CITY OF BRENHAM TO ABSORB $2.3 MILLION INCREASE IN LCRA WHOLESALE POWER COSTS

  

The City of Brenham’s wholesale power costs from the Lower Colorado River Authority (LCRA) will see a significant increase over the next few months as a result of Winter Storm Uri.

At Thursday’s council meeting, Chief Financial Officer Carolyn Miller said the LCRA is estimating that the city’s rates will increase by $2.3 million over what the city had budgeted to pay over the next three or four months.  February’s winter storm event increased LCRA gas fuel costs for power generation, and those costs will be invoiced to the city beginning with April’s bill.

Miller explained that the city is able to absorb the excess cost by utilizing its rate stabilization reserves, which will protect customers from this increase and any other large swings in monthly power costs.

 

Miller said the city will have approximately $400,000 remaining in the rate stabilization reserve account after paying these new power supply costs.

The council approved an ordinance amending the adopted budget for the 2020-21 Fiscal Year to reflect this change, as well as an adjustment to the Washington County hotel occupancy tax fund and tourism and marketing fund.

Last year, the city asked the county to reallocate funding that would have been used for festivals and events in Chappell Hill to create a Washington County Tourism Recovery Campaign.  The county approved the request in December and allocated $55,647 to the city, $20,000 of which went to Washington-on-the-Brazos for the 2021 Independence Day Celebration campaign.  The remaining $35,647 went toward the tourism recovery campaign.

The amendment approved Thursday recognizes the additional transfer of funds and how they were spent.

Also at Thursday’s meeting, the council:

• Heard an update on the proposed historical preservation ordinance, which is being designed to create a decorum in the community where historical preservation is considered a social and economic asset. Tourism and Marketing Director Jennifer Eckermann said after the Planning and Zoning Commission is updated on the project at its meeting May 14^th, the historic preservation committee will meet on May 25^th to complete a review of the complete draft ordinance.  A joint work session is scheduled with the Commission and the Main Street Board on June 21^st.  The city council will then hold a work session to discuss the ordinance on July 1^st before potentially adopting it at its meeting July 8^th.
• Met in executive session to discuss utility competitive matters and legal issues concerning the gas sales contract between the city and WTG Gas Marketing, Inc. No action was taken.
• Heard a work session presentation of the Fiscal Year 2020-21 first quarter financial report.
• Accepted a bid for project No. 2020-03 from Mercer Construction Company for $158,950 related to the Hickory Lane drainage improvement project. The contract period is for 90 days, and work will take place while school is out.
• Approved the second amendment to the interlocal agreement for managing entity by the Brazos Valley Council of Governments (BVCOG) for the Brazos Valley Wide Area Communications System (BVWACS). The amendment concerns the addition of Burleson County into the interlocal agreement.
• Potentially approve the second amendment to the second restatement of the interlocal agreement for the construction, acquisition, implementation, operation and maintenance of BVWACS. The amendment reflects the addition of Burleson County as a full BVWACS party.
• Approved a correction warranty deed to correct the legal description in the original instrument of conveyance related to the real property located at 809 Wilkins Street.
• Amended a resolution authorizing the submission of a grant application through the Office of the Governor’s Public Safety Office – Homeland Security Grants Division for the 2021 State Homeland Security Program for Law Enforcement Terrorism Prevention Activities (LETPA) projects.