Apr 06, 2021 City Council

[00:00:01]

OH, IT'S 7.

ARE WE READY? I'M CALLING THE APRIL 6, 2021, CITY COUNCIL

[CALL TO ORDER]

MR. OLSON, DO WE HAVE A QUORUM? YES, MADAM MAYOR, WE DO.

OK, I WOULD LIKE TO NOTE FOR THE RECORD THAT CINDY MEYER WAS RELEASED FROM THE HOSPITAL THIS MORNING. SHE'S HOME, SHE'S FINE, BUT SHE WAS NOT ABLE TO BE HERE TODAY, AND THAT IS WHY SHE IS NOT HERE.

AND MS. ABRAHAM HAD A FAMILY EMERGENCY AND THAT'S WHY SHE'S NOT HERE.

SO AT THIS TIME.

I WILL ASK MR. SLAUGHTER, WILL YOU DO THE AMERICAN PLEDGE AND MR. STANDRIDGE, WILL YOU DO THE TEXAS PLEDGE? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

I PLEDGE ALLEGIANCE TO THEE TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE.

OK, THANK YOU.

I THINK WE HAVE TWO PUBLIC COMMENTS.

[PUBLIC COMMENTS]

THE OTHER IS MR. CARDENA. YOU READY? [LAUGHTER] BEFORE I START, LET ME.

I'M GOING TO USE MY TIMER HERE SO THAT I STAY ON TIME.

WOULD YOU SPEAK UP INTO THE MICROPHONE? YES, YES. HI, THIS IS JOE CARDENA.

AND 4302 [INAUDIBLE] DRIVE.

HOPE EVERYONE HAD A GOOD EASTER AND SOME VERY, VERY GOOD THINGS WILL COME YOUR WAY AS A RESULT OF THE GOOD THINGS THAT WE'RE TRYING TO WORK ON AT THIS TIME.

WHAT I WANT TO TALK ABOUT TO YOU TODAY IS WE SPENT OVER EIGHT THOUSAND DOLLARS ON BRINGING A CONSULTANT.

HOW ABOUT THIS. IT'S NOT ON.

IT'S NOT ON. HOLD ON.

WE HAVE TO START OVER.

OK, WELL, IF YOU WOULD GIVE US JUST A MINUTE, BECAUSE WE DO WANT TO HEAR WHAT YOU HAVE TO SAY. YEAH. IT'S NOW.

YEAH.

ALL IT TOOK IS YOUR MAGIC. OK, I'LL RESTART.

WELL, FIRST OF ALL, SINCE I'VE ALREADY GIVEN MY NAME AND EVERYTHING, WHAT I WANT TO TALK TO YOU ABOUT IS THE FACT THAT WE SPENT EIGHT THOUSAND DOLLARS, BROUGHT IN A CONSULTANT TO HELP US ON WORKING TOWARD A SOLUTION, IF YOU WILL, ON AND, YOU KNOW, ON THIS NEW CITY HALL AND POLICE DEPARTMENT COMBINATION.

HER RECOMMENDED NEXT STEPS IS THE SECOND MEETING.

THAT IS NEXT STEP IN THIS WHOLE THING.

COMING UP, THE INTENT OF THE SECOND MEETING IS TO GIVE THE COMMUNITY BACKGROUND INFORMATION REGARDING QUESTIONS THAT HAVE BEEN RAISED THROUGHOUT THIS PROCESS OF DEVELOPING A FACILITIES PLAN.

SHE GOES ON FURTHER IN HER REPORT.

AND I'M USING JUST RIGHT VERBATIM FROM HER REPORT, THE CITIZENS COMMENTS, WHICH ARE KIND OF IMPORTANT AND IN FACT, VERY IMPORTANT, SHE SAYS AS SHE GATHERED THIS INFORMATION TOGETHER. I THINK IT'S GREAT TO HAVE A CITIZENS COMMITTEE.

WE SHOULD HAVE A CITIZENS COUNCIL AND MAYOR AND CITY COUNCIL SHOULD BE INVOLVED.

COMMUNITY COMMITTEE IS A GOOD IDEA.

CITY ADVISORY COMMITTEE IS SO DARN IMPORTANT.

WE NEED TO INCREASE CITIZEN ENGAGEMENT, CREATE THE CITIZENS COMMITTEE TO TACKLE THE FACILITIES ISSUE.

WELL, I ALSO SENT A MESSAGE IN THIS REGARD AND SHE WAS KIND ENOUGH TO REPLY.

IT HAS TO DO WITH THE INFORMATIONAL MEETING.

SHE SAYS THAT OUR NEXT STEP IS THE INFORMATIONAL MEETING, WHICH FOLLOWS THE PLAN, AND THAT MAKES GOOD SENSE. BUT HERE'S WHAT'S NOT SO GOOD.

SHE SAID, AND I QUOTE, THERE WILL NOT BE AN OFFICIAL SANCTION FOR ANY PARKER CITIZENS ADVISORY COMMITTEE.

THAT SANCTIONING, BY THE WAY, IS ENTIRELY UP TO THE COUNCIL MEMBERS.

IT'S NOT THE MAYOR'S DOING OR NOT DOING.

IT'S THE COUNCIL THAT MAKES THAT DECISION.

IF YOU DECIDE THAT YOU WANT TO HAVE A CITIZEN ADVISORY COMMITTEE AND YOU SANCTION IT, THERE IS NO COST WHATSOEVER TO THE CITY.

ALL OF IT'S BEEN BORNE BY THE CITIZENS WHO ARE ON THAT COMMITTEE.

THE DIFFERENCE IS SIMPLY THIS.

[00:05:01]

THE COMMITTEE ON THE AGENDA.

THEY COME FORWARD.

THEY TALK ABOUT WHAT THEIR DISCOVERY HAS BEEN FOR THE TOWNS THAT THEY'VE INTERVIEWED.

AND THAT INFORMATION BECOMES A CRITICAL PART OF THE RECORDKEEPING THAT WE HAVE FOR THINGS THAT WILL INFLUENCE OUR BUILDING.

SO THE LAST THING THAT SHE SAID HERE IS THAT WE PLAN TO STICK TO OUR PLAN FORMED WITH DR.

GARRETT.

IN ORDER TO STICK WITH THAT PLAN YOU NEED TO DO, WHAT THE CITIZENS TALKED ABOUT IN THE MEETING AND THEY TALKED ABOUT THE ADVISORY COMMITTEE.

AND THE ADVISORY COMMITTEE IS A SMART IDEA THAT COSTS NOTHING.

SO IT JUST GIVES YOU A CHANCE TO PAUSE AND REFLECT COUNCIL MEMBERS.

THIS IS ONE OF THOSE HMM MOMENTS.

AND NOW WE'RE GOING TO SAY TO YOU, IT'S JUST, HMM, THANKS VERY MUCH.

THANK YOU. OKAY.

NEXT, WE WILL GO TO ITEMS OF INTEREST.

[ITEMS OF COMMUNITY INTEREST]

. ON APRIL 21ST THE COMPREHENSIVE PLAN COMMITTEE WILL MEET VIRTUALLY ONLY BECAUSE THEY'LL BE EARLY VOTING IN COUNCIL CHAMBERS.

CANDIDATES NIGHT WILL BE AT VICTORY'S CHURCH AT APRIL 15TH, AT 7:00 P.M.

HOPEFULLY EVERYBODY WILL BE THERE.

AND THIS WILL BE LIVE STREAMED ON THE PARKER WOMEN'S CLUB FACEBOOK PAGE BECAUSE THEY ARE WHO PUTS ON CANDIDATES NIGHT.

ON APRIL 21ST WILL BE THE NATIONAL PRESCRIPTION DRUG TAKE BACK.

AND DESPITE THE RUMORS GOING AROUND IN THE COMMUNITY, THERE IS NOT A HAZARDOUS WASTE DISPOSAL THAT NIGHT OR THAT DAY ON THE 21ST.

THAT WILL BE THE LAST SATURDAY IN OCTOBER, I BELIEVE.

AND WE ONLY GET ONE A YEAR.

I'M NOT REALLY SURE HOW.

24TH. APRIL 24TH FOR THE NATIONAL TAKE BACK.

OK, OK.

AND JUST AS A REMINDER, VOTING DAY IS MAY 21ST WITH EARLY VOTING STARTING APRIL 19TH AND ENDING ON APRIL 27TH.

OK, NEXT WE WILL MOVE TO THE CONSENT AGENDA.

[CONSENT AGENDA]

OK. WE HAVE A MOTION FROM COUNCIL MEMBER SLAUGHTER TO APPROVE THE CONSENT AGENDA AS PRESENTED. IS THERE A SECOND.

I SECOND THAT. OK, WE HAVE A MOTION BY MICHAEL SLAUGHTER AND A SECOND BY COUNCIL MEMBER LYNCH TO APPROVE THE CONSENT AGENDA AS PRESENTED.

ANY FURTHER DISCUSSION AT ALL? NOT HEARING ANY I WILL CALL FOR YOUR VOTE.

ALL THOSE IN FAVOR OF APPROVING THE CONSENT AGENDA AS PRESENTED.

PLEASE RAISE YOUR RIGHT HAND.

OK, ANYBODY AGAINST.

PASSES THREE ZERO.

OK, NEXT WE WILL HAVE A PRESENTATION BY THE COALITION FOR AFFORDABLE POWER TCAP EXECUTIVE

[3. PRESENTATION BY TEXAS COALITION FOR AFFORABLE POWER (TCAP) EXECUTIVE DIRECTOR MARGARET SOMEREVE, CONSIDERATION AND/OR ANY APPROPRIATE ACTION ON RESOLUTION NO. 2021-664 APPROVING THE CERTIFICATE OF FORMATION AND BYLAWS OF TCAP A POLITICAL SUBDIVISION CORPORATION; ACCEPTING MEMBERSHIP IN SAID CORPORATION; APPROVING THE PROFESSIONAL SERVICES AGREEMENT. [OLSON]]

AM I PRONOUNCING THAT CORRECTLY.

IN CONSIDERATION AND ON APPROPRIATE ACTION ON RESOLUTION NUMBER 2021-664 APPROVING THE CERTIFICATE OF FORMATION AND BYLAWS OF A TCAP POLITICAL SUBDIVISION CORPORATION ACCEPTING MEMBERSHIP IN SAID CORPORATION AND APPROVING THE PROFESSIONAL SERVICES AGREEMENT.

LUKE, DID YOU WANT TO SAY SOMETHING ABOUT THIS.

TCAP I BELIEVE THEY ROUGHLY SERVICE 88 CITIES JUST IN THE NORTH TEXAS AREA.

BASICALLY, THIS IS JUST CITY FACILITIES AND I'LL HAVE MARGARET GO OVER EVERYTHING.

IT HAS NOTHING TO DO WITH THE RESIDENTS, PER SAY, OTHER THAN TAX DOLLARS THAT WE USE TO PAY OUR ELECTRIC BILL.

SO I THINK THERE'S BEEN SOME CONFUSION OUT THERE BASED ON SOME OF THE CALLS THAT THIS IS FOR YOU KNOW, ALL THE CITIZENS NO IT'S JUST FOR POLICE, FIRE, PUBLIC WORKS OUR PUMP STATIONS, STUFF LIKE THAT.

THAT'S ALL THIS IS AND I'M GOING TO TURN IT OVER TO MARGARET TO GO THROUGH IT.

[00:10:03]

WE, LIKE THE CITY MANAGER SAID WE HAVE ABOUT ACTUALLY WE'RE UP TO ABOUT 90 MEMBERS IN THE NORTH TEXAS REGION.

WE JUST GOT A NEW MEMBER A FEW WEEKS AGO.

AND WE OTHER THAN PARKER, WE HAVE ABOUT TWO OR THREE OTHER CITIES THAT ARE LOOKING AT US RIGHT NOW. SO WE'RE VERY EXCITED THAT OUR MEMBERSHIP IS GROWING.

WE'VE BEEN SAVING CITIES MONEY FOR TWENTY YEARS NOW.

WE'RE CELEBRATING OUR 20TH YEAR.

WE HAVE BEEN IN EXISTENCE SINCE 2001.

AND IF YOU RECALL, WHAT HAPPENED IN 2001 IS THE STATE DEREGULATED ELECTRICITY.

IT ALLOWED FOR CHOICE.

AND SO TCAP ACTUALLY STARTED AT THAT POINT.

NEXT SLIDE. WELL, KIND OF GETTING A LITTLE AHEAD.

SO YES, WE HAVE NINETY MEMBERS IN THE NORTH ZONE.

ALL THOSE WHITE DOTS SHOW YOU WHERE OUR MEMBERS ARE.

WE HAVE ONE HUNDRED AND SIXTY SEVEN MEMBERS RIGHT NOW.

SO LIKE I SAID, WE'RE GROWING AND WE'RE VERY EXCITED ABOUT THIS.

SO WHAT HAPPENED WAS, AGAIN, IN 2001, THE CITY STARTED WHAT WAS CALLED THE CITY'S AGGREGATION PROJECT, AND THAT WAS FORMED IN BASICALLY NORTH TEXAS AND WEST TEXAS WITH ABOUT EIGHTY TWO MEMBERS AT THE TIME.

THERE WAS ALSO A GROUP IN SOUTH TEXAS, THE VALLEY, CORPUS CHRISTI AREA, THAT REGION THAT CALLED THEMSELVES THE SOUTH TEXAS AGGREGATION PROJECT.

AND THEY FORMED WITH ABOUT FORTY ONE POLITICAL SUBDIVISIONS.

THE TWO GROUPS DID THE EXACT SAME THING, HAD THE EXACT SAME CONSULTANTS, YOU KNOW, WENT OUT FOR CONTRACTS AT THE EXACT SAME TIME BUT THE SOUTH WANTED TO BE SEPARATE.

IN ABOUT 2011 THE TWO GROUPS DECIDED THIS IS AN AWFUL LOT OF WORK.

SO WE MERGED AND CHANGED OUR NAME TO THE TEXAS COALITION FOR AFFORDABLE POWER.

SO WE HAVE BEEN IN EXISTENCE SINCE 2001.

NEXT SLIDE. SO WHY WE'RE DIFFERENT THAN A LOT OF BROKERS AND OTHER PEOPLE THAT MAY COME KNOCKING ON YOUR DOOR IS THAT OUR BOARD IS MADE UP OF OUR MEMBERS.

THIS IS CURRENTLY OUR BOARD.

AS YOU CAN SEE, THEY ARE FROM ALL OVER THE STATE AND THEY ARE ALSO MADE UP OF CITY MANAGERS, FINANCE DIRECTOR, CITY ATTORNEYS.

WE ACTUALLY HAVE A MAYOR ON THE BOARD WHICH PLACE IS HE I'M TRYING TO FIND HIS PLACE.

HE IS PLACE SIX MCALLEN, THE MAYOR MCALLEN IS ON OUR BOARD.

UNFORTUNATELY, WE JUST LOST PLACE FOURTEEN, HE PASSED AWAY SUDDENLY, THE CITY MANAGER OF TOMBALL PASSED AWAY SUDDENLY A COUPLE OF WEEKS AGO.

SO WE JUST LOST HIM.

SO WE'LL BE FILLING THAT VACANCY AT OUR MAY BOARD MEETING.

BUT OUR BOARD MEETINGS ARE OPEN TO OUR MEMBERSHIP.

ANYONE CAN COME, ANYONE CAN ASK QUESTIONS, ANYONE CAN TALK.

ANYONE CAN SAY ANYTHING, AND ANYONE CAN RUN FOR THE BOARD AND EVERY MEMBER GETS A VOTE.

NEXT SLIDE. SO, WHY TCAP WHAT MAKES US DIFFERENT? WHAT YOU SEE ON THE LEFT HAND SIDE ARE TWO DIFFERENT MEMBERS, MEMBER A, AND MEMBER B AND WHAT IS CALLED THEIR LOAD PROFILE.

IT'S BASICALLY HOW THEY USE ELECTRICITY ON AN AVERAGE DAY IN AUGUST.

YOU CAN SEE MEMBER A THAT IS PROBABLY I COULDN'T EVEN TELL YOU WHO THAT IS.

I JUST PICKED IT. IT'S TYPICALLY A LARGER CITY.

AND THE REASON IT'S TYPICALLY A LARGER CITY IS YOU CAN SEE THAT THEY SPIKE USAGE IN THE OVERNIGHT HOURS.

THE REASON THAT THEY'RE SPIKING USAGE IN THE OVERNIGHT HOURS IS BECAUSE THEY HAVE STREET LIGHTS, THEY HAVE PUMP STATIONS, THEY MIGHT HAVE A WATER TREATMENT FACILITY, THINGS THAT ARE BEING TURNED ON IN THE OVERNIGHT HOURS.

AT THE BOTTOM, MEMBER B IS PROBABLY A SMALLER CITY, TYPICALLY ONLY HAS A FEW BUILDINGS TURNING THE LIGHTS ON DURING NORMAL BUSINESS HOURS, YOU KNOW, A FEW STREET LIGHTS, BUT DOESN'T REALLY HAVE MUCH IN THE WAY OF WATER TREATMENT OR WATER PROCESSING OR SEWER TREATMENT, THAT SORT OF THING.

SO WHAT TCAP DOES AND WHY WE'RE VERY DIFFERENT IS WE AGGREGATE EVERYBODY'S LOAD TOGETHER.

SO WHAT HAPPENS IS, IS THAT IF YOU TOOK A AND B AND YOU PUT THEM TOGETHER, IT MAKES FOR A VERY FLAT LINE, WHICH IS VERY GOOD WHEN WE GO OUT INTO THE MARKET TO BUY ELECTRICITY.

THE OTHER THING THAT'S ALSO GOOD ABOUT OUR MEMBERSHIP, AS YOU SAW, WE'RE ALL OVER THE STATE OF TEXAS.

SO WHEN DALLAS IS, YOU KNOW, WE'RE LIKE DYING IN ONE HUNDRED AND FIVE DEGREES FOR THE 18TH DAY IN A ROW.

OUR SOUTHERN MEMBERS IN THE VALLEY AREN'T NECESSARILY SEEING THAT WEATHER SO THAT ALSO THE TEMPERATURE DIFFERENCES AMONG THE STATE ALSO HELP WITH USAGE AND KEEP THE LEVEL FLAT.

THE CHART ON THE RIGHT.

AGAIN, IT'S THAT SAME TYPICAL AUGUST DAY.

THE BLUE LINE IS THE TCAP LOAD.

AND AS YOU CAN SEE, IT'S VERY IT'S ALMOST FLAT.

NOT QUITE. BUT, YOU KNOW, AGAIN, WE KIND OF SPIKE IN THOSE OVERNIGHT HOURS BECAUSE OF THE

[00:15:05]

THE RED LINE IS THE ERCOT LINE.

AND AS YOU CAN SEE, IT GOES UP HIGHER LATE AFTERNOON.

SOME PEOPLE ARE GETTING HOME, TURNING THEIR AIR CONDITIONERS ON IN THE AUGUST DAYS, YOU KNOW, TURNING THEIR LIGHTS ON, DOING THEIR LAUNDRY AND DISHWASHING AND THAT SORT OF THING. SO WHAT HAPPENS IS KIND OF TO GO BACK A LITTLE BIT TO FEBRUARY ALSO PRICES ON THE SPOT MARKET ALSO FOLLOW THAT RED LINE.

AND SO, AGAIN, IF YOU HEARD OF ANY OF THE PEOPLE THAT WERE ON THE SPOT MARKET, THE [INAUDIBLE] CUSTOMERS DURING THE STORM, AND THEY WERE PAYING SEVENTEEN THOUSAND DOLLARS FOR THEIR ELECTRIC BILLS, IT'S BECAUSE THEY WERE FOLLOWING THAT RED LINE.

WHEN THE PRICES GO UP, THEY WERE GOING UP TOO.

TCAP DOES NOT BUY ON THE SPOT MARKET.

WE MAKE SURE THAT OUR PRICES ARE FIRM.

WE GET GOOD PRICES, WE GET COMPETITIVE PRICES.

BUT WHAT HAPPENS IS WHEN WE GO OUT AND SHOW THE PROVIDERS THIS CHART, THEY LIKE IT BECAUSE THEY KNOW THAT A LOT OF OUR POWER IS COMING IN IN THOSE OVERNIGHT HOURS.

SO THEY'RE ACTUALLY ABLE TO BUY THE POWER IN THE OVERNIGHT HOURS AND SAVE OUR ORGANIZATION A LOT OF MONEY. THEY DON'T HAVE TO BUY IT IN THAT EIGHT TO FIVE MONDAY THROUGH FRIDAY TIME BLOCK. AND SO THAT ALSO HELPS US TO GET A REALLY GOOD RATE WHEN WE GO OUT FOR OUR PRICING. NEXT SLIDE.

SO, WHY TCAP.

THERE ARE OTHER PEOPLE OUT THERE THAT SAY THEY'RE AGGREGATORS, THEY'RE NOT.

WE AGGREGATE ALL OF OUR KILOWATTS.

WE GO OUT INTO THE MARKET WITH ABOUT ONE POINT ONE BILLION KILOWATTS ANNUALLY.

WE'RE BETTER AS A GROUP THAN ON YOUR OWN BECAUSE WE'VE SEEN TIME AND TIME AGAIN WHEN CITIES HAVE LEFT OUR ORGANIZATION THEY CAN'T GET A PRICE AS GOOD AS OURS AGAIN BECAUSE THEY'LL GO BACK TO THAT LOAD PROFILE ON THEIR OWN.

WE'RE NOT FOR PROFIT.

WE'RE NOT TRYING TO MAKE A PROFIT.

WE'RE TRYING TO SAVE YOU ALL MONEY.

SO WE'RE ALWAYS LOOKING FOR WAYS TO SAVE MONEY ALSO BECAUSE WE'RE NOT FOR PROFIT IF WE DO COME UP WITH MONEY, WE GIVE THEM BACK AS REFUNDS BASED ON YOUR KILOWATT USAGE.

AGAIN, IT'S AN OPEN BOARD MEETING TO ALL OUR MEMBERS.

YOU CAN HAVE A SAY YOU'RE REPRESENTED BY YOUR PEERS.

SO THE PEOPLE ON THE BOARD ARE SITTING IN CITY HALLS HAVING TO MAKE THOSE DECISIONS.

AND THEY'RE NOT GOING TO GO BACK TO THEIR MAYORS AND SAY, OH, WELL, WE VOTED FOR THIS HUGE INCREASE. I MEAN, THEY'RE JUST, YOU KNOW, WANTING TO MAKE SURE THAT RATES ARE AS LOW AS POSSIBLE. WE ALSO HAVE CONSULTANTS THAT ARE AVAILABLE AT NO EXTRA CHARGE.

WE HAVE AN ENERGY CONSULTANT.

WE HAVE ATTORNEYS.

RIGHT NOW UNTIL THE LAW CHANGES, WE CAN LOBBY.

WE DO SOME LOBBYING TO MAKE SURE THAT RIGHT NOW WE'RE WATCHING ALL THE ENERGY BILLS THAT ARE BEING FILED AFTER THE STORM.

AND THE OTHER THING WE DO IS WE MAKE SURE WE NEGOTIATE THE BEST CONTRACT LANGUAGE BECAUSE THE DEVIL'S IN THE DETAILS AND SOMETIMES IN THESE ELECTRIC CONTRACTS THE PROVIDERS WILL HIDE LANGUAGE, YOU KNOW, THAT IT LOOKS PRETTY INNOCUOUS, BUT IT COULD END UP COSTING YOU A LOT OF MONEY. SO WE MAKE SURE WE HAVE THE BEST CONTRACT AND WE TAKE THE CONTRACT OUT AND SAY WE WANT THIS CONTRACT.

WHAT ARE YOU GOING TO PRICE IT AT? AND SO WE DO IT A LITTLE BIT BACKWARDS, BECAUSE IF YOU GO OUT JUST LOOKING FOR A PRICE LIKE YOU DO PURCHASING POLICE CARS, YOU KNOW, THAT'S VERY EASY TO DO.

YOU KNOW WHAT YOU'RE ASKING FOR.

THERE'S A LOT OF DIFFERENT THINGS IN THE CONTRACT THAT CAN GET HIDDEN AND PRICES CAN GO UP. NEXT SLIDE.

SO WHY WE'RE DIFFERENT. AGAIN, ELECTRICITY IS EXEMPT FROM BIDDING REQUIREMENTS.

YOU DO NOT HAVE TO GO OUT TO BID FOR ELECTRICITY.

IT WAS PUT INTO THE LOCAL GOVERNMENT CODE.

WE ARE ACTUALLY SET UP TCAP IS AS AN ENERGY AGGREGATOR FOR LOCAL GOVERNMENTS, ALSO IN SECTION 304 THE LOCAL GOVERNMENT.

WHAT MAKES THIS ALSO DIFFERENT IS WE HAVE A BIFURCATED CONTRACT.

WHAT WE'RE ABLE TO DO IS WE'RE ABLE TO GO INTO THE WHOLESALE MARKET.

WE DO NOT HAVE TO GO THROUGH RETAIL ELECTRIC PROVIDER TO GET A CONTRACT.

WE HAVE A RETAIL ELECTRIC PROVIDER, BUT ALL THEY'RE DOING IS OUR BILLING SERVICES.

SO THAT ALSO SAVES MONEY BECAUSE THEY'RE NOT DOING A LOT OF THINGS THAT RETAIL ELECTRIC PROVIDERS WOULD DO.

WHAT AGAIN, YOU WILL GET A LOT OF PEOPLE KNOCKING ON YOUR DOOR TELLING YOU THAT THEY CAN GET YOU A BETTER RATE.

THAT'S KIND OF WHAT THIS CHART SAYS.

IF YOU GO TO A RETAIL ELECTRIC PROVIDER, THAT'S A YOU KNOW, THEY'LL GO INTO THE MARKET AGAIN. WE'RE DOING THE EXACT SAME THING.

WE'RE GOING STRAIGHT INTO THE MARKET.

IF YOU GET A BROKER AND THERE ARE A LOT OF BROKERS OUT THERE, THEY WILL TELL YOU THEY CAN GET A GREAT PRICE. BUT THEY HAVE TO GO TO A RETAIL ELECTRIC PROVIDER TO GET A CONTRACT.

THEY CAN'T GET INTO THE MARKET.

A LOT OF TIMES THE BROKERS WILL HAVE THEIR FAVORITES BECAUSE THEY GET AN ADDITIONAL FEE

[00:20:01]

SO EVEN IF A BROKER SAYS, OH, BUT WE'LL DO THE RFP'S FOR YOU, WE'LL GET YOU THE BEST RATES, WE'VE SEEN THAT THE BEST RATES ARE ALWAYS FROM THE SAME COMPANIES.

AND A LOT OF TIMES THOSE BROKERS WON'T ACCEPT A TCAP BID BECAUSE THEY KNOW THAT WE'RE GOING TO BEAT THEIR FAVORITE RETAIL ELECTRIC PROVIDER.

THE OTHER THING IS, FOR SOME REASON, GEXA DOES OUR BILLING IF WE'RE NOT HAPPY WITH GEXA WE DON'T THINK THEY'RE LIVING UP TO THEIR CUSTOMER SERVICE STANDARDS THAT WE HAVE IN THEIR CONTRACT. WE CAN CHANGE THEM, BUT YOUR ELECTRIC PRICE WILL REMAIN THE SAME BECAUSE THAT'S A SEPARATE CONTRACT.

SO UNLIKE YOUR RESIDENTIAL, IF YOU DON'T LIKE WHOEVER YOU'RE WITH, IF YOU CHANGE, YOU DON'T GET TO KEEP YOUR PRICE BECAUSE WE HAVE THIS CONTRACT IN THE WAY WE'RE SET UP, WE'RE ABLE TO DO THAT. SO YOU DON'T LOSE YOUR PRICE IF WE CHANGE RETAIL ELECTRIC PROVIDERS.

NEXT SLIDE. THIS IS REAL BRIEFLY.

SOME OF THE CITIES WE SIGNED A NEW CONTRACT IN 2018.

THESE ARE SOME OF THE CITIES THAT WE KNEW THEIR PRICES WHEN THEY LEFT.

AS YOU CAN SEE, EVERY ONE OF THESE PRICES IS HIGHER THAN IF THEY'D STAYED WITH TCAP.

THE REASON THE ZONES ARE UP THERE AND YOU CAN SEE THE ZONES ARE A LITTLE DIFFERENT IN PRICE IS THAT EVEN THOUGH WE GO OUT INTO THE MARKET WITH ONE POINT ONE BILLION KILOWATTS FOR ALL OF OUR MEMBERS, EACH OF THE ZONES, THE NORTH, SOUTH, WEST AND HOUSTON HAVE DIFFERENT THINGS ADDED TO THEM FOR DIFFERENT REASONS.

SO WE DO DIVIDE THE PRICE OUT BY ZONE.

BUT AGAIN, YOU CAN SEE ONE OF THE THINGS THAT A LOT OF OUR BROKER FRIENDS ARE DOING IS TRYING TO CONVINCE MEMBERS THAT THEY NEED TO SIGN THESE REALLY LONG TERM CONTRACTS NINE YEARS, TEN YEARS.

THE REASON IS AT THE END OF THE DAY, THEY'RE A FOR PROFIT BUSINESS AND THEY KNOW CITIES ARE NOT GOING TO GO OUT OF BUSINESS AND THAT THEY'LL BE ABLE TO KEEP MAKING MONEY OFF OF YOU FOR THOSE LONG TERM CONTRACTS.

THEY TRY AND CONVINCE THE CITIES YOU NEED TO SIGN NOW, PRICES ARE GOING NOWHERE BUT UP AND YOU WANT TO LOCK IT DOWN.

ONE OF THE THINGS THAT WE LEARNED IN OUR LAST CONTRACT THAT EXPIRED AT THE END OF 2017, WE WERE IN A FIVE YEAR CONTRACT, PRETTY STANDARD LENGTH, YOU KNOW.

BUT WHAT HAPPENED WAS THAT DURING THAT FIVE YEAR CONTRACT, FRACKING HAPPENED AND PRICES BOTTOMED OUT AND WE WERE STILL IN A CONTRACT AND COULD NOT TAKE ADVANTAGE OF IT.

AND I'M GOING TO TELL YOU HOW WE'RE LOOKING AT CONTRACTS MOVING FORWARD, BECAUSE IT'S VERY HARD WHEN YOU'RE IN A CONTRACT.

I THINK BACK THEN THE PRICES WERE SEVEN CENTS AND EVERYONE'S COMING KNOCKING AT YOUR DOOR SAYING BUT THE MARKET'S SITTING AT THREE.

IT'S A LITTLE HARD TO EXPLAIN TO YOUR RESIDENTS WHY YOU'RE PAYING SEVEN CENTS WHEN THE MARKET IS THREE. BUT AGAIN, IT'S A CONTRACT.

AND EVERYBODY KNOWS WHEN YOU HAVE A CONTRACT, YOU KNOW, YOU GOT TO LIVE TO THE END OF THE CONTRACT OR IT JUST, YOU KNOW, THE PENALTIES TO GET OUT OF IT ARE VERY LARGE.

SO WE LEARNED A LOT FROM THAT, AND THAT'S WHY MOVING FORWARD, WE'VE CHANGED THE WAY WE'RE BUYING POWER TO HELP SAVE MONEY AND TO BE ABLE TO TAKE ADVANTAGE IF THE MARKET CHANGES AGAIN AND NEW TECHNOLOGY COMES DOWN THE PIKE.

NEXT SLIDE. SO HERE WE ARE ABOUT CONTRACTING.

SO TYPICALLY A PRO, YOU KNOW, A GOOD THING ABOUT FIXED PRICE, FIXED TERM CONTRACTS IS THAT, YOU KNOW, YOUR PRICE FOR UP TO FIVE YEARS.

THOSE OTHER CITIES KNOW IT FOR THE NEXT SEVEN OR NINE YEARS, YOU CAN PLAN YOUR BUDGETS FIVE YEARS OUT. THE PROBLEM IS, IS THAT ELECTRICITY PRICES CHANGE DAILY.

IF YOU DON'T SIGN A CONTRACT THE DAY YOU GET THE PRICE OR FIRST THING THE NEXT MORNING, THE PRICE IS NO LONGER THERE.

SO YOU'RE TRYING TO PICK ONE DAY OUT OF THREE HUNDRED AND SIXTY FIVE.

THAT IS THE PERFECT TIME TO BUY A CONTRACT FOR FIVE YEARS.

YOU KNOW, THAT'S A LITTLE TOUGH.

AND THEN AGAIN, IF YOU HAVE THAT FIXED PRICE FIXED CONTRACT, YOU CAN'T TAKE ADVANTAGE AT ALL IN A FIVE YEAR CONTRACT IF TECHNOLOGY CHANGES AND THE PRICES FALL.

WHAT WE'RE DOING MOVING FORWARD IS CALLED SHP STRATEGIC HEDGING, ALTHOUGH HEDGING IS REALLY NOT THE RIGHT WORD HERE.

IT'S GOING TO BE FLEXIBLE.

IT TAKES ADVANTAGE OF THE MARKET.

WE CAN TAKE ADVANTAGE OF FALLING PRICES.

WE CAN ALSO LOCK INTO A LONGER CONTRACT IF THE MARKET CHANGES IN A NEGATIVE WAY OR IF THE CITY CHANGES ITS MIND.

PRICES ARE ONLY FIXED FOR ONE YEAR PERIODS.

AND AGAIN, YOU KNOW, MOVING FORWARD, WHAT WE'RE DOING IS INSTEAD OF BUYING A FIVE YEAR CONTRACT, WE'RE GOING TO BE BUYING ONE YEAR CONTRACTS FOR FIVE YEARS AND ROLL IT FORWARD.

SO ONE OF THE CONS OF THAT IS THAT, YOU KNOW, YOU GET A GREAT PRICE ONE YEAR.

THE NEXT YEAR, THE PRICE MIGHT BE A LITTLE BIT HIGHER, BUT WE STILL THINK IT'S GOING TO BE LOWER THAN IF YOU'D HAD THE FIVE YEAR CONTRACT.

AND I'LL EXPLAIN WHY ON THE NEXT SLIDE.

[00:25:03]

AND THE PATTERN IS BECAUSE WE ARE JUST AWASH IN NATURAL GAS AND OIL.

AND SO WHAT HAPPENS IS, IS THAT ABOUT TWO YEARS OUT AND THIS IS AN OLDER CHART, I APOLOGIZE. BUT SO WHAT HAPPENS IS, IS ABOUT TWO YEARS OUT, THE PRICES FALL TO THEIR LOWEST POINT, BECAUSE WHAT HAPPENS IS THE MARKET FEELS THAT ANY SHORT TERM PROBLEMS WILL BE RESOLVED. AND IF YOU'RE LOOKING FOR A CONTRACT LIKE RIGHT NOW, FOR RIGHT NOW, PRICES ARE EXTREMELY HIGH BECAUSE IT'S SUCH A QUICK TURNAROUND.

BUT IF YOU'RE LOOKING FOR A PRICE TWO YEARS OUT, WE'RE IN THAT TWO YEAR DIP.

WHAT HAPPENS IS YOU SEE THAT AS YOU KEEP GOING FURTHER OUT, THE PRICES GO NOWHERE BUT UP.

AND THE REASON FOR THAT IS BECAUSE NO ONE KNOWS WHAT'S GOING TO HAPPEN IN THOSE OUT YEARS. SO THEY WANT TO MAKE SURE THAT THEY DON'T LOSE MONEY.

SO WHAT THEY DO IS THEY ADD PRICE PREMIUMS ON THEM, BASICALLY THEIR INSURANCE.

AND WHAT HAPPENS WHEN YOU BUY A FIVE YEAR CONTRACT, YOU'RE ACTUALLY BUYING FIVE ONE YEAR CONTRACTS AND YOU'RE AVERAGING THEM TOGETHER.

SO YOU'RE PAYING THOSE PRICE PREMIUMS. WHAT WE'RE DOING MOVING FORWARD FOR OUR TWENTY THREE CONTRACT IS WE'RE ONLY BUYING ONE YEAR AT A TIME. SO THERE'S NONE OF THAT ADDITIONAL INSURANCE POLICY, THOSE PRICE HEDGES.

AND SO IT SAVES MONEY THERE.

WHAT WE'RE ALSO DOING IS WE'RE GOING OUT MONTHLY TO BUY ONE TWELFTH OF OUR LOAD OVER AN ENTIRE YEAR. THAT WAY WE'RE NOT PICKING THAT ONE DAY OF THE YEAR TO BUY ALL OF THE LOAD.

AGAIN, KIND OF LIKE DOLLAR AVERAGE DOLLAR COST AVERAGING.

YOU KNOW, YOU WANT TO PUT A LITTLE BIT ASIDE FOR RETIREMENT BECAUSE YOU DON'T WANT TO BUY IT ALL AT ONCE. IT COSTS TOO MUCH MONEY.

WE WENT OUT IN JANUARY, GOT SOME REALLY GOOD PRICES.

WE SKIPPED FEBRUARY BECAUSE OF THE STORM.

WE BOUGHT SOME IN MARCH.

WE HAVE TO MAKE FEBRUARY UP, BUT WE'RE KIND OF WAITING TO MAKE FEBRUARY UP.

WE GOT SOME GOOD PRICES IN MARCH AS WELL BECAUSE THE STORM WAS IN THERE, BUT NOT MUCH BECAUSE EVERYBODY KNOWS THEY'RE GOING TO FIGURE OUT THE STORM ISSUES IN TWO YEARS.

SO EVERYBODY FEELS MUCH MORE COMFORTABLE IN THAT TWO YEAR PERIOD.

AND AGAIN, IT'S GOING TO TAKE ADVANTAGE OF IF FOR SOME REASON, THE MARKET DIPS IN A MONTH. WE'LL BE ABLE TO TAKE ADVANTAGE OF IT BECAUSE WE'RE NOT ALL IN, IN ONE DAY.

IF FOR SOME REASON, LIKE WE'VE TOLD OUR CURRENT MEMBERS, THIS CURVE NO LONGER EXIST.

AND AGAIN, WE'RE LOOKING TWO YEARS OUT, WE'RE GOING TO COME TO ALL OF OUR MEMBERS AND SAY IT'S NOT THERE ANYMORE.

WE'RE CONVERTING YOU INTO A THREE YEAR CONTRACT OR A FIVE YEAR CONTRACT.

WE'RE LOCKING YOU IN BECAUSE THAT CURVE DISAPPEARED.

WE DON'T FORESEE THAT CURVE DISAPPEARING AGAIN, BECAUSE OF JUST ALL OF THE OIL AND NATURAL GAS WE HAVE IN TEXAS.

A LOT OF OUR MEMBERS RIGHT NOW ARE ASKING US ABOUT PRESIDENT BIDEN AND THE EFFECT OF ANYTHING HE DOES ON THIS.

WE'RE NOT SEEING ANY EFFECT OF THAT NOW.

BUT AGAIN, HE'S NOT DOING ANYTHING IN THE IN THE SHORT TERM THAT'S GOING TO AFFECT THIS.

BUT AGAIN, WE'RE WATCHING THIS YEAR TO YEAR.

THE OTHER THING IS, IS THAT EVEN THOUGH FRACKING WAS A BIG ISSUE AND IT REALLY LOWER RATES, WHAT WE SEE COMING DOWN THE PIKE IS BATTERIES.

AND WHEN BATTERY BACKUP GETS PUT ON THE GRIDS, WE ALSO THINK THAT PRICES ARE GOING TO DIP BECAUSE OF BATTERIES AS WELL.

AND WE'LL BE ABLE TO TAKE ADVANTAGE OF THOSE PRICE DIPS AS WELL.

NEXT SLIDE. SO THAT'S MY PRESENTATION KIND OF GAVE YOU A LITTLE BIT ABOUT WHO WE ARE IN OUR CONTRACTING.

IF I CAN, MAYOR, I'LL JUST JUMP RIGHT IN HERE.

AND BECAUSE I KNOW THAT QUESTION.

YEAH.

SHE'S ANSWERING A QUESTION FROM DIANA ABRAHAM, WHICH IS BASICALLY IN A SITUATION LIKE WE HAD IN FEBRUARY.

WILL YOUR AGENCY HELP US WHEN WE HAVE POWER FAILURES OR FREEZES OR A LACK OF POWER? UNFORTUNATELY, WE JUST DO THE CONTRACTS.

SO, YOU KNOW, WE CAN'T DO A LOT TO KEEP YOUR POWER ON.

WE ARE LOOKING AT A COUPLE OF THINGS.

LIKE I SAID, WE'RE WATCHING THE BILLS.

ONE OF THE THINGS WE DID AS AN ORGANIZATION IS WE MADE SOME COMMENTS TO THE PUBLIC UTILITY COMMISSION A COUPLE OF WEEKS AGO ON SOME OF THEIR PRICING MECHANISMS. I WON'T BORE YOU, BUT I'LL TRY AND MAKE THIS SHORT.

YOU'VE HEARD ABOUT THE NINE THOUSAND DOLLAR PRICE CAP? WELL, THERE'S ANOTHER CAP.

IT'S CALLED THE LOW END CAP.

WELL, DURING THE STORM, THE LOW END CAP ACTUALLY WENT TO TWENTY THOUSAND DOLLARS BECAUSE

[00:30:02]

EVERYBODY GOES, OH, WELL, THAT FORMULA WILL NEVER MAKE IT GO OVER TWO THOUSAND DOLLARS AND IT WENT TO TWENTY.

SO WE JUST PUT IN COMMENTS AND SAID, WHATEVER THAT FORMULA IS, IT CAN NEVER GO OVER TWO THOUSAND AND IT CAN NEVER GO OVER NINE THOUSAND.

YOU CAN'T HAVE A LOW CAP THAT EXCEEDS THE HIGH CAP.

SO WE PUT THOSE COMMENTS IN AS WELL.

WE'VE BEEN WATCHING WHAT'S GOING ON.

AGAIN, THIS IS STRICTLY FOR MUNICIPAL USE, THE ELECTRIC CONTRACT.

THERE ARE SOME AGGREGATORS FOR RESIDENTIAL THAT ARE OUT THERE THAT I CAN GIVE YOU THE INFORMATION THAT THERE ARE SOME, THERE'S SEVERAL OF OUR MEMBERS THAT HAVE JOINED THESE RESIDENTIAL SEGREGATION GROUPS WHERE THE CITY PASSES A RESOLUTION AND CITY RESIDENTS CAN SIGN UP INTO A POOL AND GET AGGREGATED ENERGY THAT WAY AS WELL.

WE ARE NOT ALLOWED TO DO THAT.

THE LAW DIDN'T ALLOW US TO OFFER ANYTHING TO RESIDENTS.

BUT ONE OF THE THINGS WE ARE LOOKING AT IS WE'RE LOOKING AT WAYS TO HELP OUR MEMBERS WITH BACKUP GENERATION, ANYTHING WE CAN DO TO HELP IN THAT SORT OF VEIN.

BUT, YOU KNOW, WHEN THE RUBBER HITS THE ROAD AND YOUR LIGHTS ARE OUT, NO, UNFORTUNATELY, THERE'S NOTHING TCAP CAN DO AT THAT POINT.

BUT I DO KNOW THAT YOU ALL ARE A MEMBER OF THE ONCOR STEERING COMMITTEE, AND THAT'S A REALLY GOOD GROUP AND STAYING IN TOUCH WITH ONCOR.

AND I KNOW THAT ONCOR HAS MADE A COMMITMENT TO WORK WITH ALL OF THE CITIES TO GET A LIST OF THE ESSENTIAL FACILITIES.

AND SO I KNOW THEY'RE WORKING ON THAT.

AND I THINK THERE'S SOME LEGISLATION THAT IS GOING IN THAT ALSO TALKS ABOUT WHAT IS ESSENTIAL BUSINESS. SO, AGAIN, WE'RE WATCHING THAT.

AND WE HOPE THAT WHATEVER COMES OUT OF THE LEGISLATURE OR THE PUBLIC UTILITY COMMISSION OR ERCOT WILL HELP MAKE SOME CHANGES AS WELL.

OKAY, QUESTIONS.

IT'S A LOT, I KNOW IT IS.

AND HONESTLY, I'M STARTING FROM SCRATCH, SO I WANT TO KIND OF COME BACK TO THE VERY BEGINNING OF WHAT KIND AND THIS IS KIND OF A QUESTION HERE.

WHAT KIND OF CONTRACT DO WE HAVE PRESENTLY? RIGHT NOW, OUR CURRENT CONTRACT GOES UNTIL OCTOBER OR SEPTEMBER 30TH, AND IT'S THROUGH GEXA.

AND IS THIS JUST THROUGH AND THE TERMS ARE STILL ALL GREEK TO ME.

BUT IS THIS JUST THROUGH THE RETAIL MARKET? I BELIEVE IT WAS PRIOR TO US COMING WHAT THEY HAD SIGNED. AND IT WAS A FIXED RATE FIVE YEAR CONTRACT.

AND I THINK THE CURRENT CONTRACT IS WHAT WAS IT AT 30 OR NOT 30? I WANT TO SAY THREE POINT SIX AND IT'S THREE POINT SEVEN, MAYBE THREE POINT EIGHT MIC]. OKAY.

AND EVEN WITH THAT, WE'RE ANTICIPATING OR WE'RE HOPING THAT THIS TCAP WILL HELP US TO LOWER OUR COST AS WELL.

YEAH, WHEN WE ACTUALLY HAD TCAP IN OAK POINT WHEN I WAS THERE AND WE ACTUALLY GOT ONE OF THE LOWEST RATES IN THE STATE BECAUSE WE WAITED A LITTLE BIT LONGER SIGNING A FIVE YEAR FIXED I THINK IT WAS A FIVE YEAR FIXED RATE.

FIVE YEAR FIXED. SO I THINK IT WAS JUST BELOW THREE CENTS OR RIGHT AT THREE CENTS.

THREE POINT THREE. THREE POINT THREE SO.

OK.

I CAN'T GUARANTEE THREE POINT THREE AT THIS RATE WITH THE WAY EVERYTHING IS WITH THE STORM. BUT AND I WILL SAY THAT WHAT WE'RE GOING TO DO IS WE'RE GOING TO GET WHAT'S CALLED A BRIDGE CONTRACT, GETS YOU FROM OCTOBER ONE OF THIS YEAR THROUGH DECEMBER 31ST OF NEXT YEAR, AND THEN ROLL YOU IN WITH THE BIG GROUP FOR TWENTY THREE.

SO YOUR PRICE MAY BE A LITTLE HIGH FOR THAT BRIDGE CONTRACT.

JUST TO GIVE YOU A LITTLE BIT.

IT JUST BUT WE'LL SEE.

I MEAN I HAVE SOME RIGHT NOW.

THE INDICATIVE PRICING IS THREE POINT EIGHT, BUT I HAVE ANOTHER CITY BECAUSE THEY NEED IT. WE TALKED ABOUT THIS.

THEY NEED IT FOR SUMMER AND THEY'RE LOOKING AT A FOUR POINT ONE RATE.

SO MOVING IT OFF THAT SUMMER DATE REALLY HELPED TO GET THE PRICES DOWN.

SO WITH RESPECT TO TCAP THERE WERE A LOT OF DIFFERENT FEES TALKED ABOUT IN THE AGREEMENTS.

YOU KNOW, THE FIRST YEAR ASSESSMENT IS IN ADDITION TO THESE RATES THAT YOU'RE TALKING ABOUT.

HOW TCAP IS FUNDED IS THAT WE HAVE AN AGGREGATION FEE THAT IS PUT ON FOR EACH KILOWATT.

SO WHAT HAPPENS IS IT'S POINT ZERO ZERO.

[00:35:06]

SO IT'S ONE POINT TWO MILLS OF A CENT AND THAT GETS PUT ON TO EVERYBODY'S ELECTRIC USE ON KILOWATTS. AND THEN THAT GOES BACK TO GEXA AND THEN GEXA REIMBURSES IT TO US.

THAT IS THE ONLY FEE FOR ALL OF OUR SERVICES.

IT TALKS ABOUT SPECIAL ASSESSMENTS, OTHER FEES AND EXPENSES AS POTENTIALLY GOING INTO OR BEING PAID BY THE MEMBERS.

I THINK THAT WAS JUST LAWYER LANGUAGE IN CASE SOMETHING CAME UP.

[LAUGHTER] BUT RIGHT NOW WE REALLY ARE JUST AT THAT AGGREGATION FEE.

AGAIN, OUR BOARD DOESN'T WANT TO ADD ANYTHING ELSE THAT THEY DON'T WANT TO TAKE BACK TO THEIR OWN CITIES TO TRY AND EXPLAIN.

OK, AND YOU MENTIONED THAT TCAP DOESN'T FOLLOW THE RED LINE.

THEY FOLLOW SOMETHING THEY DON'T FOLLOW THE ERCOT RED LINE.

AND SO FROM THAT PERSPECTIVE, Y'ALL AREN'T EXPERIENCING OR YOUR MEMBERS WON'T EXPERIENCE THOSE COST ISSUES THAT OTHER LIKE THE [INAUDIBLE], MOSTLY THE ONES THAT ARE REALLY SEEING THOSE RATES ARE IF YOU'RE ON A VARIABLE RATE, EVEN THOUGH WE'RE ONLY DOING ONE YEAR CONTRACTS, IT IS GOING TO BE A FIXED RATE FOR THAT YEAR.

SO IT WILL NOT BE A VARIABLE RATE.

BUT EVEN IF YOU WERE ON A TXU VARIABLE RATE, YOU'RE NOT GOING TO SEE WHAT GRITTY DID BECAUSE GRITTY AND I THINK THERE'S ONE OTHER COMPANY OUT THERE THEY'RE BUYING ON THE SPOT MARKET. SO WHAT HAPPENED IS THAT WHEN YOU TURN ON YOUR DISHWASHER, YOU'RE GETTING WHATEVER THE COST IS AT THAT EXACT MOMENT.

AND GRITTY ACTUALLY CHARGES YOU AS YOU USE IT.

THE LEGISLATURE HAS PUT BILLS IN THAT WOULD DENY ANY TYPE OF COMPANY LIKE THAT FROM OPERATING IN TEXAS OR IF THERE'S ANOTHER ONE, I THINK THAT'S DOWN THERE RIGHT NOW.

OR IF THEY DID THAT, THEY REALLY HAVE TO MAKE THE FINE PRINT REALLY BIG AND EXPLAIN THAT TO PEOPLE, THAT THEY COULD EXPERIENCE THOSE HIGHER RATES.

OK, BUT THE EFFECT OF THE STORM, YOU ARE SEEING SOME HIGHER RATES RIGHT NOW AND YOUR FAMILY MEMBERS ARE CURRENT MEMBERS ARE LOCKED IN AND THEY'RE NOT SAYING ANYTHING.

OK, EVEN WITH THIS AND I HATE THE WORD HEDGE, SO I KNOW YOU DESCRIBED IT DIFFERENTLY.

I KNOW. BUT EVEN WITH THAT, THEY LIKE I SAID, WE DIDN'T BUY ANYTHING IN FEBRUARY.

WE POSTPONED THAT.

MARCH IS UP A LITTLE BIT COMPARED TO WHAT WE SAW IN JANUARY, BUT NOT SIGNIFICANTLY.

NO.

AND THEN OTHER BUSINESS, OTHER ENTITIES WITH OTHER ELECTRIC COMPANIES ARE GOING TO SEE THE SAME THING.

TYPICALLY, IT DEPENDS ON THEIR CONTRACT, BUT.

YEAH.

AND I THINK YOU MENTIONED THIS, BUT I JUST WANT TO CLARIFY, WITH RESPECT TO THE POWER OUTAGES, TCAP CAN'T DOESN'T HAVE AN IMPACT ON THAT TCAP CAN'T HELP THAT KIND OF SITUATION. THAT'S KIND OF US MAKING SURE WE'RE REGISTERED AS AN ESSENTIAL, ESSENTIAL, ESSENTIAL FACILITY.

IT'S STILL USING ENCORE'S DISTRIBUTION DISTRIBUTION LINES.

IT'S WE'RE JUST PAYING OUR BILL TCAP WHO PURCHASES THE ELECTRICITY FOR US AND PUTS IT ON THE GRID FOR US. OK.

AND I'M SORRY, BUT I'VE GOT A QUESTION.

ABSOLUTELY. SO, YEAH, IT'S THE CITY IS A MEMBER AND WOULD BE, YOU KNOW, WOULD BE I MEAN, WE'RE TALKING ABOUT BECOMING A MEMBER, WHICH WOULD MEAN WE WOULD BE LIABLE FOR UNEXPECTED COST. YEAH.

I THINK IT'S IMPORTANT THAT WE LEARN MORE ABOUT, YOU KNOW, WHAT THE FINANCIAL PICTURE LOOKS LIKE OF TCAP READING.

AGAIN, READING THE DOCUMENT INDICATES THAT THERE'S TWO YEARS OF RESERVES MAINTAINED AND THINGS LIKE THAT. BUT I THINK, YOU KNOW, COST SUCH AS.

YEAH, WHAT'S THE TOTAL EXPENDITURES PER YEAR FOR EACH LIKE FOR EACH OF THE LAST THREE YEARS AND TO GET AN IDEA OF WHAT KIND OF COSTS ARE COMING THROUGH THIS? AND NOW, AGAIN, YEAH, MAYBE PART OF.

A PIECE OF THAT PUZZLE IS THE FACT THAT IF SOMEBODY WERE TO LEAVE, THEY HAVE PENALTIES THAT THEY WOULD HAVE TO PAY SO THAT THOSE COST WOULD BE CARRIED BY THOSE PEOPLE THAT ARE

[00:40:04]

BUT I'M JUST.

YEAH, WANTING TO MAKE SURE OF THE FINANCIAL STABILITY OF THE COMPANY AND I KNOW YOU'RE SAYING, YEAH, I KNOW IT'S ALL IN THIS TOGETHER.

I'LL BE HAPPY TO GO THROUGH THAT REAL QUICKLY.

WE'RE A SMALL COMPANY.

I'M THE ONLY FULL TIME EMPLOYEE WE HAVE.

WE HAVE TWO PART TIME EMPLOYEES.

ONE IS STRICTLY OUR OFFICE ACCOUNTS PAYABLE PERSON.

SHE'S PART TIME. AND THEN I JUST GOT TO HIRE A INTERN AT A UTI.

SO EXCITED ABOUT THAT.

OUR BUDGET IS ONE POINT THREE MILLION A YEAR.

WE'RE A BALANCED BUDGET.

AGAIN, WE'RE STRICTLY FINANCED OFF OF THOSE AGGREGATION FEES.

SO IF THE BOARD LOWERS THE AGGREGATION FEE, OUR BUDGET HAS TO GET LOWERED.

THE OTHER THING WE DO IS ONE OF THE THINGS THAT IS PART OF THE BUDGET OR PART OF THE CONTRACT, WHICH I DIDN'T GO INTO, IS THERE'S WHAT'S BASICALLY CALLED IN SALARY SERVICES.

THOSE ARE BASICALLY CONGESTION COSTS.

AND HOW TCAP HAS STRUCTURED ITS CONTRACT, WHICH AGAIN, IS VERY DIFFERENT WHEN YOU GO IT'S IN EVERYBODY'S CONTRACT.

IT'S IN YOUR RESIDENTIAL CONTRACT, IT'S IN EVERYBODY'S CONTRACT.

BUT WHAT HAPPENS IS NOBODY KNOWS WHAT ANCILLARY SERVICES ARE GOING TO BE ONE MONTH TO THE NEXT. SO MOST COMPANIES JUST PUT IN A VERY HIGH COST.

AND IF ANCILLARIES COME IN HERE, THEY KEEP THE DIFFERENCE.

WE RIDE IT INTO OUR CONTRACT THAT EVERY QUARTER THOSE THOSE COSTS HAVE TO BE TRUED UP BECAUSE WE WANT OUR MEMBERS TO PAY ACTUAL COSTS.

SO WHAT WE PUT INTO OUR CONTRACT IS WHAT WE THINK IT'S GOING TO BE.

AND THEN WE DREW IT UP.

WE'VE BEEN DOING THIS FOR GOES BACK TO, I THINK TWENTY, FOURTEEN EVERY QUARTER WE EITHER GET A REFUND CHECK FROM JAXA OR WE PAY SOMETHING AGAIN.

THAT'S US PAYING IT.

WHEN WE WE KEEP THE REFUNDS IN BASICALLY AN ESCROW FOR A COUPLE OF YEARS.

IF WE GET A BILL, WE PAY IT.

WE DON'T COME BACK TO YOU AGAIN, KEEPING YOUR BUDGETS AS STABLE AS POSSIBLE.

IF WE DON'T AFTER TWO YEARS, IF WE DECIDE WE'RE GOOD, WE DON'T NEED THAT MONEY.

IF IT'S THE POTS GETTING TOO BIG, WE REFUND IT BACK TO OUR MEMBERS AGAIN.

BASED ON THE NUMBER OF KILOWATTS EACH MEMBER BOUGHT DURING THAT YEAR.

WE'VE BEEN PAYING THE ANCILLARY SERVICES ACTUALLY FOR THE LAST COUPLE OF YEARS BECAUSE THE MARKET HAS BEEN CRAZY.

SO WE I CAN'T SAY WE HAVEN'T COME BACK TO OUR MEMBERS BECAUSE IN THE SOUTH ZONE, IN THE WEST ZONE, THOSE COSTS HAVE SKYROCKETED AND WE HAVE HAD TO PUT A TEMPORARY SURCHARGE ON THOSE MEMBERS. AGAIN, IT'S TEMPORARY.

AS SOON AS WE CAN GET IT EVEN OUT, WE'RE GOING TO TAKE THAT SURCHARGE OFF.

BUT AGAIN, WE'RE TRYING TO KEEP EVERYBODY'S BUDGET AS STABLE AS POSSIBLE.

AGAIN, THAT'S WHAT OUR RESERVES ARE.

ARE THOSE FUNDS WE DO HAVE? I THINK RIGHT NOW WE HAVE I SHOULD KNOW THIS.

NO, WE HAVE NOT QUITE THREE MILLION DOLLARS IN RESERVES.

SO THINGS LIKE THE ENERGY MANAGER IS PAID THROUGH THE ENERGY COSTS.

YES. OK, OK, SO THAT WAS YOUR YOUR PRESENTATION WAS VERY, VERY HELPFUL AND HONESTLY ANSWERED A GOOD MANY OF THE QUESTIONS AND IT'S STILL A LOT OF GREEK.

BUT BUT AT LEAST THE TERMS MADE A LITTLE MORE SENSE AFTER YOU EXPLAINED THAT.

I APPRECIATE IT. I HAVE A COUPLE OF QUESTIONS ON THE CITY'S END WITH RESPECT TO THE WITH RESPECT TO THE RESOLUTION.

ONE OTHER THING IT TALKS ABOUT IN THE IN THE AGREEMENT IS THESE FUTURE PROJECT ADDENDUMS FOR POWER, WHETHER THEY CALL POWER.

THESE THINGS CALLED POWER PROJECTS, PARTICIPATION IN POWER PROJECTS.

SO WE WHAT WE DID IS THE PROFESSIONAL SERVICE AGREEMENT IS ACTUALLY A NEW AGREEMENT FOR US. WE NEVER HAD ANY OF OUR MEMBERS SIGNED THAT BEFORE.

WE USUALLY JUST TOOK THEIR JOINING RESOLUTION.

BUT DOING THIS NEW PURCHASING ONLY BUYING A YEAR AT A TIME, THE PROVIDERS NEED TO KNOW THAT, YOU KNOW, THAT OUR MEMBERS ARE ALL IN.

I MEAN, YOU KNOW, LIKE I SAID, SOME OF OUR MEMBERS GO BACK TO 2001.

SO DUSTING OFF A 2001 JOINING DOCUMENT DOESN'T GIVE THEM A WHOLE LOT OF CONFIDENCE THAT THEY'RE STILL A MEMBER OF T CAP 20 YEARS LATER.

THEY WROTE INTO THAT A LOT OF THINGS THAT COULD COME UP AGAIN.

WE HAVE A LOT OF MEMBERS THAT HAVE DIFFERENT NEEDS.

[00:45:01]

WE'VE HAD MEMBERS THAT WE'VE HELPED WITH.

WE ACTUALLY HAVE ONE MEMBER WHO HAS A WIND TURBINE ON THE TOP OF THEIR WATER TREATMENT PLANT OR PUMP STATION.

AND SO, YOU KNOW, THOSE TYPE OF THINGS THAT COME UP, YOU KNOW, ALL THE CITY HAS TO DO IS CALL. WE CAN WORK THROUGH IT IF THERE'S ANYTHING LIKE THAT.

BUT AGAIN, TRYING TO PUT THINGS IN THERE THAT, OK, IF THIS COMES UP IN THE FUTURE, THAT'S A GOOD THING. WHAT WE'RE DOING IN OUR FUTURE CONTRACTS IS WE'RE ALSO GOING TO BUY RENEWABLE ENERGY CREDITS, WHICH MEANS THAT A CITY CAN CLAIM THEY'RE 100 PERCENT RENEWABLE. WE'RE NOT GOING TO BUY NECESSARILY RENEWABLE ENERGY BECAUSE IF YOU BUY STRICTLY RENEWABLE ENERGY, YOU HAVE TO BUY ALMOST TWICE AS MUCH AS YOU NEED AND SELL IT BACK INTO THE MARKET, WHICH MEANS IF YOU'RE SELLING IT BACK INTO THE MARKET, YOU COULD TAKE A HUGE LOSS.

AND IF YOU WANT ANY MORE INFORMATION ON THAT, JUST GOOGLE GEORGETOWN, BECAUSE THAT'S WHAT THEY DID. AND SO BUT IF YOU BUY THE RENEWABLE ENERGY CREDITS, IT'S STILL CONSIDERS YOU 100 PERCENT GREEN.

AND THOSE ARE VERY SMALL PORTION OF WHAT WE'RE ROLLING IN FOR THESE.

SO IT'S A LOT OF DIFFERENT OF THESE PROJECTS.

OK, SO THANK YOU FOR THAT.

AND SO MY QUESTION TO THE CITY IS, WITH RESPECT TO THE RESOLUTION, SHOULD THERE BE SOMETHING IN THE RESOLUTION THAT SAYS IF THERE IS AN ADDENDUM, IT MUST COME TO THE COUNCIL FOR APPROVAL RATHER THAN AS I READ THE THE RESOLUTION, WE'RE GIVING THE CITY FULL OPPORTUNITY TO DO ANYTHING ONCE THEY HAVE A CONTRACT ABOUT HOW THE LANGUAGE ABOUT POWER PROJECTS IN THE IN THE AGREEMENT IS SAYING IF IN POWER PROJECT IS DEFINED AS A FUTURE PROJECT TO GET POWER.

SO IT'S LIKE SHE SAID, A WIND TURBINE OR THROUGH A BUNCH OF SOLAR PANELS INTO THE BUILDING. IF WE DO THAT PROJECT THROUGH TCAP, IT WILL REQUIRE AN ADDENDUM TO THIS AND THAT WOULD COME BEFORE COUNCIL.

SO THAT WOULD WOULD BE REQUIRED.

OK. THE OTHER THING IS AND AGAIN, WHEN I FIRST READ THIS, I WAS I WAS HEARING HEDGING IN MY HEAD, SO MAYBE MY MIND'S A LITTLE BIT DIFFERENT, BUT I'M GOING TO STILL THROW OUT THE THOUGHT IS THAT, YOU KNOW, WHEN THE TYPE OF AGREEMENTS ARE CHANGED, YOU KNOW, IF YOU GO FROM A FIXED FIXED PRICE TO A WHEN THE TERMS OF THE CONTRACT.

BE. SHOULD THAT. YEAH.

AND IS THAT PROPERLY REFLECTED IN THE RESOLUTION? I BELIEVE SO. THIS WHOLE THING'S REALLY IT IS KIND OF CONFUSING.

IT'S, IT'S STILL A FIXED RATE.

THEY'RE JUST PURCHASING THAT FUTURE RATE ONE MONTH AT A TIME AND ATTACHING THOSE MONTHS TO A TWO YEAR CONTRACT IN TWO YEARS.

AND THEY'RE NOT LITERALLY HEDGING.

NO, NO, NO.

WELL, WHAT WE'RE DOING, AGAIN, BECAUSE IT'S HARD TO PICK THAT ONE DAY OUT OF THREE HUNDRED AND SIXTY FIVE TO GET A LOAN TO GET THE BEST RATE.

SO WE'RE BUYING EVERY MONTH TO TAKE ADVANTAGE OF IT.

AT THE END OF THE YEAR, WE'RE GOING TO AVERAGE THOSE PRICES TOGETHER, ADD IN ALL THE ERCOT CHARGES AND PUC CHARGES.

AND THEN WHAT'S GOING TO HAPPEN IS IN MARCH OF NEXT YEAR, WE'RE GOING TO GO BACK TO EVERYBODY AND GO, HERE'S YOUR ONE YEAR PRICE FOR 2023.

SO ALL OF OUR MEMBERS WILL KNOW IN PLENTY OF TIME BEFORE BUDGETS START WHAT THEIR PRICES . THERE ARE WE OUT OF OUR 100 AND WELL WE HAD 166 MEMBERS AND WE STARTED 156 OF THEM HAVE ALL JOINED INTO THIS PROGRAM.

THE OTHER 10 FOR VARIOUS REASONS ARE JUST GOING TO TAKE A FIVE YEAR CONTRACT.

THE GOOD NEWS IS, IS THAT ESPECIALLY FOR THE FINANCE DIRECTORS.

WE'LL KNOW WHAT THAT FIVE YEAR PRICE IS, SO YOU'LL HAVE A BENCHMARK EVERY YEAR TO KNOW, OK, IF WE'D TAKEN THE FIVE YEAR CONTRACT, THE PRICE WOULD HAVE BEEN THIS.

BUT OUR SHP PRICE IS THIS.

AND WE'RE PRETTY SURE THAT EVEN IF IT GOES UP A LITTLE ONE YEAR, IT'S STILL GOING TO BE LOWER THAN THAT FIVE YEAR CONTRACT.

SO WE'LL BE GIVING THAT INFORMATION OUT TO OUR MEMBERS EVERY YEAR AS WELL, KIND OF THAT BENCHMARK. SO YOU KIND OF KNOW WHERE YOU ARE ON PRICING.

THE ONE THING, MARY, REAL QUICK, ALL OF IT.

AND IF I REMEMBER TONIGHT, YOU'RE JUST PASSING ALL THE JOINING RESOLUTIONS.

THE NEXT THING WOULD BE THE CONTRACTS, THE CONTRACT.

THERE'S GOING TO BE THE ONE CONTRACT THAT WILL GET YOU FROM OCTOBER 1, 2021 THROUGH DECEMBER 31ST, 2022.

[00:50:03]

AND AGAIN, THE SHP ALLOWS BECAUSE WE'RE ONLY BUYING ONE YEAR AT A TIME, TWO YEARS IN ADVANCE, AND THE FLEXIBILITY ALLOWS SO THAT WE CAN CANCEL THAT CONTRACT WITHOUT ANY PENALTIES BECAUSE YOU JUST HAVE TO WAIT UNTIL THE CONTRACT RUNS OUT.

SO WE'RE EXCITED ABOUT THAT.

YOU KNOW, WE'VE POINTED OUT TO OUR MEMBERS THAT IF YOU GET INTO THIS OR COUNCIL CHANGES AND GOES, NOPE, WE WANT A FIVE YEAR CONTRACT, YOU ONLY REALLY HAVE TO WAIT ABOUT A YEAR AND A HALF. WE'VE ALREADY BOUGHT THAT POWER.

AND THEN WE'LL CONVERT YOU TO A FIVE YEAR CONTRACT AGAIN.

IF FOR SOME REASON WE SEE THE MARKET CHANGING, WE'LL DO THE SAME THING.

OUR CONTRACTS ARE THE SAME.

THE ONLY THING DIFFERENT ON THE SHP VERSUS THE FIXED CONTRACT WE'RE GOING TO GET YOU IS IT DOES TALK ABOUT THAT PURCHASING THAT ENERGY MANAGER AND THERE'S NO FIXED PRICE IN THAT CONTRACT. AND SO, AGAIN, THE LANGUAGE IS THE SAME.

THE PROTECTIONS FOR THE CITIES ARE THE SAME.

AND ALL THOSE CONTRACTS, BECAUSE, AGAIN, WE'RE MORE ABOUT WE WANT TO MAKE SURE THAT THE LANGUAGE PROTECTS THE CITIES AND THAT NO, YOU KNOW, FINE PRINT IS GOING TO GET YOU WHEN YOU LEAST EXPECT IT.

THIS WOULD BE IN THE BUDGET FOR THE BUDGET HEARINGS.

YES, NO. WHAT DO YOU MEAN BY THE NUMBERS? YEAH, YEAH, WE'LL HAVE NUMBERS.

I THINK MARGARET SAID YOU SAID BY MARCH OF THE YES.

YEAR FOR THE BUDGET PURPOSES.

SO WE'LL HAVE MORE THAN ENOUGH TIME BECAUSE WHAT THEY'RE DOING NOW AND GOING TO TRY TO BREAK IT DOWN, REAL SIMPLE TERMS FOR MARGARET IS RIGHT NOW, THEY'RE LOOKING AT THE MARKET TWO YEARS IN ADVANCE.

THEY'RE BUYING ONE DAY EACH MONTH, ALLEGEDLY EACH MONTH BECAUSE OF WHAT HAPPENED FEBRUARY, CERTAIN DAYS FOR THAT CONTRACT TWO YEARS FROM NOW.

SO THEY'RE LOOKING AT IT, LET'S SAY, JANUARY 12TH.

THAT'S WHEN THEY PURCHASED ELECTRICITY FOR JANUARY OF 2023.

WELL, NO, ACTUALLY, IT'S ONE TWELFTH OF THE WHOLE YEAR FOR ONE TWELFTH.

YES, FOR THE WHOLE YEAR.

FOR THAT WHOLE YEAR.

SO EACH MONTH THEY PURCHASE SOMETHING FOR EACH, FOR EACH MONTH.

IS WHAT THEY DO. DOES THAT MAKE SENSE THEY AVERAGE IT SO BECAUSE EVEN THOUGH PRICES TEND TO BE LOWER IN THE SPRING, YOU KNOW, WE CAN SEE PRICES BOTTOM OUT FOR VARIOUS DIFFERENT REASONS IN THE FALL AND ALL OF A SUDDEN FALL PRICES MAY BE LOWER THAN SPRING, WHICH IS WHAT HAPPENED IN OAK POINT.

WE DIDN'T THINK THE PRICES WERE GOING TO BOTTOM OUT IN THE FALL.

SO WE BOUGHT OUR CONTRACT IN THE SPRING.

AND AGAIN, PRICES BOTTOMED OUT IN THE FALL.

SO WE'LL BE ABLE TO AVERAGE THAT AND WE'LL BE ABLE TO TAKE ADVANTAGE IF THE PRICES BOTTOM OUT IN THE FALL. SO IT'S NOT JUST THAT ONE DAY FOR EVERYTHING.

AND GENERALLY, ANY TIME THERE IS A CHANGE, ESPECIALLY A MAJOR CHANGE IN ANY CONTRACT, IT COMES BACK TO COUNCIL, YOU KNOW, JUST.

OH, YEAH. AND THEN WE WOULD HAVE TO TALK ABOUT THIS IN THE BUDGET TO MAKE SURE THAT WE TAKE CARE OF IT OR NOT AS THE CASE MAY BE.

SO I UNDERSTAND THE BRIDGE CONTRACT THAT'LL COVER US FOR THE END OF THE YEAR ONCE IT STARTS AT THE END OF OUR CONTRACT.

BUT YOU CAN'T TELL US WHAT THE RATE WILL BE ON THAT.

BUT WE'RE PASSING A RESOLUTION TO GO AHEAD AND JOINS SO NO MATTER WHAT WE'RE TIED TO, WHATEVER THAT RATE IS GOING TO BE.

WELL, AGAIN, I COULD IF YOU SIGNED A CONTRACT TODAY, IT WOULD BE GENERALLY 3.8 CENTS.

THAT'S AN INDICATIVE PRICE.

IT'S NOT YOU KNOW, EVERYTHING IN THAT'S GENERALLY WHAT IT IS.

IF YOU SIGNED A CONTRACT TODAY, TECHNICALLY YOU CAN JOIN US.

IF YOU NEVER SIGN A CONTRACT, THERE'S NOT A LOT WE CAN DO ABOUT IT.

I MEAN, IF TO BE HONEST, BECAUSE YOU'RE NOT APPROVING THE CONTRACTS, THE TERMS OF THE AGREEMENT ARE WE'RE ONLY MEMBERS AS LONG AS THERE'S CONTRACTS THAT THEY'VE NEGOTIATED FOR US THAT WE'RE UNDER AND WE GET TO REVIEW THOSE BEFORE WE JOIN ON.

AND I GUESS I'M TRYING IN THIS IS SOME OF THIS IS A LITTLE GREEK, AND TERRY DID A GOOD JOB OF ASKING A LOT OF THE QUESTIONS THAT I WAS THAT I HAD HERE, OR YOU ANSWERED THEM WHILE ANSWERING SOME OF HERS. BUT I UNDERSTAND WHAT YOU'RE TALKING ABOUT AS FAR AS IT'S A ONE YEAR CONTRACT BASICALLY WITH YOU GUYS AT A TIME.

BUT YOU MENTIONED IN THE PRESENTATION, UNLESS YOU ALSO SAW THAT THE RATES ARE GOING TO SKYROCKET UP AND THEN YOU WOULD CONVERT IT TO A THREE YEAR, WOULDN'T THAT HAVE TO COME BACK TO US AGAIN TO DO THAT? NO, IT WOULD. WE WOULD WE WHAT WOULD HAPPEN IS IF WE SAW THAT CURVE DISAPPEAR, IF THOSE

[00:55:05]

WE WOULD COME BACK TO ALL OF OUR MEMBERS AND GO, LOOK, THAT CURVE'S NOT THERE ANYMORE.

PRICES ARE GOING UP.

WE'RE NOT GOING TO CONTINUE THIS PROGRAM BECAUSE WE KNOW IT'S GOING TO END UP COSTING YOU ALL MORE MONEY. HERE'S A THREE YEAR CONTRACT WE'RE CONVERTING.

PLEASE APPROVE IT.

LET'S GET IT MOVING.

LET'S GET IT SIGNED.

AND IF THAT WERE TO HAPPEN, YOU WOULD BE ABLE TO DO AND THIS IS SPECULATION, OBVIOUSLY, THE THREE YEAR CONTRACT CLOSER TO THE RATE WE WOULD BE PAYING TODAY, NOT IF IT WENT FROM 3.8 CENTS. AND YOU'LL LOOK OUT NEXT MONTH, THEY'RE FORECASTING 7.8 CENTS.

THEN YOU WOULD BE ABLE TO DO THE THREE YEAR CONTRACT AT THE LOWER RATE AT THAT POINT, BASICALLY TO SAVE US FROM OURSELVES? YES.

AGAIN, YOU KNOW, OUR BOARD IS NOT GOING TO APPROVE ANYTHING THAT'S GOING TO COST THEM MONEY EITHER. AND AGAIN, OUR WHOLE PURPOSE IS TRYING TO SAVE CITIES MONEY.

YOU KNOW, MY BACKGROUND IS TO GIVE YOU I WORKED FOR THREE DIFFERENT CITIES IN THE METROPLEX. WE'RE ALL LIKE I SAID, I HAVE AN MBA, U.A.

STUDENT, MY OFFICE PERSON WORKED FOR THE CITY OF RICHARDSON FOR 33 YEARS.

SO WE GET IT.

WE KNOW WHAT IT'S LIKE TO BE IN CITY HALL AND WHAT IT MEANS.

PARKER AT THE END OF THE DAY, HOW DID WE BECOME ASSOCIATED WITH YOU GUYS? DID YALL SOLICIT US? DID WE REACH OUT TO YOU GUYS.

LUKE REACHED OUT TO ME BECAUSE OAK POINT WAS A MEMBER.

JUST TO LET YOU KNOW, SOME OTHER OF YOUR NEIGHBORS THAT ARE MEMBERS OF THE CITY OF ALLEN, WYLIE, WHO ELSE WHO ELSE IS OVER HERE? WYLIE NO LUCAS IS IN A CO-OP, SO WE CANNOT HELP ANYONE THAT IS IN A MUNICIPALLY OWNED UTILITIES OR COOPERATIVE.

SO BUT PLANO WAS A MEMBER OF T CAP, BUT THEY CHOSE TO GO OUT ON THEIR OWN.

AGAIN, THE RATE THAT WE HEARD THEY GOT IS HIGHER THAN IF THEY'D STAYED WITH US.

SO THE LAST QUESTION, JUST BECAUSE THIS IS A MEMBERSHIP BASED ORGANIZATION, WOULD PARKER I'M ASSUMING WE WOULD BE PROBABLY YOUR SMALLEST OR ONE OF YOUR SMALLEST MEMBERS OR YOU HAVE PEOPLE SMALLER THAN US? I HAVE PEOPLE SMALLER THAN YOU.

I HAVE JUST TO GIVE YOU A HEADS UP, I HAVE THE SAN PATRICIO CENTRAL APPRAISAL DISTRICT.

WE DO THEIR OFFICE BUILDING.

SO I HAVE A LOT OF SMALL CITIES.

WE HAVE IOWA COLONY DOWN NEAR HOUSTON.

WE HAVE HOWE UP THE ROAD WE HAVE FARMERSVILLE.

BUT THEN WE ALSO HAVE SOME OF THE BIGGER CITIES WE HAVE.

LIKE I SAID, WE HAVE PLANO OR NOT, PLANO, ALLEN, WE HAVE FRISCO, WE HAVE NORTH RICHLAND HILLS. WE'VE GOT OUR LARGEST CITY IS CORPUS CHRISTI.

SO AND THEN WE ALSO WE HAVE A LOT OF DIFFERENT.

WE HAVE THE UPPER LYON RIVER MUNICIPAL WATER DISTRICT, WHICH IS OUT IN COMANCHE.

WE HAVE THE MCALLEN HOUSING AUTHORITY, WE HAVE HIDALGO COUNTY.

WE'VE GOT THE CORPUS CHRISTI REGIONAL TRANSIT AUTHORITY.

SO A GOOD VARIABLE OF DIFFERENT ORGANIZATIONS.

THANK YOU.

YEAH, SO YOU HAVE ORGANIZATIONS, BUT EVERYTHING EXCEPT RESIDENTIAL, EVERYTHING EXCEPT RESIDENTIAL, YOU HAVE TO BE A POLITICAL SUBDIVISION TO BE A MEMBER OF TCAP.

OK, WOULD YOU GO BACK THREE SLIDES TO THE PROS AND CONS OF MY MIND AND IT'S ALREADY GOING TO HAVE TO DO WITH THE BROKEN PRICING REFLECTS THE ONE YEAR PERIOD ONLY. SO IT'S ONLY FOR ONE YEAR.

YES. THANK YOU.

ANY FURTHER QUESTIONS? THANK YOU VERY MUCH. YOU'RE WELCOME.

OK, COUNCIL, ANY FURTHER DISCUSSION ON THE TICKET? WHAT WOULD YOU LIKE TO DO AT THIS TIME? LOOK, IS THERE ANY COMMENT? I DON'T MEAN TO CUT YOU OFF? I'VE USED THEM BEFORE.

I'VE NEVER HAD A PROBLEM WITH TCAP.

OTHER THERE IN OAK POINT THEY QUITE REGULARLY KEPT CALLING US, SAYING, HEY, YOU NEED TO GET CONTRACTS OR SOMETHING APPROVED OR THEY DO KEEP US VERY INFORMED.

I DO KNOW A COUPLE OF THE BOARD MEMBERS.

I WOULD HAVE NO ISSUES PERSONALLY WITH THOSE PEOPLE.

[01:00:02]

SO NOW'S THE TIME.

OUR CONTRACT IS RUNNING UP AND BRINGING THEM ON BOARD JUST SEEMS TO MAKE SENSE.

AND WHEN WE DID HAVE A REAL LOW RATE POINT AND IT DIDN'T AFFECT US AT ALL, SO WE HAD TO ASK LUKE THAT WHEN WE GOT NEAR TO ENDING OUR TIME PERIOD WITH JEXA SO THAT WE GO OUT FOR[INAUDIBLE] WHATEVER TO LOOK AT THE DIFFERENT THINGS THAT MIGHT BE AVAILABLE TO THE CITY TO SEE IF WE CAN DO BETTER INSTEAD OF PUTTING AN RFP TOGETHER JUST FOR OUR CITY.

AND WE'RE GOING TO BE A SMALL MINUET COMPARED TO GOING WITH, YOU KNOW, TCAP, WHO'S GOT THE ATTORNEYS ON STAFF AND EVERYTHING, NOT ON STAFF, BUT CONTRACTED THAT GOES THROUGH THOSE LANGUAGES, UNDERSTANDS THOSE LANGUAGES A LOT BETTER THAN I DO.

I HAVE ENOUGH FROM RUNNING AN ELECTRIC UTILITY TO BE DANGEROUS WITH, BUT I WOULD NOT TRUST ME TO MAKE SURE I GOT EVERY FINE POINT.

SO NO.

WELCOME ANY FURTHER COMMENTS OR IF NOT, I WILL TAKE A MOTION.

I'LL MAKE THE MOTION TO APPROVE RESOLUTION NUMBER 221-664, APPROVING THE CERTIFICATE OF FORMATION AND BYLAWS OF THE TCAP POLITICAL SUBDIVISION CORPORATION, ACCEPTING MEMBERSHIP AND SAID CORPORATION AND APPROVING THE PROFESSIONAL SERVICES AGREEMENT AS OUTLINED ON THE AGENDA.

OK, THANK YOU, SIR.

OK, IS THERE A SECOND? I'LL SECOND. OK, WE HAVE A MOTION BY COUNCIL MEMBER SLAUGHTER AND THE SECOND BY MAYOR PRO TEM STANDRIDGE THAT WE APPROVE RESOLUTION NUMBER 221-664 APPROVING THE CERTIFICATE, INFORMATION AND BYLAWS OF A TCAP POLITICAL SUBDIVISION CORPORATION ACCEPTING MEMBERSHIP SAID CORPORATION APPROVING THE PROFESSIONAL SERVICES AGREEMENT.

OK, I KNOW.

OK. ANY FURTHER DISCUSSION? IF NOT, I WILL CALL FOR YOUR VOTE.

ALL THOSE IN FAVOR, PLEASE RAISE YOUR RIGHT HAND.

ALL THOSE AGAINST.

OK. MOTION CARRIES 3-0 THANK YOU.

THANK YOU MA'AM. WE APPRECIATE YOU.

OK. YEAH, OK, NEXT, WE HAVE FUTURE AGENDA ITEMS, I BELIEVE, MR.

[4. FUTURE AGENDA ITEMS]

SO WE DID MEET LAST MONTH AND WE WERE DISCUSSING THE DIFFERENT OPTIONS AS FAR AS COMPREHENSIVE PLANS. WE ALSO LOOKED AT WE DISCUSSED OTHER CITIES, COMPREHENSIVE PLANS, THE PROCESS IN WHICH TO DEVELOP ONE.

WE'RE MADE AWARE OF A SURVEY THAT WAS DONE UNDER MAYOR Z MARSHALL THAT WE WERE ABLE TO LOCATE DURING THE MEETING, WHICH WAS EXCELLENT.

I HAVE TO APPLAUD LUKE FOR FIGHTING TO GET LITERALLY IN TWO SECONDS WHEN WE WERE NOT AWARE IT WAS A SURVEY MONKEY AND HAVE KIND OF STARTED DELVING INTO THE NEXT STEPS.

A COMPREHENSIVE PLAN IS VERY DETAILED.

THERE ARE A LOT OF SURVEYING REQUIREMENTS, A LOT OF MAPPING REQUIREMENTS.

AND SO NOW WE ARE DISCUSSING WHAT RESOURCES DO WE NEED TO MOVE FORWARD, SUCH AS IS IT TIME TO START LOOKING AT BRINGING IN, SAY, AN ENGINEER, NOT NECESSARILY OUR ENGINEER, BUT ONE THAT SPECIALIZES IN THIS.

AND MR. OLSEN KINDLY SAID THAT HE KNEW OF A COUPLE OF GROUPS.

SO HE WAS GOING TO GIVE ME SOME IDEAS ON PRICING THAT WE CAN DISCUSS BECAUSE WE DO NOT HAVE EVEN A GENERAL IDEA OF A COST OF BRINGING SOMEBODY ON FOR THAT.

AND I THINK THAT'S A HUGE PART BEFORE WE DECIDE ON THE NEXT STEPS.

BUT WE WERE BASICALLY BREAKING IT DOWN AND THERE'S A LOT OF SURVEYING REQUIREMENTS OF THE CITIZENS. THERE'S A LOT OF MEETING REQUIREMENTS THAT GO INTO IT BECAUSE WE ARE LOOKING TO OVERHAUL THE ENTIRE ORIGINAL COMPREHENSIVE PLAN, NOT TOUCH THE THREE PAGE AMENDMENT THAT WAS DONE JUST A FEW YEARS BACK.

SO, MICHAEL, CAN YOU TELL ME A LITTLE BIT MORE ABOUT WHAT EXPECTATIONS YOU THINK ARE GOING TO BE NEEDED FOR THE ENGINEERS AND WHY? WELL, THAT'S WHAT WE'RE LOOKING INTO, IS WHAT EXACTLY DO THEY BRING TO THE TABLE? SO EVERY COMPREHENSIVE PLAN THAT HAS BEEN DEVELOPED IS DEVELOPED BY AN ENGINEER AND OR AN ENGINEERING FIRM, RATHER.

YEAH. OR AN ENGINEERING FIRM, RATHER, NOT NECESSARILY AN ENGINEER, BECAUSE THERE'S SEVERAL DIFFERENT ASPECTS THAT GO INTO THAT.

[01:05:02]

THERE ARE SPECIFIC WAYS IN WHICH TO GATHER SAID INFORMATION.

AND THEN AS YOU'RE PHYSICALLY TYPING OUT THE COMPREHENSIVE PLAN, THERE ARE SPECIFIC STYLINGS AND MAPS THAT HAVE TO BE INCLUDED.

AND SO WE'RE LOOKING AT THE OPTIONS OF DOES IT MAKE MORE SENSE TO BRING ONE ON AT THIS POINT? DOES IT MAKE MORE SENSE TO CONTINUE ON OUR PATH OF DISCUSSING WHICH WE HAVE A GOOD IDEA AS A GROUP, WHICH SECTIONS REALLY, TRULY MATTER? YOU KNOW, WE'VE DISCUSSED IT EVERY TIME.

IT'S THE ORIGINAL SURVEY THAT WAS DONE IN 1983.

I BELIEVE THE DATE WAS I DON'T HAVE IT RIGHT HERE IN FRONT OF ME, SO DON'T QUOTE ME.

THE CITIZENS HAD A COUPLE OF COMPLAINTS, INFRASTRUCTURE, ROADWAYS, DRAINAGE AND A BUILDING. SO I DON'T THINK THE SURVEY IS GOING TO BE A WHOLE LOT DIFFERENT IN THAT RESPECT. HOWEVER, THE NEEDS OF WHAT THE CITIZENS WANTED, FOR INSTANCE, ONE OF THE BIG POINTS, AND BACK THEN 80 PERCENT OF THE POPULATION VOTED THAT THEY WANTED A WAY TO PUT CITY SEWER THROUGHOUT THE ENTIRE CITY OF PARKER.

I DON'T THINK THAT WOULD NECESSARILY STAND TODAY.

SO I THINK THAT THERE'S A LOT THAT WE HAVE TO WEIGH IN TO DEVELOP THE COMPREHENSIVE PLAN, WHICH IS A VISION OF PARKER FOR THE FUTURE.

SO THE IDEA IS TO SEE WHAT BENEFIT THEY BRING.

TO ANSWER YOUR QUESTION A LITTLE MORE SUCCINCTLY NOW, WHAT THEY'RE GOING TO BRING, WHAT THE COST IS GOING TO BE? SO WE HAVE TO DO A COST BASIS ANALYSIS, IS IT WORTH IT? AND THEN TO DETERMINE WHAT IT WOULD COST FOR WHAT THEY'RE GOING TO BRING IF WE PIECE IT OUT. BECAUSE I CAN'T DRAW A MAP AND NONE OF MY COMMITTEE MEMBERS CAN.

WE CAN'T WE CAN GO TO OUR CITY ENGINEER TO DO IT.

BUT IF WE PIECE IT OUT IN CERTAIN WAYS, WHAT'S THAT GOING TO LOOK LIKE? BECAUSE THERE ARE SPECIFIC COMPREHENSIVE PLAN MAPS THAT GO INTO THE COMPREHENSIVE PLAN.

THANKS. AND HOW MANY PEOPLE HAVE YOU GOT VOLUNTEERING TO HELP? I WOULD HAVE TO PULL MY LAST GROUP BECAUSE I DON'T HAVE THAT NUMBER MEMORIZED, BUT I KNOW THAT WE HAD MORE THAN 10 THAT SHOWED UP TO OUR LAST MEETING.

WE HAVE AN AMAZING DIVERSIFICATION OF THE ENTIRE CITY.

SOME OF THE PEOPLE ARE HERE THAT THAT HAVE ATTENDED OUR MEETINGS AND OUR PEOPLE ARE RELIGIOUSLY ATTENDING THE MEETING.

SO IT'S YOU KNOW, IT'S USUALLY GET AN INITIAL EXCITEMENT.

AND THEN AFTER THE FIRST MEETING, YOU NOTICE YOUR NUMBERS DROP.

WE'VE ACTUALLY SEEN OURS INCREASE.

PEOPLE TRULY DO CARE ABOUT THE VISION OF PARKER AND WANT TO SEE WHAT THE PLANS ARE.

AND I'VE I'VE GOTTEN SOME SOME NAIL-BITING QUESTIONS FROM THE GROUPS THAT THEY'RE WANTING TO DISCUSS FOR MEMBERS BOTH HERE AND WE DO IT VIRTUALLY AS WELL.

WE'VE GOT SOME REAL HEAD SCRATCHERS THAT WE HAVE TO LOOK AT TO MAKE SOME DETERMINATIONS AS WELL.

GOOD. AND DO YOU HAVE ANY QUESTIONS? OK, THANK YOU, MICHAEL.

OK, NEXT, WE NEED TO ACCEPT A DONATION FOR.

SNAX, ESTIMATED AT 50 DOLLARS FROM CAROL W., I THINK IS HOW SHE SAYS OR NOT, WHICH I BELIEVE WAS FOR THE POLICE DEPARTMENT.

YES, I'LL GET IT.

OK, IS THERE ANYTHING ELSE ON FUTURE AGENDA ITEMS? IF NOT, Y'ALL KNOW THAT YOU CAN JUST SEND ME AN EMAIL AND WE'LL PUT SOMETHING ON THE FUTURE AGENDA IF WE NEED TO.

AND AT THIS TIME, I WILL ASK, DOES ANYBODY HAVE A MOVE TO GO TO AN EXECUTIVE SESSION TONIGHT? NOT HEARING THAT.

THEN WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.