The City Council of the City of Abilene, Texas, met in a Pre-Council Work Session on February 22, 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 this would be the last Pre-Council Worksession, and noted that the Council meetings would begin at 8:30 a.m. in the Council Chambers starting with the March 8, 2001 Council meeting. Mr. McDaniel stated the final report of the Refuse Division functions would be presented today in regular session. Mr. McDaniel then briefed the Council on various consent and regular agenda items. 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 February 22, 2001, at 9:00 a.m. in the City Council Chambers of City Hall.

Councilwoman Kay Alexander gave the invocation.

Alexandria (Alex) Schkade, a third grader at Jones elementary, led the Council and audience in the Pledge of Allegiance. Alex's mother, Diane Willson and principal, Dana Mayhall, were also in attendance.

Mayor Barr announced that various divisions will be giving presentations over the next few months, and asked Mr. McDaniel to introduced this morning's division presentation.

City Manager Roy McDaniel introduced James Condry, Traffic & Transportation Administrator, who presented to the Council an overview of the Traffic Engineering division. Council discussion included enforcing parking time limits, pedestrian crossing signs, costs of traffic signals in new intersections and who pays those costs, school crossing guards, and Pine & Cypress parking violations.

No Council action was required.

There being no corrections, additions, or deletions to the February 8, 2001 Pre-Council and Council minutes and February 8 & 9 City Council Retreat minutes, Councilman Brown moved to approve the minutes as printed. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

Councilman Southward moved to approve consent agenda item 3.1 as recommended by the staff. Councilman Carrillo seconded the motion and the motion carried.

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

NAYS: None.

1. Oral Resolution approving a contract for Election Services with Taylor County Elections Office for the May 5, 2001 City General Election.

4.1 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on an Ordinance considered on second and final reading - Z-00301 - Rezone from AO (Agricultural Open Space) to RS-6 (Residential Single Family) zoning district property located in the 5200 block of Antilley Road. The Planning & Zoning Commission recommends approval; staff recommends denial.

Mayor Barr opened a public hearing on the item and the following individual spoke in favor of the request:

• Glen O. Dods, agent for the proponent, 91 E. N. 12^th street.

There being no one else present and desiring to be heard, the public hearing was closed.

Councilwoman Alexander made a motion to approve the Ordinance to rezone from Agricultural Open Space to Residential Single Family zoning district property located in the 5200 block of Antilley Road. Councilman Beckham seconded the motion and the motion carried.

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

NAYS: None.

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

4.2 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on an Ordinance considered on second and final reading - Z-00401 - Rezone from AO (Agricultural Open Space) to GC (General Commercial) zoning district property located at Brentwood and Bob-O-Link Drives. The Planning & Zoning Commission denied the request for the rezone and the proponent has appealed that decision. The Planning & Zoning Commission recommends Council deny the request; staff recommends tabling action to give the applicant and staff the opportunity to develop a PDD to control the environmental problems.

Mayor Barr opened a public hearing on the item and the following individuals spoke in response to the request:

• Scott Senter, agent for the proponent, 3401 Curry Lane, gave the history of the property starting with 1978 and problems that needed to be addressed (a picture of the property in 1978 was shown to Council). Mr. Senter encouraged Council's support of the GC zoning, stating the property would have been zoned GC in 1978 if a school site had not been there. Mr. Senter stated he will encourage further landscaping in future sales which would be to their benefit.
• Bob Wright, 4326 Bob O Link, stated he was initially opposed to the request but didn't have all the details, and recommended a 4'-6' hedge be placed to block the view from houses and to beautify the property.
• Dwayne Johnson, 4302 Sherwood, stated he is not opposed to construction, but is concerned with the water that comes into the residential area.

There being no one else present and desiring to be heard, the public hearing was closed.

Following discussion, Councilman Beckham made a motion to approve the Ordinance to rezone from Agricultural Open Space to General Commercial zoning district property located at Brentwood and Bob-O-Link Drives. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

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

4.3 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on an Ordinance considered on second and final reading - Z-00501 - Amend PDD-73 property located on Arnold Blvd. south of Marigold regarding industrial park signage. The Planning & Zoning Commission and staff recommend approval.

Mayor Barr opened a public hearing on the item, and there being no one present and desiring to be heard; the public hearing was closed.

Councilwoman Alexander made a motion to approve the Ordinance to amend PDD-73 property located on Arnold Blvd. south of Marigold regarding industrial park signage as recommended by the Planning & Zoning Commission and 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 Ordinance is numbered 4-2001 and is captioned as follows:

4.4 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on an Ordinance considered on second and final reading amending Sections 23-356.1.H, 23-356.2.G (1), 23-356.2.H (1) and 23-356.2.I (1) of the Zoning Ordinance pertaining to application deadlines of the Planning and Zoning Commission and Board of Adjustment meetings. The Planning & Zoning Commission and staff recommend approval.

Mayor Barr opened a public hearing on the item and there being no one present and desiring to be heard; the public hearing was closed.

Councilman Brown made a motion to approve the Ordinance considered on second and final reading amending Sections 23-356.1.H, 23-356.2.G (1), 23-356.2.H(1) and 23-356.2.I(1) of the Zoning Ordinance pertaining to application deadlines of the Planning and Zoning Commission and Board of Adjustment meetings, 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 Ordinance is numbered 5-2001 and is captioned as follows:

Mayor Barr stated appreciation to staff for their pro-active approach in this process.

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 Financial Workshop.

Council reconvened in the Basement Conference Room for the Financial Workshop at 12:30 p.m. Mayor Barr stated Council would conclude today's workshop session no later than 2:30 p.m.

Roy McDaniel, City Manager, briefed the Council on the workshop's agenda items, which include the review and acceptance of Financial and Investment Policies and FY 2000 Financial Report; review of the First Quarter Financial Status; discussion and possible action on the Capital Improvements Program; and discussion and possible action regarding critical issues and future needs for the 2001-2002 Budget.

David Wright, Finance Director, introduced auditor Don Ashmore of Davis, Kinard & Co. and Mindy Whisenhunt, Assistant Director of Finance. Mr. Wright explained the budget document and transmittal letter, then reviewed the General Fund Revenue and Expenditures as of September 2000. The General Fund recommended use of year-end balance was also reviewed as follows:

• $ 250,000 - Designated for Police Pay
• $ 100,000 - Technology
• $ 75,000 - Facilities Improvements
• $ 75,000 - Self Insurance
• $ 75,000 - Equipment Replacement

• $ 14,826 - Undesignated

Undesignated balance @ 9-30-00 - $8,670,252 1.92 months

Mr. Wright reviewed the Water & Sewer Fund operating summary and addressed the budget basis actuals, operating expense, GAAP basis actual - major capital improvements.

City Manager Roy McDaniel briefed the Council on the history of water & sewer utility funds and how they currently are required to be maintained, and expressed the importance of generating internal cash for ongoing system improvements. Mr. McDaniel then encouraged the Council to read the Financial and Investment Policies, noting Council's approval is required on both.

Don Ashmore, auditor for Davis, Kinard & Co., briefed the Council on the Auditor's Management Letter, giving an overview of their findings that showed the City is in compliance, including Federal programs. Mr. Ashmore informed the Council that there are 53 grants being issued through our Finance department, noting there was $5.7 million in grant expenditure last year. Mr. Ashmore then outlined from the Management Letter three recommendations for overall improvement. Mr. McDaniel and Mr. Wright noted the City only applies for grants that would meet an expressed and viable need.

Following the audit report, Mr. McDaniel announced Mr. Ashmore will be going to Hardin- Simmons University, and that this is Mr. Ashmore's last report to Council. Council thanked Mr. Ashmore and wished him well.

Councilman Archibald moved to approve and accept the Financial and Investment Policies, the Comprehensive Annual Financial Report (CAFR) for FY 2000, the audit report as presented and authorized the transfer of funds for the use of year-end balance, as presented by staff. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

Mr. Wright introduced Finance Department staff Regina Smith and Melissa Irby, then reviewed the General Fund Revenue by Category chart, FY 2000-2001 and the General Fund/Water Utility Summary of Revenue & Expenditures for Budget Fiscal Year 2001 as of January 31, 2001.

Andy Anderson, Director of Public Works reviewed the Capital Improvements Program and distributed handouts of the Certificates of Obligation (COs) and General Obligation bond projects. The recommended $2,000,000 in COs is for the purpose of constructing municipal facility improvements which include parks & recreation improvements, constructing improvements and repairs to city streets, together with traffic and street signalization improvements, and improving and renovating City Hall and City owned Cypress Plaza building. The sale of the General Obligation bonds as approved by voters in 1998 would finance a variety of capital improvements including street and traffic/transportation improvements.

Mr. Wright stated at the March 8, 2001 meeting, Council would have before them the Resolution directing publication of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation, Series 2001.

Council and staff discussion concerning the CO sale included: the costs involved in the City Hall rehabilitation; options available that would be brought back to the Council; a decision if the Council chose not to utilize CO money to rehabilitate City Hall resulting in those COs then becoming "municipal facilities" COs; delaying the City Hall renovation resulting in two separate CO sales and two separate costs to the City; Council's flexibility in approving projects and the possibility of the Hotel/Motel tax revenue being used to offset the Civic Center costs.

Council and staff briefly discussed critical issues and future needs for the 2000-2001 budget. Discussion included: looking at interlocal agreements with other entities in the areas of technology and communications systems to bring in economic development, funding to hire a consultant to study the City's communication system, the increase in electricity and natural gas costs, TXU's offer to bring proposal packets for better rates, the status of the zoning code rewrite, the comprehensive plan, and the need for further discussion concerning next year's budget.

Mayor Barr stated and Council agreed that the March 8 Council meeting would again be followed by a budget workshop.

There being no further business, the meeting was adjourned at 2:43 p.m.

Jo Moore, City Secretary

Grady Barr, Mayor