The City Council of the City of Abilene, Texas, met in Regular Session on March 8, 2001, at 8:30 a.m. in the City Council Chambers 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.

Councilman Norm Archibald gave the invocation.

Pledge of Allegiance was led by Ricky Stevenson, a fifth grader at Lee Elementary who was accompanied by his principal, Ladessa White.

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

35 Years, Charles W. Parker, Maintenance Worker II, Refuse Collection

30 Years, Henry Davila, Jr., Fire Lieutenant, Fire Department

30 Years, Joe L. Middleton, Fire Fighter, Fire Department

20 Years, Donald R. Brown, Police Officer, Police Department

20 Years, Rick D. Dorman, Police Officer, Police Department

20 Years, David R. Gilbreath, Lake Patrol Officer, Water Department

20 Years, Richard W. Woodard, Police Officer, Police Department

Mayor Barr presented the following Proclamations:

March "National Athletic Trainers Month 2001", and

March 8 as "White Cane Day"

Mayor Barr asked Mr. McDaniel to introduce the Streets & Drainage Services division presentation. Mr. McDaniel introduced Jerry Garcia, Streets Superintendent. Mr. Garcia introduced Joann Bilski of the Streets & Drainage Services division. Following Mr. Garcia's presentation, Mr. McDaniel stated Council made a decision in 1981 based on economics not to stay in the street construction business, but continue to repair, maintain, and do minor construction. Mr. McDaniel continued by stating today due to the price of equipment it is still not cost effective for Abilene to do major street construction.

Council suggested taking advantage of and optimizing the many employee talents as seen through the presentation today, and stated how rewarding it is to see such accomplishments as presented today.

No Council action was required.

Mayor Barr stated the February 22, 2001 Pre-Council and Council minutes will be submitted for council approval along with the minutes from today's council meeting at the March 22 meeting.

Council was distributed memos from staff on items 3.8 and 3.9, indicating staff's approval of item 3.8 and Planning & Zoning having tabled item 3.9, thus removing it from today's agenda. Councilman Archibald moved to approve consent agenda items 3.1 through 3.7, as recommended by the staff and approval of first reading of item 3.8. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

1. Resolution appointing election officials for May 5, 2001 City General Election, and fixing rate of compensation.

The Resolution is numbered 6-2001 and is captioned as follows:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ABILENE, TEXAS, APPOINTING VARIOUS ELECTION OFFICIALS, AND FIXING THEIR RATE OF COMPENSATION FOR THE MAY 5, 2001; CITY GENERAL ELECTION.

2. Oral Resolution approving and authorizing the Mayor to execute a street use license request from Schkade Brothers Operating Company for the purpose of installing and maintaining an underground pipeline in the Anson Avenue right-of-way.
3. Resolution in support of transportation improvements for Dyess Air Force Base North entrance.

The Resolution is numbered 7-2001 and is captioned as follows:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ABILENE TEXAS, SUPPORTING TRANSPORTATION IMPROVEMENTS TO SERVE THE DYESS AFB NORTH ENTRANCE.

4. Resolution approving an amendment to the Transportation System Management Services Contract and Agreement.

The Resolution is numbered 8-2001 and is captioned as follows:

A RESOLUTION OF THE CITY COUNCIL THE CITY OF ABILENE TEXAS, AMENDING THE TRANSPORTATION SYSTEM MANAGEMENT SERVICES CONTRACT AND AGREEMENT.

5. Oral Resolution approving and authorizing the City Manager to execute a professional engineering service contract with Jacob & Martin, Inc. to design and prepare plans and specification for water utility system projects not to exceed $232,000 and surveying as needed on an hourly basis for a fee not to exceed $56,500.
6. Oral Resolution authorizing payment to Starks Construction for emergency sanitary sewer line installation in the amount of $14,576.72.

Bid Awards:

7. One aerial platform apparatus for the Fire Department, Bid #CB-1024. The bid was awarded to Sutphen Corporation in the amount of $632,117, as recommended by staff.

Ordinances:

8. Approval of first reading - Z-005400 - Amend PDD-45 property located on Frenchman's Creek Road to allow storage buildings, and set a public hearing for March 22, 2001 at 8:30 a.m.

AN ORDINANCE OF THE CITY OF ABILENE, TEXAS, AMENDING CHAPTER 23, SUBPART E, "ZONING," OF THE ABILENE MUNICIPAL CODE, AND ORDINANCE NO. 68-1986 CONCERNING THE PDD#45 PLANNED DEVELOPMENT DISTRICT; DECLARING A PENALTY AND CALLING A PUBLIC HEARING; AND AN EFFECTIVE DATE.

9. Z-00801 - Rezone from AO (Agricultural Open Space) to MH (Mobile Home) zoning district property located at 9833 West Lake Road. Removed from today's agenda as a result of the Planning & Zoning Commission having tabled the item at their March 5, 2001 meeting.

4.1 Assistant City Manager Michael Morrison briefed the Council on an Oral Resolution approving architectural services contract for City Hall and Cypress Plaza renovation. Mr. Morrison stated since 1987, reuse of space in the City Hall building has been examined several times. In 1998, the City Council authorized a space allocation study to determine the most advantageous location for the Emergency Operations Center and to establish long-range plans for use of space in City Hall and at the Cypress Plaza building. The most effective use of space at the best cost is of prime consideration as this project is considered. In order to provide more precise cost estimates and to develop a scheme to allow the maximum flexibility in timing and total cost of the project, staff is proposing an architect develop detailed plans and specs for all phases of the project (basement renovation, Cypress Plaza renovation, development services consolidation, and departmental relocation). This will enable staff and the Council to view the total project with its associated costs. Staff recommends approval of an architectural services contract with CADCO for a fee of 7.5% of the projected bid price plus the estimated cost of the various bid alternates for a maximum cost of $135,000. The plans and specs developed will provide for several bid alternates and phasing schedules to allow maximum flexibility in deciding the final scope of the project.

Mayor Barr outlined his understanding of the project as follows: 1) before the Council today is Step 1, hiring of the architect, 2) consideration will be given to going through Phase 1 & 2 at an estimated maximum budget of $1,300,000 and 3) Phase 3 will be considered at a cost of $465,000. Mayor Barr recommended capping the architect's fee not to exceed the total budget of $1,765,000 at the 7.5%, which would be $132,375.00.

Council and staff discussion included the Mayor's recommended cap eliminating the possible incentive to increase the size of the project, having CADCO submit a cost to include the proposed uses but with no renovation to the basement, alternates to be brought back to Council, and the architectural firm selection process.

Councilwoman Alexander moved to approve by Oral Resolution the architectural services contract with a cap of $132,375.00 for the City Hall and Cypress Plaza renovation. Councilman Beckham seconded the motion and the motion carried.

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

NAYS: None.

4.2 David Wright, Director of Finance, briefed the Council on a Resolution directing publication of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation, Series 2001.

Mr. Wright stated on the first page of the 2001 CO potential projects handout under the Municipal Facilities, the Auditorium Stage Lighting is for the Civic Center and should have been so noted. Due to that oversight, the Resolution and the Notice of Intention to Issue Combination Tax and Revenue COs, Series 2001, have been corrected to include the words "Civic Center".

Mr. Wright read a portion of the letter from bond counsel in response to Council's questions concerning shifting dollars from one project to another. The letter noted moving dollars from one project to another project stated in the Notice can be done but the Attorney General is very specific that Municipal Facilities be identified. Mr. Wright stated all of the noted projects, being bid projects would come back to Council for approval.

Council and staff discussion included: the wording in the Notice of Intention having to be specific in naming facilities but not streets, etc., Cypress Plaza being included in the Notice solely to allow Council flexibility if needed, opposition to authorizing $1.1 million without cost figures, the additional cost of issuance if projects are split up in separate CO sales, going to market more than once a year being perceived by the lenders as a negative, the number of projects not being funded, public input received on projects being funded and needing to be funded, the cost to increase the number of concrete intersections, and the cost of park restroom facilities.

Councilman Beckham made a motion to approve with corrections as submitted by staff the Resolution and Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation, Series 2001. Mr. Beckham reiterated to staff that approval of this item does not bind Council to the renovation of the City Hall basement project. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: Councilman Southward.

4.3 Dwayne Hargesheimer, Director of Water Utilities, briefed the Council on an Oral Resolution approving a professional service contract amendment with Freese & Nichols, Inc. for the O. H. Ivie water system project. The original contract of $2,644,150.00 is being revised to $2,882,710.62. Additional funds will come from the Projects Fund for the O. H. Ivie project. Staff recommends that by oral resolution the City Council authorize the City Manager to execute a contract change authorization with Freese & Nichols, Inc. that reflects the revised contract modification for an amount not to exceed $2,882,710.62.

Mayor Barr stated prior to hearing this item which does require Council action, a report which will not require Council action will be presented by Ken Martin of Jacob & Martin, Inc. regarding USDA Rural Development funding assistance.

Mr. Martin briefed the Council on actions taken in submitting the appropriate documents to the local and state offices for USDA Rural Development assistance. Mr. Martin referenced a letter received by the City Manager on March 7 from USDA Rural Development. Mr. Martin stated the letter is not a positive one, addresses requirements that can be met but poses a timing problem and the letter recommends that although the City has proposed to continue with its construction bidding timetables that no action be taken until USDA Rural Development has had reasonable time to review the proposed actions.

Mayor Barr reiterated that the application submitted was on behalf of the rural communities. The Mayor then briefed the Council on actions that had been taken, and recommended postponing advertising for bids for 30 days, stating he believes we'll have an answer by then.

Council concerns and questions included: having to accept both the 50% grant and 50% loan, there being no benefit to the small communities if less than a 50% grant is received, USDA Rural Development assistance being intended for rural areas, when the USDA decision will be made, grants being intended to assist in reducing water cost, comparing the rural water systems and rural water cost to Abilene being unfair, supplemental information to be submitted to USDA on the comparison differences and the City's water conditions for the upcoming summer.

Mayor Barr asked City Attorney Sharon Hicks for direction to Council in this matter. Ms. Hicks replied no Council action is needed today, but that it is understood the advertising for bids will be delayed for 30 days.

Mr. Hargesheimer stated Kay Bailey Hutchinson's office has indicated funding may be available for the treatment plant and if so processing of that application will take place soon.

Following Mr. Martin's report, the briefing on the Freese & Nichols, Inc. professional services contract was resumed with Mr. Lee Freese of the Fort Worth firm addressing the Council. The request for the original contract of $2,644,150.00 to be revised to $2,882,710.62 is based on the discovery when soil cores for the main lake pump station site were being drilled, the preliminary samples showed much more extensive geotechnical exploration being needed.

Mayor Barr expressed great respect for Freese & Nichols, Inc. but based on a contractor's perspective, the Mayor stated concerns on consideration being given to an amendment of a contract prior to the work being completed. The Mayor then suggested Council consider tabling this item until the end of the project at which time any necessary contract change authorization can be presented to Council for their consideration.

Councilman Beckham made a motion to table the Oral Resolution approving a professional services contract amendment with Freese & Nichols, Inc. for the O. H. Ivie project. Councilman Carrillo seconded the motion and the motion carried.

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

NAYS: None.

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.

There being no further business, the Council was reconvened to the Basement Conference Room of City Hall for the Council Workshop.

Council reconvened in the Basement Conference Room for the City Council Workshop at 11:40 a.m.

Roy McDaniel, City Manager, and Michael Morrison, Assistant City Manager, noted the issues for the Council discussion today include the summary from the Council retreat, issues identified by past Councils, and each department director's top three critical issues. Before reviewing the critical issues, Mr. Morrison informed Council that a Comprehensive List of Critical Issues from the department directors will be provided to Council, and Mr. Morrison noted some are multi-year issues.

• Need to define the City's mission: Council agreed the City's current Mission Statement is inadequate.

A committee will be appointed, with Councilman Archibald agreeing to serve as chair to develop a new Mission Statement.

Mr. Morrison continued with the summary of issues from the Council retreat as follows:

• Identification of community needs; determination of service levels the community expects and is willing to support financially.
• Ensuring cost competitiveness for delivery of City services.
• Improving communication within the organization and with the community at large.

Mr. McDaniel addressed critical issues identified by past Councils, noting that issues do change. Mr. Morrison explained the past process for identifying critical issues.

• Neighborhood revitalization.
• Planning and development of water resources.
• Economic development through job creation and expansion of the tax base.
• Full use of technology to enhance our ability to deliver services to the community.
• Effective recruitment, development and retention of workforce.
• Focus on customer service.

Mr. Morrison reviewed the issue of public safety, and the emergency management program.

• The City's Public Safety communications system is in need of upgrading. There are areas around the city where emergency crews have difficulty communicating, which creates confusion. The FCC has imposed a 2005 deadline for cities to migrate from their current radio channels to the FCC approved expanded frequencies. This is also driving our need to replace the communication system.

• Conduct a needs assessment for an integrated Public Safety Communications System solution; develop a viable solution to meet the needs, pursue funding and implementation of the system. (9-1-1 dispatching, Police, Fire, Utilities and Services)

• Radio
• Telephone
• Mobile Data
• Migration to 800 MHz frequency
• Migrate from mainframe to PC
• Computer Assisted Dispatch
• Records Management
• Automatic Vehicle Location-("AVL")
• GIS Integration

• Emergency Management program has been reviewed and is in need of modification.

Council questioned funding needed for these issues. Mr. Morrison stated cost and options would need to be determined, time frames considered and our communication system defined. Mr. McDaniel stated the #1 priority is to look for funding through grants.

• A Comprehensive Plan has not been updated since the 70's. Need to update the Plan to provide guidance in development and public investment decisions.
• Need to move Planning from permitting function to planning and visioning focus.
• The challenge of supplying adequate quantities of high quality water in a semi-arid area has required continuous operational evaluation and expansion of supply. Demand management strategies will be a continuous necessity. Most of the water and wastewater system was installed in the city during the 1950's through the 1960's. Infrastructure rehabilitation is critical in maintaining system integrity.
• Streets/Drainage personnel perform significant amounts of work other than street/drainage maintenance, which has decreased our ability to conduct routine maintenance on our streets. This, combined with the reduction in staff has led to reactive maintenance and utilization of chip seals as our only approach to street maintenance.
• Adequate infrastructure necessary to support ongoing economic development.
• The Airport Master Plan is being finalized and will be used in responding to development requests now before the City. Much of the Plan's focus centers around exploiting the transportation network that Abilene has to offer and developing a multi-modal center that will bring air, rail, and highway together for logistics, distribution and manufacturing activities. Planning, zoning, land acquisition, and careful implementation of an Airport Master Plan are needed for Abilene Regional Airport to fully mature into the economic engine that it has the potential of becoming. While an aggressive legislative agenda is in place to capture federal dollars, significant matching funds will be needed to implement the Master Plan.
• As a result of the drought, major repair to irrigation systems throughout the parks system may be anticipated. In some instance, major renovations may be necessary.

Council discussed the Comprehensive plan being updated and how an update could diminish staff workload.

Airport Manager Rick Crider will bring a pilot presentation of the Airport Master Plan to Council the last part of April 2001.

• Implementation of a coordinated development services concept to improve customer service.
• Evolve City's Web site to more current status from design and usage perspectives, providing for dynamic presence and ability for public to obtain information, conduct business and access government services via the Internet. No dedicated position to support, currently utilizing internal project staff resources and working with ACU graduate class for some assistance. Must determine timing and ability to integrate with financial software and divisional processes, need to enhance firewall security.
• Growing number of families applying for housing (often due to loss of job or declining income).

Mr. Morrison noted the benefits to cross train staff (group functions) versus the one stop shop theory.

• Police pay increase will have substantial impact on the budget. Council's commitment to review all employees' compensation based on market may have substantial impact on budget.
• We continue to lose key/experienced personnel to retirement. For example:

• 49 Fire Department Civil Service personnel will be eligible for retirement by the end of this year. That number increases to 100 in the following five years.
• Two key Public Works positions of senior engineer and senior surveyor are eligible for retirement.

• Advancements in technology have created the need for a more technically skilled work force. For example: improved construction materials/methods, and water/wastewater treatment technologies have resulted in more reliable and safer operations. Computerized information systems have enhanced data collection and management.
• Employee Recruitment and Retention

• A stable and skilled workforce does lead to enhanced ability to deliver quality service. Public Works has recently lost the street superintendent to the private sector and the refuse superintendent to a larger municipality. The City Attorney's Office must have attorneys who can handle corporate issues and be adept at litigation cases in both state and federal court. On the occasions where the office is short-staffed or the workload is too intense, outside counsel must be retained at substantial cost.

• The Police Department is in a continuous recruitment and retention mode and future police academies must be scheduled accordingly.

• Risk Management

• The Cost of Health Care - Since FY 89/90, the cost of the City's self-funded health and prescription drug program has increased 148% from $2.5 million to $6.2 million in FY 99/00. The cost of the City's prescription drug program has increased by 206%. All industry indicators suggest that there is no "end in sight" to the ever-increasing cost of health care. Industry experts predict double-digit increases in major medical costs and high double-digit increases in prescription drug costs.

• We need to review staffing in Municipal Court and consider additional Judge, clerks, and marshals to accommodate increased workloads.

Fire Chief Bob Putnam briefed the Council on the history and current situation regarding the number of Fire Department employees eligible to retire and the benefits of hiring graduates of a fire academy operated by Texas State Technical College versus the City operating their own academy.

Police Chief Melvin Martin briefed the Council on the police academy process, and the difference between a police and fire academy. Chief Martin then addressed the shortage in the current Police Department workforce.

City Attorney Sharon Hicks gave legal & liability reasons for operating our own Police Academy, noting one liability issue in which the state requirements are currently being exceeded by our academy is in the area of training. Chief Martin stated that there has been no arbitration in the past 8 years.

Council took a short recess at 1:00 p.m., and reconvened at 1:05 p.m.

Mr. Morrison continued briefing Council on the workforce and recruitment and retention issues.

David Wright, Director of Finance, briefed the Council on Court issues and the backlog of traffic and parking citations.

Council noted the possible need to have the architect design a second courtroom in City Hall.

• Insurance rates are priced through the Insurance Services Office (ISO) grading schedule. The affect of the ISO rating on Abilene's Public Protection Classification (PPC) in the future is unknown. The City should prepare to be inspected within the next two to three years. The future of the ISO and its relationship with the insurance industry is also an uncertainty at this time. Enforcement of building codes and adequate water infrastructure and responsive fire protection all impact rating. A drop of one level in ranking would result in an increase in insurance cost.

• To accomplish system architecture objective of Strategic Plan, must migrate Accounting, Payroll and Police to PC environment. VAX (mainframe) system is near obsolescence, and costly to maintain. Significant software costs involved.