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August 30, 2021 REGULAR MEETING OF THE CZTY COUNCIL OF THE CITY OF NEDERLAND 4:30 p_m_ August 30, 2021 1. MEETING The meeting was called to order at 4:30 p.m. by Mayor Albanese at the Nederland City Office Building, 207 N. 12." Street, Nederland, Texas. See attached for quorum. The following statement was posted: "PUSS IJANT TO SECTION 30_07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED HANUGUN), A PERSON LICENSED UNDER SUBCHAPTER CHAPTER 4.11, GOVERNMENT CODE (HANDGUN LICENSING LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED OPENLY." 2. INVOCATION ANO 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 Neal and seconded by Councilmember Root to approve the Consent Agenda Items a-e as presented. MOTION CARRIED_ Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. a. Minutes - August 16, 2021 regular meeting b. July 2021 E>epartmental Reports c_ Tax Assessor Collection Report - July 2021 d. Consider action authorizing the closure of Boston Avenue between Twin City Highway and Street and all intersections on Saturday, October 16r" for the NEOC's Fall Market Oay event. e. Consider action authorizing the submittal of a grant application to the Wilton and Effie Mae Hebert Foundation. 4. REGULAR AGENDA a. Allen Nation, Executive Director, Adaptive Sports for Kids, thanked the City Council for their continued support of their program. Mr. Nation also invited City Council to a fishing derby to be held on October 16, 2021 at 10:00 a.m. at Ooornsbos Park. This is a fishing tournament/derby event for special needs individuals hosted by the Cast for Kids Foundation of the Elite Bass Master Series. Fishing teams from Minutes Continued, August 30, 2021 area schools will be assisting ASK athletes and Valero will be cooking food for participants and volunteers. h. Chris Duque, City Manager, reminded the City Council of the request of Henry LaBrie, at the August 16th City Council meeting, to offer support of his planned airport development. Since no action was taken at the August 16th meeting, the direction given was to place this item on today's agenda. All City Councilmembers voiced support of the proposed airport development as planned by Henry LeBrie. Jesse Branick, City Attorney, clarified that this is a blessing of the project and not an actual agreement being made. b. A motion was made by Councilmember Neal and seconded by Councilmember Root to accept the Quarterly Investment Report from the Finance Department. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. c. A motion was made by Councilmember Root and seconded by Mayor Pro Tern Austin to approve Resolution No. 2021-27, approving the City of Nederland's Public Funds Investment Policy. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. d. A motion was made by Councilmember Root and seconded by Mayor Pro Tern Austin to amend Ordinance No. 164, setting the calendar for regular City Council meetings for September 2021. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. e. Fiscal Year 2021-2022 Budget i. The regular meeting was recessed and a Public Hearing was called to order at 4:49 p.m. by Mayor Albanese for the purpose of receiving questions and/or comments regarding the proposed City of Nederland Fiscal Year 2021-2022 budget. Chris Duque, City Manager, said the public hearing was being held for the purpose of receiving comments regarding the proposed Fiscal Year 2021-2022 Annual Budget. Interested persons will be given the opportunity to comment on the budget. A copy of the proposed budget is available at the City Clerk's office, the City's website, and the City's social media page. An ordinance adopting the Fiscal Year 2021-2022 Annual Budget will be considered at the September 16th City Council meeting. No action was necessary. There were no comments either for or against. There being no further questions and/or comments the Public Hearing was adjourned and the regular meeting was reconvened at 4:53 p.m. by Mayor Albanese. ii. The regular meeting was recessed and a Public Hearing was called to order at 4:54 p.m. by Mayor Albanese for the purpose of receiving comments regarding the Minutes Continued, August 30, 2021 proposed tax rate of$0.517206 per $100 assessed valuation (no-new revenue tax rate) for the Fiscal Year 2021-2022. Chris Duque, City Manager, stated this public hearing is being held to discuss the Fiscal Year 2021-2022 tax rate and interested persons will be given the opportunity to provide comments or ask questions. At the August 16th City Council meeting there was an unanimous vote to utilize the no-new revenue (formerly known as the effective tax) rate of$0.517206 per $100 assessed valuation for the fiscal year beginning October 1, 2021 and ending September 30, 2022. City Council will consider adopting the no-new revenue tax rate at its September 16, 2021 meeting beginning at 4:30 p.m. at Nederland City Hall Council Chamber. No action was necessary. There were no comments either for or against. There being no further questions and/or comments the Public Hearing was adjourned and the regular meeting was reconvened at 4:55 p.m. by Mayor Albanese. iii. A motion was made by Mayor Pro Tem Austin and seconded by Councilmember Neal to approve Ordinance No. 2021-13, utility rates and regulations effective October 1, 2021. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. f. A motion was made by Councilmember Root and seconded by Councilmember Sonnier to engage the RWL Group for consultant services related to the bid for windstorm insurance. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. g. A motion was made by Councilmember Root and seconded by Councilmember Neal to approve a COVID-19 Testing and Leave Policy effective August 1, 2021. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, and Root. Noes: Councilmember Sonnier. h. A motion was made by Councilmember Sonnier and seconded by Councilmember Root to approve Resolution No. 2021-28, ratifying the action of the Nederland Economic Development Corporation Board of Directors related to the purchase of 1131 Atlanta Avenue, 1135 Atlanta Avenue, 1119 Atlanta Avenue, and 147 Twin City Highway. MOTION CARRIED. Ayes: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. Noes: None. 5. COMMUNICATION City Manager's Report: a. Miscellaneous: • City offices will be closed on Monday, September 6th in observance of Labor Day. Garbage will run one day behind. Minutes Continued, August 30, 2021 • Monday, September 6th, will be the last day of pool season. • Task Force One has been activated to assist in the aftermath of Hurricane Ida. 6. AD3OURN There being no further business a motion was made by Mayor Albanese and seconded by Councilmember Neal to adjourn the meeting at 5:22 p.m. MOTION CARRIED. A es: Mayor Albanese, Councilmembers Austin, Neal, Sonnier, and Root. 4EDes: uurry N e. O Ur014 1 _4 ':� = '• Ibanese, Mayor /\ • City of Nederland, Texas % OF ]E Gay Fergus n, City Cler City of Nederland, Texas CITY OF NEDERLAND COUNCIL MEETING ATTENDANCE SHEET NAME TITLE PRESS ABSENT Don Albanese Mayor `/ Talmadge Austin Council Member-Ward I Billy Neal Council Member-Ward II v Randy Sonnier Council Member-Ward III ✓ Sylvia Root Council Member-Ward IV V Chris Duque City Manager V Gay Ferguson City Clerk Jesse Branick City Attorney V Cheryl Dowden Director of Finance V Gary Porter Police Chief \s/z Terry Morton Fire Chief V Robert Woods Director of Public Works V George Wheeler , Building Official V Victoria Klehn Librarian V Holly Guidry Human Resources Director Joni Underwood Executive Secretary V Angela Fanette Parks Director V C(4'-t/ .24-)22-4- Don Albanese, Mayor pa g1iMk ergus , City C erk August 30, 2021 Date �ggON c4. � ALLISON NATHAN GETZ ti 1 4 . 2', TERRY WUENSCHEL TAX ASSESSOR-COLLECTOR /\^,' * CHIEF DEPUTY TEXA, 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 $62,445.59, represents all taxes collected for CITY OF NEDERLAND during the month of July 2021. Allison Nathan Getz, P.C.C. JEFFERSON COUNTY COURTHOUSE•P.O.BOX 2112•BEAUMONT,TEXAS 77704-2 1 1 2 PHONE: (409)835-8516 •FAX: (409)835-8589 Don Albanese,Mayor / '�E;D . Talmadge Austin,Mayor Pro-Tern \ City of Nederland Billy Neal,Councilmember \ _ Randy Sonnier,Councilmember Sylvia Root,Councilmember 1 t j i Christopher Duque,City Manager P.O.Box 967•Nederland,Texas 77627•(409)723-1503•FAX(409)723-1550 Investment Report For the Quarter Ending June 30,2021 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 D ,City Manager , 4114 0_64 'Cheryl p owden,Director of Finance 'Programmed for Pro ress City of Nederland Summary of Account Activity Total Portfolio -All Accounts For Quarter Ending June 30, 2021 Investments at Beginning of Period (4-1-21) $ 40,607,340.26 Purchases 4,631,330.91 Maturities 900,000.00 Investments at End of Period(6-30-21) $ 44,338,671.17 1 Maturity Summary at June 30, 2021 .Less than 3 months ■3 to 9 months a9 to 12 months ■Greater than 12 months City of Nederland Summary of Account Activity Total Portfolio - All Accounts For Quarter Ending June 30,2021 Balance Balance 4/1/2021 Purchases Maturities 6/30/2021 General Fund $ 19,864,429.95 3,000,677.78 $ 22,865,107.73 Capital Outlay Fund 2,000,036.23 200,065.78 2,200,102.01 Library Fund 71,120.08 2.03 71,122.11 Library Fund-Zaruk Memorial 10,545.91 0.33 10,546.24 Equipment Replacement Fund-General 570,010.32 100,019.97 670,030.29 Equipment Replacement Fund-W&S - 270,006.34 270,006.34 2017 Street Improvement Bond Fund 266,571.09 7.98 266,579.07 Water& Sewer Fund 5,778,064.52 168.80 300,000.00 5,478,233.32 Solid Waste Fund 2,663,985.92 81.23 2,664,067.15 Street Improvement Fund 3,352,845.73 500,112.49 100,000.00 3,752,958.22 Police Narcotics Fund 100,756.70 3.19 100,759.89 2018 WW Project 4,843,029.52 138.16 500,000.00 4,343,167.68 2020 Water Tower Project 900,016.32 27.42 900,043.74 SSES Project Fund - 560,013.82 560,013.82 Bond Redemption Fund 185,927.97 5.59 185,933.56 $ 40,607,340.26 $ 4,631,330.91 $ 900,000.00 $ 44,338,671.17 Fund Allocation at June 30, 2021 Equipment Replacement Equipment Replacement Fund-W&S Fund-General 0.61% Capital Outlay Fund Street Improvement Fund 1.51% 4.96% 8.46% Police Narcotics Fund SSES Project Fund 0.23% Solid Waste Fund 1.26% 6.01% Bond Redemption Fund 0.42% General Fund 51.57% Water&Sewer Fund_ 12.36% Library Fund-Zaruk Memorial 0.02% 2018 WW Project 2017 Street Improvement 9.80% Bond Fund Library Fund 0.60% 0.16% Investment Report Schedule Investments for the Quarter ended June 30,2021 INVESTMENT POOL- TEXPOOL Average Days to Interest Interest Period Held Maturity Rate Market Principal Earned Book Value General Fund 04/01/21 06/30/21 1 0.0123% $ 22,864,429.95 677.78 $22,865,107.73 Capital Outlay Fund 04/01/21 06/30/21 1 0.0123% 2,200,036.23 65.78 $ 2,200,102.01 Water&Sewer 04/01/21 06/30/21 1 0.0123% 5,478,064.52 168.80 5,478,233.32 Bond Redemption Fund 04/01/21 06/30/21 1 0.0123% 185,927.97 5.59 185,933.56 Equipment Replacement Fund-General 04/01/21 06/30/21 1 0.0123% 670,010.32 19.97 670,030.29 Equipment Replacement Fund-W&S 04/01/21 06/30/21 1 0.0123% 270,000.00 6.34 270,006.34 Library Special 04/01/21 06/30/21 1 0.0123% 71,120.08 2.03 71,122.11 Library Special-Zaruk Memorial 04/01/21 06/30/21 1 0.0123% 10,545.91 0.33 10,546.24 2017 Street Improvement Bond Fund 04/01/21 06/30/21 1 0.0123% 266,571.09 7.98 266,579.07 Solid Waste Fund 04/01/21 06/30/21 1 0.0123% 2,663,985.92 81.23 2,664,067.15 Street Improvement Fund 04/01/21 06/30/21 1 0.0123% 3,752,845.73 112.49 3,752,958.22 2018 WW Project 04/01/21 06/30/21 1 0.0123% 4,343,029.52 138.16 4,343,167.68 2020 Water Tower Project 04/01/21 06/30/21 1 0.0123% 900,016.32 27.42 900,043.74 SSES Project Fund 04/01/21 06/30/21 1 0.0123% 560,000.00 13.82 560,013.82 Police Narcotic Fund 04/01/21 06/30/21 1 0.0123% 100,756.70 3.19 100,759.89 Totals for TEXPOOL Investments $ 44,337,340.26 $ 1,330.91 $44,338,671.17 *Texpool is rated AAAm by Standard&Poor's,which is the highest rating a local government investment pool can achieve Investment Report Schedule June 30, 2021 Interest Earnings for Quarter Ended June 30, 2021 Bond Redemption Fund $ 5.59 Capital Outlay Fund 65.78 Equipment Replacement Fund-General 19.97 Equipment Replacement Fund-W & S 6.34 General Fund 677.78 Library Special Fund 2.03 Library Special Fund-Zaruk Memorial 0.33 2017 Street Improvement Bond Fund 7.98 Police Narcotic Account 3.19 Solid Waste Fund 81.23 Street Improvement Fund 112.49 2018 WW Project 138.16 2020 Water Tower Project 27.42 SSES Project Fund 13.82 Water& Sewer Fund 168.80 $ 1,330.91 CITY OF NEDERLAND RESOLUTION NO. 2021-27 A RESOLUTION OF THE CITY OF NEDERLAND, TEXAS, REVIEWING AND APPROVING THE CITY'S PUBLIC FUNDS INVESTMENT POLICY AS PRESENTED WHEREAS, Section 2256.005(e) of the Texas Government Code requires the governing body of an investing entity to adopt a written investment policy regarding the investment of its funds and funds under its control and to review said written investment policy on an annual basis; and, WHEREAS, on November 27, 1995 by Resolution 1995-13, the City Council approved and adopted a written Investment Policy for the City regarding investment of public funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS: THAT the City of Nederland's Investment Policy, substantially in the form attached hereto as"Exhibit A,"has been reviewed and is hereby adopted without modification. PASSED AND APPROVED this the 30th day of August 2021. 604( iQ��� �•ice = Don Albanese, Mayor Tr. ' 0`�d n�i�, Cit of Nederland, Texas • Fer uPoi4aowevoA-- Gayn City 9 City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: Jesse B : ''k, City Attorney ty of - erland, Texas ♦ s "Exhibit A" CITY OF NEDERLAND INVESTMENT POLICY Amended 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. YIELD The City's cash management portfolio shall be designed with the objective of 2 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 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 3 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 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. 4 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. 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 5 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 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. 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 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. 6 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% b. U.S. Agencies & Instrumentalities 100% c. States, Counties, Cities 86 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 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; 8 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. introductory material, and a detailed Statistical Section. Asked: The price at which securities are offered. Coupon: (a) The annual rate of interest that a bond issuer promises to pay the Bid: The price offered for securities. bondholder on the bond's face value. (b) A certificate attached to a bond Broker: A broker brings buyers and evidencing interest due on a payment sellers together for a commission paid date. by the initiator of the transaction or by both sides; he does not position. In the Dealer: A dealer, as opposed to a money market, brokers are active in broker, acts as a principal in all markets in which banks buy and sell transactions, buying and selling for his money and in interdealer markets. own account. Certificate of Deposit (CD): A time Debenture: A bond secured only by the deposit with a specific maturity general credit of the issuer. evidenced by a certificate. Large- denomination CD's are typically Delivery versus payment: There are two negotiable. methods of delivery of securities: delivery versus payment and delivery Collateral: Securities, evidence of versus receipt (also called free). deposit or other property which a Delivery versus payment is delivery of borrower pledges to secure repayment securities with an exchange of money of a loan. Also refers to securities for the securities. Delivery versus pledged by a bank to secure deposits of receipt is delivery of securities with an public monies. exchange of a signed receipt for the securities. Comprehensive Annual Financial Report (CAFR): The official annual Discount: The difference between the report for the City of Nederland. It cost price of a security and its value at includes five combined statements and maturity when quoted at lower than basic financial statements for each face value. A security selling below individual fund and account group original offering price shortly after sale prepared in conformity with GAAP. It also is considered to be at a discount. also includes supporting schedules Discount Securities: Non-interest- necessary to demonstrate compliance bearing money market instruments that with finance-related legal and are issued at a discount and redeemed contractual provisions, extensive at maturity for full face value, e.g., U. S. 10 • Treasury bills. Presidents. The President of the New York Federal Reserve Bank is a Diversification: Dividing investment permanent member while the other funds among a variety of securities Presidents serve on a rotating basis. offering independent returns. The Committee periodically meets to set Federal Reserve guidelines regarding Federal Credit Agencies: Agencies of the purchases and sales of Government Federal government set up to supply Securities in the open-market as a credit to various classes of institutions means of influencing the volume of and individuals, e.g., S 8ti L's, small bank credit and money. business firms, students, farmers, farm cooperatives, and exporters. Federal Reserve System: The central bank of the United States created by Federal Deposit Insurance Corporation Congress and consisting of a seven (7) (FDIC): A federal agency that insures member Board of Governors in bank deposits, currently up to Washington, D. C., twelve (12) regional $100,000 per deposit. banks and approximately 5,700 commercial banks that are members of Federal National Mortgage Association the system. (FNMA): FNMA, like GNMA, was chartered under the Federal National Government National Mortgage Mortgage Association Act in 1938. Association (GNMA or Ginnie Mae): FNMA is a federal corporation working Securities guaranteed by GNMA and under the auspices of the Department issued by mortgage bankers, of Housing and Urban Development, commercial banks, savings and loan H.U.D. It is the largest single provider associations, and other institutions. of residential mortgage funds in the Security holder is protected by full faith United States. Fannie Mae, as the and credit of the U. S. Government. corporation is called, is a private Ginnie Mae securities are backed by stockholder-owned corporation. The FHA, VA, or FMHM mortgages. corporation's purchases include a variety of adjustable mortgages and Liquidity: A liquid asset is one that can second loans in addition to fixed-rate be converted easily and rapidly into mortgages. FNMA's securities are also cash without a substantial loss of value. highly liquid and are widely accepted. In the money market, a security is said FNMA assumes and guarantees that all to be liquid if the spread between bid security holders will receive timely and asked prices is narrow and payment of principal and interest. reasonable size can be done at those quotes. Federal Open Market Committee (FOMC): Consists of seven (7) members Local Government Investment Pool of the Federal Reserve Board and five (5) (LGIP): The aggregate of all funds from of the twelve (12) Federal Reserve Bank political subdivisions that are placed in 11 the custody of the State Treasurer for the New York Federal Reserve Bank as investment and reinvestment. directed by the FOMC in order to influence the volume of money and Market Value: The price at which a credit in the economy. Purchases inject security is trading and could reserves into the bank system and presumably be purchased or sold. stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Master Repurchase Agreement: To Reserve's most important and most protect investors, many public investors flexible monetary policy tool. will request that repurchase agreements be preceded by a master repurchase Portfolio: Collection of securities held by agreement between the investor and the an investor. financial institution or dealer. The master agreement should define the Primary Dealer: A group of government nature of the transaction, identify the securities dealers that submit daily relationship between the parties, reports of market activity and positions establish normal practices regarding and monthly financial statements to the ownership and custody of the collateral Federal Reserve Bank of New York and securities during the term of the are subject to its informal oversight. investment, provide remedies in the Primary dealers include Securities and case of default by either party and Exchange Commission (SEC) registered clarify issues of ownership. The master securities broker-dealers, banks, and a repurchase agreement protects the few unregulated firms. investor by eliminating the uncertainty of ownership and hence, allowing Prudent Person Rule: An investment investors to liquidate collateral if a bank standard. Investments shall be made or dealer defaults during the term of the with judgment and care, under agreement. circumstances then prevailing, which persons of prudence, discretion and Maturity: The date upon which the intelligence exercise in the management principal or stated value of an of their own affairs, not for speculation, investment becomes due and payable. but for investment, considering the probable safety of their capital as well Money Market: The market in which as the probable income to be derived. short-term debt instruments (bill, commercial paper, bankers' Qualified Public Depositories: A acceptances, etc.) are issued and financial institution which does not traded. claim exemption from the payment of any sales or compensating use or ad Open Market Operations: Purchases valorem taxes under the laws of this and sales of government and certain state, which has segregated for the other saturates in the open market by benefit of the commission eligible 12 collateral having a value of not less than Yield: The rate of annual income its maximum liability, and which has returns on an investment, expressed as been approved by the Public Deposit a percentage. (A) Income Yield is Protection Commission to hold public obtained by dividing the current dollar deposits. income by the current market price of the security. (B) Net Yield or Yield to Rate of Return: The yield obtainable on maturity is the current income yield a security based on its purchase price minus any premium above par or plus or its current market price. This may any discount from par in purchase be the amortized yield to maturity on a price, with the adjustment spread over bond or the current income return. the period form the date of purchase to the date of maturity of the bond. Safekeeping: A service to customers rendered by banks for a fee whereby 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 86 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. Treasury to finance the national debt. Most bills are issued to mature in three (3) months, six (6) months, or one (1) year. Treasury Bond: Long-term U. S. Treasury securities having initial maturities of more than ten (10) years. Treasury Notes: Intermediate term coupon bearing U. S. Treasury securities having initial maturities from one (1) to ten (10) years. 13 AN AMENDMENT TO ORDINANCE NO. 164 AN ORDINANCE SETTING REGULAR DATES FOR COUNCIL MEETINGS TO BE HELD IN THE MONTH OF SEPTEMBER 2021. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS: THAT the following dates will be and are hereby regular meeting dates for the meetings of the City Council of the City of Nederland, Texas. All of the below regular meeting shall begin at 4:30 p.m. on each of the following dates: September 16, 2021 ANY AND ALL ordinances of the City of Nederland, Texas which conflict with any provisions of this amendment are hereby expressly repealed. PASSED AND APPROVED by the City Council at a regular meeting this 30TH day of AUGUST, 2021. i I '.O_ on Albanese,Mayor ; �� City of Nederland,Texas•o OFF Gay Fergus°M,City Clerk City of Nederland,Texas APPROVED AS TO FORM AND LEGALITY: Jess: Branic , • y Attorney City .f N-•-rl nd,Texas ORDINANCE NO. 2021-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEDERLAND, TEXAS ESTABLISHING WATER AND SEWER RATES, WATER METER DEPOSITS, WATER AND SEWER CONNECTION FEES, WATER AND SEWER MAINTENANCE FEES, TRASH REMOVAL, AND GARBAGE RATES, AND PROVIDING FOR THE ADDITION OF STATE MANDATED SALES TAX TO THE GARBAGE POTION OF THE RATE, INSIDE AND OUTSIDE THE CITY OF NEDERLAND, TEXAS, AND FURTHER PROVIDING FOR INTEREST PENALTIES, RE- CONNECTION CHARGES, TRANSFER FEES, AND RETURNED CHECK FEES AND REPEALING ORDINANCE NO. 2020-21 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,TEXAS: WHEREAS, a revision should be made in the rates for utility services now being charged by the City of Nederland, Texas, inside the city limits and outside the city limits. SECTION 1. Repeal of Previous Ordinances and Regulations. 1. All other ordinances and/or regulations governing City of Nederland (CITY) water and sewer services in conflict with this ordinance are hereby repealed when this ordinance takes effect, provided, however,the repeal of prior ordinances does not waive, excuse, or vacate any balances due for water services provided hereunder and the CITY may collect such balance due. SECTION 2. Water and Sewer Systems. 1. The water system and sewer system are public utilities operated and maintained by the CITY. The systems shall be operated in accordance with ordinances and policies adopted by the CITY, state law, and/or Federal law. Subject to such requirements, the City Manager may make such reasonable regulations as to govern the water and sewer systems to ensure their continued operation. 2. For the purpose of this ordinance, the terms"water service"and "utility service" shall be inclusive of water service, sewer service, and garbage/trash services as provided by the CITY. 3. For the purpose of this ordinance, the term "customer" shall mean the person responsible for payment and/or all persons acting for him/her or by his/her direction. • SECTION 3. Application for Water Service. 1. Any person and/or business desiring to obtain water service from the CITY shall make application on a form supplied by the CITY. The application shall include: a. Name of the individual to be responsible for the payment of utility service b. The social security number of the individual responsible for payment c. The applicant's driver's license number d. The applicant's employer e. The address to be served f. The address, if different from the service address, to which bills are to be sent g. The applicant's home telephone number and work phone number h. The signature of the individual responsible for payment i. The applicant's proof of identification j. A rental agreement, if applicable 2. The person responsible for the payment of utility service shall agree that he/she will abide by all ordinances, rules, policies, and/or regulations governing water and sewer service provided by the CITY. SECTION 4. Installation of Service. 1. No private service lines shall be connected or tapped to any CITY water line unless a meter is installed by the CITY at that connection. 2. No private service lines shall be connected to any CITY sewer line unless the connection/tap has been made and/or approved by the CITY. 3. Not more than one (1) premise may be connected to any 1 water and/or sewer tap. Exceptions may, however, be granted to this stipulation for situations involving a master meter to serve apartment complexes, mobile home parks, etc. 4. No person shall make or permit to be made any subsidiary connection of another's premises with his/her water or sewer service. 5. If approved by the CITY, additional water services may be provided to residences and/or businesses for water to be utilized for purposes such as outside watering, swimming pools, etc. In this situation, water provided by such separate service will not be discharged through the CITY's sewer system. SECTION 5. Water Connection/Taps and Sewer Connection/Taps. A. GENERAL 1. The CITY reserves the right to tap existing CITY water lines, set water meters, and require use of CITY taps and meters and reserves the right to tap existing CITY sewer lines. 2. Any individual or business desiring a water tap and/or a sewer tap shall make said request to the CITY. If said request, in the CITY's opinion, is beneficial to the CITY and/or does not endanger the existing water line (water system) and/or the sewer line (sewer collection system), the CITY shall provide all materials, labor, and equipment to tap the existing water line and/or existing sewer line. 3. The CITY shall make the final determination as to the location of the water and/or sewer tap. 4. If the street excavation is required, the following fees will be assessed in addition to the fees listed below: Additional Cost for Street Excavations Excavation Length Asphalt Concrete 5'or less $ 730 $1,650 10'or less $1,000 $2,200 15'or less $1,275 $2,400 20'or less $1,525 $3,425 25'or less $1,800 $3,650 30'or less $2,075 $4,000 31'or less Cost will be calculated Cost will be calculated B. WATER TAPS 1. The water connection fees are as follows: Inside City Outside City (No Street Excavation) (No Street Excavation) 3/4"Water Tap $ 500 $ 675 1"Water Tap $ 600 $ 800 1 1/2"Water Tap $1,150 $1,400 2"Water Tap $1,450 $1,750 2"Compound $2,500 $2,800 Over 2"Water Tap Cost Cost x 1.5 2. In return for payment of such fee, the CITY shall tap the existing water line and install a water meter. The fee does not include the cost of the meter deposit as provided in Section 6. C. SEWER TAPS 1. The sewer connection fees are as follows: Inside City Outside City (No Street Excavation) (No Street Excavation) 4"up to 5'deep $200 $300 4"from 5'to 10'deep $450 $550 6"up to 5'deep $300 $400 6"from 5'to 10'deep $550 $650 8"up to 5'deep $400 $500 8"from 5'to 10'deep $650 $750 More than 10'deep Actual Cost Actual Cost D. NEW SUBDIVISION WATER AND SEWER TAP FEES (INSTALLED BY DEVELOPER) Tap Size Inside City Outside City %"Water $250 N/A 1"Water $350 N/A 4"Sewer $300 N/A SECTION 6. Water Meter and Garbage Container Deposits. 1. In order to establish water, sewer, and garbage service, an applicant for said services shall be required to pay a deposit to the CITY in accordance with the following schedule (excludes residential rental property in renter/tenant's name): Inside City Outside City 3/"and Smaller Water Meter $110 $110 1"Water Meter $160 $160 1 1/2"Water Meter $210 $210 2"and Larger Water Meter $310 $310 2. Residential Rental Property Deposit: In order to establish water, sewer, and garbage service, an applicant, who is not the property owner, for said services shall be required to pay a deposit to the CITY in accordance with the following schedule (excludes apartment complexes and duplexes without individual water meters for each unit): Inside City Outside City 3/4"and Smaller Water Meter $225 $225 1"Water Meter $225 $225 3. In order to be provided with an additional garbage container, which shall be limited to one additional garbage container per residential account(two total) and three additional per commercial account(four total),an applicant shall be required to pay an additional deposit of $75.00 per additional container. No deposit will be required if the customer has paid his bill in full by the due date specified on each individual bill for a period of twelve (12) consecutive months immediately prior to the request for an additional garbage container. SECTION 7. Application of Deposit. 1. Upon the termination of water, at the request of the customer, the deposit or any portion of the deposit remaining shall be returned to the customer when all charges have been paid, as well as trash has been cleared from the property in accordance with this ordinance and the garbage cans have been collected. 2. Current customer, who have service in their name, who continue to maintain utility service, and who have each month paid their bill in full and by the due date specified on each individual bill for a period of 12 consecutive months shall, at their request, be refunded the full amount of their deposit. 3. Tenants, who rent residential property from a property owner that elected to not have service in their name, shall be refunded the full amount of their deposit if they continue to maintain utility service and pay their bill in full and by the due date specified on each individual bill for a period of 48 consecutive months. SECTION 8. Previous Service — Outstanding Balance. Any applicant requesting water service from the CITY who currently has or previously had CITY water service and has, at the time of application, an outstanding balance on his/her previous water service must pay the outstanding balance in full in addition to the meter deposit prior to receiving new service. SECTION 9. Water Rates. The following monthly rates shall be charged for water service: Inside City Outside City First 2,000 gallons(minimum)* $10.50 $15.05 Each additional 1,000 gallons**(up to 50,000 gallons) $ 3.35 $ 5.10 Each additional 1,000 gallons above 50,000 gallons $ 3.36 $ 5.11 Water Line Maintenance per 1,000 gallons(above minimum) $ 0.34 $ 0.34 * Where water service is provided to multiple units served by one meter,the minimum rate for the first 2,000 gallons will be charged for each unit based upon ninety percent(90%)occupancy of the total number of units. ** Except as required by provisions of outside CITY contracts. The CITY may permit contractors engaged by the CITY for CITY construction projects to utilize potable (bulk water) with the permission of the Public Works Director and the City Manager. Otherwise, no bulk water sales are permitted. SECTION 10. Sewer Rates. The following monthly rates shall be charged for sewer service: Inside City Outside City First 2,000 gallons(minimum)* $10.90 $16.70 Each additional 1,000 gallons**(up to 50,000 gallons) $ 5.50 $ 6.95 Each additional 1,000 gallons above 50,000 gallons $ 5.71 $ 7.16 Sewer Line Maintenance per 1,000 gallons(above minimum) $ 0.34 $ 0.34 * Where water service is provided to multiple units served by one meter,the minimum rate for the first 2,000 gallons will be charged for each unit based upon ninety percent(90%)occupancy of the total number of units. ** Except as required by provisions of outside CITY contracts. SECTION 11. Garbage Rates. RESIDENTIAL ACCOUNTS All residences inside the CITY limits shall be required to use the CITY garbage service in accordance with the following schedule: Inside City Rate(per month) $20.25+sales tax* Additional Container** $ 8.65+sales tax* COMMERCIAL ACCOUNTS Business inside the CITY limits may elect to utilize the CITY garbage service in accordance with the following schedule: Inside City Rate(per month) $20.25+sales tax* Additional Container** $10.00+sales tax* No more than 3 additional containers Businesses inside the CITY limits may elect to utilize the CITY garbage service and not receive twice a month trash service in accordance with the following schedule: Inside City Rate(per month) $13.25+sales tax* Additional Container** $10.00+sales tax* No more than 3 additional containers * Sales tax shall be in amount required by law ** Customers requesting additional containers must have sufficient space on their residential or commercial lot to accommodate the necessary spacing. The City Manager or his designee has the authority to decide whether a customer has sufficient space,and their decision is final. The Public Works Director may require any residential or commercial generator who regularly exceeds the provided garbage can load and/or weight capacity within a collection period, or any customer who regularly generates refuse requiring special handling to use a private commercial disposal system or to make other approved disposal arrangements. Garbage bags will be available at City Hall for purchase by customers. The fee for garbage bags if$7.00 per roll of bags. SECTION 12. Billing and Penalty. 1. All charges on utility service bills shall be due and payable to the CITY fifteen (15) days after the date the bill is mailed to the person responsible for payment. 2. If payment is not received by the sixteenth (16th) day, a ten percent (10%) penalty shall be assessed. 3. Notwithstanding the provisions of 1 and 2 above, in accordance with Section 182.002 of the Texas Utilities Code, the 10% penalty shall not be applied to persons ages 60 or older until the 25th day after the date on which the bill was issued, provided that such person has made a request for delay, presented reasonable proof of their age, and is a residential customer who has occupied, and shall continue to occupy, the entire premises for which a delay is requested. 4. Should the 15th day fall upon a weekend, holiday, or any date that the City Hall building is closed, a grace period of two (2) business days shall be granted. SECTION 13. Delinauency — Termination of Service. 1. If full payment is not received by the CITY by the next date at which the water meter is read, a subsequent utility bill shall be mailed for the current reading plus the amount owed on the previous billing including the 10% penalty. 2. If full payment is not received on the date on which the subsequent utility bill is due, all utility service shall be disconnected. A final notice via telephone call or mail shall be sent to the customer on the Thursday following the due date indicating that services shall be disconnected on the Wednesday immediately following the issuance of such notice. If payment in full is not received by 5PM on the due date, then a cut-off work order will be issued. Once the cut-off work order is issued, a reconnection fee and any additional deposit shall be due in addition to the previous balance. SECTION 14. Re-connection Charges. 1. Should utility service be discontinued due to non-payment of a utility bill, all funds due to the CITY, in addition to a re-connection fee shall be paid prior to reinstatement of utility service. The re-connection fee shall be $30.00 if reinstatement of utility service is requested during working hours (8:00AM to 4:30PM, Mondays through Friday). A customer will be required to keep a minimum $210 deposit on file or a $325 deposit for residential rental property accounts in addition to the account balance and reconnection fees before utility service is reconnected. Any additional deposit required may be billed in two installments. 2. Should service be discontinued, the CITY shall install a lock on the water meter. Should the customer or any person tamper with the lock and damage it, the following fees shall be assessed: 1st offense - $100 and 2nd and/or subsequent offense - $250. This fee shall be paid, in addition to all other charges, prior to reinstatement of service. 3. Should any person turn on water service, after the CITY disconnected the service for non-payment, such action shall be considered a criminal offense. 4. Should a customer be repeatedly disconnected due to non-payment,the CITY may require the following: a) Payment for the delinquent bill in the form of cash, money order, and/or cashier's check. b) The CITY retains the option of requiring payment for utility bills by cash, money order, and/or cashier's check for all future utility billings. 5. If payment is made with a check returned insufficient funds due to the issuance of a disconnection notice, water will be immediately disconnected. SECTION 15. Transfer Fee. A transfer fee, in the amount of $15.00 shall be assessed for transferring service within the CITY's utility service system. The final bill of the transferred account plus $15.00 will be added to the customer's new account. The transferred account may remain active no longer than fourteen days. SECTION 16. Returned Check Fees. 1. Any customer who pays his/her utility bill with a check which is returned from the financial institution due to, but not limited to, insufficient funds and/or closed account shall be assessed a $30.00 fee. 2. The CITY may, at the request of the costumer, re-run the check. If the check is accepted,the fee shall be waived. However, if the check continues to be returned, the CITY shall require that the bill be paid by cash, money order, cashier's check, or credit card. 3. The CITY retains the right to prosecute for returned checks in accordance with the Texas Penal Code. 4. If a check is returned unpaid due to the financial institution error, the financial institution shall submit written verification of such error. In this situation,the fee shall be waived. 5. Should a customer have two (2) or more checks returned due to insufficient funds and/or closed account within a period consisting of 12 consecutive months, the CITY shall no longer accept checks from that individual for a period of 24 months. During the 24-month period, all payments shall subsequently be made in the form of cash, money order, cashier's check, and/or credit card. SECTION 17. Temporary Service. 1. Should a customer request temporary service, no deposit shall be required, unless the customer is in arrears on other accounts. 2. The duration of such temporary service shall not exceed 15 calendar days. The customer shall be billed for actual usage. 3. Should the account become delinquent,the customer shall not be allowed to begin any new service until all delinquent monies are paid. SECTION 18. Failure to Receive a Bill. 1. All bills for utility service shall be rendered monthly in accordance with a schedule established by the CITY. The City shall exercise care in the delivery of utility bills but is NOT responsible for the service provided by the United States Postal Service. 2. Failure to receive a bill shall not relieve the customer for payment of service received within the prescribed period nor exempt him/her from the responsibility imposed for delinquent accounts. SECTION 19. Deferred Payments. 1. The City Manager and/or his/her designee shall be empowered to develop payment schedules should a customer be unable to pay his/her bill. The City Manager may not develop payment schedules should a customer be unable to pay his/her bill if the outstanding balance is greater than $500.00 2. Should a customer not be able to pay his/her account by the due date, he/she must contact the CITY prior to the due date and request that a payment schedule be developed. 3. Should a customer not contact the CITY prior to the issuance of a disconnection notice, he/she shall be required to pay the entire amount of the bill in order to retain water service. 4. The customer and the CITY may develop a payment schedule which shall be documented on a form supplied by the CITY. This form shall include, but not be limited to,the following information: dates of future payments, amounts of future payments, and signature of the customer. Should the customer subsequently not comply with the payment schedule, water service shall be disconnected and shall not be reinstated until the full amount owned on the bill is paid. 5. In no shall the CITY abdicate the right to refuse a payment schedule as presented by the customer. 6. If a customer fails to comply with the provisions of their payment schedule, he/she shall not be permitted to establish additional payment schedules until full payment has been received on the initial/existing payment schedules. SECTION 20. Adjustments. 1. The City Manager and/or his/her designee shall be empowered to make adjustments on utility bills when an investigation reveals that the meter charges are excessive in comparison to previous billings due to inadvertent misfortune or inadvertent damage to a customer's pipes and plumbing. The customer must provide an invoice or receipt as proof that the leak has been repaired before issuance of adjustment. 2. Any adjustments made to the utility bill shall be made to the cost for sewer service, including the base rate and maintenance fee. An adjustment will be made based upon an average of six (6) monthly bills during the previous six-month period. 3. In the event that the water usage during the billing period exceeds 50,000 gallons, the cost of water service shall be adjusted by one-third (1/3) of the excess water usage based upon an average of 6 monthly bills during the previous six-month period. Such an adjustment, however, shall only be made for those customers whose monthly bill averages less than 50,000 gallons based upon an average of the preceding 12 months. The customer must provide an invoice or receipt as proof that the leak has been repaired before issuance of any adjustment to the cost of water. 4. In the event that water usage during the billing period exceeded 95,000 gallons and was the result of a tree root damaging the water meter or delaying the repair as determined by City Council action, the cost of water shall be adjusted by three quarters (3/4) of the excess water usage based upon an average of 6 monthly bills during the previous 6-month period; however, the adjusted bill shall not be less than $100. Such an adjustment, however, shall only be made for those customers whose monthly bill averages less than 50,000 gallons based upon an • average of the preceding 12 months. Any adjustment to the cost of water shall only be made if the customer provides verification that a leak existed and submits an invoice or receipt as proof that the leak has been repaired. 5. In no case, shall a sewer adjustment be granted if the CITY notified the customer of a potential water leak on his/her property. 6. Sewer adjustments will be limited to one per 12-month period. Sewer adjustments shall not exceed $2,500 unless approved by the City Council. 7. A sewer adjustment will be granted the first time a swimming pool is filled upon construction. To be eligible for a "pool adjustment," a customer, who resides within the city limits must have a Building Permit issued by the City of Nederland Inspections Department. To be eligible for a "pool adjustment,"a customer who resides outside the city limits must submit a copy of the contract with the pool company to the Utility Billing Supervisor and have filled the pool within the last billing cycle. 8. Any suspected billing errors should be reported to the Billing & Collections Department when the billing error is discovered. If a billing error did occur, an adjustment will be calculated to correct the error. However, adjustments will be limited to the previous twelve months billing and require the City. Manager's approval. SECTION 21. Meter Tampering. 1. It is unlawful for any person to turn on water to any premises from the CITY water system without first obtaining approval from the CITY. 2. It is unlawful for any person to connect water service to a premise after service has been terminated by the CITY. 3. It is unlawful to interfere with, disturb, or damage in any manner or form any water meters, locks, cutoff valves, or other appliances of the CITY. The head of household or property owner involved shall be held responsible for the violation of this section. 4. Tampering fees of up to five hundred dollars ($500.00) shall be assessed where a meter has been interfered with, disturbed, or damaged. SECTION 22. Trash Removal Rates. 1. Trash blocking drainage — a service fee of$50.00 to $200.00 will be charged to the owner of the property when it becomes necessary to clear a ditch of trash and/or debris during, before,and/or after a rainstorm to prevent possible flooding. The fee shall be based upon the amount of work performed by the CITY. The CITY shall document the work and add the service fee on the customer's next bill; the next month bill will be customer's notice. 2. Miscellaneous trash and/or debris, defined as green waste and/or any other bulky items not able to be placed into the standard CITY garbage container, from empty (undeveloped or vacant) property must be hauled off by the owner or developer at their expense. Violations of said policy will be forwarded to the CITY' Code Enforcement Department for compliance. The CITY shall not reconnect services until said violation has been resolved by the Code Enforcement Officer and/or Municipal Court. 3. The CITY will provide collection of trash to residential and commercial customers receiving garbage service twice per month. The amount of trash removed shall be limited to four (4) cubic yards per collection. Trash piles greater than the prescribed 4 cubic yards must be removed by the property owner within ten (10) calendar days or violations may be forwarded to the City's Code Enforcement Department for compliance. If the CITY' Code Enforcement Officer tags the pile in violation, the CITY solid waste service shall not pick up that trash. The CITY shall not provide this service to vacant properties or those properties without an active account. Green waste and trash will not be removed if it is co-mingled. 4. Should an owner of property or customer within the CITY request the removal of the trash that exceeded the prescribed 4 cubic yards per collection, the CITY may do so at a cost equivalent to the actual costs of personnel, equipment, and disposal fees but no less than $20.00 per cubic yard per collection for quantities greater than 4 cubic yards. Payment must be made to the CITY prior to the trash being collected. The amount of trash to be collected shall not exceed 4 cubic yards at any one time. Such service shall be provided at the discretion of the CITY dependent upon such factors including, but not limited to, existing workload, and scheduling. This provision shall not apply to the accumulation of trash due to work performed by contractors and/or individuals/companies hired by the property owners. The placement of the trash in quantities greater than 4 cubic yards shall constitute the owner or customer's request for said service and acceptance of the prescribed fees. SECTION 23. Disaster. In the event of a declared disaster, such as hurricane, tornado, flood, ice storm, pandemic, etc. significantly impacting the community,the City Manager is authorized to waive fees, penalties, etc. for up to 30 days from the date of the disaster. The waiver of fees, penalties, etc. shall not exceed $150.00 for residential customers or $250.00 for commercial or industrial customers for each request or incident. The City Manager is authorized to waive disconnection of utility services for non-payment for a period of NO MORE THAN 30 DAYS from the date of the disaster. SECTION 24. Validation. If any section, paragraph, subdivision, clause, phrase, or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof other than the part so decided to be invalid or unconstitutional. This ordinance shall take effect October 1, 2021. PASSED AND APPROVED by the City Council of the City of Nederland, Texas at a regular meeting this the 30T" day of AUGUST, 2021. \\(NEDF cif 1:14,4 i3,69t1 �, � ��PA c Don Albanese, Mayor %23, � City of Nederland, Texas ATfES F G y Fergu on, City Cle City of Nederland, Texas APPROVED AS TO FORM AND LEGALITY: i 21l� Jes • Br- ck, City Attorney Cit, of ,.ederland,Texas