Last updated: July 12, 2011 at 22:47

City Council Workshop

16:00 on July 26, 2011

City Hall Main Conference Room, Old Ave. D School

Note: these are raw notes and may be updated later with supplemental material.

Scroll down for notes of the City Council Regular Meeting.

Workman absent.


  1. The Empployee Insurance Committee recommends that Scott and White Health Plan be the city's new health insurance carriers. Both the city and employees will see about 14% premium increase beginning in September.
  2. The budget presentation tonight promises to be long and detailed.

Committee Reports This section provides standing committees an opportunity to provide reports on work relating to the mission and charge of the respective committee. Community Services Committee meeting held July 26, 2011 at 8:30 a.m.
Agenda Item Description Discussion My Notes
DS-1 Discuss City Council Agenda Items and Land Use Cases Mr McIlwain reported. PH-1 will be postponed. PH-3, a liquor store zoning, was recommended for disapproval. PH-4 is another package store, recommended for approval. No new information on PH-2.  
DS-2 Discuss Committee Reports Mr Rivera reported on Community Services committee.  
DS-3 Discuss the Bids for the Employee Health Insurance and the Recommendation from the Employee Insurance Committee Ms Maynor reported. RFP 11-24 process began in February. Bids were opened May 18. Proposals were summarized for presentation to the Insurance Committee on June 20. Proposals received from Aetna. Blue Cross/Blue Shield, Scott and White, Texas Municipal League (fully-funded proposals); BCBS, Health First Meritain, Scott & White (self-funded plans)

Only one of the self-funded plans had a stop-loss provision (the maximum claims that the city would pay before the insurance kicks in). That's because the city had several very high claims at the end of last year, at least one of which was not yet closed. The self-funded plans were therefore set aside.

Initial fully-funded plans came in as 27.8 to 46.4% increase in premium. To renew the SWHP, the increase was 35.8%. The plans were analyzed in terms of cost to the city, cost to employees, and coverage.

Committee's recommendation is Blue Cross/Blue Shield. After negotiations and changes in plan design, city's cost increases 13.7%. Employee premium increases vary: at least 14%. Current budget plan for 2010-11 is for a 10% increase, which with other adjustments should cover it. It includes access nation-wide.

Three plans are recommended, Base Plan, Mid Plan and High Plan. ranging from $1,040.77 to $1,516.26 per month for employee + family. The open enrollment period will be in August.

(The city provides the plan through an Employeee Benefit Trust, which allows the city to avoid the state tax on premiums. The city council members are the trustees. This also applies to employee life insurance.)

Wells: will open cases be carried over? Maynor: no, but we negotiate "no loss, no gain" so far as deductibles. Wells: our group seems to warrant a high premium. Staff: a healthy person, non-smoker, no previous conditions could probably get better insurance in a different group. Wells: my question is, did you consider not having group insurance? Just giving people 500 more dollars and having them buy their own? Maynor: No. Rivera: the reason we have group plan is to average out the risk.

Ms Maynor made a good presentation. No one asked why we rebid every year or if a multi-year plan, if it were available, would be cheaper.
DS-4 Discuss- FY 2011-12 Proposed Annual Budget and Plan of Municipal Services Mr Morrison reported. They will present the budget proposal in tonight's presentation. There was a lot of participation by city employees (33%). After the budget is approved, we need to talk about the 3- and 5-year plans.

The budget has to be adopted by September 15.

Mayor: I think it's good that you are starting early with the council ... so we can see what direction you want to go.

Mayor: Council, if you have questions, please get them to the city manager as they come up so they have plenty of time to get the answers.

It sounds like tonight's presentation will be very long and very detailed. It took Morrison 10 minutes to tell us what he is going to tell us.
CR-1 Update/Briefing - Awarding a Contract for Food and Beverage Service at Stonetree Golf Club    

City Council Meeting

18:00 on July 26, 2011

Council Chambers, City Hall (Old Ave. D School)

Scroll up for notes of the City Council Workshop.


  1. There is a lot of interest on the council about the number of package liquor stores and the process for approving them. Some warm words were spoken. One zoning change was disapproved.
  2. The proposed 2011-12 budget is 'balanced': $68M revenue, $68.5M expenses.
  3. Budget books are avaailable for public viewing at the library begining July 27. Public hearings will be held August 9 and August 23.

The meeting of the Employee Insurance Trust was held immediately following the regular council meeting.

July 26, 2011 Page 3 of 4 Ordinances / Resolutions Comments should be limited to three minutes.
Agenda Item Description Discussion My Notes
PR-1 Presentation - Texas A&M University - Central Texas Golf Classic Check Presentation This is the second year the city was involved in a scholarship donation from funds raised at a golf tournmeent. This year the contribution is $20,000. The golf tournement was July 16. The contribution was $25,000 last year. It's not clear to me what the city's involvement was. Apparantly the city staff helped organize the event and collect donations?
PR-2 Presentation - Distinguished Budget Presentation Award to the City of Killeen From the GFAO of a national orgainziation (American and Canadian Government Finance Officers Association, maybe?). This is like the 20th year in a row the Finance Department has received this award. The budget is really well done. You can find previous years' budget presentations on the city web site.
Consent Agenda
CA-1 Consider minutes of Regular City Council Meeting of July 12, 2011. CA-1 and 2 were approved on Mr Cosper's motion.  
CA-2 Consider a memorandum/resolution awarding Bid No. 11-30 Slurry Seal Services to Ballou Pavement Solutions, Inc.    
CA-3 Consider a memorandum/resolution for a recommendation to the Employee Benefits Trust to Award RFP No. 11-25 Group Employee Life Insurance Benefits. Ms Maynor briefly explained CA-3, CA-4 and CA-5. Her presentation detailed the benefits provided by the city and repeated, in summary, the information presented earlier at the workshop. All three items were approved 7-0. See above for notes of the workshop presentation.
CA-4 Consider a memorandum/resolution awarding RFP No. 11-26 Third Party Administrator for cafeteria plan benefit. This allows employees to pay some premiums and out-of-pocket health expenses in pre-tax dollars. Administration will be provided by First Financial at no cost to the city or employee.  
CA-5 Consider a memorandum/resolution for a recommendation to the Employee Benefits Trust to Award Bid No. 11-24 for Employee Health Insurance Benefits.    
Public Hearings / Ordinances
PH-1 HOLD a public hearing and consider an ordinance as requested by KGC Properties, LLC (Case #Z11-32) to rezone approximately 12.619 acres, being Lot 1, Block 1, Bell Industrial Subdivision, from M-1 (Manufacturing District) to B-C-1 (General Business and Alcohol Sales District) for on premises sale and consumption of alcohol. The property is locally known as 452 N. Roy Reynolds Drive, Killeen, Texas. Postponed  
PH-2 HOLD a public hearing and consider an ordinance as requested by Stephen Hahn (Case #Z11-33) to rezone a portion of Lot 2, Block 1, La Mer Addition from B-5 (Business District) to B-3A (Local Business and Retail Alcohol Sales District) for a package liquor store. The property is locally known as 311 E. Stan Schlueter Loop, Suites 201 and 202, Killeen, Texas. No objections were received by P&Z from four surrounding property owners, and they recommend approval. Workman: did this used to be a child care center? Staff: Yes, we made sure it was gone. Clark: what's it being used for now? Staff: not sure; it was empty about 2 weeks ago.

Public Hearing: Layne Higgenbotham spoke in behalf of the property owwner. The property is now vacant. Workman: there's a gas station there: do they sell beer? Higginbotham: I assume so. James Ryan, the lessee, spoke in favor. None spoke against.

Lower: I'm concerned about neighborhood liquor stores. They draw crime. He moved to disapprove. Seconded by Workman. Rivera: have we had residences near package stores before? Staff: Yes, but all cases stand on their own merits. Cosper: was there any opposition? Staff: No. Clark: How many liquor stores have we approved? Staff: 8 of the 10 requested. Clark: I don't see a compelling need for more liquor stores. Cole: this is really kind of isolated; it's a long way to any residence. Workman: is there a nearby child care transportation business on Old Florence Rd? Staff: Yes. Workman: and there would be a lot of kids in that area? Staff: I believe so. Mayor to Chief of Police: is there a lot of crime around liquor stores? Chief: we haven't had them long enough to build any data. Mayor: how would you decide where to put liquor stores? Chief: I think the council is doing the right thing vetting each case on its merits. Mayor: we need to make sure people know what they have to do to start a business. Cole: we've actually approved 13 liquor stores, but it's the market that determines whether another is needed. Rivera to chief of police: Do you know of liquor stores where people hand around drinking? Chief: not in my experience.

The motion to disapprove failed 3-4. Cole moved approval, seconded by Wells. AApproved 4-3.

The mayor's questions to the chief seem odd. He's not an expert on zoning, or responsible for it.
PH-3 HOLD a public hearing and consider an ordinance as requested by Marvin and Hyong Shelton (Case #Z11-34) to rezone a part of Lot F, Block 2, Fain Addition from B-3 (Local Business District) to B-3A (Local Business and Retail Alcohol Sales District) for a package liquor store. The property is locally known as 102 E. Hallmark Avenue, Killeen, Texas. (Requires ¾ majority vote for approval) P&Z got protests from 3 individuals withing 200 radius. They recommend disapproval. The property meets the minimum requirements established for B-3 zoning. Cole: does the convenience store next door sell beer?

Public hearing: son of the lessee spoke in favor. Ralph Cotze spoke against because of nearby residences and poor lighting.

Workman moved to disapprove based on 4-way stop there and opposition of neighboring property owners. Seconded by Rivera. Passed 6-1, Cole against.

PH-4 HOLD a public hearing and consider an ordinance as requested by Abbott Springs Ltd (Case #Z11-35) to rezone part of Lot 1, Block 1, Michalk-Wright Addition from B-5 (Business District) to B-3A (Local Business and Retail Alcohol Sales District) for a package liquor store. The property is locally known as 4008 E. Stan Schlueter Loop, Suite 104 and 105, Killeen, Texas. Staff: this is the 11th B3-A case before the council. Five surrounding owners were notified with no responses. P&Z recommends approval. Workman: Is there a lot of foot traffic? Where is it? Staff: near Stan Schleuter and Mesa. Workman: I think foot traffic has some bearing on public safety. Rivera: there's a Dairy Queen near by, but it a long way from houses. It's a typical, nice shopping center. Wells: Let the market decide. Clarke: There is a level of saturation; we have the responsibility to plan and zone reasonably and I reasonably believe that we're saturated.

Public hearing. Jim Wright, one of the owners of the center, agrees with Cole. Thinks he has a right to open a liquor store there. No others spoke.

Cole moved to approve, seconded by Rivera. Workman: I'm going to work for the safety of the city and children. I checked the area out. Mayor: if you want the zoing ordnance changed, there's a process for it. Passed 4-3. Lower, Clark and Workman opposed. Lower: I talked to a lot of people who were opposed to this.

The mayor spoke longer on this, but I'm not sure what his point was other than what was captured on the left.
Regular City Council Meeting Agenda
OR-1 Consider an ordinance granting an electric power franchise to Oncor Electric Delivery Company, LLC. (3rd of 3 readings) Wells moved approval, seconded by Rivera. Approved 7-0.  
OR-2 Consider an ordinance approving Arts Commission recommendations for disbursement of hotel/motel tax funds for Fiscal Year 2011-12. Dr. Ann Ferris, chair of the Arts Commision commented. The Commission recommended 13 projects. Clark: What's Educake? Ferris: a broadcast on KPLE. Wells moved approval. Passed 7-0  
OR-3 Consider a memorandum/resolution appointing Councilmembers to various ad hoc committees. Childrens museum ad-hoc committee: Cole, Cosper and Lower. Land Use and Development committee: Workman, ???, Whitis, Behard. Sign ordinance: Workman, Clark, ???, Behard. Etc. These were read off too fast for me to capture them.
OR-4 A. RECEIVE Fiscal Year 2011-12 Proposed Annual Budget and Plan of Municipal Services. B. Presentation/Briefing- City Manager’s Proposed Annual Budget and Plan of Municipal Services for FY 2011-12. C. SET the date of August 9, 2011 to hold a public hearing on fiscal year 2011-12 Annual Budget and Plan of Municipal Services and set preliminary tax rate. The budget goals, philosophy and challenges are the same as presented earlier in the year at the Saturday workshop.

Original plan was a $3.7M deficit ($68M revenue, $71M expense). From that, some things were deferred, some outsourcing was included at the golf course, some fee increases were assumed, some employee positions were consolidated and/or reclassified.

Budget proposal highlights:

  • No tax rate increase
  • Balanced revenue and expenses
  • Maintaining adequate and fair pay (but without COLA and pay plans are on hold
  • 10% increase in health insurance costs
  • 21 new full time positions. Includes 10 additional public service officers doing administrative functions at KPD. This will be done without increasing city labor costs. Some positions will be eliminated (most of them are currently not filled).
  • There will be some fleet augmentations, including one fire truck.
  • Chamber of Commerce and KADC are funded.
  • Water, sewer and solid waste rates will remain the same.
  • Increase in some user fees.
  • Killeen Arts and Activities Center (First Baptist Church) will start brining in some revenue.

After the changes the deficit is budgeted to be about $450,000, well within the normal margin of error. Revenues: $68 million, expenses $68.5 million.

The budgets will be available in the library and on the web tomorrow. I'll put a link here when it is available. It may be on the city Finance page. The council will vote on the budget on September 13.

There will be public hearings on the budget on Aug 9 and Aug 23 at the regular city council meeting.

Morrison should have let Finance do this presentation. They would have been crisper and clearer. Morrison thanked the council for their leadership in the budget process. If there was any such leadership, it must have occurred outside council meetings and workshops. See my notes on the Saturday budget workshop.
Citizens Petitions and Information
CP-1 Tykecia Jones (5702 Montrose Drive)- Homeless Population Wants funding for homeless shelter in Killeen. There's one in Cove and one in Temple. The one in Cove is full. The only facility in Killeen turns away 5 people per day, and at least one family. She thinks the plan to reconstruct downtown should include a homeless shelter. The mayor asked her to talk to Mr Morrison after the meeting.  
CP-2 Raymond Spivey (1107 Eastside Drive) – Liquor Store on Rancier and Hooten Doesn't like the liquor store on Rancier. Longbranch park is close by, and a bunch of apartments. The mayor asked him to talk to Dr Shanaa after the meeting.