The City Council of the City of Abilene, Texas, met in a Pre-Council Work Session on December 14, 2000, at 8:30 a.m. in the Basement Conference Room of City Hall. Mayor Grady Barr was present and presiding with Councilmen Norm Archibald, Kris Southward, Victor G. Carrillo, and Councilwoman Kay Alexander. Also present were City Manager Roy L. McDaniel, Assistant City Manager Michael Morrison, City Attorney Sharon Hicks, City Secretary Jo Moore, and various members of the City staff. Councilmen Rob Beckham and Versie L. Brown, Jr. were absent.

City Manager Roy McDaniel stated regarding the condemnation of land, Item 4.4 on today's agenda that Tom Graham, one of the landowners, has submitted a tape that outlines his concerns. Mr. McDaniel suggested any Councilmember who wants to listen to the tape can do so. Mr. McDaniel then introduced Ricki Brown, City Librarian, who briefed the Council on the various activities, special programs, and events of the Abilene Public Library. Following Ms. Brown's presentation, Mr. McDaniel briefed the Council on various Consent and Regular Agenda items. City Secretary Jo Moore submitted a memo reflecting corrections on pages 5 and 9 to the November 30, 2000 City Council minutes. Councilman Southward submitted information regarding current versus proposed water rates. 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 December 14, 2000, at 9:00 a.m. in the City Council Chambers of City Hall.

Councilman Norm Archibald gave the invocation.

Ashley Mays, fifth-grader at Bowie Elementary, led the pledge of Allegiance. The school's principal, Mrs. Rideout and Ashley's parents Steven and Rhonda Mays, accompanied Ashley.

Jo Moore, City Secretary, assisted Mayor Barr in the presentation of the following Employee Service Awards:

30 Years, Billy R. Spivey, Supervisor I, Refuse Collection

30 Years, Carlene Edmondson, Executive Secretary, Legal

25 Years, Dwight Kinney, Police Officer, Police Department

20 Years, JoAnn Sczech, Executive Secretary, Community Development

20 Years, Clifford N. Moore, Maintenance Worker I, Traffic

20 Years, Robert D. Portillo, Refuse Collector, Refuse Collection

Mayor Barr presented a Proclamation for December 15-17 as "Toys for Tots Weekend".

Councilwoman Alexander moved to approve the minutes of the November 30, 2000 Pre-Council and Council meeting with corrections on pages 5 and 9 as submitted in the Pre-Council session. Councilman Archibald seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

Councilman Archibald moved to approve consent agenda items 3.1 through 3.3 and first reading of items 3.4 through 3.7. Councilwoman Alexander seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

1. Data storage server lease agreement for Information Technology Department, Bid #CB-1016. The bid was awarded to Gateway Business Systems/Fleet Leasing, representing the low responsible bidder in the amount of $7,364.74 per year for a total of $22,094.22 over the three-year term of the lease, as recommended by staff.
2. Limestone Rock Asphalt for Street Services, Bid #CB-1011. The bid was awarded to Vulcan Materials on a per unit price basis, as recommended by staff.
3. Refuse containers for Refuse Division, Bid #CB-1020. The bid was awarded on a per-unit price basis as follows: 1) Item #7 to El Monte Plastic; Items 1, 2, 3, 4, 5, 6 to Roll-Off of America as recommended by staff.

Ordinances:

4. Approval of first reading - Ordinance establishing standards of care for City of Abilene Recreation programs, and set a public hearing for December 21, 2000 at 9:00 a.m.

AN ORDINANCE OF THE CITY OF ABILENE, TEXAS, ESTABLISHING STANDARDS OF CARE FOR CITY OF ABILENE YOUTH PROGRAMS; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SAVINGS CLAUSE; AND CALL A PUBLIC HEARING.

5. Approval of first reading: TC-05600 - Thoroughfare abandonment of Texas Street adjacent to Lots 1-9, Block 1; Lots 1-9, Block 2; Lots 1-10, Block 3; and Lots 1-10, Block 4, Victoria Place Addition, and set a public hearing for December 21, 2000 at 9:00 a.m.

AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF PUBLIC RIGHT OF WAY; PROVIDING FOR THE TERMS AND CONDITIONS OF SUCH ABANDONMENT, AND CALLING A PUBLIC HEARING.

6. Approval of first reading - Z-05700 - Rezone from SC (Shopping Center) to GC (General Commercial) zoning district property located at 1421 S. Willis, and set a public hearing for December 21, 2000 at 9:00 a.m.

AN ORDINANCE AMENDING CHAPTER 23, "PLANNING AND COMMUNITY DEVELOPMENT," SUBPART E, "ZONING," OF THE ABILENE MUNICIPAL CODE, BY CHANGING THE ZONING DISTRICT BOUNDARIES AFFECTING CERTAIN PROPERTIES, AS DESCRIBED BELOW; DECLARING A PENALTY, AND CALLING A PUBLIC HEARING.

7. Approval of first reading - Z-05800 - Rezone from AO (Agricultural Open Space) to RM-2 (Residential Multi-Family) zoning district property located in the 5300 block of Hwy. 277 South, and set a public hearing for December 21, 2000 at 9:00 am.

1. Dan Santee, Assistant City Attorney, briefed the Council on an Ordinance repealing the 1964 Ordinance #127 and authorizing the addition of fluoride into the water supply in accordance with the November 7, 2000 election results; and a Resolution authorizing the City to apply for State funds from the Texas Department of Health Fluoridation Project. Staff recommends approval.

Mayor Barr recognized Mathew Scott, Texas Department of Health State Fluoride Engineer, 1150 W. 49^th, Austin, TX, who stated the fluoride concentration level would be approximately 0.8 part per million according to the Center for Disease Control & Prevention and based on the daily average temperature of the community.

Following Council discussion, Councilwoman Alexander made a motion to approve the Ordinance repealing the 1964 Ordinance #127 and authorizing the addition of fluoride into the water supply in accordance with the November 7, 2000 election results; and the Resolution authorizing the City to apply for State funds from the Texas Department of Health Fluoridation Project, as recommended by staff. Councilman Southward seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

The Ordinance is numbered 53-2000 and is captioned as follows:

AN ORDINANCE REPEALING THE 1964 ORDINANCE NO. 127 OF THE CITY OF ABILENE; AUTHORIZING AND DIRECTING THE FLUORIDATION OF ALL WATER SUPPLIES OF THE CITY OF ABILENE; AND PROVIDING A SEVERABILITY CLAUSE.

The Resolution is numbered 34-2000 and is captioned as follows:

A RESOLUTION OF THE CITY COUNCIL OF ABILENE, TEXAS, APPROVING THE APPLICATION TO THE TEXAS DEPARTMENT OF HEALTH FLUORIDATION PROJECT AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE TERMS AND CONDITIONS AND EXECUTE ALL NECESSARY DOCUMENTS TO PARTICIPATE IN THE TEXAS DEPARTMENT OF HEALTH FLUORIDATION PROJECT.

2. Dwayne Hargesheimer, Director of Water Utilities, briefed the Council on the O. H. Ivie water treatment plant capacity. Mr. Hargesheimer stated the firm of CH2M Hill has begun the pilot testing of membrane filters and developing the procurement process. As the Water Treatment Plan design effort begins, the initial capacity of the Water Plant needs to be determined. Staff is recommending an 8 MGD initial plant capacity with the current Water Treatment Plant capacity at 48 MGD, an additional 8 MGD would increase firm treatment capacity to 56 MGD. July of 1998 was the highest monthly water use of record with the average daily use at 38.8 MGD and only two days of 46.9 MG peak day usage. The 1999 peak day was 40.8 MG. The budget for an 8 MGD Plant is $15,000,000 with each additional 1.0 MGD treatment capacity adding $1,500,000 plus $3,500,000 of off site water and sewer line construction cost.

Council and staff discussion included: viewing this facility as an insurance policy that would supplement Ft. Phantom and Hubbard, needing to build what is going to be used with significance being placed on being able to expand in 12 months, justifying cost to benefits, a 12 million gallon treatment facility only being needed at full capacity during the summer months, membrane filters deteriorating unless the plant is run daily which could keep them viable and extend their life, the need to create enough volume to run the plant, the best and least expensive water to use being: 1) Lake Abilene, and 2) Ft. Phantom, Ivie being equal to Hubbard in respect to cost, factors to be considered include conservation, cost, and efficiency. Further discussion included City Manager Roy McDaniel, Director of Water Utilities Dwayne Hargesheimer, and Mr. Lewis of CH2M Hill, recommending an 8 MGD initial plant capacity, concerns about building a larger plant that has no use, the treatment plant not solving drought problems but being a viable part of the solution concerning water needed to get through critical times, easier to add to the treatment plant than to build a pipeline, transporting water from Ivie and pumping into Kirby being a viable option in an emergency, building a pipeline requires some treatment system, the need to prepare for the future by assuring there is an adequate water supply for the future, Ft. Phantom, Lake Kirby, Lake Abilene, and 16% of Lake Ivie belongs to Abilene, current and future needs concerning contracting for Hubbard water, investments to date in Hubbard and the unknown in respect to disposal being the force that's driving up the cost of the treatment plant.

Billy Jacob, Engineer for Jacob & Martin, distributed and reviewed a map and preliminary cost estimate concerning the water distribution system and sewer improvements needed to receive water and reject water from the southside water treatment plant. Mr. Jacob stated 6-8 MGD is recommended because that size meets the middle 3^rd plane demands. Mr. Jacob further stated the City's treatment capacity is currently marginal (capacity is needed) and expansion is the most economical solution.

Mayor Barr suggested this item be tabled for one week to allow David Lewis of CH2M Hill to be present and for staff to prepare for Council information on how much more it would cost to increase the size by 4 million gallons a day a year from now than it would cost today, and how much more it would cost per 1,000 to go from 8 to 12 MGD.

Councilman Carrillo stated another reason for discussing this later is that two Councilmembers are absent today. Councilman Carrillo further stated the main benefit he sees is that it is modular and that relatively quickly we can and not at a incrementally higher cost increase the size of the facility if needed. The 8 MGD is preferred at this point with the knowledge that a few years from now if use dictates it, another module or two can be added at a cost that is not projected to increase in the future and in fact could decrease.

Council further discussed the time frame being approximately 12 months to increase from 8 to 12 MGD.

Councilman Southward questioned the possibility of the pipeline going into Lake Kirby being built at the same time the 8 MGD treatment plant is built in order to have the extra ability in an extreme emergency and to cover all cost at one time.

City Manager Roy McDaniel stated a pipeline to Lake Kirby is a future decision and not one Council has to decide today.

Councilman Archibald made a motion to table the item until the December 21, 2000 Council meeting. Councilman Carrillo seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

4.3 Dwayne Hargesheimer, Director of Water Utilities, briefed the Council concerning a Resolution revising the schedule of rates and charges for water and sewer utility services with an effective date of March 1, 2001. The O. H. Ivie Pipeline, pump station and water treatment plant construction projects will require a rate increase to pay for bond indebtedness. An estimated $6,500,000 will be required annually to repay $60,000,000 of bond debt. The current water rate will need to increase substantially to ensure adequate revenue each year for debt payments. There currently are 38,625 meters in the water system. Various rate scenarios that would generate additional revenue were considered based on 7-7.5 billion gallons of annual water sales.

Option 1: Raise base customer service charge only - no water rate increase.

Option 2: raise water rates per 1000 - no change in the base customer service charge.

Option 3: any combination of these two.

Staff is recommending that water rates be increased by 50%, base customer service charge for most residences (3/4 and 5/8 inch meters) increase to $8.50 and all other base customer service charges be doubled. Increasing the cost per 1000 will insure that heavy water users pay more. Also, fees for installation of new water meters (tap fees) should be increased to reflect actual cost: ¾ inch $275.00 to $350.00; 1 inch $300.00 to $375.00, 1 ½ inch $450.00 to $525.00. These rates should minimize the impact for very low consumption.

Council and staff discussion included: the 2^nd Hubbard pipeline debt still being paid for, past water rate increases, the proposed water rate increases with comparable cities survey comparison, contract water, industrial users, effluent water, and commercial users cost versus residential.

Councilman Southward stated his major concerns with the rates are that those people using the least amount are charged with highest percentage rate increase, which seems unfair to him. Councilman Southward further stated he feels their proportionate rates should be less than the major user who can afford to use the water. Council requested staff prepare a percentage increase comparison between the February rates of this year and the proposed rates, and a chart showing the addition of $1.00 per 1,000 gallons across the board, leaving the minimum at the current rate.

City Manager Roy McDaniel stated the $1.00 per 1,000 gallons could be implemented for one year, but staff may have to come back to Council with new recommendations.

Councilman Archibald made a motion to table the request until December 21, 2000 in order to review the new additional information requested from staff. Councilman Carrillo seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

4.4 Sharon Hicks, City Attorney, briefed the Council on a Resolution ordering condemnation to acquire easements for the Ivie Pipeline. Staff recommends City Council adopt the Resolution Declaring a Public Necessity and Ordering Condemnation for the remaining easements over the tracts of land necessary to lay the Ivie Pipeline and authorize the City Attorney to institute proceedings in eminent domain against the property owners.

Councilwoman Alexander moved to approve the Resolution ordering condemnation to acquire easements for the Ivie Pipeline, as recommended by staff. Councilman Southward seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Carrillo, Councilwoman Alexander, and Mayor Barr.

NAYS: None.

The Resolution is numbered 35-2000 and is captioned as follows:

There being no further business, Mayor Barr recessed the Council into executive session pursuant to Sections 551.071, 551.072 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 purchase, exchange, lease, or value of real property, and to consider the appointment and evaluation of public officers.

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

There being no further business, the meeting was adjourned at 1:00 p.m.

Jo Moore, City Secretary

Grady Barr, Mayor