During Tuesday morning’s meeting, the Brownwood City Council unanimously approved the purchase of 2,701 water meters of various sizes through a five-year capital lease at a total cost of $808,513.

The City of Brownwood has been purchasing water meters that are compatible with an Automated Meter Reading (AMR) system through the budget for several years. The City has 2,701 more meters to buy to convert the entire water system to AMR. Under current pricing, these will cost approximately $808,513.

With the City’s current budget allocation of $270,000 per year, it will take three years to buy them all. Badger Meters has notified the City that there will be a significant price increase effective July 1 of approximately 24%. This would increase the cost of replacing these meters by $184,511.

Rather than paying this higher cost, the City opted to use a capital lease to go ahead and buy all the remaining meters needed at once. The capital lease would be through the depository Citizens National Bank.

Quarterly payments would be $42,597 or $170,388 per year for five years. Total interest cost during the capital lease would be $43,438.

The City has $28,931 remaining in its Meter Replacement account and proposes to move $13,666 from the Sewer Department Main Line Replacement account with a year-end budget amendment.

This will fund one quarterly payment which will be made this fiscal year.

“We have the opportunity to save a substantial amount of money, we’ll spend $43,438 (in interest cost over five years) to save $184,511 (of price increases),” Parks and Recreation Director Henry Wied told city council members.

Also Tuesday, the city council approved a resolution to deny Oncor Electric Delivery Company’s Application a distribution cost recovery factor to increase distribution rates with the City.

On April 8, Oncor filed an Application for Approval to Amend its Distribution Cost Recovery Factor. In the filing, the company is seeking an increase in total distribution revenue requirement by approximately $97,826,277. The resolution denies Oncor’s application for increased distribution rates and authorizes the City to join with the Steering Committee of Cities Served by Oncor (“OCSC”) to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. The Public Utility Commission of Texas’s rules allow cities 60 days to act on this application.

Items that passed on the consent agenda include:

• An ordinance changing the zoning classification of the Fowler and Nunns Addition, Block 1, Lots 4-9 and 11-18, Part 1-3 and 19-20, Block 2, Bradford Street, Alleys also known as 1115 Brady Avenue, from R-3 Multi-family Residential District to C-U College and University District.
• Authorizing the City Manager to sign an agreement and any subsequent addendums, amendments, and acceptance of additional funds during the term of the existing grant contract on behalf of Brownwood/Brown County Health Department with Texas Department of State Health Services to continue providing Local Public Health services to the community.
• Ratification of the Brownwood Municipal Development District Board action for a Building Improvement Incentive Program (BHP) grant to Jodie Armstrong for $11,101 for a property located at 204 W. Lee Street.
• Ratification of the Brownwood Municipal Development District Board action for a Building Improvement Incentive Program (BHP) grant and infrastructure incentive to DiL Petroleum Inc. not to exceed $30,000 for a property located at 1401 Austin Avenue.
• Ratification of the Brownwood Municipal Development District Board action for a Building Improvement Incentive Program (BHP) grant to James Galloway for $7 ,651 for a property located at 303 N Fisk.
• Ratification of the Brownwood Municipal Development District Board action for a Building Improvement Incentive Program (BHP) grant and infrastructure incentive to Joe Young for $18,800 for a property located at 4230 Hwy 377 South.