The City Council of the City of Abilene, Texas, met in a Pre-Council Work Session on January 11, 2001, 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, Versie L. Brown, Jr., 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 Victor G. Carrillo and Rob Beckham were absent.

City Manager Roy McDaniel stated a portion of the Refuse Division functions would be presented today, and the remaining activities of the division would be presented at the January 25, 2001 Pre-Council meeting. Mr. McDaniel further stated Georgi Brooks-Newton, Refuse Division Program Manager, has accepted a position in the City of Austin; then introduced Bill Brock, Management Assistant, who gave a presentation on the Environmental Recycling Center. The Council briefly discussed various consent and regular agenda items. Mr. McDaniel noted that item 4.1, Skate Park Bid #CB-1022 has been removed from today's agenda for further study and will be placed back on the agenda for the January 25^th Council meeting. Mr. McDaniel further noted that items 4.3 and 4.4 are being reversed in order on today's agenda. There being no further discussion, the meeting was recessed 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 January 11, 2001, at 9:00 a.m. in the City Council Chambers of City Hall.

Councilman Versie L. Brown, Jr. gave the invocation.

Pledge of Allegiance was led by Adrianna Lara, a fifth grader at Fannin Elementary who was accompanied by her mother, Maryalice Carriola, and Principal, Mr. Galloway.

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

30 Years, Billy W. Adams, Supervisor I, Refuse Collection

30 Years, Floyd W. Jones, Custodian II, Airport

20 Years, Gary L. Henry, Welder II, Equipment Services

Mayor Barr presented a Proclamation for January as "Crimestoppers Month".

Councilman Archibald noted a correction to the motion on Item 4.5 of the December 21, 2000 minutes to read, "Councilman Archibald made a motion to approve the 8MGD initial plant capacity with direction to staff to include in the bid the alternate to build an additional 4 MGD." There being no further corrections, additions, or deletions, Councilman Archibald moved to approve the December 14, 2000 minutes as printed and December 21, 2000 minutes as corrected. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

Councilwoman Alexander moved to approve consent agenda items 3.1 through 3.4, as recommended by the staff. Councilman Brown seconded the motion and the motion carried.

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

NAYS: None.

1. Oral Resolution approving a street use license request from Enprotec, Inc., for installation of monitoring wells related to 997 N. Danville Dr., and authorized the Mayor to execute the license.
2. Oral Resolution authorizing a professional services contract with Leisure and Recreation Concepts, Inc. (LARC) for the completion of a feasibility study for the Texas Forts Trail Visitor Center and Transportation Museum and authorize the City Manager to execute the contract subject to receipt of funds from the Taylor County Historical Foundation.
3. Oral Resolution approving an agreement releasing the City's reversionary interest in the Meals on Wheels facility at 917 N. Mesquite.

Bid Awards

4. Reconstruction of the Ambler/North Willis Intersection, Bid #CB-1013. The bid was awarded to Epic Construction Company of Abilene, Texas, in the amount of $280,352.10 as recommended by staff.

4.1 Mayor Barr stated the Skate Park, Bid #CB-1022, would be removed from today's agenda for further study on the alternate and other possible cost savings, as well as possible additional funding, and would be placed back on the agenda for the January 25, 2001 Council meeting.

4.2 Councilman Brown made a motion to remove from the table an Ordinance considered on second and final reading amending Abilene City Code Chapter 15, "Lakes", Article II, "Lake Ft. Phantom Hill", Section 15-20.1, "Placing Motor Vehicles or Other Obstructions Upon Lake Ft. Phantom Hill"; Article III, "Lake Abilene and Lake Kirby", Section 15-73, "Prohibited Areas, Lake Abilene and Lake Kirby". Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

Sharon Hicks, City Attorney, briefed the Council on the Ordinance considered on second and final reading amending Abilene City Code Chapter 15, "Lakes", Article II, "Lake Ft. Phantom Hill", Section 15-20.1, "Placing Motor Vehicles or Other Obstructions Upon Lake Ft. Phantom Hill"; Article III, "Lake Abilene and Lake Kirby", Section 15-73, "Prohibited Areas, Lake Abilene and Lake Kirby". Ms. Hicks stated the Ordinance is designed to prohibit destructive driving activities on the lakebeds of all three lakes, however in removing the word "stand", all fishing can take place. Staff recommends approval.

Councilwoman Alexander moved to approve the Ordinance amending Abilene City Code Chapter 15, "Lakes", Article II, "Lake Ft. Phantom Hill", Section 15-20.1, "Placing Motor Vehicles or Other Obstructions Upon Lake Ft. Phantom Hill"; Article III, "Lake Abilene and Lake Kirby", Section 15-73, "Prohibited Areas, Lake Abilene and Lake Kirby"; and thanked staff for the adjustment to the Ordinance, stating it is a good change with good modifications. Councilman Brown seconded the motion and the motion carried.

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

NAYS: None.

The Ordinance is numbered 1-2001 and is captioned as follows:

Mayor Barr stated Council would be considering item 4.4 before item 4.3.

4.4 City Manager Roy McDaniel briefed the Council on the Ivie Pipeline Financing Options item. Mr. McDaniel stated he is reporting to the Council to make sure everyone is up to date on where the City is on this project. Mr. McDaniel further stated for the past 12-15 months as the City has moved through the Ivie project, for safety purposes and to be conservative, all financial planning has been on the basis of paying for the project with local funds through the surcharge or water rates while at the same time exploring and pursuing possible federal or state assistance. Mr. McDaniel explained a State Participation program included in the Council's agenda packets. This program would involve the state loaning Abilene money to help with a portion of the project, however, that money would have to be paid back, probably at a little higher interest rate than what the City of Abilene could achieve on it's own. The state would allow 34 years to repay the loan, but interest would be accruing over that whole time frame, with a substantially higher total overall cost. Mr. McDaniel then described a federal program through the Rural Development Agency (RDA), which is a part of the U. S. Dept. of Agriculture. The federal program is a combination loan and grant, so if Abilene qualifies, a portion of it would not have to be paid back. Mr. McDaniel stated we found out just this week that a project cannot be eligible for both state and federal funding, and he recommends that the Texas Water Development Board be notified that we're not going to be pursuing funding through their program, but that we concentrate our efforts on going through the RDA program, which will take time. Mr. McDaniel asked if this is agreeable, that Council authorize moving the calendar back for the sale of the Certificates of Obligation and for the accepting and awarding of bids on the project itself. Mr. McDaniel further stated he would prefer to move the calendar back about 60 days to give time to fully pursue the RDA funding, and also recommended moving back the effective date of the water rate increase as approved at the last Council meeting. If Council agrees to these recommendations, the financing options as submitted in the Council's agenda packets need not be pursued at this time because if we're successful in acquiring federal funding, the numbers will change substantially.

Mayor Barr summarized his understanding of the City Manager's recommendations as follows:

1. Decline the State Participation as submitted from the Texas Water Development Board.
2. Pursue the federal program through the Rural Development Agency.
3. Postpone up to 60 days the award of the construction contract for the Ivie Pipeline.
4. Postpone the implementation of the water rates for 60 days from March 1 to May 1, 2001.

Mayor Barr stated the approximate timeline would then be to advertise for bids on Feb. 20, open bids March 22, award the bids April 26, and give notice to proceed May 24.

Council and staff discussed the possibility of this delaying the construction of the pipeline and the time it would come on line, by possibly 2 months. Mr. McDaniel stated the delay time won't be known for sure until bids are taken and we see what the contractor bids. Further discussion included the time line extension of two months, until the middle of the summer of 2002, not being a problem to the current water levels of Lake Ft. Phantom. Mr. McDaniel further stated enough water was caught last fall in Lake Fort Phantom for a year's supply and particularly with some water restrictions (phase 1) a 60-day delay shouldn't be a problem.

Councilwoman Alexander stated it would be irresponsible of Council not to pursue the RDA funding and grant, that even with the possible two-month delay the substantial amount of money is worth pursuing.

Councilwoman Alexander made a motion to approve staff's recommendation to pursue the Rural Development Agency program (noting in pursuing the RDA program the selection of a financing option today is no longer applicable), to delay the water rate increase until May 1, 2001 and to postpone the award of the contract for the Ivie pipeline for 60 days. Councilman Brown seconded the motion and the motion carried.

AYES: Councilmen Archibald, Southward, Brown, Councilwomen Alexander, and Mayor Barr.

NAYS: None.

4.3 David Wright, Director of Finance, briefed the Council on a Resolution expressing official intent to reimburse pre-construction costs with certificates of obligation for the O. H. Ivie project. With commencement of constructing the water transmission line from the O. H. Ivie Reservoir and a water treatment plant, the City expects to pay expenditures in connection with this project prior to the issuance of certificates of obligations to finance the project. Preliminary costs will include transformers; electric lines; pumps, motors and variable flow devices; power control valves; filters; and other related equipment for the acquisition and construction of this transmission line and treatment plant. However, so that Abilene can proceed with the project prior to the sale of the certificates, the Resolution needs to be approved by the City Council. The Resolution allows Abilene to enter into contracts prior to the delivery of the certificates of obligation funds. The certificates of obligation to support any cost associated with these projects is expected to be sold on February 22, 2001. Any expenditures on the project will be paid by the Water Utility Fund and then may be reimbursed upon delivery of the certificates of obligation money, which is estimated about March 29, 2001. Staff recommends approval.

Roy McDaniel, City Manager, stated the IRS requires this action in order for an entity to reimburse itself.

Councilman Brown moved to approve the Resolution expressing official intent to reimburse pre-construction costs with certificates of obligation for the O. H. Ivie project. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

The Resolution is numbered 1-2001 and is captioned as follows:

Mayor Barr recessed the Council into executive session pursuant to Sections 551.071, 551.074, and 551.072 of the Open Meetings Act, to seek the advice of the City Attorney with respect to pending and contemplated litigation, to consider the appointment and evaluation of public officers, and to consider the purchase, exchange, lease or value of real property.

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

5.1 Councilman Southward moved to approve Mayor Barr's appointment of Carole Pickett to the Keep Abilene Beautiful, Inc. Board, term expiring 11/2002; and the reappointments of Vickie Reynolds and Jim Aneff to the Sister Cities Committee, terms expiring 11/2003. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

There being no further business, the meeting was adjourned at 10:02 a.m.

Jo Moore, City Secretary

Grady Barr, Mayor