Minutes October 12, 2015REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m.
1. MEETING
October 12, 2015
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 led by Chris Duque, City Manager.
3. CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Neal and seconded by Mayor Pro Tern Albanese
to approve the Consent Agenda Items 3 a -c as presented with the exception of the
payment to L & L General Contractors which was removed from consent agenda and
placed on the regular agenda. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
a. Minutes — September 28, 2015 regular meeting
b. Consider action authorizing the closure of Boston Avenue from 15th Street to the
Entergy ROW on Saturday, October 31st for the Nederland Chamber of Commerce's
Trunk -R -Treat event.
c, Payments:
• Action Civil Engineers - $2,850.00, Nederland Avenue Study
• L & L General Contractors - $32,815.90, Nederland Veterans Park project
• Carroll & Blackman, Inc. - $1,010.42, Phase II MS4 Permit Implementation
Services
4. REGULAR AGENDA
Councilmember Neal stated he was in favor of approving payment for L & L General
Contractors but had a question regarding how the project was funded. He noticed
the account this project was being paid from was a Parks Special Fund.
Chris Duque, City Manager, reported this fund was created to fund park projects.
It was designed for capital project but special programs such as 4th of July and
Christmas on the Avenue are also being funded through this special fund.
Minutes Continued, October 12, 2015
Councilmember Neal requested information on how much it costs to operate the
Parks Department, and also how much the Parks Department has brought in for
the last 2 - 3 years.
A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve a payment in the amount of $32,815.90 to L & L General
Contractors for work performed on the Nederland Veterans' Park project. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
a. Eddie LaBure from the Knights of Columbus was in attendance to accept a
proclamation. He thanked the City Council and said it was a privilege and honor
to serve the community.
A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve a proclamation in regards to the Knights of Columbus Family
Week. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
b. A motion was made by Councilmember Belaire and seconded by Councilmember
Austin to approve an amendment to the interlocal agreement regarding the South
East Texas Regional Radio System. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
c. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve Resolution No. 2015-10, 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 Belaire.
Noes: None.
d. A motion was made
Neal to approve Ordi
factor rate increase
MOTION CARRIED.
Ayes: Mayor Nugent
Noes: None.
by Councilmember Austin and seconded by Councilmember
nance No. 2015-20, denying the distribution cost recovery
requested by Entergy Texas, Inc. on September 4, 2015.
Councilmembers Austin, Neal, Albanese, and Belaire.
e. A motion was made by Mayor Pro Tern Albanese and seconded by Councilmember
Neal to award a bid for windstorm insurance. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
f. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to approve Ordinance No. 2015-21, amending the Fiscal Year 2015-2016
budget. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
Minutes Continued, October 12, 2015
S. COMMUNICATION
City Manager's Report:
a. Miscellaneous
• Chamber of Commerce Coffee will be Oct. 13'^ at Gulf Credit Union
• Employee service luncheon will be Oct. 13 m beginning at 11:30a.rn.
• Chris Duque thanked the Parks Department, Police Department and Fire
Department for a successful National Night Out held last week.
• Mr. Duque also thanked the Parks Department for their work at the
Monsters in the Park event.
Mayor Pro Tern Albanese said "before the meeting is closed, I don't want to violate the
Open Meetings Act and have Jesse fuss at me again, but I would like an explanation
either from Chris (the City Manager) ormaybe the Fire Chief onwhy vvewere the only
Fina Department in the Sabine Neches Area not to receive a grant this last couple of
weeks."
Mayor Nugent non -verbally adjourned the meeting at5;O3p'mm.
4ug or
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City of Nede nd, Texas
h__ I M1 /u0AJ
G6Y F�ergun, City Cl
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME
j TITLE
( PRESENT
I
R. A. Nugent
Mayor
V
Talmadge Austin
Council Member- Ward I
V
V
Billy Neal
Council Member -Ward II
V
Don Albanese
Council Member- Ward III
Craig Belaire
Council Member -Ward IV
Chris Duque
City Manager
V
Gay Ferguson
I City Clerk
Jesse Branick
City Attorney
Cheryl Dowden
Director of Finance
V
Darrell Bush
Police Chief
Gary Collins
Fire Chief
V
`
Steve Hamilton
Director of Public Works
v
(
George Wheeler
Building Official
Y
Victoria Klehn
Librarian
v
Holly Guidry
Human Resources Director
Y
Joni Underwood
Executive Secretary
Angela Fanette
Parks Director
I V
October 12, 2015
Date
A
ABSENT
ORDINANCE NO. 2015-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEDERLAND, TEXAS AMENDING THE FISCAL YEAR 2015-
2016 BUDGET IN ACCORDANCE WITH THE BUDGET AND
THE CHARTER OF THE CITY OF NEDERLAND.
WHEREAS, the City Council previously approved Ordinance No. 2015-16, which adopted
the Fiscal Year 2015-2016 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 2015-2016 City budget states "That any unencumbered funds remaining
on hand at the end of the fiscal year ending September 30, 2016 shah be construed with and
classified with Miscellaneous revenue anticipated during the fiscal year beginning October 1,
2015 and ending September 30, 2016, 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 2015-2016 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 12th DAY OF OCTOBER, 2015.
�49A4a)
R. A. Nugent, Mr
City of Nederlan ?Texas
ATTEST:
-' rI �� -
Gay I` rg� City Clerk
APPROVED AS TO FORM AND LEGALITY:
Jse Br i,City Attorney
CITY OF NEDERLAND
BUDGET AMENDMENT REQUEST
FISCAL YEAR: 2015-2016
DATE: October 12, 2015
DEPARTMENT: Various
FUND: General (01), Solid Waste (52)
Water & Sewer (50)
0
JUSTIFICATION
In the General Fund, allocated funds for the SW/City Shop supervisor are removed due to retirement of employee and
re -organization. In the SW Fund, additional funds are allocated for a new Solid Waste/City Shop Foreman position, and the transfer
out to the GF is reduced in the same amount with the elimination of the supervisor position. The GF transfer -in reduced to reflect
the reduced SW transfer. In the W/S Fund, unspent FYI 4-15 funds are allocated from fund balance for the S. 5th St. Water Tower
project, as well as transferring allocated contractual services funds for the project engineering to the capital line -item.
Dept. Head Signature: Date:
Finance Director:
Date Approved:
Page of
Date:
Date Posted:
AMOUNT
CURRENT
INCREASE
PROPOSED
ACCOUNT NO.
ACCOUNT TITLE
BUDGET
(DECREASE)
BUDGET
01-0000-4910
Transfer In
470,000
(66,758)
403,242
01-3200-6110
Salaries & Wages
117,241
(65,873)
51,368
01-3200-6113
Longevity
2,160
(1,104)
1,056
01-3200-6121
Group Insurance
18,130
(9,089)
9,041
01-3200-6124
TMRS
6,916
(3,630),
3,286
01-3200-6126
Social Security
9,440
(5,000)
4,440
01-3200-6128
Worker's Compensation
3,270
(1,724)
1,546
52-3300-6110
Salaries & Wages
324,628
44,372
369,000
52-3300-6113
Longevity
3,936
240
4,176
52-3300-6121
Group Insurance
65,734
14,734
80,468
52-3300-6124
TMRS
19,369
2,613
21,982
52-3300-6126
Social Security
26,437
3,566
30,003
52-3300-6128
Worker's Compensation
8,601
1,233
9,834
52-9000-6902
Transfer to General Fund
155,000
(66,758)
88,242
50-0000-6393
Contractual Services
38,500
(38,500)
-
50-6000-6740
Plant Equipment
300,000
338,500
638,500
TOTAL
1,099,362
213,580
1,312,942
JUSTIFICATION
In the General Fund, allocated funds for the SW/City Shop supervisor are removed due to retirement of employee and
re -organization. In the SW Fund, additional funds are allocated for a new Solid Waste/City Shop Foreman position, and the transfer
out to the GF is reduced in the same amount with the elimination of the supervisor position. The GF transfer -in reduced to reflect
the reduced SW transfer. In the W/S Fund, unspent FYI 4-15 funds are allocated from fund balance for the S. 5th St. Water Tower
project, as well as transferring allocated contractual services funds for the project engineering to the capital line -item.
Dept. Head Signature: Date:
Finance Director:
Date Approved:
Page of
Date:
Date Posted:
CITY OF NEDERLAND
RESOLUTION NO. 2015-10
STATE OF TEXAS
COUNTY OF JEFFERSON
WHEREAS, the City Council of the City of Nederland, Texas at its regularly
scheduled meeting of October 12, 2015, 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, 2017.
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, 2015, in
accordance with said Statute.
PASSED AND APPROVED AND ADOPTED this 12th day of October 2015.
Don Albanese, Mayor Pro Tern
Billy Nea[46ouncil Membeand 11
ATTEST:
6ay rerihson, City Wrk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
J se B '
ni City Attorney
ity o ederiand, Texas
9-1---"
R. A. Nugent, #yor
City of Nedery(nd, Texas
Talmadge Ausfi),
Council Member Ward I
Craig Beeltjrouncil Member Ward IV
ORDINANCE NO. 2015-20
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS (-CITY-) DENYING THE
DISTRIBUTION COST RECOVERY FACTOR RATE
INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED
ON SEPTEMBER 4, 2015; SETTING JUST AND
REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR
SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING
THAT THE MEETING COMPLIES WITH THE OPEN
MEETINGS ACT; MAKING OTHER FINDINGS
WHEREAS, on or about September 4, 2015 Entergy Texas, Inc. ("Entergy")
filed an Application for Authority to Amend the existing Distribution Cost Recovery
Factor with the City to increase electric rates by implementing new riders pursuant to
Public Utility Regulatory Act ("PURA") Section 36.210;
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by
Entergy Texas, Inc. would Increase customer rates In the Entergy Service Area by $6.5
million per year above the current Distribution Cost Recovery Factor surcharge;
WHEREAS, the jurisdictional deadline for the City to act in this rate matter Is
November 3, 2015;
WHEREAS, the expert utility rate consultants retained to review the
Company's Distribution Cost Recovery Factor rates on behalf of the City have made
preliminary findings that Entergy has incorrectly calculated the proposed Distribution
Cost Recovery Factor and overstated the claimed need for the rate increase requested.
The consultants' analyses support reductions to the Entergy request;
WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request is not supported;
WHEREAS, Entergy has failed to properly support and justify the rate class
increase amounts for Entergy's proposed class allocation of certain distribution costs;
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost
Recovery Factor rate increase request is November 3, 2015;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS, THAT:
Section 1. The statement and findings set out In the preamble to this
Ordinance are hereby In all things approved and adopted.
Section 2. The City of Nederland hereby denies the Entergy Distribution
Cost Recovery Factor rate increase.
Section 3. Entergy's Distribution Cost Recovery Factor rate increase
application on file with the City is denied in total.
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 become effective from and after its passage.
PASSED AND APPROVED this 12TH day of OCTOBER, 2015.
R. X. Nugent, Mgr
City of Nederland, Texas
ATTEST:
ft 0-1
Gy Fergus , City Clerk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jes
s, City Attorney
Ci Texas
THE LAWTON LAW FIRM, P.C.
twoo Hill Country Blvd., Suite R-976 • Austin, Texas 78738.511/sSt1-0o19 • Fax: 855/498-7978
September 29, 2015
Via E -Mail
Mr. Richard Ferguson Mr. Tyrone Cooper
City Attorney — City of Anahuac City Attorney — City of Beaumont
City Attorney — City of Sour Lake P.O. Box 3827
13201 Northwest Freeway, Suite 300 Beaumont, Texas 77704
Houston, Texas 77040
Mr. Kyle Hayes
City Manager — City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704
Ms. Kelly McDonald
City Manager — City of Cleveland
907 E. Houston
Cleveland, Texas 77327
Ms. Angela Smith
City Secretary — City of Cleveland
907 E. Houston
Cleveland, Texas 77327
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
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
Wonham 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
City Attorney — City of Splendora
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 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
Ms. Yushan Chang
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
1212 Ave. M
Huntsville, Texas 77340
Mr. Larry L. Foerster
City Attorney — City of Montgomery
Darden, Fowler and Creighton, LLP
414 West Phillips, Suite 100
Conroe, Texas 77301
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
Mr. Rodney Price
City Attorney — City of Pine Forest
City Attorney — City of Rose City
P.O. Box 310
Vidor, Texas 77670
2
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 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 3`d 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 777044915
Mr. Joe Alford
City Attorney — City of West Orange
105 Market
Orange, Texas 77630
Mr. Robbie Hood
City Administrator — City of Pinehurst
2497 Martin Luther King Jr. Drive
Orange, Texas 77630
Mr. Brian McDougal
City 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
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
Michael Kunst
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
3
Re: Rate Ordinance and Recommendation as to Entergy Texas, Inc.'s Application for
Approval of a Distribution Cost Recovery Factor
Dear Cities:
This letter is in regard to Entergy Texas Inc.'s ("Entergy" or "Company") application for
approval of a Distribution Cost Recovery Factor ("DCRF"), which has been filed with each of
the Cities in Entergy's service area. Entergy filed the DCRF application with Cities on
September 4, 2015. Cities have 60 days to pass a Rate Ordinance accepting, modifying, or
rejecting a DCRF Application. Cities' deadline to Dass a Rate Ordinance is November 3.
2015.
Concurrent with its DCRF application in the Cities, Entergy has filed the same
application with the Public Utility Commission of Texas ("Commission'l for customers located
outside the Cities. Entergy requests implementation of a rider that would collect approximately
$10.1 million ($6.5 mm current request plus $3.6 mm currently authorized) in additional annual
revenue to cover increased distribution expenses. Residential customers would be charged
approximately $6.4 million or 64% of the requested increase, which amounts to approximately
$1.09 per month for an average residential customer using 1000 kWh per month.
The preliminary analysis of our rate consultant, ReSolved Energy Consulting ("REC"),
indicates that the Company has not proved up its request. We are waiting on the Company to
provide additional data so RFC's analyses and investigations may be completed. As such we
recommend that the Cities deny Entergy's application in total.
Again, the Cities' jurisdictional deadline to make a decision on Entergy's request is
November 3, 2015. We have attached a recommended Rate Ordinance denying Entergy's
application for a DCRF rate change. Once Cities deny the Entergy rate increase request these
Rate Ordinances will be appealed to the Commission, where these matters will be litigated and
ultimately decided.
If there are any questions or concerns, please do not hesitate to call.
Sincerely,
Daniel J. Lawton
F1
W