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Regular Meeting September 6, 2005 11. Page 11 IMr. YEAR 2005-2006 CAPITAL IMPROVEMENTS PROGRAM PROJECTS; INCLUDING PROCEDURAL PROVISIONS; AND DECLARING AN EMERGENCY. Mihalkanin moved for adopt ion of the Ordinance on emergency, and Mr. Taylor seconded the motion. Mr. O'Leary thanked the Council and Directors for their hard work on the budget. Mayor Narvaiz stated she appreciated Mr. O'Leary's hard work. The Council then voted unanimously for adoption of the Ordinance on emergency. Mayor Narvaiz introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE WHICH SHALL CONSTITUTE AN INTERIM ORDER OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS TO REQUIRE CENTERPOINT ENERGY TO PUBLISH NOTICE OF ITS PROPOSED CHANGES IN RATES AND CHARGES IN A CONSPICUOUS MANNER, TO REQUIRE CENTERPOINT ENERGY TO REFILE ITS STATEMENT OF INTENT UTILIZING A CURRENT TEST YEAR; INCLUDING PROCEDURAL PROVISIONS; AND DECLARING AN EMERGENCY. Mr. Mihalkanin moved for adoption of the Ordinance on emergency, and Mr. Guerrero seconded the motion. Mayor Narvaiz stated there are speakers who have signed up to speak on this item. 1) Marcus Etzler, Centerpoint I Energy, published the rate increase notice for four weeks in the Austin- American Statesman, which meets the notification requirements of the Railroad Commission. He stated in October, 2004, Centerpoint Energy filed intent to change rates with the Railroad Commission. He stated a detailed review was conducted and the Railroad Commission suggested lowering the rates they had submitted. 2) Robert Sanders provided the history of Centerpoint Energy. He encouraged the Council to oppose the proposed Ordinance. 3) Scott Doyle stated he feels the Ordinance before the Council is not factual. He stated Seguin is the only other City in South Texas that has rej ected the increased rate. He preferred the City review the rates, instead of adopting the proposed Ordinance. Mr. O'Leary stated on August 1, 2005, the Council adopted a Resolution suspending the proposed rate increase for 90 days and designating the City Manager as the City's representative to a Steering Committee of cities in Centerpoint' s South Texas Division including New Braunfels, Seguin and Bastrop. He stated the attorney hired by the coalition believes Centerpoint's proposed rate change was not published conspicuously as required under state law. Mr. Thomaides inquired as to the amount of the increase. Mr. O'Leary stated this is at least a 20% increase of revenue. He stated this proposed increase is too high for residents. He stated the coalition believes they have a good chance to go before the Railroad Commission and make a case. Mr. Taylor I inquired what would occur if the coalition loses the appeal. Mr. 0' Leary stated the ratepayers will have to pay for the expenses, but he believes the coalition has a good case. The Council then voted unanimously for adoption of the Ordinance on emergency.