October 8, 2018 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 P.m_ October 8, 2018
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_
The following statement was posted:
PURS IJANT TO SECTION 30_07, PENAL CODE (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY_"
2_ INVOCATION AMC) PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were led by Gay Ferguson, City Clerk.
3_ CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed from the Consent Agenda and considered separately_
A motion was made by Mayor Pro Tem Albanese and seconded by Councilmember
Austin to approve the Consent Agenda Items a-d as presented. MOTION CARRIED_
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and 13elaire.
Noes: None.
at. Minutes - September 10, 2018 regular meeting and September 24, 2018 regular
meeting
b_ Consider action authorizing the closure of Franklin Avenue between 12th and 13th
Streets on Thursday, October 25th for the Langham Elementary School Fall
Carnival-
c_ Consider action authorizing the closure of Boston Avenue between 15th and 17th
Streets on Wednesday, October 31�t for the Nederland Chamber of Commerce's
Tru n k-R-Treat.
d_ Consider action declaring surplus a 2001 Ford F150 truck from the Nederland Parks
and Recreation 'Department.
Minutes Continued, October 8, 2018
4. REGULAR AGENDA
a. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve a proclamation in regards to the Knights of Columbus' Family
Week. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
Dan Harrington, Knights of Columbus, thanked the city for the proclamation and
said Nederland is a wonderful place to live and be a part of.
b. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to accept a donation from the Nederland Heritage Festival Foundation to the
Nederland Police, Fire, and Parks & Recreation Departments. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to approve a request from Little Dribblers to utilize the Nederland
Recreation Center for practices and the waiver of associated fees. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
d. The caption of Ordinance 2018-20 was read by Chris Duque, City Manager.
A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Albanese to approve Ordinance No. 2018-20, granting a franchise agreement with
Texas Gas Service. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
e. Bids/Purchases:
i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Albanese to award a bid to USI in the amount of $245,962.50 for a two-year rate
guarantee and a $25,000 deductible. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
ii. A motion was made by Mayor Pro Tern Albanese and seconded by
Councilmember Neal to authorize the purchase of a trash truck for the Solid Waste
Department via HGAC, BuyBoard or other state-approved contract, in the amount
of $207,444.00. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
iii. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to authorize the purchase of one-ton crew cab truck with knapheide
service body via HGAC, BuyBoard or other state-approve contract, for the Water &
Sewer Distribution Department in the amount of$40,965.95. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
Minutes Continued, October 8, 2018
f. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to approve an agreement with UA Engineering, Inc. for engineering services,
not to exceed $16,750.00, related to the Phase II MS4 Permit Implementation
Services, Permit Year 5, FY 2018-2019. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
g. A motion was made by Councilmember Neal and seconded by Mayor Pro Tern
Albanese to approve a work authorization for UA Engineering, Inc., in an amount
not to exceed $4,500.00, for the development and submittal of the permit renewal
documents for the Wastewater Treatment Plant. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
h. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Albanese to approve a work authorization for UA Engineering, Inc., in an amount
not to exceed $6,000.00, for Wastewater Treatment Facility SWP3 Implementation
Services. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmember Austin, Neal, Albanese, and Belaire.
Noes: None.
i. Chris Duque, City Manager, said the city was approached by Bobby Nguyen
requesting water service at his property along Patillo Road. The property would be
developed into a RV park with approximately 69 stall lots. The property is located
outside the city limits, in the city's extraterritorial jurisdiction, and between the
City of Beaumont's and the City of Nederland's CCN. Currently the city provides
water service to a number of property owners along Patillo Road, including a home
and a church, via a 6-inch waterline. The development engineer had water supply
testing done and confirms the existing 6" waterline has sufficient capacity for the
proposed development. This is only a discussion item and no action will be taken.
Bobby Nguyen and George Newsome with SouTex was in attendance for any
questions.
Mr. Duque said he received a phone call and email from Terry Metreyeon stating
his concern that so many units in this proposed RV Park would make a negative
impact on the water pressure since this line was not installed to support multiple
unit installations.
5. COMMUNICATION
City Manager's Report:
a. Rob Woods gave a brief update on the Nederland Avenue project
b. Monsters in the Park - Saturday, October 20th
c. Veterans Day Ceremonies - November 9th and 11th
d. National Night Out - November 11th
e. Miscellaneous
-Chamber of Commerce Coffee Oct. 9th at the Public Safety Building
-EDC is hosting a fall market from 10:00 a.m.to 3:00 p.m. on Oct. 20th
Minutes Continued, October 8, 2018
6. ADJOURN
There being no further business a motion was made by Mayor Nugent and
seconded by Councilmember Neal to adjourn the meeting at 5:16 p.m. MOTION
CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, Neal, Albanese, and Belaire.
Noes: None.
\\V1 I I11II/,,,/,,,
=\�':• ���' „`y..= R. A. Nugent ayor
O: �� ; City of Ned and, Texas
A ftE, T�COU\
GPDAa-/
ay Fergus , City Clerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R. A. Nugent Mayor V/
g V
Talmadge Austin Council Member—Ward I 1 /
Billy Neal Council Member—Ward II
Don Albanese Council Member—Ward III v
Craig Belaire Council Member—Ward IV
Chris Duque City Manager
Gay Ferguson City Clerk \/
Jesse Branick City Attorney V
Cheryl Dowden Director of Finance v
Gary Porter Police Chief V
Terry Morton Acting Fire Chief V
Robert Woods 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
l' %. , y,
R.A. ugent,' I.r
IA
. i .�,.I //iii , AV
ay Fergu...n, City Cler 4/
October 8, 2018
Date
1
ORDINANCE NO. 2018-20
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, GRANTING TO ONE
GAS, INC., ACTING BY AND THROUGH TEXAS GAS
SERVICE COMPANY DIVISION, AND ITS
SUCCESSORS AND ASSIGNS, FOR A PERIOD OF
TWENTY-FIVE (25) YEARS FROM APPROVAL AND
ACCEPTANCE OF THIS ORDINANCE, A NON-
EXCLUSIVE FRANCHISE AND RIGHT TO ENTER THE
PUBLIC WAYS TO INSTALL, OPERATE, AND
MAINTAIN A DISTRIBUTION SYSTEM WITHIN,
ALONG, ACROSS OVER AND UNDER THE PUBLIC
WAYS OF THE CITY OF NEDERLAND, TEXAS FOR
THE TRANSPORTATION, DISTRIBUTION AND/OR
SALE OF GAS TO CUSTOMERS AND THE PUBLIC
GENERALLY IN THE CITY; DEFINING THE WORDS
AND PHRASES THEREIN; PROVIDING FOR
ASSIGNMENT, SALE OR LEASE OF THE FRANCHISE;
PROVIDING THAT THE CITY MAY ENACT AN
ORDINANCE CHARGING PERSONS TRANSPORTING
GAS THROUGH GRANTEE'S DISTRIBUTION
SYSTEM A FEE ON THE CALCULATED VALUE OF
SUCH TRANSPORTED GAS; PROVIDING FOR USE
AND REPAIR OF THE PUBLIC WAYS; PROVIDING
FOR REGULATION OF SERVICE; ESTABLISHING
DEPTH OF PIPELINES; ESTABLISHING RIGHTS
AND DUTIES IN THE MOVEMENT AND ALTERATION
OF PIPELINES; PROVIDING FOR
INDEMNIFICATION OF THE CITY OF NEDERLAND;
PROVIDING FOR GRANTEE'S RULES AND
REGULATIONS; PROVIDING FOR INSPECTION OF
GRANTEE'S RECORDS; REQUIRING GRANTEE TO
PAY A FRANCHISE FEE; PROVIDING FOR
CONDITIONS OF THE GRANCHISE; PROVIDING
FOR CONSTRUCTION OF THIS ORDINANCE UPON
THE INVALIDITY OF ANY PART THEREOF;
PROVIDING FOR ACCEPTANCE OF THIS
FRANCHISE BY GRANTEE AND BOTH AN EFFECTIVE
AND AN OPERATIVE DATE THEREOF; DIRECTING
PUBLICATION REQUIREMENTS OF THE FRANCHISE
ORDINANCE CAPTION; REPEALING ALL OTHER
ORDINANCES DIRECTLY IN CONFLICT HEREWITH;
AND PROVIDING FOR SEVERABILITY
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS, HEREBY
ORDAINS THAT:
SECTION 1. DEFINITIONS
As used in this Ordinance,the following words and phrases shall have the following meanings:
A. "City"means the City of Nederland,in Jefferson County,Texas,a municipal corporation,.
•
B. "City Clerk"means the City Clerk of the City or other such officer of the City designated to serve as
the filing officer for official documents and records of the City.
C. "City Council"means the City Council of the City as the governing body of the City.
D. "City Engineer" means the City Engineer of the City or such other officer of the City designated to
approve the engineering plans and designs for construction within Public Ways.
E. "City Manager"means the City Manager of the City or such other chief administrative officer of the
City designated to hear appeals from the decisions of other City officers.
F. "Company"shall mean ONE Gas, Inc.,an Oklahoma corporation acting by and though its Texas Gas
Service Company division,and its successors and assigns.
G. "Customer" means any individual person,corporation,company, partnership,firm,unincorporated
association, trust, municipality, or public or private entity located within the municipal corporate
limits of the City and serviced by the Company through any use of the Public Ways.
H. "Franchise Fee"or"Franchise Fees"shall mean the sum of fees to be paid to the City by Company
under Section 12 of this Ordinance.
I. "Gas Sales"means the sale of natural gas to Company's customers located within the corporate limits
of the City by use of the System.
J. "Gas Transportation"means the transportation of Transport Gas for redelivery to customers with re-
delivery points located within the corporate limits of the City.
K. "Gross Receipts from Gas Sales"shall constitute and include Company's total receipts from the sale,
distribution,or transportation of gas to Company's customers. Company's Gross Receipts from Gas
Sales subject to the Franchise Fee shall specifically exclude,without limitation:
(1) receipts from gas sales or services to customers located at delivery points outside the corporate
limits of the City;
(2) receipts from gas consumed or transported by Company for its own use;
(3) bad debt or uncollected accounts;
(4) receipts collected for gas utility taxes;
(5) receipts for any taxes,assessments,charges or fees of any kind charged by a governmental entity
and collected by Grantee from the customer by a pass through charge on the gas bill,except for
Franchise Fees and gross receipt taxes;
(6) receipts for construction advances or contributions in aid of construction;
(7) receipts for maintenance of appliances,machinery or equipment;
(8) receipts for compensation for damage to Company's property;
(9) receipts from sales of materials,appliances or equipment;and
(10)receipts from any non-regulated utility or non-regulated services or products.
L. "Gross Receipts from Gas Transportation"shall constitute and include Company's total receipts from
its transportation of Transport Gas,consisting of receipts from cost of service. The Company's Gross
Receipts from Gas Transportation subject to the Franchise Fee shall specifically exclude, without
limitation:
(1) receipts from gas transportation services to customers located at delivery points outside the
corporate limits of the City;
(2) receipts from gas transported by Company for its own use;
(3) bad debt or uncollected accounts;
(4) receipts collected for gas utility taxes;
(5) receipts for any taxes,assessments,charges or fees of any kind charged by a governmental entity
and collected by Company from the customer by a pass through charge on the gas bill,except for
Franchise Fees and gross receipt taxes;
(6) receipts from construction advances or contributions in aid of construction;
(7) receipts for maintenance of appliances,machinery or equipment;
(8) receipts for compensation for damage to Company's property;and
(9) receipts from any non-regulated utility or non-regulated services or products.
M. "Permit"means the authorization to Company:
(1) for the opening of the streets,avenues,alleys,other public places or Public Ways shown on maps
or plans submitted by Company to the City Engineer, showing the streets, avenues, alleys and
other public places and the locations thereon wherein Company proposes to construct new mains
and pipes;
(2) for the new construction or laying of the new mains and pipes by Company as shown on plans;
and
(3) to perform all work on existing Company facilities or the System within the Public Ways or other
City rights-of-way.
N. "Public Ways" means the present and future streets,avenues, boulevards, parkways, lanes,alleys,
bridges, sidewalks, parks, easements, highways, and any other public place within the municipal
corporate limits of the City,whether dedicated or not.
0. "System"means Company's system of mains,pipelines,conduits,valves,feeders,regulator stations,
laterals, service lines, measuring devices, and all other necessary plants, attachments, land,
structures, facilities, and appurtenances for the purpose of selling, storing, supplying, conveying,
transmitting, distributing, and/or transporting natural gas and any gas, including the equivalent
substitutes,for all other lawful purposed in,through,upon,under,and along the present and future
streets,avenues,alleys,bridges,sidewalks,parks,easements,highways,and any other public place
within the municipal corporate limits of the City.
P. "Transport Gas"means gas owned or controlled by a user or its designee(i.e.,gas that is purchased
or otherwise acquired by a user from someone other than Company)and delivered by such user or its
designee to Company at a point on Company's System, such point of delivery to be defined by
Company,and carried,delivered,or transported through Company's System at a point of redelivery
within the municipal corporate limits of the City by Company to the user for a fee.
Q. "Utility Regulated Service Charges"shall consist of charges for services(but not for natural gas sales
or transportation services)that:
(1) Company provides to its customers located within the corporate limits of the City;and
(2) which are or may,from time to time, become subject to the rate regulation of the applicable
regulatory authority.
Such Utility Regulated Service Charges shall include receipts of Company from its customers in the
City for connections,disconnections,and meter tests. Such Utility Regulated Service Charges shall
not include receipts by Company from its customers in the City, if applicable,for appliance sales,
appliance light-ups,maintenance of customer equipment or facilities and any other receipts that are
not legally subject to the rate regulation of the applicable regulatory authority. Gas delivered within
the City for or on behalf of an affiliate of the Company,and gas purchased from an affiliate of the
Company and delivered within the City,shall be deemed to be sold and delivered by the Company,
and the value paid for such gas by the customer shall be subject to the franchise fee.
SECTION 2. GRANT OF FRANCHISE
A. Subject to the terms and conditions of this Franchise Ordinance,the City hereby grants to ONE Gas,
Inc.,an Oklahoma corporation acting by and through its Texas Gas Service Company division for the
term of twenty-five(25)years from the passage and approval of this Ordinance and the filing of a
written acceptance by the Company,the right to enter upon the Public Ways to have,own,acquire,
install,construct, reconstruct,operate,maintain,use,and extend a System along,across,over and
under the Public Ways for the privilege of transporting,distributing and/or selling gas to Customers
and the public generally within the municipal corporate limits of the City,and including any territory
that the City may hereafter annex,acquire,purchase;and to distribute,sell,store,supply,transport,
carry and/or convey natural gas and any gas through Company's System in the City to other cities,
towns,communities,and areas outside the City and to inhabitants thereof,for the full term of this
Franchise Ordinance.
B. The Ordinance shall have the effect of and shall be a contract between the City and Company and
shall be the measure of the rights and liabilities of the City,as well as the Company.
C. The Franchise granted by this Ordinance shall in no way affect or impair the present or future rights,
obligations, or remedies of the City or Company under the Texas Gas Utility Regulatory Act, as
amended.
SECTION 3. FRANCHISE ASSIGNMENT,SALE OR LEASE
The Company is expressly given the power and privilege to sell,transfer or assign the franchise granted
hereby,or any part of this franchise,to any person,entity or corporation.
SECTION 4. USE AND REPAIR OF THE PUBLIC WAYS
A. The Company's System shall be erected, placed, and laid or otherwise installed, operated, and
maintained in such a manner as will,consistent with reasonable necessity,least interfere with other
public uses of the Public Ways. This Ordinance shall constitute the Permit to perform all work on
existing Grantee facilities or the System within the Public Ways or rights of way.
B. When in streets and avenues, mainlines and service pipes shall be laid parallel with the curb line
thereof,or in such locations as shall be most practical,provided,however,than in no case shall any
main be laid less than 18 inches below the established street grade,or if not within a street right-of-
way at least 18 inches below the grade of the nearest street,without permission of the City Engineer.
All work shall comply with applicable City Ordinances, including, but not limited to,Ordinance No.
2002-01 (Chapter 90, Nederland Code of Ordinances). Subject to the terms and provisions of
applicable ordinances of the City pertaining to the management of rights-of-way,the Company is
hereby authorized,licenses and empowered to do any and all things necessary and proper to be done
and performed in executing the powers and utilizing the privileges granted by this Franchise
Ordinance,provided the same do not conflict with existing infrastructure in the Public Ways.
C. Except in the case of emergency,within the City's full purpose jurisdiction,when the Company desires
to lay any new mains hereunder,and before commencing its new construction work on mains,it shall
submit to the City Engineer,or other proper authority,a map or plan showing the streets,avenues,
alleys,and other public places and the locations thereon wherein it proposes to construct such new
mains and pipes. The City Engineer,or other proper authority,shall by written notice,either issue or
deny the Permit to the Company. Approval by the City Engineer or other proper authority, shall
constitute the Permit to the Company for the opening of the streets,avenues,alleys and other public
places shown on the map or plan,and for the new construction or laying of the new mains and pipes
by the Company as shown on the plan. If the City Engineer,or other property authority,does not
respond within ten(10)calendar days,the Permit shall be deemed approved.
In the event that the Permit is denied,the City Engineer,or other proper authority,shall advise the
Company of the reasons for the denial and all necessary steps to secure approval of the Permit. The
Company shall have the right to immediately appeal the non-issuance of the Permit to the City
Manager,and if the Permit is not approved within ten(10)calendar days by the City Manager,the
Company may appeal to the City Council and be heard at the next scheduled public meeting held in
compliance with applicable law following the date of the Permit denial. If the City Council fails to act
on the appeal,the appeal will be deemed denied unless agreed otherwise in writing by the Company
and City. Appeal of any decision made by the City Council shall be made to the District Court of
Jefferson County,Texas,and an appeal from any decision of the District Court shall be as in all other
civil actions.
This Subsection 4(8)shall apply to all other facilities and equipment of the Company to be constructed
or installed on public property within the City's full purpose jurisdiction.
D. It shall not be necessary for the Company to secure a Permit for the laying of service pipes from the
mainline pipes of the Company to its customers.
E. After any excavation or disturbance,the Company shall,with due diligence and dispatch, place the
Public Way in a condition in compliance with the City's reasonable standards and specifications.
F. The Company shall not install any pipe,line,or facility within any park or recreational land,and shall
not install any above ground facility on City property,without specific written permission by the City
Engineer, or other proper authority, which shall be granted within 10 calendar days. Should
permission be denied,the City Engineer or other proper authority,shall advise the Company of the
reasons for the denial. The Company may appeal to the City Council and be heard at the next
scheduled public meeting held in compliance with applicable law following the date of denial. The
Company may petition the City Council for permission to cross park lands during a public meeting held
in compliance with applicable law, and any such permission shall be granted by the City Council
through ordinance. Appeal of any decision made by the City Council shall be made to the District
Court of Jefferson County,Texas,and an appeal from any decision of the District Court shall be as in
all other civil actions.
SECTION 5. REGULATION OF SERVICE
The System of the Company shall at all times be installed,operated,and maintained in accordance with
accepted good practice and in such condition as will enable the Company to furnish adequate and
continuous service as required by the orders,rules,and regulations of the Railroad Commission of Texas
or other regulatory authority having jurisdiction. The requirements set forth in this Section shall not
relieve the Company of any other obligations set forth herein.
SECTION 6. DEPTH OF PIPELINES
After the operative date of this Franchise,the Company's main or lateral lines installed or replaced in
Public Ways shall be installed or replaced at depths which comply with all applicable state and federal
rules and regulations establishing minimum safety standards for the design,construction,maintenance
and operations of pipelines. Depth shall be measured from the lower of existing grade or proposed future
grade as set forth on plans or other specifications existing at the time such lines are installed or replaced.
SECTION 7. DUTY TO MOVE OR ALTER LINES
A. The City reserves the right to lay or permit to be laid cables,electric conduits,water,sewer,gas or
other pipelines and to do or permit to be done any underground work deemed necessary and proper
by the City,along,across,over or under the Public Ways. In permitting such work to be done,the City
shall be liable to the Company for any damages to the Company's pipelines and facilities caused by
the City or its agents'or contractors'negligence.
B. When the Company is required by the City to remove or relocate its mains,laterals,and other facilities
to accommodate construction of streets and alleys by the City, and the Company is eligible under
federal,state,county,local or other programs for reimbursement of costs and expenses incurred by
the Company as a result of such removal or relocation,and such reimbursement is required to be
handled through the City,then the Company's costs and expenses shall be included in any application
by the Company for reimbursement. The Company will provide the City its appropriate cost and
expense documentation prior to the filing of the application.
C. When the Company is required to remove or relocate its mains, laterals or other facilities to
accommodate construction of streets or alleys by the City without reimbursement,the Company shall
have the right to seek a surcharge to recover relocation costs pursuant to Section 104.112 of the Texas
Utilities Code or any other applicable law or regulations.
D. If the City shall require the Company to adapt or conform its System or in any way to alter,relocate
or change its property to enable any other perform,firm,corporation or entity(whether public or
private),other than the City,to use the Public Ways,the Company shall be reimbursed by the person,
firm,corporation,or entity desiring or occasioning such change for any and all loss,cost,or expense
occasioned thereby.
SECTION 8. INDEMNIFICATION
The Company shall indemnify,save and hold the City harmless from and against any and all claims for
damages for which the City shall or might become liable to the extent caused by any negligent act or
omission of the Company, its agents or contractors in the construction and operation of the System;
provided, however, than in the event of such claim or claims being prosecuted against the City, the
Company shall have the right to defend against the same,and to settle or discharge same in such manner
as it may see fit,and the City shall give prompt written notice to the Company of the presentation or
prosecution of such claims. The indemnity provided for in this paragraph shall not apply to any claim or
liability resulting from the acts,omissions,or negligence of the City,its employees,agents or contractors.
The Company's undertaking shall be subject to its ability, by use of due diligence and normal business
methods,to obtain and place in service the necessary materials and facilities. Moreover,the Company
shall be excused from failure or delay in performing such obligations if and to the extent occasioned by
an act of nature or"act of God,"fire,explosion,flood,act of a public enemy,contagion,or contamination
hazardous to human life or health,legal restraints,labor difficulties,material shortages,interruption or
deficiency of gas supply not attributable to default of the Company or,without limitation,any other cause
or combination of causes not reasonably within the Company's ability to anticipate or control The
Company shall notify the City promptly and in no case less than thirty(30)days of its intent to utilize this
provision of this Ordinance.
However,the above paragraph only applies if not caused or contributed in any way by the Company.
SECTION 9. GRANTEE'S RULES AND REGULATIONS
The Company shall have the right to make and enforce such reasonable rules and regulations as it may
deem necessary for the extension of its facilities, the sale of its gas and the conduct of its business,
provided that such rules and regulations shall neither be in conflict with the laws of the State of Texas,
with the orders,rules,or regulations of the Railroad Commission of Texas or other regulatory authority
having jurisdiction,nor with the ordinances and regulations of the City insofar as they are consistent with
the jurisdiction of the Railroad Commission of Texas or such other regulatory authority. The Company
shall supply natural gas and provide regulated services at the rates and under the terms and conditions
specified by such rules,its tariffs filed with the City,and as provided herein.
SECTION 10. INSPECTION OF RECORDS
The Company shall permit the City or its agents to inspect, during regular business hours,the books,
papers,and records kept by the Company in the ordinary course of business and pertaining to the natural
gas business carried on by it in the City, such as plats, maps and atlases identifying the Company's'
pipelines in the City,and the books and records necessary to verify the franchise fee payment provided
for in Section 12 hereof. It is understood and agreed that such representative may be an independent
agent, assigned by the City to conduct the inspection of the Company's books and records for the
reconciliation of franchise fee payments to determine the accuracy thereof. Notwithstanding the
obligation herein and subject to the requirements of the Texas Public Information Act,the Company shall
have the right to the reasonable protection of proprietary information and to provide redacted
documents or require the City or its agents to enter into such agreements pertaining to confidentiality as
may reasonably protect the proprietary information of the Company but which do not unreasonably
frustrate the purposes of this Section.
SECTION 11. ANNEXATIONS
The City shall promptly notify the Company in writing of the annexation of any new territory into its city
limits by providing the legal description, maps,and any other relevant information such as the GPS/GIS
information that highlight the newly annexed territory. Upon receipt of written notice of annexation from
the City,the Company shall ninety(90) days to begin collecting and paying the franchise fee for any
revenues received from the Company's customers residing in the newly annexed territories.The City shall
assist the Company in determining and classifying exemptions from franchise fee for the Company's
customers,including providing or requiring written confirmation of the customer's claimed exemption.
SECTION 12. CONSIDERATION FOR FRANCHISE:FRANCHISE FEE
A. As full consideration for the rights and privileges conferred by this Ordinance,the Company agrees to
the pay the City as follows:
(1) The Company shall collect the Franchise Fee from its customers and shall pay the City a Franchise
Fee the sum of which is equal to Four Percent(4%)of the Gross Receipts received by the Company,
per billing period,from the transportation,distribution,and sale of natural gas for consumption
within the municipal corporate limits of the City. The Franchise Fee shall include only Gross
Receipts from Gas Sales to customers located in the City;Gross Receipts from Transportation to
Transport Gas Customers with re-delivery points located in the City; plus,Gross Receipts from
Utility Regulated Service Charges. All sums due from the Company shall be in lieu of all other
franchise fees,licenses,or occupational taxes,which may be levied or attempted to be levied on
the Company by the City.
(2) The Company shall pay such Franchise Fee collected from its customers to the City under the
terms of this Franchise Ordinance,based upon meters read on or after the effective date of this
Ordinance. During the term of this Franchise Ordinance, the Company shall collect from its
customers and pay the City in January and July for the preceding six months. The Company shall
include with the Franchise Fee payment a statement showing its collections of Gross Receipts
from Gas Sales and Gas Transportation in the City,and Utility Regulated Service Charges in the
City, including the calculation of the Franchise Fee for the subject time period. Collection and
payment of Franchise Fee shall be final as to both parties unless questioned by written notice
provided by one party to the other within three years after payment thereof has been made.
It is expressly agreed that the Franchise Fee payments shall be in lieu of payments for the right to use the
Public Ways or other public rights-of-way of the City,including expressly the charge permitted to be levied
by the Texas Tax Code Section 182.021-182.026 and 182.081-182.082,or any successor statute permitting
such charge,however designated. The Franchise Fee shall be in lieu of and accepted payment of all of the
Company's obligations to pay all other franchise fees, licenses,easements or occupation taxes, levies,
exactions, rentals, street-cut fees, inspection fees, right-of-way inspection fees, permit fees, franchise
fees,easement taxes,or charges of any kind whatsoever which may be levied or attempted to be levied
in general by the City for the use of the City's Public Ways and other rights-of-way,with the sole exception
of sales taxes, ad valorem taxes, and special assessments which are made without reference to or
dependence upon the Company's franchise or occupancy of the streets and public right of way,e.g.special
assessment paving liens.
The rights,privileges,and franchises granted by this Ordinance are not to be considered exclusive,and
the City hereby expressly reserves the right to grant,at any time as it may see fit,live privileges,rights,
and franchises to any other person or corporation for the purpose of furnishing gas in the City. In the
event any entity(other than the Company)providing gas sales or gas transportation service to customers
within the City is subject to a lesser franchise fee than is required to be collected and paid by the Company
in this Ordinance,then with respect to such gas sales or transportation service to those customers,the
Company's Franchise Fee obligation on sales or transportation service to those customers will be reduced
to a rate equal to the franchise fee rate required to be paid by such other entity.
In the event,the Company shall hereafter accept any franchise from a city in the Texas Gulf Coast Service
Area which provides for the payment to such city a fee in excess of the franchise fee provided herein,the
•
Company shall inform the City's governing body and pursuant to such process as it deems appropriate,
the Company may be directed by the City's governing body to pay City such increase rate applicable to
the class of service affected.
It is expressly agreed by the City and the Company that the Franchise Fees defined in this Franchise
Ordinance are reasonable,and are reasonable and necessary operating expense of the Company and shall
be fully recovered by the Company by collection from its customers in the City, whether asserted
retroactively or prospectively and pursuant to existing or future laws or regulations,by revising its rate
schedules,assessing an additional charge to the monthly bills of its customers within the City,adding an
additional charge to the Company's purchase gas adjustment clause for the City or in any legal manner
determined in the Company's discretion.
Unless expressly set forth herein,or otherwise provided by law,by accepting this Ordinance,the Company
does not agree to be responsible for the payment of franchise fees other than as expressly set forth herein,
or for the payment of franchise fees owed to the City by any other entity,corporation,or firm.
It is specifically provided however that this subsection shall not release,waive,or apply to the imposition
of any fine,penalty or charge arising and imposed as a result of the violation of a rule, regulations,or
ordinance.
SECTION 13. CONDITIONS OF FRANCHISE
This contract,franchise,grant and privilege is granted and accepted under and subject to all applicable
laws and under and subject to all of the orders, rules, and regulations now or hereafter adopted by
governmental bodies now or hereafter having jurisdiction.
To the extent that all or any other existing ordinance shall conflict with any provision of this Ordinance,
this Ordinance shall prevail upon passage,adopting and acceptance of this Ordinance. To the extent that
all or any part of this Franchise Ordinance shall conflict with any provision of Ordinance No. 2002-01,
Chapter 90 of the Nederland Code of Ordinances,the latter ordinance shall prevail. For clarification,
nevertheless,any indemnity by the Company provided for in accordance with Ordinance No.2002-04 shall
not apply to any liability resulting from the negligence or intentional acts or omissions of the City, its
employees,agents or contractors.
SECTION 14. DISPUTE RESOLUTION
Resolution of disputes arising under this Franchise Ordinance between the City and the Company,or any
of its affiliates may fist be attempted by submitting the dispute to the City Manager. The dispute shall be
appealed to the City Council to be heard at the next scheduled public meeting held in compliance with
applicable law. If the City Council fails to act on the appeal during the public meeting,the appeal will be
deemed denied unless agreed otherwise in writing by the Company and the City. Appeal of any decision
made by the City Council shall be made to the District Court of Jefferson County,Texas,and an appeal
from any decision of the District Court shall be as in all other civil actions.
SECTION 15. INVALIDITY OF ORDINANCE
If any clause, sentence, or section of this Ordinance shall be held to be invalid, it shall not affect the
remaining portions of this Ordinance,which shall remain valid and effective as if such invalid provision did
not exist, although the parties shall be entitled to a judicial interpretation or construction of this
Ordinance to address the validation of such provision by minimal amendment thereof. Further,should
any governmental body now or hereafter having jurisdiction determine that the Company shall nto be
permitted to collect in whole or in part the compensation due the City by others for Transport Gas as set
forth in Paragraph(2)of Subsection A of Section 12 of this Ordinance,the Company shall thereafter have
no obligation to make such payment to the City and Paragraph(2)of Subsection A of Section 12 shall be
of no force and effect with regard to the sale of Transport Gas.
SECTION 16. EFFECTIVE DATE AND TERM
This Ordinance shall be presented at two(2)regular meeting of the City Council and not be finally acted
upon until thirty(30)days after the first presentation. The Ordinance shall take effect and be in full force
from and after its final passage and approval by the City Council and the acceptance hereof in writing by
the Company as herein provided. This Franchise Ordinance shall continue and remain in full force and
effect for a period of twenty-five(25)years from the effective date.
SECTION 17. ACCEPTANCE BY GRANTEE
The Company shall have sixty(60)days from the execution of this Ordinance within which to file in the
office of the City Clerk its consent to and written acceptance of provisions and conditions of this Franchise
Ordinance.
SECTION 18. PUBLICATION
Within ten (10)days following each of the two presentations of this Ordinance,a descriptive caption of
the Ordinance stating in summary the purpose of the Ordinance shall be published one time in the official
newspaper of the City,and the expense of such publication shall be borne by the prospective franchise
holder,the Company.
SECTION 19. REPEALER
Each and every other ordinance or part thereof which is directly in conflict with any provision herein as to
the grant of a franchise for natural gas services and the regulation thereof is hereby repealed.
SECTION 19. SEVERABILITY
The provisions of this Ordinance are severable,and if any part or provision hereof shall be adjudged invalid
by any court of competent jurisdiction,such adjudication shall not affect or impair any of the remaining
parts or provisions hereof.
PASSED AND READ by the City Council of the City of Nederla d,Texas,for the first reading
of this ordinance,at a regular meeting this,the (31-k day of 2018.
PASSED AND READ by the City Council of the City of Nederland, Texas, for the second
reading of this ordinance,at a regular meeting this,the 25-11 day of ®C-i'$�ier ,2018.
\\001111311//////N
APPROVED:
dr
rpt ��`�. ' _1-1; .A.Nuge Mayor
City of Ne erland,Texas
O`;
sat II Ala
C.ay Fergu/•n,City Clerk /
City of Nederland
APPROVED AS TO FORM AND LEGALITY:
Je• City Attorney
C • ederland,Texas
The above and forgoing Franchise Ordinance and the grants,franchise,powers,rights and privileges
thereto were accepted by the Company this ,2018.
ONE GAS,INC.
By:
Caron Lawhorn
Senior Vice President, Commercial
Distribution