The City Council of the City of Abilene, Texas, met in Regular Session on April 26, 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, City Attorney Sharon Hicks, City Secretary Jo Moore, and various members of the City staff. Assistant City Manager Michael Morrison was absent.

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

Councilman Norm Archibald led the Council and audience in the Pledge of Allegiance.

Mayor Barr presented a Proclamation for May as "Older Americans and Elder Abuse Prevention Month".

Mayor Barr asked Mr. McDaniel to introduce the Technical Services division presentation. Mr. McDaniel introduced Gary Hudson, technical services manager, who explained the surveying process, including boundary location, plat, and the Geographic Information System (GIS). Mr. McDaniel explained the GIS joint venture with Taylor County, Central Appraisal District, 911, and AISD, stating more information is being added (i.e., Police data); and noted only about 20% of the GIS potential that's there is realized to date. Councilman Carrillo requested a north arrow be placed on zoning maps that are submitted in the Council agenda packet. Mayor Barr commended staff and Mr. McDaniel on the division reports that have been presented.

No Council action was required.

There being no corrections, additions, or deletions to the April 12, 2001 Council 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.

Mayor Barr noted that at 11:15 a.m., it would be necessary for the Council to move to agenda item 4.10 for the report on the bids for the General Obligation Bond Sale in the amount of $3,105,000 and the Combination Tax and Revenue Certificates of Obligation Sale in the amount of $2,000,000.

Councilwoman Alexander moved to approve consent agenda items 3.1 through 3.5, as recommended by the staff. Councilman Archibald seconded the motion and the motion carried.

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

NAYS: None.

1. Oral Resolution accepting the assignment of a real estate lien, transferred on 12/5/2000 from Abilene Improvement Company to the City of Abilene, for the business located at 1292 N. 1^st Street.
2. Oral Resolution awarding weed mowing contract to Texas Industries for the Blind and Handicapped (TIBH) and its subcontractor Abilene Goodwill Industries.
3. Resolution designating names for access ways for 911 and other addressing purposes in the Dyess AFB housing privatization project and the Hendrick Health System complex.

The Resolution is numbered 16-2001 and is captioned as follows:

A RESOLUTION DESIGNATING NAMES OF INTERNAL ACCESS WAYS FOR 911 AND OTHER ADDRESSING PURPOSES IN THE DYESS AFB HOUSING PRIVATIZATION PROJECT AND THE HENDRICK HEALTH SYSTEM COMPLEX.

4. Oral Resolution authorizing the City Manager to execute a letter of agreement with the engineering firm of Malcolm Pirnie, Inc. for implementation of the 2001 Energy Management Plan for Tasks 3 through 6, with the current authority to begin Tasks 3 and 5 and abate Tasks 4 and 6 until requested in writing to begin performance. Tasks 3 and 5 shall not exceed $54,000 and Tasks 4 and 6, if performed, shall not exceed $50,000.

3.5 Central Business District concrete repair along North 6^th Street from Hickory to Walnut Streets, Bid #CB-1037. The bid was awarded to Harris Acoustics of Abilene, Texas, for base bid plus Alternate 1 & 2 for a total bid of $353,718.40 as recommended by staff.

4.1 Richard Gertson, Director of Community Development, briefed the Council on a Resolution approving an amendment to the 2000/2001 Action Plan for use of CDBG funds. Mr. Gertson stated Council has before them a modified Resolution that has the reference to childcare services removed. Mr. Gertson further stated on July 27, 2000, the Community Development Department presented its 2000/2001 One-Year Action Plan for use of Community Development Block Grant (CDBG) funds to the City Council for approval and although the plan was approved as recommended, staff has reconsidered a request made from the United Way of Abilene. Mr. Gertson stated Community Development staff recommends Council reallocate CDBG funds to fund the project previously known as Resource Access and Mobilization (RAM) Project, a centralized information source which will ensure the ease of access to information, services, and resources. Mr. Gertson asked Council to note the change in the name of the project to InfoAbl.org. Mr. Gertson further stated the project meets the national objective of providing benefit to low and low-to-moderate income citizens of Abilene, and funding in the amount of $15,000 will come from CDBG funds remaining from prior year entitlement funds. Dixie Bassett, United Way representative, was present and explained to Council that the project is a new one.

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 Archibald moved to approve the modified Resolution approving an amendment to the 2000/2001 Action Plan for use of CDBG funds, as recommended 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.

The Resolution is numbered 17-2001 and is captioned as follows:

4.2 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on Z-00901 - Ordinance to rezone from HI (Heavy Industrial) to GC (General Commercial) zoning district property located at Jeanette and S. 26^th Streets. The Planning and 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 Southward made a motion to approve the Ordinance to rezone from Heavy Industrial to General Commercial zoning district property located at Jeanette and S. 26^th Streets as recommended by the Planning & Zoning Commission and staff. Councilman Carrillo seconded the motion and the motion carried.

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

NAYS: None.

ABSTAIN: Mayor Barr, due to his serving as trustee for the Hendrick Home for Children.

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

4.3 Jeff Armstrong, Assistant Director of Community Development, briefed the Council on Z-01201 - Ordinance to rezone from RS-6 (Residential Single Family) to O (Office) zoning district property located in the 2800 block of South 27^th Street. The Planning & Zoning Commission recommends approval; staff recommends denial.

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

• Jennie Gerard, Gerard Real Estate, 5253 Wyndham Court and agent for the proponent, presented statistics showing the area not to be conducive to residential, and noted the two oppositions came from neighbors with property furthest from the property in question. Ms. Gerard concluded that her proposal is the highest and best use of the property.
• Genevieve Howell, 2824 Buffalo Gap Road, ReMax Realtors, gave a history of the negative experiences of the previous potential buyers of the property for residential purposes, and stated in her opinion office rezoning would be best.

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

Councilman Beckham made a motion to approve the Ordinance to rezone from Residential Single Family to Office zoning district lots 1, 2, and 14, excluding lot 3 of the property located in the 2800 block of South 27^th Street. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

ABSTAIN: Mayor Barr, due to Gerard Real Estate managing property he owns.

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

4.4 Rick Crider, Airport Director, briefed the Council on a Resolution adopting the Airport Master Plan update for the Abilene Regional Airport. Mr. Crider stated a comprehensive airport master plan for Abilene Regional Airport was last completed in 1984, and because of the growing impact of the airport on Abilene and the surrounding population, an Airport Master Plan update was initiated in 1999 through a contract with Delta Consultants, Inc. Mr. Crider recognized Airport Board members in attendance, then introduced Ed Beale, founder of Delta Consultants, and Frank Kulka, projects manager for Delta Airport Consultants. Mr. Beale stated aviation is a dynamic and competitive business, then gave a brief history of the study and the forecast of aviation needs. Mr. Kulka presented the Airport Master Plan update and Development Plan, including the planning issues, enplanement projections, potential enplanements, sources/ uses of funding and financial operations.

Council & staff discussed the importance of working with other communities and their airports to improve efficiency in order to benefit all. Council stated appreciation to Delta Consultants for the presentation and staff & the Airport Development Board for their work toward improving the Airport.

Councilman Archibald made a motion to approve the Resolution adopting the Airport Master Plan update for the Abilene Regional Airport, as recommended. Councilman Southward 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 18-2001 and is captioned as follows:

4.5 Rick Crider, Airport Director, briefed the Council on the Fly Abilene presentation, stating this is the co-effort of the City of Abilene, Chamber of Commerce, Industrial Foundation, and the Airport Development Board. Mr. Crider then introduced H. C. Zachry of Zachry and Associates. Mr. Zachry gave background information on the item and stated with the addition of a second carrier, Continental Express, joining American Eagle in March 2000, the cost of flying from Abilene has become much more competitive. Mr. Zachry then recognized his employee Steve Krazer, and introduced the coordinator of the campaign, Tim Simmonds. Mr. Simmonds stated the focus of the Fly Abilene Campaign is to promote flying from Abilene Regional Airport instead of driving to the Dallas-Ft. Worth Metroplex or west to the Midland airport. The three areas the promotion will target are travel agents, corporations whose employees fly frequently, and the general public. Mr. Simmonds briefed the Council on campaign activities, noting Leadership Abilene will be involved in the campaign and that the effectiveness of the billboard campaign will be evaluated in six months.

Council commended all involved and stated a campaign has been needed in which benefits will be realized by the community and airlines. No Council action was required.

4.6 Linda Simpson, Assistant Director of Water Utilities, briefed the Council on an Ordinance amending the Drought & Emergency Contingency Plan (DECP), stating after first reading of the ordinance with revisions as discussed by Council on April 12, 2001, the Citizen's Review Committee did meet and Jeff Luther, chair of the committee, is present to provide additional input as requested by Council. Mr. Luther thanked the Council for forming the Citizens Committee and hearing their input. Mr. Luther stated the committee feels the sooner Abilene gets into a water conservation mode the better.

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.

Council and staff discussion included: recommended Council changes to the DECP which went to the Citizens Committee from the April 12 Council meeting, including adding two (2) more evening hours for citizens to water on their designated days, administrative fees versus misdemeanor fines, the use of soaker hoses and other drip irrigation systems, the need to send out the message that the drought is not over, lowering the trigger point to implement Stage 1 with consideration also being given to the percentage of storage capacity in Lake Hubbard, and the Mayor retaining the discretion with recommendations from the City Manager and Water Utilities Director to decide if and when the first phase of mandatory conservation would be imposed. Following further discussion of clarifications, corrections, and recommended changes, City Attorney Sharon Hicks reviewed for Council all recommended changes and/or corrections that upon Council approval will be made to the DECP.

Councilman Southward made a motion to implement Stage 1 of the DECP when Lake Ft. Phantom Hill's water level is 10' below the spillway and Hubbard Creek Reservoir's storage is at 60% or less capacity. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

Councilwoman Alexander made a motion to approve the Ordinance amending the Drought & Emergency Contingency Plan, with recommended changes and corrections as reviewed by City Attorney Sharon Hicks. 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 8-2001 and is captioned as follows:

10. Award of Bids:

At approximately 11:15 a.m., the Council moved to item 4.10, Award of Bids to Consider Ordinances authorizing the issuance of City of Abilene, Texas: 1) General Obligation Bonds, Series 2001, in the amount of $3,105,000; and 2) Combination Tax and Revenue Certificates of Obligation, Series 2001, in the amount of $2,000,000.

David Wright, Director of Finance, assisted by Joe Smith of First Southwest Company, briefed the Council on Ordinances authorizing issuance of City of Abilene, Texas General Obligation Bonds, Series 2001, in the amount of $3,105,000 for street & traffic/transportation improvements; and Combination Tax and Revenue Certificates of Obligation, Series 2001, in the amount of $2,000,000 for minor capital and maintenance improvements. Mindy Whisenhunt, Assistant Director of Finance, distributed to Council the bid results.

Councilman Southward moved to approve the bid from Prudential Securities, Inc., with a true interest cost of 5.141401 percent; and to approve the Ordinance authorizing issuance of City of Abilene, Texas, General Obligation Bonds, Series 2001, in the amount of $3,105,000 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.

The Ordinance is numbered 9-2001 and is captioned as follows:

Councilman Brown moved to approve the bid from UBS PaineWebber Inc., with a true interest cost of 4.945245 percent; and to approve the Ordinance authorizing issuance of City of Abilene, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2001, in the amount of $2,000,000 as recommended by staff. Councilman Carrillo 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 10-2001 and is captioned as follows:

4.7 Councilman Carrillo made a motion to remove from the table discussion/possible action by Oral Resolution concerning the O. H. Ivie Pipeline project. Councilman Southward seconded the motion and the motion carried.

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

NAYS: None.

Roy McDaniel, City Manager, briefed the Council on the O. H. Ivie Pipeline project, stating at the April 12 Council meeting Council delayed the decision to begin the Ivie project for two weeks pending additional information from USDA Rural Development. Mr. McDaniel further stated Council has recently received a copy of a letter from RD, and explained the letter agrees to allow the bid process and the start of construction while the federal agency continues to process Abilene's aid application.

Ken Martin, consulting engineer with Jacob & Martin, Inc., stated the letter from RD is a positive in that it keeps Abilene eligible, although the letter doesn't guarantee funding.

Council and staff discussion included: whether Mr. Martin would be able to meet the August 22, 2001 deadline on submission of the environmental report, other agencies involved in this process and requirements to be met besides the environmental report, the need to study the best financing options and the need for flexibility to allow for the RD funding, recognizing the tremendous support of both Congressman Stenholm and his office, and Senator Kay Bailey Hutchison's congressional staff throughout this process.

Councilman Archibald made a motion to instruct staff to advertise for bids and secure financing to accommodate RD funding concerning the O. H. Ivie Pipeline project. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

4.8 City Manager Roy McDaniel briefed the Council on a Resolution directing publication of Notice of Intention to Issue Combination Tax and Waterworks and Sewer System Revenue Certificates of Obligation, Series 2001, for the O. H. Ivie Project. With the commencement of construction of the O. H. Ivie Project, the City had planned on financing the $61,000,000 cost by the issuance and sale of Combination Tax and Waterworks and Sewer System Revenue Certificates of Obligation. The $61,000,000 would have paid the City's contractual obligations for construction of a water transmission line, related water treatment facilities, and electric transmission line for delivery and treatment of water from the O. H. Ivie Reservoir.

Mr. McDaniel asked Joe Smith, investment consultant with 1^st Southwest Company of Abilene; to explain now that the City has received the letter from RD where we are and what is involved in getting financing.

Mr. Smith stated the letter from RD changes things, and that it is too early to sort out the best financing package to bid to financial institutions. Mr. Smith further stated Pete Tart, bond counsel, will need to meet with Mr. McDaniel and go over the financing options to determine the best one that will satisfy bond counsel, the Attorney General, and the City Council.

Discussion among staff and Council included: increasing water rates to pay off debt service, the preference for one rate increase, funds needed to award the contract, the pros and cons to Options 1 and 2, not increasing water rates in May due to unknowns; cost to build pipeline, interest cost to finance debt, whether approval of the RD grant/loan will be given and what the water revenue for the peak summer usage months will be.

Councilman Archibald made a motion to table the Resolution directing the publication of Notice of Intention to Issue Combination Tax and Waterworks and Sewer System Revenue Certificates of Obligation Series 2001, for the O. H. Ivie Project until the May 10 Council meeting, allowing staff time to study the financing options. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: None.

4.9 Linda Simpson, Assistant Director of Water Utilities, briefed the Council on an Oral Resolution concerning a water rate increase for funding of O. H. Ivie Pipeline project. Ms. Simpson stated on December 21, 2000, the Abilene City Council approved by oral resolution a water rate increase which would add $.88/1,000 gallons of water used in all customer categories to fund debt to be incurred for the construction of facilities for delivery and treatment of water from the O. H. Ivie Reservoir. Ms. Simpson explained that the rate increase was scheduled for March 1, 2001, however, construction of the Ivie Project was delayed to allow Council and staff to explore other funding options for the project and as a result, on January 11, 2001, the City Council decided to postpone implementation of the rate increase until May 1, 2001. Ms. Simpson concluded by stating at this time Council should determine the need for implementing the rate increase as scheduled on May 1, 2001 or postpone the rate increase implementation.

Council and staff discussion included: rate increase to be on water consumed after May 1; Water Supply Corp. Board of Directors requesting additional time to notify their customers of increase although they have previously received information on the scheduled increase; grants being based on the average income of rural community households and the cost of similar systems with the current water rate being charged also being a consideration; and Council being prepared to lower the rate but not at the risk of jeopardizing the grant.

Councilman Southward made a motion to implement by Oral Resolution the water rate increase of $.88/1,000 gallons effective May 1, 2001 for water used in all customer categories to fund the O. H. Ivie project. Councilwoman Alexander seconded the motion and the motion carried.

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

NAYS: Councilman Beckham.

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 meeting was adjourned at 1:15 p.m.

Jo Moore, City Secretary

Grady Barr, Mayor