The brownfield City Council met Thursday morning August 4, 2022, and went through the agenda in almost record time. Brownfield Industrial Development Corporation (BIDCorp) was the main focus of the Council as they had to approve funding for two businesses and approve a budget amendment.
The first company for the Council to approve funding from BIDCorp was Farmhouse Vineyards. Katy Jane Seaton, one of the owner-operators for Farmhouse approached BIDCorp on July 18, 2022, to request funding for equipment for the old armory that they purchased. The main items needed for the building were air conditioning, security equipment, and a grape crusher. BIDCorp approved $140,000 for Farmhouse, however, any funds over $50,000 must be approved by the City Council. Gina Kelly, Executive Director for BIDCorp was on hand to explain to the Council what Farmhouse needed the funds for. Kelly also explained Farmhouse has about 25 full-time employees, which all but one live in Terry County, and has spent over a million dollars on the local economy. There were no questions for Kelly. Councilwoman Michelle Cooper made the motion to approve the funding, with Councilman Eric Horton seconding the motion. All Council members voted unanimously to approve the funding.
The next business requesting funds was International Peanut Group (IPG). Business Development of Operations Mark Gregory also approached BIDCorp on Monday, July 18, 2022. Gregory showed the BIDCorp Board the company’s needs which were finishing a barn, buying hopper-bottom trailers, sample covers, and other items to help. BIDCorp approved $150,000 to IPG. Kelly was still on hand at the Council meeting to explain the needs for IPG and said that there are several full-time employees which live in Terry County. There were no questions for Kelly, other than where IPG is located. Cooper made the motion to allow BIDCorp to give the $150,000 in funds to IPG, with Horton seconding the motion. All Council members voted unanimously in favor of the funding.
Next was the adoption of a budget amendment for BIDCorp. Budget amendments must be authorized by the Director of Finance of the City of Brownfield, which is City Manager Jeff Davis. Davis was authorized and directed to make the
following changes to the 2021-2022 BIDCorp Budget for Type “A” economic development purposes which were $381,639.81 would be taken from the anticipated fund balances of the 2021-2022 budget and used to fund the following incentives payments: $240,000.00
- Farmhouse Winery/Armory Industrial Development Incentive for
purchase of HVAC system, Plumbing, and Security/Access Controls
in the amount of $127,500.00. - International Peanut Group Industrial Development Incentive for
the construction of the Building and Covered Sampler Facility in the
amount of $137,500.00. - Lonestar Cajun Seafood & Steak Infrastructure Improvement Grant
for infrastructure construction expenses in the amount of $625.00. - Rialto Theater Project Capital Expenditures for the renovations of the facility located at 408 W. Main in the amount of $91,014.81.
Horton made the motion to authorize the budget amendment, with Councilman Michael Tackitt seconding it. All Council members voted in favor of the budget amendment.
The City of Brownfield also needed a budget amendment in the amount of $74,154.94 which came from the Electrical Dept. According to Davis this extra, that was spent stems from when the Brownfield Junior High School (Old High School) was without power for a few days.
- 1 500KVA PADMOUNT TRANSFORMER $21,450.00
- 5000 25 KV EPR 1/0 AL WIRE IN 2″ PE DUCT $29,400.00
- 1 3 PHASE SECTIONALIZING CABINET $1,575.00
- 5 MOUNTING EQUIPMENT $675.00
- 12 25 KV TERMINATIONS $2,520.00
- 50 1/0 AL COMPRESION BOLT ON $177.50
- 1 PRIMARY METERING SET WITH METER $10,509.00
- 24 2″ AL STRAPS $169.92
- 15 200 AMP BUSHING INSERTS $578.55
- 30 CABLE PREP KITS $441.90
- 3 PHASE SECTIONALIZING CABINET $1,539.35
- 15 1/0 LOADBREAK ELBOWS $434.85
- 24 SILICONE TERMINTIONS 1/0 15KV $3,451.20
- 20 AL STANDOFF BRACKETS $700.80
- 2 15 KV 3 POINT LOADBREAK JUNCTION $339.94
- 1 15 KV 4 POINT LOADBREAK JUNCTION $191.92
Totaling $74,154.94
The Council unanimously approved the budget amendment.
The next item of business was to pass an ordinance for Atmos Energy Corp. West Texas Division. The usage of natural gas went beyond the estimated use when Winter Storm Uri hit the State of Texas in February 2021. There are 70 municipalities in the West Texas Division and Atmos settled with a coalition of similarly-situated cities (City of Brownfield being one of them) served by Atmos West Texas that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos West Texas service area; and Cities and the Company worked collaboratively to develop a new Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process by Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the Legislature and that will establish rates for Cities based on the system-wide cost of serving the Atmos West Texas service area.
The Atmos Executive Committee, as well as Cities’ counsel and consultants, recommends that Cities approve an increase in base rates for Atmos West Texas of $6.72 million with an Effective Date of October 1, 2022. According to Davis, the impact of this increase in revenues on an average residential customer’s bill is an increase of approximately $3.36 per month. Atmos provided a bill impact estimate for each customer class reflecting the new rates. The ordinance was passed unanimously by the Council.
The meeting was adjourned. The next Council meeting is slated for Thursday, August 18, 2022, at 7:30 am at City Hall in the Council Chambers.
