The Brownwood City Council on Tuesday approved making a one-time payment of $269,238.54 to ERCOT for ancillary service charges. The impact of the February winter storm resulted in high ancillary services costs that are billed to the City under its agreement with Gexa Energy.
The council was presented three options of payment:
- Pay the entire amount by June 4, 2021.
- Pay the charges monthly beginning with the invoice for June 2021 usage and continuing through December 2022. The monthly additional charge would be $14,493.63. This amount over the term would cost the city a total of $275,389.42, which includes interest in the amount of $6,150.88.
- Pay the charges monthly beginning with the invoice for June 2021 usage and continuing through December 2028. The monthly additional charge would be $4,049.08 and would cost the city a total of $368,466.28, which includes interest in the amount of $99,227.74.
The City currently possesses 100 days of operating reserves and to pay the bill in full now would reduce reserves by 2.7 days.
There is also a possibility some or all of that money could be reimbursed to the City, which is anticipating Coronavirus Relief Funds by the end of July. The City expects to add approximately $512,615 to its reserves from those funds.
In other business Tuesday, the city council approved a resolution declaring old City vehicles, office furniture and equipment as surplus property and authorizing staff to sell, scrap or donate to a nonprofit. Proceeds from the sale of the surplus property shall be returned to each departmental budget.
Passing on the consent agenda was the ratification of the Brownwood Municipal Development District Board action to approve a Building Improvement Incentive Program (BIIP) grant and infrastructure incentive to Harper’s Food Store, LLC not to exceed $30,723 for a property located at 508B N. Center.
The city council also approved the appointments of Walter Allen and Melody Nowowiejski as new members of the Brownwood Public Library Board of Directors.
Lisa Dick of the Brownwood/Brown County Health Department presented the COVID report. The city council earlier this year approved almost $68,000 to go toward COVID
care but the actual costs are about $45,000. City Manager Emily Crawford recommended the City reimburse itself.