bank and financial arrangements, and (iii) directs that notice of the
reservation be included in any redemption notices that it authorizes.
[The remainder of this page intentionally left blank]
SS9S4977.3 -36-
SECTION 7.1.
ARTICLE SEVEN
SALE
Sale of the Bonds.
The Mayor (or in the absence of the Mayor, the Mayor Pro Tem) is hereby authorized to
act for and on behalf of the Issuer in connection with the issuance and sale of the Bonds and is
authorized to designate the underwriter (the "Purchaser", having all the rights, benefits, and
obligations of a Holder) for the Bonds to assure that the Bonds are sold on the most
advantageous terms to the Issuer as set forth in the Officer's Pricing Certificate. The sale of the
Bonds to the Purchaser specified in the Officer's Pricing Certificate, is hereby approved in
accordance with the terms and conditions set forth in either a Bond Purchase Agreement or
Investor Letter with such customary terms, representations, and warranties as may be presented
to the Mayor (or in the Mayor's absence, Mayor Pro Tem) in connection with delivering of the
Official Pricing Certificate, which terms and conditions by execution by the Mayor (or in the
Mayor's absence, Mayor Pro 'fem) are hereby t'ound and determined to be the most
advantageous reasonably obtainable by the Issuer. Upon the completion of the terms of either a
Bond Purchase Agreement or Investor Letter in accordance with the terms of the Officer's
Pricing Certificate and this Ordinance, the Mayor and the Mayor Pro T em of the Governing
Body, or either of them, are hereby authorized and instructed to execute and deliver the Bond
Purchase Agreement or Investor Letter substantially in such form and to such effect for and on
behalf of the Issuer and as the act and deed of the Governing Body.
The representations and warranties of the Issuer set forth in the Bond Purchase ·
Agreement or Investor Letter are hereby found, determined, and declared to be true and correct,
and the Mayor, Mayor Pro Tero. Secretary, and any Acting Secretal'}' of the Governing Body, or
any of them, are hereby authorized and directed to furnish such information, execute such
instruments, and take such action as is necessary to comply with the terms, conditions, and
agreements specified in the Bond Purchase Agreement or the Investor Letter or to effect the
issuance of the Bonds.
SECTION 7.2. Payment of Costs of Issuance; Engagement of Bond Counsel.
The Issuer has in consultation with its financial advisor, USCA Municipal Advisors, LLC
set aside an amount of the proceeds of the Bonds to pay Costs of Issuance of the Bonds. The
amount of such proceeds will be designated in a closing letter prepared by the financial advisor,
and in the absence of contrary written instructions included as part of such closing Jetter to
deposit such proceeds with the Issuer, the Paying Agent will pay such costs of issuance on behalf
of the Issuer in accordance with invoices which conform to the instructions in the closing Jetter.
The Issuer hereby confirms engagement of Fulbright & Jaworski L.L.P. as Bond Counsel
("Bond Counsel") for the Issuer in accordance with the terms of the Letter of Engagement
berween the Issuer and Bond Counsel.
SS9:54917.3 -37-
SECTION 7.3. Official Statement.
The Governing Body hereby authorizes and approves, in connection with the sale of the
Bonds, the preparation and distribution of a Preliminary Official Statement relating to the Bonds,
and a final Official Statement containing such additional information and amendments as may be
necessary to conform to the terms of the Bonds, the Officers' Pricing Certificate, and this
Ordinance.
The Issuer hereby ratifies and confirms that the Preliminary Official Statement approved
by this Section constitutes an Official Statement of the Issuer with respect to the Bonds that was
deemed "final" by the Issuer as of its date, except for the omission of no more than the
information permitted by Subsection (b)(l) of Rule 15c2-12 of the Securities and Exchange
Commission.
The proper officials of the Issuer are hereby authorized to execute and deliver a
certificate pertaining to such Official Statement as prescribed therein.
SS9S4971.3 -38-
J
SECTION 8.1.
ARTICLE EIGHT
CONTINUING DISCLOSURE UNDERT AK.ING
Annual Reports.
The Issuer shall provide annually to the MSRB via EMMA, within six months
after the end of each fiscal year of the Issuer ending in or after 2010, financial information and
operating data with respect to the Issuer of the general type included in the Official Statement for
the Bonds, being the information described in Exhibit A hereto. If audited financial statements
for the Issuer are not available within such period, then the Issuer shall provide its audited
financial statements for the applicable fiscal year to the MSRB via EMMA when such audited
financial statements become available.
If the Issuer changes its fiscal year, the Issuer will notify the MSRB via EMMA
of the change (and of the date of the new fiscal year end} prior to the next date by which the
Issuer otherwise would be required to provide financial information and operating data pursuant
to this Section.
The financial information and operating data to be provided pursuant to this
Section may be set forth in full in one or more documents or may be included by specific
reference to any document (including an official statement or other offering document, if it is
available from the MSRB} that theretofore has been provided to the MSRB via EMMA or filed
with the SEC.
SECTION 8.2. Material Event Notices.
The Issuer shall notify the MSRE via EMMA, in a timely manner not in excess of
1 O business days, of any of the following events with respect to the Bonds, if such event is
material within the meaning of the federal securities Jaws:
SS9S4977.3
( 1) Principal and interest payment delinquencies;
(2)
(3)
(4)
(5)
(6)
Non-payment related defaults, if material;
Unscheduled draws on debt service reserves reflecting financial
difficulties;
Unscheduled draws on credit enhancements reflecting financial
difficulties;
Substitution of credit or liquidity providers, or their failure to perform;
Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB), or other material notices or determinations with
-39-
respect to the tax-exempt status of the Bonds, or other material events
affecting the tax status of the Bonds;
(7) Modifications to rights of holders of the Bonds, if material;
(8) Bond calls, if material, and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Bonds,
if material;
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership, or similar event of the Issuer, which
shall occur as described below;
(13) The consummation of a merger, consolidation, or acquisition involving the
Issuer or the sale of all or substantially all of its assets, other than in the
ordinary course of business, the entry into of a definitive agreement to
undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material;
and
(14) Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
The Issuer shall notify the MSRB via EMMA, in a timely manner, of any failure
by the Issuer to provide financial information or operating data in accordance with Section 8.1
by the time required by such Section.
SECTION 8.3. Limitations, Disclaimers, and Amendments.
The Issuer shall be obligated to observe and perform the covenants specified in
this Article for so long as, but only for so long as, the lssuer remains an "obligated person" with
respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give
the notice required by Section 8.2 of any Bond calls and defeasance that cause the Issuer to be no
longer such an "obligated person."
The provisions of this Article are for the sole benefit of the Holders and beneficial
owners of the Bonds, and nothing in this Article, express or implied, shall give any benefit or any
legal or equitable right, remedy, or claim hereunder to any other Person. The Issuer undertakes
to provide only the financial information, operating data. financial statements, and notices which
it bas expressly agreed to provide pursuant to this Article and does not hereby undertake to
provide any other information that may be relevant or material to a complete presentation of the
Issuer's financial results, condition, or prospects or hereby undertake to update any information
provided in accordance with this Article or otherwise, except as expressly provided herein. The
SS9S4977.3 -40-
Issuer does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE
HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN
CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM
ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS
PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RlGHT AND
REMEDY OF ANY SUCH PERSON, JN CONTRACT OR TORT, FOR OR ON ACCOUNT
OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR
SPECIFIC PERFORMANCE.
No default by the Issuer in observing or performing its obligations under this
Article shall constitute a breach of or default under this Ordinance for purposes of any other
provision of this Ordinance.
Nothing in this Article is intended or shall act to disclaim, waive, or otherwise
limit the duties of the Issuer under federal and state securities laws.
The provisions of this Article may be amended by the Issuer from time to time to
adapt to changed circumstances that arise from a change in legal requirements, a change in law,
or a change in the identity, nature, status, or type of operations or businesses of the Issuer, but
only if (1) the provisions of this Article, as so amended, would have permitted an underwriter to
purchase or sell Bonds in a primary offering of the Bonds in compliance with the Rule, taJci.ng
into account any amendments and interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate
principal amount of the Outstanding Bonds consent to such amendment or (b) a Person that is
unaffiliated with the Issuer (such as nationally recognized bond counsel) determines that such
amendment will not materially impair the interests of the Holders and beneficial owners of the
Bonds. If the· Issuer so amends the provisions of this Article, the Issuer shall include with any
amended financial information or operating data next provided in accordance with Section 8.1 an
explanation, in narrative form, of the reasons for the amendment and of the impact of any change
in the type of financial information or operating data so provided. The Issuer may also repeal or
amend the provisions of this Article if the SEC amends or repeals the applicable provisions of
the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are
invalid, and the Issuer also may amend the provisions of this Article in its discretion m any other
manner or circumstance, but in either case only if and to the extent that the provisions of this
sentence would not prevent an underwriter from lawfully purchasing or selling Bonds in a
primary offering of the Bonds.
SECTION 8.4. Definitions.
As used in this Article, the following terms have the meanings ascribed to such
terms below:
"EMMA" means the Electronic Municipal Market Access system.
SS9S4977.3 -41-
ordained.
SS954m.3
"MSRB" means the Municipal Securities Rulemaking Board.
"Rule" means SEC Rule l 5c2-12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission .
• • •
This Ordinance is in force and effect from and after its final passage, and it is so
-42-
IN WITNESS WHEREOF, signed as of HQ({ ao,@013
CITY OF NEDERLAND, TEXAS
ATIEST:
SS9S4911.3 SIGNATURE PAGE
EXHIBIT A
In the Preliminary Official Statement dated _____ __, 2013.
Financial information and operating data with respect to the City of the general type
included in this Official Statement under the beadings, " [TBD]" in APPENDIX A.
55954977.3
SECTION 3.3. Form of Registration Certificate of Comptroller of Public Accounts
REGISTRATION CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS
OFFICE OF THE COMPTROLLER§
OF PUBLIC ACCOUNTS §
§ REGISTER NO ............................ .
THESTATEOFTEXAS §
I HEREBY CERTIFY that this Bond has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ............................................... .
(SEAL)
Comptroller of Public Accounts
of the State ofTexas
Note ti> Printer: Not to appear oii deflnitiVe Bonds
SECTION 3.4. Form of Certificate of Paying Agent.
CERTIFICATE OF PA YING AGENT
This Bond bas been duly issued under the provisions of the within-mentioned Ordinance;
the Bond or Bonds of the above-entitled and designated series originally delivered having been
approved by the Attorney General of the St.ate of Texas and registered by the Comptroller of
Public Accounts, as shown by the records of the Paying Agent.
[Insert name of Paying Agent]
as Paying Agent
By·········································································
Authorized Officer
Note to Printer: Not to appear on initial Bonds
SS9S4911.3 -23-
SECTION 3.5. Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee): ...................................................... .
(Social Security or other identifying number: ................................................................................ )
the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ......... .
attorney to transfer the within Bond on the books kept for registration thereof, with full power of
substitution in the premises.
DATED: ...................................... .
Signature guaranteed:
SECTION 3.6. Insurance Legend.
NOTICE: The signature on this
assignment must correspond
with the name of the regis-
tered owner as it appears
on the face of the within
Bond in every particular.
The Mayor, and in the absence of the Mayor of the Governing Body the Mayor Pro Tern,
is hereby authorized to execu~ and deliver a commitment for insurance as specified in the
Officer's Pricing Certificate and related insurance credit agreements. If bond insurance is
obtained by the Issuer or the Purchaser, the Definitive Bonds and the Initial Bond(s) may bear an
appropriate legend as provided by the Insurer.
[Insert Legend/
SECTION 3.7. Form of Initial Bond.
The Initial Bond shall be in the form set forth in Section 3.2 except that the form of a
single fully registered Bond shall be modified as follows:
(i)
(ii)
SS9S4977.3
immediately under the name of the Bond the beadings "Interest Rate
__ " and "Stated Maturity __ " will be omitted, and "CU SIP No."
may be omitted;
Paragraph one will read as follows:
-24-
The City of Nederland., Texas (together with its successors, the "Issuer"), a body politic
and political subdivision duly organized and existing under and by virtue of the Jaws of the State
of Texas, for value received, hereby promises to pay to the Registered Owner named above (the
"Registered Owner"), or the registered assigns thereof, the hereinabove stated Principal Amount
on September 1 in each of the years and in principal amounts and bearixig interest at per annum
rates in accordance with the following schedule:
Year of
Stated Maturity
Principal
Amount
Interest
Rate(%)
(Information to be inserted from schedule in Officer's Pricing Certificate.)
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest
thereon computed on the basis of a 360-day year of twelve 30-day months to the Person herein
specified from the Dated Date specified above, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, until such principal is paid or duly provided
for on or after such Stated Maturity or any earlier Redemption Date, semiannually on March 1
and September I in each year commencing September l, 2013, at the per annum Interest Rates
specified above, computed on the basis of a 360-day year of twelve 30-day months. Principal
installments of this Bond are payable at its Stated Maturity or on a prepayment date to the
registered owner hereof by BOKF, NA, dba Bank of Texas, {the "Paying Agent"), upon its
presentation and surrender, at its designated offices in Austin, Texas.
SS~911.3 -25-
SECTION 4.1.
ARTICLE FOUR
TAXES, REVENUES, AND FUNDS;
INVESTMENTS
Debt Service Fund.
To pay interest on and to provide a sinking fund for the payment, redemption. and
retirement of the Bonds, the Issuer hereby creates and shall maintain solely for such purposes
(subject to the provisions of Section 5.:Z) a special fund designated as its "GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2013, DEBT SERVICE FUND" (the "Debt
Service Fund"). The Issuer authorizes and directs its authorized officials to withdraw from the
Debt Service Fund and to transfer to the Paying Agent money on deposit in the Debt Service
Fund sufficient to pay the amount of principal or interest falling due on the Bonds, such transfer
of funds to the Paying Agent to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent on or before the last business day next preceding
each interest and principal payment date for the Bonds.
SECTION 4.2. Deposits to Debt Service Fund; Excess Bond Proceeds.
The Issuer shall deposit accrued interest and premium, if any, received from the
Purchaser and ad valorem taxes levied and collected to pay principal or Redemption Price of or
interest on the Bonds to the Debt Service Fund. In addition, the Issuer shall deposit any surplus
proceeds, including investment income therefrom, from the sale of the Bonds not expended for
authorized purposes to the Debt Service Fund.
SECTION 4.3. Tax Levy.
To provide for the payment of the Debt Service Requirements, the Issuer levies and shall
levy for the current year and each succeeding year thereafter while the Bonds or any interest
thereon is oUtstanding, a sufficient tax on each $100 of taxable property in the Issuer, adequate
to pay such amounts or a sinking fund of2% (whichever amount is greater), full allowance being
made for delinquencies and costs of collection. Such tax shall be assessed and collected each
year, and the same may not be diverted to any other purpose. The Issuer shall pay the taxes so
levied and collected into the Debt Service Fund. The Governing Body hereby declares its
purpose and intent to provide and levy such tax, it having been determined that the existing and
available taxing authority of the Issuer for such purpose is adequate to permit a legally sufficient
tax in consideration of all other outstanding indebtedness.
The Issuer shall determine the amount of taxes to be provided annually for the Debt
Service Requirements in the following manner:
A. Prior to establishing the annual tax rate, the Governing Body shall determine:
(1) the amount of Debt Service Requirements to become due and payable on
the Bonds between the Collection Date for the taxes then to be levied and the Collection
Date for the taxes to be levied during the next succeeding calendar year; and
55954977.3 ·26·
(2) the amount on deposit in the Debt Service Fund (including surplus Bond
proceeds transferred to the Debt Service Fund under Section 4.2) after deducting
therefrom the total amount of Debt Service Requirements to become due on Bonds prior
to the Collection Date for the ad valorem taxes then to be levied.
B. The Issuer shall assess and levy annually each year a tax to pay the Debt Service
Requirements sufficient to provide tax revenues in the amount established in paragraph (I) above
less the sum total of the amount established in paragraph (2), after talcing into consideration
delinquencies and costs of collecting such annuaJ truces.
Texas Government Code chapter 1208 applies to the issuance of the Bonds and the
pledge of the tax revenues granted hereunder, and such pledge is therefore valid, effective, and
perfected. If Texas law is hereafter amended at any time while the Bonds are Outstanding and
unpaid so that the pledge of taxes hereunder is subject to the filing requirements of chapter 9,
Texas Business & Commerce Code, then in order to preserve to the Registered Owners of the
Bonds the perfection of the security interest in said piedge, the Issuer agrees to take such
measures as 'it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of chapter 9, Texas Business & Commerce Code and enable a filing to
perfect the security interest in such pledge to occur.
SECTION 4.4. Irrvestments and Security For FundS.
The Issuer is required to keep all money in such funds and accounts at a depository of the
Issuer except when invested pursuant to this Section. Subject to Section 5.2, money in any fund
established by this Ordinance may, at the option of the Issuer, be invested in a manner permitted
by the provisions of the Public Funds Investment Act of 1987, Texas Government Code chapter
2256, subchapter A, as then in effect, the Public Furids Collateral Act, Texas Government Code
chapter 2257, as then in effect, or by any other law applicable to the Issuer; provided that all such
investments must be made so that money required to be expended will be available at the proper
time or times. The Issuer shall credit or debit all interest and income or losses from deposits and
investments in any fund or account established pursuant to the provisions of this Ordinance shall
be credited to such fund or account. The Issuer shall sell investments promptly as necessary to
prevent any default in connection with the Bonds.
All money on deposit in the funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested as provided herein) shall be secured in
the manner and to the fullest extent required by the laws of Texas for the security of public
funds, and money on deposit in such funds shall be lised only for the purposes permitted by this
Ordinance.
SECTION 4.5. Escrow Agreement; Funding of Defeasance; Redemption of Refunded
Obligations.
A. Authorization of Escrow Agreement. The terms and provisions of the Escrow
Agreement are hereby approved, and the Mayor and the Mayor Pro Tem of the Issuer, or either
of them, and the Clerk and any Assistant or Acting Clerk of the Issuer, or any of them, are
SS9S4971.3 ·27-
hereby authorized to execute and deliver the Escrow Agreement substantially in the fonn and to
the effect presented to the Governing Body on the date of adoption of this Ordinance, but with
such changes therein as the Mayor or the Mayor Pro Tern may approve, such approval to be
conclusively evidenced by the execution thereof by such officer, all as the act and deed of the
Governing Body, and the Governing Body further approves the purchase of the securities to be
held by the Escrow Agent pursuant to the Escrow Agreement and authorizes the Mayor and the
Mayor Pro Tern, or either of them, to take such action in furtherance of the purchase of such
securities as may be necessary or advisable.
B. Funding of Defeasance. Promptly after the delivery of the Bonds, an amount as
specified in the Officer's Pricing Certificate is to be deposited in immediately available funds to
the escrow fund established with the Escrow Agent pursuant to the Escrow Agreement and used
for the purposes of providing for the full and complete discharge and final payment of all the
outstanding Refunded Obligations and appurtenant coupons. The Governing Body hereby finds
and determines, after consultation with the engineer for the Issuer, that amounts held in any
construction fund for the Refunded Obligations are necessary for the purposes for which the
Refunded Obligations were issued and as a reasonable contingency, repair, and replacement fund
for the facilities financed thereby. The Governing Body hereby further finds and determines that
amounts held in the interest and sinking fund of the Issuer in excess of the amount specified in
the Escrow Agreement are reasonably required to insure timely payment of debt service on tax-
supported obligations of the Issuer and that all amounts held in the operating fund of the Issuer
are reasonably required to pay costs of operating and maintaining the properties of the Issuer.
The Governing Body therefore finds and determines that none of the amounts held in the
Construction Fund or such interest and sinking fund or operating fund are surplus or should be
applied to purchase the securities held by the Escrow Agent under the Escrow Agreement, except
the amount specified in the Escrow Agreement
Promptly after the delivery of the Bonds, sufficient proceeds received from the sale of the
Bonds, together with other legally available funds from the Issuer's debt service funds held for
payment of the Refunded Obligations, is to be deposited in immediately available funds to the
escrow fund established with the Escrow Agent pursuant to the Escrow Agreement and used for
the purposes of providing for the full and complete discharge and final payment of all the
outstanding Refunded Obligations and appurtenant coupons.
C. Redemption of Refunded Obligations. Upon confirmation by the Mayor or Mayor
Pro Tern in the Officer's Pricing Certificate, the Issuer irrevocably exercises its option to call the
Refunded Obligations for redemption, and calls for redemption on the earliest date on which
each series of Refunded Obligations may be called for redemption (as specified in the Officer's
Pricing Certificate), as described in the Escrow Agreement. The Mayor or Mayor Pro Tero of
the Issuer, or either of them, are authorized and instructed to give or effect notice of such
redemption to the paying agent for the Refunded Obligations to be so redeemed by delivery of a
certified copy of this Ordinance and to the holders of such Refunded Obligations and appurtenant
coupons, by publication or mail in the manner described in such bonds, promptly on or after the
Issue Date. The Governing Body hereby authorizes and instructs the officers of the Governing
Body, the paying agent for the Refunded Obligations, and the Escrow Agent to take such steps as
,,954911.3 -28-
are necessary to accomplish the redemption and the discharge of the Refunded Obligations in
accordance with the provisions hereof.
SS9S49173 -29-
SECTION 5.1.
ARTICLE FIVE
COVENANTS
To Maintain Agency.
The Issuer will at all times maintain an agency in the State of Texas meeting the
qualifications herein described, for the performance of the duties of the Paying Agent hereunder.
BOKF, NA, dba Bank of Texas, is hereby appointed Paying Agent for such pwposes. The
Paying Agent may be removed from its duties hereunder at any time upon not less than 30 days
notice with or without cause by action of the Governing Body entered in its minutes, but no such
removal is effective until such successor has accepted the duties of the Paying Agent hereunder
by written instrument
Every Paying Agent appointed hereunder must at all times be a commercial bank or trust
company organized and doing business under the laws of the United States of America or of any
state, authorized under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $10,000,000, subject to supervision or examination by federal or state
authority, and registered as a transfer agent with the Securities and Exchange Commission. If
such corporation publishes reports of condition at least annually pursuant to law or to the
requirements of such supervising or examining authority, then for the pwposes of this Section
the combined capital and surplus of such corporation shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. Upon any change in
the Paying Agent, the Issuer agrees to promptly cause a written notice thereof to be sent to each
Registered Owner affected by the change, which notice shall also give the address of the new
Paying Agent, which shall thereafter be the designated Place of Payment.
The terms of the Transfer and Paying Agency Agreement (the "Paying Agency
Agreement") with the initial Paying Agent are hereby approved in substantially the form and to
the effect presented to the Governing Body on this date but with such changes therein as the
Mayor or Mayor Pro Tem may approve, such approval to be conclusively evidenced by the
execution thereof of such officer, and as the act and deed of the Governing Body. The Mayor and
the Mayor Pro Tern of the Issuer, or either of them, and the Clerk and any Assistant or Acting
Clerk of the Issuer, or any of them, are hereby authorized to execute and deliver such Transfer
and Paying Agency Agreement.
SECTION 5.2. Covenants to Maintain Tax-Exempt Sta/us.
A. Not to Cause Interest to Become Taxable. The Issuer shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction, or improvement of which is to be financed directly or indirectly with Gross
Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any
Bond to become includable in the gross income, as defined in section 61 of the Code, of the
owner thereof for federal income tax pwposes. Without limiting the generality of the foregoing,
unless and until the Issuer shall have received a written opinion of counsel nationally recognized
in the field of municipal bond law to the effect that failure to comply with such covenant will not
SS9S4977.3 -30-
adversely affect the exemption from federal income tax of the interest on any Bond, the Issuer
shall comply with each of the specific covenants in this Section.
B. No Private Use or Private Payments. Except as pennitted by section 141 of the
Code and the Regulations and rulings thereunder, the Issuer shall at all times prior to the last
Stated Maturity of Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly with
Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded
Obligations), and not use or pennit the use of such Gross Proceeds (including all contractual
arrangements with terms different than those applicable to the general public) or any property
acquired, constructed or improved with such Gross Proceeds in any activity carried on by any
person or entity (including the United States or any agency, department and instrumentality
thereof) other than a state or local government, unless such use is solely as a member of the
general public; and
(2) not directly or indirectly impose or accept any charge or other payment by
any person or entity who is treated as using Gross Proceeds of the Bonds or any property the
acquisition, construction or improvement of which is to be financed or refinanced directly or
indirectly with such Gross Proceeds (including property filiariced witli Gross Proceeds of the
Refunded Obligations), other than taxes of general application within the Issuer or interest
earned on investments acquired with such Gross Proceeds pending application for their intended
purposes.
C. No Private Loan. Except to the extent pennitted by section 141 of the Code and
the Regulations and rulings thereunder, the Issuer shall not use Gross Proceeds of the Bonds to
make or finance loans to any Person other than a state or local government. For purposes of the
foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if
(1) property acquired, constructed, or improved with such Gross Proceeds is sold or leased to
such person or entity in a transaction which creates a debt for federal income tax purposes, (2)
capacity in or service from such property is committed to such Person under a take-or-pay,
output, or similar contract or arrangement, or (3) indirect benefits, or burdens and benefits of
ownership, of such Gross Proceeds or any property acquired, constructed, or improved with such
Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a
loan.
D. Not to Invest at Higher Yield Except to the extent permitted by section 148 of the
Code and the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the
final Stated Maturity of the Bonds, directly or indirectly invest Gross Proceeds of the Bonds in
any Investment (or use such Gross Proceeds to replace money so invested), if as a result of such
investment the Yield of aJ'lY Investment acquired with such Gross Proceeds (or with money
replaced thereby) whether then held or previously disposed ot: exceeds the Yield of the Bonds.
E. Not Federally Guaranteed. Except to the extent pennitted by section 149(b) of
the Code and the Regulations and rulings thereunder, the Issuer shall not take or omit to take any
SS9S4977.3 -31-
•
action which would . cause the Bonds to be federally guaranteed within the meaning of
section 149(b).ofthe Code and the Regulations and rulings thereunder.
F. Information Report. The Issuer shall timely file with the Secretary o.f the
Treasury the information required by section 149(e) of the Code with respect to the Bonds on
such Form 8038-G or other form and in such place as the Secretary may prescribe.
G. Payment of Rebatable Arbitrage. Except to the extent otherwise provided in
section 148(f) of the Code and the Regulations and rulings thereunder:
(1) The Issuer shall account for all Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of such accounting for at least six years after the final Computation Date. The
Issuer may, however, to the extent permitted by law, commingle Gross Proceeds of the
Bonds with other money of the Issuer, provided that the Issuer separately accounts for
each receipt and expenditure of such Gross Proceeds and the obligations acquired
therewith.
(2) The Issuer shall calculate the Rebate Amount with respect to the Bonds,
not less frequently than each Computation Date, in accordance with rules set forth in
section l 48(f) of the Code and the Regulations and rulings thereunder. The Issuer shall
maintain a copy of such calculations with its official transcript of proceedings relating to
the issuance of the Bonds for at least six years after the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the
Purchasers thereof and the loan of the money represented thereby, and in order to induce
such purchase by measures designed to ensure the excludability of the interest thereon
from the gross income of the owners thereof for federal income tax purposes, pay to the
United States out of its general fund, other appropriate fund, or, if permitted by
applicable Texas statute, regulation or opinion of the Attorney General of the State of
Texas, the Debt Service Fund, the amount that when added to the future vaiue of previous
rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as
defined in Section l.148-3(e)(2) of the Regulations, one hundred percent (100%) of the
Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety
percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall
be made at the times, in the installments, to the place and in the manner as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder, and
shall be accompanied by Form 8038-T or such other forms and information as is or may
be required by Section I 48(f) of the Code and the Regulations and rulings thereunder.
(4) The Issuer shall exercise reasonable diligence to assure that no errors are
made in the calculations required by paragraph (2) and (3), and, if such error is made, to
discover and promptly to correct such error within a reasonable amount of time
thereafter, (and in all events within one hundred eighty (180) days after discovery of the
55954911.3 -32-
error) including payment to the United States of any additional Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section l.148-3(b) of the Regulations.
To the extent authorized by law, when used herein the term "interest" includes all
payments due to the United States of America pursuant to this Subsection. The Issuer shall not
invest Gross Proceeds in amounts and for such period of time such that the amounts due to the
United States of America pursuant to this Section, when aggregated with other interest payable
on the Bonds, shall cause the "net effective interest rate" on the Bonds, to exceed 15% per
annum.
H. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the
earlier of the final stated maturity or final payment of the Bonds enter into any transaction that
reduces the amount required to be paid to the United States pursuant to Subsection (G) of this
Section because such transaction results in a smaller profit or a larger Joss than would have
resulted if the transaction had been at arm's length and had the Yield of the Bonds not been
relevant to either party.
I. Elections. The Issuer hereby directs and authorizes the Mayor, Mayor Pro Tern.
Clerk, Manager, Attorney, or Director of Finance of the Issuer, either or any combination of the
foregoing, to make such elections in the Certificate as to Tax Exemption or similar or other
appropriate certificate, form, or document permitted or required pursuant to the provisions of the
Code or Regulations as they deem necessary or appropriate in connection with the Bonds. Such
elections are deemed made on the Issue Date.
J. Qualified Tax-Exempt Obligations. In accordance with the provisions of Section
265(b)(3) of the Code, the Issuer hereby designates the Bonds to be "qualified tax-exempt
obligations" in that the Bonds are not "private activity bonds" as defined in the Code and the
reasonably anticipated amount of tax-exempt obligations to be issued by the Issuer (including all
subordinate entities of the Issuer) for the calendfir year 2013 will not exceed $10,000,000.
K. Bonds Not Hedge Bonds.
(1) At the time the original bonds refunded by the Bonds were issued, the Issuer
reasonably expected to spend at least 85% of the spendable proceeds of such bonds within three
years after such bonds were issued.
(2) Not more than 50% of the proceeds of the original bonds refunded by the Bonds
were invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of
4 years or more.
L. Qualified Advance Refunding. The Bonds are issued exclusively to refund the
Refunded Obligations, and the Bonds will be issued more than 90 days before the redemption of
the Refunded Obligations. The Issuer represents as follows:
(1) The Bonds are the first advance refunding of the Refunded Obligations, within the
meaning of section 149( d)(3) of the Code.
SS9S4977.3 -33-
EXHIBITB
OFFICERS' PRJCING CERTIFICATE
Re: City of Nederland, Texas
General Refunding Bonds, Series 2013
I. the undersigned Mayor of the City of Nederland, Texas (the "Issuer) do hereby make
and execute this Certificate pursuant to an Ordinance adopted by the Governing Body of the
Issuer on May 13, 2013 (the "Bond Order''), authorizing the issuance of the referenced bonds.
Capitalized terms used in this Certificate shall have the meaning given such terms in the Bond
Order.
I. As authorized by Section 1. I of the Bond Order, I have acted on behalf of the
Issuer in selling the Bonds to the Purchasers, as underwriters named in the [Bond Purchase
Agreement/Investor Letter] authorized and approved pursuant to Section 7.1 of the Bond Order,
for the swn of , with the Bonds having the following designations, terms, and
provisions:
The Bonds shall be known and designated as the Issuer "GENERAL
REFUNDING BONDS, SERIES 2013" and shall be issued in the original aggregate
principal amount of _____ _
Interest on the Bonds shall be payable commencing on _____ __, and
each thereafter.
The Bonds shall mature and become payable on the dates and in the respective principal
amounts and interest rates set forth below, subject to prior redemption as set forth in
subparagraph D below:
Maturity Date
fSentember 1) Princinal Amount Interest Rate(%)
The Bonds are not subject to redemption prior to maturity, at the option of the Issuer
2. Pursuant to Section 1 of the Bond Order, I hereby find and determine that:
559S4971.J
(1) the price to be paid for the Bonds is not be less than 90% of the aggregate
original principal amount of the Bonds plus accrued interest, if any, thereon from their date to
their delivery,
(2) none of the Bonds bear interest at a n interest rate which results in an
initial yield greater than 15% per annum or in excess of the maximum rate allowed by
Chapter 1204, Texas Government Code,
(3) the aggregate principal amount of the Bonds equals an amount sufficient
to provide for the refunding of the maximwn principal amount of the Outstanding Bonds
specified in paragraph 4 below and result in a minimum dollar reduction in aggregate debt
service costs to the Issuer on a present value basis of not less than $ . The
present value savings achieved from issuance of the Bonds is $ and the gross
savings achieved from issuance of the Bonds is$ _____ _
3. [The Refunded Obligations are the obligations so specified in the Bond
Ordinance, without deletion.)
SS9S4911.3
WITNESS MY HAND. this-----------..
[Title], City ofNederland, Texas
SS9S4977.3
[Page Intentionally Left Blank]
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. June 10, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The Invocation and pledge of allegiance were lead by Councilmember Rogers.
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 councilniember so requests, in which event the
item will be removed from the Consent agenda and considered separately:.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED. . .
Ayes: Mayor _Nugent, Council members Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
a. Minutes -May 16, 2013 special meeting and May 20, 2013 regular m~etlng
b. May 2013 Departmental Reports
c. Payments:
• May 2013 monthly bills
• Carroll & Blackman, Inc. -$1,022.67, Phase II MS4 Permit
Implementation Services
• Bruce's General Constructi.on -$166,995.90, Nederland City Hall project
4. REGULAR AGENDA
a. Mayor Nugent presented Emmett Hollier with a proclamation honoring his
dedication to the Nederland community. Mr. Hollier thanked City Council for the
recognition and stated--he works to benefit those who are. in need.
A motion was made by Councilmember Neal and seconded by Councilmember
Rogers to approve a proclamation proclaiming June 10, 2013 as Emmett Hollier
. day in Nederland. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
[[
[
Minutes Continued, June 10, 2013
b. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2013-07, designating the city facility located
at 1400 Boston Avenue as the Homer E. Nagel Public Safety Complex. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
c. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve a lease agreement with the Gramercy Property Trust for the
temporary ~ousing of the Nederland Fire Department. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
d. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve a lease agreement with Mobile Modular for equipment related to
the temporary housing of the Nederland Fire Department. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
e. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve Ordinance No. 2013-10, denying Entergy of Texas' Statement of
Intent modifying its rates schedule. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
f. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Rogers to approve an Agreement with Interface EAP for employee assistance
program services. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
g. Emergency Management
i. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Neal to postpone consideration of a contract extension with Beck
Disaster Recovery, Inc. for debris removal services. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
ii. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Albanese to approve a contract extension with Garner Environmental
Services for emergency response services. MOTION CARRI ED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
h. A motion was made by Councilmember Neal and seconded by Councilmember
Rogers to award a bid for the 2013 Concrete Street Rehabilitation project to
Minutes Continued, June 10, 2013
Bruce's Construction in the amount of $457 ,652.00 for the Base Bid, Alternate
#1, and Alternate #2. MOTION CARRIED.
Ayes: Mayor Nugent, Councllmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
i. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve Change Order No. 1 -2013 Concrete Street Rehabilitation
project reducing the scope of the project by eliminating portions of Alternate #1
(extra work on Helena and only maintaining the work on Avenue E) and reducing
the scope of Alternate #2 to only $15,000 for root barrier which the engineer and
staff will prioritize. The change order will reduce the contract term to 180
calendar days and reducing the contract price by $76,183.50. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin .
S. EXECUTIVE SESSI ON
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
551.071, Consultation with City Attorney and Chapter 551.074, discuss personnel
appointments: City Clerk, Director of Finance, Police Chief, and City Attorney.
6. RECONVENE
The regular meeting was reconvened at 5:45 p.m. by Mayor Nugent.
7. APPOINTMENTS
A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to authorize the following appointments: Gay Ferguson, City Clerk; Cheryl
Dowden, Director of Finance; Darrell Bush, Police Chief; Kent Walston, City Judge (2-
year term); and Jesse Branick, City Attorney. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
8. COMMUNICATION
City Manager's Report:
a. Construction Project Update: Steve Hamilton reported the Water Plant is
up and running nicely. They are still having radio issues and are expecting a
proposal by the end of this week. The drainage district will be upgrading
drainage along 18th Street. City Hall project has a couple of issues but they
have been settled. Brick is scheduled for delivery on June 20th. Windows and
doors have been completed and cabinets are being built. Construction is still
on schedule for completion at the end of August.
Minutes Continued, June 10, 2013
9. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:52 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
ATTEST:
G'aYfergu n, City Cle
City of Nederland, Texas
R. A. Nugen~ M or
City of Nederla d, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II J
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
·v
Darrell Bush Police Chief
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works
\/
George Wheeler Building Official \/
Victoria Klehn Librarian v'"
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director
June 10 2013
Date
RESOLUTION NO. 2013-07
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, DESIGNATING
THE CITY FACILITY LOCATED AT 1400 BOSTON
AVENUE AS THE "HOMER E. NAGEL PUBLIC
SAFETY COMPLEX."
WHEREAS, Mayor Homer E. Nagel's life was one of dedicated and self-less service to
his community. Initially, Mayor Nagel served our country in the United States Army. Then
Mayor Nagel served our community as Mayor for 28 years over three terms, as well as City
Council member for 10 years; and
WHEREAS, Mayor Nagel was an active member of the Nederland community for over
70 years and a Charter member of the Southeast Texas Regional Planning Commission; and
WHEREAS, Mayor Nagel passed away on August 24, 2011 ending a life of remarkable
public service, and the Nederland City Council wishes to recognize Mayor Nagel's service,
contributions to the community, and memory; and
WHEREAS, the City of Nederland is renovating the existing City Hall building (1400
Boston Avenue). for use by the Nederland Police and Fire Departments, which is scheduled to
be completed in August 2014.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
Section.I. Mayor Homer E. Nagel was an exemplary public servant with the highest
level of integrity, who worked tirelessly to serve the citizens of Nederland.
Section II. The City facility located at 1400 Boston Avenue upon completion of its
renovation shall be forever named the "Homer E. Nagel Public Safety
Complex".
PASSED AND APPROVED by the City Council of the City of Nederland, Texas, this
the 10111 day of June 2013.
ATTEST:
~~~.@1JUA=
City of Nederland, Texas
APPROVED AS TO FORM ANO LEGALITY:
,· t;
'
ORDINANCE NO. 2013-10
AN ORDINANCE BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS ("CITY")
DENYING THE STATEMENT OF INTENT OF
ENTERGY TEXAS, INC. FILED ON MAY 13, 2013;
FINDING THAT THE MEETING COMPLIES WITH
THE OPEN MEETINGS ACT; AND DECLARING
AN EFFECTIVE DATE
WHEREAS, on or about May 13, 2013 Entergy Texas, Inc. ("Entergy") filed a
Statement of Intent with the City to modify its rate schedule for interruptible service ("Schedule
IS"); and
WHEREAS, Entergy recommends denial of Entergy's application so that Entergy may
appeal the case to the Public Utility Commission of Texas ("PUC" or "Commission") to
implement a µnifQrm r!lte; and
WHEREAS, the Cit)' has joined with the Steering Committee of Cities and has
intervened in Entergy's proceeding to modify Schedule IS at the Public Utility Commission filed
as Docket No. 41488; and
WHEREAS. the Cities' p!!rticipation in the p.rocee9.ing pending before the Commission
would reduce rate case expenses, would result in a uniform schedule for all customers, and
would not limit or modify in any manner, the right and power of the City under law to regulate
the base rates and services of Entergy; and
WHEREAS, the statutory deadline to act on Entergy's rate increase request is June 17,
2013;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, THAT:
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6~
That the statement and findings set out in the preamble to this Ordinance
are hereby in all things approved and adopted.
The City of Nederland hereby denies the proposed modification to
Schedule IS requested in Entergy's Statement of Intent.
Entergy is hereby Ordered to continue operating under its existing
approved rates and schedules until modified by a regulatory authority.
Nothing contained in this Ordinance shall be construed now or hereafter
as limiting or mo{lifyi_ng, in !filY m1mner. the right and wwer of the City
under law to regulate the base rates and services of ETI.
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.
This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 10™ day cit JUNE, 2013.
/(~~ R.A. NUgt, Mayor
City of Nederland, Texas
ATTEST:
k1.~@1Jl .
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
2
THE LAWTON LAW FIRM, ·P.C.
lUiOO Hill Counay Blvd., Suite R275 • Austin, Tens 78738 • 511/322-0019 • Fax: 855/298-7978
Via E-Mail
Mr. Richard Ferguson
City Attorney -City of Anahuac
13201 Northwest Freeway, Suite 300
Houston, Texas 77040
Mr. Kyle Hayes
City Manager -City of B~umont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Dion Miller
·City Manager -City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Mr. Kenneth Wall
City Attorney -City of Cleveland
Olson & Olson
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Felix Skarpa
Mayor -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. James Black
City Attorney -City of Groves
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
May 14, 2013
Mr. Tyrone Cooper
City Attorney -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Mr. Paul Fukuda
City Attorney -Bridge City
260Rachal
Post Office Box 846
Bridge City, Texas 77611
Mr. David Olson
City A~mey -City of Cleveland
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Mark Winberry
City Attorney -City of Conroe
P.O. Box 3066
Conroe, Texas 77305
Mr. David Douglas
City Manager -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthur, Texas 77643
Ms. Tina Paez
City of Houston Administration & Regulatory
. Affairs Department (ARA)
611Walker,10th Floor
Houston, Texas 77002
Mr. Leonard Schneider
City Attorney -City of Huntsville
2 Riverway, Suite 700
Houston, Texas 77056-1918
Mr. Gary Broz
City Manager -City of Liberty
1829 Sam Houston
Liberty, Texas 77575
Mr. Cary Bovey
Law Office of Cary L. Bovey, PLLC
2251 Double Creek Dr., Suite 204
Round Rock, Texas 78664
Mr. Jesse Branick
City Attorney-City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
Ms. Vicky Rudy
City Manager -City of Oak Ridge North
Oak Ridge North
2'7424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Shawn Oubre
City Manager -City of Orange
803 W. Green Avenue, Room 201
Orange, Texas 77630
Mr. Tommy Gunn
City Attorney -City of Pinehurst
202 S. Border
Orange, Texas 77630
Ms. Melba T. Pourteau
City of Houston Legal Department
P.O. Box 368, Houston, Texas 77001-0368
City Hall Annex, 4th Floor
900 Bagby
Houston, Texas 77001-0368
Mr. Matt Benoit ·
City Manager -City of Huntsville
1212Ave. M
Huntsville, Texas 77340
Mr. Bryan Fowler
City Attorney -City of Montgomery
101 Old Plantersville Road
Montgomery, Texas 77316
Mr. Brad Stafford
City Manager -City of Navasota
202 E. Washington
Navasota, Texas 77868
Mr. Christopher Duque
City Manager -City of Nederland
P.0.Box967
Nederland, Texas 77627
Ms. Clasina Watson
City Secretary -City of Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Rodney Price
City Attorney -City of Pine Forest
City Attorney -City of Rose City
215 W. Freeway
Vidor, Texas 77662
Mr. Joe Parkhurst
City Administrat-0r -City of Pinehurst
202 S. Border
Orange, Texas 77630
Ms. Val Tizeno
City Attorney -City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Pete Steele
City Attorney-City of Port Neches
3120 Central Mall Drive
Port Arthur, Texas 77642
Mr. Greg Smith
City Manager -City of Shenandoah
29955 lli-45 N.
Shenandoah, Texas 773 81
Mr. Tommy Bartosh
City Manager -City of Silsbee
105 South 3rd Street
Silsbee, Texas 77656
Mayor Dorothy Welch
City Attorney Leonard Schneider
City of Splendora
P.O. Box 1087
Splendora, Texas 77372
Mr. Guy N. Goodson
City Attorney -City of Vidor
P.O. Box4915
Beaumont, Texas 77704-4915
Mr. Joe Alford
City Attorney -City of West Orange
105 Market
Orange~ Texas 77630
Mr. Floyd Johnson
City Manager = City of Port Arthur
P.O. Box 1089 .
Port Arthur, Texas 77640
Mr. Andre Wuner
City Manager -City of Port Neches
634AvenueC
Port Neches, Texas 77651
Mr. Harry Wright
City Attorney -City of Silsbee
PO Box 186
Port Neches, Texas 77651
Mr .. Larry Saurage
City Manager -City of Sour Lake
655 W. Barkley St.
Sour Lake, Texas 77659
Mr. Ricky E. Jorgensen
City Manager -City of Vidor
1395 N. Main St
Vidor, Texas 77662-3726
Mayor Roy McDonald
Mayor -City of West Orange
2700 Western Avenue
West Orange, TX 77630
Michael S. Stelly
City of West Orange, Texas
2700 Austin A venue
West Orange, TX. 77630
Re: Entergy' s Proposed Modifications to Schedule IS
Dear Steering Committee of Cities:
Yesterday, Entergy Texas, Inc. ("Entergy" or "Company'') filed an application with each
City to modify the "Experimental Rider to Schedules LIPS and LIPS-TOD for Interruptible
Service" ("Schedule IS"). The proposed modifications are the result of Entergy's anticipated
transition int.o MISO and should not affect any customers except those large industrial power
service customers talcing service under Schedule IS.
Entergy's proposal will not affect the residential or small commercial rates or schedules.
The Schedule IS is only applicable to the Large Industrial Power Service customers and the
Large Industrial Power Service Time of Day customers. Entergy's witnesses t~stify that the
proposed modifications to the Schedule IS are necessary to comport with the rules of the
Midwest Independent System Operator ("MISO").
Entergy has recommended that the Cities deny Entergy's request to modify Schedule IS
so that Entergy may appeal all the Cities decisions to the Public Utility Commission where a
uniform Schedule may be approved for all customers within Entergy' s Service territory. We also
recommend that the Cities deny Entergy's request Each City, as a member of the Steering
Comn:iittee of Cities, has intervened in the above referenced case. Because of the very limited
nature of the issues to be addressed in this, processing the case before the Public utility
Commission should serve to reduce rate case expenses and should not limit or modify in any
manner, the right .and power of the City under law to regulate the base rates and services of
Entergy.
Atta~hed is a proposed ordinance denying Entergy's requested change to Schedule
IS. Entergy's request must be denied on or before June 17, 2013, or else it is deemed
approved as a matter of law.
If there are any questions or concerns, please do not hesitate to call.
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. June 24, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Mayor Pro Tern
Albanese to approve the ·Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -June 10, 2013 regular meeting
b. May 2013 Departmental Reports
c. Tax Assessor Collector Report -May 2013
d. Payments:
• Walker Partners -$4,310.00, 2010 Water System Improvements project
• LaBiche Architectural Group, Inc. -$3,397.79, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$36,400.00, Homer E. Nagel Public
Safety Complex project
4 . REGULAR AGENDA
a. Appointments:
i. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Austin to reappoint Billy Wayne Doornbos to the Firefighters' Civil
Service Commission . MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Ii. A motion was made by Councilmember Rogers and seconded by
Councilmember Nea l to reappoint Guy Barlow to the Zoning Board and Appeals
and Board of Appeals. MOTION CARRIED.
Minut es Continued, lune 10, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iii. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Neal to reappoint Boyd Meir, Steve Gentile, Ron Minaldi, and
Danny Delahoussaye to the Construction Board of Appeals. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve Ordinance No. 2013-11, amending the FY 2012-13 budget.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve the extension of a Memorandum of Understanding with the
Texas Engineering Extension Service for participation with Texas Task Force One.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Ausitn, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve a Cooperative Purchasing Agreement with Science Applications
International Corporation for all hazards preparedness, planning, consulting, and
recovery services (debris removal services). MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. Mr. Waleed Khan, property owner of 145 -147 Atlanta Avenue, requested a t ime
period of 8 weeks to perform a scope of work to bring the structure into code
compliance. The work includes repairing rotting/deteriorating wood; leveling;
replacing floor joists, beams, sub flooring, and repairing holes in interior and
exterior walls.
George Wheeler, Building Official, reported that to be in code compliance the
windows (energy rated) would also need to be installed.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve an 8-week work extension for the requested scope of work
and installation of windows to be completed at property located at 145 -147
Atlanta Avenue. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. Mr. Waleed Khan requested a time extension for work to be done on a structure
located at 2423 Nederland Avenue in order to bring ·into code compliance. He
reported his contractor is not available to work until mid to late August. Mr.
Khan advised his financial commitment expired due to his being out of the
country for the past year and he would need to re-apply to the financial
institution.
Minutes Continued, lune 10, 2013
A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Rogers to postpone action of property located at 2423 Nederland Avenue for 2
weeks to give Mr. Waleed Kahn time to submit a letter from his contract and to
secure financing for the work needed to bring the structure up to code. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve Ordinance No. 2013-12, authorizing the issuance of City of
Nederland, Texas, Tax and Revenue Certificates of Obligation, Series 2013.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:23 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.074, discuss personnel -City Manager. Chapter 551.071, Consultation with City
Attorney was postponed.
6. RECONVENE
The regular m·eeting was reconvened at 6:05 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
7. COMMUNICATION
City Manager's Report:
a. 4th of July event -Entertainment will be begin at 7:00 p.m. and fireworks
will be at 9:00 p.m.
9. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 6:12 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None. ,
R. . Nugent, Mayor
City of Nederland, Te
Minutes Continued, June 10, 2013
ATTEST:
G~~
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
/
R. A. Nugent Mayor \/
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II \/
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV \/
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief \/
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
June 24 2013
Date
ORDINANCE NO. 2013-11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012"
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND:
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year 2012-2013 City Budget; and,
WHEREAS, the City Council deems it necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment "A" attached hereto; and,
WHEREAS, the 2012-2013 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council
Contingency Account for purposes approved by the City Council; and,
NOW, "THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
THAT the budget for the fiscal year 2012-2013 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publicat ion, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 24th DAY OF JUNE, 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY: \
~--------~---------------------------------------
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
01-2100-6110
01-2200-6110
01-3100-6110
01-9000-6336
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2012-2013
June 24, 2013
Various
General Fund (01)
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Salaries & Waqes 1,514,076 4,486
Salaries & Waqes 838,074 3,645
Salaries & Waqes 368,788 6,869
Retiree Accrued Compensation 15,000 (15,000'
---
JUSTIFICATION
PROPOSED
BUDGET
1,518,562
841,719
375,657
-
-
The retiree accrued compensation line-item was established to fund the payment of accrued leave when an employee retired.
The transfer of funds covers retirements in the Police, Fire, and Streets budgets that have occurred in the past few months.
Dept. Head Signature_:'--------------------Date: -------
Finance Director: Date: -------
Date Approved: Date Posted: -------
Page ____ of ___ _
55955355.6
Ordinance Number~Ol3-/~
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF
CITY OF NEDERLAND, TEXAS,
TAX.AND REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2013;
AND LEVYING AN ADV ALOREM TAX;
PLEDGING CERTAIN NET REVENUES; AUTHORIZING
THE EXECUTION OF A TRANSFER AND
PA YING AGENCY AGREEMENT;
AND OTHER MA TIERS IN CONNECTION THEREWITH
CITY OF NEDERLAND, TEXAS
ADOPTED June 24, 2013
SECTION 1.1
SECTION 1.2
SECTION 1.3
SECTION 1.4
SECTION 1.5
SECTION 1.6
SECTION 1.7
SECTION 1.8
TABLE OF CONTENTS
ARTICLE ONE
THE CERTIFICATES
Authorization and Terms; Purpose .................................................................. 2
Redemption ............................................. : ........................................................ 3
Execution, Registration, Delivery, and Dating ................................................ 5
Registration, Transfer, and Exchan ge .............................................................. 6
Mutilated, Destroyed, Lost, and Stolen Certificates ........................................ 7
Persons Deemed Owners ................................................................................. 7
Cancellation ..................................................................................................... 8
Book-Entry Only .............................................................................................. 8
ARTICLE TWO
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION2.1
SECTION2.2
SECTION2.3
SECTION2.4
SECTION2.5
SECTION2.6
SECTION 2.7
SECTION2.8
SECTION2.9
SECTION 2.10
SECTION 3.1
SECTION3.2
SECTION 3.3
SECTION 3.4
SECTION 3.5
SECTION 3.6
SECTION 3.7
SECTION 4.1
SECTION 4.2
SECTION 4.3
SECTION 4.4
SECTION 4.5
SECTION 4.6
55955355.6
Definitions ...................................................................................................... 10
Notices ........................................................................................................... 14
Effect of Headings and Table of Contents; Recitals ...................................... 14
Ordinance a Contract; Amendments .............................................................. 14
Benefits of Ordinance .................................................................................... 15
Repealer ......................................................................................................... 15
Governing Law .............................................................................................. 15
Severability .................................................................................................... 16
Public Meeting ............................................................................................... 16
Authority of Officers ...................................................................................... 16
ARTICLE THREE
FORMS
Forms Generally ............................................................................................. 17
Form of Definitive Certificate ....................................................................... 18
Form of Registration Certificate of Comptroller of Public Accounts ............ 25
Form of Certificate of Paying Agent ............................................................. 25
Form of Assignment ...................................................................................... 26
Form of Initial Certificate .............................................................................. 26
Insurance Legend ........................................................................................... 27
ARTICLE FOUR
TAXES, REVENUES, AND FUNDS; INVESTMENTS
Certificate Fund ............................................................................................. 28
Deposits to Certificate Fund; Excess Certificate Proceeds ............................ 28
System Account ............................................................................................. 28
Construction Accounts ................................................................................... 29
Investments and Security For Funds .............................................................. 29
Tax Levy ........................................................................................................ 30
TABLE OF CONTENTS
SECTION 4.7 Net Revenues ................................................................................................. 30
SECTION 4.8 Issuance of Additional Obligations ................................................................ 31
SECTION 5.1
SECTION 5.2
SECTION 5.3
SECTION 5.4
SECTION 5.5
SECTION 5.6
SECTION 5.7
SECTiON 6.1
SECTION7.1
SECTION 7.2
SECTION 7.3
SECTION 8.1
SECTION 8.2
SECTION 8.3
SECTION 8.4
55955355.6
ARTlCLE FIVE
COVENANTS
To Maintain Agency ...................................................................................... 32
To Maintain and Operate the System and Insure Property ............................ 32
Rates and Charges .......................................................................................... 33
Records and Accounts, Annual Audit.. .......................................................... 33
Special Covenants .......................................................................................... 33
Covenants to Maintain Tax-Exempt Status ................................................... 34
Remedies in Event of Default. ....................................................................... 36
ARTICLE SIX
DEFEASANCE
Discharge of Obligations ............................................................................... 38
ARTICLE SEVEN
SALE
Sale of the Certificates ................................................................................... 40
Payment of Costs of Issuance; Engagement of Bond Counsel ..................... .-40
Official Statement .......................................................................................... 41
ARTICLE EIGHT
CONTINUING DISCLOSURE UNDERT AK.ING
Definitions ...................................................................................................... 42
Updated Information and Data ....................................................................... 42
Material Event Notices .................................................................................. 43
Limitations, Disclaimers, and Amendments .................................................. 4 3
ii
AN ORDINANCE
AUTHORIZING THE ISSUANCE OF
CITY OF NEDERLAND, TEXAS,
TAX AND REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2013;
AND LEVYING AN ADV ALOREM TAX;
PLEDGING CERTAIN NET REVENUES; AUTHORIZING
THE EXECUTION OF A TRANSFER AND
PA YING AGENCY AGREEMENT;
AND OTHER MA TIERS IN CONNECTION THEREWITH
RECITALS
1. The City Council (the "Governing Body") of the City of Nederland, Texas (the
"Issuer"), a home rule city, has given notice of its intent to issue certificates of obligation (the
"Certificates") in the maximum principal amount of $3,000,000 for the purpose of paying
contractual obligations of the Issuer to be incurred for construction of public works, and
purchase of materials, supplies, equipment, machinery, buildings, land, and rights-of-way for
authorized needs and purposes, to wit: (1) for the renovation and equipping of a public safety &
emergency operations center, (2) renovation and equipping of the public works building (housing
the City Repair Shop, administrative offices, and storage space), including the renovation and
expansion of City garage, and (3) to pay for professional services related thereto and the issuance
costs of the Certificates. The notice was published once a week for two consecutive weeks in a
newspaper of general circulation in the Issuer, the first publication being before and not less than
30 days prior to the tentative date stated in the notice for the passage of this ordinance.
2. No petition signed by at least 5% of the qualified electors of the Issuer protesting
the issuance of the Certificates has been presented to or filed with the City Clerk of the Issuer
prior to the date set in such notice for passage of this Ordinance, nor has any such petition been
filed as of this date.
3. The Governing Body has found and determined that $2,600,000 in aggregate
principal amount of the Certificates described in such notice should now be issued .and sold, and
has adopted this ordinance authorizing issuance of such Certificates.
4. It is in the Issuer's best interest to issue the certificate of obligations described
herein.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS, THAT:
55955355.6
SECTION 1.1
ARTICLE ONE
THE CERTIFICATES
Authorization and Terms; Purpose.
A. Authorization, Title, Principal Amount, and Purpose. The Certificates are hereby
authorized to be issued in the aggregate principal amount of $2,600,000 and are entitled the
Issuer's "TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2013", to pay
contractual obligations incurred to make permanent public improvements and for other public
purposes all as stated in Recital 1 hereto, pursuant to the authority conferred by and in
conformity with the laws of the State of Texas, particularly Texas Government Code section
1502.052, and the Certificate of Obligation Act of 1971, Texas Local Government Code sections
271.041 through 271.065, each as now in effect. The Certificates shall have a Dated Date of July
1, 2013 (which is the "Dated Date" of the Certificates and to be inserted below "Dated Date"
immediately below the title thereof).
B. Denominations, Maturities, Rates of Interest. The Stated Maturities of the
Certificates are September 1 of the years and the aggregate principal amounts set forth below in
this Subsection, and interest on the Certifi cates of each Stated Maturity accrues from the Dated
Date or the most recent Interest Payment Date to which interest has been paid or duly provided
for, until such Certificates are paid or due provision therefor is made at or after the Maturity
thereof, at the per annum rates set forth opposite such Stated Maturity below, calculated on the
basis of a 360-day year of twelve 30-day months and payable semiannually on each March 1 and
September 1 commencing March 1, 2014:
Year of Principal Interest
Stated Maturity Amount($) Rate(%)
2014 80,000 3.75
2015 90,000 3.75
2016 95,000 3.75
2017 100,000 3.75
2018 105,000 3.75
20 19 105,000 3.75
2020 110,000 3.75
2021 115,000 3.75
2022 120,000 3.75
2025 390,000 4.00
2027 285,000 4.00
2029 305,000 4.25
2031 335,000 4.25
2033 365,000 4.50
55955355.6 2
C. Payment. The principal and Redemption Price of the Certificates is payable upon
surrender, and the interest on the Certificates is payable, at the corporate trust office of the
Paying Agent in Austin, Texas or at such other city as designated by the Issuer upon Notice to
the Registered Owners. Such place is herein referred to as the "Place of Paymenf'.
The Issuer shall transfer the principal and Redemption Price of the Certificates to the
Paying Agent on or prior to the date it is due.
If the specified date for any payment of principal (or Redemption Price) of or interest on
the Certificates is a Saturday, Sunday, or legal holiday or equivalent (other than a moratorium)
for banking institutions generally in the city of the Place of Payment, such payment may be made
on the next succeeding day which is not one of the foregoing days without additional interest and
with the same force and effect as if made on the specified date for such payment.
D. Payment of Interest; Interest Rights Preserved. Interest on any Certificate is
payable to the Registered Owner thereof as of the Record Date and is payable (i) by check sent
by United States Mail, first-class postage prepaid, by the Paying Agent, to the address of the
Registered Owner appearing in the Security Register, or (ii) by such other method acceptable to
the Paying Agent requested in writing by the Registered Owner at the Registered Owner's risk
and expense.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days
thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent, if and when funds for the payment of such interest have been
received from the Issuer. Notice of the Special Record Date and of the scheduled payment date
of the past due interest ("Special Payment Date'', which shall be 15 days after the Special Record
Date) shall be sent at least five business days prior to the Special Record Date by United_ States
mail, first class postage prepaid, to the address of each Registered Owner of a Certificate
appearing on the registration books of the Paying Agent at the close of business on the last
business day next preceding the date of mailing of such notice. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid,
such Defaulted Interest must be paid to the Persons in whose names the Certificates (or their
respective Predecessor Certificates) are registered on such Special Record Date.
E. Legal Tender. The principal or Redemption Price of and interest on the
Certificates is payable in any coin or currency of the United States of America which at the time
of payment is legal tender for the payment of public and private debts, without exchange or
collection charges to the Registered Owner.
SECTION 1.2 Redemption.
A. Optional and Mandatory Redemption. The Certificates are subject to redemption
at the option of the Issuer and by mandatory redemption prior to Stated Maturity on the
Redemption Dates and Redemption Prices as provided in the Form of Certificate in Section 3.2.
55955355.6 3
B. Exercise of Redemption Option. At least 45. days prior to a date of redemption
(the "Redemption Date'') (unless a shorter notification period shall be satisfactory to the Paying
Agent), the Issuer shall notify the Paying Agent of its decision to exercise the right to optionally
redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the
Redemption Date. The decision of the Issuer to exercise the right to redeem Certificate shall be
entered in the minutes of the Governing Body.
C. Selection of Certificates for Redemption. If Jess than all Outstanding Certificates
of the same Stated Maturity are to be redeemed on a Redemption Date, the Paying Agent shall
select at random and by Jot the Certificates to be redeemed, provided that if Jess than the entire
principal amount of a Certificate is to be redeemed, the Paying Agent shall treat such Certificate
then subject to redemption as representing the number of Certificates Outstanding which is
obtained by dividing the principal amount of such Certificate by $5,000.
D. Notice of Redemption. Not less than 30 days prior to a Redemption Date, the
Issuer shall cause a notice of redemption to be sent by United States Mail, first-class postage
prepaid, in the name of the Issuer and at the Issuer's expense, by the Paying Agent to each
Holder of a Certificate to be redeemed in whole or in part at the address of the Holder appearing
on the Security Register at the close of business on the business day next preceding the date of
mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to
have been duly given irrespective of whether received by the Holder. All notices of redemption
shall state:
(1) the Redemption Date,
(2) the redemption price (the "Redemption Price"),
(3) the principal amount and identification (by Issuer ·and Certificate name,
CUSIP number, Stated Maturity, interest rate, Dated Date, and, in the case of partial
redemption, the Certificate numbers and respective principal amounts) of Certificates to
be redeemed,
(4) that on the Redemption Date the Redemption Price of each of the
Certificates to be redeemed will become due and payable and that interest thereon shall
cease to accrue from and after said date, and
(5) that the Certificates to be redeemed are to be surrendered for payment of
the Redemption Price at the Place of Payment, and the address of such Place of Payment.
E. Limitation on Transfer/Exchange of Certificates. Neither the Issuer nor the
Paying Agent is required to transfer or exchange any Certificates selected for redemption within
45 days of the Redemption Date, provided however, such limitation shall not be applicable to an
exchange by the Holder of the unredeemed balance of a Certificate which is subject to partial
redemption.
F. Payment of the Redemption Price. If a Certificate is subject by its terms to
redemption and has been called for redemption and notice of redemption thereof has been duly
55955355.6 4
given as hereinabove provided; such Certificate (or the principal amount thereof to be redeemed)
so called for redemption shall become due and payable, and if money sufficient for the payment
of such Certificates (or of the principal amount thereof to be redeemed) at the then applicable
Redemption Price is held for the purpose of such payment by the Paying Agent, then on the
Redemption Date, interest on the Certificate (or the principal amount thereof to be redeemed)
called for redemption shall cease to accrue and such Certificates shall no longer be deemed
Outstanding hereunder.
If any Certificate called for redemption shall not be so paid upon surrender thereof for
redemption, the same shall continue to bear interest from the Redemption Date therefore at the
rate borne by such Certificates.
SECTION 1.3 Execution, Registration, Delivery, and Dating.
The Mayor of the Issuer shall execute the Certificates on behalf of the Issuer and such
signature shall be attested by the City Clerk of the Issuer. The signature of either of said officers
on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile
signatures of individuals who were at the time the proper officers of the Issuer bind the Issuer,
notwithstanding that such individuals or either of them cease to hold such offices prior to the
certification and delivery of such Certificates.
The Mayor of the Issuer is authorized and directed to execute and the City Clerk of the
Issuer to attest the Initial Certificates in the name of Cede & Co. The Mayor of the Issuer is
further authorized and directed to submit the Initial Certificates, together with the record of the
proceedings authorizing the issuance thereof and any and all other necessary orders, certificates,
and records, to the Attorney General of Texas for approval. After the Attorney General has
approved such Certificates, the Mayor of the Issuer shall cause such Certificates to be delivered
to the Comptroller of Public Accounts of the State of Texas for registration. If requested by the
Attorney General or its representatives, or if otherwise deemed necessary to properly evidence
the intent of the Issuer in the adoption of this Ordinance, the Mayor or Mayor pro tern of the
Issuer may make such ministerial changes in the written text of this Ordinance as such officer
determines are consistent with the intent and purposes of this Ordinance, which determination
shall be final. Upon registration of the Certificates, the Comptroller is authorized and directed to
deliver the Certificates in accordance with instructions of the Mayor of the Issuer. At any time
thereafter the Issuer may deliver such Certificates to the Paying Agent together with definitive
Certificates to be issued in exchange therefor, and the Paying Agent is directed, within not more
than five business days following receipt of instructions from the payee named therein
designating the Persons, Stated Maturities, and denominations to and in which such Certificates
are to be transferred, register and deliver such definitive Certificates as provided in such
instructions. The officers or acting offic.ers of the Governing Body are authorized to execute and
deliver on behalf of the Governing Body such certificates and instruments as may be necessary
to accomplish or in furtherance of the delivery of the Certificates to and payment therefor by the
Purchasers.
All Certificates registered and delivered by the Paying Agent hereunder are to be dated
by the Paying Agent the date of their registration.
55955355.6 5
No Certificate is entitled to any right or benefit under this Ordinance, or is valid or
obligatory for any purpose, unless there appears on such Certificate either a certificate of
registration substantially in the form provided in Section 3.3, executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a
certificate of registration substantially in the form provided in Section 3.4, executed by the
Paying Agent by manual signature, and either such certificate upon any Certificate is conclusive
evidence, and the only evidence, that such Certificate has been duly certified or registered and
delivered.
SECTION 1.4 Registration, Transfer, and Exchange.
The Issuer shall cause to be kept at the Place of Payment a register (herein referred to as
the "Security Register") in which, subject to such reasonable regulations as the Issuer or the
Paying Agent may prescribe, the Paying Agent shall provide for the registration of the
Certificates and of transfers of the Certificates as herein provided.
Upon surrender for transfer of any Certificate at the Place of Payment, the Issuer shall
execute, and the Paying Agent shall register and deliver, in the name of the designated transferee
or transferees, one or more new Certificates of the same Stated Maturity, of any authorized
denominations, and of a like aggregate principal amount. New Certificates registered, and
delivered in an exchange or transfer will be delivered by the Paying Agent at the Place of
Payment or sent by United States mail at the Registered Owner's written request, risk, and
expense.
At the option of the Registered Owner, Certificates may be exchanged for other
Certificates of the same Stated Maturity, of any authorized denominations, and of like aggregate
principal amount, upon surrender of the Certificates to be exchanged at the Place of Payment.
Whenever any Certificates are so surrendered for exchange, the Issuer shall execute, and the
Paying Agent shall register and deliver, the Certificates which the Registered Owner of
Certificates making the exchange is entitled to receive.
All Certificates issued in any transfer or exchange of Certificates shall be delivered to the
Registered Owners at the principal corporate trust office of the Paying Agent or sent by United
States Mail, first class, postage prepaid to the Registered Owners, and, upon the registration and
delivery thereof, the same shall be the valid obligations of the Issuer, evidencing the same
obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates
surrendered in such transfer or exchange.
Every Certificate presented or surrendered for transfer or exchange must be duly
endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Paying Agent duly executed, by the Registered Owner thereof or his attorney duly authorized in
writing.
No service charge may be made to the Registered Owner for any registration, transfer, or
exchange of Certificates, but the Issuer or the Paying Agent may require payment of a sum
. 55955355.6 6
sufficient to cover any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Certificates.
Neither the Issuer nor the Paying Agent is required (I) to transfer or exchange any
Certificate during a period beginning 45 days prior to a Redemption Date hereunder and ending
at the close of business on the day of mailing of a notice of redemption or (2) thereafter to
transfer or exchange in whole or in part any Certificate so selected for redemption.
SECTION 1.5 Mutilated, Destroyed, Lost, and Stolen Certificates.
If (1) any mutilated Certificate is surrendered to the Paying Agent, or the Issuer and the
Paying Agent receive evidence to their satisfaction of the destruction, loss, or theft of any
Certificate, and (2) there is delivered to the Issuer and the Paying Agent such security or
indemnity as they require to save each of them harmless, then, in the absence of notice to the
Issuer or the Paying Agent that such Certificate has been acquired by a bona fide purchaser, the
Issuer shall execute and upon its request the Paying Agent shall register and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the
same Stated Maturity, and of like tenor and principal amount, bearing a number not
contemporaneously outstandin g.
In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to
become due and pay~ble, the Issuer in its discretion may pay such Certificate instead of issuing a
new Certificate.
Upon the issuance of any new Certificate under this Section, the Issuer or the Paying
Agent may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses connected therewith.
Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed,
lost, or stolen Certificate constitutes an original additional contractual obligation of the Issuer,
whether or not the mutilated, destroyed, lost, or stolen Certificate is at any time enforceable by
anyone, and the new Certificate is entitled to all the benefits of this Ordinance equally and
ratably with all other Outstanding Certificates.
The provisions of this Section are exclusive and preclude (to the extent lawful) all other
rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or
stolen Certificates.
SECTION 1.6 Persons Deemed Owners.
The Issuer and the Paying Agent, and any agent of either, may treat the Registered Owner
as the owner of a Certificate for purposes of receiving payment of principal and Redemption
Price of and (subject to Section 1.1) interest on the Certificate and for all other purposes
whatsoever, wheth er or not the Certificate is due or overdue, and neither the Issuer nor the
Paying Agent, or any agent of either, is affected by notice to the contrary. All payments made to
or duly provi ded for the Bondholder in accordance with this Ordinance will be valid and
55955355 .6 7
effectual and will discharge the liability of the Issuer to the extent of the sums paid in or duly ·
provided for.
SECTION 1.7 Cancellation.
All Certificates surrendered for payment, redemption, transfer, exchange, or replacement,
if surrendered to the Paying Agent, are to be promptly canceled by it and, if surrendered to the
Issuer, are to be delivered to the Paying Agent and, if not already canceled, are to promptly be
canceled by the Paying Agent. The Issuer may at any time deliver to the Paying Agent for
cancellation any Certificates previously certified and delivered which the Issuer acquires in any
manner whatsoever, and all Certificates so delivered are to be promptly canceled by the Paying
Agent. No Certificate may be certified in lieu of or in exchange for any Certificate canceled as
provided in this Section, except as expressly provided by this Ordinance. All canceled
Certificates held by the Paying Agent are to be disposed of in accordance with the standard
document retention policies of the Issuer.
SECTION 1.8 Book-Entry Only.
Notwithstanding the provisions contained in · Sections 1.3, 1.4 and 1.5 relating to the.
payment, redemption and transfer/exchange of the Certificates, the Issuer hereby approves and
authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system
provided by The Depository Trust Company ("DTC''), a limited purpose trust company
organized under the laws of the State of New York, in accordance with DTC's requirements and
procedures, and authorizes the Issuer and the Paying Agent to take such as actions as are
necessary to qualify the Certificates with DTC and to deliver the Certificates through DTC.
Pursuant to the rules and procedures of DTC now in effect, the Certificates shall be
deposited with DTC (or with the Paying Agent on behalf of DTC) who shall hold said .
Certificates for its participants (the "DTC Participants"). While the Certificates are so held, the
Registered Owner of the Certificates on the Security Register for all purposes, including payment
and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each
actual purchaser or owner of each Certificate (the "Beneficial Owners'') being recorded in the
records ofDTC and DTC Participants.
In the event DTC determines to discontinue serving as securities depository for the
Certificates or otherwise ceases to provide book-entry clearance and settlement of securities
transactions in general or the Issuer determines that DTC is incapable of properly discharging its
duties as securities depository for the Certificates, the Issuer covenants and agrees with the
Registered Owners of the Certificates to cause Certificates to be printed in definitive form and
provide for the certificated certificates to be issued and delivered to DTC Participants and
Beneficial Owners, as the case may be. Thereafter, the Certificates in definitive form shall be
assigned, transferred and exchanged on the Security Register maintained by the Paying Agent
and payment of such Certificates shall be made in accordance with the provisions of Sections
1.3, 1.4 and 1.5.
55955355.6 8
SECTION 2.1
ARTICLE TWO
DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION
Definitions.
For all purposes of this Ordinance, except as otherwise expressly provided or unless the
context otherwise requires:
(1) The terms defined in this Section have the meanings assigned to them in
this Section.
(2) All terms defined herein include the plural as well as the singular.
(3) All references in this Ordinance to designated "Articles", "Sections",
"Exhibits", and other subdivisions are to the designated Articles, Sections, Exhibits, and
other subdivisions of this Ordinance as originally adopted.
( 4) The words "herein", "hereof', and "hereunder" and other words.of similar
import refer to this Ordinance as a whole and not to any particular Article, Section,
Exhibit, or other subdivision.
"Certificate Fund" means the special fund of the Issuer created and established by the
provisions of Section 4.1.
"Certificates" means any obligation of the Issuer authorized to be issued by Article One,
whether initially delivered or issued in exchange for or upon transfer or in lieu of any
Predecessor Certificate.
"Code" means the Internal Revenue Code of 1986, as amended by any amendments
thereto enacted prior to the Issue Date.
"Collection Date" means, for any year, the date that annual ad valorem taxes levied by
the Issuer in that year become delinquent.
"Computation Date " has the meaning set forth in section 1.148-1 (b) of the Regulations.
"Debt Service Requirement" has the meaning stated in Section 4.6.
"Fiscal Year'' means the annual financial accounting period for the Issuer as established
by the Issuer on or prior to the date of this Ordinance; provided, however, the Governing Body
may change such annual financial accounting period to end on another date if such change is
found and determined to be necessary for accounting purposes or is required by applicable law.
"Governing Body" means the City Council of the Issuer.
55955355.6 9
"Governmental Obligations" means (1) direct obligations of, or obligations the timely
payment of the principal of and interest on which are fully and unconditionally guaranteed by,
the United States of America, or (2) obligations authorized under Texas law from time to time
for discharge and final payment of political or governmental obligations which, at the time of
deposit have been assigned ratings in the highest rating category of eith er Moody's Investors
Service or Standard & Poor's Corporation, or any successor to the bond operations of either of
such corporations, but in the case of both Clauses ( 1) and (2) only if such obligations may not be
called for redemption prior to maturity.
"Gross Proceeds" means any proceeds as defined in section 1.148-1 (b) of the
Regulations, and any replacement proceeds as defined in section 1.148-1 ( c) of the Regulations,
of the Certificates.
"Gross Revenues" for any period means all revenue during such period in respect or on
account of the operation or ownership of the System, excluding refundable deposits, restricted
gifts, refunds for amounts advanced in aid of construction, and grants in aid of construction, but
including earnings and income derived from the investment or deposit of money in any special
fund or account (other than earnings on the Certificate Fund) created and established for the
payment or security of the Certificates.
"Interest Payment Date" means a date specified in the Certificates as a fixed date on
which an installment of interest thereon is due and payable.
"Issue Date" means the date on which Certificates are first registered and delivered to the
Purchasers in exchange for the purchase price therefor.
"Issuer" has the meaning stated in the Recitals.
"Investment" has the meaning" set forth in Section 1.148-1 (b) of the Regulations.
"Maintenance and Operating Expenses" means all current expenses of operating and
maintaining the System not paid from the proceeds of the Certificates, including the cost of all
salaries, labor, materials, interest, repairs, and extensions necessary to provide efficient service,
and each proper item of expense, but only if, in the case of repairs and extensions, they are, in
the judgment of the Governing Body, necessary to keep the System in operation and render
adequate service to the Issuer and its residents, or respond to a physical accident or condition that
would otherwise impair the Certificates or Prior Obligations or Parity Obligations.
"Maturity'' when used with respect to any Certificate means the date on which the
principal of such Certificate becomes due and payable as therein provided, whether at the Stated
Maturity, by call for redemption, or otherwise.
"Net Revenues" for any period means the Gross Revenues less the Maintenance and
Operating Expenses.
55955355.6 10
'.'Nonpurpose Investmenf' means any investment property, as defined in section 148(b) of
the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to
carry out the governmental purposes of the Certificates.
"Ordinance" means this Ordinance as finally passed and adopted by the Governing Body
or as it may from time to time be supplemented, modified, or amended in accordance with the
provisions hereof.
"Outstanding" when used with respect to Certificates means, as of the date of
determination, all Certificates theretofore issued and delivered under this Ordinance, except,
without duplication:
(1) Canceled Certificates: Certificates theretofore canceled by the Paying
Agent or delivered to the Paying Agent for cancellation;
(2) Gross Cash Defeasance: Certificates for whose payment or redemption
money in the necessary amount has been theretofore deposited with the Paying Agent in
trust for the Registered Owner of such Certificates, provided that, if such Certificates are
to be redeemed, notice of such redemption has been duly given pursuant to this
Ordinance, irrevocably provided for to the satisfaction of the Paying Agent, or waived;
(3) Replaced Certificates: Certificates in exchange for or in lieu of which
other Certificates have been registered and delivered pursuant to this Ordinance;
( 4) Paid Missing Certificates: Certificates alleged to have been destroyed,
lost, or stolen which have been paid as provided in Section 1.5; and
(5) Net Cash Defeasance : Certificates for the payment of the principal (or
Redemption Price) of and interest on which money or Governmental Obligations or both
are held by the Paying Agent or other bank or trust company and with the effect specified
in Section 6.1 ;
provided, however, that in determining whether the Registered Owners of the requisite principal
amount of Certificates Outstanding have given any request, demand, authorization, direction,
notice, consent, or waiver hereunder, Certificates owned by the Issuer or any other obliger upon
the Certificates are disregarded and deemed not Outstanding, except that, in determining whether
the Paying Agent is protected in relying upon any such request, demand, authorization, direction,
notice, consent, or waiver, only Certificates which the Paying Agent knows to be so owned are
required to be so disregarded.
"Parity Obligations" means the obligations of the Issuer now or hereafter issued with a
lien on Net Revenues on a parity with the lien on Net Revenues granted the Certificates.
"Paying Agenf' means the corporation named as the "Paying Agent" herein until a
successor Paying Agent becomes such pursuant to the applicable provisions of this Ordinance,
and thereafter "Paying Agent" means such successor Paying Agent.
55955355.6 11
"Person" means any individual, corporation, partnership, joint venture, association, joint-
stock company, trust, unincorporated organization, or government or any agency or political
subdivision thereof.
"Place of Payment' means a corporate trust office of the Paying Agent in the State of
Texas, as established in Section 1.1.
"Predecessor Certificates" of any particular Certificate means every previous Certificate
evidencing all or a portion of the same debt as that evidenced by such particular Certificate, and,
for purposes of this definition, any Certificate registered and delivered under Section 1.5 in lieu
of a mutilated, lost, destroyed, or stolen Certificate is deemed to evidence the same debt as the
mutilated, lost, destroyed, or stolen Certificate.
"Prior Obligations" means the obligations of the Issuer so defined in Section 4.7.
"Purchaser" means the initial purchaser or purchasers of the Certificates named in
Section 7.1 of this Ordinance.
"Rebate Amow:zt" has the meaning set forth in section 1.148-1 (b) of the Regulations.
"Redemption Date" means the date fixed for redemption of a Certificate pursuant to the
terms of this Ordinance.
"Redemption Price" means the price specified in the Form of Certificate in Section 3.2 as
the price at which a Certificate may be redeemed pursuant to the terms of the Ordinance.
"Registered Owner" mean the registered owner, whose name appears in the Security
Register, for any Certificate.
"Regular Record Date" for the interest payable on any Interest Payment Date means the
close of business on the 15th day (whether or not a business day) of the calendar month next
preceding such Interest Payment Date.
"Regulations" means any temporary or final Income Tax Regulations issued pursuant to
sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954,
which are applicable to the Certificates. Any reference to any specific Regulation shall also
mean, as appropriate, any temporary or final Income Tax Regulation designed to supplement,
amend or replace the specific Regulation referenced.
"Security Register" has the meaning stated in Section 1.4.
"Stated Maturity" when used with respect to any Certificate means the date specified in
such Certificate as the fixed date on which the principal of such Certificate is due and payable.
"Subordinate Lien Obligations" means any bonds, notes, warrants, certificates of
obligation, or any similar obligations hereafter issued by the Issuer that are payable, in whole or
in part, from and equally and ratably secured by a lien on and pledge of the Net Revenues, such
55955355.6 12
pledge being subordinate and inferior to the lien on and pledge of Net Revenues to payment of
the Certificates.
"System" means all of the Issuer's waterworks and sewer system, together with all future
extensions, improvements, and additions thereto and replacements thereof: excluding from the
foregoing, however, to the extent now or hereafter authorized or permitted by law, facilities of
any kind which are declared by the Governing Body, prior to the acquisition or construction
thereof by the Issuer, not to be a part of the System and which are acquired or constructed by or
on behalf of the Issuer with the proceeds from the issuance of "Special Facilities Obligations",
which are hereby defined as being special revenue obligations of the Issuer which are not
payable from Net Revenues but which are payable from and secured by other liens on and
pledges of any revenues, sources, or payments, not pledged to the payment of the Certificates.
"Yield" of
(1) any Investment has the meaning set forth in section 1.148-5 of the
Regulations; and
(2) the Certificates has the meaning set forth in section 1.148-4 of the
Regulations.
SECTION2.2 Notices.
Where this Ordinance provides for notice to Registered Owners of any event, such notice
is sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-
class postage prepaid, to each Registered Owner, at the address of such Registered Owner as it
appears in the Security Register. Neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Registered Owner affects the sufficiency of such notice with
respect to all other Registered Owners. Any notice so mailed shall be conclusively presumed to
have been duly given, whether or not the Registered Owner receives such notice. Where this
Ordinance provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event with respect to which such
notice is given, and such waiver is the equivalent of such notice. Waivers of notice by
Registered Owners are to be filed with the Issuer, but such filing is not a condition precedent to
the validity of any action taken in reliance upon such waiver.
SECTION 2.3 Effect of Headings and Table of Contents; Recitals.
The section headings herein and in the Table of Contents are for convenience only and do
not affect the construction hereof.
The Recitals contained in the preamble hereof are hereby found to be true, and such
Recitals are hereby made a part hereof for all purposes and are adopted as part of the judgment
and findings of the Governing Body.
55955355.6 13
SECTION 2.4 Ordinance a Contract; Amendments.
This Ordinance constitutes a contract with the Registered Owners entered into upon the
initial purchase of the Certificates, is binding on the Issuer and its successors and assigns
whether or not so expressed, and may not be amended or repealed by the Issuer so long as any
Certificate remains Outstanding except as permitted in this Section.
The Issuer may, without the consent of or notice to any Registered Owner, from time to
time and at any time amend this Ordinance in any manner not detrimental to the interests of the
Registered Owners, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein or therein. In addition, the Issuer may, with the written consent of the Registered
Owners of a majority in aggregate principal amount of the Certificates then Outstanding affected
thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without
the consent of the Registered Owners of all of the affected Outstanding Certificates, no such
amendment, addition, or rescission may (1) change the Stated Maturity of the Certificates or any
Interest Payment Date for an installment of interest thereon, reduce the principal amount thereof,
the Redemption Price therefor, or the rate of interest thereon, change the place or places at, or the
coin or currency in, which any Certificate or the interest thereon is payable, or in any other way
modify the terms or sources of payment of the principal of or interest on the Certificates, (2) give
any preference to any Certificate over any other Certificate, (3) modify any of the provisions of
the proviso to the definition of the term "Outstanding", or (4) modify any of the provisions of
this Section, except to increase the percentage provided hereby or to provide that certain other
provisions of this Ordinance cannot be modified or waived without the consent of the Registered
Owner of each Certificate affected thereby.
Any consent to any amendment hereof by the Registered Owner of any Certificate binds
every future Registered Owner of the same Certificate and the Registered Owner of every
Certificate issued upon transfer or in lieu thereof or in exchange therefor, in respect of anything
done or suffered to be done by the Issuer in reliance thereon, whether or not notation of such
action is made upon such Certificate.
SECTION 2.5 Benefits of Ordinance.
Nothing in this Ordinance, expressed or implied, is intended or may be construed to
confer upon any Person (other than the Issuer and Registered Owners) any right, remedy, or
claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this
Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit
of the Issuer and the Registered Owners.
SECTION 2.6 Repealer.
All orders, ordinances, and resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Ordinance are hereby repealed and declared to be
inapplicable to the extent of such conflict, and the provisions of this Ordinance are controlling as
to the matters prescribed herein.
55955355.6 14
SECTION2.7 Governing Law.
This Ordinance is to be construed in accordance with and governed by the laws of the
State of Texas and the United States of America.
SECTION 2.8 Severability.
If any provision of this Ordinance or the application thereof to any Person or
circumstance is held to be invalid, illegal, or unenforceable, the remainder of this Ordinance and
the application of such provision to other Persons and circumstances is nevertheless valid, legal,
and enforceable and the Governing Body hereby declares that this Ordinance would have been
enacted without such invalid provision or application.
SECTION 2.9 Public Meeting.
The Governing Body officially finds, determines, and declares that notice of the adoption
ofthis Ordinance was posted as required by law at a location within the Issuer in a place readily
accessible to the general public at all times for at least 72 hours preceding the scheduled time of
the meetings at which this Ordinance is read and approved; that such meetings were open to the
public; and that public notice of the time, place, and purpose of such meetings was given as
required by Texas Government Code chapter 551, as amended.
SECTION 2.10 Authority of Officers.
The Mayor, the Mayor Pro Tern, the City Clerk or any assistant City Clerk, Manager,
Attorney, or Director of Finance of the Issuer, or any of them, are authorized to evidence
adoption of this Ordinance and to do any and all things proper and necessary to carry out the
intent hereof.
55955355.6 15
SECTION 3.1
ARTICLE THREE
FORMS
Forms Generally.
The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the
State of Texas to be reproduced on the initial Certificates, the Registration Certificate of the
Paying Agent to be reproduced on subsequently delivered Certificates, and the form of
Assignment to be reproduced on each of the Certificates are to be substantially in the forms set
forth in this Article with such appropriate insertions, omissions, substitutions, and other
variations as are permitted or required by this Ordinance, and the Certificates may have such
letters, numbers, or other marks of identification (including identifying numbers and letters of
the Committee on Uniform Securities Identification Procedures of the American Bankers
Association) and such legends and endorsements (including any reproduction of an opinion of
counsel or notice of insurance) thereon as may, consistently herewith, be determined by the
officers executing such Certificates as evidenced by their execution thereof. Any portion of the
text of any Certificates may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Certificate.
The Certificates may be printed, lithographed, engraved, typewritten, photocopied, or
produced by any combination of these methods, or produced in any other manner, all as
determined by the officers executing such Certificates as evidenced by their execution thereof.
The initial Certificates to be delivered to the Attorney General may be issued either (i) as a single
fully registered C·ertificate in the total principal amount of the Certificates with principal
installments to become due and payable as provided in Section 1.1 hereof and numbered
consecutively T-1 and upward, or (ii) as fully registered certificates, being one note for each
stated maturity in the applicable principal amount and denomination and to be numbered
consecutively ~om T-1 and upward (hereinafter called the "Initial Certificate(s)").
[The remainder of this page inten tionally left blank.]
55955355.6 16
SECTION 3.2 Form of Definitive Certificate.
Unless this certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation ("DTC"), to the Issuer or its agent for registration of
transfer, exchange, or payment, and any certificate issued is registered in the name of Cede &
Co. or in such other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHER WISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.
REGISTERED
NO ......................... .
United States of America
State of Texas
CITY OF NEDERLAND, TEXAS
TAX AND REVENUE CERTIFICATE OF OBLIGATION,
SERIES 2013
REGISTERED
$ ...................... .
Interest Rate: Dated Date: Stated Maturity: CUSIPNO:
REGISTERED OWNER: ............................................................................................................... .
PRINCIPAL AMOUNT: ........................................................................................... DOLLARS
The City of Nederland, Texas (hereinafter together with its successors referred to as the
"Issuer"), a body politic and municipal corporation duly organized and existing under and by
virtue of the laws of the State of Texas, for value received, hereby promises to pay, but solely to
and from the extent of the sources described herein, to the Registered Owner specified above or
registered assigns, on the Stated Maturity specified above, the Principal Amount specified above,
and to pay interest thereon to the Person herein specified from the Dated Date specified above, or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
until such principal is paid or duly provided for on or after such Stated Maturity or any earlier
Redemption Date, semiannually on March 1 and September 1 in each year commencing March
1, 2014, at the per annum Interest Rate specified above, computed on th e basis of a 360-day year
of twelve 30-day months and, except as otherwise permitted by the Ordinance hereinafter
referred to, to make the payments to the United States of America in the amounts and on the date
therein described when due. Principal of this Bond is payable at its Stated Maturity to the
Registered Owner hereof, upon presentation and surrender, at the principal payment office of the
Paying Agent executing the Registration Certificate of Paying Agent appearing hereon, which
shall initially be BOKF, NA dba Bank of Texas, or its successor in its designated place of
payment, initially Austin, Texas (the "Place of Payment").
55955355.6 17
The interest so payable on, and paid or duly provided for on or within l 0 days after, any
Interest Payment Date will be paid to the Person in whose name this Certificate (or one or more
Predecessor Certificates evidencing the same debt) is registered at the close of business on the
Regular Record Date for such interest, which is the 15th day (whether or not a business day) of
the calendar month next preceding such Interest Payment Date. Any such interest not so paid or
duly provided for ceases to be payable to the Person in whose name such Certificate is registered
on such Regular Record Date, and shall be paid to the Person in whose name this Certificate (or
one or more Predecessor Certificates) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Paying Agent, notice whereof
being sent to the Registered Owners of the Certificates not less than five business days prior to
the Special Record Date. All such interest is payable at the Place of Payment. Such interest is
payable (l) by check or draft mailed to the address of the Registered Owner as the same appears
on the Security Register of the Issuer kept by the Paying Agent, as Registrar, or (2) in
accordance with other customary arrangements acceptable to the Paying Agent made by the
Registered Owner. The principal or Redemption Price of this Certificate is payable at the Place
of Payment upon presentation and surrender of this Certificate. All such payments must be made
in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts.
If the specified date for any such payment is a Saturday, Sunday, or legal holiday or
equivalent (other than a moratorium) for banking institutions generally in the city in which the
Place of Payment is located, such payment may be made on the next succeeding day which is not
one of the foregoing days without additional interest and with the same force and effect as if
made on the specified date for such payment.
This Certificate is one of the series specified in its title issued in the aggregate principal
amount of $2,600,000 (the "Certificates") pursuant to an Ordinance adopted by the governing
body of the Issuer (the "Ordinance"), to pay contractual obligations of the Issuer incurred
construction of public works, and purchase of materials, supplies, equipment, machinery,
bu ildings, land, and rights-of-way for authorized needs and purposes, to wit: (l) for the
renovation and equipping of a public safety & emergency operations center, (2) renovation and
equipping of the public works building (housing the City Repair Shop, administrative offices,
and storage space), including the renovation and expansion of City garage, and (3) to pay for
professional services related thereto and the issuance costs of the Certificates, under and in strict
conformity with the Jaws of the State of Texas, particularly Texas 1502.052 section and the
Certificate of Obligation, Act of 1971, as amended, Texas Local Government Code sections
271.041 through 271.063, as amended.
The Certificates with a Stated Maturity on or after September 1, 2023 may be redeemed
at the option of the Issuer, on notice mailed to the Registered Owners thereof not Jess than 30
days prior to the Redemption Date as provided in the Ordinance, as a whole or from time to time
in part in integral multiples of $5,000 principal on any date prior to their Stated Maturity, but not
before September l, 2022, upon payment of the Redemption Price, which is the principal amount
thereof together with interest, if any, accrued from the most recent Interest Payment Date to the
Redemption Date. The optional redemption of certificates may be conditioned upon issuance of
55955355.6 18
one or more series of refunding bonds or obligations to pay the redemption price 9f the Bonds to
be redeemed on or prior to the redemption date.
Certificates maturing on the dates specified below are subject to mandatory redemption
prior to maturity in the principal amounts and on the redemption dates set out below, at a price
equal to such principal amounts plus accrued interest from the most recent interest payment date
to such redemption dates:
$390,000 Certificates maturing September 1, 2025
Redemption Date
(September 1)
2023
2024
(2025)
Principal
Amount($)
125,000
130,000
135,000
$285,000 Certificates maturing September 1, 2027
Redemption Date
(September 1)
2026
(2027)
Principal
Amount($)
140,000
145,000
$305,000 Certificates maturing September 1, 2029
Redemption Date
(September 1)
2028
(2029)
Principal
Amount($)
150,000
155,000
$335,000 Certificates maturing September 1, 2031
Redemption Date
(September 1)
2030
(2031)
Principal
Amount($)
165,000
170,000
$365,000 Certificates maturing September 1, 2033
Redemption Date
(September l)
2032
(2033)
Principal
Amount($)
180,000
185,000
Such Certificates to be redeemed shall be selected by lot from and among the Certificates of such
maturity then subject to redemption. The Issuer, at its option, may credit against any mandatory
55955355.6 19
sinking fund redemption requirement Certificates . of the maturity then subject to redemption
which have been purchased and canceled by the Issuer or have been redeemed and theretofore
applied as a credit against any mandatory sinking fund redemption requirement.
Certificates of a denomination larger than $5,000 may be redeemed in part (in, and
leaving unredeemed, an authorized denomination) and upon any partial redemption of any such
Certificate the same must be surrendered in exchange for one or more new Certificates of the
same Stated Maturity in authorized denominations for the unredeemed portion of principal.
Certificates (or portions thereof) for whose redemption and payment provision is made in
accordance with the Ordinance cease to bear interest from and after the Redemption Date.
If this Certificate (or any portion of the principal sum hereof) has been duly called for
redemption and notice of such redemption duly given, then upon such redemption date this
Certificate (or the portion of the principal sum hereof to be redeemed) is due and payable, and, if
money for the payment of the redemption price and the interest accrued on the principal amount
to be redeemed to the date of redemption is held for the purpose of such payment by the Paying
Agent, interest ceases to accrue and to be payable hereon from and after the redemption date on
the principal amount hereof to be redeemed.
The Certificates of this series are payable from the proceeds of an ad valorem tax levied
upon all taxable property within the Issuer, within the limitations prescribed by law, and are
further payable from and secured by a lien on and pledge of the Net Revenues derived from the
operation of the Issuer's waterworks and sanitary sewer system (the "System") as identified and
defined in the Ordinance. In the Ordinance, the Issuer reserves and retains the right to issue
additional obligations prior and superi or in ri ght to, on a parity with, or subordinate to the
Certificates with respect to the lien on Net Revenues, and the Certificates are issued with the
pledge of Net Revenues subordinate to the pledge of Net Revenues to the Issuer's other
outstanding obligations, and any other obligations of the Issuer hereafter issued which are issued
with a pledge of Net Revenues prior and senior to or on a parity with the pledge of Net Revenues
to the Certificates.
Reference is hereby made to the Ordinance, copies of which are on file in the principal
corporate trust office of the Paying Agent, and to all of the provisions of which the Registered
Owner by his acceptance hereof hereby assents, for definitions of terms; the description of and
the nature and extent of the tax levied and the revenues pledged for the payment of the
Certificates; the terms and conditions relating to the transfer or exchange of the Certificates; the
conditions upon which the Ordinance may be amended or supplemented with or without the
consent of the Registered Owner; the rights, duties, and obligations of the Issuer and the Paying
Agent; the terms and provisions upon which this Certificate may be redeemed or discharged at or
prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for
the other terms and provisions specified in the Ordinance. Capitalized terms used herein have
the same meanings assigned in the Ordinance.
The Ordinance permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and the rights of the
Registered Owners of the Certificates under the Ordinance at any time by the Issuer with the
55955355.6 20
consent of the Registered Owners of a majority in aggregate principal amount of such
Certificates at the time outstanding affected by such modification. Any such consent by the
Registered Owners of this Certificate or any Predecessor Certificate herefor evidencing the same
debt is conclusive and binding upon such Registered Owner and all future Registered Owners of
this Certificate and of any Certificate issued upon the transfer or in lieu hereof or in exchange
herefor, whether or not notation of such consent is made upon this Certificate.
As provided in the Ordinance and subject to certain limitations therein set forth, this
Certificate is transferable on the Security Register of the Issuer, upon surrender of this Certificate
for transfer to the Paying Agent at the Place of Payment, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Paying Agent duly executed by, the
Registered Owner hereof or its attorney duly authorized in writing, and thereupon one or more
new fully registered Certificates of the same Stated Maturity, of authorized denominations, and
for the same aggregate principal amount will be issued to the designated transferee or
transferees.
The Certificates are issuable as fully registered Certificates in denominations of principal,
equal to $5,000 and any integral multiple thereof. Upon surrender of this Certificate for
exchange to the Paying Agent at the Place of Payment, and subject to certain limitations set forth
in the Ordinance, one or more new fully registered Certificates of the same Stated Maturity, of
designated authorized denominations, and for the same aggregate principal amount will be issued
to the Registered Owner of this Certificate.
No service charge may be made for any transfer or exchange hereinabove referred to, but
the Issuer or the Paying Agent may require payment of a sum sufficient to cover any tax or
governmental charge payable in connection therewith.
. The Issuer, the Paying Agent, and any agent of either of them may treat the Person in
whose name this Certificate is registered as the Registered Owner hereof for the purpose of
receiving payment as herein provided and for all other purposes, whether or not this Certificate
be overdue, and none of the Issuer, the Paying Agent, and any such agent is affected by notice to
the contrary.
It is hereby certified, covenanted, and represented that all acts, conditions, and things
required to be performed, exist, and be done precedent to the issuance of this Certificate in order
to render the same a legal, valid, and binding obligation of the Issuer have been performed, exist,
and have been done, in regular and due time, form, and manner, as required by law, and that
issuance of the Certificates does not exceed any constitutional or statutory limitation. In case
any provision in this Certificate or any application thereof is deemed invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining provisions and
applications is not in any way affected or impaired thereby. The terms and provisions of this
Certificate and the Ordinance are to be construed in accordance with and governed by the Jaws of
the State of Texas.
Unless either a Registration Certificate hereon has been executed by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent or by the Paying Agent,
55955355.6 21
respectively, by manual signature, this Certificate shall not be entitled to any benefit under the
Ordinance or be valid or obligatory for any purpose.
55955355.6 22
IN WITNESS WHEREOF, the Issuer has cau sed this Certificate to be duly executed.
CITY OF NEDERLAND, TEXAS
BY ....................................................................... .
Mayor
AITEST:
............................................................................................................................
City Clerk
[The remainder of this page intentionally left blank.]
55955355.6 23
SECTION 3.3 Form of Registration Certificate of Comptroller of Public Account~.
REGISTRA TJON CERTIFICATE OF
COMPTROLLER OF PUBLIC ACCOUNTS*
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS §
§ REGISTER NO ......................................................... .
THE STA TE OF TEXAS §
I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and
approved by the Attorney General of the State of Texas, and duly registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS my signature and seal of office this ................................................................... .
(SEAL)
Comptroller of Public Accounts
of the State of Texas
* Note to P rinter: Not to appear on printed Certificates
SECTION 3.4 Form of Certificate of Paying Agent.
CERTIFICATE OF PAYING AGENT*
This Certificate has been duly issued under the provisions of the within-mentioned
Ordinance; the Certificate or Certificates of the above-entitled and designated series originally
delivered having been approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts, as shown by the records of the Paying Agent.
Registration Date: ................................... .
[Insert name of Paying Agent]
as Paying Agent
BY. ...................................................................... .
Authorized Officer
*Note to Printer: Not to appear on initial Certificates
55955355.6 24
SECTION 3.5 Form of Assignment ..
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto
(Print or typewrite name, address, and zip code of transferee): ....................................................... .
(Social Security or other identifying number: ................................................................................ )
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints .. .
attorney to transfer the within Certificate on the books kept for registration thereof, with full
power of substitution in the premises.
DATED: ......................................................... .
Signature guaranteed:
NOTICE: The signature on this assignment
must correspond with the name of the
registered owner as it appears on the face of
the within Certificate in every particular.
SECTION 3.6 Form of Initial Certificate.
The Initial Certificate shall be in the form set forth in Section 3.2 except that the form of
a single fully registered Certificate shall be ·modified as follows:
(i) immediately under the name of the Certificate the headings "Interest Rate
___ ", "Stated Maturity ", and "CUSIP No. " will be
omitted;
(ii) Paragraph one will read as follows:
The City of Nederland, Texas (hereinafter together with its successors referred to as the
"Issuer"), a body politic and municipal corporation duly organized and existing under and by
virtue of the laws of the State of Texas, for value received, hereby promises to pay, but solely to
and from the extent of the sources described herein, to the Registered Owner specified above or
registered assigns, the hereinabove stated the Principal Amount on September 1 in each of the
years and in principal amounts and bearing interest at per annum rates in accordance with the
following schedule:
55955355.6 25
Year of
Stated Maturity
Principal
Amount
Interest
Rate(%)
(Information to be inserted from schedule in Section 1.1 hereof).
(or so much thereof as shall not have been paid upon prior redemption) and to pay interest
thereon computed on the basis of a 360-day year of twelve 30-day months to the Person herein
specified from the Dated Date specified above, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, until such principal is paid or duly provided
for on or after such Stated Maturity or any earlier Redemption Date, semiannually on March 1
and September 1 in each year commencing March 1, 2014, at the per annum Interest Rates
specified above, computed on the basis of a 360-day year of twelve 30-day months. Principal
installments of this Certificate are payable at its Stated Maturity or on a prepayment date to the
registered owner hereof by BOKF, NA dba Bank of Texas (the "Paying Agent"), upon its
presentation and surrender, at its designated offices in Austin, Texas (the "Place of Payment").
SECTION 3.7 Insurance Legend.
If bond insurance is obtained by the Issuer or the Purchaser for the Certificates, the
Definitive Certificates and the Initial Certificate(s) shall bear an appropriate legend as provided
by the insurer.
55955355.6 26
SECTION 4.1
ARTICLE FOUR
TAXES, REVENUES, AND FUNDS;
INVESTMENTS
Certificate Fund.
To pay interest on and to provide a sinking fund for the payment, redemption, and
retirement of the Certificates, the Issuer hereby creates and shall maintain solely for such
purposes (subject to the provisions of Section 5.5) a special fund designated as its
"CERTIFICATES OF OBLIGATION, SERIES 2013, INTEREST AND SINKING FUND" (the
"Certificate Fune!'). The Issuer authorizes and directs its authorized officials to withdraw from
the Certificate Fund and to transfer to the Paying Agent money on deposit in the Certificate Fund
sufficient to pay the amount of principal or interest falling due on the Certificates, such transfer
of funds to the Paying Agent to be made in such manner as will cause immediately available
funds to be deposited with the Paying Agent on or before the last business day next preceding
each Maturity or Interest Payment Date for the Certificates.
SECTION 4.2 Deposits to Certificate Fund; Excess Certificate Proceeds.
The Issuer, prior to a Maturity or Interest Payment Date for the Certificates, may deposit
any of the Net Revenues to the Certificate Fund in accordance with Section 4.3 . The Net
~evenues, if deposited, shall be expended annually to pay principal of and interest on the
Certificates as the same become due and payable. The Net Revenues so deposited shall be
accounted for and transferred to the Paying Agent in accordance with the provisions of
Section 4.1 governing other money in the Certificate Fund.
The Issuer shall deposit accrued interest and premium, if any, received from the
Purchaser and ad valorem taxes levied and collected to pay principal or Redemption Price of or.
· interest on the Certificates to the Certificate Fund. ln addition, the Issuer shall deposit any
surplus proceeds, including investment income therefrom, from the sale of the Certificates not
expended for authorized purposes to the Certificate Fund.
SECTION 4.3 System Account.
The Issuer shall keep all Gross Revenues derived from operation of the System separate
and apart from all other funds, accounts, and money of the Issuer and shall deposit amounts
collected into the Issuer's "WATERWORKS AND SEWER SYSTEM ACCOUNT" (the
"System Account''). The Issuer shall pledge and appropriate money in the System Account as
required for the fo llowing purposes and in the order of priority shown:
First: as a first charge on and claim against the Gross Revenues, to pay reasonable and
proper Maintenance and Operating Expenses required by statute or ordinances
authorizing the issuance of any indebtedness of the Issuer;
Second: to deposit amounts required in the special funds and accounts established for
payment of any obligations of the Issuer with a lien on Gross Revenues or Net Revenues
prior or superior to the lien granted to secure payment of the Certificates;
55955355 .6 27
Third: to deposit amounts· required in the special funds and accounts established for the
payment of the Certificates or any additional obligations of the Issuer secured by the Net
Revenues on a parity with the Certificates; and
Fourth: any Net Revenues remaining in the System Account after satisfying the
foregoing payments, or making adequate and sufficient provision for the payment,
security and benefit thereof, to be appropriated and used for any other Issuer purpose now
or hereafter permitted by Jaw.
SECTION 4.4 Construction Accounts.
Except as provided in Section 4.2, the Issuer will deposit proceeds derived from the sale
of the Certificates (after paying costs of issuance) into special construction account or accounts
created for the projects to be constructed with such proceeds. Pending completion of
construction of the projects financed with such proceeds interest earned on the such proceeds
must be accounted for, maintained, deposited, and expended as permitted by the provisions of
Texas Government Code section 1201.043, as from time to time in effect, or as otherwise
required by applicable law. Thereafter, such interest must be accounted for, maintained,
deposited, and expended in accordance with Section 4.5.
SECTION 4.5 Investments and Security For Funds.
The Issuer is required to keep all money in such funds and accounts at a depository of the
Issuer except when invested pursuant to this Section. Subject to Section 5.6, money in any fund
established by this Ordinance may, at the option of the Issuer, be invested in a manner permitted
by the provisions of the Public Funds Investment Act of 1987, Texas Government Code chapter
2256, subchapter A, as then in effect, the Public Funds Collateral Act, Texas Government Code
chapter 2257, as then in effect, or by any other Jaw applicable to the Issuer; provided that all such
investments must be made so that money required to be expended will be available at the proper
time or times. The Issuer shall credit or debit all interest and income or losses from deposits and
investments in any fund or account established pursuant to the provisions of this Ordinance shall
be credited to such fund or account. The Issuer shall sell investments promptly as necessary to
prevent any default in connection with the Certificates.
All money on deposit in the Funds for which this Ordinance makes provision (except any
portion thereof as may be at any time properly invested as provided herein) shall be secured in
the manner and to the fullest extent required by the laws of Texas for the security of public
funds, and money on deposit in such Funds shall be used only for the purposes permitted by this
Ordinance.
SECTION 4.6 Tax, Levy.
To provide for the payment of the Debt Service Requirements, which are defined to be
(i) the interest on the Certificates and (ii) a sinking fund for payment of principal of the
Certificates at Stated Maturity or earlier redemption or a sinking fund of 2% (whichever amount
is greater), the Issuer levies and shall levy for the current year and each succeeding year
thereafter while the Certificates or any interest thereon is Outstanding, a sufficient tax on each
55955355.6 28
$100 of taxable property in the Issuer, within the limitations prescribed by law, .adequate to pay
such amounts, full allowance being made for delinquencies and costs of collection. Such tax
shall be assessed and collected each year, and the same may not be diverted to any other purpose.
The Issuer shall pay the taxes so levied and collected into the Certificate Fund. The Governing
Body hereby declares its purpose and intent to provide and levy such tax, it having been
detennined that the existing and available taxing authority of the Issuer for such purpose is
adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness.
The Issuer shall determine the amount of taxes to be provided annually for the Debt
Service Requirement in the following manner:
A. Prior to establishing the annual tax rate, the Governing Body shall determine:
(1) the amount of Debt Service Requirements to become due and payable on
the Certificates between the Collection Date for the taxes then to be levied and the
Collection Date for the taxes to be levied during the next succeeding calendar year;
(2) the amount on deposit in the Certificate Fund (including surplus
Certificate proceeds transferred to the Certificate Fund under Sectio.n 4.2) after (a)
deducting therefrom the total amount of Debt Service Requirements to become due on
Certificates prior to the Collection Date for the ad valorem taxes then to be levied and (b)
adding thereto the amount of the Net Revenues, if any, to be appropriated and allocated
to pay such Debt Service Requirements, if any, prior to the Collection Date for the ad
valorem taxes then to be levied; and
(3) the amount of Net Revenues, if any, to be appropriated and to be set aside
for the payment of the Debt Service Requirements on the Certificates between the
Coll ection Date for the taxes then to be levied and the Collection Date for the taxes to be
levied during the nex1: succeeding Fiscal Year.
B. The Issuer shall assess and levy annually each year a tax to pay the Debt Service
Requirements sufficient to provide tax revenues in the amount established in paragraph (I) above
less the sum total of the amounts established in paragraphs (2) and (3), after taking into
consideration delinquencies and costs of collecting such annual taxes.
SECTION 4.7 Net Revenues.
The Issuer covenants and agrees that the Net Revenues are hereby irrevocably pledged to
the payment of the principal of and interest on the Certificates and the pledge of Net Revenues
herein made for the payment of the Certificates shall constitute a lien on the Net Revenues in
accordance with the terms and provisions hereof and be valid and binding without any physical
delivery thereof or further act by the Issuer. The pledge of Net Revenues hereunder is
subordinate to the prior pledge of Net Revenues to secure the Issuer's outstanding obligations
secured by a pledge of Net Revenues to the extent of such pledge (together with prior obligations
hereafter issued pursuant to Section 4.8 (the "Prior Obligations").
55955355.6 29
Section 1208, Government Code, applies to the issuance of the Certificates and the
pledge of the Net Revenues of the System granted by the Issuer under this Section, and such
pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the
Bonds are Outstanding such that the pledge of the Net Revenues of the System granted by the
Issuer under this Section is subject to the filing requirements of Chapter 9, Business &
Commerce Code, then to preserve to the Bondholders the perfection of the security interest in
said pledge, the Issuer agrees to take such measures as it determines are reasonable and
necessary under Texas law to comply with the applicable provisions of Chapter 9, Business &
Commerce Code and enable a filing to perfect the security interest in said pledge to occur.
SECTION 4.8 Issuance of Additional Obligations.
The Issuer hereby expressly reserves the right to hereafter issue bonds, notes, warrants,
certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from
and secured by a pledge of and lien on the Net Revenu es of the System prior and superior in
right to, on a parity with the Certificates as Parity Obligations, or subordinate to the pledge of
and lien on the Net Revenues in favor of the Certificates, without limitation as to principal
amount, but subject to any terms, conditions, or restrictions applicable thereto under existing
ordinances, laws, or otherwise.
55955355.6 30
SECTION 5.1
ARTICLE FIVE
COVENANTS
To Maintain Agency.
The Issuer will at all times until the Certificates are duly paid maintain an agency
meeting the qualifications herein described, for the performance of the duties of the Paying
Agent hereunder. BOKF, NA dba Bank of Texas, is hereby appointed Paying Agent for such
purposes. The Issuer retains the right to replace the Paying Agent, and the Paying Agent may be
removed from its duties hereunder at any time upon not less than 30 days notice with or without
cause by action of the Governing Body entered in its minutes, but no such removal is effective
until a successor has accepted the duties of the Paying Agent hereunder by written instrument.
Every Paying Agent appointed hereunder must at all times be a commercial bank or trust
company organized and doing business under the laws of the United States of America or of any
state, authorized under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $10,000,000, subject to supervision or examination by federal or state
authority, registered as a transfer agent with the Securities and Exchange Commission. If such
corporation publishes reports of condition at least annually pursu.ant to law or to the requirements
of such supervising or examining authority, then for the purposes of this Section the combined
capital and surplus of such corporation shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. Upon any change in the Paying
Agent, the City agrees to promptly cause a written notice thereof to be sent to each Registered
Owner affected by the change, which notice shall also give the address of the new Paying Agent,
which shall be the designated Place of Payment.
This Section is subject to the provisions of Section 8.2.
The terms of the Transfer and Paying Agency Agreement with the initial Paying Agent
are hereby approved in substantially the form and to the effect presented to the Governing Body
on this date, and the Mayor and the Mayor Pro Tern of the Issuer, or either of them, and the City
Clerk and any Assistant or Acting City Clerk of the Issuer, or any of them, are hereby authorized
to execute and deliver such Transfer and Paying Agency Agreement.
SECTION 5.2 To Maintain and Operate the System and Insure Property.
The Issuer covenants and agrees that while the Certificates remain Outstanding it will
maintain and operate the System with all possible efficiency and maintain casualty and other
insurance on the properties of the System and its operations of a kind and in such amounts
customarily carried by municipalities in the State of Texas engaged in a similar type of business
and that it will faithfully and punctually perform all duties with reference to the System required
by the laws of the State of Texas. All money received from losses under such insurance policies,
other than public liability policies, are hereby pledged as security for the Certificates until and
unless the proceeds are paid out in making good the loss or damage in respect of which such
proceeds are received, either by replacing the property destroyed or repairing the property
damaged, and adequate provision for making good such loss or damage must be made within 90
55955355.6 31
days after the date of loss. The payment of premiums for all insurance policies required under
the provisions hereof shall be considered Maintenance and Operating Expenses. Nothing in this
Ordinance may be construed as requiring the Issuer to expend any funds which are derived from
sources other than the operation of the System but nothing herein may be construed as
preventing the Issuer from doing so.
SECTION 5.3 Rates and Charges.
The Issuer hereby covenants and agrees that rates and charges for services afforded by
the System will be established and maintained to provide Gross Revenues sufficient at all times:
A. to pay all Maintenance and Operating Expenses;
B. to produce Net Revenues sufficient (but subject to the maximum amount of Net
Revenues pledged hereunder), together with any other lawfully available funds, to produce an
amount of Net Revenues sufficient to pay the interest on and principal of the Certificates and any
additional obligations of the Issuer hereafter issued on a parity therewith; and
C. to pay other legally incurred indebtedness payable from the Net Revenues or
secured by a lien on the System or the Net Revenues thereof.
SECTION 5.4 Records and Accounts, Annual Audit.
The Issuer covenants and agrees that so long as any of the Certificates remain
Outstanding it will keep and maintain separate and complete records and accounts pertaining to
the operations of the System in which complete and correct entries shall be made of all
transactions relating thereto, as provided by Texas Government Code section 1502.067, as
amended, or other applicable law. The Registered Owners or any duly authorized agent or
agents of the Registered Owners may inspect the System and all properties comprising the same.
The Issuer agrees that, following the close of each Fiscal Year, it will cause an audit of its books
and accounts to be made by an independent firm of Certified Public Accountants. Copies of
each annual audit shall be furnished to the Executive Director of the Municipal Advisory Council
of Texas at his office in Austin, Texas, and, upon written request, to the original purchaser of the
Certificates and any subsequent Registered Owner thereof. Expenses incurred in making the
annual audit of the operations of the System are Maintenance and Operating Expenses.
SECTION 5.5 Special Covenants.
The Issuer covenants that:
A. Lawful Authority: it has the lawful power to pledge the Net Revenues supporting
the Certificates and has lawfully exercised said powers under the laws of the State of Texas;
B. No Encumbrance: as long as any Certificates or any interest thereon remain
Outstanding, the Issuer will not sell, lease or encumber (except in the manner provided in
Section 4.8) the System or any substantial part thereof, provided that this covenant shall not be
55955355.6 32
construed to prohibit the sale of such machinery, or other properties or equipment wh ich has
become obsolete or otherwise unsuited to the efficient operation of the System; and
C. No Franchise: to the extent that it legally may, the Issuer further covenants and
agrees that, so long as any of the Certificates, or any interest thereon, are Outstanding, no
franchise shall be granted for the installation or operation of any competing systems other than
those owned by the Issuer, and the operation of any such systems by anyone other than the Issuer
is hereby prohibited.
SECTION 5.6 Covenants to Maintain Tax-Exempt Status.
A. Not to Cause Interest to Become Taxable. The Issuer may not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction, or improvement of which is to be financed directly or indirectly with Gross
Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any
Certificate to become includable in the gross income, as defined in section 61 of the Code, of the
owner thereof for federal income tax purposes. Without limiting the generality of the foregoing,
unless and until the Issuer receives a written opinion of counsel nationally recognized in the field
of municipal bond Jaw to the effect that failure to comply with such covenant will not adversely
affect the exemption from federal income tax of the interest on any Certificate, the Issuer shall
comply with each of the specific covenants in this Section.
B. No Private Use or Private Payments. Except as permitted by section 141 of the
Code and the Regulations and rulings thereunder, the Issuer shall, at all times prior to the final
Maturity,
(1) exclusively own, operate, and possess all property the acquisition,
construction, or improvement of which is to be financed directly or indirectly with Gross
Proceeds and not use or permit the use of Gross Proceeds (including contractual
arrangements with terms different than those applicable to the general public) or any
property acquired, constructed, or improved with Gross Proceeds in any activity carried
on by any person or entity (including the United States or any agency, department and
instrumentality thereof) other than a state or local government, unless such use is solely
as a member of the general public, or
(2) not directly or indirectly impose or accept any charge or other payment by
any Person or entity who is treated as using Gross Proceeds or any property the
acquisition, construction, or improvement of which is to be financed directly or indirectly
with Gross Proceeds, other than a charge or other payment merely as a member of the
general public or interest earned on investments acquired with Gross Proceeds pending
application for their intended purposes, either or both.
The proceeds of the Certificates and the facilities financed with the proceeds will not be
used in a manner that will cause the obligations to be "private activity bonds."
C. No Private Loan. Except as permitted by section 141 of the Code and the
Regulations and rulings thereunder, the Issuer shall not use Gross Proceeds to make or finance
55955355.6 33
loans to any Person other than a state or local government. For purposes of the foregoing
covenant, Gross Proceeds are considered to be "Loaned'' to a Person if (1) property acquired,
constructed, or improved with Gross Proceeds is sold or leased to such Person in a transaction
which creates a debt for federal income tax purposes, (2) capacity in or service from such
property is committed to such Person under a take-or-pay, output, or similar contract or
arrangement, or (3) i_ndirect benefits, or burdens and benefits of ownership, of Gross Proceeds or
any property acquired, constructed, or improved with Gross Proceeds are otherwise transferred in
a transaction which is the economic equivalent of a loan.
D. Not to Invest at Higher Yield. Except as permitted by section 148 of the Code and
the Regulations and rulings thereunder, the Issuer shall not, at any time prior to the final
Maturity, directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds
to replace money so invested), if as a result of such Investment the Yield of any Investment
acquired with Gross Proceeds (or with money replaced thereby) whether then held or previously
disposed of, exceeds the Yield of the Certificates.
E. Not Federally Guaranteed. Except as pennitted by section 149(b) of the Code
and the Regulations and rulings thereunder, the Issuer shall not take or omit to take any action
which would cause the Certificates to be federally guaranteed within the meaning of section
149(b) of the Code and the Regulations and rulings thereunder.
F. Information Report. The Issuer shall timely file the information required by
section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other
form and in such place as such Secretary may prescribe: ...
G. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section
148(f) of the Code and the Regulations and rulings thereunder:
(1) The Issuer shall account for all · Gross Proceeds (including all receipts,
expenditures and investments thereof) on its books of account separately and apart from
all other funds (and receipts, expenditures and investments thereof) and shall retain all
records of accounting for at least six years after the day on which the last outstanding
Certificate is discharged. However, to the extent permitted by law, the Issuer may
commingle Gross Proceeds of the Certificates with other money of the Issuer, provided
that the Issuer separately accounts for each receipt and expenditure of Gross Proceeds
and the obligations acquired therewith.
(2) Not less frequently than each Computation Date, the Issuer shall calculate
the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and
the Regulations and rulings thereunder. The Issuer shall maintain such calculations with
its official transcript of proceedings relating to the issuance of the Certificates until six
years after the final Computation Date.
(3) As additional consideration for the purchase of the Certificates by the
Purchasers and the loan of the money represented thereby and in order to induce such
purchase by measures designed to insure the excludability of the interest thereon from the
55955355.6 34
gross income of the owners thereof for federal income tax purp9ses, the Issuer shall pay
to the United States out of the Certificate Fund or its general fund, as permitted by
applicable Texas statute, regulation or opinion of the Attorney General of the State of
Texas, the amount that when added to the future value of previous rebate payments made
for the Certificates equals (i) in the case of a Final Computation Date as defined in
section l.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate
Amount on such date; and (ii) in the case of any other Computation Date, ninety percent
(90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be
made at the times, in the installments, to the place and in the manner as is or may be
required by section 148(f) of the Code and the Regulations and rulings thereunder, and
shall be accompanied by Form 8038-T or such other forms and information as is or may
be required by section 148(f) of the Code and the Regulations and rulings thereunder.
"Interest' as used herein includes payments to the United States of America which are
made on behalf of the Bondholders, but which together with other payments comprising
interest may not exceed lawful rates of interest authorized under applicable law.
( 4) The Issuer shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional Rebate Amount owed to
. it, interest thereon, and any penalty imposed under section l .148-3(h) of the Regu lations.
H. Elections. The Issuer hereby directs and authorizes the Mayor, Mayor Pro Tern,
City Clerk, Manager, Attorney, or Director of Finance of the Issuer, either or any combination of
the foregoing, to make such elections in the Certificate as to Tax Exemption or similar or other
appropriate certificate, form, or document permitted or required pursuant to the provisions of the
Code or Regulations as they deem necessary or appropriate in connection with the Certificates.
Such elections are deemed made on the Issue Date. ·
I. Qualified Tax-Exempt Obligations. In accordance with the provisions of Section
265(b)(3) of the Code, the Issuer hereby designates the Certificates to be "qualified tax-exempt
obligations" in that the Certificates are not "private activity bonds" as defined in the Code and
the reasonably anticipated amount of tax-exempt obligations to be issued by the Issuer (including
all subordinate entities of the Issuer) for the calendar year 2013 will not exceed $10,000,000.
SECTION 5.7 Remedies in Event of Default.
In addition to all the rights and remedies provided by the laws of the State of Texas, the
Issuer covenants and agrees particularly that in the event the Issuer (a) defaults in the payments
to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other
of the covenants, conditions, or obligations set forth in this Ordinance, the Registered Owners of
any of the Certificates shall be entitled to seek a writ of mandamus issued by a court of proper
jurisdiction compelling and requiring the governing body of the Issuer and other officers of the
Issuer to observe and perform any covenant, condition, or obligation prescribed in this
Ordinance.
55955355.6 35
nf>".·
No delay or omission to exercis~ any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a· waiver of any such default or
acquiescence therein, and every such right and power may be exercised from time to time and as
often as may be deemed expedient. The specific remedies herein provided shall be cumulative of
all other existing remedies and the specification of such remedies shall not be deemed to be
exclusive.
55955355.6 36
SECTION 6.1
ARTICLE SIX
DEFEASANCE
Discharge of Obligations.
Any Certificate is deemed paid and is no longer considered to be Outstanding within the
meaning of this Ordinance when payment of the principal of and interest on such Certificate to
the Stated Maturity thereof or (if notice of redemption has been duly given, irrevocably provided
for, or wa~ved as provided herein) to the Redemption Date has been made or has been provided
for by deposit with the Paying Agent for such payment (or with any other bank or trust company
which has agreed to hold the same for such purpose) (l) money sufficient to make such payment,
(2) Governmental Obligations certified by an independent public accounting firm of national
reputation to be of such maturities and interest payment dates and to bear such interest as will,
without further investment or reinvestment of either the principal amount thereof or the interest
earnings therefrom, be sufficient to make such payment, or (3) a combination of money and
Governmental Obligations together so certified sufficient to make such payment, provided that
all the expenses pertaining to the Certificates with respect to which such deposit is made have
been paid or the payment thereof provided for to the satisfaction of the Paying Agent (and to
~uch other bank or trust company).
If such deposit is made with respect to some but not all of the Certificates then
Outstanding, the Issuer shall designate the Stated Maturities pf Certificates with respect to which
such deposit is made. If such deposit is sufficient so to provide for the payment of the principal
of and interest on some but not all Outstanding Certificates of a particular Stated Maturity so
designated, the Paying Agent shall select the Outstanding Certificates of such Stated Maturity
with respect to which such deposit is made by such random method as the Paying Agent deems
fair and appropriate and which may provide for the selection of portions (equal to and leaving
1:1nredeemed an authorized denomination) of Certificates a denomination larger than $5,000.
Notwithstanding anything herein to the contrary, no such deposit has the effect described
in this Section (a) if made during the subsistence of a default in the payment of any Certificate
unless made with respect to all of the Certificates then Outstanding or (b) unless accompanied by
an opinion of counsel of recognized standing in the field of federal income taxation to the effect
that neither such deposit nor the investment thereof adversely affects the excludability of interest
on any Certificate from the gross income of any owner thereof for federal income tax purposes.
The Paying Agent (or other bank or trust company) with which a deposit is made of
money and Governmental Obligations for such purpose shall hold the deposit in a segregated
account in trust or escrow for the Registered Owners of the Certificates with respect to which
such deposit is made and, together with any investment income therefrom, the deposit may be
disbursed solely to pay the principal of and interest on such Certificates when due, except that
cash receipts may be withdrawn and paid to the Issuer provided the date and amount of such
withdrawals are taken into account in the most recent verification of the accounting firm referred
to in this Section. No money or Governmental Obligations so deposited may be invested or
reinvested unless in Governmental Obligations and unless such money and Governmental
Obligations not invested and such new investments are together certified by an independent
55955355.6 37
public accounting firm of national reputation to be of such amounts, maturities, and interest
payment dates and to bear such interest as will, without further investment or reinvestment of
either the principal amount thereof or the interest earnings therefrom, be sufficient to make such
payment.
At such times as a Certificate is deemed to be paid hereunder, as aforesaid, it is no longer
entitled to the benefits of this Ordinance, except for the purposes of any such payment from such
money or Governmental Obligations and for the provisions of Sections 1.4 and 1.5 and for the
continuing compliance of the Issuer with the provisions of Section 5.6.
Upon such deposit as described above, such Certificates shall no longer be regarded to be
outstanding or unpaid. Provided, however, the Issuer has reserved the option, to be exercised at
the time of the defeasance of the Certificates, to call for redemption at an earlier date those
Certificates which have been defeased to their maturity date, if the Issuer (i) in the proceedings
providing for the firm banking and financial arrangements, expressly reserves the right to call the
Certificates for redemption, (ii) gives notice of the reservation of that right to the owners of the
Certificates immediately following the making of the firm bank and financial arrangements, and
(iii) directs that notice of the reservation be included in any redemption notices that it authorizes.
55955355.6 38
SECTION7.1
ARTICLE SEVEN
SALE
Sale of the Certificates.
The sale of the Certificates to Sterne, Agee & Leach, Inc. (the "Purchaser") at the price
of par in the amount of $2,600,000.00, plus a net premium of $133, 108.60, less an underwriters
discount of $78,650.00, plus accrued interest thereon from the Dated Date to the date of initial
delivery, is hereby confirmed and determined to be in compliance with the terms of the Notice of
Sale.
Delivery of the Certificates shall be made to the Purchaser as soon as practicable after the
adoption of this Ordinance, upon payment therefor in accordance with the terms of sale.
SECTION 7.2 Payment of Costs of Issuance; Engagement of Bond Counsel.
The Issuer has in consultation with its financial advisor, USCA Municipal Advisors, LLC
set aside an amount of the proceeds of the Certificates to pay costs of issuance of the Certificates.
The amount of such proceeds will be designated in a closing Jetter prepared by the financial
advisor, and in the absence of contrary written instructions included as part of such closing letter
to deposit such proceeds with the Issuer, the Paying Agent will pay such costs of issuance on
behalf of the Issuer in accordance with invoices.
The Issuer hereby confirms engagement of Fulbright & Jaworski LLP, a member of
Norton Rose Fulbright as Bond Counsel ("Bond Counsel") for the City in accordance with the
terms of the Letter of Engagement between the Issuer and Bond Counsel.
SECTION 7.3 Official Statement.
The Issuer hereby approves and ratifies distribution of the Preliminary Official Statement
and Notice of Sale and Bidding Instructions relating to the Certificates. The Issuer further
approves and authorizes distribution of the Official Statement, dated the date hereof,
substantially in the form of the Preliminary Official Statement but completed and modified to
reflect the terms of sale of the Certificates and such other changes as the Mayor of the Issuer
shall approve. The Mayor of the Issuer and City Clerk of the Issuer are authorized to execute
and deliver for and on behalf of the Issuer sufficient copies of such Official Statement, and, in
the form and content manually executed by said officials of the Issuer, the same shall be deemed
approved by this Governing Body and constitute the Official Statement duly authorized for
distribution.
The proper officials of the Issuer are hereby authorized to execute and deliver a
certificate pertaining to such Official Statement as prescribed herein.
55955355.6 39
SECTION 8.1
ARTICLE EIGHT
CONTINUING DISCLOSURE UNDERTAKING
Definitions.
As used in this Article, the following terms have the meanings ascribed to such terms
below:
"EMMA" means the Electronic Municipal Market Access system.
"MSRB" means the Municipal Securities Rulemaking Board.
"Rule" means SEC Rule 15c2-12, as amended from time to time or officially interpreted
by the SEC.
"SEC" means the United States Securities and Exchange Commission.
SECTION 8.2 Updated Information and Data.
The Issuer shall provide annually to the MSRB through EMMA, within six months after
the end of each fiscal year ending in or after 2013, financial information and operating data with
respect to the Issuer of the general type included in the Preliminary Official Statement provided
to the .Purchaser in connection with its initial approval of its purchase of the Certificate of
Obligations, being the information described in Exhibit A hereto. Any financial statements so to
be provided shall be (1) prepared in accordance with the accounting principles set forth in
Appendix C to the Official Statement, or as may otherwise hereafter be established consistent
with Texas law and Generally Accepted Accounting Principles, and (2) audited, if the Issuer
commissions an audit of such statements and the audit is completed within the period during
which they must be provided. If audited financial statements are not so provided, then the Issuer
shall provide audited financial statements for the applicable fiscal year to the MSRB through
EMMA, when and if audited financial statements become available but if such audited financial
statements are unavailable the Issuer will provide such financial statements on an unaudited basis
within the above-described six-month period.
If the Issuer changes its fiscal year, it will notify the MSRB through EMMA of the
change (and of the date of the new fiscal year end) prior to the next date by which the Issuer
otherwise would be required to provide financial information and operating data pursuant to this
Section.
The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document, if it is available from the
MSRB) that theretofore has been provided to the MSRB through EMMA or filed with the SEC,
or may be provided in any other manner consistent with the Rule.
55955355.6 40
SECTION 8.3 Mat erial Event Notices.
The Issuer shall notify the MSRB through EMMA of any of the following events with
respect to the Certificates in a timely manner, and not more than 10 business days after
occurrence of the event:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions the issuance by the Internal Revenue Service of proposed or
final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-
TEB), or other material notices or determinations with respect to the tax-exempt
status of the Certificates, or other. material events affecting the tax status of the
Certificates;
7. Modifications to rights of Registered Owners of the Certificates, if material;
8. Certificate calls, if material, and tender offers;
9. Defeasances;
l 0. Release, substitution, or sale of property securing repayment of the Certificates; if
material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership, or similar event of the Issuer, which shall
occur as described below;
13. The consummation of a merger, consolidation, or acquisition involving the Issuer
or the sale of all or substantially all of its assets, other than in the ordinary course
of business, the entry into of a definitive agreement to undertake such an action or
the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material; and
14. Appointment of a successor or additional trustee or the change of name of a
trustee, if material.
The Issuer shall notify the MSRB through EMMA., in a timely manner, of any failure by
the Issuer to provide financial information or operating data in accordance with Section 8.2 by
the time required by such Section.
55955355.6 41
SECTION 8.4 Limitations, Disclaimers, and Amendments.
The Issuer shall be obligated to observe and perform the covenants specified in this
Section with respect to the Issuer and the Certificates while, but only while, the Issuer remains an
"obligated person" with respect to the Certificates within the meaning of the Rule, except that
the Issuer in any event will give the notice required by Section 8.3 of any Certificate calls and
defeasance that cause the Issuer to be no longer such an "obligated person".
The provisions of this Article are for the sole benefit of the Registered Owners and
beneficial owners of the Certificates, and nothing in this Article, express or implied, shall give
any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The
Issuer undertakes to provide only the financial information, operating data, financial statements,
and notices which it has expressly agreed to provide pursuant to this Article and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the financial results, condition, or prospects of the Issuer or the State of Texas or
hereby undertake to update any information provided in accordance with this Article or
otherwise, except as expressly provided herein. The Issuer does not make any representation or
warranty concerning such information or its usefulness to a decision to invest in or sell
Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE
REGISTERED OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE ANY OTHER
PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN
PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT
FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY
RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON
ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the Issuer in observing or performing its obligations under this Article shall
constitute a breach of or default under this Ordinance for purposes of any other provision of this
Ordinance.
Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the
duties of the Issuer under federal and state securities laws.
The provisions of this Article may be amended by the Issuer from time to time to adapt to
changed circumstances resulting from a change in legal requirements, a change in law, or a
change in the identity, nature, status, or type of operations of the Issuer, but only if (I) the
provisions of this Article, as so amended, would have permitted an underwriter to purchase or
sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking
into account any amendments or interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (2) either (a) the Registered Owners of a majority in
aggregate principal amount (or any greater amount required by any other provision of this
Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such
amendment or (b) a Person that is unaffiliated with the Issuer (such as nationally recognized
55955355.6 42
bond counsel) determines that such amendment will not materially impair the interests of the
Registered Owners and beneficial owners of the Certificates. The Issuer may also amend or
repeal the provisions of this Article if the SEC amends or repeals the applicable provisions of the
Rule or a court of final jurisdiction determines that such provisions are invalid, but in either case
only to the extent that its right to do so would not prevent the Purchaser from lawfully
purchasing the Certificates in the offering described herein. If the Issuer so amends the
provisions of this Article, it shall include with any amended financial information or operating
data next provided in accordance with Section 8.2 an explanation, in narrative form, of the
reasons for the amendment and of the impact of any change in the type of financial information
or operating data so provided.
55955355.6 43
This Ordinance is in force and effect from and after its final passage, and it is so
ordained. ·
PASSED AND ADOPTED on June 24, 2013.
CITY OF NEDERLAND, TEXAS
Mayor /
AITEST:
55955355.6 SIGNATURE PAGE
EXHIBIT A
In the Preliminary Official Statement dated June 20, 2013, the quantitative financial
information and operating data with respect to the Issuer of general type contained in Schedules
1, 3-13 and certain information in the annual financial statements in Appendix C.
55955355.6 A-1
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4 :30 p.m. July 8 , 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 mot ion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -June 24, 2013 regular meeting
b. Consider action approving a request from Brian English to utilize the Nederland
Recreation Center gymnasium for a basketball tournament and waive associated
fees.
c. Payments:
• June 2013 monthly bills
• Bruce's General Construction -$78,030.00, Nederland City Hall project
• Schaumburg & Polk, Inc. -$37 ,SOS.SO, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, I nc. -$5,310.00, 2013 Concrete Street Rehabilitation
project
• Walker Partners -$3,870.00, 2010 Water System Improvements project
• Carroll & Blackman, I nc. $1,049.7S, Phase II MS4 Permit
Implementation Services
4. REGULAR AGENDA
a. A motion was made by Mayor Pro Tern Albanese and seconded by Cou nci lmember
Austin to approve the purchase of radios, chargers, and accessories, in the
amount of $17,10S.8S, for the Nederland Police and Fire departments. These
items wi ll be purchased with 2012 SHSP grant funds. MOTION CARRIED.
Minutes Cont inued, July 8, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. A motion was made by Councilmember Rogers and seconded by Councilmember
Neal to approve a request from Sunoco Partners Marketing & Terminals L.P. for
an ad valorem tax abatement on the following:
ASSET PROJECTED COST
NED #2 Dock Loadina Conversion $10.500 000
Rail Extension and Loop Additions $4,500,000
Station Eau ioment -WTG Reversal $3.000,000
Tanks 1572 & 1573-Searated Tankaae Svstem $26.000 000
NED Kevstone XL Connection $28.000 000
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Rogers to award a bid to Bruce's General Construction in the amount of
$3,180,000 for the construction of the Homer E. Nagel Public Safety Complex.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 4:44 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 5:19 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
c. Mr. Waleed Khan provided an update to City Council regarding repairs to property
located at 2423 Nederland Avenue.
Chris Duque, City Manager, reported City Council allowed Mr. Khan to re-permit
and re-start the work on this commercial building; excluding the gas tanks,
within 14 days from April 23, 2013 or within 60 days beginning May 6, 2013 to
demolish the structure and clear the lot. Due to circumstances as reported by
Mr. Khan regarding scheduling his contractor and receiving final financing
approval, Mr. Duque recommended to extend the deadline to September 6, 2013
with the following conditions: keep the property mowed monthly, completely
remove all debris to include all wood, concrete (except the large piece imbedded
into the ground), remove the wooden dilapidated sign frame, keep the property
free of debris, and install neatly and securely around all openings barricade
fencing.
Minutes Continued, July 8, 2013
A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve the recommendation of the City Manager and his staff.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
7. COMMUNICATION
City Manager's Report:
a. Construction project update. Mr. Hamilton, Public Works Director,
reported work at the new city hall project is making good progress. Water
plant is almost complete except for the radio system. A pre-construction
meeting is scheduled for Thursday, July 11, 2013 for the concrete streets
project. The authorization to bid on asphalt streets project is scheduled to
come before City Council the first meeting in August.
9. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:38 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATIEST:
GiYfergus ,CJtY Clerk
City of Nederland, Texas
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian / -
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
July 8, 2013
Date
WORKSHOP OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
8 :15 a.m. July 9, 2013
1. MEETING
The workshop was called to order at 8: 15 a.m. by Mayor R. A. Nugent at the Marion
and Ed Hughes Public Library, 2712 N ederland Avenue, Nederland, Texas. See
attached for quorum.
2. PROPOSED BUDGET
Chris Duque, City Manager, stated that each department will present their
accomplishments, goals, and future needs to the Council relative to budgeting.
Following each presentation Mr. Duque reviewed the proposed 2013-2014 budget for
that department. The schedule was as follows:
Library
Public Works
Inspection Department
Fire Department
Parks Department
Human Resource
IT Department
Finance/Utility Billing
City Manager/Other Funds
8:20 a.m. to 8:30 a.m.
8:30 a.m. to 9:25 a.m.
9:25 a.m. to 9:35 a.m.
9:35 a.m. to 9:50 a.m.
10:40 a.m. to 11:00 a.m.
11:00 a.m. to 11:10 a.m.
11:10 a.m. to 11:20 a.m.
11:20 a.m. to 11:30 a.m.
11:30 a.m. to 12:40 p.m.
A discussion was held after each department presentation.
3. ADJOURN
There being no further discussion the Workshop was adjourned at 2:24 p.m. by
Mayor R. A. Nugent.
ATTEST:
Ga~®h2tV-
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor ·V
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v'
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance v
ro;t.fO
Darrell Bush J / ·, oo Police Chief
~·.35
Gary Collins t:j ·.56 Fire Chief
Steve Hamilton
~ .. ~ q '. ,..:; Director of Public Works
George Wheeler Building Official
~·. ~o
Victoria Klehn ~ ·.~"'> Librarian
11 : 00
Holly Guidry J J •, J 0 Human Resources Director
Joni Underwood Executive Secretary v
/0: 06
Angela Fanette M; YO Parks Director -
July 9, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. July 22, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Cou ncilmember Rogers.
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 Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-e as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
a. Minutes -July 8, 2013 regular meeting and July 9, 2013 workshop
b. June Departmental Reports
c. Tax Assessor Collector Report -June 2013
d. Consider action approving a request from Nederland ISD to utilize the Nederland
Recreation Center gymnasium for varsity volleyball practices.
e. Payments:
• Schaumburg & Polk, Inc. -$16,015.80, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, Inc. -$2,267 .SO, 2013 Concrete Street Rehabilitation
project
• LaBiche Architectural Group, Inc. -$999.35, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$45,581.25, Homer E. Nagel Public
Safety Complex project
4 . REGULAR AGENDA
a. Robert Sangster, Water Treatment Plant Supervisor, reviewed the 2012 Drinking
Water Quality Report (Consumer Confidence Report) that was recently mailed to
all customers. In accordance with EPA regulations all water suppliers are
required to issue the CCR to all its customers on an annual basis. He added that
Minutes Continued, July 22, 2013
the report shows that Nederland's water quality does not exceed maximum
allowable levels for any contaminates.
b. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve an Easement Agreement between the City of Nederland and GTA
Investment Company for a signage easement being a 0.0046 acre If land (200.0
S.F.) part of Lot 5, Block 17, Range "F", P.A.L.C.O. Subdivision, Jefferson County,
Texas. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
c. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2013-08, supporting a proposal · by Entergy
Texas, Inc. and ITC Holdings Corp. regarding the change of ownership and
control of transmission business, transfer of certification rights, and related relief
in Public Utility Commisison Docket N. 41223 upon the guarantee of enumerated
conditions. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
5. COMMUNICATION
City Manager's Report: Steve Hamilton reported substantial progress is being made
at the new city hall. Windows have been installed and brick layers are beginning this
week.
6. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers t o adjourn the meeting at 4:55 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
ATTEST:
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II \/
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney ·V
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official v
Victoria Klehn Librarian
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
July 22, 2013
Date
J. SHANE HOWARD
TAX ASSESSOR-COUECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $64,476.25, represents all taxes collected for CITY OF NEDERLAND during the
month of June 2013.·
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE • P.O. BOX 211 2 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-85 16 •FAX: (409)835-8589
2012 Annual
Water Quality R eport
(Consumer Confidence Report)
CITY OF NEDERLAND
Phone Number:
SPECIAL NOTICE
Required language for ALL community
public water supplies:
You may be more vulnerable than the general population to
certain microbial contaminants, such as Cryptosporidium, in
drinking water. Infants, some elderly or immunocompromised
such as those undergoing chemotherapy for cancer;
those who have undergone organ transplants; those who are
undergoing treatment with steroids; and people with aids
or other immune system disorders can be particularly at
risk of infections. You should seek advice about drinking
water from your physician or health care provider.
Additional guidelines are appropriate means to lessen the
risk of infection by Cryptosporidium and are available
from the Safe Drinking Water Hotline at (800) 426-4791.
Date:
Time:
Public Participation
Opportunities
July 22, 2013
4:30 p.m.
Location: 1400 Boston Avenue
Nederland City Hall
Phone Number: 409-723-1503
To learn about future public meetings (concerning your
drinking water), or to request to schedule one, please call us.
06/01/2013 TX1 230006
409-723-1540
Robert San ster, Water Plant Su ervisor
OUR DRINKING WATER
IS REGULATED
This report is a summary of the quality of the water we provide
our customers. The analysis was made by using the data fro m
the most recent U.S. Environmental Protection Agency (EPA)
required tests and is presented in the attached pages. We hope
this information helps you become more knowledgeable about
what's in your drinking water.
Source of Drinking Water
The sources of drinking water (both tap water and bottled water)
include rivers, lake~ streams, ponds, reservoirs, springs, and wells.
As water travels over the surface of the land or through the ground,
it dissolves naturally-occurring minerals and, in some cases,
radioactive material, and can pick up substances resulting from the
presence of animals or from human activity.
Contaminants that may be present in source water include:
Microbial contaminants, such as viruses and bacteria, which
may come from sewage treatment plants, septic systems,
agricultural livestock operations, and wildlife.
_ Inorganic contaminants, such as salts and metals, which can be
naturally-occurring or result from urban storm water runoff,
industrial or domestic wastewater discharges, oil and gas
production, mining, or farming.
_ Pesticides and herbicides, which may come from a variety of
sources such as agriculture, urban storm water runoff, and
residential uses.
_ Organic chemical contaminants, including synthetic and volatile
organic chemicals, which are by-products of industrial processes
and petroleum production, and can also come from gas stations,
urban Storm water runoff; and septic systems.
_ Radioactive contaminants, which can be narurally-<>eeurring or
be the result of oil and gas production and mining activities.
En Espanol
Este informe incluye informaci6n importante sobre el
agua potable. Si tiene preguntas o comentarios sobre
dste infore en espaiol, favor de liamar
altel, >--------
-para hablar con una persoill bilingue en espanol.
Where do we get our drinking water?
The TCEQ completed an assessment of your source water and results indicate that some of your sources are susceptible to certain
contaminants. The sampling requirements for your water system are based on this susceptibility and previous sample data. Any
detections of these contaminants may be found in this Consumer Confidence Report. For more information on source water
assessments and protection efforts at our system, contact Robert Sangster 409-723-1540.
ALL drinking water may contain contaminants
Our drinking water meets federal standards and there may not be any health benefits to purchasing bottled water or point of use devices. Drinking
water, including bottled water, may reasonably be expected to contain at least small amounts of some contaminants. The presence of
contaminants does not necessarily indicate that water poses a health risk. More information about contaminates and potential health effects can be
obtained by calling the EPA's Safe Drinking Water Hotline at
(1-800-426-4751).
Secondary Constituents
Many constituents (such as calcium, sodium, or iron) which are often found in drinking water, can cause taste, color, and odor problems. The taste
and odor constituents are called secondary constituents and are regulated by the State QfTexas, not the EPA. These constituents are not cause for
health concerns. Therefore, these constituents are not required to be reported in this document but they may greatly affect the appearance and taste
of your water.
Required Additional Health Information for Lead
If present, elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is
primarily from materials and components associated with service lines and home plumbing. We are responsible for providing high quality drinking
water, but we cannot control the variety of materials used in plumbing components. When your water has been sitting for several hours, you can
minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water for drinking or cooking. If you are
concerned about lead in your water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you
can talce to minimize exposure is available from the Safe Drinking Water Hotline or at http://www.epa.gov/safewater/lead.
Abbreviations
• NTU -Nephelometric Turqidity Units
• MFL-million fibers per liter (a measure of asbestos)
• pCi/L • picocuries per liter (a measure of radioactivity)
• ppm · parts per million, or milligrams per liter (mg.IL)
• ppb • pans per billion, or micrograms per liter
• ppt -parts per trillion, or nanograms per liter
• ppq • parts per quadrillion, or picograms per liter
Definitions
Maximum Contaminant Level Goal or The level of a contaminant in drinking v;ater below which there is no known or expected
MCLG: risk to health. MCLGs allow for a margin of safety.
Maximum Contaminant Level or MCL: The highest level of a contaminant that is allowed in drinking water. MCLs are set as
close to the MCLGs as feasible using the best available treatment technology.
Maximum residual disinfectant level The level of a drinking water disinfectant below which there is no known or expected
goal or MRDLG: risk to health. MRDLGs do not reflect the benefits of the use of disinfectants to rontrol
microbial contaminants.
Maximum residual disinfectant level or The highest level of a disinfectant allowed in drinking water. There is convincing
MRDL: evidence that addition of a disinfectant is necessary for control of microbial
contaminants.
Avg: Regulatory compli311ce with some MCLs are based on running annual average of
monthly samples.
ppm: milligrams per liter or parts per million -or one ounce in 7,350 gallons of water.
ppb:
nn:
Definitions:
05/29/2013
micrograms per liter or parts per billion· or one ounce in 7,350,000 gallons of water.
not applicable.
The following tables contain scientific terms and measures, some of which may require
explanation.
-TX1230006_2012_2013-05-29 _16-15-35.DOC
Lead and Copper
Definitions:
Action Level Goal (ALG): The level of a contaminant in drinking water below which there is no known or expected risk to health. ALGs allow margin of safety.
Action Level: The concentration of a contaminant which, if exceeded, triggers treatment or other requirements which a water system must follow.
Lead and Date MCLG Action 90th # Units Violation Likely Source of Violation Likely Source of
Copper Sampled Level Percentile Sites Contamination Contamination
(AL) Over
Copper 08/31/2010 1.3 1.3 0.27 0 ppm N Erosion of natural N Erosion of natural
deposits; Leaching deposits; Leaching
from wood from wood
Lead 08/31/2010 0 15 1.98 1 ppb N Corrosion of household N Corrosion of household
plumbing systems; plumbing systems;
Erosion of natural Erosion of natural
deposits. deposits.
R ltd C t t egu a e on amman s
Disinfectants and Collection Highest Level Range of Levels MCLG MCL Units Violation Likely Source of Contamination
Disinfection By-Products Date Detected Detected
Haloacetic Acids 2012 17 2 -35.9 No goal for 60 ppb N By-product of drinking water ... (HAAS)* the total disinfection.
~ Total Trihalomethanes 2012 9 2 -14.3 No goal for 80 ppb N By-product of drinking water
(TTHM) the total disinfection.
Inorganic Contaminants Collection Highest Level Range of Levels MCLG MCL Units Violation Likely Source of Contamination
Date Detected Detected
Barium 01/20/201 1 0.0455 0.0455 -2 2 ppm N Discharge of drilling wastes; Discharge from
0.0455 metal refineries; Erosion of natural deposits.
Nitrate !measured as 2012 0.08 0.08 -0.08 10 10 ppm N Runoff from fertilizer use; Leaching from
Nitrogen) septic tanks, sewage; Erosion of natural
deoosits.
Radioactive Collection Highest Level Range of Levels MCLG MCL Units Violation Likely Source of Contamination
Contaminants Date Detected Detected
Combined Radium 01/20/2011 1 J -1 0 5 pCi/L N Erosion of natural deposits.
226/228
Turbidity
Limit (Treatment Level Violation Likely Source of Contamination
Technique) Detected
Highest single measuremenl 1 NTU 0.47NTU N Soil runoff.
Lowest monthly % meeting 0.3 NTU 98.28% N Soil runoff. --limit
1Jn
1
formation Statement: Turbidity is a measurement of the cloudiness of the water caused by suspended particles. We monitor it because it is
ood indicator of water uali and the effectiveness of our filtration q ty g
05/29/2013 -TX1230006_2012_2013-05-29 _16-15-35.DOC
Maximum Residual Disinfectant Level
Systems must complete disinfection data on the Surface Water Monthly Operations Report (SWMOR). On the CCR
report, the svstem must provide disinfectant tvPe, minimum, maximum and average levels.
Disinfectant Average Min Max MRDL MRDLG Unit Source
Type Level Level Level
Chloramine 3.34 .63 4.9 4 4 ppm Disinfectant used to control
microbes
Total Organic Carbon
Total organic carbon (TOC) no health effects. The disinfectant can combine with TOC to form disinfection byproducts.
Disinfe.ction is necessary to ensure that water does not have unacceptable levels of pathogens. Byproducts of disinfection
include trihalomethanes (THMs) and haloacetic acids (HAA) which are reported elsewhere in this report.
Year Contaminant Average Minimum Maximum Unit of Source of Contaminant
Level Level Level Measure
2012 Source Water 11.7 4.40 31.6 ppm Naturally Present in the
Environment
05/29/2013 -TX1230006_2012_2013-05-29 _16-15-35.DOC
RESOLUTION NO. 2013-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, IN SUPPORT OF A PROPOSAL BY
. ENTERGY TEXAS, INC. AND ITC HOLDINGS CORP.
REGARDING THE CHANGE OF OWNERSHIP AND CONTROL
OF TRANSMISSION BUSINESS, TRANSFER OF
CERTIFICATION RIGHTS, AND RELATED RELIEF IN PUBLIC
UTILITY COMMISSION DOCKET NO. 41223 UPON THE
GUARANTEE OF ENUMERA TEO CONDITIONS
WHEREAS, on or about February 19, 2013 Entergy Texas, Inc. ("Entergy") and ITC
Holdings Corp. {"ITC Holdings") filed an Application for Approval of Change of
Ownership and Control of Transmission Business, Transfer of Certification Rights,
Certain Cost Recovery Approvals, and Related Relief with the Public Utility Commission
of Texas ("PUC" or "Commission") and docketed as PUC Docket No. 41223; and
WHEREAS, Entergy is a utility serving customers within the municipal limits of City
and regulated by the City; and
WHEREAS, ITC Holdings is the first, largest, and only publicly traded independent
transmission company in the nation; and
WHEREAS, City intervened as part of the Entergy Service Area Cities' Steering
Committee in Docket No. 41223 and filed expert testimony in opposition to Entergy's
and ITC Holding's Application, as originally filed, as the quantitative and qualitative
benefits of the transaction were not readily discernible and insufficient to offset the
anticipated transmission costs resulting from the transaction; and
WHEREAS, City's expert testimony determined that Commission could find that
the transaction is in the public interest by imposing the conditions listed below, the first
two of which guarantee that no transmission cost increase resulting from ITC Holding's
increased rate of return would be charged to customers in Texas without first finding
that the economic benefits of the transaction offset the increased transmission costs.
The conditions recommended by Cities' expert testimony are as follows:
1. ETl's customers should be left no worse off in terms of costs under the
transaction than under continued ETI ownership, and should be entitled to rate
refunds or credits if necessary to ensure this;
2. Any transmission-related cost increases must first be approved by Texas
regulatory authorities and must be offset by quantifiable transaction benefits;
3. ETl/ITC shaJJ not s.eek to recover any costs incurred to effectuate the ITC
transaction from its customers;
4. ITC shall assume all liabilities for unfunded retirement or other obligations such
as historical transmission storm damage;
5. ITC should be subject to applicable Texas or multi-state regulatory oversight to
the extent such oversight does not conflict with FERC regulation;
6. The PUCT should maintain input on transmission planning activities, and
ETl/ITC should support an oversight group similar to the existing Entergy
Regional State Committee;
7. ETI should keep the PUCT apprised of ITC transaction activities in other EOC
jurisdictions, and provide all transaction-related orders and updates, studies,
reviews, reports, and analyses as required under the orders;
8. ITC should provide the PUCT any periodic filings required by other regulatory
jurisdictions related to transmission system safety and reliability;
9. ITC should provide the PUCT a transmission-related vegetation management
plan to ensure continued maintenance of the Texas transmission system;
10. ETl/ITC should provide an emergency response plan that reflects coordination
and communication between ETI, ITC, PUCT and emergency responders; and
11. In the event any EOC or ITC Company commits to provide rate discounts or
concessions to customers in any other EOC jurisdiction, ETI and ITC ~ust offer
substantially the same concession to customers in Texas.
WHEREAS, on July 9, 2013, the Administrative baw Judges issued a Proposal for
Decision recommending against the transaction as proposed in the original application
and in the hearing on the merits in Docket No. 41223 and recommended that if the
Commission were to approve the transaction that the conditions listed in Cities' expert
testimony be imposed; and
WHEREAS, on July 3, 2013, Entergy and ITC filed the attached letter and
guarantees wit h the Cities and have agreed to satisfactorily address the Cities'
conditions;
WHEREAS, the Entergy Service Area Cities' Steering Committee had a meeting with
ITC and Entergy on July 10, wn, and received as.surances from both m: and Entergy
that the companies would abide by the commitments made in the July 3, 2013, letter.
The Steering Committee voted to support the proposed t ransaction with ITC and
Entergy guaranteeing commitments that address the conditions enumerated by Cities;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, THAT:
Section 1. That t he statement and findings set out in the preamble to this
resolution are hereby in all things approved and adopted.
Section 2. The City of Nederland hereby supports a public interest finding by
the Commission contingent on the approval of the terms and conditions that reflect the
commitments made by Entergy and ITC Holdings, which address the conditions set out
by the Administrative Law Judges and contained in Cities' expert testimony.
Section 3. The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 4. This resolution shall become effective from and after its passage.
PASSED AND APPROVED by the City Council of the City of Nederland, Texas,
this the 22nd day of July 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
2
R. A~ ~ent, Mayor
City of Nederland, Texas
THE LAWTON LAW FIRM, P.C. ·
12600 Hill Country Blvd., Suite R-275 • Austin, Texas 78738 • 512/32U>Ol9 • Fax: 855/298-7978
Via E-Mail
Mr. Richard Ferguson
City Attorney -City of Anahuac
13201 Northwest Freeway, Suite 300
Houston, Tex.as 77040 ·
Mr. Kyle Hayes
City Manager -City of Beaumont
P .0. Box 3827
Beaumont, Texas 77704
Ms. Dion Miller
City Manager -City of Cleveland
907 E. Houston
Clevelan4, Texas 77327
Mr. Kenneth Wall
City Attorney -City of Cleveland
Olson & Olson
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Felix Skarpa
Mayor -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. James Black
City Attorney -City of Groves
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
July 11, 2013
Mr. Tyrone Cooper
City Attorney-City·of Beaumont
P .0. Box 3827
Beaumont, Texas 77704
Mr. Paul Fukuda
City Attorney -Bridge City
260 Rachal
Post Office Box 846
Bridge City, Texas 7761 1
Mr. David Olson
City Attorney -City of Cleveland
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Tex.as 77019
Mr. Mark Winberry
City Attorney -City of Conroe
P .0. Box 3066
Conroe, Texas 77305
Mr. David Douglas
City Manager -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthur, Texas 77643
1
Ms. Tina Paez
City of Houston Administration & Regulatory
Affairs Department (ARA)
611Walker,10th Floor
Houston, Texas 77002
Mr. Leonard Schneider
City Attorney -City of Huntsville
· 2·Riverway, Suite 700
Houston, Texas 77056-1918
Mr. Gary Broz
City Manager -City of Liberty
1829 Sam Houston
Liberty, Texas 77575
Mr. Caxy Bovey
Law Office of Cary L. Bovey, PLLC
2251 Double Creek Dr., Suite 204
Round Rock, Texas 78664
Mr. Jesse Branick
City Attorney -City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, Texas 77627
Ms. Vicky Rudy
City Manager -City of Oak Ridge North
Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Shawn Oubre
City Manager -City of Orange
803 W. Green Avenue, Room 201
Orange, Texas 77630
Mr. Tommy Gunn
City Attorney -City of Pinehurst
202 S. Border
Orange, Texas 77630
Ms. Melba T. Pourteau
City of Houston Legal Department
P.O. Box 368, Houston; Texas 77001 -0368
City Hall Annex, 4th Floor
900Bagby
Houston, Texas 77001-0368
Mr. Matt Benoit
City Manager -City of Huntsville
1212Ave. M
Huntsville, Texas 77340
Mr. Bryan Fowler
City Attorney -City of Montgomery
101 Old Plantersville Road
Montgomery, Texas 77316
Mr. Brad Stafford
City Manager -City of Navasota
202 E. Washington
Navasota, Texas 77868
Mr. Christopher Duque
City Manager -City of Nederland
P.O. Box 967
Nederland, Texas 77627
Ms. Clasina Watson
City Secretary -City of Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Rodney Price
City Attorney -City of Pine Forest
City Attorney -City of Rose City
215 W. Freeway
Vidor, Texas 77662
Mr. Joe Parkhurst
City Administrator -City of Pinehurst
2497 Martin Luther King Jr. Drive
Orange, Texas 77630
2
Ms. Val Tizeno
City Attorney -City of Port Arthur
P.O. Box 1089
Port Arthur, Texa8 77640
Mr. Pete Steele
City Attorney -City of Port Neches
3120 Central Mall Drive
Port Arthur, Texas 77642
Mr. Greg Smith
City Manager -City of Shenandoah
29955 IH-45 N.
Shenandoah, Texas 77381
Mr. Tommy Bartosh
City Manager -City of Silsbee
105 South 3rd Street
Silsbee, Texas 77656
Mayor Dorothy Welch
City Attorney Leonard Schneider
City of Splendora
P.O. Box 1087
Splendora, Texas 77372
Mr. Guy N. Goodson
City Attorney-City of Vidor
P.O. Box 4915 ·
Beaumont, Texas 77704-4915
Mr. Joe Alford
City Attorney -City of West Orange
105 Market
Orange, Texas 77630
Mr, Floyd Johnson
City Manager -City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Andre Wimer
City Manager -City of Port Neches
634AvenueC
Port Neches, Texas 77651
Mr. Harry Wright
City Attorney -City of Silsbee
PO Box 186
Port Neches, Texas 77651
Mr. Larry Saurage
City Manager -City of Sour Lake
655 W .. Barkley St.
Sour Lake, Texas 77659
Mr. Ricky E. Jorgensen
City Manager -City of Vidor
1395 N. Main St
Vidor, Texas 77662-3726
Mayor Roy McDonald
Mayor -City of West Orange
2700 Western Avenue
West Orange, TX 77630
Michael S. Stelly
City of West Orange, Texas
2700 Austin Avenue
West Orange, TX. 77630
Re: Resolution Supporting a· Finding of Public Interest in Entergy and ITC Holding's
Proposed Transfer, Merger, and Spin-off of Tr~ssion Business from Entergy
to ITC Holdings
Dear Cities:
Each City should have received a July 3, 2013, letter from Entergy Texas, Inc.
("Entergy'') and ITC Holdings' ("ITC Holdings") setting forth the terms and guarantees agreed
3
to by Entergy and ITC Holdings' in return for the Cities' anticipated support of the proposed
transfer of Entergy's transmission business to ITC Holdings. In the July 3, 2013, letter, Entergy
and ITC agree to abide by the conditions of transfer recommended by Cities' expert testimony
and guarantee that no transmission cost increase caused by ITC ownership of the system would
be charged to Texas customers without first demonstrating that the quantifiable benefits resulting
from the transaction more than offset the increased transmission costs associated with ITC's rate
setting formula.
Tue Steering Committee of Cities met on Wednesday, July 10th from 10 am to noon at
Beaumont City Hall to discuss the issues raised by this case, the terms and guarantees set forth in
Entergy's and ITC Holdings' July 3, 2013, letter to Cities, and the process for moving forward.
Representatives from Entergy and ITC were also present and reiterated the rate guarantees
contained in the July 3, 2013, letter to Cities. The Steering Committee of Cities voted to support
a finding of public interest for the Commission's consideration of the proposed transfer of
Entergy' s transmission business to ITC Holdings conditioned upon the terms and guarantees
contained in the letters to Cities. Attached is a prop0sed resolution for the City supporting a
finding of public interest by the Public Utility Commission of Texas ("PUC" or "Commission")
conditioned upon those terms and guarantees.
By way of background, on February 19, 2013, Entergy and ITC filed with the PUC the
Application for Approval of Change of Ownership and Control of Transmission Business,
Transfer of Certification Rights, Certain Cost Recovery Approvals, and Related Relief. The
Cities intervened and filed testimony opposing the application as originally filed and amended by
Entergy and ITC Holdings through their rebuttal testimony. Cities' expert testimony set out a
cost benefit analysis concluding that the benefits of the transaction were not discernible at this
time and were not guaranteed to offset the known quantifiable transmission cost increases to
customers. Cities' expert testified that a public interest finding could be met if the Commission
imposed conditions-including a condition that no cost increase resulting from ITC Holding's
ownership of the transmission business would be permitted to be charged to Texas customers
without first finding that the quantifiable economic benefits of the transaction outweigh the
anticipated cost increases resulting from the spread between ITC Holding's overall rate of return
relative to Entergy's overall rate ofreturn.
On July 9, 2013, the Administrative Law Judges hearing the case agreed with Cities'
expert testimony that the proposal as originally filed by Entergy and ITC Holdings and amended
by Entergy and ITC Holdings through rebuttal testimony is not in the public interest. The
Administrative Law Judges also agreed that if the Commission were to approve the proposed
transaction, the Commission should impose the conditions listed in Ci:ties' expert testimony.
The major issues raised by Cities' case involve the transmission cost increases as a result
of the rates anticipated to be approved by the Federal Energy Regulatory Commission, the
projected benefits to be received as a result of ITC ownership, the oversight afforded to the
Texas Regulatory Authorities, including Cities, of the transmission business, the quality of
service from ITC, and the ability to perform and finance necessary storm restorations. The
proposed conditions and terms attached to Entergy and ITC Holdings' July 3, 2013, letter
4
guarantee no adverse rate impact will result from the transaction and substantially resolve the
remaining issues raised in the expert testimony of Cities' witness in the proceeding.
In addition to the rate commitments and conditions listed in Cities' expert testimony,
Entergy has committed to providing customers a $13 .1 million credit over the first three years
following the transaction close. This $13 .1 million credit is intended to offset the timing
difference of going from a historical test year under Texas regulation to a forward looking test
year under the FERC regulatory model.
There is no question that the Texas transmission system requires substantial investment
over the coming years whether owned by Entergy or ITC Holdings. There is also no question
that because of increased investment the Texas transmission rates will increase as well, whether
Entergy or ITC owns the system. ITC is anticipated to make more investment in the
transmission system than Entergy has in the past and more than Entergy is anticipated to make in
the future. The increased investment should make the system more reliable from a quality of
service standpoint As part of the terms and guarantees, Entergy and ITC have also committed to
providing the Commission and Cities with their joint emergency response plans and vegetation
management plans within 180 days of the closing of the transaction. ITC also commits to filing
with the Commission and Cities its system hardening plans to invest in the transmission system
in an effort to prevent major damage resulting from Hurricanes and other natural disasters.
ITC will operate subject to and in compliance with all state statutes and regulations that
apply to it as an electric transmission only public utility in Texas. On an ongoing basis, and at
least annually regarding its annual capital investment program, ITC will share with the
Commission information about its planned or proposed transmission projects, including the
rationale for planned or proposed projects, currently anticipated timing and cost of construction,
and other material information about such projects. In addition, ITC will respond to inquiries
from the Commission regarding its transmission projects, will be open to and consider input
from the Commission regarding its transmission prc)ject plans, and support the Commission's
active participation in the regional transmission planning process. ITC will solicit input from the
Commission regarding transmission projects that should be studied and pursued. ITC will
collaborate with the Commission to pursue such projects. ITC will also take appropriate actions
to study and construct such projects that fulfill ITC's transmission planning criteria and ensure
such projects are approved through the necessary RTO planning processes and receive other
necessary regulatory approvals.
These are some of the commitments made by Entergy and ITC in the terms and
guarantees attached to Entergy's and ITC Holding's July 3, 2013, letter to Cities. Entergy and
ITC Holdings are asking Cities for their support of a finding by the PUC that the proposed
transaction is in the public interest conditioned upon the terms and guarantees provided to Cities.
We are attaching the proposed resolution supporting a finding of public interest for the proposed
transfer, merger, and spin-off of transmission business from Entergy to ITC Holdings
conditioned upon the Commission's approval of the terms and guarantees required by Cities and
agreed to in Entergy and ITC's July 3, 2013 letter to Cities.
5
If there are any questions or concerns, please do not hesitate to call.
Sincerely,
P~J~i1~
Daniel J. Lawton
6
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4 :30 p.m. August 12, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Marion and Ed
Hughes Public Library, 2712 Nederland Avenue, Nederland, Texas. See attached for
quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 w ill be removed from the Consent agenda and considered separately.
A· motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -July 22, 2013 regular meeting
b. June 2013 Departmental Reports
c. Consider action approving t he Internet Use Policy for the Marion & Ed Hughes
Library.
d. Payments:
• July 2013 monthly bills
• Allco, Inc. $4,024.43, 2013 Nederland Water Treatment
Repairs/Improvements project
• Carroll & Blackman, Inc. -$546.00, Phase II MS4 Permit Implementation
Services
• Bruce's General Construction -$19,261.25, 2013 Concrete Street
Rehabilitation project
• Bruce's General Construction. -$63,900.00, Homer E. Nagel Public Safety
Complex project
• Walker Partners -$603.46, 2010 Water System Improvements project
4. REGULAR AGENDA
a. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to declare surplus miscellaneous city equipment. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Minutes Continued, August 12, 2013
Noes: None.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve donating certain surplus city equipment to the Nederland
Economic Development Corporation and the Amateur Radio Club ARES/RACES.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. Bids:
i. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve an award for the Hurricane Ike Round 2.2 Traffic Signal
Lights/Signs project to Traf-Tex, Inc. in the amount of $391,165.00. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Albanese to approve an award for the Hurricane Ike Round 2.2 Wastewater
Treatment System generators project to A & A Electric Company of Beaumont in
the amount of $571,966.75. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve final payment and release of retainage to Allco, Inc. -18th Street
Water Line Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e . A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve Change Order No. 1 ( +$3,844.13) for the Nederland City Hall
project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Rogers and seconded by Councilmember
Neal to approve a Collective Bargaining Agreement with the Nederland Police
Officers' Association. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g . A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve a Collective Bargaining Agreement with the International
Association of Firefighters, Loca l 3339. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
h. Budget:
Chris Duque, City Manager, reviewed the proposed 2013-2014 annual budget.
He proposed maintaining the existing tax rate of $0.591853 per $100 assessed
taxable value, which is lower than the effective tax rate of $0.593395 and the
rollback tax rate of $0.643094. The General Fund is balanced with a total of
Minutes Continued, August 12, 2013
revenues and expenditures equaling $9,265,080. The revenues and expenditures
represent an increase of 3.1% compared to the amended FY 12-13 budget. The
proposed budget includes a 2% COLA in all funds for all regular, full-time
employees, including firefighters and police officers as per their respective
Collective Bargaining Agreements. The Street Program will receive a total of
$851,000: $275,000 for Street Improvements in the Street Department and
$576,000 budgeted via the Street Improvement Fund. Mr. Duque noted that the
budget includes a $25,000 book budget for the Library and $17,000 for AC
replacement at the Library; $145,000 for street lights; $27,000 for the Senior
Citizen Center; $30,000 for Retiree Insurance to fund a flat rate contribution for
new retirees; $25,000 for Retiree Accrued Compensation; $75,000 for Special
Programs to pay youth athletic league reimbursements and fund Christmas on
the Avenue, Trash Bash, National Night Out, 4th of July, softball field
maintenance, pool maintenance, and purchase of Christmas decorations. The
Water and Sewer Fund revenue and expenditures equal $4,297 ,600. Mr. Duque
reported that revenues will remain flat and that no rate increase is being
proposed. The Solid Waste expenditures are expected to exceed revenue by
$125,000.00 which will fund necessary equipment replacement. This budget
proposes a $2.20 rate increase ($17.00 -$19.20). Waste Disposal costs remain
low due to revised contract with BFI/ Allied Waste and Green Waste Disposal costs
remain low due to chipping program versus incineration. In the equipment fund
$133,400 was allocated for the purchase of 2 Police patrol units, $32,500 for air
compressor and Utility Billing Truck, and $550,000.00 for 2 garbage trucks;
utilizing $25,000 from Equipment Replacement Fund -Solid Waste fund balance.
i. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2013-09, authorizing the City of Nederland
Annual Budget for the fiscal year beginning October 1, 2013 and ending
September 30, 2014, and calling for a Public Hearing to be held on August 26,
2013 at 4:30 p.m. 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 Rog_ers.
Noes: None.
ii. Chris Duque, City Manager, reported the current tax rate is $0.591853, which
is the lowest tax rate among mid and south county cities. The effective tax rate
has been calculated as $0.593395 and the rollback rate has been calculated as
$0.643094. Mr. Duque recommended that City Council consider maintaining the
tax rate of $0.591853 per $100 assessed valuation ($.0015 or 0.25% less than
the effective tax rate.) He explained anticipated flat sales tax revenue, declining
interest income, and minimal to flat appraisal growth in the property taxes, that
adjusting the tax rate could have long-term financial consequences. However
with a minimal difference in the effective tax rate and the existing tax rate, he
recommended maintaining the existing rate. He added taxes are being cut for
the majority of Nederland taxpayers. Mr. Duque advised the proposed tax rate of
$0.591853 does not necessitate public hearings and publications before adoption.
He requested that City Council hold one public hearing to allow taxpayers to voice
their opinions and/or concerns. No action is necessary.
iii. A motion was made by Councilmember Austin and seconded Mayor Pro Tern
Albanese to adopt the budget and tax rate at 4:30 p.m. on September 9, 2013.
MOTION CARRIED.
Minutes Continued, August 12, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
iv. A motion was made by Councilmember Rogers and seconded by
Councilmember Austin to authorize one Public Hearing at 4:30 p.m. on August
26, 2013 at the Marion and Ed Hughes Public Library to receive questions and/or
comments regarding the proposed tax rate. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers, Austin, Neal, Albanese, and Rogers.
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5: 11 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 5:36 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
7. COMMUNICATION
City Manager's Report: Mr. Duque reported concrete rehabilitation work is
continuing on Helena Avenue. Hot Mix Overlay project is ready to begin with pre-bid
being scheduled for next week. The new City Hall has been painted, vault has been
installed, and electricity is being scheduled for the building. Asbestos abatement has
been completed in the Police and Fire Departments at the Homer Nagel Public Safety
Complex. Demolition is beginning.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:45 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I J
Billy Neal Council Member -Ward II ·I
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney V'
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works , v
George Wheeler Building Official ·v·
Victoria Klehn Librarian J
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director J
August 12. 2013
Date
-------------~----------------.
CJTY OF NEDERLAND
RESOLUTION 2013-09
A RESOLUTION BY iHE CITY COUN'Cl l OF THE
CITY OF NEDERLAND, TEXAS ACCEPTING THE
BUDGET FOR THE CITY OF NEDERLAND AS
PREPARED AND SUBMITIED BY THE CITY
MANAGER, SUCH BUDGET COVERING THE
FISCAL YEAR BEGINNING OCTOBER 1, 2013
AN.PENDING SEPTEMBER 30, 2014.
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, 2013 and ending September 30, 2014;
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 fiscal year 2013-2014, 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
26, 2013 at the Marion & Ed Hughes Public Library (2712 Nederland Avenue), to
approve this budget in the proposed or amended form in accordance with Article VII of
the City Charter.
PASSED AND APPROVED this the 1ih day of August, 2013.
ATTEST:
G'ay Fergon, City CIH<
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
.,.._.
RAN-ent,Miyor
City of Nederland, Texas
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. August 26, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Marion and Ed
Hughes Public Library, 2712 Nederland Avenue, Nederland, Texas. See attached for
quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-e as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -August 12, 2013 regular meeting
b. july 2013 Departmental Reports
c. Tax Assessor Collection Report -July 2013
d . Consider action regarding a request from t he Mid-County Noon Optimist Club to
waive fees associated with the scheduled Cross Country Meet at Doornbos Pa rk/
e. Payments:
• Carroll & Blackman, Inc. $1,304.33, Phase II MS4 Permit
Implementation Services
• Bruce's General Construction -$185, 796.00, Nederland City Hall project
• Schaumburg & Polk, Inc. -$36,437 .24, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, Inc. -$4,075.00, 2013 Concrete Street Rehabilitation
project
• LaBiche Architectural Group, Inc. -$3,197.92, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$1,638.45, Homer E. Nagel Public
Safety Complex project
4. REGULAR AGENDA
a. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to declare surplus m iscellaneous city equipment. MOTION CARRIED.
Minutes Continued, August 26, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve donating certain surplus city equipment to the Jefferson
County Peace Officers' Association. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. Grants:
i. A motion was made by Councilmember Rogers and seconded by Mayor Pro
Tern Albanese to approve the submittal of a 2013 AFG Staffing and Adequate Fire
and Emergency Response grant. MOTION CARRIED.
Ayes: Mayor Nugent, Council members Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Austin and seconded by
Councilmember Neal to approve the submittal of a grant application to the Wilton
and Effie Mae Hebert Foundation. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austln, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to postpone action regarding the agreement between the City of
Nederland and the Nederland Chamber of Commerce regarding expenditure of
hotel occupancy tax funds. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to grant Seaway Crude Pipeline Company, LLC temporary access to the
City's private Kansas City Southern Railway Company's railroad crossing subject
to legal review and approval of agreement: MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g . Budget:
i . The regular meeting was recessed and a Public Hearing was called to order at
4:41 by Mayor Nugent for the purpose of receiving comments regarding the
proposed City of Nederland Fiscal Year 2013 -2014 Annual Budget.
There being no further questions and/or comments, the Public Hearing was
adjourned and the regular meeting was reconvened at 4:42 by Mayor Nugent.
ii. The regular meeting was recessed and a Public Hearing was called to order at
4:42 by Mayor Nugent for the purpose of receiving comments regarding the
proposed tax rate of $0.5918353/$100 assessed valuation for the fiscal year
2013 -2014.
Mayor Nugent announced the budget and tax rate will be approved on September
9, 2013 at 4:30 p.m. There being no further questions and/or comments, the
Public Hearing was adjourned and the regular meeting was reconvened at 4:43
p.m.
Minutes Continued, August 26, 2013
iii. A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve Ordinance No. 2013-14, utility rates and regulations.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmernbers Austin, Neal, Albanese, and Rogers.
Noes: None.
S. EXECUTIVE SESSION
The regular meeting was recessed at 4:59 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.071, Consu ltation with City Attorney, and Chapter 551.087, Deliberation
Regarding Economic Development Negotiations.
6. RECONVENE
The regular meeting was reconvened at 5:51 p.m. by Mayor Nugent.
f. A motion was made by Mayor Pro Tern Albanese and seconded by Council member
Austin to postpone possible action regarding the proposed First Amendment to
the Amended and Restated Wastewater Treatment Plant Operation and
Maintenance Agreement between Severn Trent Environmental Services, Inc. and
the City of Nederland until city staff and legal can review. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
7. COMMUNICATION
City Manager's Report: Mr. Hamilton reported demolition is on-going at Police
Station and a minor issue with Dispatch has required a temporary relocation. The
correct windows are due in tomorrow for the new City Hall.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:55 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
Ga/Fel"9uw, citi c1er
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v
Talmadge Austin Council Member -Ward I J
Billy Neal Council Member -Ward II /,
Don Albanese Council Member -Ward Ill //
Bert Rogers Council Member -Ward IV v/
Chris Duque City Manager v
/
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief /
Steve Hamilton Director of Public Works ../
I
George Wheeler Building Official v
Victoria Klehn Librarian ~
i
Holly Guidry Human Resources Director J
Joni Underwood Executive Secretary v:
Angela Fanelle Parks Director ./
August 26, 2013
Date
J. SHANE HOW ARD
TAX ASSESSOR-COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $66,386.13, represents all taxes collected for CITY OF NE DERLAND during the
month of July 2013.
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE • P .O. BOX 2112 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589
ORDINANCE NO. 2013-14
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS ESTABLISHING WATER AND SEWER
RATES, WATER METER DEPOSITS, WATER AND SEWER
CONNECTION FEES, WATER AND SEWER MAINTENANCE
FEES, TRASH REMOVAL, AND GARBAGE RATES, AND
PROVIDING FOR THE ADDITION OF STATE MANDATED
SALES TAX TO THE GARBAGE PORTION OF THE RATE,
INSIDE AND OUTSIDE THE CITY OF NEDERLAND, TEXAS,
AND FURTHER PROVIDING FOR INTEREST PENAL TIES, RE-
CONNECTION CHARGES, .TRANSFER FEES, AND RETURNED
CHECK FEES AND REPEALING ORDINANCE NO. 2012-10.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS:
WHEREAS, a revision should be made in the rates for utility services now being
charged by the City of Nederland, Texas, inside the city limits and outside the city limits.
SECTION 1. Repeal of Prev_ious Ordinances and Regulations.
1: All other ordinances and/or regulations governing City of Nederland (CITY) water
and sewer service in conflict with this ordinance are hereby repealed when this
ordinance takes effect, provided, however, the repeal of prior ordinances does not
waive, excuse, or vacate any balances due for water services. provided hereunder
and the CITY may collect such balances due.
SECTION 2. Water and Sewer Systems.
1. The water system and sewer system are public utilities operated and maintained by
the CITY. The systems shall be operated in accordance with ordinances and
policies adopted by the CITY, State law, and/or Federal law. Subject to such
requirements, the City Manager may make such reasonable regulations as to
govern the water and sewer systems to ensure their continued operation.
2. For the purpose of this ordinance, the terms "water service" and "utility service"
shall be inclusive of water service, sewer service, and garbage/trash services as
provided by the CITY.
3. For the purpose of this ordinance, the term "customer" shall mean the person
responsible for payment and/or all persons acting for him/her or by his/her direction.
SECTION 3. Application for Water Service.
1. Any person and/or business desiring to obtain water service from the CITY shall
make application on a form supplied by the CITY. The application shall include:
a) name of the individual to be responsible for the payment of utility service
b) the social security number of the individual responsible for payment
c) the driver's license number
d) the applicant's employer
e) the applicant's work telephone number
f) address to be served
g) address, if different from the service address, to which bills are to· be sent
h) home telephone number
i) the signature of the individual responsible for payment
j) proof of identification
.---'----------------------------------------------
2. The person responsible for the payment of utility service shall agree that he/she will
abide by all ordinances, rules, policies, and/or regulations governing water and
sewer service provided by the CITY.
SECTION 4. Installation of Service.
1. No private service lines shall be connected or tapped to any CITY water line unless
a meter is installed by the CITY at that connection.
2. No private service lines shall be connected to any CITY sewer line unless the
connection/tap has been made and/or approved by the CITY.
3. Not more than one (1) premise may be connected to any 1 water and/or sewer tap.
Exceptions may, however, be granted to this stipulation for situations involving a
master meter to serve apartment complexes, mobile home parks, etc.
4. No person shall make or permit to be made any subsidiary connection of another's
premises with his/her water or sewer service.
5. If approved by the CITY, additional water services may be provided to residences
and/or businesses for water to be utilized for purposes such as outside watering,
swimming pools, etc. In this situation, water provided by such separate service will
not be discharged through the CITY's sewer system.
SECTION 5. Water Connection/Taps.
1. The CITY reserves the right to tap existing CITY water lines, set water meters, and
require use of CITY taps and meters.
2. Any individual or business desiring a water tap shall make said request to the CITY.
If said request, in the CITY's opinion, is beneficial to the CITY and/or does not
endanger the existing water line and/or water system, the CITY shall provide all
materials, labor and equipment to tap the existing water line.
3. The CITY shall make the final determination as to the location of the water tap.
4. The water connection fees are as follows:
3/4" Water Tap
1" Water Tap
1 Yz" Water Tap
2" Water Tap
Over 2" Water Tap
Inside City
(No Street Excavation)
$ 350.00
450.00
650.00
1,400.00
Cost
Outside City
(No Street Excavation)
$ 525.00
675.00
975.00
2,100.00
Cost x 1.5
If street excavation is required, the following fees will be assessed in addition to the fees
listed above:
Additional Cost for Street Excavations
Length Asphalt Concrete
1' -10' $200.00 $ 300.00
11' -20' 375.00 550.00
21 ' -30' 525.00 675.00
31 ' -40' 700.00 875.00
41 ' -50' 850.00 1,050.00
(
'~------
5. In return for payment of such fee, the CITY shall tap the existing CITY water line
and install a water meter. The fee does not include the cost of the meter deposit as
provided in Section 7.
SECTION 6. Sewer Connection/Taps.
1. The CITY reserves the right to tap existing CITY sewer lines.
2. Any individual or business desiring a sewer tap shall make said request to the
CITY. If said request, in the CITY's opinion, is beneficial to the CITY and/or does
not endanger the existing sewer line and/or sewer collection system, the CITY shall
provide all materials, labor and equipment to tap the existing sewer line.
3. The CITY shall make the final determination as to the location of the sewer tap.
4. The sewer connection fees are as follows:
8" depth/width or less Inside City Outside City
(No Street Excavation) (No Street Excavation)
4" Sewer Tap $200.00 $300.00
6" Sewer Tap 300.00 450.00
8" Sewer Tap 400.00 600.00
8" depth/width or more Inside City Outside City
(No Street Excavation) (No Street Excavation)
4" Sewer Tap Cost Cost x 1.5
6" Sewer Tap Cost Cost x 1.5
8" Sewer Tap Cost Cost x 1.5
If street excavation is required, the following fees will be assessed in addition to the
fees listed above:
Additional Cost for Street Excavations
Length Asphalt Concrete
1' -10' $200.00 $ 300.00
11 ' -20' 375.00 550.00
21' -30' 525.00 675.00
31' -40' 700.00 875.00
41' -50' 850.00 1,050.00
SECTION 7. Water Meter and Garbage Container Deposits.
1. In order to establish water, sewer, and garbage service, an applicant for said
services shall be required to pay a deposit to the CITY in accordance with the
following schedule (excludes residential rental property in renter/tenant's name):
Inside City Outside City
3/4" and Smaller Water Meter $100.00 $100.00
1" Water Meter
1 ~ " Water Meter
1 ~ " Water Meter
2" and Larger Water Meter
150.00
200.00
250.00
300.00
150.00
200.00
250.00
300.00
2. Residential Rental Property Deposit: In order to establish water, sewer, and
garbage service, an applicant, who is not the property owner, for said services shall
be required to pay a deposit to the CITY in accordance with the following schedule
(excludes apartment complexes and duplexes without individual water meters for
each unit):
Inside Ci~ Outside Ci~
3/4" and Smaller Water Meter $150.00 $150.00
1" Water Meter 200.00 200.00
Elevated Risk Account 250.00 250.00
Definition: Renter/Tenant/Properly that has 2 disconnect/reconnect
services for late or non-payment during the 24 months prior to setting up a
new service.
3. In order to be provided with an additional garbage container, which shall be limited
to one additional garbage container per account, an applicant shall be required to
pay an additional deposit of $75.00. No deposit will be required if customer has
paid his bill in full by the due date specified on each individual bill for a period of
twelve (12) consecutive months immediately prior to the request for an additional
garbage container.
SECTION 8. Application of Deposit
1. Upon the termination of water service, at the request of the customer, the deposit' or
any portion of the deposit remaining shall be returned to the customer when water
and all other charges have been paid.
2. Current customers, who have service in their name, who continue to maintain utility
service and who have, each month, paid their bill in full and by the due date
specified on each individual bill for a period of 12 consecutive months shall, at their
request, be refunded the full amount of their deposit.
3. Tenants, who rent residential property from a property owner that elected to not
have service in their own name, shall be refunded the full amount of their deposit if
they continue to maintain utility service and pay their bill in full and by the due date
specified on each individual bill for a period of twenty-four (24) consecutive months.
4. Service accounts established for those individuals or residential rental properties
classified as "Elevated Risk" shall not be refunded any portion of their deposit until
water service is terminated.
SECTION 9. Previous Service -Outstanding Balance.
Any applicant requesting water service from the CITY who has previously had CITY
water service and has, at the time of application, an outstanding balance on his/her
previous water service must pay the outstanding balance in full in addition to the meter
deposit prior to receiving new service.
SECTION 10. Water Rates.
The following monthly rates shall be charged for water service:
First 2,000 Gallons (minimum)*
Each additional 1,000 gallons** (up
to 50,000 gallons)
Inside City
$ 8.95
2.55
Outside City
$ 13.45
4.30
Each additional 1,000 gallons
above 50,000 gallons
Water Line Maintenance -
per 1,000 gallons (above minimum)
2.56 4.31
0.30 0.30
• Effective July 1, 2007, where water service is provided to multiple units served by
one meter, the minimum rate for the first 2,000 gallons will be charged for each unit
based upon ninety percent (90%) occupancy of the total number of units.
•• Except as required by provisions of outside CITY contracts.
SECTION 11. Sewer Rates.
The following monthly rates shall be charged for sewer service:
Inside Ci!z'. Outside Ci!z'.
First 2,000 Gallons (minimum)* $ 9.10 $ 14.90
Each additional 1,000 gallons•• 3.00 4.45
(up to 50,000 gallons)
Each additional 1,000 gallons 3.01 4.46
above 50,000 gallons
Water Line Maintenance -0.30 0.30
per 1,000 gallons (above minimum)
• Effective July 1, 2007, where water service is provided to multiple units served by
one meter, the minimum rate for the first 2,000 gallons will be charged for each unit
based upon ·ninety percent (90%) occupancy of the total number of units.
•• Except as required by provisions of outside CITY contracts.
SECTION 12. Garbage Rates.
All residences inside the CITY limits shall be required to use the CITY garbage service
in accordance with the following schedule:
Inside City Rates (per month)
Additional Container
$ 19.45 +sales tax•
$ 5.25 + sales tax*
• Sales tax shall be in an amount required by law
SECTION 13. Billing and Penalty.
1. All charges on utility service bills shall be due and payable to the CITY fifteen (15)
days after the date the bill is mailed to the person responsible for payment.
2. If payment is not received by the sixteenth (16th) day, a ten percent (10%) penalty
shall be assessed.
3. Notwithstanding the prov1s1ons of 1 and 2 above, in accordance with Section
182.002 of the Texas Utilities Code, the 10% penalty shall not be applied to
persons age 60 or older until the 25th day after the date on which the bill was
issued, provided that such person has made a request for delay, presented
reasonable proof of their age, and is a residential customer who has occupied, and
shall continue to occupy, the entire premises for which a delay is requested.
4. Should the 15th day fall upon a weekend, holiday, or any day that the City Hall
6uilding is closed, a grace period of two (2) days shall be granted,
SECTION 14. Delinquency -Termination of Service.
1. If full payment is not received by the CITY by the next date at which the water meter
is read; a subsequent utility bill shall be mailed for the current reading plus the
amount -owed on the previous billing including the 1-0% perialty; th-is ·does not apply
to residential rental property classified as "Elevated Risk."
2. If full payment is not received on the date on which the subsequent utility bill is due,
all utility service shall be disconnected. A final written notice shall be mailed to the
customer's premises on the Thursday following the due date lndfcatiflg that servfces
shall be disconnected on the Wednesday immediately following the issuance of
such notice.
3. For all residential rental properties classified as "Elevated Risk;" if full payment is
not receiv€d by the CITY by the due date, all utility service shall be disconnected.
A final written notice shall be mailed to the customer's premises on the Thursday
following the due date indicating that services shall be disconnected on the
Wednesday immediately following the issuance of such notice.
SECTION 15. Re-connection Charges.
1. Should utility service be discontinued due to non-payment of a utility bill, all funds
due to the CITY, in addition to a re-connection fee shall be paid prior to
reinstatement of utility service. The re-connection fee shall be $30.00 if
reinstatement of utrnty service is requested during working hours (8:00 a.m. to 4:30
p.m., Monday through Friday). The re-connection fee shall be $100.00 if
reinstatement of utility serviee is· requested after working hours. If customer does
not have a $200 deposit on file, he will be required to pay a deposit in addition to
the account balance and reconnection fees before utility service is reconnected.
2. Should service be discontinued, the CITY shall install a lock on the water meter.
'Should the customer or any person tamper with the lock and damage it, a $200.00
fee shall be assessed. This fee shall be paid, in addition to all other charges, prior
to reinstatement of service.
3, Should any person turn on water service; after the CITY has discontinued the
service for non-payment, such action shall be considered a criminal offense.
4. Should a customer be repeatedly disconnected due to non-payment, the CITY may
require the following:
a) Payment for the delinquent bill in the form of cash, money order, and/or
cashier's check.
b) The CITY retains the option of requiring payment for utility bills by cash, money
order, and/or cashier's check for all future utility billings.
5. If payment is made with a check returned insufficient funds due to the issuance of a
disconnection notice, water will be immediately disconnected.
SECTION 16. Transfer Fee.
A transfer fee, in the amount of $15.00, shall be assessed for transferring service within
the CITY's utility service system. The current and final balance, if any, on the account
transferred plus $15.00 will be added to the customer's new account.
SECTION 17. Returned Check Fees.
1. Any customer who pays his/her utility bill with a check which is returned from the
financial institution due to, but not limited to, insufficient funds and/or closed
account sl:lall be assessed a $30.00 fee.
2. The CITY may, at the request of the customer, re-run the check. If the check is
accepted, the fee shall be waived. However, if the check continues to be returned,
the CITY shall require that the bill be paid by cash, money order, or cashier's check.
3. The CITY retains the right to prosecute for returned checks in accordance with the
Texas Penal Code.
4. If a check is returned unpaid due to the financial institution error, the financial
institution shall submit written verification of such error. In this situation, the fee
shall be waived .
5. Should a customer have more than two (2) checks returned due to insufficient funds
and/or closed account within a period consisting of twelve (12) consecutive months,
the CITY shall no longer accept checks from that individual for a period of 24
months. During the 24 month period, all payments shall subsequently be made in
the form of cash, money order, and/or cashier's check.
SECTION 18. Temporary Service.
1. Should a customer request temporary service, no deposit shall be required, unless
the customer is in arrears on other accounts.
2. The duration of such temporary service shall not exceed fifteen (15) calendar days.
Customer shall be billed for actual usage.
3. Should the account become delinquent, the customer shall not be allowed to begin
any new service until all delinquent monies are paid.
SECTION 19. Failure to Receive a Bill.
1. All bills for utility service shall be rendered monthly in accordance with a· schedule
established by the CITY. The CITY shall exercise care in the delivery of utility bills,
but is NOT responsible for the service provided by the United States Postal Service.
2. Failure to receive a bill shall not relieve the customer for payment of service
received within the prescribed period nor exempt him/her from the responsibility
imposed for delinquent accounts.
SECTION 20. Deferred Payments.
1. The City Manager and/or his/her designee shall be empowered to develop payment
schedules should a customer be unable to pay his/her bill. The City Manager may
not develop payment schedules should a customer be unable to pay his/her bill if
the outstanding balance is greater than $500.00.
2. Should a customer not be able to pay his/her account by the due date, he/she must
contact the CITY .prior to the due date and request that a payment schedule be
developed.
3. Should a customer not contact the CITY prior to the issuance of a disconnection
notice, he/she shall be required to pay the entire amount of the bill in order to retain
water service.
4. The customer and the CITY may develop a payment schedule which shall be
documented on a form supplied by the CITY. This form shall include, but not be
limited to, the following information:
a) dates of future payments;
b) amounts of future payments; and
c) signature of the customer.
Should the customer subsequently not comply with the payment schedule, water
service shall be disconnected and shall not be reinstated until the full amount owed
on the bill is paid.
5. In no case shall the CITY abdicate the right to refuse a payment schedule as
presented by the customer.
6. If a customer fails to comply with the provisions of their payment schedule, he/she
shall not be permitted to establish additional payment schedules until full payment
has been received on the initial/existing payment schedules.
SECTION 21. Sewer Adjustments.
1. The City Manager and/or his/her designee shall be empowered to make
adjustments on utility bills when an investigation reveals that the meter charges are
excessive in comparison to previous billings due to inadvertent misfortune or
inadvertent damage to a customer's pipes and plumbing. Customer must show
proof leak has been repaired before issuance of adjustment.
2. Any adjustments made to the utility bill shall be made to the cost for sewer service,
including base rate and maintenance fee. An adjustment will be made based upon
an average of six monthly bills during the previous six-month period.
3. In the event that water usage during the billing period exceeded 50,000 gallons, the
cost of water shall be adjusted by one-third (1/3) of the excess water usage based
upon an average of six monthly bills during tne previous six-montn period. Such an
adjustment, however, shall only be made for those customers whose monthly bill
averages less than 50,000 gallons based upon an average of the preceding 12
months. Any adjustment to the cost of water shall only be made if the customer
provides verification that a leak existed and that repairs have been made.
4. In no case shall a sewer adjustment be granted if the CITY notified the customer of
a potential water leak on his/her property.
5. Sewer adjustments will be limited to one per 12-month period.
6. A sewer adjustment will be granted the first time a swimming pool is filled upon
construction. To be eligible for an adjustment, the customer must have a Building
Permit issued by the City of Nederland Inspections Department.
SECTION 22. Meter Tampering.
1. It is unlawful for any person to turn on water to any premises from the CITY water
system without first obtaining approval from the CITY.
2. It is unlawful for any person to connect water service to a premises after service
has been terminated by the CITY.
3. It is unlawful to interfere with, disturb or damage in any manner or form any water
meters, locks, cutoff valves, or other appliances of the CITY. The head of
household or property owner involved shall be held responsible for the violation of
this section.
4. Tampering fees of up to five hundred dollars ($500.00) shall be assessed where a
meter has been interfered with, disturbed, or damaged.
SECTION 23. Trash Removal Rates.
1. Trash blocking drainage -a service fee of $50.00 -$200.00 will be charged to the
owner of the property when it becomes necessary to clear a ditch of trash and/or
debris during, before, and/or after a rainstorm to prevent possible flooding. The fee
shall be based upon the amount of work performed by the CITY.
2. Miscellaneous trash and/or debris, defined as green waste and/or any other bulky
items not able to be placed into the standard CITY garbage container, from empty
(undeveloped or vacant) property must be hauled off by the owner or developer at
their expense.
3. The CITY will provide collection of trash to customers receiving garbage service
twice per month. The amount of trash removed shall be limited to four (4) cubic
yards per collection. The CITY may charge an additional fee, no less than $5.00
per cubic yard per collection for quantities greater than four cubic yards. The CITY
shall not provide this service to vacant properties or those properties without an
active account.
4. Should an owner of property within the CITY request the removal of trash, the CITY
may do so at a cost equivalent to the actual costs of personnel, equipment, and
disposal fees. The amount of trash to be collected shall not exceed four (4) cubic
yards at any one time. Such· service shall be provided at the discretion of the CITY
dependent upon such factors including, but not Jimited to, existing work load, and
scheduling. This provision shall not apply to the accumulation of trash due to work
performed by contractors and/or individuals/companies hired by the property
owners.
SECTION 24. Validation.
If any section, paragraph, subdivision, clause, phrase or provision of this ordinance shall
be adjudged invalid or held uncon$titutional, the same shall not affect tt'ie validity. of this
ordinance as a whole or any part or provision thereof other than the part so decided to
be invalid or unconstitutional. ·
This ordinance shall take effect October 1, 2013.
PASSED AND APPROVED by the City Council of the City of Nederland, Texas at a
special meeting this the 26TH day of AUGUST 2013.
ATIEST:
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
WORKSHOP OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
3:00 p.m. August 26, 201 3
1. MEETING
The workshop was called to order at 3:00 p.m. by Mayor R. A. Nugent at the Marion
and Ed Hughes Public Library, 2712 Nederland Avenue, Nederland, Texas. See
attached for quorum.
2 . Discussion of the Agreement between the City of Nederland and the Nederland
Chamber of Commerce regarding expenditure of hotel occupancy tax funds.
Chris Duque, City Manager, reported the Nederland Chamber of Commerce
proposed an amendment to the agreement between the City of Nederland and the
Chamber. The amendment stipulated the Chamber would receive a quarterly
administration fee of $6,500 for tourism duties executed by the President and
Administrative Assistant on a daily basis.
Jinni Akins, Chamber of Commerce President/ CEO made a presentation of duties for
tourism which is performed in their office by staff. Several Chamber Board Members
were in attendance and supported why the increase in the administrative fee was
necessary.
Mr. Duque suggested forming a committee made up of city staff, a council
member, Chamber of Commerce staff, and Chamber board of director(s) to review
the budget and expenditure process for hotel occupancy tax funds. In addition Mr.
Duque pointed out several questions he had in regards to the wording of the request
and felt the committee would be able to clarify the language. The Chamber indicated
their willingness to participate in the committee process. Mr. Duque asked if
meetings could be postponed until after city offices moved to the new city hall in late
September.
3. ADJOURN
There being no further discussion the Workshop was adjourned at 3:26 p.m. by
Mayor R. A. Nugent.
ATTEST:
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor v'
/
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill I
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of Finance (
Darrell Bush Police Chief
Gary Collins 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
August 26, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. September 9, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 1400 Boston Avenue, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda· Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -August 26, 2013 regular meeting and August 26, 2013 workshop
b. Consider action regarding a request from Brian English to utilize the Recreation
Center gymnasium for a high school basketball league and a fall tournament.
c. Payments:
• August 2013 bills
• Walker Partners -$2,700.00, 2010 Water system Improvements project
• Bruce's General Construction -$279,360.00, Nederland City Hall project
• Bruce's General Construction -$14,967.00, Homer E. Nagel Public Safety
Complex project
• Bruce's General Construction -$82,481.13, 2013 Concrete Street Rehab
project
• Carroll & Blackman, Inc. $1,450.04, Phase II MS4 Permit
Implementation Services
4. REGULAR AGENDA
a. A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve Resolution 2013-10, nominating Charles Lankford as a
candidate for the Board of Directors of the Jefferson County Appraisal District.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, September 9, 2013
b. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to authorize the waiver of penalty and interest on tax Account No . 014790-
000/000500-00000-20128. ·MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. Chris Duque, City Manager, advised the asbestos abatement of City Hall is
scheduled to begin on September 13, 2013. During this process air conditioning
and restrooms will not be available and city offices will need to be closed for the
day. He added employees will have their schedule flexed to reflect the extra
hours necessary for the move to the new city hall using comp time in the mean
time. Mr. Duque request September 20, 2013 be closed to the public in order for
employees to move to the new city hall which will open to the public in the new
location on September 23, 2013.
A motion was made by Councilmember Austin and seconded by Councilmember
Neal to authorize closing City Hall on Friday, September 13, 2013 and Friday,
September 20, 2013. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. Policies/Procedures:
i. Chris Duque, City Manager, explained the following changes in the Personnel
Policy Manual:
• Section 3.12 Skill Testing, will stipulate applicants~ to tested instead
of will be tested,
• Section 5.12 Reassignment, pay of a demoted employee will be decreased
effective the date of demotion,
• Section 8.09 Sick Leave, decreases the 12-month introductory period
before using sick leave to 6 months.
• Section 9.01 Holidays, Martin Luther King, Jr. Day is added as a City
holiday.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to amend the City of Nederland Personnel Policy manual. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. Chris Duque, City Manager, explained the current Substance Abuse Policy only
permits the random drug testing of employees with a COL (commercial driver's
license), which covers only the public works employees. This amendment will
add "safety sensitive positions" to the pool of employees eligible for random drug
testing.
A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to amend the City of Nederland Substance Abuse Policy. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, September 9, 2013
e . A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve Ordinance No. 2013-15 pending legal review and approval,
amending Chapter 74, Article IV of the Code of Ordinances relating to definitions,
restrictions on registered sex offenders' residency. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the exchange, sale, and/or transfer to the Sabine Neches
Navigation District for the purpose of economic development a 151.675 acre tract
of land, more or less, containing 90.554 acres in the J. Montez Survey, Abstract
Number 175 in Jefferson County, Texas and 61.121 acres in the Burr and Caswell
Survey, Abstract Number 406 in Jefferson County, Texas said tract being the
remainder of that 159.90 acre tract conveyed from the Sun Marine Terminal, Inc.
to the City of Nederland as Parcel II in deed dated December 17, 1985 and
recorded under Clerk's File Number 101-27-1067 of the Official Public Records of
Jefferson County, Texas, with said tract being an island in the Neches River.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g. A motion was made by Councilmember Austin and seconded by Cou ncilmember
Neal to approve Ordinance No. 2013-16, an appropriation ordinance adopting a
budget in accordance with Article VII in the Charter of the City of Nederland.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
h . Tax Rate:
i. Mr. Duque advised the tax rate is comprised of two components: 1)
maintenance and operations and 2) debt service. He added that according to
State tax law, it is necessary to set the property tax rate for maintenance and
operations and interest and sinking fund (debt service) separately.
i. A motion was made by Councilmember Austin and seconded by
Councilmember Neal to set the maintenance and operation portion of the
property tax rate at $0.371479 for FY 2013-2014. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Rogers and seconded by
Councilmember Austin to set the interest and sinking fund portion of the property
tax rate at $0.220374 for FY 2013-2014. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
111. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Neal to approve Ordinance No. 2012-17, adopting the tax rate
for fiscal year beginning October 1, 2013 and ending September 30, 2014.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, September 9, 2013
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:07 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, and Chapter 551.072, Deliberation of Real
Property. Mayor Nugent announced the Deliberation of Real Property was not
needed.·
6. RECONVENE
The regular meeting was reconvened at 5:25 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
7 . COMMUNICATION
City Manager's Report: Demolition of the Fire Station began today. First responders
breakfast will be Wednesday, September 11th at 7:30 a.m. at Central Middle School.
National Night Out is scheduled for October 1, 2013 at Doornbos Park and a Ribbon
Cutting for the new city hall is scheduled for October 8, 2013. The K. c. Service
Award Gumbo will be on October 22, 2013 at 6:00 p.m.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:32 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Cou ncilmembers Austin, Neal, Albanese, and Rogers.
Noes: None. R.~
City of Nederland, Texas
ATTEST:
lt.14Wtll:?f~
City of Nederland, Texas
NAME
R. A. Nugent
Talmadge Austin
Billy Neal
Don Albanese
Bert Rogers
Chris Duque
Gay Ferguson
Jesse Branick
Cheryl Dowden
Darrell Bush
Gary Collins
Steve Hamilton
George Wheeler
Victoria Klehn
Holly Guidry
Joni Underwood
Angela Fanette
September 9, 2013
Date
CITY OF NEDERLAND
COUNCIL MEETING A TIEN DANCE SHEET
I
TITLE PRESENT
Mayor /
Council Member -Ward I I
Council Member -Ward II v'
Council Member -Ward Ill v'
Council Member -Ward IV v
City Manager v
City Clerk v
City Attorney v
Director of Finance ~
Police Chief J
Fire Chief v
Director of Public Works v
Building Official v/
Librarian ~
Human Resources Director ·v
Executive Secretary v
Parks Director v
r-------··
ABSENT
----~-~-----------------------------~-~
CITY OF NEDERLAND
RESOLUTION NO. 2013-10
STATE OF TEXAS §
COUNTY OF JEFFERSON §
WHEREAS, the City Council of the City of Nederland, Texas at its regularly
scheduled meeting of September 9, 2013, in accordance with the Property Tax Code of
the State of Texas, hereby nominates Charles Lankford as a candidate for the Board of
Directors of the Appraisal District established for Jefferson County for a two-year period
term to expire December 31, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS:
THAT the City Manager is hereby directed to present this nomination to the Chief
Appraiser of the Jefferson County Appraisal District on or before October 15, 2013, in
accordance with said Statute.
PASSED AND APPROVEE> AND AD0 PTED this~ day of September ,
2013.
Don Albanese, Mayor Pro Tern
~0:3s
Talmadge Austin,
Council Member Ward I
~mberWardN
ATIEST:
APPROVED AS TO FORM AND LEGALITY:
ORDINANCE NO •. 2013-15
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS AMENDING CHAPTER 74,
ARTICLE JV OF THE CODE OF ORDINANCES. CITY
OF NEDERLAND, TEXAS, RELATING TO
DEFINITIONS, RESTRICTIONS ON REGISTERED SEX
OFFENDERS RESIDENCY, PROHIBITING
REGISTERED SEX OFFENDERS FROM RESIDING
WITHIN 1,000 FEET OF PREMISES WHERE
CHILDREN COMMONLY GATHER; PROVIDING THAT
A CULPABLE MENTAL STATE IS NOT REQUIRED
FOR COMMITTING AN OFFENSE UNDER SECTION
74-66; PROYIDJNG EXCEPTIONS; PROVIDING
PENAL TIES FOR VIOLATION OF THE ORDINANCE;
REPEALING CONFLICTING ORDINANCES;
PROVIDING FOR SEVERABILITY; AND PROVING AN
EFFECTIVE DA TE.
WHEREAS, the City Council of the City of Nederland determines and declares
that sex offenders are a serious threat to public safety; and
WHEREAS, the City Council determines that the recidivism rate for released sex
offenders is alarmingly high, especially for those who commit their crimes against
children; and
WHEREAS, the City Council determines that establishing a policy to restrict the
propertY available for residence of sex offenders will provide better protection for
children gathering in the City; and
WHEREAS, Article 42.12 (138) of the Texas Code of Crimi.nal Procedure
provides a 1000 foot safety zone for children, as a condition of probation for those
convicted of certain sexual offenses; and
WHEREAS, the laws of the State of Texas, including those found in Chapter 51
of the Texas Local Government Code, provide the City authority to adopt ordinances for
the good government, peace, order, and welfare of the municipality; and
WHEREAS, it is the intent of this Ordinance to serve the City's compelling
interest to promote, protect, and improve the health, safety, and welfare of the citizens
of the City by creating areas around locations where children commonly gather wherein
certain sexual offenders are prohibited from establishing residencies.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS:
SECTION I: That the Code of Ordinances of the City of Nederland, Chapter 74,
ARTICLE IV, RESIDENCE RESTRICTIONS ON REGISTERED SEX OFFENDERS, is
hereby amended, which shall read as follows:
ARTICLE IV. RESIDENCE RESTRICTIONS ON REGISTERED SEX OFFENDERS
Sec. 74-65. Definitions
The following words, terms and phrases, when used in this Article, shall have the
meaning described to them in this Article, except where the context clearly indicates a
different meaning:
1. "Child" means an individual younger than seventeen (17) years of age.
2. "Premises where children commonly gather" means:
a. A public park and public or private recreational facility;
b. A library;
c. A private or public school, except trade or business schools, colleges, or
universities;
d. A structure, other than a single or multi-family residence, where the
following uses are actively conducted and hold a certificate-of-occupancy
from the City:
i. A licensed day care facility;
ii. A studio or facility for instruction in the arts or sports where classes
are taught to four or more children at a time; or
iii. A church
3. "Day-Care Facility" includes a "child-care institution", a "day-care center" and or a
group day-care home·, as those terms are defined by Section 42.002, Human
Resources Code.
4. "Park" means any land, including improvements to the land that is administered,
operated, or managed by the City of Nederland for the use of the general public
as a recreational area, such as a public pool, playground, or youth athletic field.
5. "Private recreational facility" means a facility for sports or recreation that is
owned by a residential. property owners association or for which an entrance,
admission, or rental fee is charged.
6. "Permanent residence" means a place where a person abides, lodges, or resides
for fourteen (1 4) or more consecutive days.
7. "Temporary residence" means a place where a person abides, lodges, or resides
for a period of 14 or more days in the aggregate during any calendar year and
which is not the person's permanent address or a place where a person routinely
abides, resides, or lodges for a period of four or more consecutive or non-
consecutive days in any month and which is not the person's permanent
residence.
8. "Sex Offender" means an individual who has been convicted of or placed on
deferred adjudication for a sexual offense involving a child for which the
individual is required to register as a sex offender under Chapter 62, Texas Code
of Criminal Procedure.
9. "School" means a private or public elementary or secondary school, except trade
or business schools, colleges, or universities.
10. "Loitering" means remaining within 300 feet of any premise where children
commonly gather under circumstances that would warrant a reasonable person
to believe that the purpose or effect of that behavior is to facilitate or to conceal
illegal activities.
11. "Proper signage• means a sign maintained and issued by the city police
department which states, "SEXUAL OFFENDER RESIDENCE".
Sec. 7 4-66. Offenses
1. For each person required to register on the Texas Department of Public Safety's
Sex Offender Database ("the Database") because of a violation involving a victim
who was less than sixteen (16) years of age, it is unlawful for that person to
establish a permanent residence or temporary residence within 1,000 feet of any
premise where children commonly gather.
2. Evidentiary matters; measurements
a) It shall be prima facie evidence that this Section applies to such a person
if that person's record appears on the Database and the Database
indicates that the victim was less than 16 years of age.
b) For the purposes of determining the minimum distance separation, the
requirement shall be measured by following a straight line from the outer
property line of the permanent or temporary residence to the nearest
property line of the premises where children commonly gather, as
described herein above, or, in the case of multiple residences on one
property, measuring from the nearest property line of the premises to the
nearest property line of the premises where children commonly gather, as
described herein.
c) The Nederland Police Department shall maintain a map illustrating the
child safety zones on file at the Police Department, as well as available on
the City website. The Chief of Police shall be charged with reviewing and
updating the map at least annually.
3. Culpable mental state not required
Neither allegation nor evidence of a culpable mental state is required for the
proof of an defined by this Chapter.
Sec. 7 4-67. Loitering
1. It shall be unlawful for any Sex Offender to loiter on a public way within 300 feet
of any premises where children commonly gather, as described herein if the
person's record appears on the Database.
2. For the purposes of subsection 1, measurement is made in a straight line,
without regard to intervening structures or objects, from the location of the person
to the nearest property line of the premises where cliildren commonly gather, as
described herein.
Sec. 74-68. Halloween
It is unlawful a sex offender to not display proper signage on all accessible
exteriors of his or her residence, as well as post proper signage along the
sidewalk or driveway leading into such residence, on each October 301h and 31 '1
between the hours of 4:00PM and 11 :OOPM. The signs will be posted in a
manner plainly visible to the public and in a manner set forth by the Nederland
Police Department at the time each sign is issued.
Sec. 74-69. Exceptions
A person does not commit an offense under Section 7 4-66 if the person:
1. Is required to serve a sentence at a jail, prison, juvenile facility, or other
correctional institution located within one thousand (1,000) feet of the
premises where children commonly gather, as described herein;
2. Has established and continues to maintain the residence prior· to the
effective date of this Ordinance;
3. Has established and continues to maintain the residence prior to the
effective date of this Ordinance and, subsequently, a premises where
children commonly gather, as described herein, is constructed or located
within one thousand (1,000) feet of the sexual offender's residence;
4. Is under eighteen (18) years of age or a ward under a guardianship, who
resides with a parent or guardian;
5. Has been exempted by a court order from registration as a sex offender
under Chapter 62, Texas Code of Criminal Procedure; or
6. Has had the offense for which the sex offender registration was required,
reversed on appeal, or pardoned.
7. The information on the Database is incorrect, and, if corrected, this section
would not apply to the person who was erroneously listed on the
Database.
Sec. 74-69. Property owners prohibited from renting to sex offender
1. It is unlawful for a property owner to rent a residential property located with 1,000
feet of premises where children commonly gather as described herein to a Sex
Offender.
2. It is an affirmative defense to prosecution under this section that the property
owner conducted a criminal history check with the Texas Department of Public
Safety and reviewed the Database and at the time the property owner conducted
the criminal history check and reviewed the Database, the sexual offender's
criminal history did not include a record of sexual offense or the offenders name
did not appear in the Database.
Sec. 74-70 .. Penalties
Any person who violates this Ordinance shall be guilty of a misdemeanor and,
upon conviction thereof, shall be subject to the provisions of Sec. 1-4, Code of
Ordinance, City of Nederland.
SECTION II: REPEALING CLAUSE:
All ordinances or parts of ordinances inconsistent with the terms of this
Ordinance are hereby repealed; provided, however, that such repeal shall be only to the
extent of such inconsistency and in all other respects this Ordinance shall be cumulative
of other ordinances regulating and governing the subject matter covered by this
Ordinance.
SECTION Ill: SEVERABILITY CLAUSE:
If any section , subsection, sentence, clause or phrase of this ordinance, or the
application of same to a particular set of persons or circumstances, should for any
reason be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end, the various portions and provisions of this ordinance are
declared to be severable.
SECTION IV: EFFECTIVE DATE AND PUBLICATION
This ordinance shall take effect from and after its passage by the City Council
and publication. The City Clerk is hereby directed to give notice hereof by causing the
caption of this ordinance to be published in the official newspaper of the City of
Nederland.
PASSED AND APPROqfi:Y the c4cil of the City of Nederland, Texas at a
regular meeting this the day of t::k , , AD., 2013.
ATTEST:
Ga}IFer~son, c ;tyerk
City of Nederland, Texas
APPROVED AS TO FORM:
CITY OF NEDERLAND
ORDINANCE NO. 2013-16
AN APPROPRIATION ORDINANCE ADOPTING
A BUDGET FOR THE ENSUING FISCAL YEAR
BEGINNING OCTOBER 1, 2013, AND ENDING
SEPTEMBER 30, 2014, IN ACCORDANCE WITH
ARTICLE VII, OF THE CHARTER OF THE CITY
OF NEDERLAND.
WHEREAS, in accordance with Article VU, Section 7.02 of the City Charter, the City
Manager prepared and presented to the City Council a city budget itemizing estimated revenues
and appropriations for the ensuing fiscal year beginning October l, 2013 and ending September
30, 2014.
WHEREAS, in accordance with Article VII, Section 7.05 of the City Charter, at the
meeting of the Council at which the budget and budget message were submitted, the Council
determined the place and time of the public hearing. On August 26, 2013, after notice was
published, said Public Hearing was held by the City Council on the proposed budget.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS:
Section I -GENERAL FUND. That there be and is hereby appropriated the sum of Nine
million, two hundred sixty-five thousand, eighty dollars and no cents ($9,265,080.00) to the
General Fund for the pa)rment of operating expenses and necessary capital outlay for the
following departments and uses:
a. City Council $18,680
b. Legal $70,980
c. City Manager $428,570
d. Finance $26j,2Qd
e. Personnel $198,690
f. Civil Service $4,100
g. City Hall $70,300
h. Police $3,037,030
I. Police-Prisoner Extra Help $48,380
j. Emergency Management $45,500
k. Fire $1,449,850
I. Fire Volunteers $15,720
m. Inspections $206,780
n. Code Enforcement $73,000
0. Public Works Administration $265,840
p. Street Department $1 ,066,940
q. City Shop $263,530
r. Parks & Recreation $525,550
s. Library $477,800
t. Other Requirements $734,640
Section 2 -DEBT SERVICE FlJNP. That there be and is hereby appropriated the sum of
Two million, four hundred thirty-five thousand, six hundred forty dollars and no cents
($2,435,640.00) to the Debt Service Fund for payment of principal and interest on
outstanding City debt.
Section 3 -WATER & SEWER fUND. That there be and is hereby appropriated the sum of
Four million, two hundred ninety-seven thousand and no cents ($4,297,000.00) to the Water
& Sewer Fund for the payment of operating expenses and necessary capital outlay for the
following departments and uses:
a. Water'rreatrneot
b. Billing/Collections
c. Wastewater Treatment
d. Water & Sewer Distribution
e. Other Requirements
$1,341,650
$392,200
$738,490
$829,820
$994,840
Section.~ =-.SANlTARY.SEWEREYALUATIONB .. ThlIXSSES). That there be and is hereby
appropriated the sum of Twenty-five thousand dollars and no cents ($25,000.00) to the SSES .
Fund for the paym·ent of operating expenses and necessary capital outlay.
Section 5 -SOLID WASTE FUND. That there be and is hereby a·ppropriated the sum of One
million, six hundred fifty-nine thousand. two hundred dollars and no cents ($1,659,200.00) to
the Solid Waste Fund for the payment of operating expenses and necessary capital outlay.
Section 6 -EQUIPMENT REPLACEMENT FUND-GENERAL. That there be and is hereby
appropriated the sum of One hundred thirty-three thousand four hundred dollars and no cents
($133,400.00) to the Equipment Replacement Fund-General for the payment of necessary
capital outlay.
Section 7 -EOUlPMENT REPLACEMENT FUND-WATER & SEWER. That there be and
is hereby appropriated the sum of Thirty-two thousand five hundred dollars and no cents
($32,500.00) to the Equipment Replacement Fund-Water & Sewer for the payment of
necessary capital outlay.
Section 8 -EQUIPMENT REPLACEMENT FUND-SOLID WASTE. That there be and is
hereby appropriated the sum of Five hundred fifty thousand dollars and no cents
($550,000.00) to the Equipment Replacement Fund-Solid Waste for the payment of
necessary capital outlay.
Section 9 -POLICE NARCOTICS FUND. That there be and is hereby appropriated the sum
of Twenty-nine thousand six hundred dollars and no cents ($29,600.00) to the Police
Narcotics Fund for the payment of operating expenses and necessary capital outlay.
Section 10 -LIBRARY SPECIAL FUND. That there be and is hereby appropriated the sum
of One hundred nineteen thousand dollars and no cents ($119 ,000.00) to the Library Special
Fund for the payment of operating expenses and necessary capital outlay.
Section 11 _-HOTEUMOTEL FUND. That there be and is hereby appropriated the sum of
Sixty-three thousand dollars and no cents ($63,000.00) to the Hotel/Motel Fund for the
payment of operating expenses.
Section 12 -FIRE DEPARTMENT SPECIAL FUND. That there be and is hereby
appropriated the sum of Thirty-six thousand four hundred dollars and no cents ($36,400.00)
to the Fire Department Special Fund for the payment of operating expenses and necessary
capital outlay.
Section 12 -PARKS & RECREATION SPECIAL FUND. That there be and is hereby
appropriated the sum of Forty-five thousand dollars and no cents ($45,000.00) to the Parks &
Recreation Special Fund for the payment of operating expenses and necessary capital outlay.
Section 13 -COURT TECHNOLOGY FUND. That there be and is hereby appropriated the
sum of Five thousand two hundred dollars and no cents ($5,200.00) to the Court Technology
Fund for the payment of operating expenses and necessary capital outlay.
Section 14 -STREET IMPROVEMENT FUND. That there be and is hereby appropriated
the sum of Five hundred seventy-six thousand dollars and no cents ($576,000.00) to the
Street Improvement Fund for the payment of operating expenses and necessary capital
outlay.
Section 15 -MID-COUNTY MUNICIPAL LEAGUE CENTRAL DISPATCH FUND. That
there be and is hereby appropriated the sum of One million, seventy-four thousand, seven
hundred seventy dollars and no cents ($1,074,770.00) to the Mid-County Municipal League
Dispatch Fund for the payment of operating expenses and necessary capital outlay.
THAT the foregoing appropriations for expenditures be adopted as the budget for the
ensuing fiscal year beginning October l, 2013 and ending September 30, 2014.
THAT the City Council shall meet and adopt an Ordinance levying on the assessed
valuation of the property within the City, subject to the provisions of the Charter and lawful
exceptions given by State Law or City Ordinance, a rate of taxation on each One Hundred
Dollars ($100.00) of valuation sufficient to raise the amounts estimated to be required in this
annual budget less the amounts estimated to be received from fines, licenses, and other sources
of revenue.
THAT any unencumbered funds remaining on hand at the end of the fiscal year ending
September 30, 2013, shall be construed with and classified with Miscellaneous Revenue
anticipated during the fiscal year beginning October I, 2013 and ending September 30, 2014, and
such funds are hereby appropriated as a City Council Contingency Account for purposes
approved by the City Council.
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget with the
Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the Local
Government Code.
THAT this being an ordinance not requiring publication it shall take effect and be in
force from and after its passage. · ·
PASSED AND APPROVED BY THE CITY COUNOL OF THE OTY OF
NEDERLAND THIS THE 9m DAY OF SEPTEMBER, 2013.
AITEST:
APPROVED AS TO FORM AND LEGALITY:
ORDINANCE ~O. 2013-17
AN ORDINANCE APPROVING THE TAX ASSESSMENT
ROLLS FOR THE YEAR 2013, LEVYING AND ASSESSING
TAXESFORTHESUPPORTOFTHECITYOFNEDERLAND
AND THE MUNICIPAL GOVERNMENT THEREOF;
APPORTIONING EACH LEVY FOR SPECIFIC PURPOSES;
AND PROVIDING FOR THE INTEREST AND SINKING
FUND.
WHEREAS, pursuant to the provisions of the Tax Code of the State of Texas, the tax assessment
rolls to be used for the collection of taxes for the captioned year, wherein the value of all property
situated within the City of Nederland, subject to ad vaJorem taxes for the tax year 2013, was fixed by
Roland R. Bieber, Chief Appraiser of Jefferson County Appraisal District, at a total value of
$1 ,037,914,646; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND:
SECTION 1: -That the tax assessment rolls furnished by the City's Tax Assessor-Collector, based
upon the certified roll furnished by Roland R. Bieber, Chief Appraiser of Jefferson County Appraisal
District, at a total value of $1,037,914,646, shall become the tax assessment rolls of the City of
Nederland for the year 2013, less all ~xemptions provided by either State Law or City ordinance in
the amount of$72,936,303.
SECTION 2: -That there is hereby levied for the current year, 2013, and there shall be collected for
the use and support of the municipal government of the City of Nederland, and to provide interest
and sinking funds for the fiscal year ending Sept!!mber ;w, 2014 upon all property, real, personal, and
mixed, within the corporate limits of said City subject to taxation, a tax of59. l 853 cents on each one
hundred dollars ($100) valuation of property; said tax being so levied and apportioned to the specific
purposes hereinafter set forth:
(a) For the maintenance and support of the general ~vemment {General Fund), 37.1479
cents on each one hundred dollars ($100) valuation of property; and
(b) For the Interest & Sinking Fund, 22.0374 cents on each one hundred dollars ($100)
valuation of property as follows:
For the purpose of paying interest and principal of One hundred ninety thousand, nine
hundred thirty-seven dollars and fifty cents ($190,937.50) on the General Obligation
Bonds, Series 2008, 1.9642 cents on each one hundred dollars ($100) valuation of
property.
For the purpose of paying interest and principal of One million, two hundred ninety-six
thousand, two hundred fifty dollars ($1,296,250.00) on the General Obligation
Refunding Bonds, Series 2010, 13.2994 cents on each one hundred dollars ($100)
valuation of property.
For the purpose of paying interest and principal of Three hundred twenty-three
thousand, nine hundred eighty-two dollars and fifty cents ($323,982.50) on the General
Obligation Refunding Bonds, Series 2012, 3.3286 cents on each one hundred dollars
($100) valuation of property.
For the purpose of paying interest and prini;ipaJ of One hundred thirty-two thousand,
one hundred dollars ($132, 100.00) on the General Obligation Refunding Bonds, Series
2013, 1.3609 cents on each one hundred do!Jars ($100) valuation of property.
For the purpose of paying interest and principal of Two hundred two thousand, six
hundred forty-five dollars and eighty-three cents ($202,645.83) on the Tax and
Revenue Certificates of Obligation, Series 2013, 2.0843 cents on each one hundred
dollars ($100) valuation of property.
SECTION 3: -The Jefferson County Tax Assessor-Collector (who, pursuant to contract, is the Tax
Assessor-Collector for the City of Nederland) is hereby directed to prepare Tax Statements and
proceed with the collections of the 2013 taxable year, and the amounts collected shall be deposited in
the Depository of the City of Nederland, to be distributed in accordance with this Ordinance.
SECTION 4: -That if any provision, section, subsection, paragraph, sentence, clause, or phrase of
this ordinance shall for any reason be held to be unconstitutional, void, or invalid, such invalidity
shall not affect the validity of the remaining provisions of this ordinance; and to this end all
provisions of this ordinance are declared to be severable.
PASSED, APPROVED and ADOPTED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND AT A REGULAR MEETING THIS THE 911t DAY OF SEPTEMBER, A.D.,
2013.
ATTEST:
tia~JJJtt1A-Gay Ferson: CitY1erk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
L-
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4 :30 p.m. September 23, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Council member Rogers.
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 Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-f as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -September 9, 2013 regular meeting
b. August 2013 Departmental Reports
c. Tax Assessor Collection Report -August 2013
d . Requests:
• Consider action approving a request from Ridgewood Christian School to
have a "Bike-a-Thon" at Doornbos Park.
• Consider action authorizing the use of Tex Ritter Park, waiver of associated
fees and street closure on December 5th for the Chamber of Commerce's
holiday event.
e. Consider action authorizing the closure of Boston Avenue from 14th Street to Twin
City Highway and the intersections of 12th and 13th Streets on Boston Avenue for
·the "Trunk-R-Treat event on Thursday, October 3ist.
f. Payments:
• LaBiche Architectural Group, Inc. -$4,006.75, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$445.20, Homer E. Nagel Public Safety
Complex project
• Carroll & Blackman, Inc. -$273.00, Phase II MS4 Permit Implementation
Services
• Schaumburg & Polk, Inc. -$12,759.50, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, Inc. -$435.00, 2013 Concrete Street Rehabilitation
project
Minutes Continued, September 23, 2013
4 . REGULAR AGENDA
a. A motion was made _by Councilmember Neal and seconded by Councilmember
Austin to leave the podium in the new city hall council chambers as it is and look
for castors which would be placed on podium for moving when necessary.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. Darrell Bush, Police Chief, reported the Nederland Police Department has been
awarded $5,000.00 from the Nederland Heritage Festival for the purchase of a
laptop and all-weather jackets. Mrs. Hollier from the Heritage Festival was not in
attendance.
c. Chris Duque, City Manager, advised property located at 2423 Nederland Avenue
was brought to City Council on April 22, 2013 for consideration of condemnation.
The property owner, Mr. Waleed Kahn was allowed to re-permit and re-start work
on the commercial building (without the gas pumps) within 14 days from April 23,
2013 or within 60 days beginning May 6, 2013 to demolish the structure and clear
the lot. Mr. Khan met with Mr. Wheeler, Building Official, and informed him the
project contractor is unavailable until August due to out-of-town work. Mr. Wheeler
recommended extending the deadline to September 6, 2013.
Mr. Wheeler reported some items he requested Mr. Khan to take care of have been
completed but others have not.
S. EXECUTIVE SESSION
The regular meeting was recessed at 4:54 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. Texas Government Code 551.074, Annual
Evaluation -City Manager:, Christopher Duque, is moved to Open Session upon request
by Mr. Duque.
6. RECONVENE
The regular meeting was reconvened at 5:45 p.m. by Mayor Nugent.
A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to order the owner of 2423 Nederland Avenue, Mr. Waleed Khan to within
fourteen (14) days have completed the barricading of all front wa lk through
openings with structurally sound material, completely remove the sign frame that
is bent over and located near the Nederland Avenue right-of-way, to completely
repair all ceiling insulation that is hanging down and visible from the street and to
continue to maintain the property free from debris, high weeds and include weed
eating around obstructions when the grass is mowed. If not in full compliance at
the 14 day deadline the City will file charges in Municipal Court per section 110. 7
of the International Property maintenance Code, and to also order same prope·rty
owned by Mr. Wa leed Khan to within forty-five ( 45) days re-start the construction
needed to complete the project. If not in compliance within the forty-five (45)
Minutes Cont inued, September 23, 2013
days, Mr. Khan shall be ordered to reappear before City Council at their November
11, 2013 regular meeting to explain why he is not complying. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
4 . REGULAR AGENDA
d. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to amend Ordinance No. 2006-01, the City's "No Parking" ordinance. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e . Chris Duque, City Manager, stated the Nederland Public Works Department
recommends the City participate in TCEQ's Sanitary Sewer Overflow (SSO)
outreach initiative Plan. The SSO Plan is comprised of various efforts intended to
identify the sources of and reduce infiltration and inflow into the City's sanitary
sewer system . The goal of the SSO Plan is to reduce the number of incidents and
minimize the potential for future overflows. The Plan will provide general
guidelines and/or procedures to evaluate the City's sanitary sewer system, identify
corrective measures to resolve the problems, establish operations and
maintenance procedures to minimize reoccurrence of incidents, and identify
funding sources for the implementation of the program.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Texas Commission on Environmental Quality's Sanitary
Sewer Overflow Initiative. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to award a bid in the amount of $1,013,426.75 to LD Construction for the
2013 Hot Mix Overlay project on Canal from 27th Street to Twin City Highway,
Boston Avenue from 9 th Street to Gage, and 13th Street from Chicago to Nederland
Avenue. MO·TlON CARRI'ED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g. Appointments:
i. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to appoint Reagan Meaux and Bert Rogers to the Nederland -Economic
Development Corporation for term ending September 30, 2015. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Council member Austin and seconded by Councilmember
Neal to re-appoint Don Albanese and Randy Sonnier to the Nederland Economic
Development Corporation for a term ending September 30, 2015. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, and Rogers.
Noes: None.
Minutes Continued, September 23, 2013
Abstain: Mayor Pro Tern Albanese
h. A motio·n was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve Ordinance No. 2013-18, amending the FY 2012-2013 budget.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neat, Albanese, and Rogers.
Noes: None.
i. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve final payment and release of retainage in the amount of
$102,007.68 to Allco, Inc. for the Nederland Water Treatment Plant
Repairs/Improvements project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
j. A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve Ordinance No. 2013-19, suspending for 180 days Ordinance No.
2013-15 that amended Chapter 74, Article IV of the Code of Ordinances relating
to definitions, restrictions on registered sex offenders' residency. During this time
the City Attorney and City Council wilt further research the issue and the ordinance
adopted in 2006 shall be enforced. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
k. Todd Hoover, a representative from Severn-Trent, attended the meeting
presenting their proposed amendment that would adjust Severn-Trent's Base
Compensation while reflecting electricity savings. Mr. Duque and Mr. Hoover
disagreed on the proposal funding amendment and the most equitable method to
return the electricity savings.
A motio.n was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to postpone action regarding the proposed First Amendment to the Amended
and Restated Wastewater Treatment Plant Operation and Maintenance Agreement
between Severn Trent Environmental Services, Inc. and the City of Nederland.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
I. Item moved from Executive Session to Regular Agenda.
Mayor Nugent reported the three proposed changes in the City Manager's contract:
• 3 weeks vacation and participation in the buy-back program,
• Participation in the random drug testing program as a "Safety Sensitive
Employee" not more than 4 times per year,
• Step Adjustment and cost of living increase as with all other employees.
A motion was made by Councilmember Neal and seconded by Councilmember
Austin to renew the contract with the City Manager for one year with the changes
proposed. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, September 23, 2013
7. COMMUNICATION
City Manager's Report: Demolition of the Fire Station began today. First responders'
breakfast will be Wednesday, September 11th at 7:30 a.m. at Central Middle School.
National Night Out is scheduled for October 1, 2013 at Doornbos Park and a Ribbon
Cutting for the new city hall is scheduled for October 8, 2013. The K. C. Service
Award Gumbo will be on October 22, 2013 at 6:00 p.m.
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 6:44 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None. fl. [J,/J/J
~L.!i.-----~'/.I..l..i..,__._~~---~011......._._C~~~~~
R. A. N uQeflt; fii'fo;
City of Nederland, Texas
ATTEST:
i;ta1~~ Gay Ferguson itYcierl<
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor /
Talmadge Austin Council Member -Ward I ./
Billy Neal Council Member -Ward II /
Don Albanese Council Member -Ward Ill v
/
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager /
Gay Ferguson City Clerk v
Jesse Branick City Attorney /
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief V'
Gary Collins Fire Chief y/
Steye Hamilton Director of Public Works v
George Wheeler Building Official /
Victoria Klehn Librarian v
Holly Guidry Human Resources Director /
Joni Underwood Executive Secretary v
Angela Fanette Parks Director /
September 23, 2013
Date
J. SHANE HOW ARD
TAX ASSESSOR-COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $25,838.42, represents all taxes collected for CITY OF NEDERLAND during the
month of August 2013.
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE• P.O. BOX 2112 ·BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589
AMENDMENT TO ORDINANCE NO. 2006-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING ORDINANCE NO. 2006-
01, REPEALING §97 OF ORDINANCE 107, AND AMENDING
CHAPTER 102 OF THE CODE OF ORDINANCES OF THE
CITY OF NEDERLAND, TEXAS, PROHIBITING THE
PARKING OF VEHICLES ON CERTAIN STREETS IN
OESIGNATEO AREAS IN THE CITY OF NEOERLANO; ANO
PROVIDING PENAL TY {NOT TO EXCEED $200.00 EACH
DAY), REPEALING AND SEVERABILITY CLAUSES.
WHEREAS, the City Co!Jllcil of the City of Nederland fintls that the 1,mrestficted parking
of vehicles on certain streets at various locations within the City limits of the City of Nederland
poses a serious threat to the community; and
WHEREAS, the City Council of the City of Nederland finds that it is in the best interest of
the citizens of the City of Nederland to protect lives and property to prohibit parking of certain
vehicles on certain public streets at various locations and to adopt an ordinance as hereinafter
set forth;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
SECTION I -NO PARKING ZONES
That Chapter 102, "Traffic and Vehicles", "Division 12. Stopping, Standing or Parking
Generally" is hereby amended to add Section 102-243 "No Parking Zones on Designated
Streets• to the Code of Ordinances of the City of Nederland, Texas, to read as follows:
Section 102-243. No Parklng Zones on Designated Streets.
It shall be unlawful for any person, firm or corporation to intentionally, knowingly or
willfully park a motor vehicle on·a street at any location listed within this ordinance and identified
by signs reading: "NO PARKING ZONE" and/or as individually marked with certain applicable
times or instructions notated below.. The streets and no parking locations are as follows:
1) East & West sides of 27th Street from Canal Ave. to Helena Ave.
2) West side of 13th Street from Helena Ave. to Franklin Ave.
3) West side of 18th Street from Nederland Ave. to Atlanta Ave.
4) North & South sides of Atlanta Ave. in the 1500 block
5) East & West sides of 27th Street from 350' South of Nederland Ave. continuing
North for 850'
6) East side of South 6th from Nederland Ave. to Ave. D
7) West side of 18th Street from Detroit continuing North for 30'
8) West side of 19th Street from Detroit continuing North for 30'
9) West side of 21•1 Street from Detroit continuing North for 30'
10) West side of 15th Street from Helena continuing South for 75'
11) North side of Atlanta from the Westerly boundary line of Hwy. 347 continuing
West for 150'
12) Both sides of 18"' Street from Seattle Ave. to Spurlock Rd; between 7 AM and 4 PM
while school is in session.
13) Both ·sroes of Seattle Ave. from 18"' Street to the dead end; between 7 AM and 4 PM
while school is in session.
14) West side of 23"' Street from Gary Ave. continuing North 150'
15) East side of 17111 Street in the 200 block from 7:30 AM -4:30 PM
16) North side of Avenue H from South 25"' Street to South 27"' Street
17) East side of South 13"'.Street from Avenue A continuing South for 1000'
18) East side of South 29"' Street from Avenue 0 to Highway 365
19) South side of Park from 37111 Street to Hill Terrace Ave.
20) South side of Avenue H from the Doornbos Park swimming pool parking area
continuing West for 60'
Z1) West side of Sovth 16th from Nederland Ave. to Avenue 6
22) East & West sides of South 17'ttl Street from Avenue E continuing South
for 240'
23) North side of Avenue B from South g'ttl continuing West for 380'
24) East side of South 37111 Street from Park Ave. continuing South for 800'
25) North side of Park from 36'ttl Street continuing East for 350'
26) North & South sides of Memphis Ave. from 27th Street continuing East for 40'
27) Both sides of 36th Street from Nederland Avenue continuing North for 140'
SECTION II -PENAL TY CLAUSE
Any person, firm or entity violating this ordinance shall be guilty of a misdemeanor and
upon conviction shall be punished by fine as provided in Sec. 102-323 of the Code of
Ordinances of the City of Nederland, Texas; provided, however, that each day of violation shall
constitute a separate offense.
SECTION Ill -REPEALING CLAUSE
This ordinance repeals § 97 of Ordinance 107, and other sections thereof relating to no
parking locations on specifically designated streets. All ordinances or parts of ordinances
inconsistent with the terms of this ordinance are hereby repealed; provided, however, that such
repeal shall be only to the extent of such inconsistency and in all other respects this ordinance
shall be cumulative of other ordinances regulating and governing the subject matter covered by
thfs ordinance.
SECTION IV -SEVERABILITY CLAUSE
If any provision, section, exception, subsection, paragraph; sentence, clause or phrase
of this ordinance or the application of same to any person or the. set of circumstances, shall for
any reason be held unconstitutional, void or invalid, such invalidity shall not affect the validity of
the remaining provisions of this ordinance or their application to other persons or sets of
circumstances and to this end all provisions of this ordinance are declared to be severable.
SECTION V-EFFECTIVE DATE ANO PUBLICATION
This ordinance shall take effect from and after its passage by the City Council and
publication. The City Clerk is hereby directed to give notice hereof by causing the caption of
this ordinance to be published in the official newspaper of the City of Nederland.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of Nederland at a
regular meeting on this the 23Ro day of SEPTEMBER , A.O., 2013.
ATTEST:
w~~~lh.c
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
2
ORDINANCE NO. 2013-18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2012~
2013 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2012-12, which adopted
the Fiscal Year :l.012-2013 City Budget; ;md,
WHEREAS, the City Council deems it necessary to amend the current budget to adjust
revenues and expenditures as set out in Attachment "A" attached hereto; and,
WHEREAS, the 2012-2013 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2013 shall be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2012 and ending September 30, 2013, and such funds are hereby appropriated as a City Council
Contingenc:Y Account for purposes approved by the City Council; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS:
. THAT the budget for the fiscal year 2012-2013 is amended to allow for adjustments in
revenues and expenditures as set out in Attachment "A."
THAT all ordinances and parts of ordinances in conflict herewith are expressly repealed.
THAT the City Clerk shall file a true copy of this ordinance and said budget amendment
with the Office of County Clerk of Jefferson County, Texas as provided by Section 102.011 of the
Local Government Code.
THAT, this being an ordinance not requiring publication, it shall take effect and be in
force from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND AT A
REGULAR MEETING THIS THE 23rd DAY OF SEPTEMBER, 2013.
{}/.fl!#fl~,---' R.A:NgefltJMf
City of Nederland, Texas
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR:
DATE:
DEPARTMENT~
FUND:
ACCOUNT NO.
01-0000-4110
01-0000-4424
01-0000-4511
01-1100-6333
01-1200-6128
01-1200-6313
01-1300-6115
01-1300-6393
01-1500-6110
01-1500-6115
01-1500-6124
01-1600-6110
01-1600-6113
01-1600-6243
01-1600-6314
01-1600-6332
01-1600-6347
01-1600-6393
01-2100-6111 ~J
01-2100-6115
01-2100-6222
01-2100-6265
2013-2014
September 23, 2013
Vanous
General
ACCOUNT TITLE
Current Property Taxes
Inspection Fees
· Fines & Court Fees
Travel & Training
!Workers Compensation
Legal Services
Extra Help
Contractual Services
Salaries & Wages
Extra Help
TMRS
. Salaries'& Wages
Longevity
Special Programs
Medical Services & Pre-Emp.
Postage & Freight
Unemployment Reimbursement
Contractual Services
Overtime
Extra Help
Motor Vehicle Fuel
Supplies/Minor Tools & Equipment
TOTAL
CURRENT
BUDGET
3,200,000.00
105,000.00
145,000.00 .
7,000.00
170.00
57,000.00
5,100.00
43,500.00
107,41 3.00
9,000.00
8,976.00
108,294.00
240.00
2,200.00
5,800.00
300.00
10,000.00
14,150.00
225,000.00
36,400.00
52,000.00
8,700.00
701,243.00
JUSTIFICATION
D.ept. Head Signature_: __________________ _
Finance Director:
Date Approved:
Page ____ of ___ _
AMOUNT
INCREASE
(DECREASE)
250,000.00
30,000.00
45,000.00
100.00
10.00
12,025.00
(3,075.00)
(5,000.00)
4,487.00
5,000.00
624.00
(15,294.00)
40.00
2,000.00
2,200.00
150.00
(4,000.00)
5,850.00
35,000.00
2,000.00
4,000.00
800.00
46,917.00
Date:
Date:
Date Posted:
PROPOSED
BUDGET
3,450,000.00
135,000.00
190,000.00
7,100.00
180.00
69,025.00
2,025.00
38,500.00
111,900.00
14,000.00
9,600.00
93,000.00
280.00
4,200.00
8,000.00
450.00
6,000.00
20,000.00
260,000.00
38,400.00
56,000.00
9,500.00
748,160.00
-------
-------
-------
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2013-2014
DATE: September 23, 2013
DEPARTMENT: Various
FUND: General
AMOUNT
CURRENT INCREASE
ACCOUNT NO. ACCOUNT TITLE BUDGET (DECREASE)
01-2100-6315 Computer System 10,000.00 5,000.00
01-2100-6332 Postage & Freight 1,600.00 1,100.00
01-2100-6333 Travel & Training 4,000.00 500.00
01-2100-6350 Building/Structure Improvements 2,000.00 750.00
01-2100-6393 Contractual Services 10,000.00 10,000.00
01-1900-6341 Insurance General 13,618.00 17, 174.00
01 -2101-6222 Motor Vehicle Fuel 8,000.00 500.00
01-2101-6115 Extra Help 18,000.00 1,000.00
01-2.200-6110 Salaries & Wages 841,719.00 3,581.00
01-2200-6111 Overtime 68,000.00 14,000.00
01-2200-6220 Miscellaneous Supplies 2,700.00 200.00
01-2200-6349 Natural Gas 2,000.00 900.00
01-2200-6351 Fixed Plant & Equipment R&M 1,500.00 1,200.00
01.-2200-6355 Vehicle & Equipment R&M 30,000.00 30,000.00
01-22-00-6366 Rental etiuipment 3,000.00 1,000.00
01-3000-6210 General Office Supplies 2,500.00 4,000.00
01-3000-6341 Insurance General 2,240.00 2,410.00
01-3000-6349 Natural Gas 800.00 175.00
01-3100-6111 ·Overtime 38,000.00 (18,000.00)
01-3100-6222 Motor Vehicle Fuel 38,500.00 (3,000.00)
01-3100-6240 Signs, Signals & Markers 18,000.00 (8,000.00)
01-3100-6246 Street & Bridge Supplies 85,000.00 (20,000.00)
01-3100-6354 Traffic Lights 9,000.00 (4,000.00)
01-3100-6355 Vehicle & Equipment R&M 6,000.00 (2,000.00)
TOTAL 1,216,177.00 38,490.00
JUSTIFICATION
DepL Head Signature_: __________________ _
Finance Director: Date:
Date Approved: Date Posted:
Page ____ of ___ _
PROPOSED
BUDGET
15,000.00
2,700.00
4,500.00 _
2,750.00
2e.ooo.oo
30,792.00
8,500.00
19,000.00
845,300.00
82,000.00
2,900.00
2,900.00
2,700.00
60,000.00
4,000.00
6,500.00
4,650.00
975.00
20,000.00
35,500.00
10,000.00
65,000.00
5,000.00
4,000.00
1,254,667.00
-------
-------
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
01-3200-6110
01-3200-622.2
. 01-3200-6258
01-3200-6333
01-3200-6341
01-5100-6111
01-5100-6210
01-5100-6236
01-5100-6243
01-5100-6341
01-5100-6720
01-9000-6315
01-9000-6326
01-9000-6393
01-9000-6409
01-9000-6904
01-9000-6906
01-9000-6907
01-9000-6939
01-9000-6400
25-0000-4 910
30-0000-4910
31-0000-4901
35-0000-4910
36-0000-4910
39-0000-4910
2013-2014
September 23, 2013
Various
General/Port Security/Capital Outlay
Street lmprovemenUParks Special
ACCOUNT TITLE
Salaries & Wages
Motor Vehicle Fuel
Motor Vehicle Supplies
Travel & Training
Insurance General
Overtime
General Office Supplies
Foods
Special Program Supplies
Insurance General
Buildings, Fixtures & Grounds
Computer System
Retiree Insurance
Contractual Services
Vacation j3uy .6ack
Transfer to Parks Special Fund
Transfer to Port Security Complex
Transfer to Capital Outlay
Tranter to Street Improvement Fund
Special Programs
Transfer In
Transfer In
Transfer from General Fund
Transfer In
Transfer In
Transfer In
TOTAL
CURRENT
BUDGET
96,936.00
2,100.00
2,000.00
550.00
1,587.00
6,000.00
2,000.00
9,000.00
5,000.00
20,744.00
50,000.00
96,500.00
28,000.00
10,000.00
22.000,00
40,000.00
-
1,683,650.00
950,000.00
60,000.00
40,000.00
250,000.00
1,683,650.00
250,000.00
100,000.00
950,000.00
6,359,717.00
JUSTIFICATION
Dept. Head Signature_: __________________ _
Finance Director:
Date Approved:
Page ____ of ___ _
AMOUNT
INCREASE
(DECREASE)
5,864.00
5,900.00
400.00
750.00
(1 ,085.00)
5,000.00
400.00
1,050.00
1,000.00
(3,714.00)
26,388.00
35,500.00
26,000.00
1,000.00
(22,000.00)
10,000.00
400,000.00
150,000.00
55,000.00
(10,000.00)
10,000.00
400,000.00
150,000.00
10,000.00
30,000.00
55,000.00
1,342,453.00
Date:
Date:
Date Posted:
PROPOSED
BUDGET
102,800.00
8,000.00
--2,400.00
1,300.00
502.00
11,000.00
2,400.00
10,050.00
6,000.00
17,030.00
76,388.00
132,000.00
54,000.00
11 ,000.00
-
50,000.00
400,000.00
1,833,650.00
1,005,000.00
50,000.00
50,000.00
650,000.00
1,833,650.00
260,000.00
130,000.00
1,005,000.00
7,702,170.00
-------
-------
-------
FISCAL YEAR:
DATE:
DEPARTMENT:
FUND:
ACCOUNT NO.
50-6000-6110
50-6000-6124
50-6000-6256
50-6000-6341
50-6000-6393
50-6100-6110
5Q.6100.S124
50-6100-6331
50-6200-6323
50-6200-6341
50-6200-6348
50-6200-6393
50-6300-6110
50-6300-6111
50-6300-61 16
50-9000-6409
52-0000-4890
52-3300-6110
52-3300-6111
52-3300-6113
52-3300-6222
52-3300-6258
52-3300-6341
52-3300-6343
52-5300-6390
52-3300-6397
70-1700-611 1
70-1700-6113
70-2100-6110
70-2100-6111
70-2100-6113
70-2100-6115
70-2100-6265
70-2100-6406
70-2100-6747
70-9000-6326
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
2013-2014
September 23, 2013
Various
W/S, Solid Waste, Dispatch
AMOUNT
CURRENT INCREASE
ACCOUNT TITLE BUDGET (DECREASE)
Salaries & Wages 309,788.00 12,562.00
TMRS 30,5&7.00 1,.433.00
Chemicals & Insecticides 290,000.00 (20,000.00)
Insurance General 46,494.00 15,266.00
Contractual Services 30,000.00 1,900.00
Salaries & Wages 182, 115.00 3,000.00
TMRS 15,402.00 798.00
Telephone 1,000.00 200.00
Health Inspection Fees 30,000.00 (2,000.00)
Insurance General 27,191 .00 3,219.00
Electricity 15,000.00 (10,000.00)
Contractual Services 590,777.00 (15,000.00)
Salaries & Wages 460,939.00 (20,939.00)
Overtime 65,500.00 20,000.00
Certification P-ay 1,620.00 1,620.00
Vacation Buyback 30,000.00 (30,000.00
Miscalleneous Income 500.00 39,000.00
Salaries & Wages 277,475.00 2,000.00
Overtime 12,000.00 2,500.00
Longevity 1,680.00 700.00
Motor Vehicle Fuel 76,000.00 10,000.00
Motor Vehicle Supplies 73,000.00 13,000.00
Insurance General 2,303.00 (1,003.00)
Insurance Motor Equipment 12,979.00 1,380.00
Waste Disposal 275,000.00 . (35,000.00)
Green Waste Disposal 10,000.00 36,000.00
Overtime 1,500.00 900.00
Longevity 144.00 70.00
Salaries & Wages 451,037.00 (41,037.00)
Overtime 35,000.00 . 33,000.00
Longevity 5,184.00 (1 ,900.00)
Extra Help 10,000.00 13,575.00
Supplies/Minor Tools & Equipment 500.00 700.00
Contingency 10,000.00 (5,000.00)
Radio & Radar Equipment -19,525.00
Retiree Insurance -7,685.00
TOTAL 3,380,695.00 58,154.00
JUSTIFICATION
Date:
PROPOSED
BUDGET
322,350.00
32,000.00
270,000.00
61 ,760.00
31,900.00
185, 115.00
16,200.00
1,200.00
28,000.00
30,410.00
5,000.00
575,777.00
440,000.00
85,500.00
3,240.00
-
39,500.00
279,475.00
14,500.00
2,380.00
86,000.00
86,000.00
1,300.00
14,359.00
240,000.00
46,000.00
-
2,400.00
214.00
410,000.00
68,000.00
3,284.00
23,575.00
1,200.00
5,000.00
19,525.00
7,685.00
3,438,849.00
Dept. Head Signature_: __________________ _
Finance Director: Date:-------
Date Approved: Date Posted: -------
Page ____ of ___ _
ORDINANCE NO. 2013-19
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS
TEMPORARILY SUSPENDING ORDINANCE NO. 2013-15 THAT AMENDED
CHAPTER 74, ARTICLE IV OF THE CODE OF ORDINANCES, CITY OF NEDERLAND,
TEXAS, RELATING TO DEFINmONS, RESTRICTIONS ON REGISTERED SEX
OFFENDERS RESIDENCY; AND PROVIDING FOR SEVERABIUTY
WHEREAS, on September 10, 2013, the City Council of the City of Nederland, Texas
adopted Ordinance No. 2013-15; and
WHEREAS, the City Council desires to suspend the effective date of Ordinance No. 2013-
15 to further study the issue; and
WHEREAS, the City Council finds the suspension of Ordinance No. 2013-15 to be in the
best interest of the City of Nederland.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS:
SECTION 1. The facts and matters contained in the preamble are hereby found to be
true and correct.
SECTION 2. The effective date of Ordinance No. 2013-15 is hereby suspended fo~ a
period of 180 days.
SECTION 3. Ordinance No. 2006-03 is reinstated, still in effect, and not amended during
the 180 day period.
SECTION 4. In the event any section, paragraph, subdivision, clause, phrase, provision,
sentence or part of this Ordinance or the application of the same to any person or circumstance
shall for any reason be adjudg.ed invalid or held uncon$tiWtional by ii court of competent
jurisdiction, it shall not affect, impair or invalidate this Ordinance as a whole or any part or
provision hereof other any part or provision hereof other than the part declared to be invalid or
unconstitutional; and the City Council of Nederland, Texas, declares that it would have passed
each and every part of the same notwithstanding the omission of any and every patt of the
same notwithstanding the omission of any such part thus declared to be invalid or
unconstitutional, or whether there be one or more parts.
PASSED AND APPROVED by the City Council of the City of Nederland, Texas at a regular
meeting this the 23RD day of SEPTEMBER, A.O., 2013.
City of Nederland, Texas
ATTEST:
-P;d~~~LPkv ayFe;g n, City Cler
City of Nederland, Texas
APPROVED AS TO FORM: t"
-c.
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. October 14, 2013
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
3. CONSENT AGENDA -All consent agenda items listed are considered to be routine by
the City Cou ncil and will be enacted by one motion. There will be no separate
discussion of these items unless a council member so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
·Noes: None.
a. Minutes -September 23, 2013 regular meeting
b. Consider action regarding a request from the Mid-County Run Club to utilize
Doornbos Park for a walking/jogging club.
c. Consider action authorizing the closure of 13th Street and Atlanta Avenue on
October 31st for First United Methodist Church's "Trunk or Treat" event.
d . Payments:
• September 2013 monthly bills
• Walker Partners -$937.50, 2010 Water System Improvements project
• Bruce's General Construction -$256,401.00, Nederland City Hall project
• Bruce's General Construction -$80,136.00, Homer E. Nagel Public Safety
Complex project
• Bruce's General Construction -$88,187.31, 2013 Concrete Street
Rehabilitation project
• Schaumburg & Polk -$1,380.00, 2013 Concrete Street Rehabilitation
project
• Schaumburg & Polk -$3,604. 78, 2013 Asphalt Street Rehabilitation project
• Carroll & Blackman -$660.83, Phase II MS4 Implementation Services
Minutes Continued, October 14, 2013
4. REGULAR AGENDA
a. Proclamations
i. David Guyote represented the Knights of Columbus and thanked the City for
supporting all activities hosted by the Knights of Columbus as well as everyth·ing
the City has done for the community.
A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve a proclamation in regards to the Knights of Columbus Family
Week. MOTION CARRIED.
Ay:es: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. Misty Craven, Program Director for Victims' Assistance Center, thanked the City
for their support and asked everyone to get involved with programs which will be
held in October to promote awareness for domestic violence.
A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve a proclamation in regards to Domestic Violence Awareness Month.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b . Wanda Hollier, Executive Director of t he Nederland Heritage Festival, presented a
donation to the Nederland Police Department in the amount of $5,000.00 for the
purchase of a laptop and all-weather jackets. She said it was an honor to donate
these f unds and the Police Department has been a valuable benefit each year
during festival season.
c. Chris Duque, City Manager, reported Tresa Fenn who resides at 2311 Memphis
Avenue is in attendance to present a petition to remove "No Parking" signs on the
2600 block of Memphis Avenue.
Tresa Fenn, 2311 Memphis Avenue, presented a petition to the City Council and
requested the "No Parking" signs be taken down on her side of the street. 20
houses were approached and 11 are in favor. She stated the -residents do not want
to be ticketed for parking on the street in front of their homes.
Mary Clampitt, 2608 Memphis, expressed great concern about emergency vehicles
not being able to get down the road if cars are parked on both sides of the street.
She said before the signs were put up, no one was able to get down the street.
Gloria Kline, 2516 Memphis, reported the signs have been in place for 6 years. She
understands the residents being upset for being ticketed for parking on the street
in front of their homes. She recommended the signs stay in place and residents
and their families be exempt.
Stephanie Arceneaux, 2408 Memphis, said her mother was given a ticket for
parking on the road while taking care of the children during the day. She would
like the signs taken down.
Minutes Continued, October 14, 2013
Dean Wood, 2515 Memphis, recommended a compromise to allow parking on the
C.O. Wilson School side of the street. He said emergency vehicles could get down
the street with parking only on one side of the street.
Patsy Wagner, 2504 Memphis, said her family parks on a lot beside her house when
the land is dry. With parking on both sides of the street, she cannot get in her
driveway. She doesn't particularly 1ike the signs in front of her house, but people
need a place to park.
Darrell Bush, Police Chief, explained the neighborhood came to the city requesting
the "No Parking" signs be placed. He said all were notified this is a public street
and no exemptions could be given. It is an all park there or none park there issue.
He went on to explain the Police Department has not been aggressive in writing
tickets unless there has been a complaint.
Mayor Nugent thanked everyone for their comments and stated staff and council
would consider comments, research what can be done, and get back with
interested parties.
d. Chris Duque, City Manager, introduced Don LaBiche, LaBiche Architectural Group,
to present brief update on the Homer E. Nagel Public Safety Complex. Mr. LaBiche
began with thanking city staff for the timely move into the new City Hall so that
progress would not be hindered on the Public Safety Building. All demolition has
been completed and metal studs are up and waiting for drywall. He said the
contractor is making good time with the construction with the exception of the
contaminated soil found after demolition of the Fire Department. The work
schedule was set back about 2 weeks but he felt certain that could be made up
within the next month to month and a half. The contaminated soil has all been
removed and replaced with select fill. Mr. LaBiche advised a change order would
be forthcoming for the soil remediation and for a door the Police Chief has
requested in the file room.
e. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to approve the acceptance of a 2013 State Homeland Security Program
grant. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to authorize the solicitation of bids for t he Hurrica ne Ike Round 2.2 Sewer
Collection Line Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g. A motion was made by Councilmem ber Neal and seconded by Councilmember
Austin to approve Ordinance 2013-20, suspending effective date of Entergy Texas,
Inc.'s rate increase application. MOTION CARRIED.
Ayes: Mayor Nugent, CouncilmembeTS Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, October 14, 2013
5 . EXECUTIVE SESSION
The regular meeting was recessed at 5:26 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.072, Deliberations of Real Property and Texas Government Code 551.087,
Delibera tion Regarding Economic Development Negotiations.
6. RECONVENE
The regular meeting was reconvened at 5:48 p.m. by Mayor Nugent. He announced
that the Executive Session was held for informational purposes only and no action is
necessary.
7. COMMUNICATION
City Manager's Report:
a. National Night Out -October 15th
8. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:49 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None. ~~
R. A. Nugent, M or CitYOf~
ATTEST:
001~ OA,@j/)f/V\__ c;0Yf€rg~nJity cier
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor \(
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward· Ill v
Bert Rogers Council Member -Ward IV v
Chris Duaue City Manager v
Gay Ferguson City Clerk v
/
Jesse Branick City Attorney v
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Garv Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official J
Victoria Klehn Librarian v.
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary V,
Anaela Fanette Parks Director v
Ga~FerQU n, City Cle
October 14 2013
Date
ORDINANCE NO. 2013-20
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 OCTOBER 30, 2013, EFFECTIVE DATE PROPOSED
BY ENTERGY TEXAS, INC., IN CONNECTION WITH ITS RATE
INCREASE APPLICATION ENTITLED "APPLICATION OF ENTERGY
TEXAS, INC. FOR AUTHORITY TO CHANGE RATES AND TO
RECONCILE FUEL COSTS", FILED ON SEPTEMBER 25, 2013;
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, REQUIRING REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; FINDING THATTHE 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 September 25, 2013 Entergy Texas, Inc. ("Entergy") filed a
Statement of Intent with the City to increase electric rates and implement tariff riders and
surcharges in the Entergy Service Area; and
WHEREAS, Cities have exclusive original jurisdiction over the rates, operations and
services of an electric utility in areas in the municipality pursuant to the Public Utility
Regulatory Act §33.00l(a); and
WHEREAS, Public Utility Regulatory Act § 33.021 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 electric utility under Public Utility Regulatory Act
§ 33.023; and
WHEREAS, given the complexity of the proposed fate increase and the need to
fully review the proposed base rate, riders, and fuel adjustments it is necessary to
suspend the effective date for implementing the proposed rates until at least January 28,
2014 in order to allow the City's rate experts sufficient time to determine the merits of
Entergy's proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's $38.6 million base rate increase request,
Entergy's proposed surcharges and riders, and Entergy's proposed fuel reconciliation,
City's efforts will be coordinated with similarly situated municipalities through the
Entergy Texas, Inc. Cities Service Area Steering Committee; and
WHEREAS, the City will join with other Entergy service area 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
ordinance are hereby in all things approved and adopted.
Section 2. The effective date of Entergy's proposed rate increase, and the
propc»secf hfrlffS' refafacf tnerefc:i, is nefeoy suspe.nded foY a·n a'ddifional mnefy (9or days·
until January 28, 2014 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 Entergy Texas, Inc. Service Area Steering Committee with the understanding that the
sle'eririg committee wiff provide direction cfric:f guida'rice fo tne lifWyers wno 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 increases and fuel reconciliation of Entergy before local
and state re·gulato,Y a·utnorme·s a·na a·ny couff of 1a·w· a·na a·utlforTze·s counsel fO e·mpfoy
such rate experts as are recommended by the Cities' Steering Committee.
Section 5. The Steering Committee, shall review the invoices of the lawyers
and rate experts for reasonableness before submitting the invoices to Entergy for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from Entergy through the service of requests for information.
Section 7. Entergy shall reimburse the City, through the designated
representative city of the Steer'ing· Committee, for ttie r'eas-oriaole cosfs oT attorney and
consultant 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
co.nducted 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 14TH day of OCTOBER, 2013 .
. §£~
City of Nederland, Texas
ATTEST:
,w.u~~
City of Nederland, Texas
THE lAWTON LAW FIRM, P.C.
12600 Hill Countxy Blvd., Suite R.-275 • Austin, T c:xas 78738 • 512/322-0019 • Fax: 855/298-7978
September 26, 2Q13
Via E-Mail
Mr. Richard Ferguson
City Attorney -City of Anahuac
13201 Northwest Freeway, Suite 300
Houston, Texas 77040
Mr. Kyle Hayes
City Manager -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Dion Miller
City Manager -City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Mr. Kenneth Wall
City Attorney -City of Cleveland
Olson & Olson
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Felix Skarpa
Mayor -City of Dayton
117 Cook Street
Dayto~ Texas 77535
Mr. Jam.es Black
City Attorney -City of Groves
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
Mr. Tyrone Cooper
City Attorney -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Mf. Paul Fukuda
City Attorney -Bridge City
260 Rachal
Post Office Box 846
Bridge City, Texas 77611
Mr. David Olson
City Attorney -City of Cleveland
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Mark Winberry
City Attorney -City of Conroe
P.O. Box 3066
Conroe, Texas 77305
.Mr. David Douglas
City Manager -City of Dayton
117 Cook Street
Dayton, Texas 77535
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthm, Texas 77643
1
Ms. Tina Paez
City of Houston Administration & Regulatory
Affairs Department (ARA)
611Walker,10th Floor
Houston, Texas 77002
Mr. Leonard Schneider
Cit}' Attorney -City of Huntsville
2 Riverway, Suite 700
Houston, Texas 77056-1918
Mr. Gary Broz
City Manager-City of Liberty
1829 Sam Houston
Liberty, Texas 77575
Mr. Cary Bovey
Law Office of Cary L. Bovey, PLLC
2251 Double Creek Dr., Suite 204
Round Rock, Texas 78664
Mr. Jesse Branick
City Attorney -City of Nederland
221 Hwy. 69 South, Suite 100 (office)
Nederland, :rexas 77627
Ms. Vicky Rudy
City Manager -City of Oak Ridge North
Oak Ridge N.orth
27424 Robinson Road
Oak.Ridge North, Texas 77385
Mr. Shawn Oubre
City Manager -City of Orange
803 W. Green Avenue, Room 201
Orange, Texas 77630
Mt. Tommy GWifi
City Attorney -City of Pinehurst
202 S. Border
Orange, Texas 77630
Ms. Melba T. Pourteau
City ofHoYSton1egal Department
P.O. Box 368, Houston, Texas-77001-0368
City Hall Annex, 4th Floor
900Bagby
Houston, Texas 77001-0368
Mr. Matt Benoit
City Manager -City of Huntsville
1212Ave.M
Huntsville, Texas 77340
Mr. Bryan Fowler
City Attorney -City of Montgomery
101 Old Plantersville Road
Montgomery, Texas 77316
Mr. Brad Stafford
City Manager -City of Navasota
202 E. Washington
Navasota, Texas 77868
Mr. Christopher Duque
City Manager -City of Nederland
P.O.Box967
Nederland, Texas 77627
Ms. ClaSifia Watson
City Secretary -City of Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. Rodney Price
City Attorney -City of Pine Forest
City Attorney -City of Rose City
215 W. Freeway
Vidor, Texas 77662
Mr. Joe Parkhurst
City Administrator -City of Pinehurst
2497 Martin Luther King Jr. Drive
Orange, Texas 77630
2
I
Ms. Val Tizeno Mr. Floyd Johnson
City Attorney-City of Port Arthur City Manager -City of Port Arthur
P.O. Box 1089 · P.O. Box 1089
Port Arthur, Texas 77640 Port Arthur, Texas 77640
Mr. Pete Steele Mr. Andre Wimer
City Attorney-City of Port Neches City Manager -City of Port Neches
3120 Central Mall Drive 634AvenueC
Port Arthur, Texas 77642 Port Neches, Texas 77651
Mr. Greg Smith Mr. Harry Wright
City Manager -City of Shenandoah City Attorney -City of Silsbee
29955 IH-45 N. PO Box 186
Shenandoaji, Texas 77381 Port Neches, Texas 77651
Mr. Tommy Bartosh Mr. Larry Saurage
City Manager -City of Silsbee City Manager -City of Sour Lake
105 South 3rd Street 655 W. Barkley St.
Silsbee, Texas 77656 Sour Lake, Texas 77659
Mayor Dorothy Welch Mr. Ricky E. Jorgensen
City Attorney Leonard Schneider City Manager -City of Vidor
City of Splendora 1395 N. Main St
P.O. Box 1087 . Vidor, Texas 77662-3726
Splendora, Texas 77372
Mr. GuyN. Goodson Mayor Roy McDonald
City Attorney -City of Vidor Mayor-City of West Orange
P.O. Box 4915 2700 Western Avenue
Beaumont, Texas 77704-4915 West Orange, TX 77630
Mr. Joe Alford Michael S. Stelly
City Attorney-City of Wem Orange City of West Orange, Texas
105 Market 2700 Austin Avenue
Orange, Texas 77630 West Orange, TX. 77630
Re: Entergy Texas, Inc.'s Notice of Intent to File a Base Rate Case
Dear Cities:
Entergy Texas, Inc. ("Entergy" or "Company'') has filed a statement of intent with each
of your Cities requesting an annual base rate increase of $38.6 million, representing an overall
increase of 4.93% in revenues. In addition, the· Company requests two surcharge riders of
$3 .125 million for rate case expenses and $11.4 million of rough production cost equalization
payments. For the first year, the rate increase is $53.1 million, or an increase to current non-fuel
rates of 6.78%. The annual increase in revenues from residential customers is $7.8 million. If
3
approv~ Entergy' s base rate increase request would result in a monthly increase of $1.89 for an
average residential customer using 1000 kWh per month. Your City should have received
Entergy's statement of intent to request arate increase on September 25, 2013.
Entergy is also requesting a special circumstance request to recover an additional $21.5
million of purebased power expenses that were not approved in Entergy' s last case.
Entergy has proposed that the base rate increase become effective on October 30, 2013.
As such, the City must take action to approve, deny, modify, or suspend the rate increase
request by the October 30, 2013 proposed . effective date. We recommend that the Cities
suspend the effective date of the proposed rate increase to permit time to review Entergy's
request and make an informed recommendation to the Cities.
We are providing a proposed ordinance that would suspend the effective date proposed
by Entergy to January 28, 2014. Pursuant to Public Utility Regulatory Act, Tex. Util. Code §
36.108, 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
October 30, 2013.
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 base rate proceeding before
the Public Utility Commission and any courts, and to seek reimbursement for rate case expenses
from Entergy. ·
The Steering Committee of Cities has scheduled a meeting to discuss the case for
October 16, 2013, from 10 am to noon at Beaumont City Hall, 801 Main Street, Beaumont
Tens.
Cities have been instrumental in maintaining the rates of Entergy at just and reasonable
levels and requiring Entergy to maintain adequate service. In the past seven years, Entergy has
filed for three base rate increases. In each proceeding the efforts of the Cities have resulted in
reduced rates for customers. The following table summarizes each base rate increase requested
and the settled or litigated result of the case after Cities have intervened and contested the rate
mcrease:
Ente1"2Y'S Past Three Base Rate Cases
Percentage of
Date Filed Reouested Increase Result Reouest
Sept. 26, 20071 $112 Million $28 Million 25%
Dec. 30, 20092 $211.5 Million $68 Million 32%
Nov. 28, 20113 $111.8 Million $27.7 Million 25%
1 Application of Entergy Gulf States, Inc. for Authority to Change Rates and to Reconci1e Fuel Costs, Docket No.
34800, Application.
2 Application of Entergy Gulf States, Inc. for Authority to Change Rates and to Reconcile Fuel Costs, Docket No.
37744,Application.
4
As is shown above, after Cities have intervened and contested Entergy' proposed rate increase,
Entergyfs final rate increase is a fraction of the rate increase requested. Cities• participation has
also helped result in fuel refunds and rate credits of more than $30 million as part of the settled
or litigated resolution of the three rate cases.
Cities' continued involvement in Entergy's rate cases bas been instrumental in
maintaining just and reasonable rates for customers within the Cities and we expect that
Entergy's currently proposed rate case will be no different. We look forward to discussing this
case more with you at the October 16th meeting of the Steering Committee of Cities.
If there are any questions or concerns, please do not hesitate to call.
Sincerely,
v~.,J~;i~
Daniel J. Lawton
3 Application of Entergy Gulf States, Inc. for Authority to Change Rates, Reconcile Fuel Costs, and to Obtain
Deferred Accounting Treatment, Docket No. 39896, Application.
5
ORDINANCE NO.
ORDINANCE OF THE CITY OF
TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE
DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE
OCTOBER 30, 2013, EFFECTIVE DATE PROPOSED BY ENTERGY
TEXAS, INC., IN CONNECTION WITII ITS RATE INCREASE
APPLICATION ENTITLED "APPLICATION OF ENTERGY TEXAS,
INC. FOR AUTIIORITY TO CHANGE RATES AND TO RECONCILE
FUEL COSTS", FILED ON SEPTEMBER 25, 2013 ; AUTHORIZING
TIIB IDRING OF LA WYERS AND RATE EXPERTS; AUTHORIZING
THE CITY~S PARTICIPATION TO THE FULL EXTENT PERMiTIED
BY LAW AT TIIB PUBLIC UTILITY COMMISSION OF TEXAS,
REQUIRlNG REIMBURSEMENT OF MUNICIPAL RATE CASE
EXPENSES; FINDING THAT THE :MEETING CO:MPLIES Willi THE
OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN
EFFECTNE DATE
WHEREAS, on or about September 25, 2013 Entergy Texas, Inc. ("Entergy'')
filed a Statement of Intent with the City to increase electric rates and implement tariff
riders and surcharges in the Entergy Service Area; and
WHEREAS, Cities have exclusive original jurisdiction over the rates, operations
and services of an electric utility in areas in the municipality pursuant to the Public
Utility Regulatory Act §33.00l (a); and
WHEREAS, Public Utility Regulatory Act § 33.021 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 electric utility under Public Utility Regulatory
Act§ 33.023; and
WH:EREA.s, given the complexity of the proposed rate increase and the need to
fully review the proposed base rate, riders, and fuel adjustments it is necessary to suspend
the effective date for implementing the proposed rates until at least January 28, 2014 in
order to allow the City's rate experts sufficient time to determine the merits of Entergy' s
proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's $38.6 million base rate increase
request, Entergy' s proposed surcharges and riders, and Entergy' s proposed fuel
reconciliation, City's efforts will be coordinated with similarly situated municipalities
through the Entergy Texas, Inc. Cities Service Area Steering Committee; and
WHEREAS, the City will join with other Entergy service area municipalities in a
steering committee in order to coordinate the hiring aiid 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 IBE
CITY OF TEXAS, THAT:
Section 1. That 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 Entergy' s proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until January 28, 2014 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 Entergy Texas, Inc. Service Area Steering Committee with the understanding that the
steering committee will provide direction and guidance to the lawyers who are
representing said cities.
Section4. The City employs The Lawton Law Firm, P.C. to represent the
City with regard to the proposed rate increases and fue1 reconci1iation of Entergy before
local and state regulatory authorities and any court of law and authorizes counsel to
employ such rate experts as are recommended by the Cities' Steering Committee.
Section 5. The Steering Committee, shall review the invoices of the lawyers
and rate experts for reasonableness before submitting the invoices to Entergy for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from Entergy through the service of requests for.information.
Section 7. Entergy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorney and
consultant 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 ___ day of ______ -" 2013.
ATTEST:
REGULAR MEETING OF THE CITY COUNCIL OF THE
"CITY OF NEDERLAND
4:30 p.m. October 28, 2013
1 . MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 council member so requests, in which event the item
will be removed from the Consent Agenda and considered separately. ·
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -October 14, 2013 regular meeting
b. September 2013 Departmental Reports
c. Tax Assessor Collection Report -September 2013
d. Payments:
• LaBiche Architectural Group, Inc. -$4,397 .14, Nederland City Hall project
• LaBiche Architectural Group, Inc. -$1,355.60, Homer E. Nagel Public Safety
Complex project
• Walker Partners -$1,050.00, 2010 Water System Improvements project
• Carroll & Blackman, Inc. -$182.00, Phase II MS4 Permit Implementation
Services
• Bruce's General Construction -$23,823.00, Nederland City Hall project
• Bruce's General Construction -$145,170.00, Homer E. Nagai Public Safety
Complex project
4. REGULAR AGENDA
a. Chris Duque, City Manager, stated representatives from Nederland Little League
are in attendance to present their Field of Dreams project. The property they have
played on for SO years can no longer by utilized after December 31, 2014.
Nederland Little League has signed a lease for property for their new ball field
behind the electrical school on Helena Avenue.
Minutes Continued, October 28, 2013
Jimmy Harrison, 1429 Grand, Port Neches, and Chuck McCaully, 3119 Avenue B,
Nederland presented the proposed ball fields to be constructed on property across
the highway from their existing fields. He explained the land is very raw and would
require a great deal of work in order to be playable. He reported Chevron has
donated $100,000 toward the project. Construction Zone will be the contractor
and is looking to begin work at the end of November.
Jim English, Construction Zone, inquired if the city would be able to assist with
such items as drainage, waterlines, and sewer lines to the property. Mayor Nugent
said the City would help in any way legally that they could.
Mr. Duque suggested a meeting next week between Nederland Little League and
city staff to discuss options.
b. Ann Murphy, 515 N. 35th Street, President of Friends of the Library, presented a
check in the amount of $8,000.00 to Victoria Klehn, Librarian of Marion & Ed
Hughes Public Library. Ms. Murphy said they were happy to make this donation
that came from book sales. Ms. Klehn thanked the Friends of the Library on behalf
of her staff and library users.
A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to accept a donation from the Friends of the Library in the amount of
$8,000.00 to the Marion and Ed Hughes Public Library. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. A motion was made by Councilmember Rogers and seconded by Councilmember
Neal to authorize the submission of the Year 1, FY 2012-2013, Annual Stor mwater
Report to the Texas Commission on Environmental Quality. MOTION CARRIED.
Ayes: Mayor Nugent, Councllmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to approve a work authorization in the amount not to exceed $14,460.00 with
Carroll & Blackman, Inc. in regards to the Phase II MS4 Permit Implementation
Services. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A mot ion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2013-11, approving the 2013 Tax Roll, as
certified by the Jefferson County Appraisal District. "MOTION-CARRIE-0.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
f. Bids/Purchases:
i. A motion was made by Councilmember Albanese and seconded by
Councilmember Neal to approve the purchase of an in-car camera system for the
Nederland Police Department via HGAC, Buy Board, or other state-approved
contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, October 28, 2013
ii. A motion was made by Councilmember Austin and seconded by Councilmember
Rogers to approve the purchase of an online bill payment system from Tyler
Technologies, Inc. via HGAC, Buy Board, or other state-approved contract.
MOTION CARRI ED. .
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
g. A motion was made by Councilmember Neal and seconded by Councilmember
Austin to approve A Temporary Road Access Agreement with Sunoco Partners
Marketing & Terminals L.P. expiring December 31, 2013 subject to legal review
and approval. MOTION CARRIED.
Aye~. Mayor Nugent, Councilmembers Austi"n, Nea·I, Albanese, and Rogers.
Noes: None.
h. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve an ad valorem tax abatement request from Sunoco Partners
Marketing & Terminals L.P. for a Rotation MANIFOLD Booster and amendment for
Tanks 1572 and 1573 approved January 31, 2012. MOTION ·CARRIE D.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
i. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve a pipeline easement with Sunoco· Pipeline L.P. of the purchase
price of $1,200.00/rod subject to legal review and approva1. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
j . A motion was made by Mayor Pro Tern Alba nese and seconded by Councilmember
Austin to approve Change Order No. 1 -Hurricane Ik~ Round 2.2 -Traffic Signal
Lights project to replace existing service panels with TxDOT stainless steel breaker
boxes at 3 locations. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None. ·
k. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the First Amendment to the Amended and Restated
Wastewater Treatment Plant Operation and Maintenance Agreement between
Severn Trent Environmental Services, Inc. and the City of Nederland subject to
legal review and approval. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
5. EXECUTIVE SESSION
Mayor Nugent announced the Executive Session would not be necessary.
6. COMMUNICATION
City Manager's Report:
a. Construction Project Update
• Asphalt Hotmix project will begin November 7th.
Minutes Continued, October 28, 2013
• Concrete Work on Helena is progressing as scheduled.
• Hurricane Ike projects: traffic signal project has begun, generator project
will begin November 1st, and sewerline project has bid and will soon be
awarded.
• City Hall: Superintendent is putting a timeline together for the final projects
to finish.
• Homer E. Nagai Public Safety Complex: Volunteer Firefighters met to
discuss a campaign to install brick pavers in front of the building.
b. Chamber of Commerce's Trunk-R-Treat, October 31st
c. Veterans' Day Program, November 11th
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 6:04 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes~ N-0ne.
ATTEST:
GaYFefQU ri,city c1e
City of Nederland, Texas
R.A. Nugent/6llayor
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING A TIENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor ~/
Talmadge Austin Council Member -Ward I v
/
Billy Neal Council Member -Ward II v
Don Albanese Council Member -Ward Ill v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney ·/
Cheryl Dowden Director of Finance v
Darrell Bush Police Chief v
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works J
George Wheeler Building Official
Victoria Klehn Librarian v
Holly Guidry Human Resources Director J
Joni Underwood Executive Secretary v
Angela Fanette Parks Director
October 28 2013
Date
J. SHANE BOW ARD
TAX ASSESSOR-COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $15,613.79, represents all taxes collected for CITY OF NEDERLAND during the
month of September 2013.
J. Shane Howard
JEFFER SON COUNTY COURTHOUSE • P.O. BOX 21 12 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589
CITY OF NEDERLAND
RESOLUTION NO. 2013-11
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND APPROVING THE
2013 TAX ROLL.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS;
THAT pursuant to the Texas Property Tax Code, Section 26.09, the City Council of
the City of Nederland hereby approves the attached 2013 tax roll.
PASSED AND APPROVED this the 2Sth day of October, 2013,
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
J. SHANE HOW ARD
TAX ASSESSOR-COLLECTOR
October 18, 2013
Cheryl Dowden
City of Nederland
P 0 Box 967
Nederland, TX 77627
Dear Ms. Dowden:
SUSIE JAMES
CHIEF DEPUTY
Enclosed is the 2013 Certified Tax Roll Summary. Pursuant to the Texas Property
Tax Code, Section 26.09, this certified tax roll summary should be approved by
your Board of Directors at your next board meeting. After the approval, please
return your resolutfon for retention in the Tax Office.
If you should have any questions or require further information, please feel free to
call.
Sincerely,
J . SHANE HOWARD
Assessor-Collector of Taxes
Je"fferson County, Texas
JSH:db
Enclosure
cc: Christopher Duque
grandrcp.11r.13
JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589
10/16/2013 09:38:21 TC501 S;BQUBNGB: 1504038 'l:AX COLLBC,TION SYSTBM CBRTIFIBD ROLL JURIS~ICTION SU°8MARY PROCBSBING FOR 'l:AX YBAR: 2013 JUllISDICTION: 0031 C:ITY OP NED~ TO'I'..AI. PA\'tCBLS : .MJ\RXBT VALµ!:: RnMPT PARCELS: EXEMPT V:r.LUB: AG PROPBJlTIBS1 HS CAPPED CNT: HB366 CN1'.: SRH DIP CNT: VET FULL XMP CNT: PRORATED BXBMP B.XXG COUN'J,' PROl?ATBD RXEMP BXXI COUN'l' PRORATED EXBMP EXX,1 COUN'l' PRORATED BXBMP lllXO COON'J,' PRORATED EXBMP EXXV COUNT GROSS TAXABLE: STATB HOMBSTE!ID LOCAL KOMBSTEAD OVBR65 LOCAL OVJZR6S $URVIVING SPOUSE I It OP DISABLED: 9,;L99 1,037,914,646 0 0 1 80 52 3 18 3 1 11 2 156 1,035,183,343 4,668 4,668 l,489 1,499 1,0 249 TOTAL VBT 98 * V'ifi SURVIVIliG SP 1 * INCLl!lDBD IN 'mB TOT.All VBT FIBLD TOTAL PAR'.!' XMP: TAXABLE VALtJB : FROZEN AC:CTS: LEVY LOSS.: TOTAL LEVY: LATE ~PEN cNT: nozBN BGMES!lfTB, FROZEN T~LB' UNFROZEN LEVY: FROZEN UW'f, Tl:F CAPTtBtED: TOTAL NONrKJMT PARCELS: 26,751,599 964,978,343 0 0.00 S,71.1,253.23 311 0 O' 0.00 0.00 0 9,199 TAX RATE<00.591853 SP\.TB ROM: 0 STATE 065: 0 DISABLBD: 15,0PO AG EXCLUSION: BS CAPPED AMT: RB366 WU.UH: SRK BXl!.MPTION: VBT fUL;L EXBMPTION: AMOUN!l' FOR EXXG AM01JNlI' FOR BXXI: .AMOtlN1r FOR EXXJ AMOON!l' FOR EXXU AMOON/l' FOR EXXV HOMESTBAD AMT: HOMBSTBfUl AMT: OVER 65. AMT: OVRR 65 AMT: .AMOUNT: DISABLED AMT: VBTBRAN1 AMT: VETBRAN1 AMT: IATB RllNDPEN AMT: OPT HOM: 0.00000 OPT 065: 15,000 47,940 685,170 l2,S20 45,000 1,940,673 377,530 40,550 3,117,432 190,930 39,726,959 0 0 0 2!!,049,073 l.50,000 3,575,026 977,500 12,000 4,097.25 PAGB• 1.6
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. November 11, 2013
1. MEETING
The meeting was called to order at 4 :30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead by Councilmember Rogers.
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 council member so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Rogers and seconded by Councilmember Austin
to approve the Consent Agenda Items 3 a-d as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -October 28, 2013 regular meeting
b. Consider action regarding a request from Randy Rich to utilize the Nederland
Recreation Center for a futsal league.
c. Street Closures:
• Consider action authorizing the closure of Boston Avenue from 17th Street
to Twin City Highway and all intersections, as well as North 12th Street from
Boston Avenue to the alley on December 7th for the Christmas on the
Avenue event.
• Consider actin authorizing the closure of Nederland Avenue from 21st Street
to Twin City Highway, Twin City Highway from Nederland Avenue to Boston
Avenue, and Boston Avenue from Twin City Highway to 17th Street on
December 10th for the Annual Lighted Christmas Parade.
d. Payments:
• October 2013 monthly bills
• Walker Partners -$1,050.00, 2010 Water System Improvements project
• Bruce's General Construction -$68,519.90, 2013 Concrete Street
Rehabilitation project
4. REGULAR AGENDA
a. Chris Duque, City Manager, introduced Wanda Hollier of the Nederland Heritage
Festival to make a presentation to the Nederland Fire Department.
Minutes Continued, November 11, 2013
Ms. Hollier presented a check in the amount of $2,650.00 to the Nederland Fire
Department for the purchase of camera equipment.
A motion was made by Councilmem ber Neal and seconded by Mayor Pro Tern
Albanese to accept a donation from the Nederland Heritage Festival in the amount
of $2,650.00 to the Nederland flre Department. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. Chris Duque, City Manager, recognized Cheryl Dowden, Finance Director, and her
staff for receiving the Certificate of Achievement for Excellence in Financial
Reporting, which is the highest form of recognition in governmental accounting and
financial reporting. The Nederland Finance Department has received this award
for 16 years.
b. Chris Duque, City Manager, explained he has been notified several councilmembers
would like to purchase the laptops they utilized prior to the issuance of iPads. The
current retired computer policy adopted in 2006 allows city employees to have first
access to computers and related equipment that have been declared surplus. The
proposed amended policy would allow elected officials to have first priority to
purchase their retired computer, laptop, etc. The IT Director cautioned removing
the language regarding the existing data deletion, noting that anyone wishing to
purchase these laptops needs to be aware of the security issues of the system
being purchased and the system could be compromised with the current Operating
System after February 2014 (Microsoft Windows XP end of life, support and security
updates). This could be a liability issue for the city computer system if there is any
type of data related to our network/data which could remain on the laptop if the
hard drive is not removed or purged. To resolve this issue, the PUC/laptop hard
drive should be wiped of the current Operating System and Data and the
purchasing party will be responsible for obtaining the software needed to operate
the equipment purchased and assumes any and all security issues and/or liabilities.
Bert Rogers stated he met with the Mayor because he and a couple of other
councilmembers do not think this medium is appropriate for what is needed. He
explained his concern regarding maneuvering through the agenda during meetings
and printing items from his iPad. He asked the reasoning behind purchasing the
iPads versus laptops because it is not what he requested. Mr. Duque stated the
iPads were purchased because they are more cost effective and best facilitated the
continuing process of going paperless. He added he would purchase the City
Councilmembers new laptops if that was the City Council's desire. Mr. Duque then
offered to hold a council workshop to address any issues councilmembers are
having using the iPads. Billy Neal stated the laptops would not be good to have
without an operating system. Don Albanese and Talmadge Austin stated they
would not want to be the cause of the city being "hacked". The consensus was to
postpone any action and hold a workshop to discuss iPad issues.
A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to postpone action amending the Retired Computer Disposal Policy and
hold a workshop on November 13th at 3:00 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, November 11, 2013
d. Chris Duque, City Manager, stated a meeting was held between residents who were
in favor of removing the "no parking" signs along Memphis Avenue and residents
who were opposed to having signs removed on October 3Qth. An agreement was
made with the following recommendations: On the south side of Memphis Avenue,
a "no parking" zone will be established extending 302 feet from 27th Street, on the
north side of Memphis Avenue, a "no parking" zone wfll be established extending
530 feet from 27th Street. On North 27th Street, a "no parking" zone will be
established extending 40 feet south from Memphis Avenue.
A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to amend Ordinance No. 107, amending the NO PARKING zone on Memphis
Avenue. MOTION CARR.IED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese'to approve Ordinance No. 2013-21, authorizing participation with other
Entergy service area cities in Public Utility Docket No. 41850. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
e. Chris Duque, City Manager, reminded everyone on April 22nd City Council
addressed a number of property condemnations, including property located at
2423 Nede~land Avenue owned by Mr. Waleed Kahn. Council voted to allow Mr.
Kahn to re-permit and re-start work with 14 days from April 23rd or within 50 days
beginning May 5th to demolish and clear the property. Mr. Kahn requested an
extension and Mr. Wheeler, Building Offic.ial, recommended extending his deadline
to September 5th, with several conditions for maintaining the property. After failing
to comply wit h the September 5th deadline, Mr. Kahn returned to Council on
September 23rd. Council ordered Mr. Kahn to within 14 days complete the
barricading of all front walk through openings with structurally sou nd material,
completely remove the sign frame that is bent over and located near the Nederland
Avenue right-of-way~ completely repair all ceiling insulation t hat is hanging down
and visible from the street, and continue to maintain the· property free from debris,
high weeds and include weed eating around obstructions when the grass is mowed.
The order included Mr. Kahn to within 45 days re-start the construction needed to
complete the project and to reappear before City Council if not in full compliance.
George Wheeler, Building Official, reported Mr. Kahn has complied with all
conditions except for the re-permit and re-start of construction work.
Mr. Kahn explained he is having trouble with a tax issue which he preferred to not
go into detail about. He advised the bank loan cannot proceed until this is cleared
up.
Mr. Duque suggested recessing to Executive Session.
5 . EXECUTIVE SESSION
The regular meeting was recessed at 5:22 p.m. by Mayor Nugent for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
Minutes Continued, November 11, 2013
551.071, Consultation ·with City Attorney, and Texas Government Code 551.074,
Personnel -City Manager.
6 . RECONVENE
The regular meeting was reconvened at 6:09 p.m. by Mayor Nugent.
A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve a 180-day extension making written monthly progress reports
to Mr. Wheeler and keeping the property properly maintained. MOTION
CARRIED.
Ayes~ Mayor Nugent, Councilmembers Austin, Nea l, Albanese, and Rogers.
Noes: None.
6 . COMMUNICATION
City Manager's Report:
a. The second City Council meeting for November will be held November 18th.
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 6:15 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
~J 4dM ~Mf-lh daYef9U1s'n, City Clerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor ·V .
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
Oon Albanese Council Member -Ward 111· v
Bert Rogers Council Member -Ward IV \/
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney v
Cheryl Dowden Oirector of Finance v
Darrell Bush Police Chief J
Gary Collins Fire Chief v
Steve Hamilton Director of Public Works v
George Wheeler Building Official v,
Victoria Klehn Librarian v
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v ,
Angela Fanette Parks Director J
November 11 2013
Date
AMENDMENT TO ORDJNANCE NO. 107
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND AMENDING ORDINANCE
NO, 107, WHICH REGULATES TRAFFIC UPON
THE PUBLIC STREETS OF THE CITY OF
NEDERLAND, AND PROVIDING PENAL TIES
AND FINES FROM ONE DOLLAR ($1.00) TO
TWO HUNDRED DOLLARS ($200)
WHEREAS, the City Council of the City of Nederland is of the opinion that additional traffic
control devices and #No Parking" zones are required in order to properly regulate traffic and maintain
safety on the roads and streets of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS THAT, Ordinance No. 107, City of Nederland, Texas, is hereby amended by
deleting the following language and replacing it with the following language:
ARTICLE XII.
SECTION 97-NO PARKING ON PAVEM~ • ._.
;t:iei;e shall he #Ne-ParkiAg eA PaueffleAt#i er tllereef1 eA-M eMphis PA·e11111e s~i111g at
tl=l.e iAters.e.et.ieA at 27tt:i Street aA:EI eeAtiAl:liAg ts tl:l.e iAtersertieA at 23re Street.
ARTICLE XII.
SECTION 97 -NO PARKING ON PAVEMENT
On the south lane of Memphis Avenue, there shall be "No Parking on Pavement"
extending 302 feet from the 27th Street right-of-way; and on the north lane of Memphis
Avenue, there shall be "No Parking on Pavement" extending 630 feet from the 27th Street
right-of-way. On the east side of North 2Jth Street, there shall be "No Parking" extending 40
feet south from the Memphis Avenue right•of•way.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of Nederland, Texas this the
11th day of November, 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
ORDINANCE NO. 2013-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, AUTHORIZING PARTICIPATION WITH
OTHER ENTERGY SERVICE AREA CITIES IN PUBLIC UTILITY
COMMISSION DOCKET NO. 41850
WHE-REAS,. Entergy Te~s, Jn£..'s ("ETI") .and m;::. Holdings ("ITC'') have filed a joint
application for approval ·of·change of-ownership and ·control of transmission business,
transfer of certification rights, and related relief with the Public Utility Commission of.
Texas ("PUC" or "Commission"), docketed as Docket No. 41850;
WHEREAS, the City has passed a Resolution supporting a findin1:: of public
interest for ETl's and ITC's proposal for change in ownership and control of the
transmission business and transfer of certification rights conditioned upon the
Commission's approval of the commitments made by ETl and ITC to Cities and
referenced in City's Resolution.
WHEREAS, ETI and ITC have re-filed their application for approval of change of
ownership and control of transmission business, transfer of certification rights, and
related relief so as to include the commitments made to Cities as part of the record
evidence in the case.
WHEREAS, Cities have standint: in each case before the Public Utility Commission
of Texas that relates to an electric utility providing service iri the municipality pursuant
to TEX. UTJL. Code§ 33.025;
NOW, THEREFIJRE, 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 as part of
the Entergy Texas, Inc. Service Area Steering Committee in ETl's
and ITC's joint application for approval of change of owriersliip and
control of transmission business, transfer of certification rights,
and related relief filed with the Public Utility Commission in 2013
and shall seek appropriate regulatory relief consistent with the
City's Resolution conditionally supporting a public interest finding.
SECTION 2. The City is authorized to join with other municipalities as part of the
Entergy Texas, Inc. Service Area Steering Committee.
SECTION 3. The City employs The Lawton Law Firm, P.C. to represent the City
with regard to the proposed transaction before state regulatory
authorities and any court of law with the understanding that the
Steering Committee will provide direction and guidance to the
lawyers who are representing said cities. The City authorizes
counsel to employ such rate experts as are recommended by the
Cities' Steering Committee.
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 S. 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 ll™.da.y.of.NOV.EMBER.2013.
ATIEST:
~1JJJl ~J!)(V\-~ n, City Cler
·city df Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
\
2
THE LAWTON LAW FIRM, P.C.
12600 Hill C.Ountry Blvd., Sui~ R-275 •Austin, Texas 78738 • 511/32U)()19 •Fax: 855/298-7978
Via E-Mail
Mr. Richard Ferguson
City Attorney -City of Anahuac
13201 Northwest Freeway, Suite 300
Houston, Texas 77040
Mr. Kyle Hayes
City Manager-City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Dion Miller
City Manager -City of Cleveland .
901 E. Houston
Cleveland, Texas 77327
Mr. Kenneth Wall
City Attorney -City of Cleveland
Olson & Olson
Wortham Tower, Suite 600
2727 Allen Parkway
Houston, Texas 77019
Mr. Felix Skarpa
Mayor -City of Dayton
11 7 Cook Street
Dayton, Texas 77535
October 22, 2013
Mr. Tyrone Cooper
City Attorney -City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Mr. Paul Fukuda
City Attorney -Bridge City
260 Rachal
Post Office Box 846
Bridge City, Texas 77611
Mr. David Olson
City Attorney -City of Cleveland
Wortham Tower, Suite 6dd
2727 Allen Parkway
Houston, Texas 77019
Mr. Mark Winberry
City Attorney -City of Conroe
P.O. Box 3066
Conroe, Texas 77305
Mr. David Douglas
City Manager -City of Dayton
117 Cook Street
Dayton, Texas 77535
1
Mr. James Black
City Attorney -City of Groves
3535 Calder Avenue, Suite 300
Beaumont, TX 77706
I
Ms. Tina Paez
City of Houston Administration & Regulatory
Affairs Department (ARA)
611 Walker, 10th Floor
Houston, Texas 77002
Mr. Leonard Schneider ·
City Attorney -City of Huntsville
Liles Parker, PLLC
800 Rockmead Dr., Ste 165
3 Kingwood Place
Kingwood, TX 77339
Mr. Gary Broz·
City Manager -City of Liberty
1829 Sam Houston
Liberty, Texas 77575
Mr. Cary Bovey
Law Office of Cary L. Bovey, PLLC
2251 Double Creek Dr., Suite 204
Round Rock, Texas 78664
Mr. Jesse Branick
City Attorney -City of Nederland
221 Hwy. 69 Sou~ Suite 100 (office)
Nederland, Texas 77627
Ms. Vicky Rudy
City Manager -City of Oak Ridge North
Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
Mr. D. E. Sosa
City Manager -City of Groves
P.O. Box 3286
Port Arthm, Texas 77643
Ms. Melba T. Pourteau
City of Houston Legal Department
P.O. Box 368, Houston, Texas 77001-0368
City Hall Annex, 4th Floor
900Bagby
Houston, Texas 77001-0368
Mr. Matt Benoit
City Manager -City of Huntsville
1212Ave. M
Huntsville, Texas 77340
Mr. Bryan Fowler
City Attorney -City of Montgomery
101 Old Plantersville Road
Montgomery, Texas 77316
Mr. Brad Stafford
City Manager -City of Navasota
202 E. Washington
Navasota, Texas 77868
Mr. Christopher Duque
City Manager -City of Nederland
P.O. Box 967
Nederland, Texas 77627
Ms. Heather Neeley
City Secretary -City of Oak Ridge North
27424 Robinson Road
Oak Ridge North, Texas 77385
2
Mr. Shawn Oubre
City Manager -City of Orange
803 W. Green Avenue, Room 201
Orange, Texas 77630
Mr. Tommy Gunn
City Attorney -City of Pinehurst
202 S. Border
Orange, Texas 77630
Ms. Val Tizeno
City Attorney -City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Pete Steele
City Attorney -City of Port Neches
3120 Centra1 Mall Drive
Port Arthur, Texas 77642
Mr. Greg Smith
City Manager -City of Shenandoah
29955 IH-45 N.
Shenandoah, Texas 77381
Mr. Tommy Bartosh
City Manager -City of Silsbee
105 South 3rd Street
Silsbee, Texas 77656
Mayor Dorothy Welch
City Attorney Leonard Schneider
City of Splendora
P.O. Box 1087
Splendora, Texas 77372
Mr. Rodney Price
City Attorney -City of Pirie Forest
City Attorney -City of Rose City
215 W. Freeway
Vidor, Texas 77662
Mr: Joe Parkhurst
City Administrator -City of Pinehurst
2497 Martin Luther King Jr. Drive
Orange, Texas 77630
Mr. Floyd Johnson
City Manager -City of Port Arthur
P.O. Box 1089
Port Arthur, Texas 77640
Mr. Andre Wimer
City Manager -City of Port Neches
634AvenueC
Port Neches, Texas 77651
Mr. Harry Wright
City Attorney-City of Silsbee
PO Box 186
Port Neches, Texas 77651
Mr. Larry Saurage
City Manager -City of Solir Lake
.655 W. Barkley St
Sour Lake, Texas 77659
Michael Kunst
City Manager -City of Vidor
1395 N. Main St.
Vidor, Texas 77662-3726
3
Mr. Guy N. Goodson
City Attorney -City of Vidor
P.O. Box 4915 ·
Beaumont, Texas 77704-4915
Mr, Joe Alfor.d
City Attorney -City of West Orange
105 Market
Orange, Texas 77630
Mayor Roy McDonald
Mayor -City of West Orange
2 700 Western Avenue
West Orange, TX 77630
Michael S. Stelly
City of West Orange, Texas
2700 Austin Avenue
West Orange, TX. 77630
Re: Entergy Texas, Inc. 's Proposed Transaction with ITC Holdings
Dear Cities:
As discussed at the meeting of Cities Steering Committee, Entergy and ITC have re-filed
their Application for Approval of Change of Ownership and Control of Transmission Business
with the PUC. The case was re-filed so that Entergy and ITC could include the commitments
made to Cities in the evidentiary record of the case. Cities have already passed resolutions
supporting a finding of public interest for the Commission's consideration of the proposed
transfer of Entergy's transmission business to ITC Holdings conditioned upon the Commission's
approval of the terms and guarantees made to Cities.
Attached is an Ordinance authorizing the City's participation in the above case to monitor
the proceeding and ensure that the Commitments made to Cities are implemented.
If there are any questions or concerns, please do not hesitate to call.
]);:~~/~
Daniel J. Lawton
4
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 by vote ·of the City Council of the City of
______ _,Texas, this _ day of 2013.
THE CITY OF TEXAS ------~
ATTEST:
City Secretary
APPROVED AS .TO FORM:
2
-
WORKSHOP OF THE CITY COUNCIL OF THE
-CITY O F-NEDERLAND-
8:15 a.m. November 18, 2013
1. MEETING
The workshop was-called to-order at 3 :00 p.m. by Mayor R. A. Nugent at the Nederland
City Hall, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
2. iPAD TRAINING SESSION
Chris Duque, Joni Underwood, William Spell, and Gay Ferguson worked one-on-one
with Mayor and Councilmembers on their iPads.
3 . ADJOURN
There being no fu rther discussion the Workshop was adjourned at 3:40 p.m. by Mayor
R. A. Nugent.
City of Nederland, Texas
ATTEST:
CITY OF NEDERLAND
COUNCIL WORK SESSION ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor ·/
Talmadge Austin Council Member -Ward I \./
Billy Neal Council Member -Ward II /
Don Albanese Council Member-Ward·lll v
Bert Rogers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney
Cheryl Dowden Director of·f inance
Darrell Bush Police Chief
Gary Collins Fire Chief
Steve Hamilton Director of Public Works
George Wheeler Building Official
Victoria Klehn librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary v
Angela Fanette Parks Director
November 18, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF-NEDERLAND-
4:30 p.m. November 18, 2013
1. MEETING
The meeting was called to order at 4 :30 p.m . by Mayor Nugent at the Nederland City
Office Building, 207 N. 12t11 Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge -of allegiance were lead by Councilmember Rogers.
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 Austin and seconded by Councilmember Rogers
to approve the Consent Agenda Items 3 a-d as presented. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -November 11, 2013 regular meeting
b. October 2013 Departmental Reports
c. Tax Assessor Collection Report -October 2013
d. Payments:
• Schaumburg & Polk, Inc. -$2,070.00, 2013 Concrete Street Rehabilitation
project
• Schaumburg & Polk, Inc. -$537 .50, 2013 Asphalt Street Rehabilitation
project
• Bruce's General Construction -$227,788.94, Homer E. Nagel Public Safety
Complex project
• LaBiche Architectural Group, Inc. -$7,346.35, Homer E. Nagel Public Safety
Complex project
4. REGULAR AGENDA
a. Stephanie Baker with Intrepid USA Home Health Services accepted a proclamation.
Mayor Nugent thanked the organization for their service to our community .
A motion was made by Councilmember Neal and seconded by Councilmember
Rogers to approve a Proclamation in regards to National Home Care Month.
MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
Minutes Continued, November 18, 2013
c. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to approve Resolution No. 2013-12, casting votes for Charles Lankford as a
candidate for the Board of Directors of the Jefferson County Appraisal District.
MOTION CARRIED.
Ayes: Mayor Nugent, Council members Austin, Neal, Albanese, and Rogers.
Noes: None.
d. Chris Duque, City Manager, reported the City received notice from Lower Neches
Valley Authority of an increase in the 2014 raw water rates. The 2013 rate was
$0.22 for contracted volumes. The $0.02 increase represents a 9.1 % rate
increase. The terms ·of the Raw Water Supply Contract dearly. state the LNVA
Board may adjust the rates with sufficient notiCe.
e. Bids:
i. A motion was made by Councilmember Rogers and seconded by Councilmember
Austin to approve Resolution No. 2013-13, in regards to the Hurricane Ike Round
2.2 Sewer Collecti·on Line Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ii. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to award a bid to Allco in the amount of $1,366,650.00 for the Hurricane Ike
Round 2.2 Sewer Collection Line Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
b. Dohn LaBiche, LaBiche Architectural Group, reported the Homer E. Nagel Public
Safety Complex project is approximately 2 -3 weeks behind schedule with
completion anticipated mid May unless the time can be made up. Progress is ahead
of schedule in the police and EOC portion of the building. Door frames will be
delivered on November 22nd and gypsum board will be going up next week.
December gth the structural steel for the fire station is being delivered. A new work
schedule will be presented at the December 15th council meeting.
5. EXECUTIVE SESSION
Mayor Nugent announced the Executive Session was not necessary.
6. COMMUNICATION
City Manager's Report:
a. Construction Project Update
• Concrete street project is near completion. The root barrier is the last item
to be.done ..
• Asphalt street project will begin November 25th beginning on 18th Street
while school it out on holiday.
• Traffic signal rehabilitation project is underway. Foundations have been
poured and poles have been ordered with estimated delivery in January.
• Sewer system generator project has begun. The allocated time is 270 to
complete.
Minutes Continued, November 18, 2013
b. City offices will be closed Thursday, November 28th and Friday, November 29th
in observance of Thanksgiving holiday.
c. The Gth Annual Christmas on the Avenue will be Saturday, December 7th with
the tree lighting ceremony at 6:00 p.m. at Tex Ritter Park.
7. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 5:03 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
No~s:-None.
City of Nederland, Texas
ATIEST:
GaYtzr/dl.~{1~
City of Nederland, Texas
NAME
R. A. Nugent
Talmadge Austin
Billy Neal
"Don Albanese
Bert Rogers
Chris Duque
Gay Ferguson
Jesse Branick
Cheryl Dowden
Darrell Bush
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
TITLE ·PRESENT
Mayor v
Council Member -Ward I v
Council Member -Ward II v
Council M·ember -Ward·lll v
Council Member -Ward IV v
City Manager v
City Clerk v
City Attorney v .
'Director of·Pinance v
Police Chief v
-G ·" '' I f.1~n ... J --,. ..... 1-f' Y ru Fire Chief v
f v Steve Hamilton Director of Public Works
George Wheeler Building Official v
Victoria Klehn Ubrarlan
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
Angela Fanette Parks Director v
November 18, 2013
Date
ABSENT
J. SHANE HOWARD
TAX ASSESSOR-COLLECTOR
STA TE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUTY
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-:Collector for CITY O.F NEDERLAND, affirm, under oath,
that this amount $34,789.74, represents all taxes collected for CITY OF NEDERLAND during the
month of0ctober2013.
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE• P.O. BOX 2112 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589
CITY OF NEDERLAND
RESOLUTION 2013-12
WHEREAS, Senate Bill No. 621, Acts of the 66t11 Texas Legislature, Chapter 841,
1979, provides for establishing an Appraisal District which would concern the City of
Neder1and;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 wi~hin the Appraisal District; and
WHEREAS, the City of Neder1and 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, 2013.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Neder1and, ii'!_ compliance with Senate Bill No. 621, hereby casts its entire vote as follows:
Miriam Johnson
Eugene Landry
Char1es Lankford
Dr. Louis Reed
SO RESOLVED, this the 1at11 day of November, 2013.
ATTEST:
1ta~4flol~ da}IFergu~.City c1eri<
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jesse
City of
--
RESOLUTION NO. 2013-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, DESIGNATING T. JOHNSON INDUSTRIES,
. INC. AS "NONRESPONSIVE" IN REGARDS TO THE BID FOR THE
"HURRICANE IKE ROUND 2.2 -SEWER COLLECTION UN£
REHABILITATION" PROJECT
WHEREAS, in accordance with state law and the City's Purchasins Policy, the City
of Nederland solicited bids·for the "Hurricane Ike Round 2.2 -Sewer Collection Line
Rehabilitation" project; and
WHEREAS, t he bid specifications noted the project would be awarded to the
"lowest responsive responsible bidder;" and
WHEREAS, following the bid opening, the two lowest bidders were asked to
provide additional information, which both bidders submitted after receiving sufficient
time to prepare their responses; following the submission, responses were reviewed by
the project ensineer-Schaumburs & Polk, _In~.; and
WHEREAS, in accordance with Texas Local ~overm:nent Code § 271.027(b), the
City through the project engineer advised T. Johnson Industries, Inc. that the bid would
be addre.ssed at the November 18, 2013 City Council meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS, that:
SECTION 1. The City of Nederland finds T. Johnson Industries, lnc.'s submitted
response did not sufficiently address the provided questions,
which does not permit the project engineer-ta properly evaluate T.
Johnson Industries, lnc.'s bid.
SECTION 2. T. Johnson lnduStries, lnc.'s bid is considered "nonresponsive" and
shall not be considered by the City in determining the "lowest
responsive responsible bidder."
PASSED AND APPROVED BY THE CITY COUNCIL of the City of Nederland, Texas,
this 18™ day of NOVEMBER 2013.
ATTEST:
APPROVED AS TO FORM AND LEGALITY:
REGULAR MEETING OF THE CITY COUNCIL OF THE
·CITY OF-NEDERLAND.
4:30 p.m. December 9, 2013
1. MEETING
T'he meeting was called to ·order at '4:30 p.m. by ·Mayor ·Nugent at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge«of allegiance were lead by Councilmember Rogers.
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 council member so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-c as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Minutes -November 18, 2013 regular meeting and November 18, 2013 Workshop
b. Requests:
• Consider action regarding a request from Adaptive Sports for Kids to utilize
the Nederland Recreation Center gymnasium for Tae Kwon Do sessions.
• Consider action regarding a request from Ryan 'Slott to utilize the Nederland
Recreation Center gymnasium for Nederland Little Dribblers.
c. Payments:
• November 2013 monthly bills
• Walker Partners -$900.00, 2010 Water System Improvements project
• LaBiche Architectural Group -$599.61, Nederland City Hall project
·• A & A Electric Company of Beaumont, Inc. -$15,340.50, Hurricane Ike
Round 2.2 Wastewater Treatment System generators project
4. REGULAR AGENDA
b. Chris Duque, City Manager, reported Entergy has awarded a $750.00 grant to the
City for Christmas on the Avenue programming, and Chevron has donated
$5,000.00 for Christmas ·on the Avenue and Christmas ·decorations.
A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Austin to approve a grant from Entergy in the amount of $750.00 and a grant from
Chevron in the amount of $5,000.00. MOTION CARRIED.
Minutes Continued, December 9, 2013
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
c. A motion was made by Councllmember Rogers and seconded by Mayor Pro Tern
Albanese to authorize the acceptance of a Texas Department of Agriculture
Community Development Block Grant program grant. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
d.. A motion was made. by. Mayor. P-r.o. Tern. Albanese. and seconded. by Council member.
Neal to table a contract with ES&S for the rental of election equipment for the May
2014 General/Special Election. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
-e. A motion was made by. ·Councilmember Neal and seconded by. Mayor P-ro Tern
Albanese to approve an Amendment to the Collective Bargaining Agreement with
the Nederland Police Officers' Association as long as this does not set a precedence
and any future change would be on merit. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
a. Kacie Brown, Parks and Recreation Department, recognized DeMolay, a youth
service organization, for their work at Tex Ritter Park in preparation of Christmas
on the Avenue. Volunteer certificates were awarded to all individuals who
participated and a plaque was given to the organization.
Chandler Davis thanked the. ·council for letting them ·do this ·service project. ·~e.
said it was a pleasure for them to do the work and said anytime there was
something else to do, they will gladly do it.
S. EXECUTIVE SESSION
Mayor Nugent announced the. Executive Session was not necessary..
6. COMMUNICATION
City Manager's Report:
a. Second December meeting -December 15th
b. Chamber ·of ·commerce Coffee at Commissioner Weaver's Office in the
morning at 8:00 a.m.
c. Tomorrow the Chamber will hold their Annual Lighted Christmas Parade.
d. Mr. Duque thanked the Parks Department for the work on the Christmas on
the Avenue event. The weather was very cold and they did a good job at
making changes at the last minute.
Minutes Continued, December 9, 2013
7. ADJOURN
There being no further business a motion was made by Mayor Nugent and seconded
by Councilmember Rogers to adjourn the meeting at 4:56 p.m. MOTION CARRIED.
Ayes: lviayor Nugent, Councilmem'bers Austin, Neal, A"lbanese, and Rogers.
Noes: None.
ATTEST:
G~y F;rguJ1, City de
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor ·v
Talmadge Austin Council Member -Ward I v
Billy Neal Council Member -Ward II v
· Don Albanese Council Member -Ward lll v
Bert Roaers Council Member -Ward IV v
Chris Duque City Manager v
Gay Ferguson City Clerk v
Jesse Branick City Attorney /
· Cheryl Dowden Dl rector of-'Flnance v
Darrell Bush Police Chief \/
Garv Collins Fire Chief /
Steve Hamilton Director of Public Works \/
George Wheeler Building Official '\;/
· Victoria Klehn librarian
Holly Guidry Human Resources Director v
Joni Underwood Executive Secretary v
~;-.M .. 'la ranene KctAt/. ffiIY Parks Director v
R.~
Gay Ferguson, City Clerk
December 9, 2013
Date
REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY-OF-NEDERLAND.
4:30 p.m. December 16, 2013
1. MEETING
The meeting was -called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12tti Street, Nederland, Texas. See attached for quorum.
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were lead· by Councilmember Rogers.
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 council member so requests, in which event the item
will be removed from the Consent Agenda and ·considered separately.
A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve the Consent Agenda Items 3 a-d as presented. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
a. Minutes -December 9, 2013 regular meeting
b. November 2013 Departmental Reports
c. Tax Assessor Collection Report -November 2013
d. Payments:
• Schaumburg & Polk, Inc. -$3,027 .00, 2013 Asphalt Street Rehabilitation
project
• Schaumburg & Polk, Inc. -$115.00, 2013 Concrete Street Rehabilitation
project
• A & A Electric Company of Beaumont -$19,338.30, Hurricane Ike Round
2.2 Wastewater System Generators project
• Traf-Tex, Inc. -$142,267 .SO, Hurricane Ike Round 2.2 Traffic Signal Lights
project
• LaBiche Architectural Group, Inc. -$1,780.80, Homer E. Nagel Public Safety
Complex project
• Bruce's General Construction -$138,017. 70, Homer E. Nagel Public Safety
Complex project
• Bruce's General Construction -$16,210.60, 2013 Concrete Street
Rehabilitation project
Minutes Continued, December 16, 2013
4 . REGULAR AGENDA
a. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to postpone action on the 2014 Hotel Occupancy Tax budget of the
Nederland Chamber of Commerce in accordance with Texas Tax Code Section
251.101.c. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent:. Councilmember: Austin.
b. Dohn LaBiche, LaBiche Architectural Group, Inc., reported on the progress of
construction on the Homer E. Nagel Public Safety Complex. He said t he schedule
has been moved back approximately 2 months from the previous schedule given
by Bruce's General Construction. The contractor was asked to look at each line
item and give an accurate schedule reflecting the problems they have -encountered
to date with the project. He invited councilmembers to go on a tour of the facility
on Thursday.
c. Bids:
i. A motion was made by Councilmember Rogers and seconded by
Councilmember Neal to. approve the purchase. of an audio visual system. for the
Homer E. Nagel Public Safety Com plex via HGAC, Buy Board, or other state-
approved contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
ii. A motion was made by Councilmember Neal and seconded by
Mayor Pro Tern Albanese to approve the purchase of an access control system for
the Homer E. Nagel Public Safety Complex via HGAC, Buy Board, or other state-
approved contract. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
d. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to approve a Road Access Agreement with Sunoco Partners Marketing &
Terminals LP. MOTION CARRIED.
Ayes: Mayor Nugent, ·Councilmembers Neal, Albanese, and Rogers.
Noes: None.
Absent: Councilmember Austin.
5. UNFINISHED BUSINESS
a. A motion was made by Councilmember Rogers and seconded by Mayor Pro Tern
Albanese to remove from the table and take no action -contract with ES&S for the
rental of election equipment for the May 2014 General/Special Election, which was
tabled on December 9, 2013. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Neal, Albanese, and Rogers.
Minutes Continued, December 16, 2013
Noes: None.
Absent: Councilmember Austin.
6. COMMUNICATION
City Manager's 'Report:
a. Langham Singers visit to City Hall -December 19tti @ 9:00 a.m.
b. City office closures for Christmas and New Year's Day holidays
7. ADJOURN
There. being. no further: business a. motion. was made. by. Ma.yor Nugent and. seconded
by Mayor Pro Tern Albanese to adjourn the meeting at 5:03 p.m. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Rogers.
Noes: None.
ATTEST:
NAME
R. A. Nugent
Talmadge Austin
Billy Neal
Don Albanese
Bert Rogers
Chris Duque
Gay Ferguson
Jesse Branick
Cheryl Dowden
Darrell Bush
Gary Collins
Steve Hamilton
George Wheeler
Victoria Klehn
Holly Guidry
Joni Underwood
Angela Fanette
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
TITLE PRESENT
Mayor v
Council Member -Ward I
Council Member -Ward II v
Council Member -Ward lll v
Council Member -Ward IV v
City Manager v
City Clerk v
City Attorney v
Director of f inance VJ
Police Chief /
Fire Chief v
Director of Public Works v
Building Official /
Librarian
Human Resources Director v
Executive Secretary v:
Parks Director v
R.~.
December 16. 2013
Date
ABSENT
I
J. SHANE HOWARD
TAX ASSESSOR-COLLECTOR
STATE OF TEXAS
COUNTY OF JEFFERSON
SUSIE JAMES
CHIEF DEPUIT
I, J. Shane Howard, the Tax Assessor-Collector of Jefferson County, Texas and also, by
contract or statute, the Tax Assessor-Collector for CITY OF NEDERLAND, affirm, under oath,
that this amount $420,946.93, represents al1 taxes collected for CITY OF NEDERLAND during
the month of November 2013.
J. Shane Howard
JEFFERSON COUNTY COURTHOUSE• P.O. BOX 2112 •BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 •FAX: (409)835-8589