The City Council of the City of Abilene, Texas, met in a Pre-Council Work Session on August 12, 1999, at 8:30 A.M. in the Basement Conference Room of City Hall. Mayor Grady Barr was present and presiding with Councilmen Paul R. Vasquez and A. Don Drennan, Councilwoman Carol Martinez, Councilman Rob Beckham, and Councilwoman Kay Alexander. Also present were City Manager Roy L. McDaniel, Assistant City Manager Mike Morrison, City Attorney Sharon Hicks, City Secretary Jo Moore, and various members of the City staff. Councilman Versie L. Brown, Jr. was absent from the Pre-Council session only.

Jeff Armstrong, Development Services Administrator, briefed the Council on the status of the Zoning Ordinance rewrite. Mr. Armstrong listed the goals as follows: 1) simplify the Ordinance, 2) create flexibility, and 3) take care of small issues that are problems on a regular basis. Mr. Armstrong stated various issues are being addressed, including: changing some zoning districts, adding opportunities for individuals but still providing protection by having Special Use permits, and creating compatibility index that may create specific requirements. Mr. Armstrong further stated that some portions of the current ordinance will remain in place, and zoning district permitted uses regulations as well as setback requirements will be reviewed. Council noted some concerns such as types of home occupations, issues concerning the senior population - secondary uses, and needed input being provided by the Planning and Zoning Commission. Mr. Armstrong stated the proposed draft of the Ordinance is expected to be ready by early 2000, then a series of meetings with the Planning and Zoning Commission will be set, but the Planning and Zoning Commission will be given updates prior to those meetings. Roy McDaniel, City Manager, distributed information regarding Item 4.3, Consideration of an Ordinance and action regarding TXU Lone Star Gas Company rate increase, stating he is recommending a 3.8% increase on residential and 7.7% increase on commercial customers. Councilman Vasquez noted he would be abstaining on Item 3.19, Z-03999 - Rezone from RM-3 (Residential Multi-Family) to MU (Medical Use) zoning district property located between North 17^th & North 18^th and Cedar & Cypress, due to his employment with Hendrick. There being no further discussion, the meeting was recessed to the City Council Chambers until 9:00 a.m. for the regular Council Meeting.

Mayor Barr reconvened the City Council of the City of Abilene, Texas, into Regular Session August 12, 1999, at 9:00 a.m. in the City Council Chambers of City Hall.

Councilwoman Kay Alexander gave the invocation.

Pledge of Allegiance was led by Zachary Sartor, 4^th grader at Lee Elementary. Zachary was accompanied by his mother, Julie, who is employed in the City's Community Services Department and his father, David, employed in the City's Building Inspection Division.

Jo Moore, City Secretary, assisted Mayor Barr in the presentation of the Employee Service Award as follows:

25 Years, Shay Bennett, Principal Librarian, Library

Councilman Vasquez moved to approve the minutes of the July 20, 21, and 22, 1999 Budget Worksessions and July 22, 1999 Pre-Council and Council Meeting as printed. Councilman Brown seconded the motion and the motion carried.

AYES: Councilmen Vasquez and Drennan, Councilwoman Martinez, Councilmen Beckham and Brown, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

Councilman Drennan moved to approve consent agenda items 3.1 through 3.12 and approval of first reading of items 3.13 through 3.19, and second and final reading of item 3.20 as recommended by staff. Councilman Beckham seconded the motion and the motion carried.

AYES: Councilmen Vasquez (abstaining on 3.19 only) and Drennan, Councilwoman Martinez, Councilmen Beckham and Brown, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

ABSTAIN: Councilman Vasquez on item 3.19 only, due to his employment with Hendrick Medical Center.

3. Oral Resolution approving a street use license agreement request from the Abilene Public Library for "USO Night at the Library" on August 28, 1999.

The Ordinance is numbered 36-1999 and is captioned as follows:

4.1 Melvin Martin, Police Chief, distributed to the Council the Abilene Police Department's 1998 Statistical Report, and stated the perception in the community is that crime has increased, when in reality the opposite is true. Chief Martin explained the crime increase perception in the community is due to the six murders that occurred from January 1 to June 30, 1999, and the three murders occurring since July 1, 1999. Chief Martin then reviewed the crime statistical report, noting violent crimes for a seven-year comparison show an overall decrease from 1992-98 with 1998 being the lowest year for violent crime. Chief Martin continued his review, noting aggravated assaults and property crimes are down. In summary, Chief Martin stated Abilene is doing very well and the quality of life in Abilene is very good. Concerns noted are the same as nationwide being the return of the drug culture and the high population of 8-15 year olds in Abilene who are entering into the at-risk group of 16-23 year olds.

Council questions included: if a skate park or other youth programs would be beneficial, if there are other programs being considered, such as the neighborhood youth program, and if community policing is good in the area of communicating.

Chief Martin replied that every organized activity is very beneficial, and although currently there are no new programs, the Police try to identify areas with problems and address them, working very closely with the school district. Chief Martin further stated community policing will be increasing and is very good in the area of communicating.

Councilman Vasquez stated his appreciation to Chief Martin for the Police Department's response to the Sears area concerns.

Mayor Barr thanked Chief Martin and the Police department, stating his and the Council's appreciation for the report and for the work of the Department.

No Council action was required.

4.2 Cindy Cullen, Technology Liaison, briefed the Council regarding a Resolution approving the transfer of cable television franchise from TCA to Cox Communications. Staff recommends approval.

Council concerns included: mergers resulting in loss of "local" representatives, what Cox's plans are for improving their physical facilities in Abilene, and how Cox will address technology needs for the future.

Randy Wink, General Manager of Cox Communications, stated they will depend on Mr. Reveles and his local staff to help determine the needs and make recommendations. Mr. Wink further stated Cox believes in being very active locally.

City Manager Roy McDaniel complimented Mr. Reveles, stating Mr. Reveles has been in Abilene for 2-1/2 years, and since that time cable complaints have dropped significantly. Mr. McDaniel also noted that Ms. Cullen is resigning to spend more time with her family, and that she will be missed.

Councilwoman Martinez moved to approve by Resolution the transfer of the cable television franchise from TCA to Cox Communications, as recommended by staff. Councilwoman Alexander seconded the motion and the motion carried.

AYES: Councilmen Vasquez and Drennan, Councilwoman Martinez, Councilmen Beckham and Brown, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

The Resolution is numbered 30-1999 and is captioned as follows:

4.3 Sharon Hicks, City Attorney, briefed the Council on an Ordinance considered on second and final reading regarding the TXU Lone Star Gas Company rate increase. Staff recommends the City grant TXU Lone Star Gas a $632,000 increase or 4.9%, which is approximately 55% of their request. Staff also recommends Council approve the weather normalization adjustment (WNA) but not approve the proposed cost of service adjustment (COSA) nor the Proposed Plant Cost Adjustment (PICA). The 4.9% increase would result in an average increase of $.94 per month for residential customers and $8.35 per month for commercial customers.

TXU Lone Star Gas District Manager Mike Schweickhard stated, on behalf of TXU Lone Star Gas, appreciation for the opportunity to have met with City consultants and staff to resolve the issues concerning the rate increase request.

Mr. Schweickhard further stated that although neither the City staff nor consultants have recommended Council approve the cost of service adjustment (COSA), he is requesting Council consider approving that adjustment. Mr. Schweickhard noted the COSA is a mechanism which allows the cost to do business to be looked at, and has a formula to determine needed annual adjustments to rates.

The consultants recommended against COSA primarily based on the fact that COSA removes the Council's direct involvement in approving an increase.

Council's concerns included: if stockholders have benefited from the merger, if a $2 1/2 million net asset increase in Abilene is reasonable, and what incentive the gas company has to keep the cost down?

Mr. Schweickhard addressed Council's concerns, stating he expects ultimately that the merger will result in savings, that the investment increase in Abilene has gone up but has very little to do with the merger; it has more to do with ground improvement (i.e., replace old pipe). Mr. Schweickhard was unable to answer the question concerning TXU Lone Star Gas incentive to keep cost down.

Council questioned how many times the rates have been reduced due to COSA, and noted concerns that gas loss was at 1% and is now over 4%. Mr. Schweickhard replied in 10 years there have been 2-3 years with a reduction and 6-7 years with an increase. Mr. Schweickhard further stated a standard formula was used in calculating gas loss and the consultant has a different way of calculating. TXU Lone Star Gas does not agree with the consultant's opinion that gas loss is at 4% and doesn't feel the consultant is accurate. TXU Lone Star Gas thinks the loss is at 1%.

Council questioned if COSA is approved if a consultant would still be needed, and how staff time would be impacted? Mr. McDaniel stated COSA is new and he suspects in order to do justice, staff time and consultants would still be needed.

Mr. Schweickhard stated a mutually beneficial agreement is important, and recommends Council approve the Ordinance as presented by staff.

Mayor Barr recognized citizens wishing to speak:

• Earline O'Neill, 1326 Peach, is opposed to the request, stating line replacement is paid for by citizens, who should not have to do this, and the new company (TXU) wants Abilene citizens to pay for the merger.

City Manager Roy McDaniel stated former Mayor Dale Ferguson had contacted him and asked for the record to note that he had intended to be here to address the TXU Lone Star Gas request, but was unable to attend.

Mr. Schweickhard explained the weather adjustment process, noting the WNA should not increase gas revenue.

Council specifically requested Mr. Schweickhard reconcile with the consultants the percent of gas loss difference between them and TXU Lone Star Gas in order for the City to have a better idea of what that loss is.

Councilman Beckham moved to approve the Ordinance regarding the TXU Lone Star Gas Company rate increase, as recommended by staff. Councilwoman Martinez seconded the motion and the motion carried.

AYES: Councilmen Vasquez and Drennan, Councilwoman Martinez, Councilmen Beckham and Brown, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

The Ordinance is numbered 37-1999 and is captioned as follows:

Mayor Barr recessed the Council into executive session pursuant to Sections 551.071 and 551.074 of the Open Meetings Act, to seek the advice of the City Attorney with respect to pending and contemplated litigation, and to consider the appointment and evaluation of public officers.

The Council reconvened from executive session and reported no action taken.

Councilman Brown moved to approve Mayor Barr's reappointments of Robert C. Monk, David F. Scott, Joel Loya, and William E. "Chip" Holmes to the MHMR Board of Trustees, terms expiring 8/2001; and the appointments of Frances Thornton to the Civic Abilene, Inc., term expiring 5/2001 and Stephen Craig Bailey to the Human Relations Committee, term expiring 5/2002. Councilman Beckham seconded the motion and the motion carried.

AYES: Councilmen Vasquez and Drennan, Councilwoman Martinez, Councilmen Beckham and Brown, and Mayor Barr.

NAYS: None.

There being no further business, the meeting was adjourned at 11:05 a.m.

Jo Moore, City Secretary

Grady Barr, Mayor