May 13, 2019 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 P_m_ May 13, 2019
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Nugent at the Nederland City
Office Building, 207 N. 12.^ Street, Nederland, Texas. See attached for quorum.
The following statement was posted:
"Fo IJRSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGIJN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2_ INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was led by Father Oaks of St. Charles Catholic Church, and the pledge
of allegiance were led by Chris C>uque, 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 Austin and seconded by Mayor Pro Tem Neal
to approve the Consent Agenda Items a-b as presented. MOTION CARRIED_
Ayes: Mayor Nugent, Councilmembers Austin, and Neal.
Noes: None.
Absent: Councilmember Belaire_
a. Minutes - April 15, 2019 regular meeting
b. Tax Assessor Collection Report - March 2019
4_ REGULAR AGENDA
a. 2019 City Election:
i. A motion was made by Mayor Pro Tem Neal and seconded by Councilmember
Austin to approve Resolution No. 2019-04, canvassing and declaring the results of
the general election held on May 4, 2019 for the purpose of electing a Mayor and
Nederland Councilmembers for Ward II and Ward IV. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, and Neal_
Noes: None.
Absent: Councilmember Bela ire.
ii. A motion was made by Councilmember Austin and seconded by Mayor Pro Tem
Neal to approve Ordinance No. 2019-14, declaring the results of an election held
Minutes Continued, May 13, 2019
on May 4, 2019 for the purpose of filling a vacancy of Ward III of the Nederland
City Council. MOTION CARRIED.
Ayes: Mayor Nugent, Councilmembers Austin, and Neal.
Noes: None.
Absent: Councilmember Belaire.
iii. Judge Brad Burnett administered the Oath and Office to Don Albanese, Mayor;
Billy Neal, Councilmember Ward II; Emmett Hollier, Councilmember Ward III; and
Sylvia Root, Councilmember Ward IV.
iv. A motion was made by Councilmember Austin and seconded by Councilmember
Hollier to nominate Mayor Pro Tern Neal as Mayor Pro Tempore in accordance with
Section 3.06 of the City Charter. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
v. A motion was made by Councilmember Austin and seconded by Councilmember
Hollier to approve Ordinance No. 2019-15, canvassing and declaring the results of
the special election held on May 4, 2019 for the purpose of amending the City
Charter of the City of Nederland. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmember Austin, Neal, Hollier, and Root.
Noes: None.
vi. A motion was made by Councilmember Austin and seconded by Councilmember
Root to approve Ordinance No. 2019-16, declaring the results for and against the
proposition regarding reauthorization of the street maintenance sales tax included
on the May 4, 2019 election. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
b. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember Root
to approve a collection bargaining agreement with the Nederland Police Officers'
Association. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
c. A motion was made by Councilmember Austin and seconded by Councilmember
Hollier to approve Resolution No. 2019-05, authorizing the city manager when a
firefighter is on extended unpaid leave or another necessary circumstance, to over-
hire entry-level civil service fire positions. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
d. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember Root
to amend the City of Nederland Wage & Classification Plan to create a police cadet
position. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
e. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Hollier to accept a donation from Friends of the Library in the amount of$6,000.00
for the summer reading program. MOTION CARRIED.
Minutes Continued, May 13, 2019
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
f. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Austin to accept Quarterly Investment Reports from the Finance Department.
MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
g. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve Resolution No. 2019-06, approving a review and amendment of
the City's Investment Policy. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
h. A motion was made by Councilmember Austin and seconded by Councilmember
Root to approve a request from Meadow Gardens Estates for a leak adjustment on
their utility bill. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
i. A motion was made by Councilmember Austin and seconded by Councilmember
Hollier to approve Resolution No. 2019-07, ratifying the action of the Nederland
Economic Development Corporation Board of Directors related to the incentive
offered to Buckstin Brewing Company. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
j. A motion was made by Mayor Pro Tern Neal and seconded by Councilmember
Hollier to approve Resolution No. 2019-08, ratifying the action of the Nederland
Economic Development Corporation Board of Directors related to the incentive
offered to Brick Oven Pizza Company of Nederland. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
k. A motion was made by Councilmember Hollier and seconded by Mayor Pro Tern
Neal to approve a License to Encroach between the City of Nederland and Dana
Burnett Taylor regarding property located at 2604 Windmill Lane (Lot No. 20 of
Holland Homes, an addition to the City of Nederland, Jefferson County, Texas,
according to the map or plat of record in Volume 16, Page 364, Map Records in the
office of the County Clerk of said County and State). MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
I. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Neal to approve Ordinance No. 2019-17, suspending the effective date for an
additional 90 days of Texas Gas Service Company's proposed Hurricane Harvey
Surcharge in the Gulf Coast Service Area. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
m. Chris Duque, City Manager, reported on the 2019 Main Sewer Line Rehabilitation
project. In late 2016, the City engaged Schaumburg &Polk, Inc. to assess concrete
Minutes Continued, May 13, 2019
sewer lines 15' or great in diameter; the study included television inspection of
approximately 29, 400 linear feet of concrete lines and flow monitoring. Six priority
sewer areas were identified following the study, which the City Council accepted.
He stated after City Council authorized bids at their February 25, 2019 meeting,
city staff prepared a bid in which 3 bidders responded.
Robert Woods, Director of Public Works, said the bid opening was held on May 1,
2019 and 3 bids were received. The engineer has been reviewing the proposals
and will be sending a recommendation to be on the next City Council meeting.
5. COMMUNICATION
• Next City Council meeting will be Monday, May 20th
• NISD Honor Graduate Celebration will be Tuesday, May 21st at Max Bowl
• Memorial Day Service will be Friday, May 24th at Veterans Park
• Solid Waste is on overtime picking up debris from weather events last week.
• Mr. Duque thanked the Public Works Department, Police Department and Fire
Department for their work and response after the storms
• Sunoco donated $25,000 for the fireworks celebration July 4th
• The City received an award letter from TDEM/FEMA for generators at 4 city lift
stations.
• Final payments have been received on Hurricane Harvey and Hurricane Ike
projects.
6. ADJOURN
There being no further business a motion was made by Mayor Albanese and
seconded by Mayor Pro Tem Neal to adjourn the meeting at 5:27 p.m. MOTION
CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
V:
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City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PR7IT ABSENT
R.A. Nugent Mayor
Talmadge Austin Council Member—Ward I
Billy Neal Council Member—Ward II
Vacant Council Member—Ward III
Craig Belaire Council Member—Ward IV
Chris Duque City Manager V
Gay Ferguson City Clerk
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
GaryPorter Police Chief
Terry Morton Fire Chief
Robert Woods Director of Public Works
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Angela Fanette Parks Director
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R.A. Nuge , May-, err
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May 13, 2019
Date
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
Don Albanese Mayor v
Talmadge Austin Council Member—Ward I
Billy Neal Council Member—Ward II v
Emmett Hollier Council Member—Ward III
Sylvia Root Council Member—Ward IV
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
Gary Porter Police Chief
Terry Morton Fire Chief V
Robert Woods Director of Public Works
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Angela Fanette Parks Director
014
Don Albaanese, Mayor
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May 13, 2019
Date
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ALLISON NATHAN GETZ iii �,`; ,A '� TERRY WUENSCHEL
TAX ASSESSOR-COLLECTOR `yl* ! CHIEF DEPUTY
TEXAS
STATE OF TEXAS
COUNTY OF JEFFERSON
I, Allison Nathan Getz, P.C.C., 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 $144,371.04, represents all taxes collected for CITY OF NEDERLAND
during the month of March 2019.
Allison Nathan Getz, P.C.C.
JEFFERSON COUNTY COURTHOUSE•P.O.BOX 2112 •BEAUMONT,TEXAS 77704-2112
PHONE: (409)835-8516 • FAX: (409)835-8589
CITY OF NEDERLAND
RESOLUTION 2019-04
A RESOLUTION BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS CANVASSING
THE ELECTION RETURNS AND DECLARING THE
RESULTS OF AN ELECTION HELD ON
SATURDAY, MAY 4, 2019, FOR THE PURPOSE
OF ELECTING A MAYOR AND COUNCIL
MEMBERS FOR WARD II AND WARD IV
WHEREAS, on January 28, 2019, the City Council of the City of Nederland, Texas, adopted
Resolution No.2019-02,calling an election to be held on May 4,2019 for the purpose of electing members
to serve on the City Council of the City of Nederland,Texas,for Mayor,Ward II and Ward IV;and
WHEREAS,the Councilmembers for Mayor,Ward II, and Ward IV are to be elected for a term of
three(3)years;and
WHEREAS,said election was duly held at the time and at the places specified in the Resolution
after due notice as required by law had been given:
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 first Saturday in May,2019,for
the municipal election scheduled for May 4,2019,was duly called and notice was given in accordance with
the law and in accordance with the Resolution calling for said election.
THAT the election was held in accordance with applicable state statutes and ordinances of the City
of Nederland,Texas,and the following votes were cast:
Mayor
Early Voting Election Day Voting Provisional Ballot Total
Jeff Ortiz 802 230 0 1032
Don Albanese 1459 297 1 1757
Councilmember Ward II
Early Voting Election Day Voting Provisional Ballot Total
Billy J.Neal 2009 455 1 2465
Councilmember Ward IV
Early Voting Election Day Voting Provisional Ballot Total
Sylvia Begnaud Root 1217 274 1 1492
David Guillot 787 181 0 968
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``;Q••....• D,APPROVED AND ADOPTED this 13th day of May,2019.
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City of Nederland,Texas
APPROVED AS TO FORM AND LEGALITY:
Jesse Br. Attorney
Cityof ---rland Texas
CITY OF NEDERLAND
ORDINANCE NO. 2019-14
AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF
NEDERLAND, TEXAS CANVASSING
THE ELECTION RETURNS AND
DECLARING THE RESULTS OF AN
ELECTION HELD ON SATURDAY, MAY
4, 2019, FOR THE PURPOSE OF
FILLING A VACANCY OF WARD III
WHEREAS, on January 28, 2019, the City Council of the City of
Nederland, Texas, adopted Ordinance No. 2019-06 calling an election to be
held on May 4, 2019 for the purpose of filling a vacancy on the City Council of
the City of Nederland, Texas, for Ward III; and
WHEREAS, the Councilmembers are to be elected for a term of three
(3) years; and
WHEREAS, said election was duly held at the time and at the places
specified in the Resolution after due notice as required by law had been given:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND,TEXAS THAT:
Section 1. All independent candidates at the election to be held on the
first Saturday in May, 2019, for the municipal election scheduled for May 4,
2019, was duly called and notice was given in accordance with the law and in
accordance with the Resolution calling for said election.
Section 2. The election was held in accordance with applicable state
statutes and ordinances of the City of Nederland, Texas, and the following
votes were cast:
Councilmember Ward III
Early Voting Election Day Voting Provisional Ballot Total
Emmett Hollier 1913 441 1 2355
`‘‘<,N ,APPROVED AND ADOPTED this 13th day of May, 2019.
U'4 \j�'� R. A. Nugent,117ayor
,0�;•:-�- City of Nederland, Texas
M\s
GkC14, (a(:4 /
ay Fergiton, City lerk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jesse : . . , ity Attorney
City o: -►-rland, Texas
CITY OF NEDERLAND
ORDINANCE NO. 2019-15
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS,
CANVASSING THE RESULTS OF A SPECIAL
ELECTION HELD MAY 4, 2019, FOR THE
PURPOSE OF AMENDING TO THE CITY
CHARTER OF THE CITY OF NEDERLAND
WHEREAS,on January 28th,the City Council of the City of Nederland,Texas approved
Ordinance No. 2019-05, ordering a special election to be held on Saturday, May 4, 2019 for
the purpose of amending the City Charter; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS:
THAT the City Council officially finds and determines that the following votes were
cast at said election for Charter Amendments a-c:
Charter Amendment a
Early Election Provisional
Voting Day Voting Ballot Total
In Favor 2081 464 1 2546
Against 190 65 255
Charter Amendment b
Early Election Provisional
Voting Day Voting Ballot Total
In Favor 2045 451 1 2497
Against 198 66 264
Charter Amendment c
Early Election Provisional
Voting Day Voting Ballot Total
In Favor 1858 397 1 2256
Against 344 108 452
PROPOSED AMENDMENT NO. a
That Section 3.02 of Article III of the City Charter shall be amended so that such section shall
read as follows:
"The Mayor and each of the Councilmembers shall be a citizen of the United States of America
and a qualified voter of the State of Texas; shall have resided for at least one year preceding the
next election within the corporate limits of the City of Nederland. Other than the Mayor, each
Councilmember shall have resided for at least one year preceding the next election within the
boundaries of the ward they shall represent. The Mayor and each of the Councilmembers shall not
be indebted to the City at the time he takes office nor during the term of office. A member of the
Council ceasing to possess any of these qualifications,or convicted of a felony while in office or
who shall be absent from three consecutive regularly scheduled Council meetings without a valid
excuse,shall immediately forfeit his office;and the City Council at its next regular meeting shall
declare a vacancy to exist and shall fill said vacancy as set forth in Section 3.07 of this charter.
Other than the Mayor,not more than one(1)Councilmember shall be a resident of the same ward."
PROPOSED AMENDMENT NO. b
That Section 3.07 of Article III of the City Charter shall be amended so that such section shall
read as follows:
"If a vacancy should occur in the office of Councilmember or in the office of Mayor,such vacancy
shall be filled in the following manner:
a. In the event of one or two vacancies of the City Council for unexpired term(s)of twelve
(12) months or less, the vacancy/vacancies shall be filled by a majority vote of the
remaining members of the City Council within thirty(30)days of vacancy and the person
chosen shall serve for the unexpired term only;the person chosen to fill the unexpired term
shall reside in the ward of the vacant city council position,excluding the Mayor.
b. In the event of one or more vacancies of the City Council for unexpired term(s) greater
than 12 months, the vacancy/vacancies must be filled by majority vote of the qualified
voters at a special election called for such purpose within one hundred twenty(120)days
after such vacancy or vacancies occur.
PROPOSED AMENDMENT NO. c
That Section 17.04 of Article XVII of the City Charter shall be amended so that such section
shall read as follows:
"Before the City of Nederland shall be liable for personal injuries or property damage of any kind,
the person injured or whose property was damaged or someone on their behalf shall give the City
notice in writing of such injury or damage within sixty(60)days after the same has been sustained,
stating specifically in such notice when,where, and how the injury or damage occurred and the
extent thereof, and the names, if any witnessing the same, if such names and addresses can be
ascertained by reasonable diligence. No officer or employee of the City shall have authority to
waive any of the provisions of this section as to notice, but same may be waived only by a
resolution of the City Council, made and passed before the expiration of the period herein
provided,and evidenced by the minutes of the City Council."
CHARTER PROPOSITION NO. a
Shall Section 3.02 of Article I of the City Charter be amended to
limit the number of councilmembers living in each Ward?
CHARTER PROPOSITION NO. b
Shall Section 3.07 of Article II of the City Charter be amended to
further define how vacancies shall be filled?
CHARTER PROPOSITION NO. c
Shall Section 17.04 of Article XVII of the City Charter be
amended to include"property damage"?
PASSED, APPROVED AND ADOPTED by the City Council of the City of Nederland
this 13th day of May , 2019.
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City of Nederland,Texas
APPROVED AS TO FORM AND LEGALITY:
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,
Jesse v ani , ity Attorney
City • Ne•-rland,Texas
CITY OF NEDERLAND
ORDINANCE NO. 2019-16
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS,
CANVASSING THE RESULTS OF A SPECIAL
ELECTION HELD MAY 4, 2019, FOR THE
PURPOSE OF RE-AUTHORIZING THE
STREET SALES TAX
WHEREAS, on January 28, 2019 via Ordinance No. 2019-04, the City Council
of the City of Nederland, Texas (the "City") duly authorized an election to be held
within the City on May 4, 2019 for the purpose of submitting to the resident qualified
electors of the City a proposition regarding reauthorization of the street maintenance
sales tax;
WHEREAS, the City Council has investigated all matters pertaining to said
election; and,
WHEREAS, the election officers who held said election have duly made the
returns of the results thereof, and said returns have been duly delivered to this City
Council;
NOW,THEREFOE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS THAT:
Section 1. Findings
It is officially found and determined that said election was duly ordered, that
proper notice thereof was duly given, that proper election officers were duly
appointed prior to said election, that said election was duly and lawfully held,
that due returns of the results of said election have been made and delivered,
and that this City Council has duly canvassed said returns, all in accordance
with law and the Order Calling Election.
Section 2. Results Declared
It is officially found and determined that the following votes were cast as said
election on the submitted proposition by the resident qualified electors of the
City who voted at said election:
PROPOSITION
"The reauthorization of the local sales and use tax in the City of Nederland, Texas at
the rate of one-quarter (1/4) of one-percent (1%) to continue providing revenue for
maintenance and repair of municipal streets."
2280 VOTES FOR 533 VOTES AGAINST 2814 TOTAL VOTES CAST
and that the Proposition was approved by 1747 votes.
Section 3. Public Meeting
It is officially found, determined, and declared that the meeting at which this
Resolution has been adopted was open to the public and public notice of the time,
place, and subject matter of the public business to be considered and acted upon at
said meeting, including this Resolution, was given as required by the applicable
provisions of Texas Government Code, Chapter 551.
PASSED AND APPROVED this the 13th day of May, 2019.
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on Albanese,
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ATt,1` 1't ��
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Gay Fer%uson, City 'f-rk
City of Nederland, Texas
APPROVED AS TO FORM AND LEGALITY:
Jes Br. ni CityAttorney
Y
Ci of •ederland, Texas
RESOLUTION NO. 2019-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS, AUTHORIZING THE CITY
MANAGER, WHEN A FIREFIGHTER IS ON
EXTENDED UNPAID LEAVE OR ANOTHER
NECESSARY CIRCUMSTANCE, TO OVERHIRE
ENTRY-LEVEL CIVIL SERVICE FIRE POSITIONS
WHEREAS, the City Council of the City of Nederland has prescribed by Ordinance No.
2018-25,an appropriations ordinance adopting the fiscal year 2018-2019 budget,the number of
positions in each classification in the Nederland Fire Department in accordance with Chapter 143
of the Texas Local Government Code;and
WHEREAS,to promote public safety by efficiently staffing fire personnel,it is occasionally
necessary to hire one or more entry-level candidates when a member of the Fire Department is
serving on an extended military deployment or is otherwise on extended unpaid leave;and
WHEREAS, to promote public safety, it is necessary to adequately staff the Fire
Department.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS,THAT:
Section 1. The City Manager is authorized to,when the need arises,overhire entry-level
positions in the Fire Department when there is sufficient budgetary funds and
a temporary absence of entry-level civil service fire personnel as a result of
military leave or other unpaid leave.
Section 2. The meeting at which this resolution was approved was in all things conducted
in strict compliance with the Open Meetings Act, Texas Government Code,
Chapter 551.
Section 3. This resolution shall become effective from and after its passage.
PASSED AND APPROVED by the Nederland City Council this the 13TH day of May,2019.
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APPROVED AS TO FORM AND LEGALITY:
•
Jesse : anick Ci At
RESOLUTION NO. 2019-06
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEDERLAND, TEXAS
REVIEWING AND AMENDING THE CITY'S
INVESTMENT POLICY
WHEREAS, the City's current Investment Policy was adopted at the
January 8, 2018 City Council meeting via Resolution No. 2018-01; and
NOW,THERFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS:
SECTION 1. That the City of Nederland's Investment Policy,
substantially in the form attached hereto as "Exhibit
A", has been reviewed and is hereby amended. All
changes to the policy are reflected therein.
PASSED AND APPROVED this 13TH day of MAY, 2019.
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t � �O�JICI= Don Albanese,Mayor
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ATTOlis
Gay Ferg -an,City Clerk/
APPROVED AS TO FORM AND LEGALITY:
Jess- :ranic , :"Attorney
City of N-:erland,Texas
EXHIBIT A
"Exhibit A"
CITY OF NEDERLAND
INVESTMENT POLICY
Amended 5-946 5-13-19
The purpose of this document is to set forth specific investment policy and strategy
guidelines for the City of Nederland in order to achieve the goals of safety, liquidity,
yield, and public trust for all investment activity. This policy serves to satisfy the
statutory requirements (specifically the Public Funds Investment Act, V.T.C.A.
Government Code, Chapter 2256 (the "Act") to define, adopt and review a formal
investment strategy and policy.
INVESTMENT STRATEGY
The City of Nederland maintains portfolios which utilize four specific investment
strategy considerations designed to address the unique characteristics of the fund
groups represented in the portfolios:
A. Investment strategies for operating funds and commingled pools containing
operating funds have, as their primary objective, to assure that anticipated
cash flows are matched with adequate investment liquidity. The secondary
objective is to create a portfolio structure which will experience minimal
volatility during economic cycles. The dollar weighted average maturity of
365 days or less will be calculated using the stated final maturity date of each
security.
B. Investment strategies for debt service funds shall have as the primary
objective the assurance of investment liquidity adequate to cover the debt
service obligations on the required payment date. Securities purchased shall
not have a stated final maturity date which exceeds the debt service payment
date.
C. Investment strategies for debt service reserve funds shall have as the primary
objective the ability to generate a dependable revenue stream to the
appropriate debt service fund from securities with a low degree of volatility.
Securities should be of high quality and, except as may be required by the
bond ordinance specific to an individual issue, of short to intermediate-term
maturities. Volatility shall be further controlled through the purchase of
securities carrying the highest coupon available, within the desired maturity
and quality range, without paying a premium, if at all possible. Such
securities will tend to hold their value during economic cycles.
D. Investment strategies for special projects or special purpose fund portfolios
will have as their primary objective to assure that anticipated cash flows are
matched with adequate investment liquidity. The stated final maturity dates
of securities held should not exceed the estimated project completion date.
I. SCOPE
The investment policy applies to all financial assets of the City of Nederland. The
funds are accounted for in the City's Comprehensive Annual Financial Report
(CAFR) and include:
*General Fund
*Special Revenue Funds
*Debt Service Funds
*Capital Project Funds
*Enterprise Funds
*Internal Service Funds
*Any new fund created by the legislative body, unless specifically exempted
II. OBJECTIVES
The City of Nederland shall manage and invest its cash with four objectives, listed in
order of priority: Safety, Liquidity, Yield, and Public Trust. The safety of the
principal invested always remains the primary objective. All investments shall be
designed and managed in a manner responsive to the public trust and consistent
with State and Local law.
The City shall maintain a comprehensive cash management program which includes
collection of accounts receivable, vendor payment in accordance with invoice terms,
and prudent investment of available cash. Cash management is defined as the
process of managing monies in order to insure maximum availability and maximum
yield on short-term investment of pooled idle cash.
SAFETY
The primary objective of the City's investment activity is the preservation of capital
in the overall portfolio. Each investment transaction shall be conducted in a
manner to avoid capital losses, whether they be from securities defaults or erosion
of market value.
LIQUIDITY
The City's investment portfolio shall be structured such that the City is able to meet
all obligations in a timely manner. This shall be achieved by matching investment
maturities with forecasted cash flow requirements.
2
YIELD
The City's cash management portfolio shall be designed with the objective of
attaining a rate of return throughout budgetary and economic cycles,
commensurate with the City's investment risk constraints and the cash flow
characteristics of the portfolio.
PUBLIC TRUST
All participants in the City's investment process shall seek to act responsibly as
custodians of the public trust. Investment officials shall avoid any transactions
which might impair public confidence in the City's ability to govern effectively.
III. RESPONSIBILITY AND CONTROL
DELEGATION OF AUTHORITY AND TRAINING
Authority to manage the City's investment program is derived from an ordinance
approved by the City Council. The Director of Finance and the City Manager are
designated as investment officers of the City and are responsible for investment
decisions and activities. The Director of Finance shall establish written procedures
for the operation of the investment program, consistent with this investment policy.
TRAINING
The investment officers shall attend at least one training session relating to the
officer's responsibility under the Act within twelve (12) months after assuming
duties, and not less than (8) eight hours of training every (2) two years, relating to
their investment responsibilities. The two-year period shall begin on the first day of
the City's fiscal year and consist of the two consecutive fiscal years after that date.
Training must include education in investment controls, security risks, strategy
risks, market risks, diversification, and compliance with the PFIA. The training
must be provided by an independent source approved by the governing body or
designated investment committee. For these purposes, courses or seminars offered
by the Government Finance Officers Association, Government Finance Officers
Association of Texas, Texas Municipal League, Southwest School of Government
Finance, University of North Texas, North Central Texas Council of Governments,
Texas Association of Counties, Treasury Management Association or the
Government Treasurers Organization of Texas will satisfy the training requirements.
INTERNAL CONTROLS
The Director of Finance is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the entity are protected from
3
loss, theft or misuse. The internal control structure shall be designed to provide
reasonable assurance that these objectives are met. The concept of reasonable
assurance recognizes that (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates
and judgments by management. Accordingly, the Director of Finance shall establish
a process for annual independent review by an external auditor to assure
compliance with policies and procedures.
PRUDENCE
The standard of prudence to be applied by the investment officer shall be the
prudent investor rule which states: All investments shall be made with judgment
and care, under circumstances then prevailing, which persons of prudence,
discretion and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived. In determining whether an officer has
exercised prudence with respect to an investment decision, the determination shall
be made taking into consideration:
1. The investment of all funds, or funds under the City's control,
over which the officer had responsibility rather than a
consideration as to the prudence of a single investment.
2. Whether the investment decision was consistent with the written
policy of the City.
The investment officer, acting in accordance with written procedures and exercising
due diligence, shall not be held personally responsible for a specific security's credit
risk or market price changes, provided that these deviations are reported
immediately, and that appropriate action is taken to control adverse developments.
ETHICS AND CONFLICTS
City staff involved in the investment process shall refrain from personal business
activity that could conflict with proper execution of the investment program, or
which could impair the ability to make impartial investment decisions. City staff
shall disclose to the City Manager any material financial interests in financial
institutions that conduct business with the.City and they shall further disclose
positions that could be related to the performance of the City's portfolio. City staff
shall subordinate their personal financial transactions to those of the City,
particularly with regard to timing of purchases and sales.
An investment officer of the City, who has a personal business relationship with an
organization seeking to sell an investment to the City, shall file a statement
4
disclosing that personal business interest. An investment officer who is related
within the second degree by affinity or consanguinity to an individual seeking to sell
an investment to the City shall file a statement disclosing that relationship. A
statement required under this subsection must be filed with the Texas Ethics
Commission and the governing body of the entity.
IV. REPORTING
QUARTERLY REPORTING
The Director of Finance shall submit a signed quarterly investment report that
summarizes investment transactions for all funds covered under this policy for the
preceding reporting period. The quarterly investment report shall include a succinct
management summary that provides a clear picture of the status of the current
investment portfolio and transactions made over the last quarter. This management
summary will be prepared in a manner which will allow the City to ascertain
whether investment activities during the reporting period have conformed to the
investment policy. The report will be provided to the City Manager and City
Council. The report will include the following:
A. A listing of the individual securities held at the end of the reporting period.
B. Additions and changes to the market value during the period.
C. Listing of investments by maturity date.
D. Statement of compliance of the City's investment portfolio with State Law and
the investment strategy and policy approved by the City Council.
V. INVESTMENT PORTFOLIO
Assets of the City of Nederland may be invested in the following instruments
provided, however, that at no time shall assets of the City be invested in any
instrument or security not authorized for investment under the Act, as the Act may
from time to time be amended.
AUTHORIZED INVESTMENTS
A. Obligations of the United States of America, its agencies and instrumentalities.
B. Direct obligations of the State of Texas and agencies thereof.
C. Other obligations, the principal of and interest on which are unconditionally
guaranteed by the State of Texas or United States of America.
5
D. Obligations of the States, agencies thereof, Counties, Cities, and other political
subdivisions of any state having been rated as investment quality by a
nationally recognized investment rating firm and having received a rating of not
less than "A" or its equivalent.
E. Certificates of Deposit of state and national banks domiciled in Texas,
guaranteed or insured by the Federal Deposit Insurance or its successor or
secured by obligations described in A through D above, which are intended to
include all direct agency or instrumentality issued mortgage backed securities
rated AAA by a nationally recognized rating agency, or by Article 2529b-1,
V.T.C.S., and that have a market value of not less than the principal amount of
the certificates.
F. Fully collateralized direct repurchase agreements with a defined termination
date secured by obligations of the United States or its agencies and
instrumentalities pledged with a third party, selected by the Director of Finance,
other than an agency for the pledger. Repurchase agreements must be
purchased through a primary government securities dealer, as defined by the
Federal Reserve, or a bank domiciled in Texas.
G. Investments Pools which follow practices allowed by current law meet the
requirements of Chapter 2256.016 of the Public Funds Investment Act and are
rated not less than AAA or an equivalent rating by at least one nationally
recognized rating agency. Investments in such pools shall be limited to 60% of
the City's entire portfolio.
H. Not less than quarterly, the Investment Officers will monitor the credit rating for
each held investment that has a Public Fund Investment Act required minimum
rating.
NOT AUTHORIZED
The City's authorized investments options are more restrictive than those allowed by
State law. State law specifically prohibits investment in the following investment
securities.
A. Obligations whose payment represents the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security
collateral and pays no principal.
B. Obligations whose payment represents the principal stream of cash flow from
6
the underlying mortgage-backed security collateral and bears no interest.
C. Collateralized mortgage obligations that have a stated final maturity date of
greater than ten (10) years.
D. Collateralized mortgage obligations the interest rate of which is determined by
an index that adjusts opposite to the changes in a market index.
HOLDING PERIOD
The City of Nederland intends to match the holding periods of investment funds
with liquidity needs of the City. In no case will the average maturity of investments
of the City's operating funds exceed two (2) years. The maximum final stated
maturity of any investment shall not exceed five (5) years.
Investments in all funds shall be managed in such a way that the market price
losses resulting from interest rate volatility would be offset by coupon income and
current income received from the volume of the portfolio during a twelve (12) month
period.
RISK AND DIVERSIFICATION
The City of Nederland recognizes that investment risks can result from issuer
defaults, market price changes, or various technical complications leading to
temporary illiquidity. Risk is controlled through portfolio diversification which shall
be achieved by the following general guidelines:
A. Risk of issuer default is controlled by limiting investments to those instruments
allowed by the Act, which are described herein.
B. Risk of market price changes shall be controlled by avoiding over-concentration
of assets in a specific maturity sector, limitation or average maturity of
operating funds investments to one year, and avoidance of over-concentration of
assets in specific instruments other than U.S. Treasury Securities and Insured
or Collateralized Certificates of Deposit.
C. Risk of illiquidity due to technical complications shall be controlled by the
selection of securities dealers as described herein.
D. Diversification by investment type shall be established by the following
maximum percentages of investment type as compared to the total investment
portfolio at the time of each investment transaction:
a. U.S. Treasury Bills/Notes/Bonds 100%
7
b. U.S. Agencies 86 Instrumentalities 100%
c. States, Counties, Cities 85 Other 75%
d. Certificates of Deposit 75%
e. Eligible Investment Pools 100%
E. Bond Proceeds may be invested in a single security or investment if it is
determined that such an investment is necessary to comply with Federal
Arbitrage restrictions or to facilitate arbitrage record keeping and calculation.
VI. SELECTION OF BANKS AND DEALERS
DEPOSITORY
At least every five (5) years a Depository shall be selected through the City's banking
services procurement process. In selecting a depository, the credit worthiness of
institutions shall be considered, and the Director of Finance shall conduct a review
of prospective depositories credit characteristics.
SECURITIES DEALERS
All financial institutions and broker/dealers who desire to become qualified for
investment transactions must supply the following as appropriate:
*Proof of National Association of Securities Dealers (NASD) certification;
*Proof of state registration;
*Certification of having read the City's investment policy signed by a registered
principal of the organization; and
*Acknowledgment that the organization has implemented reasonable
procedures and controls in an effort to preclude imprudent investment
activities arising out of investment transactions conducted between the
City and the organization.
VII. SAFEKEEPING AND CUSTODY
INSURANCE OR COLLATERAL
All deposits and investments of City funds other than direct purchases of U. S.
Treasuries or Agencies shall be secured by pledged collateral. In order to anticipate
market changes and provide a level of security for all funds, the collateralization
level will be 100% of market value of principal and accrued interest on the deposits
or investments less an amount insured by the FDIC or FSLIC. Evidence of the
pledged collateral shall be maintained by the Director of Finance or a third-party
financial institution. Collateral shall be reviewed monthly to assure that the
8
market value of the pledged securities is adequate.
SAFEKEEPING AGREEMENT
Collateral pledged to secure deposits of the City shall be held by a safekeeping
institution in accordance with a safekeeping agreement which clearly defines the
procedural steps for gaining access to the collateral should the City of Nederland
determine that the City's funds are in jeopardy. The safekeeping institution, or
Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the
firm pledging the collateral.
COLLATERAL DEFINED
The City of Nederland shall accept only the following securities as collateral:
A. FDIC insurance coverage;
B. Direct obligations of the United States or its agencies and instrumentalities;
C. Obligations, the principal and interest on which, are unconditionally
guaranteed or insured by the State of Texas; and/or
D. A bond of the State of Texas or of a county, city or other political subdivision or
the State of Texas having been rated as investment grade (investment rating no
less than "A" or its equivalent) by a nationally recognized rating agency with a
remaining maturity of ten (10) years or less.
SUBJECT TO AUDIT
All collateral shall be subject to inspection and audit by the Director of Finance or
the City's independent auditors.
DELIVERY VS. PAYMENT
Treasury Bills, Notes, Bonds and Governmental Agencies' securities shall be
purchased using the delivery vs. payment method. That is, funds shall not be wired
or paid until verification has been made that the correct security was received by
the Trustee. The security shall be held in the name of the City or held on behalf of
the City. The Trustee's records shall assure the notation of the City's ownership of
or explicit claim on the securities. The original copy of all safekeeping receipts shall
be delivered to the City.
VIII. INVESTMENT POLICY ADOPTION
The City of Nederland investment policy shall be adopted by resolution of the City
Council. The policy shall be reviewed for effectiveness on an annual basis by the
City Council.
9
GLOSSARY OF
COMMON TREASURY TERMINOLOGY
Agencies: Federal agency securities. with finance-related legal and
contractual provisions, extensive
Asked: The price at which securities are introductory material, and a detailed
offered. Statistical Section.
Bid: The price offered for securities. Coupon: (a) The annual rate of interest
that a bond issuer promises to pay the
Broker: A broker brings buyers and bondholder on the bond's face value.
sellers together for a commission paid (b) A certificate attached to a bond
by the initiator of the transaction or by evidencing interest due on a payment
both sides; he does not position. In the date.
money market, brokers are active in
markets in which banks buy and sell Dealer: A dealer, as opposed to a
money and in interdealer markets. broker, acts as a principal in all
transactions, buying and selling for his
Certificate of Deposit (CD): A time own account.
deposit with a specific maturity
evidenced by a certificate. Large- Debenture: A bond secured only by the
denomination CD's are typically general credit of the issuer.
negotiable.
Delivery versus payment: There are two
Collateral: Securities, evidence of methods of delivery of securities:
deposit or other property which a delivery versus payment and delivery
borrower pledges to secure repayment versus receipt (also called free).
of a loan. Also refers to securities Delivery versus payment is delivery of
pledged by a bank to secure deposits of securities with an exchange of money
public monies. for the securities. Delivery versus
receipt is delivery of securities with an
Comprehensive Annual Financial exchange of a signed receipt for the
Report (CAFR): The official annual securities.
report for the City of Nederland. It
includes five combined statements and Discount: The difference between the
basic financial statements for each cost price of a security and its value at
individual fund and account group maturity when quoted at lower than
prepared in conformity with GAAP. It face value. A security selling below
also includes supporting schedules original offering price shortly after sale
necessary to demonstrate compliance also is considered to be at a discount.
10
Discount Securities: Non-interest- payment of principal and interest.
bearing money market instruments that
are issued at a discount and redeemed Federal Open Market Committee
at maturity for full face value, e.g., U. S. (FOMC): Consists of seven (7) members
Treasury bills. of the Federal Reserve Board and five (5)
of the twelve (12) Federal Reserve Bank
Diversification: Dividing investment Presidents. The President of the New
funds among a variety of securities York Federal Reserve Bank is a
offering independent returns. permanent member while the other
Presidents serve on a rotating basis.
Federal Credit Agencies: Agencies of the The Committee periodically meets to set
Federal government set up to supply Federal Reserve guidelines regarding
credit to various classes of institutions purchases and sales of Government
and individuals, e.g., S 86 L's, small Securities in the open-market as a
business firms, students, farmers, farm means of influencing the volume of
cooperatives, and exporters. bank credit and money.
Federal Deposit Insurance Corporation Federal Reserve System: The central
(FDIC): A federal agency that insures bank of the United States created by
bank deposits, currently up to Congress and consisting of a seven (7)
$100,000 per deposit. member Board of Governors in
Washington, D. C., twelve (12) regional
Federal National Mortgage Association banks and approximately 5,700
(FNMA): FNMA, like GNMA, was commercial banks that are members of
chartered under the Federal National the system.
Mortgage Association Act in 1938.
FNMA is a federal corporation working Government National Mortgage
under the auspices of the Department Association (GNMA or Ginnie Mae):
of Housing and Urban Development, Securities guaranteed by GNMA and
H.U.D. It is the largest single provider issued by mortgage bankers,
of residential mortgage funds in the commercial banks, savings and loan
United States. Fannie Mae, as the associations, and other institutions.
corporation is called, is a private Security holder is protected by full faith
stockholder-owned corporation. The and credit of the U. S. Government.
corporation's purchases include a Ginnie Mae securities are backed by
variety of adjustable mortgages and FHA, VA, or FMHM mortgages.
second loans in addition to fixed-rate
mortgages. FNMA's securities are also Liquidity: A liquid asset is one that can
highly liquid and are widely accepted. be converted easily and rapidly into
FNMA assumes and guarantees that all cash without a substantial loss of value.
security holders will receive timely In the money market, a security is said
11
to be liquid if the spread between bid
and asked prices is narrow and Money Market: The market in which
reasonable size can be done at those short-term debt instruments (bill,
quotes. commercial paper, bankers'
acceptances, etc.) are issued and
Local Government Investment Pool traded.
(LGIP): The aggregate of all funds from
political subdivisions that are placed in Open Market Operations: Purchases
the custody of the State Treasurer for and sales of government and certain
investment and reinvestment. other saturates in the open market by
the New York Federal Reserve Bank as
Market Value: The price at which a directed by the FOMC in order to
security is trading and could influence the volume of money and
presumably be purchased or sold. credit in the economy. Purchases inject
reserves into the bank system and
stimulate growth of money and credit;
Master Repurchase Agreement: To sales have the opposite effect. Open
protect investors, many public investors market operations are the Federal
will request that repurchase agreements Reserve's most important and most
be preceded by a master repurchase flexible monetary policy tool.
agreement between the investor and the
financial institution or dealer. The Portfolio: Collection of securities held by
master agreement should define the an investor.
nature of the transaction, identify the
relationship between the parties, Primary Dealer: A group of government
establish normal practices regarding securities dealers that submit daily
ownership and custody of the collateral reports of market activity and positions
securities during the term of the and monthly financial statements to the
investment, provide remedies in the Federal Reserve Bank of New York and
case of default by either party and are subject to its informal oversight.
clarify issues of ownership. The master Primary dealers include Securities and
repurchase agreement protects the Exchange Commission (SEC) registered
investor by eliminating the uncertainty securities broker-dealers, banks, and a
of ownership and hence, allowing few unregulated firms.
investors to liquidate collateral if a bank
or dealer defaults during the term of the Prudent Person Rule: An investment
agreement. standard. Investments shall be made
with judgment and care, under
Maturity: The date upon which the circumstances then prevailing, which
principal or stated value of an persons of prudence, discretion and
investment becomes due and payable. intelligence exercise in the management
12
of their own affairs, not for speculation, Treasury to finance the national debt.
but for investment, considering the Most bills are issued to mature in three
probable safety of their capital as well (3) months, six (6) months, or one (1)
as the probable income to be derived. year.
Qualified Public Depositories: A Treasury Bond: Long-term U. S.
financial institution which does not Treasury securities having initial
claim exemption from the payment of maturities of more than ten (10) years.
any sales or compensating use or ad
valorem taxes under the laws of this Treasury Notes: Intermediate term
state, which has segregated for the coupon bearing U. S. Treasury
benefit of the commission eligible securities having initial maturities from
collateral having a value of not less than one (1) to ten (10) years.
its maximum liability, and which has
been approved by the Public Deposit Yield: The rate of annual income
Protection Commission to hold public returns on an investment, expressed as
deposits. a percentage. (A) Income Yield is
obtained by dividing the current dollar
Rate of Return: The yield obtainable on income by the current market price of
a security based on its purchase price the security. (B) Net Yield or Yield to
or its current market price. This may maturity is the current income yield
be the amortized yield to maturity on a minus any premium above par or plus
bond or the current income return. any discount from par in purchase
price, with the adjustment spread over
. Safekeeping: A service to customers the period form the date of purchase to
rendered by banks for a fee whereby the date of maturity of the bond.
securities and valuables of all types and
descriptions are held in the bank's
vaults for protection.
Secondary Market: A market made for
the purchase and sale of outstanding
issues following the initial distribution.
Securities & Exchange Commission:
Agency created by Congress to protect
investors in securities transactions by
administering securities legislation.
Treasury Bills: A non-interest-bearing
discount security issued by the US.
13
ORDINANCE NO. 2019-17
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 MAY 21, 2019, EFFECTIVE DATE
PROPOSED BY TEXAS GAS SERVICE
COMPANY, IN CONNECTION WITH ITS
STATEMENT OF INTENT TO INCREASE RATES,
FILED ON APRIL 16, 2019; AUTHORIZING THE
HIRING OF LAWYERS AND RATE EXPERTS;
AUTHORIZING THE CITY'S PARTICIPATION
TO THE FULL EXTENT PERMITTED BY LAW AT
THE RAILROAD COMMISSION OF TEXAS;
REQUIRING REIMBURSEMENT OF MUNICIPAL
RATE CASE EXPENSES; FINDING THAT THE
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 April 16, 2019, Texas Gas Service Company ("TGS" or
"Company")filed a Statement of Intent with the City of Nederland ("City")and with the
Texas Railroad Commission to implement a Hurricane Harvey Surcharge in the Gulf Coast
Service Area by$357,194 per year for two years,with an effective date of May 21,2019;
and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Texas Utilities Code
§103.001;and
WHEREAS,Texas Utilities Code§103.021 requires a local regulatory authority to
make a reasonable determination of rate base,expenses,investment and rate of return
and to retain the necessary personnel to determine reasonable rates;and
WHEREAS,Texas Utilities Code§104.107 provides that the City may suspend the
Company's proposed effective date up to 90 days;and
WHEREAS, given the complexity of the proposed rate increase and the need to
fully review the proposed rate adjustment,it is necessary to suspend the effective date
of the proposed rates until at least August 19, 2019, in order to allow the City's rate
experts sufficient time to determine the merits of TGS'proposed surcharge;and
WHEREAS, the City will join with other similarly-situated municipalities in the
South Jefferson County Gulf Coast Service Areas Steering Committee ("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
WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking
proceedings shall be reimbursed by the gas utility under Texas Utilities Code§ 103.022;
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 TGS's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety(90) days
until August 19,2019,to allow for a complete review and investigation of the application.
Section 3. The City is authorized to join with other municipalities as part of
the Steering Committee with the understanding that the Steering Committee will provide
direction and guidance to the lawyers who are representing said Cities.
Section 4. The City employs The Lawton Law Firm, P.C.to represent the City
with regard to the Company's proposed rate increase before local and state regulatory
authorities and any court of law and authorizes counsel to employ such rate experts as
are recommended by the Steering Committee.
Section 5. City's legal representatives shall have the right to obtain additional
information from TGS through the service of requests for information, which shall be
responded to within fourteen (14) calendar days of receipt of such requests for
information.
Section 6. The Steering Committee shall review the invoices of the lawyers
and rate experts for reasonableness before submitting the invoices to TGS for
reimbursement.
Section 7. TGS shall reimburse the City, through the designated
representative of the Steering Committee, for the reasonable costs of attorneys' and
consultants' fees and 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 13TH day of MAY,2019.
,0,uwwn1p,,,,��',,o
s g-e(
�� z= ton Albanese,Mayor
c5 City of Nederland,Texas
„ 4/7:4....•`0
Gay Ferg on,City Cler
City of Nederland,Texas
APPROVED AS TO FORM AND LEGALITY:
Jesse 'ranic y Attorney
City -derland,Texas
RA."Dick"Nugent,Mayor
m�\ Billy Neal,Mayor Pro-Tem
. £ Talmadge Austin,Councilmember
Craig J. EtEE
Ci Nederland�/ � Vaira Chrih
V"I. P.O.Box 967•Nederland,Texas 77627•(409)723-1503•FAX(409)723-1550
�,.'.
Investment Report
For the Quarter Ending December 31,2018
This report has been prepared in accordance with the Public Funds Investment Act(Section
2256.023, Government Code),which requires that a quarterly report be submitted to City
Council detailing investment transactions and performance for the reporting period.
Submitt-. by the Investment Officers of the City of Nederland
• Chris: e, Cii Manager
Cheryl D.wden,Director of Finance
`Programmed for Progress"
City of Nederland
Summary of Account Activity
Total Portfolio - All Accounts
For Quarter Ending December 31, 2018
Investments at Beginning of Period (10-1-18) $ 19,648,293.81
Purchases 109,724.23
Maturities 0.00
Investments at End of Period(12-31-18) $ 19,758,018.04
Maturity Summary at
December 31, 2018
■Less than 3 months
113 to 9 months
09 to 12 months
■Greater than 12 months
City of Nederland
Summary of Account Activity
Total Portfolio -All Accounts
For Quarter Ending December 31, 2018
Balance Balance
10/1/2018 Purchases Maturities 12/31/2018
General Fund $ 11,426,046.47 $ 63,807.79 $ 11,489,854.26
Library Fund 22,909.71 128.03 23,037.74
Library Fund-Zaruk Memorial 10,171.43 56.71 10,228.14
Nederland Ave. Rehab Fund 4,491,730.70 25,083.74 4,516,814.44
Water& Sewer Fund 3,044,353.18 17,000.95 3,061,354.13
Solid Waste Fund 523,272.27 2,922.22 526,194.49
Police Narcotics Fund 48,545.86 271.06 48,816.92
Bond Redemption Fund 81,264.19 453.73 81,717.92
$ 19,648,293.81 $ 109,724.23 $ - $ 19,758,018.04
Fund Allocation at December 31, 2018
Solid Waste Fund
Police Narcotics Fund
2.66%
0.25% r
Nederland Ave.Rehab
Fund
22.86%
Bond Redemption_
Fund General Fund
0.41% 58.15%
Water&Sewer Fund Library Fund-
15.49% Zaruk Library Fund
Memorial 0.12%
0.05%
Investment Report Schedule
Investments for the Quarter ended December 31,2018
INVESTMENT POOL-TEXPOOL
Average
Days to Interest Interest
Period Held Maturity Rate Market Principal Earned Book Value
General Fund 10/01/18 12/31/18 1 2.2113% $ 11,426,046.47 63,807.79 $ 11,489,854.26
Water&Sewer 10/01/18 12/31/18 1 2.2113% 3,044,353.18 17,000.95 3,061,354.13
Bond Redemption Fund 10/01/18 12/31/18 1 2.2113% 81,264.19 453.73 81,717.92
Library Special 10/01/18 12/31/18 1 2.2113% 22,909.71 128.03 23,037.74
Library Special-Zaruk Memorial 10/01/18 12/31/18 1 2.2113% 10,171.43 56.71 10,228.14
Nederland Ave.Rehab Fund 10/01/18 12/31/18 1 2.2113% 4,491,730.70 25,083.74 4,516,814.44
Solid Waste Fund 10/01/18 12/31/18 1 2.2113% 523,272.27 2,922.22 526,194.49
Police Narcotic Fund 10/01/18 12/31/18 1 2.2113% 48,545.86 271.06 48,816.92
Totals for TEXPOOL Investments $ 19,648,293.81 $109,724.23 $ 19,758,018.04
*Texpool is rated AAAm by Standard&Poor's,which is the
highest rating a local government investment pool can achieve
Investment Report Schedule
Investments for the Quarter ended December 31,2018
INTEREST EARNED ON DEMAND DEPOSITS
Average Interest Earned
Days to Interest Quarter ended
Period Held Maturity Rate December 31,2018
Bond Redemption Fund 10/01/18 12/31/18 1 0.2191% $ 69.12
Capital Outlay Fund 10/01/18 12/31/18 1 0.2191% 662.71
Court Technology Fund 10/01/18 12/31/18 1 0.2191% 2.52
Equipment Replacement Funds 10/01/18 12/31/18 1 0.2191% 1,331.75
Fire Department Special Fund 10/01/18 12/31/18 1 0.2191% 28.37
General Fund 10/01/18 12/31/18 1 0.2191% 416.39
Library Special Fund 10/01/18 12/31/18 1 0.2191% 8.90
MCML Dispatch 10/01/18 12/31/18 1 0.2191% 268.08
Motel Occupancy Tax Fund 10/01/18 12/31/18 1 0.2191% 42.79
Nederland Avenue Project 10/01/18 12/31/18 1 0.2191% (59.24)
Parks&Recreation Special Fund 10/01/18 12/31/18 1 0.2191% 120.03
Police Narcotic Fund 10/01/18 12/31/18 1 0.2191% 50.88
Solid Waste Fund 10/01/18 12/31/18 1 0.2191% 1,101.43
Street Improvement Fund 10/01/18 12/31/18 1 0.2191% 2,036.18
SSES Fund 10/01/18 12/31/18 1 0.2191% 252.27
2018 WW Project 10/01/18 12/31/18 1 0.2191% 4,359.89
Water Plant Construction Fund 10/01/18 12/31/18 1 0.2191% 127.93
Wastewater Construction Fund 10/01/18 12/31/18 1 0.2191% 8.57
W&S Certificate Fund 10/01/18 12/31/18 1 0.2191% 73.10
Water&Sewer Fund 10/01/18 12/31/18 1 0.2191% 1,240.70
$ 12,142.37
Investment Report Schedule
December 31, 2018
Interest Earnings for Quarter Ended December 31, 2018
Bond Redemption Fund $ 522.85
Capital Outlay Fund 662.71
Court Technology Fund 2.52
Equipment Replacement Funds 1,331.75
Fire Department Special Fund 28.37
General Fund 64,224.18
Library Special Fund 136.93
Library Special Fund-Zaruk Memorial 56.71
MCML Dispatch 268.08
Motel Occupancy Tax Fund 42.79
Nederland Avenue Project 25,024.50
Parks &Recreation Special Fund 120.03
Police Narcotic Account 321.94
Solid Waste Fund 4,023.65
Street Improvement Fund 2,036.18
SSES Fund 252.27
2018 WW Project 4,359.89
Water Plant Construction Fund 127.93
Wastewater Construction Fund 8.57
W& S Certificate Fund 73.10
Water& Sewer Fund 18,241.65
$ 121,866.60
�� R.A."Dick'Nugent,Mayor
/ 0 Billy Neal,Mayor Pro-Tern
Q � T \\ Talmadge Austin,Councilmember
�\ Craig J.Belaire,Councilmember
City of Nederland Vacant,Councilmember
I Q '' Christopher Duque,City Manager
P.O.Box 967•Nederland,Texas 77627•(409)723-1503•FAX(409)723-1550
NEDEYZLA D,TExAs
t-49
Investment Report
For the Quarter Ending March 31,2019
This report has been prepared in accordance with the Public Funds Investment Act(Section
2256.023,Government Code),which requires that a quarterly report be submitted to City
Council detailing investment transactions and performance for the reporting period.
Submitt-• by the Investment Officers of the City of Nederland
l
J
Chris Du." Ci Manager
(�J 4
-
Cheryl owden,Director of Finance
`Programmed for Progress
City of Nederland
Summary of Account Activity
Total Portfolio-All Accounts
For Quarter Ending March 31,2019
Investments at Beginning of Period (1-1-19) $ 19,758,018.04
Purchases 108,455.01
Maturities 2,500,000.00
Investments at End of Period(3-31-19) $ 17,366,473.05
Maturity Summary at
March 31, 2019
•Less than 3 months
■3 to 9 months
O 9 to 12 months
•Greater than 12 months
City of Nederland
Summary of Account Activity
Total Portfolio -All Accounts
For Quarter Ending March 31,2019
Balance Balance
1/1/2019 Purchases Maturities 3/31/2019
General Fund $ 11,489,854.26 $ 68,158.94 $ 11,558,013.20
Library Fund 23,037.74 136.74 23,174.48
Library Fund-Zaruk Memorial 10,228.14 60.57 10,288.71
Nederland Ave.Rehab Fund 4,516,814.44 18,042.63 $ 2,500,000.00 2,034,857.07
Water& Sewer Fund 3,061,354.13 18,160.29 3,079,514.42
Solid Waste Fund 526,194.49 3,121.45 529,315.94
Police Narcotics Fund 48,816.92 289.59 49,106.51
Bond Redemption Fund 81,717.92 484.80 82,202.72
$ 19,758,018.04 $ 108,455.01 $ 2,500,000.00 $ 17,366,473.05
Fund Allocation at March 31, 2019
Nederland Ave.Rehab
Fund Solid Waste Fund
Police Narcotics Fund 11.72% 3.05%
0.28%
Bond Redemption Fund
0.47%
Water&Sewer Fund General Fund
17.73% 66.55%
Library Fund-Zaruk
Memorial Library Fund
0.06% 0.13%
Investment Report Schedule
Investments for the Quarter ended March 31,2019
INVESTMENT POOL-TEXPOOL
Average
Days to Interest Interest
Period Held Maturity Rate Market Principal Earned Book Value
General Fund 01/01/19 03/31/19 1 2.4009% $ 11,489,854.26 68,158.94 $ 11,558,013.20
Water&Sewer 01/01/19 03/31/19 1 2.4009% 3,061,354.13 18,160.29 3,079,514.42
Bond Redemption Fund 01/01/19 03/31/19 1 2.4009% 81,717.92 484.80 82,202.72
Library Special 01/01/19 03/31/19 1 2.4009% 23,037.74 136.74 23,174.48
Library Special-Zaruk Memorial 01/01/19 03/31/19 1 2.4009% 10,228.14 60.57 10,288.71
Nederland Ave.Rehab Fund 01/01/19 03/31/19 1 2.4009% 2,016,814.44 18,042.63 2,034,857.07
Solid Waste Fund 01/01/19 03/31/19 1 2.4009% 526,194.49 3,121.45 529,315.94
Police Narcotic Fund 01/01/19 03/31/19 1 2.4009% 48,816.92 289.59 49,106.51
Totals for TEXPOOL Investments $ 17,258,018.04 $108,455.01 $17,366,473.05
*Texpool is rated AAAm by Standard&Poor's,which is the
highest rating a local government investment pool can achieve
Investment Report Schedule
Investments for the Quarter ended March 31,2019
INTEREST EARNED ON DEMAND DEPOSITS
Average Interest Earned
Days to Interest Quarter ended
Period Held Maturity Rate March 31,2019
Bond Redemption Fund 01/01/19 03/31/19 1 0.1954% $ 67.65
Capital Outlay Fund 01/01/19 03/31/19 1 0.1954% 590.41
Court Technology Fund 01/01/19 03/31/19 1 0.1954% 3.07
Equipment Replacement Funds 01/01/19 03/31/19 1 0.1954% 1,027.70
Fire Department Special Fund 01/01/19 03/31/19 1 0.1954% 24.17
General Fund 01/01/19 03/31/19 1 0.1954% 2,692.84
Library Special Fund 01/01/19 03/31/19 1 0.1954% 16.97
MCML Dispatch 01/01/19 03/31/19 1 0.1954% 233.21
Motel Occupancy Tax Fund 01/01/19 03/31/19 1 0.1954% 43.43
Nederland Avenue Project 01/01/19 03/31/19 1 0.1954% 43.74
Parks&Recreation Special Fund 01/01/19 03/31/19 1 0.1954% 94.88
Police Narcotic Fund 01/01/19 03/31/19 1 0.1954% 40.32
Solid Waste Fund 01/01/19 03/31/19 1 0.1954% 1,057.44
Street Improvement Fund 01/01/19 03/31/19 1 0.1954% 1,705.60
SSES Fund 01/01/19 03/31/19 1 0.1954% 225.80
2018 WW Project 01/01/19 03/31/19 1 0.1954% 4,982.52
Water Plant Construction Fund 01/01/19 03/31/19 1 0.1954% 21.48
Wastewater Construction Fund 01/01/19 03/31/19 1 0.1954% 7.68
W&S Certificate Fund 01/01/19 03/31/19 1 0.1954% 71.54
Water&Sewer Fund 01/01/19 03/31/19 1 0.1954% 1,337.87
$ 14,288.32
Investment Report Schedule
March 31, 2019
Interest Earnings for Quarter Ended March 31, 2019
Bond Redemption Fund $ 552.45
Capital Outlay Fund 590.41
Court Technology Fund 3.07
Equipment Replacement Funds 1,027.70
Fire Department Special Fund 24.17
General Fund 70,851.78
Library Special Fund 153.71
Library Special Fund-Zaruk Memorial 60.57
MCML Dispatch 233.21
Motel Occupancy Tax Fund 43.43
Nederland Avenue Project 18,086.37
Parks&Recreation Special Fund 94.88
Police Narcotic Account 329.91
Solid Waste Fund 4,178.89
Street Improvement Fund 1,705.60
SSES Fund 225.80
2018 WW Project 4,982.52
Water Plant Construction Fund 21.48
Wastewater Construction Fund 7.68
W& S Certificate Fund 71.54
Water& Sewer Fund 19,498.16
$ 122,743.33