August 10, 2020 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m- August 10, 2020
1_ MEETING
The meeting was called to order at 4:30 p.m. by Mayor Albanese at the Nederland City
Office Building, 207 N. 12t^ Street, Nederland, Texas. See attached for quorum.
This meeting was closed to in-person attendance by the public_ A temporary
suspension of the Open Meetings Act to allow telephone or videoconference public
meetings has been granted by Governor Abbott. Telephonic and videoconferencing
capabilities were utilized to allow individuals to address the City Council_
The following statement was posted:
"PURSUANT TO SECTION 30_07, PENAL CODE (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGIJN3, A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation and pledge of allegiance were led by Gay Ferguson, City Clerk_
3_ CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Austin and seconded by Councilmember Root
to approve the Consent Agenda Item "a" as presented. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
a. Minutes - July 27, 2019 regular meeting and July 20, 2020 budget workshop.
4. REGULAR AGENDA
a. A motion was made by Councilmember Neal and seconded by Mayor Pro Tem
Hollier to accept the Quarterly Investment Report from the Finance Department.
MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
Minutes Continued, August 10, 2020
b. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Hollier to approve a work authorization with Schaumburg & Polk, Inc. for
engineering services related to the Avenue G and Canal Avenue Elevated Water
Storage Tanks Rehabilitation project. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
c. Chris Duque, City Manager, reported the number of cases of COVID-19 has not
decreased and he recommended not making changes regarding the opening of city
buildings and facilities.
Councilmember Neal stated he continues to receive numerous complaints about
City Hall being closed.
d. Fiscal Year 2020-2021 Budget:
i. Chris Duque, City Manager, reported there has been an amendment, of$1 in the
Water & Sewer Fund to ensure the budget is balanced, to the preliminary budget
which was presented at a budget workshop held on July 20, 2020. He said a
public hearing must be scheduled to solicit public input/comments regarding the
budget. A copy of the budget is available in the City Clerk's Office and will be
posted on the City's website. Mr. Duque recommended approval of Resolution No.
2020-13 setting a public hearing date of Monday, August 24th at 4:30 p.m. at the
Nederland City Hall.
Budget Highlights include:
General Fund
• Balanced budget by reducing the tax rate to voter-approval tax rate of
0.579708 per $100 assessed taxable value
• Balanced budget with revenues and expenditures totaling $11,945,200
• Expenditures represent an increase of 4.81% or $548,142 over last year's
adopted budget. Significant portion of increase goes toward salary and
benefits increase, which includes one new Streets Maintenance Worker
position, a 2% COLA for all full-time employees, steps for employees eligible
for a step, steps for police officers and firefighters covered by collective
bargaining agreements, as well as increasing the monthly allocation to the
Senior Citizen Center, $50,000 for a street light project, and increased
Equipment Replacement transfer (34.66% increase)
• 2% COLA for all regular, full-time employees; steps for hourly employees
affected by 2016 salary survey on October 1, 2020; steps for hourly
employees not affected by salary survey on their anniversary date; steps
for police and fire fighters per their collective bargaining agreement; steps
for salaried employees affected by salary survey on April 1, 2021; steps for
salaried employees not affected by salary survey or hired after April 1, 2017
on their anniversary date; pay scale adjustments for Patrol Officers per
police CBA; $0.25/hour increase to part-time employee wages (if they have
been with the City for two consecutive years).
• Continue Health Lifestyle Stipend - $40/month per employee who meet
certain physical criteria; this is an effort to manage health insurance costs;
continue to fund health insurance's healthy initiatives program
• 2020/2021 Street Program budget $1.015M: $275,000 for Street
Improvements in Street Department and $740,000 budgeted via the Street
Improvement Fund; plan to allocate an additional $300,000 in the Street
Improvement Fund after 10/1/2020 to be utilized for street projects.
Minutes Continued, August 10, 2020
• Book budget for the Library - $25,000
• $198,000 for street lights
• $52,000 for senior citizen center
• $12,000 for special programs to pay youth league reimbursements and city
events
• $2,500 for Spay & Neuter program and $1,500 for feline population control
services
Water & Sewer Fund
• Balanced budget with revenue and expenditures equaling $5,244,293 which
is an increase of 1 percent from last year's adopted budget
• Water base rate increase $0.25; no recommended sewer rate increase;
increase due to majority of new costs are water-related; first water rate
increase in several years
• 2% COLA for all regular, full-time employees; steps for hourly employees
affected by the 2016 salary survey on October 1, 2020; steps for hourly
employees not affected by salary survey on their anniversary date; steps
for salaried employees affected by salary survey on April 1, 2021; steps for
salaried employees not affected by salary survey on their anniversary date;
• $235,000 for Untreated Water (updated LNVA water allocation)
• $62,000 for Water Treatment Fixed Plant and Equipment R&M and $93,000
for WWTP Equipment - plant repairs/upgrades that may be necessary
during fiscal year
• $55,000 allocated for water meters due to expired warranty and new
accounts; increase in contractual services due to utility bill credit card fees
• WWTP budget adjusted to reflect actual costs
• $105,000 for Water and Sewer Mains and $5,000 for Water Distribution
Lines
Solid Waste Fund
• Balanced budget with revenue and expenditures equaling $1,650,462 which
is an increase of 1.86 percent from last year's adopted budget
• $0.50 fee increase proposed; first rate increase in 4 years
• 2% COLA for all regular, full-time employees; steps for employees not
affected by salary survey on anniversary date; steps for employees affected
by salary survey on April 1, 2021
• Waste disposal costs continue to gradually increase due to revised contract
with BFI/Allied Waste
• Green Waste Disposal reflect chipping contract
• $10,000 for contractual services, still no available recycling services
Equipment Replacement Funds
• General Fund: $458,000 for purchase of 2 police patrol units (Ford
Explorers), and an excavator for the Street Department; $132,000 out of
reserves
• Water & Sewer Fund: $60,000 for purchase of two 1/2 ton pickup trucks for
W/S Distribution and WWTP
• Solid Waste: $320,000 allocated for the purchase of a trash truck and
pickup truck; $19,500 out of reserves
A motion was made by Councilmember Root and seconded by Mayor Pro Tern
Hollier to approve Resolution No. 2020-13, submitting the City of Nederland Annual
Budget for the fiscal year beginning October 1, 2020 and ending September 30,
Minutes Continued, August 10, 2020
2021 and calling for a Public Hearing to be held on August 24, 2020 at 4:30 p.m.
at Nederland City Hall (207 N. 12th Street) for the purpose of discussing the
proposed budget, as per Article VI of the City Charter. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
ii. Chris Duque, City Manager, stated Nederland has a current tax rate of
$0.599159 per $100 assessed value which is the lowest tax rate among the mid
and south-county cities. Last year, the State Legislature approved Senate Bill 2
that made significant changes to property taxes. Previously, the City discussed
adopting a tax rate between the effective tax rate (the benchmark tax rate needed
to raise the same amount of maintenance and operations property taxes on
existing property as the previous year after taking into account changes in
appraised values) and the rollback tax rate (the tax rate necessary to raise
precisely 8% more maintenance and operations tax revenue as the year before
after taking into account appraisal fluctuations.) Following Senate Bill 2 approval,
the term effective tax rate has been changed to no-new-revenue tax rate and
rollback tax rate has been changed to voter-approval tax rate. The voter-approval
tax rate is calculated utilizing 3.5% instead of 8%. On Friday, Jefferson County
Appraisal District submitted the assessed taxable value of $1,236,938,594, an
increase of 4.27% or $50,641,065. Mr. Duque recommended the city council
consider reducing the tax rate to the voter-approval or rollback tax rate of
$0.579708 per $100 assessed valuation, which is $0.004475 or 0.778% greater
than the no-new revenue or effective tax rate. He felt it was necessary to utilize
the voter-approval or rollback tax rate with the on-going Nederland Avenue project
debt, creation of a new streets maintenance worker position, on-going sluggish
industrial development, and the continuing sales tax impact of COVID-19. The
proposed budget is based on the voter-approval or rollback tax rate. Since the
proposed tax rate ($0.579708) is greater than the no-new revenue or effective tax
rate, a public hearing is necessary. The subsequent agenda items have been
included to satisfy this requirement.
A motion was made by Councilmember Root and seconded by Mayor Pro Tern
Hollier to approve a proposed tax rate of $0.579708 per $100 assessed valuation
for the fiscal year beginning October 1, 2020 and ending September 30, 2021.
MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
iii. A motion was made by Councilmember Austin and seconded by Councilmember
Neal to schedule tax rate adoption dates:
• Monday August 24th at 4:30 p.m. at the Nederland City Hall (regular
meeting) - 1st Public Hearing
• Monday, September 14th at 4:30 p.m. at the Nederland City Hall (regular
meeting) - Adopt the tax Rate
MOTION CARRIED:
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
iv. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Hollier regarding the proposed tax rate and establishing the date of August 24,
2020 at 4:30 p.m. for public hearing. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Minutes Continued, August 10, 2020
Noes: None.
5. EXECUTIVE SESSION
The regular meeting was recessed at 5:05 p.m. by Mayor Albanese for the purpose of
conducting an Executive Session as authorized by Texas Government Code, Chapter
551.074, Discuss Personnel - Annual Evaluation; City Manager, Christopher Duque.
6. RECONVENE
The regular meeting was reconvened at 5:14 p.m. by Mayor Albanese.
7. APPOINTMENTS
A motion was made by Councilmember Austin and seconded by Councilmember Root
to approve an employment agreement between the City of Nederland and Nederland
City Manager, Christopher Duque. MOTION CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
8. COMMUNICATION
a. Miscellaneous:
1. Robert Woods, Director of Public Works, gave a brief update on
projects:
• Asphalt Street Project and Concrete Street Project are completed.
• Sewerline Project is completed and close-out is expected the end of August.
• Hodgson and Bourque Road Pre-Construction Conference has been held.
• Contracts for the Public Safety Complex Parking Lot Project are being drafted.
2. Plans are being finalized for a COVID testing site in Nederland planned for 2
days next week.
9. ADJOURN
There being no further business a motion was made by Mayor Albanese and
seconded by Councilmember Hollier to adjourn the meeting at 5:14 p.m. MOTION
CARRIED.
Ayes: Mayor Albanese, Councilmembers Austin, Neal, Hollier, and Root.
Noes: None.
, /1//
ion Albanese, ayor
City of Nederland, Texas
Minutes Continued, August 10, 2020
ATTEST:
4 . i 1/ Ai .Ai
eay Fetgusn, City Cler'
City of Ned-rland, Texas
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
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
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 ✓
1111
ovt aggrAsi
on Albanese, Mayor
G:y Fergu , City Clerk r
Auqust 10, 2020
Date
Don Albanese,Mayor
ED Billy Neal,Councilmember
-F\ Talmadge Austin,Councilmember
City of Nederland Emmett Hollier,Mayor Pro-Tem
Sylvia Root,Councilmember
Christopher Duque,City Manager
P.O.Box 967•Nederland,Texas 77627•(409)723-1503•FAX(409)723-1550
�nriu.w�v.Tr ,�
Investment Report
For the Quarter Ending June 30,2020
This report has been prepared in accordance with the Public Funds Investment Act(Section
2256.023, Government Code),which requires that a quarterly report be submitted to City
Council detailing investment transactions and performance for the reporting period.
Submitted by the Investment Officers of the City of Nederland
s Duqu ,City Manager
3
41F4i0
Cheryl �lr a a - , •erector of Finance
"Programmed for Progress"
City of Nederland
Summary of Account Activity
Total Portfolio - All Accounts
For Quarter Ending June 30,2020
Investments at Beginning of Period (4-1-20) $ 16,909,627.73
Purchases 15,015,035.62
Maturities 300,000.00
Investments at End of Period(6-30-20) $ 31,624,663.35
Maturity Summary at
June 30, 2020
■Less than 3 months
■3 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 June 30, 2020
Balance Balance
4/1/2020 Purchases Maturities 6/30/2020
General Fund $ 7,843,050.38 $ 9,007,288.37 $ 16,850,338.75
Library Fund 74,006.92 53.70 74,060.62
Library Fund-Zaruk Memorial 10,521.93 12.28 10,534.21
2017 Street Improvement Bond Fund 366,092.76 250.28 100,000.00 266,343.04
Water&Sewer Fund 5,569,180.93 4,274.62 200,000.00 5,373,455.55
Solid Waste Fund 2,459,797.44 1,919.12 2,461,716.56
Street Improvement Fund 51,402.90 40.08 51,442.98
Police Narcotics Fund 110,577.79 86.35 110,664.14
2018 WW Project 239,372.68 6,000,965.99 6,240,338.67
Bond Redemption Fund 185,624.00 144.83 185,768.83
$ 16,909,627.73 $15,015,035.62 $ 300,000.00 $ 31,624,663.35
Fund Allocation at June 30, 2020
Police Narcotics Fund
0.35%
Street Improvement Fund
0.16% Solid Waste Fund
7.78%
2017 Street Improvement
Bond Fund
0.84%
Water&Sewer Fund.
16.99% General Fund
Bond Redemption Fund 53.28%
0.59%
Library Fund-Zaruk Library Fund
Memorial 0.23% 2018 WW Project
0.03% 19.73%
Investment Report Schedule
Investments for the Quarter ended June 30,2020
INVESTMENT POOL-TEXPOOL
Average
Days to Interest Interest
Period Held Maturity Rate Market Principal Earned Book Value
General Fund 04/01/20 06/30/20 1 0.3134% $ 16,843,050.38 7,288.37 $ 16,850,338.75
Water&Sewer 04/01/20 06/30/20 1 0.3134% 5,369,180.93 4,274.62 5,373,455.55
Bond Redemption Fund 04/01/20 06/30/20 1 0.3134% 185,624.00 144.83 185,768.83
Library Special 04/01/20 06/30/20 1 0.3134% 74,006.92 53.70 74,060.62
Library Special-Zaruk Memorial 04/01/20 06/30/20 1 0.3134% 10,521.93 12.28 10,534.21
2017 Street Improvement Bond Fund 04/01/20 06/30/20 1 0.3134% 266,092.76 250.28 266,343.04
Solid Waste Fund 04/01/20 06/30/20 1 0.3134% 2,459,797.44 1,919.12 2,461,716.56
Street Improvement Fund 04/01/20 06/30/20 1 0.3134% 51,402.90 40.08 51,442.98
2018 WW Project 04/01/20 06/30/20 1 0.3134% 6,239,372.68 965.99 6,240,338.67
Police Narcotic Fund 04/01/20 06/30/20 1 0.3134% 110,577.79 86.35 110,664.14
Totals for TEXPOOL Investments $ 31,609,627.73 $ 15,035.62 $31,624,663.35
*Texpool is rated AAAm by Standard&Poor's,which is the
highest rating a local government investment pool can achieve
Investment Report Schedule
Investments for the Quarter ended June 30,2020
INTEREST EARNED ON DEMAND DEPOSITS
Average Interest Earned
Days to Interest Quarter ended
Period Held Maturity Rate June 30,2020
Bond Redemption Fund 04/01/20 06/30/20 1 0.2500% $ 7.86
Capital Outlay Fund 04/01/20 06/30/20 1 0.2500% 612.80
Court Technology Fund 04/01/20 06/30/20 1 0.2500% 0.95
Equipment Replacement Funds 04/01/20 06/30/20 1 0.2500% 715.27
Fire Department Special Fund 04/01/20 06/30/20 1 0.2500% 18.73
General Fund 04/01/20 06/30/20 1 0.2500% 2,860.72
Library Special Fund 04/01/20 06/30/20 1 0.2500% 4.38
MCML Dispatch 04/01/20 06/30/20 1 0.2500% 161.84
Motel Occupancy Tax Fund 04/01/20 06/30/20 1 0.2500% 34.14
2017 Street Improvement Bond Fund 04/01/20 06/30/20 1 0.2500% 43.11
Parks&Recreation Special Fund 04/01/20 06/30/20 1 0.2500% 97.68
Police Narcotic Fund 04/01/20 06/30/20 1 0.2500% 2.39
Solid Waste Fund 04/01/20 06/30/20 1 0.2500% 219.82
Street Improvement Fund 04/01/20 06/30/20 1 0.2500% 790.91
SSES Fund 04/01/20 06/30/20 1 0.2500% 171.79
2018 WW Project 04/01/20 06/30/20 1 0.2500% 1,158.24
Water Plant Construction Fund 04/01/20 06/30/20 1 0.2500% 4.83
Wastewater Construction Fund 04/01/20 06/30/20 1 0.2500% 5.22
W&S Certificate Fund 04/01/20 06/30/20 1 0.2500% 50.11
Water&Sewer Fund 04/01/20 06/30/20 1 0.2500% 161.73
$ 7,122.52
Investment Report Schedule
June 30, 2020
Interest Earnings for Quarter Ended June 30, 2020
Bond Redemption Fund $ 152.69
Capital Outlay Fund 612.80
Court Technology Fund 0.95
Equipment Replacement Funds 715.27
Fire Department Special Fund 18.73
General Fund 10,149.09
Library Special Fund 58.08
Library Special Fund-Zaruk Memorial 12.28
MCML Dispatch 161.84
Motel Occupancy Tax Fund 34.14
2017 Street Improvement Bond Fund 293.39
Parks& Recreation Special Fund 97.68
Police Narcotic Account 88.74
Solid Waste Fund 2,138.94
Street Improvement Fund 830.99
SSES Fund 171.79
2018 WW Project 2,124.23
Water Plant Construction Fund 4.83
Wastewater Construction Fund 5.22
W & S Certificate Fund 50.11
Water& Sewer Fund 4,436.35
$ 22,158.14
CITY OF NEDERLAND
RESOLUTION 2020-13
A RESOLUTION BY THE CITY COUNCIL ACCEPTING
THE BUDGET FOR THE CITY OF NEDERLAND AS
PREPARED AND SUBMITTED BY THE CITY MANAGER,
SUCH BUDGET COVERING THE FISCAL YEAR
BEGINNING OCTOBER 1, 2020 AND ENDING
SEPTEMBER 30,2021.
WHEREAS, the City Manager has prepared and submitted to the City Council a budget
estimate of expenditures and revenues of all City department activities and offices for the fiscal year
beginning October 1,2020 and ending September 30,2021; and
WHEREAS, such proposed and estimated budget, after due hearing and consideration,
should be approved in its proposed or amended form;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS:
That the budget as prepared and submitted by the City Manager for the total expenditures in
each of the various departments of the City of Nederland is hereby accepted and a Public Hearing
is hereby set for 4:30 p.m.,August 24,2020,to approve this budget in the proposed or amended
form in accordance with Article VII of the City Charter.
PASSED AND APPROVED this the 10th day of August 2020.
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anese, Mayor
't�i�`) 01:z City of Nederland,Texas
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day Ferg on, City Cler
City of Nederland,Texas
APPROVED AS TO FORM ANDLEGALITY:
^ //
Jes - Bran' k ity Attorney
Cir of N-.e nd,Texas