The City Council of the City of Abilene, Texas, met in Regular Session on March 22, 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, Victor G. Carrillo, 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, Acting City Secretary Debbie Hurley, and various members of the City staff. Councilmen Kris Southward and Rob Beckham were absent.

Councilman Victor Carrillo gave the invocation.

Pledge of Allegiance was led by Ta'jevius Young, a second grader at Lee Elementary who was accompanied by his principal, Mrs. Leong and his teacher, Mrs. Greenwood.

Mayor Barr asked Mr. McDaniel to introduce the Design Services & Inspection Services divisions presentations. Mr. McDaniel introduced Bob Lindley, City Engineer, who gave a presentation on the Design Services division. Mr. Lindley then introduced Ray Jennings, Inspection Services Manager, who briefed the Council on the Inspection Services division. Following the presentations, Mayor Barr and the Council expressed their appreciation.

No Council action was required.

There being no corrections, additions, or deletions to the February 22, 2001 Pre-Council and Council Minutes and March 8, 2001 Council Minutes, Councilman Brown moved to approve the minutes as printed. Councilman Carrillo seconded the motion and the motion carried.

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

NAYS: None.

Item 3.1 was removed from the consent agenda to be considered separately at the request of Councilwoman Alexander, Gary Glenn of Abilene Motor Sports, and Janie Propst of the Rotary Club. Councilman Archibald moved to approve consent agenda items 3.2 through 3.4, as recommended by the staff. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

ABSTAIN: Councilman Carrillo on Item 3.2 only, due to his employment with Hardin-Simmons University.

1. Oral Resolution authorizing the City Manager to enter into an agreement with Abilene Motor Sports, Inc. and the Sports Club of America for the Sunburn Grand Prix to be held May 5-6, 2001 at Abilene Regional Airport. Removed from the consent agenda to be considered separately at the request of Councilwoman Alexander, Gary Glenn of Abilene Motor Sports, and Janie Propst of the Rotary Club.
2. Resolution confirming hearing officer and authorizing Mayor to execute approval of Highest Elected Official form for issuance of obligations by the Stamford Higher Education Facilities Corporation for Hardin-Simmons University.

The Resolution is numbered 10-2001 and is captioned as follows:

APPOINTING A HEARING OFFICER IN CONNECTION WITH THE ISSUANCE OF OBLIGATIONS BY THE STAMFORD HIGHER EDUCATION FACILITIES CORPORATION FOR THE BENEFIT OF HARDIN-SIMMONS UNIVERSITY AND AUTHORIZING THE MAYOR OF THE CITY OF ABILENE TO APPROVE CERTAIN MATTERS AS REQUIRED BY SECTION 147(f) OF THE INTERNAL REVENUE CODE.

3. Oral Resolution approving a street use license agreement with First National Bank of Baird for property located at the southeast corner of Buffalo Gap Road and the Winters Freeway to allow the use of a portion of the City right-of-way to increase the parking for the proposed branch bank.

Bid Awards:

4. Transformers for the O. H. Ivie Project, Bid #CB-1028. The bid was awarded to Sunbelt Transformer in the amount of $419,500.00 as the most advantageous to the City, and as recommended by staff.

3.1 Rick Crider, Airport Manager, briefed the Council on an Oral Resolution authorizing the City Manager to enter into an agreement with Abilene Motor Sports, Inc. and the Sports Club of America for the Sunburn Grand Prix to be held May 5-6, 2001 at Abilene Regional Airport. Mr. Crider gave a history of the races at the airport since 1990 and concluded with the plans for the upcoming races. Mr. Crider stated the Airport Development Board and staff recommends approval contingent on FAA approval and $8,000 to be paid by AMSI for damages sustained during the 1999 and 2000 Sunburn Grand Prix and Shoot Out races. Mr. Crider recognized Airport Development Board members in attendance, then introduced Board President Larry Gill. Mr. Gill stated that five years ago the board was made aware of FAA's concerns regarding the appropriateness of the races at the airport. Mr. Gill acknowledged the benefits of the races for the city's revenue, and mentioned plans to move the races from the airport. Mr. Gill briefed the Council on the past three years' activities at the airport, and in conclusion stated in December of 2000 the Airport Development board agreed to recommend to Council approval of the races for one more year contingent on FAA approval, and FAA did agree to give the request consideration.

Council and staff discussion included: the $8,000 in damages which included deterioration of pavements from 1999 and 2000, resurfaced pavement markings, 4 taxiways and runways; if the damages were cumulative; the original amount of $10,000 in damages with a estimated compromise of $8,000 having been agreed upon based on city crews doing the work; and the airport not being subsidized.

Mayor Barr recognized Gary Glenn, 110 Ingram Lane, President of Abilene Motor Sports. Mr. Glenn distributed two handouts and produced the $8,000 check, stating he is representing Abilene Motor Sports, the Professional Car Association, and the Rotary Club. Mr. Glenn stressed they have nothing to do with building a racetrack, but are merely promoting professional racing. Mr. Glenn read a statement by the Abilene Motor Sports board that addressed the association's charitable nature, then challenged the Council regarding the $8,000; asking whether it would be better used for charity or airport repairs.

Further discussion included: should Abilene taxpayers be asked to subsidize the races even though the revenue comes into the community; other nonprofit organizations which are self-supporting; AMSI's request being the same as nonprofit organizations using city facilities and asking the city to underwrite the expenses; nonprofits being responsible for costs and damages; sympathizing with AMSI regarding the lack of a racetrack, and the hope that the track situation will soon be resolved.

Janie Propst, 1010 Mesquite, President of the Rotary Club, recognized volunteers in the audience. Ms. Propst stated rents charged for the races were placed into the general fund, outlined city projects the Rotary has donated funds to, and listed nonprofit agencies they support. Ms. Propst stated the Rotary board was disappointed in the City requiring payment of the $8,000 for damages, and asked Council to reconsider.

Linda Eaves, 2710 Arrowhead, asked why the $8,000 request was made after the time period for AMSI to file an insurance claim had passed.

Mr. Crider replied staff met with Mr. Lenker and Mr. Dohrse within a few weeks after the races and addressed those damages, referencing pictures that were taken on May 16, 1999.

Council discussion included: the City's $1600-$2000 charges covered preparation and time used by airport personnel for those races; AMSI asking Mr. Crider to wait to make repairs until after the spring event; and if after the repairs are done and the cost is less than the $8,000, the balance going back to AMSI.

Donna Burcham, 3334 Hoylake, Rotarian, asked if the FAA concerns were in writing, and when nonprofits use the Civic Center, do they have to replace the carpet? Ms. Burcham further stated she is upset over plans to use the funds to repair the runway, not about racing.

Further discussion included: the difference between the purpose of the Civic Center being for public activities versus the airport use, and timely documentation on estimated damages from future races.

Councilman Archibald moved to authorize the City Manager, by Oral Resolution, to enter into an agreement with Abilene Motor Sports, Inc. and the Sports Club of America for the Sunburn Grand Prix to be held May 5-6, 2001 at Abilene Regional Airport contingent on FAA approval; and acknowledged receipt of the $8,000 for prior damages, with the stipulation that if repairs are less than $8,000 the balance can be returned to AMSI. Councilman Carrillo seconded the motion, urging staff to make every effort to have the repairs made for less than the $8,000, and the motion carried.

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

NAYS: None.

4.1 City Attorney Sharon Hicks briefed the Council on a Resolution authorizing City intervention in AEP/WTU's request for authority to implement a surcharge of fuel cost under-recoveries, PUC Docket #23770. Ms. Hicks stated that on March 2, 2001, AEP/West Texas Utilities (WTU) filed an application with the Public Utility Commission (PUC) seeking to again surcharge customers for alleged fuel under-recoveries. Ms. Hicks further stated the amount sought is substantial, and if authorized WTU would surcharge $59,483,991 over the period from July 2001-December 2001. Assuming that WTU's request is granted, typical residential customers can expect their electric bill to rise another $17.40 (17.25%) in addition to the previously approved amounts. This is the third filing by AEP/WTU in four months and comes on the heels of several fuel cost increases. Ms. Hicks noted we are at the point where rate shock is a legitimate concern and to protect the City's interest, it is recommended that we intervene in this filing. Ms. Hicks further recommended Steven Porter be utilized, as in the past, and allow him and his consultants to review the filing and see what can be done to mitigate rate shock.

Councilwoman Alexander moved to approve the Resolution authorizing City intervention in AEP/WTU's request for authority to implement a surcharge of fuel cost under-recoveries, PUC Docket #23770. Councilman Archibald seconded the motion and the motion carried.

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

NAYS: None.

The Resolution is numbered 11-2001 and is captioned as follows:

4.2 Jeff Armstrong, Assistant Director of Community Development, requested Council table the Ordinance considered on second and final reading - Z-005400 - Amend PDD-45 property located on Frenchman's Creek Road to allow storage buildings in order to allow time to clarify ownership of the property. Sharon Hicks, City Attorney, stated property owners in the area who wished to speak at the public hearing had been notified of the request to table the item.

Councilman Carrillo made a motion to table the Ordinance to amend PDD-45 property located on Frenchman's Creek Road to allow storage buildings as recommended by the staff. Councilman Brown seconded the motion and the motion carried.

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

NAYS: None.

4.3 Richard Gertson, Director of Community Development, briefed the Council on an Oral Resolution acknowledging HUD Required Disclosure of Conflict of Interest for Abilene Child Central Education Support Services (ACCESS). Mr. Gertson stated on October 26, 2000, the City Council approved a CDBG funding agreement with ACCESS in the amount of $25,000. This agreement was pursuant to adoption of the FY00-01 One Year Action Plan with funds being used for capital renovation and modification of a facility in the Sears Neighborhood for use as an employment training and educational center providing low income individuals with some essential job development skills. Mr. Gertson also stated at the time of approval, staff disclosed a conflict of interest existed because the Executive Director of ACCESS, Mr. Joel Loya, is also the owner of the building to be improved with CDBG funds. Approval of the agreement was made subject to HUD granting an exception to this conflict of interest. HUD has informed staff that the disclosure made last October was insufficient because it was included within the Consent Agenda (making it difficult for persons in the audience to address the issue) and because the minutes of the meeting do not contain the following facts:

1. The City is awarding $25,000 of its CDBG funds to ACCESS to rehabilitate a building owned by the ACCESS Executive Director, Mr. Loya;
2. HUD has determined the same to be a conflict of interest under its CDBG regulations found at 24 CFR §570.611(b) and (c); and
3. The City is publicly disclosing such conflict in connection with a request the City has made to HUD to grant an exception to said conflict of interest under 24 CFR §570.611(d) of HUD's regulations.

Mr. Gertson further stated that all of the facts were presented last October in a memorandum supporting the request for approval of the funding agreement, and the sole purpose of this agenda item is to make this information a matter of record in the minutes and to provide a forum through a public hearing for any interested party to address the conflict of interest. Staff has discussed this procedure with the HUD General Counsel's office and they are prepared to make a decision on the exception within 24 hours of receipt of the minutes of this meeting. In compliance with the directive from HUD, staff recommends following the public hearing the City Council approve the oral resolution which acknowledges the City has adequately had public disclosure of the conflict.

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

• Joel Loya, 2102 Ambler, stated this building is rent free, and that $60-70,000 in improvements have been put into it already. The building provides open access to the community, and is building a positive city/neighborhood relationship.

There being no one else present and desiring to be heard, Mayor Barr closed the public hearing, and commended Mr. Loya for his work.

Councilman Carrillo thanked Mr. Loya and commended the program, stating results have already been seen.

Councilwoman Alexander made a motion to approve by Oral Resolution acknowledgment of the HUD Required Disclosure of Conflict of Interest for Abilene Child Central Education Support Services (ACCESS). Councilman Archibald seconded the motion and the motion carried.

AYES: Councilmen Archibald, Carrillo, 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.

Councilman Brown left the meeting during executive session. The Council reconvened from executive session and reported no action taken.

There being no further business, the meeting was adjourned at 11:00 a.m.

Debbie Hurley, Acting City Secretary

Grady Barr, Mayor