The City Council of the City of Abilene, Texas, met in a Pre-Council Work Session on January 25, 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, Victor G. Carrillo, Rob Beckham, 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.

City Manager Roy McDaniel stated the final portion of the Refuse Division functions would be presented today, and introduced Georgi Brooks-Newton, Refuse Division Program Manager, who gave a presentation on the Refuse Division functions. Following the presentation, Mr. McDaniel briefed the Council on various consent and regular agenda items. Mr. McDaniel stated Item 3.1, Resolution approving intervention in WTU's request to the Public Utility Commission for reconciliation of fuel costs between July 1, 1997 and June 30, 2000, and authorize hiring of consultants and attorneys, will be moved from the consent to the regular 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 25, 2001, at 9:00 a.m. in the City Council Chambers of City Hall.

Councilwoman Kay Alexander gave the invocation.

Mayor Barr led the Council and audience in the Pledge of Allegiance.

There being no corrections, additions, or deletions to the January 11, 2001 pre-council and council minutes, Councilman Southward moved to approve the minutes as printed. Councilman Archibald seconded the motion and the motion carried.

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

NAYS: None.

Consent agenda item 3.1 was moved to the regular agenda.

3.1 Mayor Barr stated item 3.1 has been removed from the consent agenda to allow for discussion. Sharon Hicks, City Attorney, briefed the Council on a Resolution approving intervention in WTU's request to the Public Utility Commission (PUC) for reconciliation of fuel costs between July 1, 1997 and June 30, 2000, and authorize the hiring of consultants and an attorney to review the filing. On December 28, 2000, AEP/WTU filed an application with the PUC seeking to reconcile fuel costs incurred during the period July 1, 1997 through June 30, 2000. WTU estimates that for this period, they have under-recovered their fuel and purchased power costs by $18,261,380 including interest through June 2000. This request affects all fixed fuel factor customers of WTU, of which Abilene is included. Ms. Hicks stated to protect the City's interest, it is recommended that Abilene intervene in this filing, utilizing Steven Porter, an attorney in Austin and allow him and his consultants to review the filing, effective January 15, 2001. Ms. Hicks addressed several issues concerning WTU, including the fact that they have several rate/ fuel cost cases before the PUC, one of which was just approved that will cost the average consumer an additional $8.64 a month plus a surcharge. Ms. Hicks stated another case is pending that if approved would be another $9.19 a month. Ms. Hicks further stated that historically a lower rate is awarded than what WTU requests, and that reasonable costs to hire attorneys and consultants are reimbursed to municipalities that intervene in utility revenue requests.

Council and staff discussed concerns about future prospects under electric power deregulation in 2002.

Councilwoman Alexander made a motion to approve the Resolution to intervene in WTU's request to the Public Utility Commission for reconciliation of fuel costs between July 1, 1997 and June 30, 2000, and authorize hiring of consultants and attorneys, as recommended by staff. Councilman Archibald seconded the motion and the motion carried.

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

NAYS: None.

The Resolution is numbered 2-2001 and is captioned as follows:

4.1 Anthony Williams, 1466 Mercedes Drive, Abilene, Chair of the Human Relations Committee (HRC), briefed the Council concerning HRC's reorganization efforts, goals, objectives, and charge.

Discussion and comments included: HRC goals being broad and inclusive, Council's appreciation of the committee's work and public service, the success of the Martin Luther King (MLK) banquet, size of HRC membership, the use of outside groups to help accomplish HRC goals, the original charge, the committee advising the City Manager and Council, bringing all aspects of the community together to honor MLK, focusing on what makes Abilene great, the role of HRC acting as a liaison between the community and Council, and the HRC going from a reactive committee to a proactive one.

At Mayor Barr's request, Mr. Williams read the following paragraph from the committee's new goals: " In our own small way, we on the Human Relations Committee believe we're promoting equality and opportunity for the people of this community. This is a great city, and when we give all of Abilene's people a chance to bring their positive energies to bear, when we work toward the goal of fairness for every citizen, our community can only become greater."

Councilman Beckham suggested the Committee review their charge and bring a recommendation back to Council to address that charge.

Mayor Barr gave special thanks to Mr. Williams, the committee, and staff liaison Sarah Hannah for their work on the MLK banquet.

No action was required.

4.2 Tucker Bridwell, President of the Development Corporation of Abilene, Inc. (DCOA), presented the DCOA report of activities for the fiscal year ended September 30, 2000. Mr. Bridwell noted the goals identified in the City's economic development efforts and briefed the Council on various businesses and industries created and retained; including the progress of the Five Points Business Park and presented a model of the park's new five point sign.

Council questioned Mr. Bridwell as to what he sees as the three major impediments and positives companies face in coming to Abilene. Mr. Bridwell replied the three impediments would be 1) the work force with 2.8% unemployment, 2) air transportation and 3) water, which although he does not know of any companies we've lost because of the water situation, it is a possibility; the three positives being 1) attitude, spirit, and teamwork of the entire community, 2) downtown revitalization, and 3) the incentives we offer. Mr. Bridwell stated the international competition as well as that of other states is getting more intense with a freer spending philosophy. Council complimented Mr. Bridwell and DCOA on a more expansive vision and regional approach, stating the activities of the DCOA reflect a 10-year success story.

Mayor Barr thanked Mr. Bridwell for the presentation and complimented the work of DCOA as well as that of Lisa Hoodenpyle, Director of Economic Development.

Councilman Archibald made a motion to approve, by Oral Resolution, the DCOA report of activities for the fiscal year ended September 30, 2000. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

3. Mike Hall, Director of Community Services, briefed the Council on the skate park, Bid #CB-1022. The City of Abilene and the Abilene Skate Park Association in March 1999 entered into a joint venture to construct a skate park in Abilene. The estimated cost of the project was $150,000, which was based on industry standards and architects past experience. The association agreed to raise $40,000 and the City of Abilene would fund the remainder. In February 2000, the Skate Park Association approached the Council with their progress in fund raising efforts for the skate park. The total amount of monies raised by the association was approximately $31,000, which brought the City to $141,000 budgeted for this project. There was some discussion by the Council at that time about any shortages coming from the facility improvement fund.

Only one bid was received on December 28, 2000, in the amount of $227,490, which included alternate 1. This was the second time the project was bid, with slight changes in the specification in hopes of increasing interest and reducing the cost of the project. Four contractors picked up bid packets at the pre-bid meeting. Factors contributing to the project coming in over the estimated budget included this being the first municipal below ground Skate Park in the state, contractors not being familiar with this type of project, and the soil test showing an extremely expansive soil at the proposed site, which will require substantial site work and stabilization.

Mr. Hall addressed the funding that is available for the project, noting the recommended $34,300 to be funded by the facility improvement fund will be reduced through change orders after the bid is awarded by $6,000 due to some of the work being done in-house and that the parks division will purchase the material and install a different type perimeter fence. Construction of the project is expected to take 90 days and can be started within the next two weeks. Staff recommends that the Council award the bid to Starks Construction in the amount of $199,990.

Council and staff discussion included: Rose Park being the best possible site for this facility, operating hours of the park, the number of people the facility will hold, liability being no greater at this facility than at any other facility, cost reduction not negatively affecting the structure, and staff having pursued every avenue of the project.

Councilwoman Alexander commended Mayor Barr on his leadership in assuring that we have a good facility at a lower cost.

Mayor Barr asked Jimmy McNeil, who had led the skate park campaign, to address the skate park issue.

Dr. McNeil, 642 E.N. 23^rd, noted the difficulty in raising the money, but stated the park will serve not only Abilene young people, but also those within the region; and encouraged Council to approve the request.

Councilman Beckham made a motion to award the skate park bid to Starks Construction in the amount of $199,990, as recommended by staff. Councilman Brown seconded the motion and the motion carried.

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

NAYS: None.

4.4 Richard Gertson, Director of Community Development, briefed the Council on a Resolution confirming the City's grant of $200,000 (Community Development Block Grant) to Neighborhoods in Progress (NIP) for housing development in the Carver neighborhood, and supporting NIP's tax credit application for the same. Mr. Gertson stated the annual CDBG one-year action plan approved by the City Council includes an allocation to a commercial neighborhood development fund. The Fund is used to support projects of a Community Based Development Organization (CBDO) in targeted neighborhoods. For the last several years, the Council's allocation has included a specific statement of intent that the fund will be used to implement a multi-family housing project pursuant to the objectives of the Carver Neighborhood Revitalization Plan adopted by the Council in July 1998.

Neighborhoods in Progress (NIP), our local CBDO, is implementing the project with special assistance from the National Development Council. NIP has engaged the Tittle Luther Partnership for concept development. Tentative plans call for six triplex units (eighteen dwelling units total) to be constructed on largely city-owned property at N. 8^th and Mesquite Streets. The initial cost estimate is $1.9 million. Staff has not yet been consulted to discuss development requirements, and it is anticipated a need for Planning & Zoning Commission action to provide some design flexibility for the project. NIP may also need to acquire a small tract or two.

NIP has formally requested $200,000 from the development fund with intentions to use the funds for architectural fees, construction interest, legal and organizational expenses, and as a project reserve.

Jack Harper, Executive Director of Abilene NIP, addressed the need to maintain and revitalize neighborhoods in Abilene and stated this is an affordable multifamily project in the Carver neighborhood. Mr. Harper explained the neighborhood selection process, the application for tax credits, and the limited and local partnerships.

Council discussion included: the merits of the project, the cost that must be considered, assurance that the money goes into the neighborhood, and the project needing to be economical to continue. Council recognized Odis Dolton as the driving force behind the Carver neighborhood, and Mr. Dolton expressed support of the project.

Sally Loveland, National Development Council, addressed the need for all aspects of the project to succeed, and noted the cost would continue to be monitored, although the $200,000 gap would exist no matter what the project cost.

Councilman Archibald moved to approve the Resolution confirming the City's grant of $200,000 (Community Development Block Grant) to Neighborhoods in Progress (NIP) for a housing development in the Carver neighborhood, and supporting NIP's tax credit application for the same, as recommended by staff. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

The Resolution is numbered 3-2001 and is captioned as follows:

Councilman Beckham requested that Council be informed when final cost of the project is known.

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, 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 Council was reconvened to the Basement Conference Room of City Hall for the Capital Improvements Program Workshop.

Council reconvened in the Basement Conference Room for the Capital Improvements Program Workshop.

4. Michael Morrison, Assistant City Manager, briefed the Council on the space situation in City Hall from its construction in1966 through the 1980s, when the law enforcement center moved from City Hall, creating vacant space in the basement. Following the bond election where voters approved among other things a new fire station and Emergency Operations Center (EOC), Tittle Luther was awarded in June of 1999 a contract for a space allocation study for the reallocation of space in City Hall to accommodate space needs, to utilize facilities to their maximum potential, to ease crowded areas, to link related functions and departments, and for construction of a new structure. Mr. Morrison stated with the vacancy of the building at 534 Cypress (Cypress Plaza) space for city offices and records storage is available and Tittle Luther has reported that Cypress Plaza is structurally sound and would accommodate the water and housing departments.

Mr. Morrison reviewed the space study construction phases reminding Council that a commitment to one phase of the project does not commit them to the other phases.

Mayor Barr questioned when under the phase process the community development department would all be moved to one area? Mr. Morrison replied that would occur during phase 3 or in the 3^rd year of the process.

Council concluded discussion of the space allocation study with questions and comments that included: why is the project so costly, the preference that a complete plan be presented versus the phase presentation, an opinion that switching the basement conference room with the break room is viewed as wasteful; reducing the overall cost, the need for a complete new air conditioning system was questioned, and a suggestion that phases 1 and 2 be done together moving everything up a year.

In reviewing the Capital Improvement Program (CIP), Mr. McDaniel stated the charter requires the Planning & Zoning division to submit a capital improvement plan to the City Manager. Mr. McDaniel then briefed the Council on the CIP process.

David Wright, Director of Finance, noted the March 8 Council meeting is being considered for the Certificates of Obligation (CO) sale.

Mr. McDaniel reviewed the CO process that was adopted in 1991. Mr. McDaniel stated selling COs for airport improvements involves extra expense, and noted the most economic sensible thing would be to not borrow for the airport but use the facility improvement fund, and to borrow for City Hall improvements.

Andy Anderson, Director of Public Works, distributed the 2001 CO potential projects and stated the 2001 funding request for $7,120,300 has been reduced to $2,000,000. Mr. Anderson reviewed the potential projects, and Mr. McDaniel concluded by asking Council to review the proposals and provide their input. Mr. McDaniel then stated that at the February 22 Council meeting staff would submit a recommendation and a calendar on the CO projects.

Mr. Anderson then reviewed the information distributed to Council on the recommended projects funded through General Obligation bonds.

There being no further business, the meeting was adjourned at 12:55 p.m.

Jo Moore, City Secretary to the Assistant City Manager

Grady Barr, Mayor