		City Council
Oscar Leeser		Peter Svarzbein, District 1
Mayor		Larry Romero, District 2
		Emma Acosta, District 3
		Carl L. Robinson, District 4
Tommy Gonzalez		Michiel R. Noe, District 5
City Manager		Claudia Ordaz, District 6
		Lily Limón, District 7
		Cortney Carlisle Niland, District 8

SPECIAL MEETING OF THE CITY COUNCIL MEETING MINUTES

COUNCIL CHAMBERS

February 29, 2016

The City Council met at the above place and date. Meeting was called to order at 9:15 a.m. Mayor Oscar Leeser present and presiding and the following Council Members answered roll call: Peter Svarzbein, Claudia Ordaz, Lily Limón, and Cortney Niland. Late arrivals: Carl Robinson at 9:11 a.m., Emma Acosta at 9:14 a.m., and Michiel Noe at 9:47 a.m. Not Present: Larry Romero

AGENDA

Discussion and action regarding recommendations arising from City of El Paso Ethics Investigation Preliminary Findings and Advice dated February 24, 2016 prepared by Ross Fischer.

Ms. Sylvia Firth, City Attorney, read motion into the record.

1^ST MOTION

Motion made by Representative Niland, seconded by Representative Ordaz, and unanimously carried that the City Council retire into EXECUTIVE SESSION at 10:07 a.m. pursuant to Section 3.5A of the El Paso City Charter and the Texas Government Code, Sections 551.071 - 551.087 to discuss any of the following:

NOT PRESENT FOR THE VOTE: Representative Romero

Section 551.071 CONSULTATION WITH ATTORNEY

Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY

Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS

Section 551.074 PERSONNEL MATTERS

Section 551.076 DELIBERATION REGARDING SECURITY DEVICES

Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS

2^nd MOTION

Motion made by Representative Niland, seconded by Representative Limón, and unanimously carried to adjourn the Executive Session at 3:33 p.m. and RECONVENE the meeting of the City Council, during which time motions were made.

NOT PRESENT FOR THE VOTE: Representative Romero

3^rd AND FINAL MOTION

Motion made by Representative Limón, seconded by Representative Niland and passed unanimously to DIRECT:

1. The Legal Department to be advised and/or consulted prior to the issuance of any procurement, RFQ or RFP which will result in the termination of an existing contract prior to the commencement of the procurement process..

2. Request City Manager amend/correct all financial disclosure filings with City Clerk and State Ethics Commission to provide required details regarding his consulting work and other sources of income.

3. Request the Mayor send a letter to Representative Romero asking that he respond to questions posed to him by the Ethics Commission through Ross Fisher.

4. Request City Attorney to make a presentation at an LRC in the near future regarding Council/ Manager form of government and authority of the City Manager.

5. Request the City Manager conduct a review of procurement policies and procedures to assure compliance with applicable State law and use of best practices and update the City of El Paso Policy manual accordingly.

6. Request the City Manager fully disclose all consulting business and sources of income during his term of employment with the City of El Paso.

7. Recognizing that City Manager’s contract requires him to secure the prior written consent of Council prior to participating in any business venture, which he did not do. Council requests to be provided with articles of formation and tax returns for the entity he created to handle his consulting business.

8. City Council requests invoice and proof of payment for tax services paid to Representative Romero by Mr. Gonzalez.

9. Requests that Mayor send a letter to Ms. Wilson asking for her to explain and elaborate on the events leading to the delay in the issuance of the of ballpark bonds and to identify the Council members involved in the decision.

10. Request that the City Manager take corrective action with regard to the employees involved in the alleged violations of the Texas Public Information Act (TPIA) and procurement procedures. (RFQ Sourcing)

11. Request that all City employees cooperate with the Texas Rangers and the Ethics Review Commission and any other law enforcement agencies who might be conducting investigations as a result of the Ethics report.

12. City Council continues to support the work of the El Paso Ethics Commission.

13. Agenda Item EX1 is recessed until 9:00 am tomorrow to allow Council to discuss a Performance Improvement Plan with City Manager Tomas Gonzalez.

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ITEM 1 AND EX1. TAKEN INTO EXECUTIVE SESSION

1^ST MOTION

NOT PRESENT FOR THE VOTE: Representative Romero

Section 551.071 CONSULTATION WITH ATTORNEY

Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY

Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS

Section 551.074 PERSONNEL MATTERS

Section 551.076 DELIBERATION REGARDING SECURITY DEVICES

Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS

2^nd MOTION

NOT PRESENT FOR THE VOTE: Representative Romero

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EX1.

Personnel Matters – Tomas Gonzalez, City Manager (551.074)

NO ACTION taken on this item.

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EX2.

SOAH Docket 473-15-5257 PUC Docket No. 44941 – Application of El Paso Electric Company to Change Rates and SOAH DOCKET NO. 473-16-1685 PUC DOCKET NO. 45475, Review of Rate Case Expenses Incurred by El Paso Electric Company and Municipalities in Docket 44941 (551.071)

1^ST MOTION

Motion made by Representative Niland, seconded by Representative Ordaz, and unanimously carried that the City Council retire into EXECUTIVE SESSION at 9:06 a.m. pursuant to Section 3.5A of the El Paso City Charter and the Texas Government Code, Sections 551.071 - 551.087 to discuss any of the following:

NOT PRESENT FOR THE VOTE: Representative Romero

Section 551.071 CONSULTATION WITH ATTORNEY

Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY

Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS

Section 551.074 PERSONNEL MATTERS

Section 551.076 DELIBERATION REGARDING SECURITY DEVICES

Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS

2^nd MOTION

Motion made by Representative Niland, seconded by Representative Robinson, and unanimously carried to adjourn the Executive Session at 9:35 a.m. and RECONVENE the meeting of the City Council, during which time motions were made.

NOT PRESENT FOR THE VOTE: Representative Romero

3^RD AND FINAL MOTION

Motion made by Representative Niland, seconded by Representative Acosta, and carried that the City Attorney is authorized to enter into a settlement Agreement on behalf of the City of El Paso in SOAH Docket 473-15-5257, Public Utility Commission of Texas Docket 44941, Application of El Paso Electric Company to Change Rates which incorporates the terms outlined in the Settlement Term Sheet attached hereto as Exhibit “A.”

AYES: Representatives Acosta, Robinson, Noe, Ordaz, Limón, and Niland

NAYS: Representative Svarzbein

NOT PRESENT FOR THE VOTE: Representative Romero

Exhibit A-Term Sheet

February 29, 2016

SOAH DOCKET NO. 473-15-5257

PUC DOCKET NO. 44941

APPLICATION OF EL PASO ELECTRIC COMPANY TO CHANGE RATES

BEFORE THE STATE OFFICE

ADMINISTRATIVE HEARINGS

SETTLEMENT TERM SHEET

The parties agree to the following settlement terms providing a mutually agreeable basis for resolution of this proceeding, subject to approval of their respective clients and to completion of a settlement agreement acceptable to the parties and approved by Commission:

A. Overall Revenues

1. EPE to receive an overall increase of $37 million in Texas base rate and other revenues, effective for electricity consumed on and after January 12, 2016.

2. Parties request an interim order for interim rates for bills on and after April 1, 2016, subject to surcharge or refund, as appropriate.

B. Four Corners Issue

Parties to litigate whether EPE should receive an additional base rate increase in this case, above the $37 million, associated with its interest in Four Corners (Four Corners Incremental Rate Amount). The maximum Four Corners Incremental Rate Amount that EPE can receive on this issue for the Texas jurisdiction is $8 million and the least amount is $0. Whatever Four Corners Incremental Rate Amount, if any, the Commission decides shall apply to consumption on and after January 12, 2016, and recovery of any incremental amount will be through a rider that will automatically terminate after an 18 month period.

C. Additions to Plant in Service after June 2009 (end of test year in Docket No. 37690)

All of EPE’s additions to electric plant in service from July 1, 2009 through March 31, 2015 are deemed reasonable and necessary and included in rate base, except for the Newman Elevated Solar Facility, which will be addressed in a future case.

D. Return on Equity

A return on equity of 9.7 percent only for purposes of calculating Allowance for Funds Used During Construction (AFUDC) and for calculating carrying costs for deferred energy efficiency costs.

E. Depreciation

1. The adjusted depreciation rates proposed by City of El Paso witness Jacob Pous and reflected in his Direct Testimony and Schedule JP-1 to his Direct Testimony shall be utilized effective January 1, 2016.

2. Effective January 1, 2016, the Company will record any gain or loss on the disposal of transportation equipment as a component of accumulated provision for depreciation and amortization of electric plant (FERC Account Number 108).

F. State Income Taxes

Normalize State Income Tax.

G. Imputed Capacity for Solar Power Purchase Power Agreements

The imputed capacity charge for the Macho Springs PPA is $2.05/kW-month, and the imputed capacity charge for the Newman PPA is $1.91/kW-month.

H. Nuclear Decommissioning

Effective February 1, 2016, none included in EPE’s rates.

I. Environmental Consumables to Fuel

Costs of environmental consumables will be removed from base rates and be recovered as eligible fuel costs.

J. Allocation of Revenues

The revenue increase shall be allocated among customer classes as set forth in Attachment A.

K. Rate Design and Tariff Approval

1. The customer charge for Rate 1, Residential Service, shall be set at $6.90;

2. The following language shall be added to EPE’s Schedule DG, tariff:

For all residential customers eligible for this tariff who received notice of DG interconnection application approval from EPE after August 10, 2015, an additional $11 per month fee will be charged to each customer.

Customer will receive a credit for each month equal to $0.01375/kWh for every kWh of consumption billed to the customer for that month up to the total amount of the $11 fee paid for that month under this section of the tariff.

3. The customer charge for Rate 2, Small General Service, shall be set at $9.95.

4. The customer charge for Rate 24, General Service, shall be set at $27.50 with the balance of the increase distributed to this class to be accomplished by increasing the other charges by an equal percentage.

5. Rate limiter to be worked out for Rate 24, General Service, regarding houses of worship.

6. Rate limiter to be worked out with State Agencies regarding the University Rate account transferring to Rate 25, Large Power Service.

7. The increase distributed to Rate 41 shall be applied by increasing each of the components of the monthly base rate by an equal percentage.

8. EPE withdraws its proposed provision for Highly Variable Demand.

9. The existing Demand and Energy Loss Factors shall remain in effect. EPE to submit System Loss Study in the 2016 Fuel Reconciliation proceeding for applicability in fuel reconciliation period beginning April 1, 2016.

10. Revised Residential TOU pricing under discussion, and experimental pilot demand response programs to be considered under energy efficiency rule.

Approve motion as read into the record by Representative Niland.

Mr. Norman Gordon, outside bond counsel, gave a PowerPoint presentation explaining the settlement agreement and answered the questions of City Council.

Mayor Leeser and Representatives Robinson and Niland commented.

Public comment:

Mr. Rocky Bacchus requested that Council approve settlement and create a board to review the next set of rates.

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Motion made by Mayor Pro Tempore Niland, seconded by Representative Svarzbein, and unanimously carried to RECESSED the Special City Council Meeting on February 29, 2016 at 3:40 p.m. and RECONVENED at 9:00 a.m. on Tuesday, March 1, 2016.

The City Council met at the above place and date. Meeting was called to order at 9:04 a.m. Mayor Oscar Leeser present and presiding and the following Council Members answered roll call: Peter Svarzbein, Emma Acosta, Carl Robinson, Michiel Noe, Claudia Ordaz, Lilia Limón and Cortney Carlisle Niland. Not Present: Larry Romero.

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EX1.

MOTIONS FROM MARCH 1, 2016 RECONVENED MEETING FROM FEBRUARY 29, 2016.

1^st MOTION

Motion made by Mayor Pro Tempore Noe, seconded by Representative Limón, and unanimously carried to RECONVENE the Special City Council Meeting from February 29, 2016 at 9:04 a.m. on Tuesday, March 1, 2016.

NOT PRESENT FOR THE VOTE: Representative Romero

2^ND MOTION

Motion made by Mayor Pro Tempore Noe, seconded by Representative Robinson, and unanimously carried that the City Council retire into EXECUTIVE SESSION at 9:05 a.m. pursuant to Section 3.5A of the El Paso City Charter and the Texas Government Code, Sections 551.071 - 551.087 to discuss any of the following:

NOT PRESENT FOR THE VOTE: Representative Romero

Section 551.071 CONSULTATION WITH ATTORNEY

Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY

Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS

Section 551.074 PERSONNEL MATTERS

Section 551.076 DELIBERATION REGARDING SECURITY DEVICES

Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS

3^RD MOTION

Motion made by Representative Niland, seconded by Mayor Pro Tempore Noe, and unanimously carried to adjourn the Executive Session at 12:12 p.m. and RECONVENE the meeting of the City Council, during which time motions were made.

NOT PRESENT FOR THE VOTE: Representative Romero

RECESSED at 12:12 p.m. until 1:00 p.m.

4^TH MOTION

Motion made by Representative Niland, seconded by Mayor Pro Tempore Noe, and unanimously carried to RECONVENE the Special City Council Meeting at 1:06 p.m.

5^TH MOTION

Motion made by Representative Robinson, seconded by Mayor Pro Tempore Noe, and unanimously carried that the City Council retire into EXECUTIVE SESSION at 1:07 p.m. pursuant to Section 3.5A of the El Paso City Charter and the Texas Government Code, Sections 551.071 - 551.087 to discuss any of the following:

NOT PRESENT FOR THE VOTE: Representative Romero

Section 551.071 CONSULTATION WITH ATTORNEY

Section 551.072 DELIBERATIONS REGARDING REAL PROPERTY

Section 551.073 DELIBERATION REGARDING PROSPECTIVE GIFTS

Section 551.074 PERSONNEL MATTERS

Section 551.076 DELIBERATION REGARDING SECURITY DEVICES

Section 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS

6^TH MOTION

Motion made by Representative Niland, seconded by Representative Limón, and unanimously carried to adjourn the Executive Session at 2:35 p.m. and RECONVENE the meeting of the City Council, during which time motions were made.

NOT PRESENT FOR THE VOTE: Representative Romero

ADJOURN

Motion made by Representative Robinson, seconded by Representative Svarzbein, and unanimously carried to ADJOURN this meeting at 2:36 p.m.

NOT PRESENT FOR THE VOTE: Representative Romero

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APPROVED AS TO CONTENT:

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Richarda Duffy Momsen, City Clerk