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HomeMy WebLinkAboutMinutes - City Council - Special - 5/21/2019 CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING May 21, 2019 11:00 A.M. The City Council of the City of Lubbock,Texas met in special session on the 21st of May,2019, at Lubbock Power& Light(LP&L), 1301 Broadway Avenue,2nd Floor Conference Room, Lubbock,Texas at 11:00 a.m. 11:08 A.M. CITY COUNCIL CONVENED Lubbock Power& Light(LP&L), 1301 Broadway Avenue,2nd Floor Conference Room,Lubbock,Texas Present, Mayor Daniel M. Pope; Mayor Pro Tem Jeff Griffith; Council Member Juan A. Chadis; Council Member Randy Christian; Council Member Latrelle Joy; Council Member Steve Massengale; Council Member Shelia Patterson Harris; City Manager W. Jarrett Atkinson; City Secretary Rebecca Garza; City Attorney Chad Weaver This was a meeting of the Electric Utility Board. A quorum of Council Members attended and participated in discussions during the meeting in which the board and City Council considered the fallowing topics as shown below. Note, The Electric Utility Board and City Council addressed agenda items in the following order, • 1.1; Executive Session; 3.1; 3.2.1-3.2.6,•and Executive Session (continued). •No quorum, of the City Council, was present far all other items. 1. MINUTES 1. 1. The Board will approve the minutes from the Regular Electric Utility Board Meeting of April 16, 2019, and the amended minutes from the Regular Electric Utility Board Meeting of March 19, 2019. Motion by Don Boatman,seconded by Gwen Stafford to approve the minutes of the Regular Electric Utility Board Meeting held on April 16, 2019,and the amended minutes from the Regular Electric Utility Board Meeting of March 19,2019, Vote: 7-0 Motion carried by the Board Other: Kevin McMahon (ABSENT) Greg Taylor(ABSENT) Kevin McMahon and Greg Taylor, Electric Utility Board members, arrived in Executive Session. Special City Council Meeting May 21,2019 Page 2 of 7 2. EXECUTIVE SESSION This meeting was called into a closed session at 11:09 a.m. under the provisions of Section 551,Texas Government Code,then called back into a public session at 11:50 p.m.The meeting was then called back into a closed session at 12:04 p.m. and back into a public session at 1:04 p.m. 2. 1. Hold an executive session in accordance with V.T.C.A. Government Code § 551.086 on the following competitive matters of Lubbock Power& Light: 2. 1. 1. Discuss and deliberate generation unit specific and portfolio fixed and variable costs, including forecasts of those costs, capital improvement plans for generation units, and generation unit operating characteristics and outage scheduling. 2. 1. 2. Discuss and deliberate proposals and strategies related to plans, studies,and analyses for system improvements,generation additions, or sales(other than transmission and distribution system improvements inside the service area for which LP&L is the sole certificated retail provider). 2. 1.3. Discuss and deliberate bidding and pricing information for purchased power, generation and fuel, purchased power agreements, and related services and strategies. 2. 1. 4. Discuss and deliberate effective fuel agreements and fuel transportation arrangements and contracts. 2. 1. 5. Discuss and deliberate customer billing, contract,and usage information,electric power pricing information,system load characteristics, and electric power marketing analyses and strategies. 2. 1.6. Discuss and deliberate risk management information,contracts, and strategies, including fuel hedging and storage. 2.2. Hold an executive session in accordance with V.T.C.A. Government Code § 551.071,seeking the advice of its legal counsel about pending or contemplated litigation or settlement offers and hold a consultation with the attorney on matters in which the duty of the attorney under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas conflicts with Chapter 551 of the Texas Government Code ((i)Certificate of Convenience and Necessity issues, including but not limited to Public Utility Commission Docket Nos. 48625,48668, 48909,and 49 151 related to Order issued in the Application of the City of Lubbock through Lubbock Power& Light for Authority to Connect a Portion of its System with the Electric Reliability Council of Texas, Public Utility Commission Docket No.47576; (ii) Project to Monitor Lubbock Power& Light's Transition to ERCOT,Public Utility Commission Project No.48113; (iii)Joint Report and Application of Oncor Electric Delivery Company LLC, Sharyland Distribution& Transmission Services LLC, Sharyland Utilities LP,and Sempra Energy for Regulatory Approvals under PURA §§ 14.101, 37.154, 39.262 and 39.915, Public Utility Commission Docket No.48929; (iv) Federal Energy Regulatory Commission,Public Service Company of Colorado and Southwestern Public Service Company, Docket No. ERI 9-675-000 and related matters; (v)Federal Energy Regulatory Commission, Docket No. ER19-1727, Southwestern Public Service Company and related matters; (vi) real property acquisitions and acquisitions processes; (vii) West Texas Municipal Power Agency issues; and(viii) Power Purchase Agreements. Special City Council Meeting May 21,2019 Page 3 of 7 2.3. Hold an executive session in accordance with V.T.C.A. Government Code § 551.074 to deliberate the appointment,employment,evaluation, reassignment,and duties of a public officer or employee(Director of Electric Utilities and General Counsel). 3. REGULAR AGENDA 3. 1. EUB Resolution No. 2019-110029, and EUB resolution authorizing the Director of Electric Utilities or his designee, to execute a lease located at 5618 FM 40 Lubbock,Texas 79403, from Mikaela Allmand and Alan Pitts, Lessors,and the City of Lubbock, Lessee. David McCalla,director of electric utilities/ceo for LP&L,gave comments and answered questions. Motion by Don Boatman,seconded by Butch Davis to approve EUB Resolution No. 2019-110029. Vote: 9-0 Motion carried by the Board 3.2. Lubbock City Council will consider and take action on the following matters: 3.2. 1. Resolution No. 2019-RO 169 authorizing the initiation of an action to condemn an Electric Utility Easement(herein so called),encumbering 0.1074 acres of real property owned by CFIG Investments, LLC, being a portion of Lot 3, Clovis Road Addition to the City of Lubbock, Lubbock County, Texas, according to the map, plat,and/or dedication deed thereof recorded in Volume 1047, Page 548, Deed Records of Lubbock County, Texas,also being a portion of that 1.02-acre tract described in County Clerk File Number 2017041500, Official Property Records of Lubbock County,and located at approximately 280 feet southeast of Ursuline Street, with such action to condemn for public use related to the Lubbock Power& Light Northwest Substation to Mackenzie Substation Transmission and Distribution Project("Project"). IN ACCORDANCE WITH CHAPTER 2206 OF THE TEXAS GOVERNMENT CODE,NOTICE IS HEREIN PROVIDED THAT TIME CITY COUNCIL WILL CONSIDER THE USE OF EMINENT DOMAIN TO CONDEMN THE ELECTRIC UTILITY EASEMENT FOR PUBLIC USE RELATED TO THE PROJECT. Motion by Mayor Pro Tern Jeff Griffith,seconded by Council Member Latrelle Joy, to approve Resolution No. 2019-RO 169 authorizing the use of the power of eminent domain to acquire an Electric Utility Easement,encumbering 0.1074 acres of real property owned by CFIG Investments, LLC, being a portion of Lot 3,Clovis Road Addition to the City of Lubbock, Lubbock County,Texas,according to the map,plat,and/or dedication deed thereof recorded in Volume 1047,Page 548, Deed Records of Lubbock County,Texas, also being a portion of that 1.02-acre tract described in County Clerk File Number 2017041500, Official Property Records of Lubbock County, and located at approximately 280 feet southeast of Ursuline Street,and as more particularly described in Exhibit"A"to the Resolution now under consideration and on the overhead screen being now displayed to the audience, for the public use of constructing and operating the Northwest to Mackenzie transmission and distribution lines and related appurtenances, in the City of Lubbock, Texas. Vote: 7-0 Motion carried Special City Council Meeting May 21,2019 Page 4 of 7 3.2.2. Resolution No.2019-RO 170 authorizing the initiation of an action to condemn an Electric Utility Easement(herein so called),encumbering 0.2474 acres of real property owned by Chad Henthom, being a portion of Lots 9 and 10, Clovis Road Addition to the City of Lubbock, Lubbock County,Texas,according to the map,plat,and/or dedication deed thereof recorded in Volume 1500, Page 605, Deed Records of Lubbock County, Texas,and 17 located at approximately the northwest comer of Clovis Road and North Nashville Avenue, with such action to condemn for public use related to the Lubbock Power&Light Northwest Substation to Mackenzie Substation Transmission and Distribution Project ("Project!'). IN ACCORDANCE WITH CHAPTER 2206 OF THE TEXAS GOVERNMENT CODE,NOTICE IS HEREIN PROVIDED THAT THE CITY COUNCIL WILL CONSIDER THE USE OF EMINENT DOMAIN TO CONDEMN THE ELECTRIC UTILITY EASEMENT FOR PUBLIC USE RELATED TO THE PROJECT. Motion by Mayor Pro Tern Jeff Griffith,seconded by Council Member Steve Massengale, to approve Resolution No.2019-RO 170 authorizing the use of the power of eminent domain to acquire an Electric Utility Easement,encumbering 0.2474 acres of real property owned by Chad Henthom, being a portion of Lots 9 and 10, Clovis Road Addition to the City of Lubbock, Lubbock County,Texas, according to the map,plat,and/or dedication deed thereof recorded in Volume 1500, Page 605, Deed Records of Lubbock County,Texas,and located at approximately the northwest comer of Clovis Road and North Nashville Avenue, and as more particularly described in Exhibit"A"to the Resolution now under consideration and on the overhead screen being now displayed to the audience, for the public use of constructing and operating the Northwest to Mackenzie transmission and distribution lines and related appurtenances, in the City of Lubbock, Texas. Vote: 7 -0 Motion carried 3.2. 3. Resolution No. 2019-80 171 authorizing the initiation of an action to condemn an Electric Utility Easement(herein so called), encumbering 0.0972 acres of real property owned by Maria Knittel, being a portion of Lot 11, Clovis Road Addition to the City of Lubbock, Lubbock County,Texas,according to the map,plat,and/or dedication deed thereof recorded in Volume 1500, Page 605, Deed Records of Lubbock County, Texas, and located at approximately the northwest quadrant of Clovis Road and North Nashville Avenue, with such action to condemn for public use related to the Lubbock Power& Light Northwest Substation to Mackenzie Substation Transmission and Distribution Project("Project"). IN ACCORDANCE WITH CHAPTER 2206 OF THE TEXAS GOVERNMENT CODE, NOTICE IS HEREIN PROVIDED THAT THE CITY COUNCIL WILL CONSIDER THE USE OF EMINENT DOMAIN TO CONDEMN THE ELECTRIC UTILITY EASEMENT FOR PUBLIC USE RELATED TO THE PROJECT. Motion by Mayor Pro Tem Jeff Griffith,seconded by Council Member Shelia Patterson Harris,to approve Resolution No. 2019-80 171 authorizing the use of the power of eminent domain to acquire an Electric Utility Easement,encumbering 0.0972 acres of real property owned by Maria Knittel, being a portion of Lot 11, Clovis Road Addition to the City of Lubbock, Lubbock County,Texas, according to the map,plat,and/or dedication deed thereof recorded in Volume 1500, Page 605, Deed Records of Lubbock County,Texas,and located at approximately the northwest quadrant of Clovis Road and North Nashville Avenue,and as more particularly described in Exhibit"A"to the Resolution now under consideration and on the overhead screen being now displayed to the audience, for the public use of constructing and operating the Northwest to Mackenzie transmission and distribution lines and related appurtenances, in the City of Lubbock, Texas. Special City Council Meeting May 21,2019 Page 5 of 7 Vote: 7 -0 Motion carried 3.2.4. Resolution No. 2019-RO 172 authorizing the initiation of an action to condemn an Electric Utility Easement(herein so called), encumbering 0.2923 acres of real property owned by Cyril and Sandra Reasoner, being a portion of Lots 12, 13, and 14 Clovis Road Addition to the City of Lubbock, Lubbock County,Texas, according to the map,plat, and/or dedication deed thereof recorded in Volume 1500,Page 605, Deed Records of Lubbock County, Texas, and located at approximately the southwest side of Clovis Road, approximately 450 feet southeast of Ursuline Street, with such action to condemn for public use related to the Lubbock Power& Light Northwest Substation to Mackenzie Substation Transmission and Distribution Project("Project"). IN ACCORDANCE WITH CHAPTER 2206 OF THE TEXAS GOVERNMENT CODE,NOTICE IS HEREIN PROVIDED THAT THE CITY COUNCIL WILL CONSIDER THE USE OF EMINENT DOMAIN TO CONDEMN THE ELECTRIC UTILITY EASEMENT FOR PUBLIC USE RELATED TO THE PROJECT. Motion by Mayor Pro Tern Jeff Griffith, seconded by Council Member Latrelle Joy,to approve Resolution No. 2019-80 172 authorizing the use of the power of eminent domain to acquire an Electric Utility Easement,encumbering 0.2923 acres of real property owned by Cyril and Sandra Reasoner, being a portion of Lots 12, 13, and 14 Clovis Road Addition to the City of Lubbock, Lubbock County,Texas,according to the map, plat, and/or dedication deed thereof recorded in Volume 1500, Page 605, Deed Records of Lubbock County, Texas, and located at approximately the southwest side of Clovis Road,approximately 450 feet southeast of Ursuline Street, and as more particularly described in Exhibit"A"to the Resolution now under consideration and on the overhead screen being now displayed to the audience,for the public use of constructing and operating the Northwest to Mackenzie transmission and distribution lines and related appurtenances, in the City of Lubbock, Texas. Vote: 7-0 Motion carried 3.2.5. Resolution No. 2019-RO 173 authorizing the Director of Electric Utilities,or his designee, on behalf of the City of Lubbock acting by and through Lubbock Power& Light("LP&L") to voluntarily transact with TI Holdings, LLC for easement rights for constructing and operating the Northwest to Mackenzie transmission and distribution lines, and related appurtenances in the City of Lubbock,Texas. Motion by Council Member Latrelle Joy, seconded by Mayor Pro Tem Jeff Griffith,to approve Resolution No.2019-RO 173. Vote: 6- I Motion carried NAY: Council Member Juan A. Chadis 3.2.6. Resolution No. 2019-801 74 authorizing the Director of Electric Utilities or his designee,to execute a lease located at 5618 FM 40 Lubbock,Texas 79403, from Mikaela Allmand and Alan Pitts, Lessors,and the City of Lubbock, Lessee. Motion by Council Member Juan A. Chadis, seconded by Council Member Latrelle Joy,to approve Resolution No. 2019-80 174. Vote: 7-0 Motion carried Special City Council Meeting May 21,2019 Page 6 of 7 3.3. PUBLIC COMMENT -This period,of up to thirty minutes, is dedicated to citizen comments. Each citizen will have three minutes to speak. All comments must be limited to only those items posted on the Electric Utility Board agenda.Any citizen wishing to speak shall sign up on the citizen comment sheet on the day of the Electric Utility Board Meeting.The Electric Utility Board shall follow the order of citizens wishing to speak as listed on the sign-up sheet. If everyone who signed up to speak has been given an opportunity to speak and the thirty minutes designated for citizen comment has not been exhausted,the Electric Utility Board may,at its discretion,open the floor to anyone else wishing to address the Electric Utility Board, subject to all the same procedures and guidelines. *This item was deleted. 3.4. Presentation and discussion of the update/report by the Director of Electric Utilities,or his designee,regarding customer service, business center practices,procedures and policies,customer concerns and complaints, billing forms and procedures,status of transmission and distribution projects, and LP&L staffing and performance. *This item was deleted. 3.5. Presentation and discussion of financial and capital statements, financing options, audits,and financial policies of Lubbock Power& Light relating to debt issuance issues,reserve account funding, cost allocation,revenue and expense projections,purchased power cost recovery factor, customer metering,tariff and billing,and service issues. *This item was deleted. 3.6. The Board will consider a budget amendment, amending the FY 2018-19 Capital Program to amend Capital Improvement Project(CIP)#92485, Substation Breaker Replacements— Transmission; CIP#92598, FY 2018-19 Underground Distribution. *This item was deleted. 3.7. The Board will consider a resolution recommending that the City Council of the City of Lubbock take actions necessary to delete the City of Lubbock as a member public entity of the West Texas Municipal Power Agency. *This item was deleted. 4. CONSENT AGENDA 4. 1. The Board will consider a resolution authorizing the Director of Electric Utilities,or his designee, to execute stipulations,agreements,and other documents on behalf of the City of Lubbock,acting by and through Lubbock Power& Light("LP&L"), to resolve routing matters in Public Utility Commission Docket Numbers 48625,48668,48909,and 49151. *This,item was deleted. Special City Council Meeting May 21,2019 Page 7 of 7 4. 2. The Board will consider a resolution authorizing the Director of Edectric Wilities to execute an agreement between the City ol'Lubbock, acting by and through Lubbock Power& Light, and Oracle Arnerica, Inc. replacing the Software as a Service ordering document signed May 30, 2018. *This item was deleted. 4. 3. The Board will consider a resolution rejecting all proposals for RFP# 7124-19-131,1), LP&L Switchgear Package for Allen and Wheelock Substations. *This item was deleted. 4. 4. The Board will consider a resolution authorizing the purchasing manager, or his designee,to execute a Purchase Order to Electrical Power Products, RFP# 71.31-19-1 LD, lor LP&I, Vicksburg Substation Relay and Electric Panels. *This item was deleted. 4. 5. The Board will consider a resolution authorizing the purchasing manager, or his designee, to C, 4:� 1� execute a Purchase Order to Stuart C. Irby, RFP# 7134-19-ELD, for LP&L Thompson to Vicksburg Transmission and Distribution Material Package. *This item was deleted. 1:04 P.M. CITY COUNCIL ADJOURNED There being no further business to come before Council, the meeting was adjourned. The May 21, 2019 Special City Council Meeting minutes were approved by the City Council on the 9th day of.luly, 2019. L'1V DANIEL M. POPE, MAYOR ATTEST: RIKIcca Garza, City Sec *This item was discussed, by the Board, without a quorum Of Council Members present.