January 10, 2002, 8:30 A.M.
CITY COUNCIL OF THE CITY OF
ABILENE, TEXAS
CITY COUNCIL CHAMBERS OF CITY
HALL
The
City Council of the City of Abilene, Texas, met in Regular Session on January 10, 2002, 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,
Anthony Williams, Rob Beckham, 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 Jimmy McNeil was absent.
Councilman Kris Southward gave the invocation.
Pledge of Allegiance was led by
Amanda Cantu, fifth-grader at Fannin Elementary School. Also in attendance were Amanda’s
grandparents, Mr. & Mrs. Silva.
City
Secretary Jo Moore assisted Mayor Barr in presenting the following Employee
Service Awards:
35
Years James W. Stabler Supervisor III
Water
Utilities
30
Years Roy L. Chapman Fire Lieutenant
Fire
25
Years Suellen Wiggins Public Health Nurse I
Health
City Manager Roy McDaniel introduced Lt. Mark Whitton, Emergency Management Coordinator. Lt. Whitton introduced Judy Potter, part-time temporary secretary, and distributed handouts to the Council. Lt. Whitton then gave an overview of the division’s history, participation, and responsibilities; and informed Council that his office has applied for and is expecting a disaster preparedness grant in the amount of $88,000.
No Council action was required.
A correction to page 6 changing all references to
C. L. Hickam to Mrs. C. L. Hickam in
the December 13, 2001 Council minutes was submitted; and there being no further
corrections, additions, or deletions to the December 13 and December 20, 2001
Regular City Council Minutes, Councilman Archibald moved to approve the minutes
as printed. Councilman Southward seconded the motion and the motion carried.
AYES: Councilmen Archibald, Southward, Williams,
Beckham, Councilwoman Alexander, and Mayor Barr.
NAYS: None.
Councilwoman
Alexander moved to approve consent agenda
items 3.1 through 3.6 and first reading of items 3.7 through 3.12. Councilman Williams
seconded the motion and the motion carried.
AYES: Councilmen Archibald (abstaining on item 3.10 only), Southward, Williams, Beckham, Councilwoman Alexander, and Mayor Barr.
NAYS: None.
ABSTAIN: Councilman Archibald on item 3.10
only, due to his affiliation with Hendrick Medical Center.
Resolutions:
3.1 Oral Resolution authorizing the City Manager to execute a Professional Services Contract with Zane Travis, M.D., and designating Dr. Travis Medical Authority for the Abilene-Taylor County Public Health District.
3.2 Oral Resolution approving Interlocal Agreement with the Betty Hardwick Center to add Stephens County to the MH/MR service area.
3.3 Oral Resolution approving the Development Corporation of Abilene, Inc. report of activities for the fiscal year ended September 30, 2001.
3.4 Resolution providing for Waiver of Application for Juvenile Accountability Incentive Block Grant Funds from the Criminal Justice Division of the Office of the Governor of the State of Texas.
The Resolution is numbered 1-2002 and is captioned as follows:
A RESOLUTION PROVIDING FOR WAIVER OF APPLICATION FOR GRANT FUNDS FROM THE CRIMINAL JUSTICE DIVISION OF THE OFFICE OF THE GOVERNOR OF THE STATE OF TEXAS.
Bid Awards:
3.5 Miscellaneous street improvements – Concrete Valley Gutters; ADA Curb Ramps, Bid #CB-2029. The bid was awarded to Bontke Bros., Abilene, Texas, in the amount of $132,306.22 as recommended by staff.
3.6 O. H. Ivie electrical substations and transmission line construction, Bids #CB-2018 & CB-2019. The Council authorized the City Manager, by oral resolution, to execute construction contracts with Fairbairn Electric, Inc., Corpus Christi, TX in the amount of $545,490.00 and Smithwick Construction, Inc. Abilene, TX in the amount of $963,332.80 as the most advantageous bids to the City, as recommended by staff.
Ordinances:
3.7 SNC-00102 – Street name change for a portion of University Boulevard located between Old Anson Road and Forrest Avenue to Little League Road, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ABILENE, TEXAS, FOR A STREET NAME CHANGE OF UNIVERSITY BOULEVARD TO LITTLE LEAGUE ROAD, AS DESCRIBED BELOW AND CALLING A PUBLIC HEARING.
3.8 SNC-00202 – Street name change for a portion of Forrest Avenue located between University Boulevard and Vogel Avenue to Ambrocio Flores Jr. Road, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ABILENE, TEXAS, FOR A STREET NAME CHANGE OF FORREST AVENUE TO AMBROCIO FLORES JR. ROAD, AS DESCRIBED BELOW AND CALLING A PUBLIC HEARING.
3.9 TC-00302 – Thoroughfare abandonment of the north-south portion of an alley located between Butternut & Poplar and South 17th & Westway, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF PUBLIC RIGHT OF WAY; PROVIDING FOR THE TERMS AND CONDITIONS OF SUCH ABANDONMENT, AND CALLING A PUBLIC HEARING.
3.10 TC-00402 – Thoroughfare abandonment of a 500’ long east-west alley located east of Hickory, north of North 18th Street, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF PUBLIC RIGHT OF WAY; PROVIDING FOR THE TERMS AND CONDITIONS OF SUCH ABANDONMENT, AND CALLING A PUBLIC HEARING.
3.11 TC-00502 – Thoroughfare abandonment of Short Street, being the east-west street connecting both legs of Airport Boulevard along the north boundary of the Airport parking lot located at the Abilene Regional Airport, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF PUBLIC RIGHT OF WAY; PROVIDING FOR THE TERMS AND CONDITIONS OF SUCH ABANDONMENT, AND CALLING A PUBLIC HEARING.
3.12 Z-00602 – Rezone from RS-8 (Residential Single Family) to LC (Limited Commercial) zoning district property located at 3505 Buffalo Gap Road, and set a public hearing for January 24, 2002 at 8:30 a.m.
AN ORDINANCE AMENDING CHAPTER 23, “PLANNING AND COMMUNITY DEVELOPMENT,” SUBPART E, “ZONING,” OF THE ABILENE MUNICIPAL CODE, BY CHANGING THE ZONING DISTRICT BOUNDARIES AFFECTING CERTAIN PROPERTIES, AS DESCRIBED BELOW, DECLARING A PENALTY, AND CALLING A PUBLIC HEARING.
REGULAR AGENDA
Ordinances:
4.1 Sharon Hicks, City Attorney, briefed the
Council on an Ordinance concerning the TXU (Lone Star Gas) gas rate
increase. Ms. Hicks stated that on June
28, 2001, TXU Gas filed a Statement of Intent of TXU Gas Distribution to change
the rates charged for natural gas service in Abilene. The last rate increase
occurred in August 1999. At that time, TXU had asked for a 9.06% increase, and
the council approved an increase of 4.9%, approximately 55% of the initial
request. Ms. Hicks further stated TXU’s request this time was for a West Region
Distribution System increase of $6.64 million, and that this is the first time
Abilene has dealt with a regional distribution system analysis with TXU
attempting to equalize rates in the region.
There are 77 municipalities in this region. At the July 12, 2001 meeting,
the Council passed on first reading the rate increase and then by resolution,
suspended the rates for an initial 90 days to allow city officials and
consultants to review the filing. A
steering committee was formed and joined by several cities in the region with
Abilene agreeing to serve as contact city.
The attorneys and consultants hired by the cities have worked with TXU
and have reached a settlement proposal of approximately 70% of TXU’s request or
$4.645 million. For Abilene residential customers, that would have increased
their monthly bills from $41.40 to $44.74; however, the attorneys and
consultants were able to negotiate a phase-in settlement of a maximum 7.5% rate
the first year so the first year increase would be a total of $43.34. The average monthly impact will be $1.94 the
first year then increase $3.34 (total of $44.74) the second year for all
customers who consume 5 Mcf per month.
If the Council denies the request, TXU would appeal the denial to the
Texas Railroad Commission, (RRC) the state’s regulator authority for gas
issues. The RRC is comprised of members
who have historically granted gas companies more recovery than the 70% we have
been able to negotiate. In speaking
with our attorney Geoffrey Gay, he believes that the RRC would likely award 80%
or more of TXU’s total rate request, if it went to appeal. Additionally, we would not have received the
7.5% residential phase-in that was negotiated.
This does not even begin to address the expense that an appeal would
cost the city, which the gas company would seek to avoid paying as being
unreasonable expenses. Of importance is
also the leadership role the City of Abilene plays in this regional case. Many of the cities look to us for guidance
and have relied on our opinion that the settlement proposal was reasonable in
light of historical RRC data. Ms. Hicks
concluded by stating it is staff’s recommendation based on the review and
advice of the City’s consultants that Council approve this compromise request.
Council,
City Staff, and TXU representative discussion included; the old rate being
reflected on the January ’02 bills, the new rate being calculated differently
than previously and the fact that specific costs will now be shown separately.
Mayor Barr opened a
public hearing on the item, and the following individuals spoke in response to
the request:
· Steve Alexander, 3149 S. 16th, stated in his opinion, the Council should not for any reason allow rates to be increased. Mr. Alexander referenced an ARN article concerning the low wages in Abilene, and utilities being higher in Abilene than other cities in Texas. Noting increases in refuse charges and water bills due to the construction of the pipeline to O. H. Ivie Lake, Mr. Alexander recommended the Council develop a task force to go to the Railroad Commission to oppose the increase or put the issue to a vote of the citizens.
Council and staff discussion included: an explanation of the appeals process if Council votes against the request, Council denying the request or approving a different percentage, appeal costs being passed through the company if the increase is determined reasonable, appeal costs being $100,000 or more, the City’s consultants having reviewed and negotiated for an amount fair and reasonable to the citizens but also one TXU can live with; equal distribution of charges – west Texas population versus high population cities, the 77 municipalities in the region being under the same rates as Abilene, if approved, and that some decision is needed from Council today.
Mayor Barr stated the proposed increase Council is considering is approximately 70% of TXU’s request. Mayor Barr further stated consultants were hired and worked with the City’s Legal department in negotiating with TXU the settlement proposal, and that he is not personally willing to risk more attorney fees & possibly a higher increase. Mayor Barr stated he doesn’t want a rate increase, but feels this is reasonable.
Councilman Archibald noted, unbeknownst to the citizens, negotiating & compromising has been going on for the past 6 months and if that were not the case, the higher rates would already have been in place.
Mr. McDaniel added that last July the original requested rate increase would have gone into effect if negotiating hadn’t been taking place.
· Steve Livingston, Mayor of Clyde (and Abilene police officer), stated his appreciation of Ms. Hicks, noting the City of Clyde has asked for her assistance several times. Mr. Livingston further stated Clyde approved the rate because they didn’t feel they had the funds to go to the Railroad commission to fight an appeal.
There being no one else present and desiring to be heard, Mayor Barr closed the public hearing.
Councilwoman
Alexander moved to approve the
Ordinance concerning the TXU (Lone Star Gas) gas rate increase, as recommended by staff. Councilman Beckham
seconded the motion and the motion carried.
AYES: Councilmen Archibald,
Southward, Williams, Beckham, Councilwoman Alexander, and Mayor Barr.
NAYS: None.
The
Ordinance is numbered 1-2002
and is captioned as follows:
AN ORDINANCE OF THE CITY OF ABILENE,
TEXAS, FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT TXU GAS
DISTRIBUTION’S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING
JUST AND REASONABLE RATES; ADOPTING GENERAL SERVICE RATES INCLUDING RATE
ADJUSTMENT PROVISIONS AND MISCELLANEOUS SERVICE CHARGES TO BE CHARGED FOR SALES
AND TRANSPORTATION OF NATURAL GAS TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL
CUSTOMERS; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PRESERVING REGULATORY
RIGHTS OF THE CITY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES, PROVIDING
FOR AN EFFECTIVE DATE
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 Southward left the meeting prior to
Council reconvening from executive session.
The Council reconvened from executive session and reported no action taken.
5.1 Councilman
Williams moved to approve Mayor
Barr’s appointment of Gerald Galbraith to the Graduate Advisory Board. Councilwoman
Alexander seconded the motion and the
motion carried.
AYES: Councilmen Archibald, Williams, Beckham, Councilwoman Alexander, and Mayor Barr.
NAYS:
None.
There
being no further business, Mayor Barr adjourned the meeting at 12:03 p.m.
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