2001-10-22 Regular Meeting and Public Hearings

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e e City Council Minutes 10-22-01- Page 4 RESTAURANT WHERE WINE AND/OR BEER FOR CONSUMPTION ON THE PREMISES MAY BE SOLD; FURTHER PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Motion was made by Councilperson Clarke to approve Ordinances 1 OOO-l-J as presented by Ms Gillett. Second by Council person Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None 11. Council considered approving an ordinance regarding a resolution committing to participate with H-GAC Energy Purchasing Corporation (Res.200l-l4). City Manager Robert Herrera presented summary and recommendation and answered Council's questions. Following is partial transcription from the recording of the Council Meeting: City Manager Robert Hererra thanked the Mayor and Council. As you may recall, May 8, the Council authorized the City of La Porte to participate and join the H-GAC Energy Purchasing Corporation by adopting a resolution. That resolution allowed the City of La Porte, along with other cities to visit with H-GAC to pool our resources and pool our aggregate needs for electrical power so that they could go out and negotiate through a bid process, eventually with a customer to provide electrical services to everyone who joins this particular setting. H-GAC, in my opinion, has done a tremendous job in taking care of the needs of the cities by providing us with this service. They did hire the attorneys, they did hire the engineers and the architects to help put this together where it would make sense for municipalities like the City of La Porte. At this point and time, the initial apprizing purpose that we believe may come about will fall between 5 cents and 6 cents per kilowatt hour. Ifwe were to compare that to what we are currently paying without the ability to pool together, we are looking at a cost of 8 cents to 9 cents. What that equates to for the City of La Porte, if the pricing stays as we think it might, a savings of about $213,000 on a yearly basis. These fees would include the energy costs, the fuel costs, transmission distribution and other regulated rates, including a ~ cent kilowatt charge from H-GAC. There is a schedule of which we have laid out in your agenda packet that outlines key dates when things have to happen. The first deadline for us is to look at adopting Resolution Number II, which is in back of the agenda packets that I am reading from. WHat Resolution Number II basically says is that we are committed to move forward and go ahead and use the numbers that we provided H-GAC for the pooling project to go ahead and go for a bid on it. Once the numbers come back to H-GAC, there is a deadline that we need to act on. The numbers must come back to H-GAC by the 12th from the representative. This is the company that would actually do the actual service for the electricity rates. They will take those numbers and they will share them with the City of