Closed Caption Log, Council Meeting, 06/29/00

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>>MAYOR WATSON: WE WILL BE LED TODAY IN THE INVOCATION BY A MINISTER FROM THE SOUTH SIDE CHURCH OF CHRIST, THANK YOU FOR BEING WITH US.

>> OUR FATHER IN HEAVEN WE ARE INDEED GRATEFUL FOR THIS DAY, FOR YOUR MANY BLESSINGS, ANOTHER DAY OF LIFE AND HEALTH. WE ASK THAT YOU CONTINUE TO BLESS THIS CITY. WE KNOW THAT WE ARE DEEPLY BLESSED. WE ENJOY YOUR BLESSINGS EACH AND EVERY DAY. FATHER CONTINUE TO LOOK UPON US, FATHER, WITH LOVE AND MERCY, CONTINUE TO LOVE US, FATHER, CONTINUE TO BE WITH US. THROUGHOUT OUR DAYS, FATHER. WE ASK A SPECIAL BLESSING ALSO ON THE LEADERS OF THIS CITY, FATHER, THAT YOU GIVE THEM WISDOM TO GIVE THEM COURAGE, THAT YOU GIVE THEM ALL OF THE THINGS THAT THEY NEED, FATHER, TO LEAD US. FATHER, WE PRAY ALSO FOR THEM TO GODLY WISDOM THAT THEY MIGHT DO ALL THINGS ACCORDING TO YOUR WILL. FATHER, ALSO HELP US TO ALWAYS BE MINDFUL OF THE POOR, OF THOSE THAT HAVE A BROKEN SPIRIT, FATHER, HELP US AS LEADERS IN THIS PLACE, FATHER, THE LEADERS OF THE CHURCHES HERE IN AUSTIN AND THE LEADERS, ALSO, FATHER OF THIS -- OF THIS GREAT CITY. FATHER, WE ASK FOR YOUR CONTINUED BLESSINGS AND WE ASK THAT -- THAT YOU BE WITH US, THAT YOU BE WITH THIS COUNCIL, FATHER, ALWAYS. FORGIVE US WHEN WE FAIL TO DO THE THINGS THAT YOU WANT US TO DO. ALL THESE THINGS WE ASK IN THE NAME OF OUR LORD AND SAVIOUR, JESUS CHRIST, AMEN.

>> AMEN.

>>MAYOR WATSON: THANK YOU, AGAIN, I WILL CALL TO ORDER THE CITY COUNCILL MEETING, ON THIS THURSDAY, JUNE 29TH, 2000. WE ARE MEETING IN THE BOARD ROOM AT THE LCRA, HANCOCK BUILDING, WHICH IS LOCATED AT 3700 LAKE AUSTIN BOULEVARD. I WILL ENTERTAIN A MOTION ON TEFM NUMBER ONE TO APPROVE THE MINUTES OF THE REGULAR MEETING ON JUNE 22ND, 2000. MOTION IS MADE BY COUNCILMEMBER ALVAREZ TO APPROVE THE MINUTES, THERE IS A SECOND? SECONDED BY COUNCILMEMBER WYNN. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES WITH COUNCILMEMBER SLUSHER, THE MAYOR PRO TEM AND -- COUNCILMEMBER SLUSHER VOTES AYE, WITH THE MAYOR PRO TEM AND COUNCILMEMBER GRIFFITH OFF THE DIAS. THE NEXT ITEM WILL BE A REVIEW OF ITEMS FOR THE NEXT COUNCIL MEETING, WHICH IS NOT UNTIL AUGUST 3RD, BUT FOR AUGUST 3RD OR BEYOND. ARE THERE ANY ITEMS FROM COUNCIL THAT COUNCIL WOULD LIKE TO ANNOUNCE AT THIS POINT? I WILL MENTION A COUPLE OF THINGS. ITEM NO. 1, WOULD BE THAT I WILL BE BRINGING FORWARD AND THE MAIFRM HAS AGREED TO CO-SPONSOR WITH ME -- THE MAYOR PRO TEM HAS AGREED TO CO-SPONSOR WITH ME AN ITEM ON END USER RESPONSIBILITY RELATED TO SOLID WASTE SERVICES. THIS IS AN ITEM THAT HAS BEEN WORKING THROUGH THE SOLID WASTE SERVICES DEPARTMENT FOR THIS TIME. IN FACT OUR DEPARTMENT DIRECTOR, MR. RHODES HAS BEEN VERY INVOLVED WITH IT ON A NATIONAL LEVEL. IT HAS BEEN APPROVED APPROVED BY THE ENTIRE UNITED STATES CONFERENCE OF MAYOR WATSON, I WILL BE BRINGING THAT FORWARD PROBABLY ON AUGUST 3RD. IN ADDITION I WILL BE BRINGING FORWARD EITHER AT THE AUGUST 3RD MEETING OR SHORTLY THEREAFTER SOME PROPOSALS WITH REGARD TO POTENTIAL STATE IMPLEMENTATION PLAN ITEMS RELATED TO CLEAN AIR. MR. CITY MANAGER, DO YOU HAVE ANYTHING?

>>GARZA: NAURBL.

>>MAYOR WATSON: OKAY. THE NEXT ITEM WILL BE BRIEFINGS. FOR THOSE WATCHING AND INTERESTING IN THE WAY WE WILL PROCEED, THE WAY I INTEND TO PROCEED ON THE AGENDA IS TO AT LEAST TAKE UP THE DRAFT POLICY BUDGET BRIEFING BEFORE WE GO TO THE CONSENT AGENDA. WE MAY TAKE UP MORE THAN THAT, WE MAY ALSO TAKE UP THE CHARTER REVISION BRIEFING BEFORE WE GO TO THE CONSENT AGENDA. QUICKLY, CHANGES AND CORRECTIONS TO THE AGENDA ITEM NO. 10, THERE ARE SOME CHANGES IN THE NUMBERS. LET ME TRY TO READ THROUGH THIS. APPROVE A RESOLUTION AUTHORIZING EXECUTION OF CHANGE ORDER NUMBER 9 FOR THE CONSTRUCTION CONTRACT WITH TRIPLE H CONTRACTING, INC., BRH, INC., FOR ADDITIONAL WORK TO BE PERFORMED AS PART OF THE ULLRICH PIPELINE FROM RED BUD TRAIL TO WEST SECOND STREET, INCREASING THE CONTRACTING AMOUNT OF DELETE -- DELETE THE NUMBER 1,212,000, REPLACE WITH 1,127,951 .64 FOR A TOTAL CONTRACT NOT TO EXCEED DELETE THE 16,129, PUT 16,440,, 852. FUNDING IN THE AMOUNT OF 1.2 MILLION NUMBER, DELETE, PUT 1,127,951 .64. GO DOWN TO WHERE IT MENTIONS MBE. DELETE 23.26% MEMBER AND REPLACE IT WITH 25% MEMBER. ITEM NO. 36, DOWN TOWARD THE END OF THE ITEM, 125,000 TO DELETE 822,000 AND PUT 822,600 DOLLARS. ON ITEM NO. 40, THE FIRST PARENTHETICAL, GEMA DELETE MORTGAGE BAKED AND REPLACED WITH MORTGAGE BACKED. FOR THOSE OF YOU INVOLVED IN HIGH FINANCE, I'M SURE THAT WAS -- THAT WAS -- ITEM NO. 45, DRYFUSS IS MISSPELLED, IT IS DREYFUS, IN AN AMOUNT NOT TO EXCEED DELETE 626,287, REPLACE WITH 661,705.8. ITEM NO. 50 ON FIRST READING. ITEM NO. 51 ON FIRST READING. ITEM NO. 53, WILL BE POSTPONED INDEFINITELY. ITEM NO. 76. CURRENTLY READS APPROVE A RESOLUTION AUTHORIZING DELETE THE WORDS "A RESOLUTION AUTHORIZING," AND PUT APPROVE EXECUTION OF A CONTRACT AND ADD WITH HUNTER DEFM LAND COMMISSION AND WRECKING. WHEN YOU COME -- DEMOLITION AND WRECKING. AN AMOUNT NOT TO EXCEED $121,800. DELETE AND REPLACE WITH $117,000 PLUS 10 THOUSAND DOLLARS FOR HAZARDOUS WASTE DISPOSAL ALLOWS FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED, DELETE THE NUMBER THERE, REPLACE WITH 127,000. FUNDING ADDED WORDS IN THE AMOUNT OF 127,000 WAS INCLUDED IN THE 1999-2000 AMENDED CAPITAL BUDGET OF THE WATERSHED PROTECTION DEPARTMENT. ITEM NO. 91, IS POSTPONED INDEFINITELY. ITEM 107 IS REMOVED FROM THE AGENDA, THIS ITEM IS A DUPLICATE OF ITEMS 21 AND 22. ITEMS SET FOR A TIME CERTAIN, 1:30, GENERAL CITIZENS COMMUNICATION. 2:00, ITEMS 89 AND 90, WHICH ARE BOND SALES. AND WE WILL TAKE THOSE UP RIGHT AT 2:00, EVEN IF WE INTERRUPT SOMETHING THAT'S ALREADY IN PROGRESS IN ORDER TO ALLOW FOR THE BOND SALES. AT 3:30, ITEMS 92 AND 93, WHICH ARE BOARD OF DIRECTORS MEETING OF THE AUSTIN HOUSING AND FINANCE CORPORATION. 3:45, ITEM NO. 4, A BRIEFING ON THE TOWN LAKE CORRIDOR PLAN. 4:00 ITEMS 94 THROUGH 97, ZONING. AT 5:30, LIVE MUSIC AND PROCLAMATIONS. AT 6:00, A NUMBER OF PUBLIC HEARINGS AND ORDINANCES BASED UPON THOSE HEARINGS, ITEMS 98, 99, 100, 101, 102, AND ITEMS 21, 22, AND 23. THAT WILL TAKE US TO THE FIRST BRIEFING, WHICH WILL BE A BRIEFING ON THE DRAFT POLICY BUDGET.

>> MAYOR, COUNCILMEMBERS, IT'S MY PLEASURE TO PRESENT TO YOU THE DRAFT POLICY BUDGET FOR FISCAL YEAR 01. I WANT TO PREFACE MY COMMENTS AS A WAY OF INTRODUCTION IS TO LET YOU KNOW THAT THIS REALLY IS THE SECOND STEP YOU HAVE OUR BUDGET PROCESS, WHICH HAS YET ONE MORE STEP IN TERMS OF AN OFFICIAL DOCUMENT OR SEVERAL INDICTMENTS THAT YOU WILL RECEIVE AT THE END OF JULY OR THE FIRST PART OF AUGUST, DEPENDING ON WHAT OUR SCHEDULES WILL PERMIT. WITH YOUR FINAL ADOPTION OF THE BUDGET IN MID SEPTEMBER. THE FIRST STEP OF THIS BUDGET PROCESS BEGAN WITH A FINANCIAL FFRT WHICH YOU RECEIVED IN THE AUDIT -- FORECAST WHICH YOU RECEIVED IN THE AUDIT AND FINANCE COMMITTEE A MONTH AGO, THAT LAID OUT SOME OF THE ISSUES THAT YOU WOULD BE LOOKING AT AS PART OF OUR BUDGET PROCESS. I AM PLEASED TO PRESENT TO YOU THE DRAFT POLICY BUDGET AND WE WILL SPEND ACTUALLY THE NEXT TWO WEEKS TALKING TO YOU AND MEMBERS OF THE COMMUNITY TO GET YOUR IDEAS ABOUT THIS DRAFT POLICY BUDGET TO ENSURE THAT THERE MAY NOT BE SOME THINGS THAT WE HAVE OVERLOOKED, OR IF WE HAVE, HOW WE MIGHT MAKE ADJUSTMENTS TO THIS DOCUMENT AS YOU GET YOUR FINAL RECOMMENDATION FROM US AT END OF JULY. LET ME GO OVER IN TERMS OF OUR VISION FOR THE CITY, THAT REALLY IS THE THEME OF THIS BUDGET. WE WANT TO BE THE MOST LIVEABLE CITY IN THE COUNTRY. IN ORDER TO ACHIEVE THAT, WE WANT TO FOCUS THIS BUDGET AS WE HAVE PREVIOUS BUDGET ON THE THREE E'S OF SUSTAINABILITY, THE ECONOMY, THE ENVIRONMENT, AND EQUITY. THE CITY IS INVESTED IN THESE E'S OVER SEVERAL YEARS WITH ONGOING OPERATIONS AND WILL CONTINUE TO DO SO. BUT IN 01 OR FOR 2001, WE HAVE AN OPPORTUNITY TO INVEST IN OUR FUTURE BY SETTING ASIDE PART OF OUR REVENUES TO FUND ONE TIME PROJECTS THAT WILL FURTHER ENHANCE THE FACTORS OF SUSTAINABILITY. THIS IS WHY I AM PROPOSING THE CREATION OF A SUSTAINABILITY FUND, AN ECONOMIC DEVELOPMENT FUND THIS FISCAL YEAR, THIS COMING FISCAL YEAR. THE EMPHASIS WITH SUSTAINABILITY FUND WILL BE ON ONE-TIME PROJECTS THAT DO NOT HAVE AN ONGOING OPERATIONAL EXPENSE AND MAINTENANCE EXPENSE. FURTHER THESE PROJECTS WILL PROVIDE A FUTURE ECONOMIC RETURN TO THE CITY'S OPERATING FUNDS AND A SOCIAL AND ENVIRONMENTAL RETURN TO THE CITIZENS OF AUSTIN. THEY INCLUDE THE FOLLOWING: ROADWAY PROJECTS LIKE GILES ROAD TO BE DONE IN CASH, EXTENSION OF SOUTH FIRST STREET WHICH HELP BENEFIT THE VIFRMT BY REDUCING TRAFFIC RON INVESTIGATION AS WELL AS ENHANCING OUR -- WORKFORCE DEVELOPMENT, CHILD CARE, CONTINUING OUR INVESTMENT IN THE HOUSING TRUST FUND AND THE CONSTRUCTION OF THE BARTON SPRINGS SALAMANDER STRUCTURE AND I'M TOLD THAT THAT WILL BE A CAPTIVE BREEDING PROGRAM. TO INCREASE THEIR NUMBERS WITHIN THE SPRINGS. THE SUSTAINABILITY FUND WILL BE REVIEWED ANNUALLY BY US TO DETERMINE WHETHER IT'S FISCALLY PRUDENT TO CONTINUE CERTAIN PROJECTS. TO FURTHER THE CITY'S GOAL OF SUSTAINABILITY, AUSTIN ENERGY WILL BE PROVIDING 3.9 MILLION FOR A NEWLY CREATED ECONOMIC DEVELOPMENT FUND. THIS WILL ALLOW AUSTIN ENERGY TO INCREASE THE DENSITY OF OUR EXISTING INFRASTRUCTURE, SHORTEN THE TIME IT TAKES TO GET NEW CUSTOMERS ONLINE. IT WILL ALSO GIVE THE CITY THE ABILITY TO IMPLEMENT, PLAN AND IMPLEMENT GROWTH AND REDEVELOPMENT STRATEGIES ON A TIMELY BASIS. FOR EXAMPLE, IT WOULD PROVIDE RESOURCES FOR WORKING WITH HIGH TECH COMPANIES THAT ARE LOOKING TO RELOCATE IN AUSTIN AND FOR PLANNING OUR DOWNTOWN DEVELOPMENT AND FOR THE REDEVELOPMENT OF ROBERT MUELLER WHICH YOU WILL HAVE A PRESENTATION ON SHORTLY. CURRENT REVENUES FROM THE CITY'S MAJOR OPERATING FUNDS WILL SUPPORT BY SUSTAINABILITY FUND AND THE ECONOMIC DEVELOPMENT FUND. THE GENERAL FUND WILL HAVE A CONTRIBUTION OF SLIGHTLY MORE THAN 2% FOR 14.7 MILLION. WATER AND WASTEWATER, ONE PERCENT. SOLID WASTE SERVICES ONE PERCENT. DRAINAGE 1%. TRANSPORTATION 1% AND AUSTIN ENERGY AS I EXPLAINED JUST A MINUTE AGO WITH THEIR CONTRIBUTION. CREATION OF THOSE SUSTAINABILITY AND ECONOMIC DEVELOPMENT FUNDS HELP US FOCUS OUR INTENTION IN INVESTING ON SEVERAL ONE-TIME PROJECTS THAT WILL SUPPORT THE THREE E'S. THERE ARE A NUMBER OF PROJECTS AND PROGRAMS THAT WE WILL ALSO FUND THROUGH THE PROPOSED DRAFT POLICY BUDGET THAT WILL HELP US MEET OUR GOALS OF SUSTAINABLY AND MAINTAIN OUR QUALITY OF LIFE, INCLUDING SUPPORTING INITIATIVES THAT PROVIDE A STRONG FOUNDATION TO AUSTIN'S FUTURE, INCLUDING AIR QUALITY PROGRAMS, WHICH WILL INCLUDE THINGS LIKE FLEXIBLE SCHEDULES, COMPRESSED WORK WEEKS AND COMMUTER PROGRAMS. INCREASED INVESTMENT IN PUBLIC SAFETY, WE WILL DISCUSS THAT IN A MOMENT IN A LITTLE BIT MORE DETAIL. NEIGHBORHOOD SERVICES AS WE CONTINUE OUR EFFORTS TO FOCUS ON THAT OFFICE WITHIN CENTRAL EAST AUSTIN, NORTHEAST AUSTIN AND ESTABLISH A PROGRAM FOR IMPLEMENTATION OF OUR NEIGHBORHOOD PLANS. SOMETHING THAT IS VERY IMPORTANT TO THE CITY COUNCILL IS -- AS A MATTER OF POLICY IS AFFORDABLE HOUSING, WE CONTINUE TO INVEST IN THAT TRUST FUND AS PART OF THIS PROPOSED DRAFT POLICY BUDGET. AN ISSUE HAS THAT HAS BEEN MENTIONED BY THE COMMUNITY AND CITY COUNCILL OF GREAT IMPORTANCE IS THE MAINTENANCE OF OUR PARK SYSTEM, THE DRAFT POLICY BUDGET PROVIDES THE FOLLOWING, AN -- INCREASING THE OPERATIONAL EXPENSE WITHIN PARKS AND RECREATION FROM 28.1 MILLION TO 25.9 MILLION WITH AN EMPHASIS ON MAINTENANCE, AN ADDITIONAL 700,000 TO SUPPORT NEW F.T.E.'S FOR LANDSCAPING, TRAILS, BALL FIELD MAINTENANCE. IN ADDITION THERE IS APPROXIMATELY 1.4 MILLION IN NEW APPROPRIATIONS IN THE CAPITAL BUDGET FOR MAINTENANCE RELATED SERVICES AND RENOVATIONS. WITH THIS YEAR'S PROJECTED FUNDING, THAT MEANS THAT WE WILL HAVE APPROXIMATELY 5 MILLION NEXT YEAR AND WITH THIS YEAR'S PROJECTED FUNDING, IT MEANS THAT NEXT YEAR WE WILL HAVE 5 MILLION FOR CAPITAL PARKS AND MAINTENANCE PROJECTS. BOND IMPLEMENTATION IS ALSO PART OF THIS, BUT WE PROPOSE TO SELL APPROXIMATELY $59 MILLION. LET ME WALK THROUGH SOME OF THE ASSUMPTIONS. ECONOMISTS PREDICT THAT WE CAN EXPECT AN ADDITIONAL 85,100 PEOPLE IN AUSTIN, TO CALL AUSTIN OR CENTRAL TEXAS HOME BY THE END OF 2001. WE'VE HAD MANY ACCOLADES THROUGH FORBES MAGAZINE IN TERMS OF RECOGNIZING BEST PRACTICES TO DO BUSINESS, YAHOO INTERNET LIFE IS ONE OF THE MOST WIRED CITIES IN THE COUNTRY, JANUARY 2000 WE WERE RANKED AS ONE OF THE BEST MANAGED CITIES IN THE COUNTRY, DECEMBER '99 WE WERE RANKED AS THE SECOND ON A LIST OF BEST PLACES TO START AND GROW A BUSINESS BY IMPERVIOUS COVER, MAGAZINE AND MONEY MANAGE IN NOVEMBER OF 99 RANKEDS AS ONE OF THE BEST PLACES TO LIVE. (INK MAGAZINE).

>> NEW GROWTH ALONE IS -- THE NEW GROWTH IN OUR TAX BASE IS $1.9 MILLION OF NEW PROPERTY THAT'S BEING PUT ON THE TAX ROLL IN FISCAL YEAR 01, WE ARE EXPERIENCING OR CONTINUING TO EXPERIENCE VERY LOW UNEMPLOYMENT OF 1.9 EXPERTS. INCREASE IN SALES TAX IS -- 1.9%. INCREASE IN SALES TAX IS AN INCREASE OF $14.7 MILLION, 12% OVER CURRENT REVENUE. IT'S IMPORTANT THAT WHILE WE HAVE THIS GROWING REVENUE, TO RECOGNIZE THAT WE HAVE MADE A NUMBER OF FUNDING COMMITMENTS. IT ALLOWS US TO KEEP UP WITH PHONE MALL GROWTH AND RESULTING INCREASE IN DEMAND FOR SERVICES. LET ME HIGHLIGHT SOME OF THE INCREASES THAT YOU SEE IN THIS DRAFT POLICY BUDGET. A.P.D.'S BUDGET HAS GROWN BY 9.5%, WITHOUT NUMBERS FOR MEET AND CONFER. E.M.S. 9.1% INCREASE, AUSTIN FIRE DEPARTMENT, 8.5% INCREASE. DEVELOPMENT REVIEW AND INSPECTION DEPARTMENT, 5% INCREASE, PUBLIC WORKS IS AT THIS STAGE IS INCREASE OF 4.3%. THIS PROPOSAL ASSUMES A TAX RATE OF 4650 --46.50 CENTS PER 100 VALUE YAIG. THIS FIGURE REPRESENTS AN ESTIMATED EFFECTIVE RATE PLUS 1% INCREASE FOR DEBT SERVICE OF VOTER APPROVED BOND SALE THAT THE VOTERS APPROVED IN NOVEMBER OF 1998. IT PROVIDES FUNDING FOR WORKFORCE ISSUES, INCLUDING MARKET ADJUSTMENTS, PAY FOR PERFORMANCE, MEET AND CONFER, STEP AND LONGEVITY PAY FOR CIVIL SERVICES PERSONNEL. IT BRINGS NEW FACILITIES ONLINE, INCLUDING THE RELOCATION OF THE DAVID POWEEL CLINIC, SEVENTH STREET HOPE CENTER, GREATER AUSTIN YOUTH LEAGUE ACTIVITY CENTER. IT MAINTAINS THE GENERAL FUND TRANS FROM HER FROM AUSTIN ENERGY AT 9.1%. AS I MENTIONED CRITICAL NEEDS FOR PUBLIC SAFETY ARE FUNDED AS PART OF THIS DRAFT POLICY BUDGET. 26 NEW POLICE OFFICERS TO HELP US MAINTAIN STAFFING AT 1.9 --1.9 PER THOUSAND RESIDENTS. 35 NEW CIVILIAN POSITIONS TO INCREASE THE EFFICIENCY AND EFFECTIVENESS. FUNDING FOR FIRE CADET CLASSES WHICH WILL STAFF THE HARRIS RIDGE FIRE STATION SCHEDULED TO OPEN IN THE FALL OF 2001. OPENING POLICE SUB STATION, OPENING -- HELPING TO IMPROVE E.M.S. RESPONSE TIMES THROUGH THE OPENING OF TWO E.M.S. STATIONS, MACONDA AND JONESTOWN, PART OF THAT BEING PAID BY THE COUNTY. ACTUALLY PART OF IT PAID BY THE COUNTY. WEST AUSTIN E.M.S. STATION CONSTRUCTION TO BE COMPLETE UNDERSTAND THE FALL OF 2001. FULL YEAR FUNDING FOR THE FIRE STATION AT SPICEWOOD SPRINGS WHICH IS SCHEDULED TO OPEN IN THE FALL OF 2001. ADDITIONAL STAFFING FOR E.M.S. COMMUNICATION CENTER BY ADDING FOUR F.T.E.'S TO HELP US IN TERMS OF OUR DISPATCH TIMES OR RESPONSE TIMES. WE ARE PLEASED TO PRESENT THE DRAFT POLICY BUDGET TO YOU AT THE RATE OF 46.50 PER 100 VALUATION, REPRESENTS A DECREASE FROM THE CURRENT FISCAL YEAR'S TAX RATE OF 50.34 CENTS, THIS REPRESENTS THE LOWEST PROPERTY RATE AMONG MAJOR TEXAS CITIES. LET ME HIGHLIGHT A FEW. SAN ANTONIO IS AT 57.98. HOUSTON 66.50, DALLAS IS AT 66.75, AND FORT WORTH IS AT 88.50. AS YOU CAN SEE, AUSTIN IS CONSIDERABLY BELOW THOSE RATES. THE 46.50 DOES REPRESENT A ONE PENNY INCREASE OVER THE EFFECTIVE RATE FOR DEBT SERVICE AND THOSE WERE FOR PROJECTS THAT WERE APPROVED AGAIN IN THE 1998 BOND PROGRAM. I WRANT TO HIGHLIGHT THE -- THE ESTIMATE AT THIS POINT A RESULT OR THE PRELIMINARY ROLL THAT WE RECEIVED FROM THE TAX APPRAISAL DISTRICT, WE WILL GET THE FINAL ROLL AT THE END OF JULY, MAY BE LATER THAN THAT GIVEN THE NUMBER OF APPEALS TO PEOPLE'S ASSESSMENTS OR PROPERTY OWNERS' ASSESSMENTS, BUT THAT'S THE ESTIMATE AT THIS POINT IN TERMS OF WHAT WE CAN PREDICT. WHAT DOES THIS MEAN FOR HOMEOWNERS? THE OVERALL INCREASE IN THE TAX ROLL IS ESTIMATED TO $5.6 BILLION OR 16% INCREASE OVER THE PEFS YEAR, APPROXIMATELY 1.9 BILLION FROM NEW GROWTH. THE AVERAGE SINGLE HOME LAST YEAR COST IN AUSTIN $122,164. WE ESTIMATE THE AVERAGE IN FISCAL YEAR 2001 OR THIS NEW FISCAL YEAR TO BE $139,307. BECAUSE THE HOME OWNER HAS A 10% CAP ON THE INCREASE IN TAXABLE VALUE EACH YEAR, IF LAST YEAR'S AVERAGE HOUSE OWNER IS OPENED, THE TAXABLE VALUE WOULD ONLY BE 134,380 BECAUSE OF THE 10% CAP. WHAT THIS INCREASE WILL MEAN IS AN INCREASE OF $9.90 NEXT YEAR. I REPEAT, 9.90 OVER A 12-MONTH PERIOD. THIS DRAFT POLICY BUDGET PROPOSED NO ELECTRIC RATE INCREASE. WE WILL NOT BE RECOMMENDING A SYSTEM-WIDE INCREASE FOR WATER AND WASTEWATER SERVICES. HOWEVER, LATER THIS YEAR YOU WILL GET A COST OF SERVICE STUDY. THAT COST OF SERVICE STUDY WILL REALLOCATE EXPENSES AMONG CLASSES OF CUSTOMERS. SO SOME CUSTOMERS MAY SEE A DECREASE IN THEIR WATER AND WASTEWATER FEES, SOME MAY SEE SLIGHT INCREASES. WITH RESPECT TO THE PROPOSED FEES, WE ARE NOT RECOMMENDING AN INCREASE IN SOLID WASTE SERVICES FEE FOR FISCAL YEAR 2001. WE ARE RECOMMENDING A $4 CHARGE FOR THOSE INDIVIDUALS WHO SET OUT GARBAGE WITHOUT STICKERS. WE WILL BE COLLECTING THAT AND ASSESSING THOSE HOMEOWNERS A $4 CHARGE. WE ARE PROPOSING A 10% INCREASE IN FUNDING OF THE WATERSHED PROTECTION DEPARTMENT THROUGH THE DRAINAGE MONTHLY UTILITY FEE PAID BY CUSTOMERS FOR AN INCH RATE PAIR THAT MEANS AN INCREASE FROM 4.74 TO 5.21 FOR THE AVERAGE COMMERCIAL RATE PAYER IT MEANS AN INCREASE FROM 51.12 A MONTH TO 56.23 A MONTH. MOST OF THESE INCREASES PLANNED FOR THE TRANS -- TO TRANSFER FOR THE CAPITAL IMPROVEMENT PROGRAM, ABOUT $700,000 OF THE TOTAL 2.4 MILLION AND THE TRANSFER WILL BE USED TO PURCHASE NEW EQUIPMENT FOR EMPLOYEES, WHICH WILL HELP WITH FLOOD CONTROL AND HELP WITH THE DRAINAGE MASTER -- DRAINAGE MASTER PLAN IMPLEMENTATION. WE ARE ALSO PROPOSING A 6% INCREASE RECOMMENDED FOR THE TRANSPORTATION USER FEE. SINGLE FAMILY RESIDENT RATES WOULD INCREASE FROM $3.30 TO $3.50, FOR COMMERCIAL FEES IT WOULD INCREASE FROM $16.50 TO 17.49. THE ADDITIONAL REVENUES NEEDED TO KEEP PACE WITH THE COSTS OF PROVIDING TRAFFIC IMPROVEMENTS AND INFRASTRUCTURE TO FUND NEW TRAFFICKING, MARKING CREWS AND WILL ALLOW -- THESE CREWS WILL INSTALL RAISED PAVEMENT MARKINGS TO ENHANCE THE LINE VISIBILITY AND REFLECTIVETY. ALTHOUGH WE ADDRESS MANY OF OUR CRITICAL CORE FUNCTIONS, THERE ARE STILL ISSUE THAT'S NEED TO BE CONSIDERED BETWEEN NOW AND THE ADOPTION OF THE BUDGET. EVEN THE PROPOSED BUDGET THAT YOU RECEIVE AT THE END OF JULY. ONE AREA OF PARTICULAR CONCERN TO US IS INCREASING HEALTH CARE COSTS. DURING THE PREPARATION OF THIS YEAR'S FISCAL YEAR BUDGET, WE THOUGHT ENHANCED BENEFIT PACKAGE TO OUR EMPLOYEES WOULD HELP OFFSET INCREASES IN THE COST OF HEALTH CARE. HOWEVER THE INCREASE THAT WE HAVE EXPERIENCED DURING THE CURRENT FISCAL YEAR HAS FAR EXCEEDED WHAT WE HAD EXPECTED. SO AS THOSE HEALTH CARE COSTS CONTINUE TO SOAR, WE AS A STAFF WILL BE EVALUATING ALTERNATIVES THAT THE COUNCIL MAY WISH TO CONSIDER IN MAKING MODIFICATIONS TO THOSE PLANS THAT HELP MITIGATE SOME OF THOSE EXPENSES THAT WE ARE HAVING TO BEAR AS WELL AS THOSE OF OUR -- AS WELL AS THE EMPLOYEES HAVING TO BEAR. ONE AREA WE WANT TO LOOK AT ALSO BETWEEN NOW AND THE END OF JILL IS OUR PAY FOR PERFORMANCE PACKAGE. WE HAVE ASKED OUR HUMAN RESOURCES DEPARTMENT TO RESOURCE WHAT OTHER TEXAS CITIES ARE DOING WITH RESPECT TO INCREASES IN PAY PACKAGES IN OTHER MAJOR CITIES BECAUSE WE WANT TO CONTINUE TO MAINTAIN A HIGHLY SKILLED AND MOTIVATED WORKFORCE. DEPENDING ON THAT RESEARCH WE MAY WANT TO COME BACK AND VISIT THE EXISTING RECOMMENDATION. OVERALL THIS ADDRESSES MANY OF OUR BASIC NEEDS IN OUR COMMUNITY. FUNDING CRITICAL ENVIRONMENTAL, ECONOMIC, AND SOCIAL EQUITY ONE-TIME INITIATIVES TO THE CREATION OF THE SUSTAINABILITY FUND AND ECONOMIC DEVELOPMENT FUND. CONTINUED IMPROVEMENTS FOR PUBLIC SAFETY, ADDITIONAL RESOURCES FOR OUR NEIGHBORHOODS AND AFFORDABLE HOUSING. I WANT TO THANK YOU, MAYOR AND COUNCIL, FOR THE OPPORTUNITY TO PRINT THIS DOCUMENT. AGAIN I WANT TO EMPHASIZE THIS IS THE BEGINNING OF THE PROCESS THAT WE LOOK FORWARD TO WORKING WITH ALL OFOU, GETTING THE FINAL RECOMMENDATIONS BEFORE YOU AT THE END OF JULY. I WILL BE HAPPY TO ANSWER ANY QUESTIONS.

>>MAYOR WATSON: QUESTIONS FROM COUNCIL? COUNCILMEMBER SLUSHER?

>>SLUSHER: THANK YOU, MAYOR, I APPRECIATE THE CITY MANAGER. A COUPLE OF THINGS, ONE, YOU TALKED ABOUT THE PAY FOR PERFORMANCE PAY. DO WE HAVE ANYTHING IN THIS BUDGET TO INCREASE THE FLOOR ON THE LOWEST PAID CITY EMPLOYEES?

>>GARZA: I BELIEVE THAT IN THE DRAFT POLICY BUDGET WE D HAVE AN INCREASE OF 50 CENTS, I BELIEVE, THAT'S BEING CONTEMPLATED. DID WE DO THAT?

>> [INAUDIBLE].

>>GARZA: I THINK WE ARE GOING TO BE RECOMMENDING THAT, IT'S NOT IN THE DRAFT POLICY, IT WILL BE AT THE TIME OF JULY.

>>SLUSHER: I WOULD LIKE TO SEE THAT, THE NUMBERS ON WHAT ANOTHER 50 CENTS AT MID YEAR WOULD DO.

>>GARZA: OVER THE FISCAL YEAR, A DOLLAR OVER THE FISCAL YEAR?

>>SLUSHER: THAT'S RIGHT. ANOTHER AREA OF CONCERN THAT WE TALKED ABOUT INCREASED POSITIONS IN THE POLICE DEPARTMENT -- (COMPUTER RINGING) -- SOME OF THOSE ARE GOING TO INCREASE TRAFFIC SAFETY AND ENFORCEMENT, DANGEROUS DRIVING, AGGRESSIVE DRIVING, DO WE HAVE -- WE'VE HAD SOME SUCCESS, ALTHOUGH IT'S SOMETIMES HARD TO TELL OUT ON THE ROAD, WE KNOW WITH THE HELICOPTER PROGRAM ON THE FREEWAY, THAT'S RESULTED IN GETTING A NUMBER OF UNSAFE VEHICLES OFF THE ROAD, SOME AGGRESSIVE DRIVING. DO WE HAVE ANYTHING --.

>>GARZA: I DON'T KNOW THAT WE SPECIFICALLY HAVE THAT,LY LET ME SAY KEEPING THIS AT A STRENGTH OF 1.9 I KNOW WE WANT TO ACHIEVE TWO OBJECTIVES, ACTUALLY 3. ONE OBJECTIVE IS TO CONTINUE OUR EFFORTS IN TERMS OF COMMUNITY POLICING. APPLYING THE RESOURCES TO THOSE EFFORTS THAT WE HAVE THROUGH THE SIX POLICE SECTORS. THE SECOND THING IS THE GOAL THAT THE CHIEF STATED TO MAKE US ONE OF THE 10 SAFEST CITIES IN THE COUNTRY. LARGE CITIES IN THE COUNTRY. FINAL, I KNOW THAT HE'S KEENLY INTERESTED IN IS HOW PART OF THAT SAFETY FACTOR IS TRAFFIC. FROM THAT STANDPOINT, WHILE WE MAY NOT HAVE DEDICATED RESOURCES THERE IS CONTINUED EMPHASIS ON IT. PARTICULARLY FOR SOME OF OUR CITY EMPLOYEES THAT DRIVE VERY FAST.

>>SLUSHER: I HAVE HEARD THAT IS A PROBLEM AT TIMES. THEY WORK LATE AND DRIVE HOME FAST. BUT -- [LAUGHTER]. GARZA FROM WHEREVER IT IS THEY ARE COMING FROM.

>>SLUSHER: ONE THING THAT I WOULD LIKE TO CONSIDER, I WILL PUT THIS IN WRITING FOR YOU IN A DAY OR SO, BUT IF WE WERE TO INCREASE THE FINES FOR TAILGATING AND RED LIGHT RUNNING AND THAT MONEY COULD PERHAPS GO TO MORE TRAFFIC ENFORCEMENT. EITHER INCREASE THEM JUST PERIOD OR AS IF THERE'S AN ACCIDENT INVOLVED, MAYBE INCREASE THAT EVEN MORE. I WILL PUT A PROPOSAL IN WRITING AND SEND IT OVER FOR CONSIDERATION GARZA ONE OF THE THINGS COUNCILMEMBER THAT I WOULD --.

>>GARZA: ONE OF THE THINGS THAT WE ARE -- WE ARE CAUTIONED FROM DOING IS TO -- TO TIE TRAFFIC REVENUE TO -- AS SOME KIND OF A TARGET OR A GOAL, BUT I THINK WHAT YOU ARE SAYING, WE COULD WORK SOMETHING TO MAKE THAT A REALITY.

>>SLUSHER: YEAH, IT WOULDN'T NECESSARILY HAVE TO GO TO THAT, BUT I DO THINK THAT IT MAKES SENSE. THAT WAS SUGGESTED BY A CITIZEN IN A LETTER TO ME. BUT IF THOSE ARE VERY DANGEROUS THINGS THEY CAN REALLY CHANGE PEOPLE'S LIVES JUST IN AN INSTANT.

>>GARZA: I UNDERSTAND.

>>SLUSHER: ANOTHER THING, THE APPRAISALS, YOU HAD GIVEN AN EDGE INCREASE I THINK ON THE AVERAGE HOME OF NINE DOLLARS A YEAR AS A RESULT OF THIS BUDGET. THAT'S FROM A VOTER -- WHAT WE HAVE [INAUDIBLE] EMPHASIZE AGAIN IS VOTER APPROVED DEBT, OTHER THAN THAT --.

>>GARZA: THAT'S RIGHT.

>>SLUSHER: BONDS FROM '98.

>>GARZA: OPERATION AND MAINTENANCE IS EFFECTIVE RATE. DO A PENNY INCREASE ABOVE THAT RATE FOR THE DEBT THAT WE TAKE ON AS PART OF THE '98 PROGRAM. THE WAY IT WORKS IS THOUGH THE APPRAISALS HAVE GONE UP FOR THE AVERAGE HOME HIGHER THAN THE 10%, YOU ARE CAPPED BY STATE LAW AT 10%. SO THE HOME GOES FROM 122,000 TO AN AVERAGE HOME COST OF 134,000, APPEAR LYING THAT PENNY IS 9.90 CENTS OVER THE COURSE OF 12 MONTHS.

>>SLUSHER: I HAVEN'T HAD A CHANCE TO LOOK AT THIS WHOLE THING YET. DO WE HAVE ANYWHERE IN HERE THE FIGURES ON HOW MUCH FOR INSTANCE HOME APPRAISALS WENT UP, HOW MUCH APARTMENT APPRAISALS, HOW MUCH COMMERCIAL PROPERTY AND HOW MUCH VACANTANT WENT UP SO WE CAN SEE HOW THIS INCREASE IS GOING TO AFFECT VARIOUS SECTORS?

>>GARZA: WE CAN CERTAINLY GET YOU THAT INFORMATION.

>>SLUSHER: I WOULD APPRECIATE THAT. THAT'S ALL THAT I HAVE RIGHT NOW, MAYOR?

>>MAYOR WATSON: ANY OTHER QUESTIONS AT THIS POINT? COUNCILMEMBER ALVAREZ?

>>ALVAREZ: THANKS A LOT, CITY -- JESUS GARZA, I AM TRYING TO GET THIS DOWN. [LAUGHTER].

>> MANAGER?

>> COUNCILMEMBER.

>> LOOKS LIKE HE GOT HIS PART DOWN. [LAUGHTER].

>>ALVAREZ: I WOULD WONDERING IF YOU COULD ELABORATE A LITTLE MORE ABOUT THE SUSTAINABILITY AND ECONOMIC DEVELOPMENT FUND BECAUSE IT MENTIONS, INFRASTRUCTURE AND WORKFORCE DEVELOPMENT, CHILD CARE, I WAS JUST WONDERING HOW IT BREAKS DOWN, ALSO HOW IT RELATES TO HOUSING AND OTHER CHILD CARE PROGRAMS THAT WE MIGHT HAVE.

>>GARZA: I THINK THAT THE CREATION OF THE FUND IN TERMS OF THE THEME IS THAT RIGHT NOW WE ARE WITHOUT A DOUBT EXPERIENCING REALLY UNPRECEDENTED GROWTH FOR AUSTIN, TEXAS. IF WE ARE GOING TO SUSTAIN THE QUALITY OF LIFE AND SUSTAIN REALLY THE VIABILITY OF ALL OF THE DIFFERENT BUSINESS PRACTICES THAT WE RUN AS A CITY, THAT WE ALL NEED TO MAKE A CONTRIBUTION INCLUDING THE AGAIN RAM FUND TO CERTAIN THINGS THAT ENHANCE -- GENERAL FUND, ENHANCE AND CONTINUE TO MAKE AUSTIN ATTRACTIVE. SO I WHAT THE FUND IS INTENDED TO DO IS TO FUND THOSE THINGS THAT WILL PROVIDE THE ENTIRE ECONOMIC SPECTRUM A RETURN AND IT DOES INCLUDE AFFORDABLE HOUSING, WHICH IS A MILLION DOLLARS FOR THE HOUSING TRUST FUND. I BELIEVE THAT THE CHILD CARE INITIATIVES ARE RIGHT AT 700 PLUS THOUSAND, I CAN GET YOU -- STREETS AND MAINTENANCE, SOME NUMBERS, I CAN GET YOU NUMBERS LATER. WE HAVE ALSO THE HOMELESS SHELTER, SOME OF THE EXPENSES THAT WE CONTRACT WITH FOLKS TO -- TO DEAL WITH THE ISSUE OF FOLKS THAT ARE HOMELESS WITHIN THAT FUND. AND I GUESS THE INTENT THAT IS WE TRY TO FUND THESE AS ONE TIME EXPENDITURES, WE MAKE THESE INVESTMENTS, SEE THOSE AS INVESTMENTS. WITH REALLY THE ANTICIPATION THAT THOSE INVESTMENT WILL YIELD A RETURN TO US AS A CITY. ALSO GIVING THE COUNCIL AS WELL AS US A FLEXIBILITY SHOULD THERE BE ANab, ECONOMIC DOWNTURN, YOU ARE ABLE TO MAKE ADJUSTMENTS IN THOSE BUDGETS WITHOUT AFFECTING THE WORSE FORCE. THAT'S IT IS INTEND BEHIND IT AND CONTRIBUTIONS ARE REALLY COMING FROM ALL FUNDS.

>> SURE. I GUESS THERE ISN'T ONE SET DOLLAR FIGURE FOR THIS PARTICULAR -- IT'S NOT LIKE AN ACCOUNTING FUND.

>>GARZA: NO.

>>ALVAREZ: POLICY CATEGORY. BUT WHAT YOU ARE SAYING IS UNDER THIS PARTICULAR CATEGORY, WILL MOST OF THESE -- ONE TIME EXPENSES, IS IT MORE LIKE CAPITAL?

>>GARZA: IT IS CAPITAL. CAPITAL OR CONTRACTS THAT WE HAVE WITH OUTSIDE PROVIDERS THAT WE ARE PROVIDING FUNDING TO, BUT WITH THE UNDERSTANDING THAT IF THINGS HIT US IN SUCH A WAY THAT YOU HAVE TO START LOOKING AT LAYOFFS OR REDUCTIONS IN YOUR WORKFORCE, THAT THOSE CONTRACTS ARE OBVIOUSLY THE EASIEST TO SHED BECAUSE YOU WANT TO MAINTAIN YOUR CORE SERVICES. LET ME GIVE YOU THE BREAKDOWN UNDER THE REQUIREMENT. IT'S A MILLION DOLLARS TO THE HOUSING TRUST FUND, GILES ROAD CONSTRUCTION, 3.8 MILLION. SOUTH FIRST STREET INTENTION 9.2 MILLION. EXTENSION. WORKFORCE DEVELOPMENT, 2 MILLION 83, CHILD CARE INITIATIVE OF 1.5, BARTON SPRINGS SALAMANDER STRUCTURE, WHERE THEY CAN PROSPER AND REPRODUCE AT 154,000.

>>ALVAREZ: OKAY, THANK YOU.

>>GARZA: THANK YOU.

>>MAYOR WATSON: ANY OTHER QUESTIONS? [INAUDIBLE]. LET ME SAY A COUPLE OF THINGS REAL QUICK TO EMPHASIZE A COUPLE OF THINGS IN THIS POLICY BUDGET. THIS IS NOT, ALTHOUGH WE CALL IT A POLICY BUDGET, IT IS NOT A BUDGET. I THINK THAT WAS -- THAT POINT HAS BEEN MADE, BUT I WANT TO EMPHASIZE THAT. WE ARE JUST REALLY STARTING THE PROCESS. A COUPLE OF THINGS THAT COUNCILMEMBER SLUSHER ALSO POINTED OUT, BUT I WANT TO REALLY EMPHASIZE IT. FIRST OF ALL, THIS RECOMMENDATION WOULD BE ONE WHERE THIS WOULD BE THE THIRD YEAR IN A ROW THAT THE CITY OF AUSTIN WOULD BE REDUCING THE TAX RATE SO THAT IT -- IT WOULD, BEING REDUCED TO THE EFFECTIVE RATE. THE PAST TWO -- THIS WILL BE THE SECOND YEAR THEN THAT WE WOULD ADD ONE CENT TO THAT RATE AND THAT WOULD BE ONLY FOR VOTER -- IT WOULD BE TO TAKE CARE OF THE DEBT THAT WAS VOTER APPROVED IN THE NOVEMBER '98 ELECTION. IN OTHER WORDS THIS WOULD BE THE THIRD YEAR IN A ROW THAT THE TAX RATE WOULD BE REDUCED, ANYTHING OFF THE EFFECTIVE RATE WOULD HAVE BEEN VOTER APPROVED. AND I THINK THAT THE AUDIT AND FINANCE COMMITTEE, WHEN WE MET LAST, AND FIRST SAW THIS -- THIS RECOMMENDATION ON A RATE, WE INDICATED THAT WE WERE HOPEFUL THAT THAT'S THE WAY IT WOULD COME BACK. I WANT TO CONGRATULATE THE CITY MANAGER AND CITY MANAGER'S OFFICE AND STAFF FOR BRINGING THAT FORWARD IN THAT WAY. BECAUSE WHAT THAT MEANS IS THAT THE CITY OF AUSTIN IS WORKING TO KEEP THE TAX RATE LOW. IN ADDITION, LET ME POINT OUT ONE OTHER THING THAT MAY NOT HAVE BEEN PICKED UP THIS THAT. THE AVERAGE HOME OWNER -- IN THAT. THE AVERAGE HOMEOWNER EVEN WITH ALL OF THE INCREASE IN VALUATIONS WOULD SEE LESS THAN A DOLLAR A MONTH INCREASE IN THEIR PROPERTY TAXES FOR THE CITY OF AUSTIN TAXES TO PAY FOR THAT VOTER APPROVED DEBT. SO THE WAY THE CITY IS BEING MANAGED, THE WAY WE ARE APPROACHING IT MEANS THAT WITH A REDUCTION IN THE TAX RATE AND EVEN ADDING THAT ONE CENT TO THE RATE OFF THE EFFECTIVE RATE TO TAKE CARE OF WHAT THE VOTERS TOLD US THEY WANTED TO HAVE, WHAT IT MEANS FOR THE -- TO THE AVERAGE HOME OWNER, WITH EVERYTHING, I'M NOT GOING TO GO DO THAT, IS LESS THAN A DOLLAR A MONTH. WHEN THE CITY MANAGER MENTIONED THE NINE DOLLARS PLUS PER YEAR, YOU CAN DO THE MATH ON THAT. IT WOULD PUT THE CITY OF AUSTIN TAX RATE AT THE LOWEST TAX RATE THE CITY HAS HAD IN OVER A DECADE. AND I WOULD ALSO SAY THAT WHEN YOU COMPARE TO OTHER CITIES, THAT IS ONE OF THE WAYS YOU DETERMINE HOW YOU ARE DOING, YOU MAKE COMPARISONS TO OTHER CITIES. IF YOU COMPARE THE CITY OF AUSTIN TO OTHER LARGE CITIES, WHAT IT WOULD MEAN IS ONCE -- WHAT WE CURRENTLY HAVE, IT APPEARS WE CONTINUE TO HAVE, THE LOWEST CITY TAX RATE OF ANY LARGE CITY IN THE STATE OF TEXAS. SO I APPRECIATE YOUR BRINGING IT FORWARD THAT WAY. I JUST WANTED TO EMPHASIZE THOSE KEY POINTS. ANY OTHER QUESTIONS OR COMMENTS BY COUNCIL?

>>GARZA: WE LOOK FORWARD TO WORKING WITH YOU.

>>MAYOR WATSON: THANK YOU MR. CITY MANAGER. THE NEXT WHAT WE WILL DO IS I WILL GO TO ITEM NO. 3, WHICH IS A BRIEFING ON CHARTER REVISION.

>> I'M JOHN STEINER WITH THE LAW DEPARTMENT. IF A -- IF THE COUNCIL IS INTERESTED IN CONSIDERING A CHANGE TO THE CHARTER, WITH RESPECT TO THE CITY'S ELECTION SYSTEM, NOW I THINK WE NEED TO BEGIN WITH TWO DATES THAT REALLY CONSTRAIN THE OPTIONS. IF THE COUNCIL IS ENTERED IN CONSIDERING A CHANGE IN THE -- INTERESTED IN CONSIDERING A CHANGE IN THE CHARTER WITH RESPECT TO THE ELECTION SYSTEM PARTICULARLY IN TIME FOR THE NEXT COUNCIL ELECTION, THEN THAT -- THAT NEXT COUNCIL ELECTION DATE IS MAY 4TH, 2002, AND WE HAVE TO WORK BACK FROM THAT DATE TO MAKE SURE THAT EVERYTHING THAT NEEDS TO BE DONE CAN GET DONE. THE SECOND IMPORTANT EVENT THAT TIES UP THE RANGE OF OPTIONS IS THE AVAILABILITY OF CENSUS DATA FOR THE 2000 CENSUS. WE DON'T KNOW EXACTLY WHAT DATE THAT WILL BE. IT WILL BE IN -- IN THE SPRING OF NEXT YEAR. ASSUMING THAT THE CENSUS COMPLIES WITH ITS OWN DEADLINES, WE SHOULD HAVE IT BY APRIL THE FIRST. TYPICALLY, YOU WOULD HAVE IT EARLIER THAN THAT. BUT THIS IS A -- THIS IS A UNIQUE CENSUS AND WE JUST WON'T KNOW UNTIL WE GET IT. THE NEXT COUNCIL ELECTION, AS I SAID, IS MAY 4TH, 2002. THE FILING DEADLINE FOR A PLACE ON THE BALLOT IN THAT ELECTION WILL BE FEBRUARY THE 18TH OF THIS YEAR, 2002. IN ORDER TO KNOW WHAT OFFICE TO FILE FOR, THE CITY -- WHEN A CANDIDATE CAME TO FILE HIS APPLICATION FOR A PLACE ON THE BALLOT, EVERYTHING WOULD HAVE TO BE LINED UP, NO LATER THAN THAT DATE. AND PREFERABLY A BIT BEFORE THAT DATE SO PEOPLE COULD MAKE PLANS. AUSTIN, BEING SUBJECT TO SECTION 5 OF THE FEDERAL VOTING RIGHTS ACT, WHICH MEANS THAT ANY CHANGE IN OUR ELECTORAL SYSTEM MUST RECEIVE PRECLEARANCE FROM THE DEPARTMENT OF JUSTICE -- FROM THE FEDERAL DEPARTMENT OF JUSTICE BEFORE IT CAN BE IMPLEMENTED -- MEANS, GIVEN THE FACT THAT THE DEPARTMENT OF JUSTICE HAS TWO 60-DAY PERIODS, PLUS A PERIOD FOR SEEKING ADDITIONAL INFORMATION, BACKS IT UP TO AN ABSOLUTE PRACTICAL DEADLINE OF SOPT THE 30TH, 2001 FOR HAVING ABSOLUTELY EVERYTHING IN PLACE FOR A DEPARTMENT OF JUSTICE SUBMISSION. THEREFORE, IF THE COUNCIL WANTED TO HAVE SOMETHING TO PUT ON THE BALLOT, FOR THE VOTERS TO CONSIDER, AND HAVE SOME IDEA OF WHAT DISTRICTS MIGHT BE OFFERED IF SINGLE MEMBER DISTRICTS WERE TO BE PART OF THE PLAN, THEN I THINK THE FIRST ELECTION DATE WHERE ALL OF THAT COULD BE IN PLACE AND STILL HAVE A CHANCE OF GETTING DEPARTMENT OF JUSTICE SUBMISSION IN TIME TO IMPLEMENTS THE WHOLE PACKAGE BEFORE MAY THE 4TH -- IN TIME FOR MAY THE 4TH 2002 WOULD BE THE AUGUST 11 ELECTION DATE OF 2001. THE MAY 5TH ELECTION DATE OF 2001 IS A DATE ON WHICH YOU COULD SUBMIT A CHARTER AMENDMENT, BUT EVEN IF WE GOT THE CENSUS DATA, AS EARLY AS JANUARY OF THAT YEAR, THERE WOULDN'T PRACTICALLY BE ENOUGH TIME TO -- TO REALLY CONSIDER THE OPTIONS ON DRAWING DISTRICTS AND HAVE THEM IN PLACE IN TIME FOR THE VOTERS TO BE ABLE TO VOTE ON SOMETHING WITH DISTRICTS IN FRONT OF THEM. NOW THAT'S NOT ABSOLUTELY NECESSARY, BUT IF THAT OPTION -- IF IT'S DESIRED TO HAVE SOMETHING LIKE THAT IN PLACE WHEN THE ISSUE IS SUBMITTED TO THE VOTERS, THEN AS A PRACTICAL MATTER MAY 5TH WOULD PROBABLY NOT BE POSSIBLE TO DO THAT. THE -- BUT THAT COULD BE DONE IN TWO STEPS. YOU COULD AMEND THE CHARTER AND THEN DO DISTRICTS LATER. ON THE OTHER HAND, ONE OF THE THINGS THAT YOU MAY WANT TO CONSIDER IN DECIDING WHAT KIND OF ELECTION SYSTEM TO SET UP, IS SOMETHING BASED ON THE ACTUAL CENSUS DATA. IN OTHER WORDS UNTIL WE SEE THE REAL CENSUS DATA FOR THE YEAR 2000, WE WON'T REALLY KNOW HOW MANY DISTRICTS ARE NECESSARY, FOR EXAMPLE, FOR DRAW MINORITY/JARRETT DISTRICTS OR -- WE WON'T REALLY KNOW THE -- MINORITY/MAJORITY DISTRICTS. THE CITY HAS CHANGED DRASTICALLY SINCE THE 1990 DATA. SO THAT'S BASICALLY IT.

>>MAYOR WATSON: WALK ME THROUGH THE PROPOSAL -- ARE YOU SUGGESTING THAT THERE IS NO WAY TO HAVE AN ELECTION IN MAY PRACTICALLY WHERE YOU HAVE ALREADY GOT "LINES POTENTIALLY DRAWN". LET ME FINISH THE THOUGHT PROCESS, BECAUSE I JUST WANT TO SAY IT BACK TO YOU, AND BY -- YOU NEED TO BE IN A SITUATION, IF YOU ARE GOING TO SUBMIT A CHANGE, BY AT LEAST SEPTEMBER?

>> SEPTEMBER OF 2001, RIGHT.

>> [INAUDIBLE].

>> IF WE SUBMIT IT BY SEPTEMBER 30TH, 2001, WE WOULD BE CUTTING IT DOWN TO THE WIRE. IF JUSTICE TOOK ITS TWO STATUTORILY PERMISSIBLE 60 DAY PERIOD, I HAVE NEVER KNOWN THEM NOT TO, THEN THAT WOULD GIVE US ABOUT A 20-DAY WINDOW OF OPPORTUNITY FOR ANY OTHER EVENTUALITY TO HAVE IT IN PLACE BARELY BY THE FILING, BY THE OPENING OF FILING FOR THE MAY ELECTION IN 2002. TYPICALLY, JUSTICE WILL ASK FOR MORE INFORMATION, WHICH TOTALS ITS TIME PERIOD, TYPICALLY THEY ASK FOR A LOT, WHICH TAKES A COUPLE OF WEEKS TOGETHER. MANAGING THAT, WE WOULD HAVE A 20 --20 DAYS FOR ANY POSSIBLE ERROR.

>>MAYOR WATSON: SO BACK UP WITH ME THEN.

>> OKAY.

>>MAYOR WATSON: SO THAT ANYBODY IS WATCHING THIS UNDERSTANDS WHAT NEEDS TO GO INTO THE EQUATION ON MAKING THIS DECISION, IS WITHOUT QUESTION THAT ONE OF THE THINGS THAT NEEDS TO GO INTO THE MAKING OF THIS DECISION IS THAT IF THERE IS A CHANGE IN THE WAY THE GOVERNING BODY OF THE CITY OF AUSTIN IS SELECTED BECAUSE WE ARE SUBJECT TO THE VOTING RIGHTS ACT, IT MUST BE SUBMITTED AND APPROVED BY THE DEPARTMENT OF JUSTICE OF THE UNITED STATES.

>> YES, SIR.

>>MAYOR WATSON: ALL RIGHT. SO WE START WITH WHAT YOUR BEST ADVICE IS, IS THAT THE FIRST PART OF SEPTEMBER IS THE LATEST DATE WE COULD FUNCTIONALLY AND PRACTICALLY, POSSIBLY GET BY WITH, IF YOU WANTED TO IMPACT THE NEXT ELECTION OF THE GOVERNING BODY OF THE CITY OF AUSTIN.

>> THEORETICALLY THE END OF SEPTEMBER, BUT WE WOULD BE -- WE WOULD --.

>>MAYOR WATSON: I UNDERSTAND.

>> RAZOR THIN.

>>MAYOR WATSON: SURE. IF WE BACK UP FROM THERE, THEN WE START GETTING INTO A VARIETY OF QUESTIONS THAT WE MIGHT WANT TO PLAY OUT. ONE OF WHICH IS DO -- WHEN WILL THE CENSUS DATA WILL BE AVAILABLE SO THAT DISTRICTS COULD BE DRAWN THAT THEN COULD BE SUBMITTED. AND WHAT WE BELIEVE IS THAT THE EARLIEST THAT MIGHT OCCUR IS APRIL THE 2001.

>> IT'S OWE WOL, THEY ARE SUPPOSED TO DO IT BY APRIL. IT COULD OCCUR EARLIER. EVEN IF IT OCCURRED, THOUGH, IN JANUARY OF 2001, LET'S SAY THAT THEY HAD IT -- THE DAY AFTER NEW YEAR'S. TO BACK UP FROM THE MAY 5TH ELECTION, T LAST DATE TO CALL THE ELECTION IS MARCH THE 21ST. THE PRACTICAL DEADLINE TO KNOW WHAT YOU WANTED TO PIT ON THE BALLOT IN ORDER TO BE ABLE TO PREPARE ALL OF THE NECESSARY PAPERWORK WOULD BE MID FEBRUARY. THAT GIVES YOU SIX BKS, ASSUMING THAT THEY HAD IT JANUARY 2ND, THAT WOULD GIVE YOU SIX WEEKS TO DO ALL OF THE NECESSARY THINGS. IT WOULD BE DIFFERENT FOR THE DEMOGRAPHERS TO EVEN RUN THE BASIC COMPUTER PROGRAMS IN THAT AMOUNT OF TIME, MUCH LESS TO THEN GO THROUGH THE POLITICAL CONSIDERATIONS THAT WOULD BE NECESSARY.

>>MAYOR WATSON: ALL RIGHT. WELL THEN LET'S TALK ABOUT THE AUGUST ELECTION DATE.

>> YES, SIR.

>> IF -- BECAUSE WHAT I HEAR YOU SAYING ON THE MAY ELECTION DATE IS THE COUNCIL IS FACED WITH -- IF YOU HAVE AN ELECTION AT THAT POINT IN TIME, THAT WOULD GIVE YOU SUFFICIENT TIME TO GET THINGS SUBMITTED TO THE DEPARTMENT OF JUSTICE WELL IN ADVANCE.

>> YES, SIR.

>> BUT IT CREATES SOME DIFFICULTY IN THAT WE MAY BE MAKING A DECISION TO HAVE AN ELECTION WHERE -- WHERE -- IT MAY THAT THE DECISION IS MADE THAT YOU DON'T HAVE THOSE LINES DRAWN. BUT IT PROBABLY -- IT MOST LIKELY PRECLUDES THE ABILITY FOR US TO MAKE THAT DECISION WHETHER WE ARE GOING TO HAVE LINES DRAWN THAT WE SUBMIT LINES TO THE VOTERS. THAT MAY BE SOMETHING THAT WE JUST HAVE TO DECIDE AT SOME POINT, BUT I WANT TO MAKE SURE WE HAVE TALKED IT ALL THE WAY THROUGH. ANOTHER POSSIBILITY WOULD BE AUGUST, YOU COULD HAVE AN ELECTION IN AUGUST. PLAY WITH ME THERE THE PRACTICALS ON WHETHER YOU COULD HAVE LINES DRAWN, HOW IT WOULD PLAY TO SUBMITTING IT TO THE DEPARTMENT OF JUSTICE.

>> I THINK IT WOULD BE PLENTY OF TIME TO DO I BY AUGUST.

>>MAYOR WATSON: YOU MEAN BY THAT HAVE LINES DRAWN.

>> TO HAVE LINES DRAWN. THE LAST DATE TO CALL AN ELECTION FOR THE AUGUST DATE OF 2001 IS JUNE THE 27TH OF 2001. SO THE PRACTICAL DEADLINE TO KNOW WHAT YOU WOULD WANT TO DO SO THAT WE COULD PREPARE THE NECESSARY MATERIALS, IN OTHER WORDS WE ARE GOING TO HAVE TO ACTUALLY DRAFT THE CHARTER LANGUAGE, WHICH IS -- THEN MAKE SURE THAT YOU ARE HAPPY WITH THAT. WE ARE GOING TO HAVE TO DRAFT THE BALLOT PROPOSITION. SO I'M LEAVING US ABOUT A MONTH -- ABOUT THREE WEEKS TO DO THAT. PUTS US IN MID MAY OF 2001. IF YOU GOT THE CENSUS DATA, AS LATE AS APRIL, THAT WOULD BE -- OF 2001, THAT WOULD BE TIGHT, BUT DOABLE. I'M KIND OF COUNTING ON THE CENSUS DATA BECOMING AVAILABLE BEFORE APRIL THE FIRST. IF THE CENSUS WAITS TO THE VERY LAST SECOND, EVEN AUGUST BECOMES VERY TIGHT. BUT THE DEMOGRAPHERS INDICATE TO ME THAT THEY ARE KIND OF EXPECTING IT WELL IN ADVANCE OF THE FINAL DATE. SO IF -- IF ALL OF THAT OCCURS, THEN WE ARE GOING FOR AUGUST. ON THE OTHER HAND IN THE CENSUS DATA IS VERY LATE, THEN EVEN AUGUST BECOMES QUITE PROBLEMATIC.

>>MAYOR WATSON: ALL RIGHT. WHAT -- IT STRIKES ME THAT ONE OF THE THINGS THAT YOU ARE SAYING IS THAT -- IF COUNCIL THINKS IT MAY WANT TO WAIT AND SEE WHAT SORT OF CENSUS DATA IS AVAILABLE, CERTAINLY NOVEMBER IS NOT AN OPTION.

>> CERTAINLY.

>>MAYOR WATSON: THAT HAVING SOME CENSUS DATA AVAILABLE, EVEN IF IT'S THE FIRST PART OF APRIL, ALTHOUGH YOU MAY NOT HAVE LINES, IT WOULD AT LEAST PROVIDE SOME CENSUS DATA BY WHICH VOTERS COULD MAKE A DECISION IN MAY IF THERE WERE AN ELECTION IN MAY. BY THAT I MEAN THEY WOULD -- THERE WOULD BE -- THOSE THAT WERE INTERESTED WOULD AT LEAST KNOW WHAT DEMOGRAPHICS SHOWED, WHAT THE CENSUS DATA IS, IF WE GET IT AS LATE AS APRIL. BUT IT IS, IN ALL LIKELIHOOD, GOING TO BE EXTRAORDINARILY DIFFICULT FOR US TO BE ABLE TO -- IF WE HAVE AN ELECTION IN MAY -- TO SUBMIT IT BASED UPON LINES.

>> ALMOST IMPOSSIBLE.

>>MAYOR WATSON: BUT WE PUT OURSELVES IN ANOTHER BIND IF WE WAIT UNTIL AUGUST. AND THAT WOULD BE AT LEAST -- YOU STILL HAVE SOME DIFFICULTY AND IT RUNS YOU INTO SOME DIFFICULTY WITH THE DEPARTMENT OF JUSTICE APPROVAL.

>> WELL, IF -- IF THE ELECTION WERE SUBMITTED IN AUGUST, PRESUMABLY WE WOULD KNOW EVERYTHING WE NEEDED TO KNOW TO MAKE THE SUBMISSION AT THE TIME OF THE ELECTION. WE WOULDN'T HAVE TO WAIT AND GET THE ELECTION -- AT THE TIME THE ELECTION WAS CALLED EVEN, WE COULD MAKE THE SUBMISSION.

>>MAYOR WATSON: SO IF WE ARE GOING TO --.

>> WE WOULD BE IN FAIRLY GOOD SHAPE FOR THE JUSTICE DEPARTMENT SUBMISSION WITH THE AUGUST ELECTION.

>>MAYOR WATSON: COUNCIL, I WILL LET ANYBODY ELSE ASK ANY OTHER QUESTIONS OR MAKE ANY COMMENTS. ONE OF THE THINGS THAT I THINK AT LEAST, MY CURRENT THINKING, IS THAT SINCE YOU CAN ONLY AMEND THE CHARTER ONCE EVERY TWO YEARS AND WE HAVE BEEN LOOKING AT THE CON ACCEPT OF SINGLE MEMBER DISTRICTS NOW FOR SOME TIME, FRANKLY I THINK THAT TO PUT IT ON THE BALLOT, EVEN IF WE WERE TO SAY WE WERE GOING TO PUT IT ON THE BALLOT TODAY FOR THE NOVEMBER ELECTION, PROBABLY PREVENTS US FROM PROVIDING SOME INFORMATION TO THE VOTERS WHEN WE TALK ABOUT THE CHANGE IN GOVERNMENT THAT WE WANT TO DO. PLUS THERE'S AT LEAST A PART OF ME THAT KIND OF INSTINCTIVELY THINKS IF YOU ARE TALKING ABOUT FUNDAMENTALLY OR ASKING THE VOTERS TO LOOK AT FUNDAMENTALLY CHANGING THE WAY THEY PICK THE LEADERSHIP OF THEIR GOVERNMENT, THAT MIGHT BETTER BE SERVED ON A BALLOT THAT ISN'T COMBINED WITH EVERYTHING FROM A PRESIDENTIAL ELECTION TO VOTES ON LIGHT RAIL. AND SINCE YOU CAN ONLY AMEND IT ONCE EVERY TWO YEARS, THERE MAY BE OTHER ITEMS THAT WE WISH TO HAVE -- I WILL JUST GIVE ONE EXAMPLE, PERHAPS CAMPAIGN FINANCE REFORM WOULD BE ONE OF THE THINGS THAT WE WOULD WANT TO HAVE AT THE SAME TIME AND I DON'T THINK WE ARE FRANKLY IN A POSITION TO PUT THAT FORWARD. SO ULTIMATELY I THINK MY RECOMMEND DATING IS GOING TO BE THAT WE NOT HAVE A NOVEMBER ELECTION ON THE CHARTER. BUT WE OUGHT TO -- YES?

>> ONE THING THAT I MIGHT POINT OUT. [ONE MOMENT PLEASE FOR CHANGE IN CAPTIONERS] J

>> ... RAZOR THIN TIMING SITUATION WE GET IN WITH ANY OF THE OPTIONS TRYING TO IMPLEMENT IT BY 2002. IT WOULD ALSO MEAN THAT YOU COULD HAVE A CHARTER AMENDMENT ELECTION ON SOME OTHER ISSUE IN THE MEANTIME, AND -- AND THE TWO YEARS WOULD BE -- WOULD PASS BEFORE YOU IMPLEMENTED IT. BUT THOSE ARE CONSIDERATIONS. I'M JUST SAYING THAT IF THE GOAL IS MAY 4TH, 2002, WE'RE IN TIGHT TIME FRAMES NO MATTER WHAT OPTION WE CHOOSE, BUT THAT'S AN ARTIFICIAL DEADLINE, BUT IT'S ONE THAT YOU MAY CHOOSE TO GO WITH. ANOTHER THING IS BEYOND BEING ABLE TO SUBMIT DISTRICTS, ANOTHER ADVANTAGE TO HAVING THE CENSUS DATA IS THAT IN YOUR DELIBERATIONS ABOUT WHAT OF AN ELECTION SYSTEM TO CHOOSE, IT WILL BE HELPFUL TO YOU TO HAVE THE CENSUS DATA BECAUSE THEN YOU WILL KNOW NOT SPECK LA ACTIVELY BUT REALLY WHAT THE DEMOGRAPHIC AND MAKE JUNE OF THE CITY IS.

>>MAYOR WATSON: AND THAT'S PART OF WHAT I WAS SUGGESTING. EVEN IF YOU DON'T HAVE LINES, IF YOU HAD THE INFORMATION, THOSE WHO ARE INTERESTED WOULD BE ABLE TO LOOK AT THOSE NUMBERS AND HAVE SOME FEEL FOR THE WAY THINGS WOULD HAVE TO WORK IN ORDER TO MEET CERTAIN GOALS.

>> FOR EXAMPLE, THE CHOICE WHETHER TO HAVE EIGHT DISTRICTS, TEN DISTRICTS OR 12 DISTRICTS WILL REALLY DEPEND ON THOSE NUMBERS AND AT THIS POINT IT'S PURE SPECULATION.

>>MAYOR WATSON: VERY GOOD. COUNCILMEMBER WYNN, THEN COUNCILMEMBER THOMAS.

>>WYNN: MR. STEINER, I BELIEVE I REMEMBER SEVERAL OTHER TEXAS CITIES GOING TO SINGLE-MEMBER DISTRICTS AT SOME POINT OVER THE LAST DECADES, BUT I SUSPECT THEY WERE UNDER JUST DIFFERENT CIRCUMSTANCES. I BELIEVE DALLAS WAS A JUSTICE DEPARTMENT DRIVEN PLAN.

>> I BELIEVE ALMOST ALL OF THE THEM WERE LITIGATION DRIVEN.

>>WYNN: OKAY. SO WHAT YOU ARE SAYING IS THERE IS A SCENARIO WHEREBY ONCE WE HAVE CENSUS -- THERE'S A SCENARIO WHEREBY THE VOTERS PERHAPS VOTE ON WHETHER OR NOT TO GO TO SINGLE-MEMBER DISTRICTS WITHOUT ACTUALLY SEEING THE DISTRICTS.

>> YES, SIR.

>>WYNN: BUT WHAT YOU ARE SUGGESTING IS CENSUS DATA WOULD HELP THE VOTERS UNDERSTAND, YOU KNOW, WHAT WOULD BE REQUIRED IF INDEED MINORITY, MAJORITY DISTRICTS ARE THE INTENT OF THE MAJORITY OF THE VOTERS.

>> YES, SIR. IT WOULD HELP -- EVEN IF DISTRICTS WERE NOT BEING SUBMITTED, IT WOULD ALLOW PEOPLE TO HAVE SOME IDEA ABOUT HOW THE DISTRICTS WOULD NEED TO BE DRAWN. WHEN THEY WERE DRAWN. THE WAY WE WOULD HAVE TO DO THAT, IF THE COUNCIL CHOSE TO SUBMIT -- TO AMEND THE CHARTER AND -- WITHOUT HAVING -- WITHOUT KNOWING WHAT THE DISTRICTS WOULD BE, THE DISTRICTS WOULD PROBABLY NOT BE IN THE CHARTER AMENDMENT ITSELF. WHAT THE CHARTER AMENDMENT WOULD SAY, I WOULD GUESS, WOULD BE SOMETHING LIKE THE AUSTIN -- AUSTIN'S ELECTORAL SYSTEM WILL CONSIST OF A COUNCIL THAT IS MADE UP OF THIS WAY. AND THE CHARTER WOULD MOST LIKELY STATE THE NUMBER OF DISTRICTS IF DISTRICTS WERE A FEATURE OF THE PLAN, THOUGH IN THEORY IT COULD EVEN LEAD THAT TO ORDINANCE, WHICH WOULD BE DONE FROM TIME TO TIME BY THE COUNCIL. BUT THE MORE LIKELY PATTERN WOULD BE IT WOULD STATE SOME NUMBER OF DISTRICTS. AND THEN IT WOULD SAY THAT THE COUNCIL OR SOME OTHER BODY WOULD DRAW THOSE DISTRICTS UP FROM TIME TO TIME. AND THEN WHAT WOULD -- IF WE HAD THE DATA IN ORDER TO SUBMIT DISTRICTS AT THE SAME TIME, WHAT YOU WOULD PROBABLY DO IS YOU WOULD AMEND THE CHARTER AND AT THAT TIME YOU WOULD PASS AN ORDINANCE CREATING THE DISTRICTS. AND WITH THE EFFECTIVE DATE OF THE ORDINANCE BEING THE EFFECTIVE DATE OF THE CHARTER AMENDMENT. SO THAT THEY WOULD BOTH COME INTO EFFECT SIMULTANEOUSLY. IF YOU DIDN'T KNOW THE DISTRICTS, THEN WHAT YOU WOULD DO IS JUST SUBMIT TO THE VOTERS THAT CHARTER AMENDMENT THAT WOULD SAY THE ELECTRIC TORE AL SYSTEM OF THE CITY WILL LOOK LIKE THIS AND WHEN YOU HAVE THE NECESSARY DATA YOU WOULD THEN DRAW THE DISTRICTS. THAT WOULD REQUIRE A TWO-STEP JUSTICE DEPARTMENT SUBMISSION. ONE SUBMISSION FOR THE CHANGE IN THE ELECTORAL SYSTEM AND A SECOND SUBMISSION FOR THE ACTUAL DRAWING OF THE DISTRICTS. IF WE HAVE THE DISTRICTS AT THE SAME TIME, WE COULD DO IT IN ONE PACKAGE. BUT -- BUT IN ORDER TO IMPLEMENT BY 2002, THE ABSOLUTE FINAL PACKAGE, INCLUDING THE DISTRICTS, WOULD HAVE TO BE SUBMITTED NO LATER THAN SEPTEMBER OF 2001, AND AS I SAY, THAT'S NOT GIVING OURSELVES MUCH TIME FOR ANY UNEXPECTED EVENT YOU AT.

>>MAYOR WATSON: COUNCILMEMBER THOMAS.

>>THOMAS: FIRST OF ALL MY QUESTION IS ARE WE DRIVEN BY THE JUSTICE DEPARTMENT TO GO INTO THIS CHARTER AND I HOPE THAT WE SHOULD NOT MAKE A DECISION WITHOUT THE CENSUS DATA. AND HOW LONG DO YOU THINK IT WOULD TAKE US TO ACTUALLY COMPLETELY INFORM THE VOTERS PRIOR TO THE BALLOT?

>> WELL, THOSE ARE GOOD QUESTIONS. THE FIRST QUESTION, I BELIEVE, WAS ARE WE REQUIRED TO MAKE THIS CHANGE. THE ANSWER IS NO, SIR, WE ARE NOT. I BELIEVE THAT THE CITY'S ELECTION SYSTEM IS LEGAL AND COMPLIANT WITH THE VOTER RIGHTS ACT AS IS, BUT IT WOULD BE A POLICY CHOICE BY THE COUNCIL TO MAKE THAT CHANGE, WHICH IS, OF COURSE, WITHIN YOUR PURVIEW. THE SECOND QUESTION I BELIEVE IS -- WAS HOW LONG WOULD IT TAKE TO INFORM THE VOTERS OF THIS, AND THAT'S A -- I WOULD GUESS THAT THE COUNCIL WILL WANT TO HAVE SOME NUMBER OF PUBLIC HEARINGS, ET CETERA, AND PUBLICIZE THE MATTER, WHICH OF COURSE IS SOMETHING ELSE THAT YOU NEED TO BUILD INTO THE TIME LINE. AND WHICH ARGUES FOR A LATER RATHER THAN AN EARLIER CHOICE OF DATES. WAS THERE ANOTHER QUESTION THAT I --.

>>THOMAS: NO. I JUST SAID MAKE SURE THAT WE HAVE THIS CENSUS DATA BEFORE WE DO ANYTHING.

>> THAT WOULD PROBABLY, YES, BE A WISE CHOICE.

>>MAYOR WATSON: COUNCILMEMBER ALVAREZ.

>>ALVAREZ: YES. YOU MENTIONED THAT IT WOULD PROBABLY TAKE ABOUT THREE WEEKS TO DRAFT ANY KIND OF CHARTER LANGUAGE AND THE BALLOT PROPOSITION, AND IS THAT SOME WORK -- I MEAN THAT WORK IS NOT -- INITIATING THAT WORK IS NOT CONTINGENT ON US HAVING A MAP, BECAUSE I ASSUME THE LANGUAGE WOULD BE GENERAL IN NATURE AND NOT -- LIKE YOU WERE SAYING, NOT SPECIFIC TO ANY CONFIGURATION OF DISTRICTS.

>> I'VE ALREADY BEEN WORKING ON IT, BUT I NEED -- THERE ARE SO MANY -- IT'S NOT JUST TOUCHING THE CHARTER IN ONE PLACE. > > > > O TOUCH THE CHARTER IN LOTS OF PLACES TO DO THIS. AND THERE ARE LOTS OF DECISION POINTS THAT WOULD NEED TO BE DECIDED BY COUNCIL BEFORE I COULD REALLY FINALIZE IT. I WOULD IMAGINE TOO THAT COUNCIL WOULD WANT TO REVIEW THE ACTUAL LANGUAGE AND MAKE SURE THAT IT SUITED YOU ON SOMETHING OF THIS MAGNITUDE. SO I THINK THREE WEEKS FOR DRAFTING, REVIEWING, MAKING SURE EVERYBODY IS HAPPY WITH IT IS A FAIRLY CONSERVATIVE ESTIMATE OF THE AMOUNT OF TIME THAT OUGHT TO BE DEVOTED TO IT. IT'S TRULY A CASE WHERE HASTE WILL MAKE WASTE IF WE'RE NOT ALL ABSOLUTELY SURE ABOUT WHAT WE WANT. ALSO MY EXPERIENCE WITH ORDINANCE DRAFTING AND CHARTER DRAFTING IS SIMILAR IS THAT AS YOU GET INTO IT, YOU REALIZE QUESTIONS THAT YOU DIDN'T REALIZE BEFORE WHEN YOU REALLY START HAVING TO WRITE THAT NEXT SENTENCE, IT ALL OF A SUDDEN OCCURS TO YOU, OH, I NEED TO KNOW THIS. AND, YOU KNOW, IT COULD BE THIS WAY OR THAT WAY AND I HAVE TO COME BACK AND ASK YOU. SO I THINK THAT -- I THINK THAT'S A FAIRLY CONSERVATIVE TIME LINE.

>>ALVAREZ: I GUESS WHAT I'M SAYING, AND IT SOUNDS LIKE YOU ARE ALREADY STARTING TO LOOK AT WHAT ARE SOME OF THE CHANGES THAT MIGHT NEED TO BE DONE, BUT DO WE START MAKING THOSE CHANGES OR LOOKING AT WHAT WOULD HAVE TO BE CHAKD NOW AND NOT WAIT UNTIL WE'RE UP AGAINSTST A DEADLINE.

>> I'M DOING THAT NOW. IN ADDITION, I'M NOT SURE WHETHER THE COUNCIL -- THE COUNCIL, OF COURSE, HAD A CHARTER REVISION COMMITTEE WHICH SUBMITTED A REPORT TO THE COUNCIL. I'M NOT SURE UNTIL YOU TELL ME WHICH FEATURES OF THAT REPORT YOU WISH TO ADOPT, WHICH ONES YOU DON'T WISH TO ADOPT, SOME OF THOSE ARE SEPARATELY FAIRLY COMPLEX DRAFTING CHALLENGES. FOR EXAMPLE, THE CREATION OF A CHARTER REVISION -- OF A REDISTRICTING BOARD THAT WOULD BE SEPARATE FROM A CHARTER, THE IMPLEMENTATION OF AN INSTANT RUNOFF PROVISION, WHICH WOULD BE UNIQUE IN TEXAS, AND SOME OTHER THINGS LIKE THAT WHICH ARE ALSO THINGS THAT EITHER WOULD HAVE TO BE -- WOULD HAVE TO BE THOUGHT OUT. AND LANGUAGE WRITTEN.

>>ALVAREZ: JUST ONE MORE QUESTION. AND IT HAS TO DO MORE WITH -- I MEAN AGAIN, I GUESS GENERALLY I DO AGREE THAT IT WOULD BE GOOD TO HAVE THAT CENSUS DATA TO MAKE A BETTER DECISION IN TERMS OF WHAT THE DISTRICTS MIGHT LOOK LIKE, BUT MY -- YOU ALSO MENTIONED THAT IF -- POSSIBLY IF WE'RE DOING AN ELECTION LET'S SAY IN AUGUST AND THE CITY KNOWS WHAT THE DISTRICTS MIGHT LOOK LIKE IN JUNE OR MAY, THAT WE MIGHT PASS AN ORDINANCE SO THAT WHEN THE CHARTER AMENDMENT -- IF IT WERE TO PASS, THEN, YOU KNOW, WE HAVE SOMETHING IN PLACE ALREADY THAT ALLOWS THOSE DISTRICTS TO HAVE BEEN CREATED OR DEFINED. AND WHAT I'M WONDERING IS I GUESS AT THAT POINT, YOU KNOW, WE WOULD NOT BE IN COMPLIANCE, I GUESS, WITH THE CHARTER IF INDEED IT CHANGES, SO BEFORE THE CHARTER -- BEFORE THE CHARTER CHANGES, WOULD WE HAVE TO DECIDE WHAT THE TRANSITION WOULD LOOK LIKE OR IS THAT SOMETHING WE DECIDE AFTER THE CHARTER AMEMENT PASSES, IF IT PASSES?

>> IF I UNDERSTAND THE QUESTION, IF YOU -- THERE ARE CERTAIN ORDINANCES THAT WOULD HAVE -- IF THE CHARTER CHANGES, THERE WILL BE ORDINANCES THAT WILL HAVE TO BE CHANGED TO IMPLEMENT THE CHARTER CHANGE. ONE OF THE OPTIONS IS TO PASS THOSE ORDINANCES IN ADVANCE OF THE CHARTER CHANGE AND JUST MAKE THEIR EFFECTIVE DATE THE DATE OF THE CHANGE IN THE CHARTER. THAT WAY IN THE CHANGE IN THE CHARTER NEVER HAPPENS, THE ORDINANCES NEVER BECOME EFFECTIVE. IF THE CHANGE IN THE CHARTER DOES HAPPEN, THEN THE ORDINANCES BECOME EFFECTIVE. THIS IS A TYPICAL TOOL USED BY THE LEGISLATURE. THEY OFTEN PASS ANTICIPATORY ORDINANCES THAT BECOME -- I MEAN NOT ORDINANCES, STATUTES THAT BECOME EFFECTIVE DEPENDING ON THE PASSAGE OF A CONSTITUTIONAL AMENDMENT. SO I THINK WE COULD USE A SIMILAR TOOL TO MAKE ORDINANCES AND THE CHARTER COINCIDE WITH RESPECT TO THOSE NEEDS. DOES THAT ANSWER YOUR QUESTION?

>>ALVAREZ: WELL, MY QUESTION IS, OKAY, LET'S SAY HYPOTHETICALLY WE GET TO THE POINT WHERE THE CHARTER AMENDMENT PASSES AND WE HAVE PASSED ALL THE ORDINANCES WE NEED TO BE IN COMPLIANCE WITH THE CHARTER, BUT THEN WE'RE STILL IN AN AT-LARGE SITUATION, SO THEN DO WE HAVE TO DEFINE THE TRANSITION IN THE CHARTER ALSO?

>> I THINK -- WELL, YES. THE ANSWER IS YES. AND I THINK THAT IF YOU -- MY GUESS IS THAT GOING TO ANY FORM OF GOVERNMENT THAT WILL INCLUDE AS A FEATURE SINGLE-MEMBER DISTRICTS, WHETHER THAT BE PURE SINGLE-MEMBER DISTRICTS OR A MIXED SYSTEM, YOU ARE GOING TO NECESSARILY BE INCREASING THE NUMBER OF COUNCILMEMBERS. I DON'T KNOW WHAT NUMBER IT WILL BE, BUT MY GUESS IS IT WON'T BE SEVEN. IN WHICH CASE IT SEEMS TO ME ALMOST UNWORKABLE TO DO ANYTHING OTHER THAN REELECT THE ENTIRE CHARTER -- I MEAN THE ENTIRE COUNCIL THE FIRST TIME THAT THE NEW ELECTORAL SYSTEM IS IMPLEMENTED, WHICH, FOR EXAMPLE, IS WE WERE TO IMPLEMENT IT IN TIME FOR THE MAY 4TH, 2002 ELECTION, THAT WOULD PROBABLY MEAN THAT YOUR TERM, FOR EXAMPLE, WOULD BE CUT SHORT A YEAR SO THAT A NEW COUNCIL WOULD BE ELECTED ALL AT ONCE AND THEN THEIR TERMS WOULD BE STAGGERED BY SOME MECHANISM. THE MECHANISM FOR STAGGERING THE TERMS OF THE NEW COUNCIL COULD EITHER BE SET IN THE CHARTER OR IT COULD BE LEFT, FOR EXAMPLE, TO DRAWING OF LOTS AFTER YOU TAKE OFFICE. SO THERE WOULD BE OPTIONS WITH RESPECT TO HOW TO DO THE TRANSITION. BUT MY GUESS IS THAT THE FIRST TIME YOU GO TO A NEW COUNCIL, YOU ARE GOING TO HAVE TO REELECT THE WHOLE COUNCIL.

>>ALVAVAREZ: OKAY. THANK YOU.

>>MAYOR WATSON: ANY OTHER COMMENTS? MR. STEINER -- YES, COUNCILMEMBER SLUSHER.

>>SLUSHER: YES, I HAVE PROBABLY COMMENTS RATHER THAN QUESTIONS. I JUST WANTED TO SAY THAT I AGREE WITH YOUR COMMENTS ABOUT THE ELECTION DATE AND THAT -- AND WITH COUNCILMEMBER THOMAS ABOUT THE PRUDENCE OF HAVING THE CENSUS DATA BEFORE WE MAKE THIS BIG A CHANGE. I THINK WHAT WE'RE TALKING ABOUT HERE IS CHANGING THE FORM OF GOVERNMENT OF THE CITY OF AUSTIN AND WE'RE TALKING ABOUT THE CITY CHARTER OF THE CITY OF AUSTIN. I DON'T THINK THIS IS ANYTHING WE NEED TO RUSH INTO IN ANY WAY. AND AS WE'VE HEARD, WE CAN STILL -- GET TO THE 2000 ELECTION WITH THE NEW SYSTEM WITHOUT RUSHING INTO A NOVEMBER ELECTION THIS YEAR. AND WHEN YOU HAVE THE -- AS I SAID, WE'RE TALKING ABOUT THE WAWAY T CITY OF AUSTIN IS GOVERNED AND POSSIBLY OTHER CHARTER AMENDMENTS ABOUT HOW WE'RE GOVERNED BESIDES JUST THE VERY IMPORTANT FORM OF GOVERNMENT THAT THIS WOULD BE AN ELECTION ON, THAT I THINK IT REALLY DESERVES INTENSE ATTENTION, INTENSE SCRUTINY AND I DON'T THINK THAT IS BEST PROVIDED WHILE WE'RE LOOKING AT PRESIDENTIAL ELECTION, THE CONGRESSIONAL ELECTIONS, LIGHT RAIL ELECTIONS, STATE LEGISLATIVE ELECTIONS. SO I THINK FOR ALL THOSE REASONS IT'S PRUDENT TO DO THIS LATER.

>>MAYOR WATSON: ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHT. THANK YOU VERY MUCH, MR. STEINER. DO YOU HAVE ANYTHING YOU WANT TO ADD?

>> NO, SIR.

>>MAYOR WATSON: GREAT. COUNCIL, WHAT I WOULD SUGGEST WE DO NOW SO THAT WE HAVE A MORE EFFICIENT USE OF OUR TIME IS WE HAVE TWO OPTIONS, ONE WOULD BE TO GO INTO EXECUTIVE SESSION, WHICH STRIKES ME AS NOT THE BEST WAY TO DO IT BECAUSE WHAT WE COULD DO IS WAIT AND DO THAT AT THE LUNCH BREAK, AND THE SECOND OPTION IS TO GO TO THE CONSENT AGENDA AND THEN START TAKING UP ANY DISCUSSION ITEMS AND MOVE TOWARD A LUNCH BREAK AT EXECUTIVE SESSION AROUND 11:30 OR SO. WHAT I'M GOING TO DO IS CALL UP THE CONSENT AGENDA. FIRST I'M GOING TO READ THE ITEMS THAT HAVE BEEN PULLED. ITEM 12, 13, 14, 21, 22, 23, 25, 36, 47, 52, 54, 64, 65, AND 78. SO LET ME ASK FIRST, ARE THERE ITEMS THAT CAN BE PUT BACK ON THE CONSENT AGENDA OR ADDITIONAL ITEMS THAT NEED TO BE PULLED? THE CONSENT AGENDA WILL BE, AND I'LL ENTERTAIN A MOTION AFTER THE READING OF THE CONSENT AGENDA, 9 -- COUNCILMEMBER SLUSHER.

>>SLUSHER: I CAN ANSWER THAT QUESTION, JUST -- I WOULD PUT BACK ON NO. 36 AND -- 36 AND 47.

>>MAYOR WATSON: COUNCILMEMBER WYNN, I ALSO INDICATED -- SAW THAT YOU HAD PULLED ITEM 47. CAN THAT GO BACK ON THE CONSENT AGENDA?

>>WYNN: IT CAN. STAFF JUST PRESENTED SOME ANSWERS TO US.

>>MAYOR WATSON: OKAY. COUNCIL, ITEM NO. 73 HAS ONE CHANGE THAT NEEDS TO BE MADE IN THAT ORDINANCE. SO THAT WOULD NOT BE " -- I'LL GO AHEAD AND PULL IT SO WE CAN MAKE THAT ONE CHANGE. IT'S A SMALL CHANGE TO DEAL WITH THE SMALL BUSINESS AND I'LL EXPLAIN THAT IN JUST A SECOND. ANY OTHER ITEMS? ALL RIGHT. HERE'S THE CONSENT AGENDA. I ALSO INDICATED 9, BUT 9 IS ONE OF THE ITEMS THAT WE WILL BE BRIEFED ON IN EXECUTIVE SESSION. HERE'S THE CONSENT AGENDA. 10, WITH THE CHANGES AND CORRECTIONS I READ EARLIER, 11, 15, 16, 17, 18, 19, 20, 24 ON SECOND AND THIRD READING, 26 ON THIRD READING, 27, SECOND AND THIRD READING, 28 SECOND READING, 29 SECOND AND THIRD READING, 30, SECOND AND THIRD READING, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40 WITH THE CHANGES AND CORRECTIONS PREVIOUSLY READ, 41, 42, 43, 44, 45 WITH THE CHANGES AND CORRECTIONS PREVIOUSLY READ AND COUNCILMEMBER GRIFFITH WILL BE SHOWN ABSTAINING ON ITEM NO. 45. 46, 47, 48, 49, 50 ON FIRST READING WITH THE LANGUAGE CHANGES I PREVIOUSLY READ, 51 ON FIRST READING WITH THE LANGUAGE CHANGES. 55, 56, 57, 58, 59, 60, 61, 62, 63, 66, 67, 68, 69, 70, 71, 72, 74, 75, 76 WITH THE CHANGES AND CORRECTIONS, AND 77. ALSO ITEM NO. 108, THESE ARE BOARD AND COMMISSION APPOINTMENTS. LET ME READ THESE INTO THE RECORD. ARTS AND RECREATION SUBCOMMITTEE, LISA MAY. BOND OVERSIGHT COMMITTEE, VINCENT ALDRIDGE, VACANCY. BRACKENRIDGE OVERSIGHT COUNCIL, DR. JAMES BRAND FOR UNINTIRD TERM. CHILD CARE COUNCIL, CLEMTINE CLARK, JOY SIMMONS TO FILL A VACANCY, APPOINTMENT MADE BY COUNCILMEMBER THOMAS. COMMUNITY DEVELOPMENT, ALL OF THESE ARE REAAPPOINTMENTS. BOBBY JOHNSON BY CONSENSUS, CHRISTINA DEULAFUENTES, EMILE I CAN'T LOPEZ PHELPS. CONRAD MASTER REAPPOINTMENT LABOR REPRESENTATIVE BY THE MAYOR. DOWNTOWN COMMISSION, BRUES WALENSIK. CLINT SMALL, UNSPIRD TERM REPRESENTING THE PARKS BOARD BY CONSENSUS. THE ELECTRIC UTILITY COMMISSION, ALL THREE ARE REAPPOINTMENTS. CHUTE FATH, BARRY SARMA. ELECTRICAL BOARD, DAVID BERGOS, REAPPOINTMENT BY COUNCILMEMBER WYNN. RALPH AMERICA IWEATHER, REAPPOINTMENT BY COUNCILMEMBER THOMAS. TIM JOINS, REAPPOINTMENT BY COUNCILMEMBER SLUSHER. SORRY. THAT'S KIND OF A COMBINATION OF SLUSHER AND CONSENSUS. I'M NOT SURE WHY I CAME UP WITH THAT. LEE LEFINGWELL. REAPPOINTMENT. ETHICS, MARK MCCRAY, VACANCY BY COUNCILMEMBER THOMAS. PAUL SALDANA, VACANCY BY COUNCILMEMBER GRFITH. HUMAN RIGHTS COMMISSION, JIMMY BROWN JR., VACANCY BY COUNCILMEMBER THOMAS, LIBRARY COMMISSION, PATRICIA RODRIGUEZ. M.B.E. W.B.E., NELSON LINDER, FILL VACANCY BY CONSENSUS. THE MAYOR'S COMMITTEE FOR PEOPLE WITH DISABILITIES, NANCY CROUTHER. MUSIC COMMISSION, DARYL MORRIS TO FILL A VACANCY BY COUNCILMEMBER THOMAS. PARKS AND RECREATION BOARD, ROSEMARY CASTLE BARRY. RHONDA TAYLOR TO FILL A VACANCY BY COUNCILMEMBER THOMAS. THE PLANNING COMMISSION, DR. STERILING LANDS TO FILL VACANCY BY COUNCILMEMBER THOMAS. RESOURCE MANAGEMENT COMMISSION, CURTIS WILSON, A VACANCY BY COUNCILMEMBER THOMAS. TELECOMMUNICATIONS COMMISSION, LESLIE POOL, REAPPOINTMENT BY COUNCILMEMBER GRIFFITH. THE URBAN RENEWAL BOARD, ALL THREE REAPPOINTMENTS, ALL BY THE MAYOR, CHRISTINA DELUEFENTES, AMELIA LOPEZ PHELPS. WATER AND WASTEWATER DARWIN MECHANICAL KEY. MICHAEL WARNER. VACANCY BY COUNCILMEMBER SLUSHER. COUNCIL, ALSO 109, WHICH IS ON YOUR ADDENDUM, WILL SERVE AS PART OF THE CONSENT AGENDA. I'LL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA. COUNCILMEMBER ALVAREZ.

>>ALVAREZ: I THINK ORIGINALLY YOU HAD MENTIONED 36 AND 47 AS BEING PULLED AND THEN I THINK YOU HAD THEM AS BEING ON THE CONSENT AGENDA.

>>SLUSHER: I PUT THEM BACK ON.

>>MAYOR WATSON: HE PUT THEM BACK ON. DO YOU WANT THEM OFF?

>>ALVAREZ: NO, CONSISTENCY. THEN YOU ALSO JUMPED FROM 51 TO 55 SO I WASN'T SURE IF 53 --.

>>MAYOR WATSON: 52, 53 I INDICATED HAD BEEN POSTPONED INDEFINITELY AND 54 HAS BEEN PULLED. 52 AND 54 HAVE BEEN PULLED. COUNCILMEMBER THOMAS MOVES APPROVAL OF THE CONSENT AGENDA. IS THERE A SECOND?

>>WYNN: SECOND.

>>MAYOR WAWATSON SECONDED BY COUNCILMEMBER WYNN. YES, COUNCILMEMBER SLUSHER.

>>SLUSHER: I WOULD [INAUDIBLE - NO MIC ON] I WOULD ADD 14 BACK.

>>MAYOR WATSON: COUNCILMEMBER THOMAS, DO YOU CONSIDER THAT A FRIENDLY AMENDMENT?

>>THOMAS: YES.

>>MAYOR WATSON: COUNCILMEMBER WYNN, DO YOU CONSIDER THAT A FRIENDLY AMENDMENT?

>>WYNN: YES.

>>SLUSHER: AND I HAD SOME COMMENTS AND I'M SURE I THINK WE'LL STILL ALL BE HAPPY AFTER THAT, BUT I'LL TRY TO KEEP THEM SHORT.

>>MAYOR WATSON: LET ME SEE IF ANYBODY WAWANTSO SPEAK ON CONSENT AGENDA AND THEN I'LL RECOGNIZE YOU. IS THERE ANY OTHER DISCUSSION RIGHT NOW ABOUT COUNCIL? WE HAVE --.

>>ALVAREZ: I HAVE SOMETHING.

>>MAYOR WATSON: OKAY.

>>ALVAREZ: AND THIS IS JUST A GENERAL COMMENT, AGAIN, BEING KIND OF NEW AND WANTING TO HAVE AS MUCH INFORMATION AS POSSIBLE TO EVALUATE THE AGENDA ITEMS, I WAS GOING TO ASK IF STAFF COULD MAKE SURE TO PROVIDE ON THE CONTRACT ITEMS THE SECOND AND THIRD LOW BIDS OR COMPLIANCE PLANS OF THE SECOND AND THIRD BIDS BECAUSE IT'S REAL DIFFICULT TO COMPARE THE APPLICANTS, FOLKS WHO SUBMITTED APPLICATIONS WITHOUT HAVING INFORMATION ON SOME OF THE OTHER BIDS. AND ALSO JUST TO MAKE SURE THAT THE REQUEST FOR COUNCIL ACTION ALSO -- JUST TO MAKE SURE THEY ALWAYS INCLUDE THE BOARD AND COMMISSION ACTIONS, MINUTES, THAT KIND OF STUFF.

>>MAYOR WATSON: WE HAVE TWO PEOPLE SIGNED UP TO SPEAK ON ITEM NO. 69. ITEM NO. 69 IS ON THE CONSENT AGENDA. AS I UNDERSTAND THESE TWO CARDS, JIM WALKER IS ALSO SIGNED UP -- I'M SORRY, 69 AND 70. MR. WALKER, YOU DON'T WISH TO SPEAK, IS THAT RIGHT? YOU JUST WISH TO BE SHOWN IN FAVOR? THAT'S THE WAY WE'LL SHOW YOU. ANYBODY ELSE WISHING TO SPEAK ON THE CONSENT AGENDA AS READ? ANYONE ELSE WISHING TO BE HEARD ON THE CONSENT AGENDA? I'VE GOT YOU. ANYONE ELSE WISHING TO BE HEARD ON THE CONSENT AGENDA? COUNCILMEMBER SLUSHER.

>>SLUSHER: THANK YOU, MAYOR. I JUST WANTED TO MAKE COUPLE OF COMMENTS ON TWO OF MY APPOINTMENTS. WE DON'T USUALLY DO THAT, BUT BOTH OF THEM ARE I THINK UNUSUAL CIRCUMSTANCES. FIRST, I'M REALLY PROUD TO REAPPOINTMENT CHUTE FATH TO THE ELECTRIC UTILITY COMMISSION. SHE HAS BEEN SERVING ON THE UTILITY COMMISSION SINCE 1977. AND THERE IS DIFFERENT OPINIONS ABOUT TERM LIMITS, BUT I WOULD SAY THAT MS. FATH IS ONE OF THE BEST ARGUMENTS AGAINST TERM LIMITS THAT I'VE EVER SEEN. AND SHE JUST DOES A GREAT SERVICE TO THE CITY ON A NUMBER OF FRONTS. AND THEN ANOTHER ONE OF MY APPOINTEES THAT IS ACTUALLY A RE"POINTY ORIGINALLY APPOINTED BY COUNCILMEMBER NOFZIGER BEFORE I WAS HERE AND THAT'S TIM JONES. AND THE REASON I BRING UP TIM, ONE, IS BECAUSE HE'S DONE REALLY A LOT OF POSITIVE WORK FOR THE CITY OF AUSTIN, BUT THE WATER IS CLEANER IN AUSTIN BECAUSE OF TIM JONES. BUT THERE ARE A LOT OF APPOINTEES THAT DO A GREAT JOB FOR THE CITY, BUT NOT TOO MANY OF THEM ARE THE SUBJECT OF SEVERAL DAYS IN A ROW OF FRONT PAGE NEGATIVE STORIES IN THE DAILY PAPER. AND SO I WANTED TO NOTE THAT I AM PROUDLY REAPPOINTING MR. JONES AND I JUST WANTED TO NOTE A COUPLE OF THINGS. FIRST OF ALL, HE MAY HAVE MADE SOME UNFORTUNATE OR UNWISE COMMENTS IN A PHONE CONVERSATION THAT WAS TAPED BY SOMEONE THAT WAS TRYING TO MAKE HIM LOOK BAD, AND THAT'S OF QUESTIONABLE ETHICS IN ITSELF, BUT I CERTAINLY DIDN'T DO THE THINGS THAT I THINK WAS PORTRAYED IN THE DAILY PAPER AND BY THE EDITOR THAT HE DID AND SOME OF THAT HAD TO BE CORRECTED AFTER ONE OF THE OTHER PAPERS IN TOWN POINTED OUT THE INACCURACIES OF THAT. BUT NOT TO GO TOO MUCH INTO THAT, I JUST WANTED TO POINT OUT SOME OF THE POSITIVE ACCOMPLISHMENTS THAT MR. JONES HAS, WHICH INCLUDE BY GOING OUT WITH VIDEO CAMERA AND DURING RAIN STORMS AND OTHER TIMES SHOWING SOME OF THE POLLUTION THAT WE HAVE THEN, IT HAS BEEN CLEANED UP, EVEN RESULTED IN THE ONLY FINE ISSUED BY THE TEXAS NATURAL RESOURCES COMMISSION AGAINST A WATER QUALITY PROTECTION ZONE, WHICH HAPPILY WE DON'T HAVE THOSE ANYMORE AFTER THE CITY'S COURT VICTORY A COUPLE OF WEEKS AGO. MR. JONES ALSO IDENTIFIED THE CRITICAL NATURE OF A TRACT THAT THE CITY THEN WAS ABLE TO OBTAIN AND WILL REMAIN UNDEVELOPED AS PART OF THE AGREEMENT WITH THE BRADLEY INTERESTS A FEW YEARS AGO. HE HAS EVEN WORKED WITH THE TEXAS STATE HIGHWAY DEPARTMENT, ALSO NOW CALLED TXDOT, TO NOT ONLY ON BICYCLE BRIDGE OVER BARTON CREEK TO HELP ALLEVIATE TRAFFIC, WORK ON THE DESIGN WITH THEM, BUT ALSO EVEN GETTING TXDOT TO PUT MONEY AND ATTENTION INTO WATER QUALITY. AND I COULD GO ON WITH A NUMBER OF THINGS, BUT I JUST WANTED TO POINT OUT SINCE HIS REPUTATION I THINK PROBABLY DAMAGED IN THE NEWSPAPER THAT -- TAKE THE OPPORTUNITY WITH THE LIMITED FORUM WE HAVE TO POINT OUT SOME OF THE ACCOMPLISHMENTS AND SOME OF THE THINGS HE'S DONE ON BEHALF OF THE CITY OF AUSTIN AND THAT THE WATER QUALITY IN THE AUSTIN AREA IS CLEANER AS A RESULT OF TIM JONES' SERVICE TO THIS COMMUNITY.

>>MAYOR WATSON: THANK YOU. ANY FURTHER DISCUSSION? MOTION IS MADE AND SECONDED ON THE CONSENT AGENDA. THE VOTE WILL BE ON THE CONSENT AGENDA AS READ. ALL IN FAVOR SAY AYE OPPOSED, SAY NO. MOTION CARRIES WITH THE MAYOR PRO TEM TAERL OFF THE DAIS. COUNCIL, LET'S TAKE UP ITEM NO. 73 QUICKLY. ON ITEM NO. 73, THE REASON IT HAS BEEN PULLED IS FOR A CLARITY PURPOSE, AND WHEN I ACCEPT A MOTION, THE MOTION WOULD INCLUDE THIS AS PART OF THE CLARIFICATION. WE HAVE ONE CUSTOMER CURRENTLY USING THE WASTEWATER METERING METHOD THAT WOULD BE IMPACTED BY THE PROPOSED ORDINANCE BECAUSE THE FLOWS FALL BELOW THE 100 GALLON PER MINUTE CRITERIA THAT'S BEEN PROPOSED. THERE'S BEEN A PROPOSED ARRANGEMENT WORKED OUT WITH THIS ONE SMALL BUSINESS WHERE IT WOULD BE GRANDFATHERED ON THIS ONE SITE ONLY FOR FIVE YEARS RATHER THAN THE TWO YEARS IN THE ORDINANCE. AND MR. LIBBY, HAVE I SAID ANYTHING WRONG ABOUT THAT? ALL RIGHT. SO I'LL ENTERTAIN A MOTION TO APPROVAL ITEM 73 WITH THAT ONE PROVISION ALSO BEING PART OF IT. IS THERE A MOTION?

>>WYNN: SO MOVED.

>>MAYOR WATSON: MOTION TO APPROVE BY COUNCILMEMBER WYNN. SECONDED BY COUNCILMEMBER ALVAREZ. ANY DISCUSSION? ANYONE WISHING TO BE HEARD ON ITEM 73? ANYONE WISHING TO BE HEARD? ANYONE WISHING TO BE HEARD? ALL THOSE INN FOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES ON ITEM 73 WITH THE MAYOR PRO TEM TEMPORARILY OFF THE DAIS. THAT WILL TAKE US BACK TO THE OTHER DISCUSSION ITEMS, AND SO THAT STAFF, IF YOU ARE WATCHING THE WAY WE WILL PROCEED ON THESE ITEMS, ITEMS NO. 13, ITEM NO. 52, ITEM NO. 54, ITEM NO. 64, THEN ITEM NO. 656789 I WILL GO IN THE ORDER THAT THEY HAVE BEEN PULLED. ITEM NO. 13, COUNCILMEMBER SLUSHER.

>>SLUSHER: YES, MAYOR. MR. GATES, ARE YOU THE MAN ON THIS ONE?

>>MAYOR WATSON: MR. GATES.

>> GOOD MORNING, THIS IS TWO MR. RIECK IS ALSO HERE TO ASSIST ME AS RELATED TO CONTRACTS AND FUNDING OF POLICY.

>>SLUSHER: LET'S TRY THE FUNDING AND POLICY. THIS IS FOR SOME SHADES ON THE AIRPORT PARKING GARAGE, AND I JUST WANTED TO MAKE SURE -- WE HAD YOU ACTUALLY ANSWER THE QUESTIONS PRETTY WELL IN WRITING, BUT I WANTED TO MAKE SURE THIS IS THE CASE THAT THESE ARE GOING TO BE OVER THE RENTAL CAR AREA.

>> THAT'S CORRECT.

>>SLUSHER: AND THE AVIATION DEPARTMENT, THE CITY IS NOT PAYING FOR THESE, THAT'S A REVENUE STREAM THATT COMES FROM THE RENTAL CAR COMPANIES.

>> THAT IS CORRECT. THE THIRD FLOOR OF THE GARAGE WAS FINANCED WITH SPECIAL FACILITY REVENUE BONDS. WE STILL HAVE FUNDS AVAILABLE TO PAY FOR THIS PORTION. SOME OF THE RENTAL CARS FEEL THEY ARE IN A DISADVANTAGE BECAUSE SOME HAVE COVERS AND SOME DON'T SO OUR GOAL IS TO TRY TO GET THIS DONE AS SOON AS POSSIBLE. AND THOSE BONDS ARE PAID OFF BY WHAT THEY CALL A CUSTOMER FACILITY CHARGE PAID FOR BY THE CUSUSTOMERS.

>>SLUSHER: SO THAT MONEY WOULDN'T COME TO THE AVIATION DEPARTMENT.

>> RIGHT. IT GOES TO A TRUSTEE WHO PAYS OFF THE BONDS.

>>SLUSHER: FOR THE GARAGE.

>> FOR THE GARAGE.

>>SLUSHER: THAT'S THE QUESTION.

>>MAYOR WATSON: DO YOU MOVE APPROVAL?

>>SLUSHER: YES.

>>MAYOR WATSON: IS THERE A SECOND? SECONDED BY COUNCILMEMBER GRIFFITH. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES WITH THE MAYOR PRO TEM AND COUNCILMEMBER WYNN TEMPORARILY OFF THE DAIS.

>> EXCUSE ME, MAYOR, YOU HAD WITHDRAWN ITEM 12 FOR DISCUSSION AND YOU --.

>>MAYOR WATSON: YES.

>> YOU DON'T READ US --.

>>MAYOR WATSON: WE'RE GOING TO COVER IT IN EXECUTIVE SESSION. IT'S GOIOING TO BE DISCUED IN EXECUTIVE SESSION.

>> AND THEN BROUGHT BACK FOR DISCUSSION AFTERWARDS?

>>MAYOR WATSON: YES. ITEM NO. 52. GARS GARS YES, ITEM NO. 52, I BELIEVE MR. SMITH IS COMING UP. COUNCIL, YOU MAY RECALL WE WERE ASKED TO FIND A WAY TO DEVELOP A PLAN FOR RAINEY STREET. WE WERE FORTUNATE ENOUGH TO BE ABLE TO AMEND THE ROMA CONTNTRACT TO DO THAT AND IT'S BEEN PULLED FOR DISCUSSION. MR. MYTH IS HERE TO ANSWER ANY QUESTIONS.

>>MAYOR WATSON: LET ME ASK THE QUESTION, IT'S MY UNDERSTANDING THERE'S BEEN SOME CHANGE IN THE WAY THAT'S BEEN PLAYED OUT OVER THE LAST COUPLE OF DAYS. IS THERE ANYBODY HERE THAT CAN ADDRESS WHAT THE CURRENT STATUS IS? COUNCIL, YOU WILL REMEMBER THAT WHAT WE HAD TALKED ABOUT BRINGING BACK WAS AN AMENDMENT TO THE CONTRACT THAT WOULD ALLOW US TO OBTAIN SOME INFORMATION THAT WOULD HELP US MAKE SOME LAND USE DECISIONS ON -- ON ITEM NO. 52. I'M LOOKING TO SEE IF THERE IS ANYBODY FROM THE COMMUNITY -- APPARENTLY NOT. I'M NOT SURE THERE IS -- THERE HAS BEEN SOME IDEA THAT WHAT WE COULD DO IS POSTPONE THIS BECAUSE OF A CHANGE IN THE CIRCUMSTANCES. MR. SMITH, DO YOU KNOW ABOUT THE CHANGE IN THE CIRCUMSTANCES? WHAT I'M TRYING TO DO IS BE RESPONSIVE, BUT I NEED TO MAKE SURE WE HAVE CLARITY ON WHAT IS ABOUT TO HAPPEN.

>> NOBODY HAS TALKED TO THE STAFF ABOUT A CHANGE IN CIRCUMSTANCES RELATIVE TO MOVING FORWARD WITH THIS. I DO KNOW THERE'S BEEN DISCUSSIONS WITH VARIOUS COUNCILMEMBERS, BUT THAT'S IT.

>>MAYOR WATSON: WHY DON'T YOU GO CHECK WITH SOME OF THE -- REAL QUICKLY, BEFORE WE TAKE UP ITEM 52. I DON'T WANT TO TAKE AN ACTION THAT MAY CAUSE US TO HAVE TO SPEND MONEY THAT WE OTHERWISE WOULDN'T HAVE TO SPEND AS A CITY. AND I WANT TO MAKE SURE THERE'S CLARITY. SO IF PEOPLE WOULD GET TOGETHER AND MAKE SURE STAFF KNOWS WHAT IS UP, I'LL CALL BACK UP ITEM 52.

>>GARZA: MAYOR, I WANT TO -- I DID GET A CALL FROM BRIDGE IDENTIFY AND I DID NOT GET A CHANCE TO CALL HER BACK. SHE DID TRY TO CONTACT US SO THIS WOULD BE OPPORTUNITY FOR MR. SMITH TO TALK --.

>>MAYOR WATSON: I'VE HAD SEVERAL PEOPLE THIS MORNING TALK TO ME SO WHY DON'T WE SEE IF WE CAN GET THAT FACILITATED BECAUSE THEN WE COULD DECIDE WHETHER OR NOT THE CITY NEEDS TO GO FORWARD ON THAT.

>>GARZA: WE CAN SAVEE MONEY.

>>MAYOR WATSON: ITEM 54, COUNCILMEMBER THOMAS.

>>THOMAS: YES, MAYOR, I WAS JUST -- THE QUESTION -- AND I ALREADY SPOKE WITH THE CHIEF ABOUT THAT, ABOUT WHAT THE PLANS OF FULFILLING THE FULL-TIME CIVILIAN POSITION AND REDEPLOYING THE OFFICERS FOR THE STREET RESPOND UNIT.

>>MAYOR WATSON: SO YOUR QUESTION HAS BEEN ANSWERED?

>>THOMAS: IT'S BEEN ANSWERED.

>>MAYOR WATSON: SO DO YOU MOVE APPROVAL?

>>THOMAS: MAYOR, I MOVE TO APPROVE.

>>MAYOR WATSON: MOTION BY COUNCILMEMBER THOMAS TO APPROVE, SECONDED BY COUNCILMEMBER SLUSHER. ANY DISCUSSION? ANYONE WISHING TO BE HEARD ON ITEM 54? THERE BEING NO FURTHER DISCUSSION, ALL IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES WITH THE MAYOR PRO TEM TEMPORARILY OFFFFHE DAIS. ITEM 64, COUNCILMEMBER SLUSHER. FOR STAFF THAT IS LISTENING, WE'LL DO STAFF, 65, AND THEN PROBABLY COME BACK TO 52, AND THEN AT THAT POINT WE WILL PROBABLY GO INTO EXECUTIVE SESSION.

>>SLUSHER: MAYOR, MY CONCERN, THIS IS A MUCH NEEDED ROAD IMPROVEMENT, GILES LANE NEAR APPLIED MATERIALS, WASTE MANAGEMENT, TWO COMPANIES THAT THE CITY IS PURCHASING RIGHT-OF-WAY FROM TODAY. IT'S A BENEFIT TO EVERYONE, I THINK, BUT ESPECIALLY THE COMPANIES IN THE AREA, AND I WAS CURIOUS AS TO WHY THESE CORPORATIONS WEREN'T WILLING TO DONATE THE RIGHT-OF-WAY FOR THE ROAD IMPROVEMENT.

>>MAYOR WATSON: MR. RIECK.

>> GOOD MORNING, MAYOR AND COUNCIL, PETER RIECK, DIRECTOR OF PUBLIC WORKS AND TRANSPORTATION. COUNCILMEMBER, WE HAVE PARTICULARLY ADDRESSED THIS ISSUE TO APPLIED TERSE. IT WAS THEIR DECISION NOT TO DONATE AND WE HAVE NO WAY OF GOING BEYOND JUST MAKING THIS SIMPLE REQUEST. WE HAVE TO FOLLOW THE NORMAL PROCESS IN THAT CASE. AND SO I CANNOT ANSWER YOUR QUESTION AS TO WHY EITHER OF THOSE TWO COMPANIES CHOOSE NOT TO DONATE THE RIGHT-OF-WAY. THEY DID NOT GIVE US A PARTICULAR REASON.

>>SLUSHER: OKAY. THEN THE CITY DOESN'T HAVE -- IF WE'RE GOING TO DO THE ROAD IMPROVEMENT, WE WOULD JUST BE -- DEPENDING ON THEIR GOOD WILL AND CORPORATE CITIZENSHIP TO DONATE THAT.

>> THAT IS CORRECT. BUT I THINK ON THE -- FROM OUR PERSPECTIVE AND BRIGHT SIDE, AT LEAST WE DIDN'T HAVE TO GO THROUGH CONONDEMNION PROCESS. THEY WORKED WITH US ON THE BASIS OF THE APPRAISALS WHICH IS THE SECOND BEST THING TO HAVE IN ABSENCE OF DONATION.

>>SLUSHER: WELL, I REALLY APPRECIATE YOUR OPTIMISM AND POSITIVE OUTLOOK THERE, MR. RIECK. [LAUGHTER].

>>MAYOR WATSON: WE ALWAYS FIND MR. RIECK TO BE CHEERY.

>>

>>SLHER: HE IS SORT OF BUBBLY.

>>MAYOR WATSON: COUNCILMEMBER GRIFFITH.

>>GRIFFITH: MR. RIECK, APPLIED MATERIALS, ISN'T THAT THE GROUP THAT RECEIVED AN 80% TAX ABATEMENT AT ONE TIME?

>> THAT IS MY UNDERSTANDING.

>>GRIFFITH: HOW LONG AGO WAS THAT? IT WAS WHEN THEY CAME, I REMEMBER THAT PART.

>> YEAH, AND I'M NOT --.

>>GRIFFITH: SEVERAL YEARS.

>> MY UNDERSTANDING IT WAS A TAX ABATEMENT FOR A PERIOD OF SEVEN YEARS. I'M NOT SURE WHETHER THAT SEVEN-YEAR-PERIOD IS ACTUALLY STILL IN EFFECT.

>>GRIFFITH: DO WE NO WHAT THE DOLLAR VALUE OF THAT ABATEMENT OVER THAT SEVEN-YEAR PERIOD?

>>GARZA: DAVID, DO YOU KNOW THE ANSWER TO THAT QUESTION? DAVID IS RIGHT BEHIND YOU, PETER. HE MIGHT KNOW.

>> COUNCILMEMBER, IT'S BEEN SOME TIME SINCE WE DID THAT TAX ABATEMENT AND I'M KIND OF REMEMBERING, BUT IT WAS A SEVEN-YEAR ABATEMENT AT 80%. THE VALUE WOULD BE VERY DIFFICULT TO DETERMINE BECAUSE IT'S SUBMITTED ANNUALLY. THE TAX RATES CHANGE, THE VALUE CHANGES. THE TAX ABATEMENT WAS ON PERSONAL BUSINESS PROPERTY AND REAL PROPERTY. I BELIEVE WHEN WE DID THAT -- GOSH, 1991, WE HAD ESTIMATED AT THE TIME THAT IT WOULD PROBABLY BE ABOUT $12 MILLION.

>>GRIFFITH: $12 MILLION.

>> BUT I WANT TO CAUTION YOU, THAT WAS ONLY AN ESTIMATE AT THE TIME OF THE PROJECTIONS OF THE INVESTMENT AND THE RATE THAT WAS IN EFFECT AT THE TIME. SO THOSE VALUES VARY OVER THE YEARS.

>>GRIFFITH: WELL, THAT MIGHT BE AN IMPORTANT NUMBER TO KNOW IN ADDITION TO THE ESTIMATE. IN LIGHT OF WHAT WE'RE DISCUSSING ABOUT THE ROAD.

>> WE CAN WORK WITH THE BUDGET OFFICE AND TRY TO TRACE THE TOTAL VALUE OF THAT ABATEMENT. I BELIEVE IT WAS ABATEMENT WITH THE CITY AND TRAVIS COUNTY AND MANOR AND ISD.

>>MAYOR TSON: ONE THING I MIGHT POINT OUT, COUNCIL, AT LEAST -- AND I'VE NOT GONE BACK BECAUSE I DIDN'T REALIZE THIS WAS GOING TO BE AN ISSUE, AND ASKED THIS QUESTION OR SOUGHT THIS INFORMATION, YOU MAY REMEMBER THAT PRIOR TO TODAY, THIS ROAD HAS BEEN DISCUSSED BY COUNCIL ON A COUPLE OF OCCASIONS. AND THE NEED TO HAVE THIS ROAD DONE. AND AT LEAST IT WAS SUGGESTED AT ONE OF THOSE TIMES THAT AT THE TIME APPLIED MATERIALS WAS GOING TO THAT SITE AND DECISIONS WERE MADE ABOUT RECRUITING IT TO THE SITE, THERE IS -- THE SUGGESTION HAD BEEN MADE THAT THERE WERE COMMITMENTS MADE THAT WE WOULD IMPROVE THAT ROAD. WHETHER THERE WERE COMMITMENTS MADE ABOUT US PAYING THE RIGHT-OF-WAY, THAT KIND OF THING, I DON'T KNOW THE DETAILS, BUT LET'S MAKE SURE WE DON'T JUMP OUT THERE TOO QUICKLY IF THE CITY BACK ALMOST A DECADE AGO MADE PROMISES, BECAUSE WE WEREN'T HERE AND WE MAY NOT BE REMEMBERING.

>>GRIFFITH: RIGHT. AND I THINK THE ROAD IS NOT IN QUESTION. I THINK WHAT WE'RE TALKING ABOUT IS PERHAPS PARTNERSHIP AND SOME RIGHT-O-OF-WAY ACQUISITION.

>>MAYOR WATSON: ANY OTHER DISCUSSION? COUNCILMEMBER SLUSHER.

>>SLUSHER: I'LL WAIT UNTIL THERE IS A MOTION.

>>MAYOR WATSON: IS THERE A MOTION ON ITEM 64 AND 65? I'LL TAKE THEM AS ONE MOTION.

>>SLUSHER: I'LL MAKE IT SORT OF RELUCTANTLY.

>>MAYOR WATSON: MOTION TO APPROVE BY COUNCILMEMBER SLUSHER. I'LL SECOND THE MOTION. COUNCILMEMBER SLUSHER.

>>SLUSHER: WELL, SOUNDS LIKE MAYBE THIS IS GOING TO GET VOTED DOWN. I DON'T KNOW. BUT WHAT I WAS GOING TO SAY IS THAT I THINK IT'S NEEDED, THIS ROAD IS IN REALLY BAD SHAPE AND IT'S BEEN WAITING FOR A LONG TIME. BUT WE KNOW THAT THERE ARE SOME REALLY SERIOUS -- A NUMBER OF SERIOUS TRANSPORTATION NEEDS IN THE CITY OF AUSTIN, AND BY HAVING TO PAY THIS $200,000 PLUS TO ACQUIRE RIGHT-OF-WAY, WHICH I PERSONALLY THINK THESE CORPORATIONS COULD WELL AFFORD TO DONATE TO HELP GET THIS ROAD DONE, THEN THAT'S GOING TO BE $200,000 THAT DOESN'T GO INTO OTHER ROAD PROJECTS. I MEAN THEY ARE GOING TO GET DONE MORE SLOWLY. AND IT JUST, FRANKLY, I GUESS -- I GET A LITTLE TIRED SOMETIMES OF HEARING THE AMOUNT OF CORPORATE SELF-PROMOTION ABOUT CORPORATE CITIZENSHIP, AND THERE ARE SOME GOOD THINGS DONE AND I THINK BY BOTH THESE CORPORATIONS, BUT AT THE SAME TIME, HERE WE ARE HAVING TO PAY $200,000 FOR RIGHT-OF-WAY THAT I REALLY BELIEVE THEY COULD AFFORD TO GIVE. AND TO ME THE KIND OF GOOD CORPORATE CITIZENSHIP WOULD BE TO SAY, OKAY, WE'RE GOING TO DOUGH THAT IT THAT BECAUSE WE'RE GOING TO BENEFIT FROM IT AND THEN OTHER CITIZENS OF AUSTIN WILL BENEFIT MORE QUICKLY FROM THAT $200,000. BUT AS WE'VE HEARD MR. RIECK EXPLAIN, THE CITY DOESN'T REALLY HAVE THE POWER TO REQUIRE THAT, AND WE DO NEED TO GO AHEAD WITH THIS IMPROVEMENT, IHINK.

>>MAYOR WATSON: FURTHER DISCUSSION?

>>GRIFFITH: MAYOR? MR. RIECK, HOW COMMON OR UNCOMMON IS IT FOR THE RIGHT-OF-WAY TO BE DONATED? IS IT THE NORM OR IS IT SOMETHING EXCEPTIONAL?

>> I THINK, WITHOUT HAVING SPECIFIC DATA FROM MY PERSPECTIVE, IT APPEARS TO BE BECOMING LESS FREQUENT THAT THERE ARE RIGHT-OF-WAY DONATIONS OUTSIDE OF SITE DEVELOPMENT PROCESS. AND PARTICULARLY ON ROADWAYS WHERE WE STEP AHEAD AND BUILD THEM AHEAD OF ANY KIND OF DEVELOPMENTS, IT APPEARS AS A -- AS WE ARE MORE FREQUENTLY LOOKING AT HAVING TO PAY FOR ANY RIGHT-OF-WAY WE ACQUIRE. IN SOME INSTANCES LIKE ON HOWARD LANE, THERE WERE SOME LANDOWNERS THAT WERE WILLING TO DONATE UNDER CERTAIN CONDITIONS LIKE MEDIAN CUTS IN THE VICINITY OF THEIR PROPERTY, BUT THOSE WERE FEW AND IT SEEMS TO BE NO LONGER THE NORM, SO TO SPEAK.

>>GRIFFITH: AND WHAT'S THE VALUE OF THE ROAD IMPROVEMENT?

>> IT'S A $3.8 MILLION PROJECT. AND AS A MATTER OF FACT, IT'S UNDER CONSTRUCTION AS WE SPEAK. WE EXPECT TO BE FINISHED BY DECEMBER.

>>GRIFFITH: THANK YOU.

>>MAYOR WATSON: ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES WITH THE MAYOR PRO TEM TEMPORARILY OFF THE DAIS ON ITEM 64 AND 65. [ONE MOMENT, PLEASE, WHILE CAPTIONERS CHANGE].

>> SO I WILL -- DID I SAY THAT RIGHT? ALL RIGHT. I WILL ENTERTAIN A MOTION. MOTION TO APPROVE BY COUNCILMEMBER ALVAREZ, IS THERE A SECOND? I WILL SECOND THE MOTION. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. -- COUNCILMEMBER GRIFFITH?

>>GRIFFITH: YES, MAYOR I HAD UNDERSTOOD THERE WAS SOME INTEREST IN PERHAPS PULLING THE RAINY PIECE OUT AND GOING FORWARD WITH THE SEAHOLM PART.

>>MAYOR WATSON: THAT'S WHAT I JUST SAID IS THAT WE WILL GO FORWARD WITH THIS WITH THE IDEA BEING THAT THE DIRECTION TOYS THE CITY MANAGER TO NOT ENGAGE --

>>GRIFFITH: TO NOT, OKAY.

>>MAYOR WATSON: UNTIL AFTER THE JULY 11TH MEETING

>>GRIFFITH: FOR.

>>MAYOR WATSON: THE MEETING THAT'S GOING TO GO ON BETWEEN THE NEIGHBORHOOD REPRESENTATIVES, CITY STAFF, AND MR. DUNAWAY SO THERE CAN BE A DETERMINATION WHETHER WE EVEN NEED TO ENGAGE --

>>GRIFFITH: SEAHOLM CONTINUES.

>>MAYOR WATSON: THAT PIECINGS FORWARD. COUNCILMEMBER WYNN? WYNN WYNN KICK COMMENT. MY WISH WITH RAINEY STREET IS FRANKLY I'M A LITTLE NERVOUS AND CONCERNED THAT CITY DALLAS BE SPENT FOR WHAT APPEARS IN MY PERSPECTIVE TO BE COMING FORWARD AS A PRIVATE DEVELOPMENT WHEREAS WITH THE MUELLER REDEVELOPMENT, WITH TOWN LAKE, OTHER THINGS THAT RMMA HELPING US ON, MY REST HAYS -- HESITATION WITH RAINY IS IN FACT THIS IS COMING FORWARD TO THE CITY AS A PRIVATE DEVELOPMENT. I DON'T KNOW THAT THE CITY NEEDS TO BE FUNDING THE PRIVATE DEVELOPERS, YOU KNOW, MASTER PLANNING PROCESESS. BUT I WILL VOTE FOR IT.

>>MAYOR WATSON: COUNCILMEMBER SLUSHER?

>>SLUSHER: I THINK COUNCILMEMBER WYNN MAKES SOME GOOD POINTS THERE. THE REASON -- I KNOW YOU SAID YOU ARE GOING TO VOTE FOR IT. I'M GOING TO VOTE FOR IT, TOO. I'VE BEEN INVOLVED IN HELPING MAKE THIS HAPPEN. BUT THE DIFFERENCE, I WOULD SEE, IS THAT THE CITY IS GOING TO BE ASKED TO MAKE A MAJOR ZONING CHANGE HERE. WE NEED AS MUCH INFORMATION AS WE CAN GET, THAT'S WHY I AM WILLING TO PROCEED IN THIS NEIGHBORHOOD WITH A LONG HISTORY THAT'S BEEN SORT OF CUT OFF FROM EAST AUSTIN AND ISOLATED AND THE RESIDENTS DIDN'T -- WANTING TO SELL THEIR PROPERTY FOR THE CONVENTION CENTER. ABOUT 14 YEARS AGO NOW, SO IT'S IN ORDER FOR US TO HELP US MAKE A BETTER DECISION, I'M WILLING TO DO THIS, BUT I AGREE WITH THE SPIRIT OF THOSE COMMENTS. BUT I WOULD WANT TO MAKE SURE THAT THAT ISED IDEA OF IT, WE ARE NOT DOING SOMETHING TO HELP, JUST HELP SOME PRIVATE DEVELOPERS IN THEIR PROJECT, THAT'S NOT THE INTENT OF THIS.

>>MAYOR WATSON: I WILL ADD THAT THAT I HOPE AFTER THIS JULY 11TH MIGHT GO, IT ALL COMES BACK -- JULY 11TH MEETING IT ALL COMES BACK WHEN IT DOESN'T HAVE TO OCCUR.

>>ALVAREZ: I WILL SUPPORT IT AGAIN, AS WELL. I'M NOT REAL CLEAR EXACTLY WHAT IS BEING PROPOSED, HOW IT DIFFERS FROM WHAT RMMA DIFFERS, DIFFERENT FROM WHAT MIGHT BE PROPOSED AND I'M CERTAINLY WILLING TO TALK TO THE NEIGHBORS TO FIGURE OUT WHAT COULD BE MUTUALLY AGEABLE. I DO LOOK FORWARD TO WORKING WITH YOU ON THAT.

>>MAYOR WATSON: ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES ON ITEM NO. 52. COUNCIL, THAT LEAVES US WITH TIME CERTAIN ITEMS, I WILL -- I WILL ENTERTAIN A MOTION TO RECESS TO GO INTO EXECUTIVE SESSION, THE PURPOSE OF THE EXECUTIVE SESSION WILL BE TO ENGAGE IN A PRIVATE CONSULTATION WITH ATTORNEY, SECTION 551.071, HANG ON, I'M BEING TOLD I AM WRONG. I THOUGHT I HAD TAKEN CARE OF THIS, BUT JUST FOR CLARITY PURPOSES, ON ITEM NO. 25, THE MOTION WOULD BE TO POSTPONE IT. TO THE 17TH OF AUGUST. IS THERE A MOTION? MOTION MADE BY COUNCILMEMBER GRIFFITH, SECONDED BY THE MAYOR PRO TEM. IS THERE ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES ON ITEM NO. 25. I'M SORRY IF I DIDN'T TAKAKE CARE OF THAT EARLIER. AGAIN, MOTION TO RECESS TO GO INTO EXECUTIVE SESSION PRUDENT TO 551.071, DISCUSS LEGAL ISSUES -- DISCUSS THE FOLLOWING LEGAL ITEMS, LEGAL ISSUES RAISED IN CONNECTION WITH THE DAVENPORT M.U.D. WATER LINE PROJECT. DISCUSS CITY OF AUSTIN VERSUS LUMBERMEN'S INVESTMENT CORPORATION, CAUSE NUMBER 99-13013, PENDING IN THE TRAVIS COUNTY DISTRICT COURT, SAND BEACH RESERVE. DISCUSS CIRCLE C LAND CORP VERSUS CITY OF AUSTIN, CAUSE NUMBER 97-13994, 53RD JUDICIAL DISTRICT OF TRAVIS COUNTY. GORDON DUNAWAY AND ELI GARZA, VERSUS CITY OF AUSTIN, CAUSE NUMBER 97-12434, PENDING IN THE TRAVIS COUNTY DISTRICT COURT, THIS LITIGATION CONCERNS DEVELOPMENT REGULATIONS APPLICABLE IN THE BARTON SPRINGS ZONE. ITEM NO. 12 AS IT IS POSTED ON THE AGENDA, RELATED TO A RESOLUTION AUTHORIZING EXECUTION OF A CONSTRUCTION CONTRACT WITH GREAT SOUTHWESTERN CONSTRUCTION COMPANY, INC. AND ITEM NO. 9, WHICH IS RELATED TO A RESOLUTION AUTHORIZING THE NEGOTIATION AND EXECUTION OF A TEMPORARY AGREEMENT TO PROVIDE POTABLE WATER FOR THE RIVER CREST SUBDIVISION LOCATED AT 360 AND WESTLAKE DRIVE, I WILL ENTERTAIN A MOTION.

>> SO MOVE.

>>MAYOR WATSON: MOTION MADE BY COUNCILMEMBER SLUSHER, THERE IS A SECOND? SECONDED BY COUNCILMEMBER ALVAREZ, ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES. WE ARE RECESSED INTO EXECUTIVE SESSION. THE COUNCIL WILL RECONVENE AT 1:30. WHAT I WILL DO IS IF WE FINISH THE EXECUTIVE SESSION BEFORE 1:30, I WILL COME OUT AND ANNOUNCE THAT WE ARE OUT OF EXECUTIVE SESSION. BUT WE WILL REMAIN RECESSED UNTIL 1:30.

>>MAYOR WATSON: THE NEXT ITEM ON THE AGENDA WILL BE GENERAL CITIZENS COMMUNICATION. IN ACCORDANCE WITH OUR RULES, PEOPLE THAT HAVE SIGNED UP PRIOR TO TODAY SO THEY CAN SPEAK. THREE OF THOSE PEOPLE THAT HAVE SIGNED UP HAVE A JOINT PRESENTATION AND WOULD LIKE TO SPEAK IN SUCCESSION. SO WHAT I'M GOING TO DO IS IF THERE IS NO OBJECTION FROM THE PEOPLE THAT HAVE SIGNED UP TO SPEAK, 79 THROUGH 88, I'M GOING TO MOVE THOSE THREE PEOPLE, MR. GUERRA, WHO HAPPENS TO BE THE FIRST PERSON SIGNED UP, MR. LLANES, THE SECOND PERSON SIGNED UP, I'M GOING TO MOVE THEM TO THE END AND LET THEY CAN GO IN SUCCESSION SO WE DON'T BUMP ANYBODY WHO SIGNED UP. UNLESS I HEAR OBJECTION FROM SOMEBODY THAT SIGNED UP THAT'S THE WAY I'LL DO IT. WITH THAT BEING SAID, RICKY BIRD. MR. BIRD, IF YOU WILL MAKE YOUR WAY UP, YOU WILL BE THE FIRST SPEAKER. FOLLOWED BY PAUL ROBBINS, THEN JENNIFER GALE, THEN AMY BABICH. WELCOME, MR. BIRD.

>> THANK YOU, MAYOR. MAYOR, CITY COUNCILL, I WAS MOVED SEVERAL WEEKS AGO BY THE TALKINGS OF THE COUNCIL ABOUT THE DIFFICULTY OF GETTING PEOPLE TO VOTE AND HAVING JUST SERVED AS AN ELECTION CLERK ON THE EARLY VOTING PROCESSES FOR BOTH THE PRIMARIES AND THE CITY ELECTION, I WENT TO SIGN UP FOR CITIZENS COMMUNICATION AND DISCOVERED I COULDN'T SPEAK. I WENT DOWN THE NEXT WEEK AND DISCOVERED I COULDN'T SPEAK AGAIN. IT DAWNED ON ME AS I READ THE NEW RULES FOR SIGNUP THAT THE COUNCIL, MAYBE WITHOUT INTENDING TO, HAS ESSENTIALLY THROTTLED DOWN OUR RIGHT TO ADDRESS MATTERS OF IMMEDIATE IMPORTANCE TAOS. BY WAY OF AN ASIDE, I JUST DISCOVERED PUBLIC PARKING IS NOW 200 YARDS AWAY TO SPEAK TO THE COUNCIL WHILE IT MEETS IN SESSION NOW. I FIND THAT KIND OF ABSURD TO EXPECT THE PUBLIC TO PARTICIPATE AND WALK 200 YARDS TO A PUBLIC MEETING. TO ADDRESS THIS COUNCIL WHAT IS NOW REQUIRED TO COMPETE FOR TEN SPOTS YOU HAVE TO SIGN UP AT THE PROPER TIME FRAME OF 13 DAYS OR LESS PRIOR TO THE NEXT COUNCIL MEETING. THIS IS ALMOST AS BAD AS OUR OCCASIONAL MOTTO OF ALLOWING PEOPLE TO SPEAK, BUT ONLY IF THEY HAVE SOMETHING TO SAY. WE PHRASE IT POLITELY, OF COURSE, BUT BY PLACING THINGS IN TOO NARROW A TIME FRAME AND CONSTANTLY EMPHASIZING TO THE AUDIENCE NOT TO SPEAK IF IT DOESN'T HAVE TO THE MESSAGE IS OUT THAT YOU ONLY SHOULD SPEAK WHEN WE FEEL YOU SHOULD BE SPEAKING. THAT IS THE OFFICIAL AUDIENCE YOU ARE TRYING TO ADDRESS. THIS IS JUST WRONG. IF YOU CONTINUE THIS, I'M AFRAID YOU ARE GOING TO BE SPEAKING MORE AND MORE TO ONLY THE PAID INTERESTS, PAID AGENTS OF SPECIAL INTERESTS AND LESS AND LESS TO THE ORDINARY CITIZENS OF AUSTIN. THIS PROCESS WOULD SEEM TO LEAVE YOU ONLY WITH THE MOST ZEALOUS, THE MOST PRIVILEGED AND PROBABLY THE MOST LESS THAN SANE PEOPLE CAPABLE OF SIGNING UP. WE NEED TO HEAR OF EVENTS AND CONCERNS TO THE GENERAL PUBLIC. I THINK YOU DO TOO. THERE ARE THOSE THAT EXERCISE EGO, HATRED, JUST FLAT OUT LIES. A LITTLE MORE WORK ON THE MEDIA WOULD EXPOSE THOSE. I DON'T THINK THIS COUNCIL HAS ANYTHING TO FEAR FROM THE GENERAL CITIZENRY THAT WANTS TO COMMUNICATE ITS INTERESTS. I THK YOU FOR YOUR TIME.

>>MAYOR WATSON: THANK YOU, MR. BIRD. PAUL ROBBINS. PAUL ROBBINS. PAUL ROBBINS. JENNIFER L. GALE. JENNIFER L. GALE. JENNIFER LGALE. AMY BABICH. FOLLOWED BY E. J. WHITE AND THEN MARNIE REEDER.

>> HELLO. I -- I'VE COME TO TALK BECAUSE I WOULD LIKE TO ASK THE -- AUSTIN NEEDS SIDEWALKS ON -- UP TO -- UP TO MODERN ADA STANDARDS ON BOTH SIDES OF THE STREET, ON ALL THE ARTERIAL ROADS IN AUSTIN. ACTUALLY WE NEED THEM ON ALL THE STREETS IN AUSTIN, BUT SUPPOSE YOU STARTED WITH THE ARTERIAL ROADS? THOSE ARE THE BIG STREETS WHERE PEOPLE GET RUN OVER WHEN THEY ARE -- WHEN THEY TRY TO WALK ALONG ON FOOT AND WHERE PEOPLE WILL DRIVE SHORT DISTANCES IN CARS RATHER THAN WALK. SO I WOULD LIKE TO REQUEST THAT THE CITY OF AUSTIN BUILD SIDEWALKS UP TO CODE ON BOTH SIDES OF ALL THE ARTERIALS WITHIN THE NEXT THREE YEARS. IT'S A GOOD IDEA TO FINISH BUILDING THESE SIDEWALKS QUICKLY BECAUSE IF YOU DO THIS, THEN PEOPLE WILL SEE THAT THINGS ARE CHANGING. OH, IS THAT THE END OF MY TIME? OH, OKAY. I'M SORRY. OKAY. OKAY. IT WOULD DEFINITELY COST MONEY TO DO THIS. IT WOULD PROBABLY COST SOMETHING LIKE $10 MILLION A YEAR FOR THREE YEARS TO DO IT. BUT IT WOULD BRING ABOUT A BIG CHANGE IN TRANSPORTATION PATTERNS, WHICH IS A LOT MORE THAN YOU WILL GET FOR PUTTING THE -- FOR BUILDING THE NEW ROADS WHICH YOU ARE GOING TO BUILD. SO THERE ARE OTHER PEOPLE INTERESTED IN THIS TOO. I'M NOT THE ONLY PERSON WHO IS INTERESTED IN IT.

>> [INAUDIBLE - NO MIC ON].

>> SO PLEASE FUND THE SIDEWALKS ON THE ARTERIALS STARTING WITH THIS YEAR. THANK YOU.

>>MAYOR WATSON: E. J. WHITE FOLLOWED BY MARNIE REEDER AND JIM MCMURTRY.

>> GOOD AFTERNOON, MAYOR AND COUNCIL PERSONS. I'M O. J. WHITE, BRINGING ATTENTION TO ISSUES AT TOWN LAKE ANIMAL CENTER. FIRST WHEN I AND OTHERS SPOKE TO YOU JUNE 8TH ABOUT CONCERNS AND SUPPORTING BETTY DUNKERLEY'S EFFORTS, ANIMAL CONTROL WAS OUT PICKING UP THE RESCUE PERSON'S ANIMALS ON A SUPPOSED CRUELTY CHARGE. NEXT THERE ARE STILL THE SAME SIGNS ON THE DOORS OF THE -- OF RECEIVING DOWN AT THE SHELTER, AND THE SIGNS INSIDE THE AREA CONCERNING LEAVING ANIMALS WHEN THE SHELTER IS CLOSED. ALSO ON THE WEBSITE IT HAS CHANGED FROM RECEIVING ANIMALS 24 HOURS A DAY TO RECEIVEING OFFICE AN INJURED ANIMAL RESCUE SERVICE OPERATE FROM 7:30 A.M. TO 7 P.M. P.M. TO REPORT INJURED ANIMALS PLEASE CALL 911 AS SOON AS POSSIBLE. THIS DOES NOT SAY ANYTHING ABOUT THE HOURS FROM 7:00 P.M. IN THE EVENING TO 7:30 A.M. IN THE MORNING. THAT MEANS THAT THERE IS NO ONE THERE THAT WILL ANSWER ANYTHING IF ANYBODY COMES BY WITH A QUESTION OR AN INJURED ANIMAL OR SOMETHING. ALSO WHEN I WAS DOWN THERE LAST NIGHT, THE SECURITY GUARD CAME AND WAS UNABLE TO GET INTO THE RECEIVING BUILD BECAUSE THEY WOULDN'T ANSWER THE DOOR. HE CAME OVER TO THE DAVENPORT BUILD AND WAS ASKING US IF WE HAD A KEY TO IT. I DON'T KNOW WHAT HE DID LATER ON TO GET IN. ALSO, THERE IS A SIGN OUT IN FRONT OF THE BUILDING SAYING THE SHELTER WILL BE CLOSED JUNE THE 4TH -- JULY THE 4TH. THIS MEANS THAT NO ANIMAL CARE PERSON WILL BE AVAILABLE THAT EVENING TO TAKE CARE OF EMERGENCIES CAUSED BY 4TH OF JULY PROGRAMS, FIREWORKS ESPECIALLY. THESE THINGS AND OTHERS MAKE ME WONDER IF THE CITY AND COUNTY REALLY WANT TO HAVE A MODERN, UP TO DATE ANIMAL CARE FACILITY. FOR THE THREE OR FOUR YEARS I HAVE BEEN INVOLVED AND HAVE BEEN COMING DOWN TO THE COUNCIL, WE KEEP GOING OVER THE SAME MAJOR THINGS OVER AND OVER AND NO CHANGE SEEMS TO HAPPEN. I THINK IT IS TIME TO BE UP FRONT WITH THE RESCUE COMMUNITY AND TELL US YOU DON'T WANT SIGNIFICANT CHANGE THAT WILL -- CHANGE. THAT WAY WE CAN ADJUST OUR PRIORITIES AND TRY TO WORK OTHER WAYS TO TAKE CARE OF THE ANIMALS. I HAVE SAID ALL ALONG YOU WOULDN'T HAVE PUT UP WITH THE CONDITIONS AND ACTIONS AT THE SHELTER IF YOU WEREN'T SATISFIED WITH THE WAY IT WAS BEING HANDLED. PEOPLE KEEP TELLING ME I'M WRONG. I HOPE I'M NOT. AGAIN, I REALLY DON'T LIKE NOT HAVING A PERSON RESPONSIBLE -- [BUZZER SOUNDS] -- FOR ANIMAL CARE ON DUTY 24 HOURS A DAY AT THE SHELTER. THANK YOU.

>>MAYOR WATSON: THANK YOU. MARNIE REEDER, THEN JIM -- THEN PAUL MARTIN, AND THEN WE'LL GET INTO THE THREE IN ORDER.

>> HI. I'M MARNIE REEDER AND THANK YOU FOR, CITY COUNCILL AND MAYOR, ALLOWING US TO SPEAK. I WANT TO SPEAK ON ANIMAL MATTERS. I JUST WAS LATE IN RUSHING UP THE STAIRS. ABOUT THE ANIMAL ADVISORY COMMISSION. I'VE BEEN ATTENDING THE MEETING SINCE ITT WAS STARTED. IT WAS A VERY VIABLE, QUITE LIVELY GROUP IN THE BEGINNING, IT WAS A CITIZENS COMMISSION. OVER THE YEARS THINGS HAVE CHANGED A LOT. THE MEETING ON JUNE 22ND, THE LAST MEETING, WAS KIND OF INDICATIVE. I WALKED IN, I WAS LATE, GEE, AND NOT ONE PERSON FROM THE PUBLIC WAS THERE. AND THAT -- THAT WAS REAL ALONG WAY FROM WHERE WE STARTED. BETTY DUNKERLEY GAVE A VERY NICE TALK ABOUT HOW THINGS WERE GOING TO BE IMPROVED AT THE SHELTER AND HOW SHE WAS HOPING THE ADVISORY COMMITTEE WOULD BE PART OF IT AND GUIDE HER AND HELP HER. THE NEXT AGENDA ITEM WAS THE PRIORITIES THAT THE ADVISORY COMMISSION WAS SETTING FOR THE NEXT YEAR. NO. 1 WAS TO -- TO RESTRUCTURE THE COMMISSION, WHICH WOULD MEAN BRINGING IT DOWN TO -- THEY STARTED OUT WITH ONLY FOUR MEETINGS A YEAR. THEY VOTED TO MOVE IT UP TO SIX MEETINGS AT LEAST. IT NOW MEETS MONTHLY. AND TO LOWER THE MEMBERSHIP DOWN TO THE SHELTER MANAGER, SOMEBODY FROM THE CITY HEALTH DEPARTMENT, A VENT NAR YAN AND AN ANIMAL WELFARE ORGANIZATION LEADER, I MAY BE MISSING ONE, BUT BASICALLY PEOPLE THAT ARE ALREADY ON PUBLIC STAFF, ACCOUNTING PERSON MAYBE. NOW, THEY -- THEY HAVE ALSO BEEN TRYING TO STOP CITIZENS COMMUNICATION AT THESE MEETINGS TOO. THEY DON'T SOUND LIKE AN ORGANIZATION THAT WANTS TO -- YOU KNOW, TO PARTICIPATE IN THE FUTURE. THEIR OTHER PRIORITY WAS THE BUILDING OF THE NEW SHELTER WITHIN THE NEXT FIVE TO TEN YEARS SO THAT'S HARDLY A BIG PRIORITY FOR THIS YEAR. IT'S ALREADY IN THE CITY PLANNING THAT IS BEING DONE. ONE OF THE ADVISORY COMMISSION MEMBERS DID ASK THAT THEY -- THEY GIVE PRIORITY TO SPAY/NEUTER. THAT WAS VOTED DOWN BY EVERY COMMISSION MEMBER EXCEPT PAT AND THERESA. AND THIS HAS KIND OF THE -- IS KIND OF THE WAY IT'S BEEN GOING. THEY -- THEY ARE A -- THEIR ATTENDANCE IS REALLY TERRIBLE. THEY DON'T WANT CITIZENS COMMUNICATION. THE -- THE -- IT'S A PROFESSIONAL BLOCK OF THREE BREEDERS, TWO VETERANARIANS, SHELTER MANAGER, HUMANE SOCIETY REPRESENTATIVE AND CITY -- TWO CITY EMPLOYEES THAT MAY NOT VOTE, BUT THEY ARE VERY VIABLE AND A VOLUME PART OF THE SUPPORT. THE cN VOCAL PART OF THE SUPPORT. THEY BASICALLY EQUATE DOING NOTHING WITH BEING GOOD. [BUZZER SOUNDS] PARAGRAPH GOSH, I HOPE YOU LOOK AT YOUR APPOINTEES. WE NEED A CITIZENS COMMISSION.

>> I WOULD LIKE TO FOLLOW UP WITH ONE COMMENT, REALLY TO THANK THE COUNCIL BECAUSE THIS MORNING ON THE CONSENT AGENDA YOU APPROVED A BUNCH OF AMENDMENTS FOR THE ANIMAL SHELTER. YOU PROVIDED FOR THREE NEW POSITIONS, ONE FOR RESCUE COORDINATOR, ONE FOR A FOSTER COORDINATOR AND THEN A BEHAVIST AS WELL AS $10,000 TO INCREASE THE SPAY AND NEUTER PROGRAM THIS YEAR AND $10,000 TO INCREASE OUR VACCINATION PROGRAM. SO I WANTED TO AT LEAST MAKE SURE THAT OUR ANIMAL FOLKS HEARD THAT AND CAN SHOW THEIR APPRECIATION AS WELL AS MINE FOR THAT SUPPORT. I WILL TELL YOU I WAS AT THE ANIMAL COMMISSION MEETING THIS PAST JUNE 22ND, IT'S THE FIRST MEETING THAT I ATTENDED, AND AS FAR AS THE INDIVIDUAL PROGRAMS LIKE SPAY OR NEUTER, EDUCATION AND THINGS LIKE THAT, THAT'S SOMETHING THAT I BELIEVE THIS COUNCIL AND THE STAFF ARE REALLY ALREADY COMMITTED TO BECAUSE THEY ARE PART OF THE NO KILL ORDINANCE. AND SO WE ARE GOING TO BE MOVING FORWARD WITH VERY -- WITH NEW AND ENHANCED PROGRAMS IN ALL OF THOSE AREAS AND HOPE TO FOCUS SOME OF OUR CONCERNS IN THE SAME WAY THAT YOU FOCUS THEM. SO I THINK THAT THAT PERHAPS WOULD EXPLAIN TO -- TO THIS GROUP THAT THAT IS PROBABLY ONE REASON THAT THE COMMISSION DECIDED TO FOCUS ON LARGER ISSUES BECAUSE THEY FELT LIKE THE COUNCIL AND THE STAFF WERE ALREADY GOING TO BE MOVING FORWARD ON THESE PROGRAMS THAT YOU APPROVED LAST YEAR. THANK YOU.

>> GOOD AFTERNOON, I'M HERE TO SPEAK AGAIN REGARDING THE CENTRAL BOOKING AND THE PLAN TO MOVE CENTRAL BOOK TO GO 10TH AND NUECES. I HAD HOPED TO HAVE A WRITTEN RESPONSE TO THE CITY MANAGER'S REPORT ON THE -- THE REPORT ON REUSE OF THE CENTRAL BOOKING FACILITY DATED MAY 30TH, BUT UNFORTUNATELY MY SCHEDULE HAS BEEN SUCH I'VE NOT BEEN ABLE TO DO THAT. HOPEFULLY I CAN DO THAT SOMETIME HERE IN THE NEXT WEEK OR SO AND THEN SEND A COPY TO THE COUNCILMEMBERS EITHER VIA E-MAIL OR VIA THE MAIL. I WOULD LIKE TO MAKE A COUPLE COMMENTS IN THE TIME I HAVE ALLOTTED TO SAY FIRST OF ALL AGAIN THAT ON THE REVIEW THAT I MADE SO FAR OF THIS REPORT, IT APPEARS TO CLEARLY SKEW THE NUMBERS IN FAVOR OF MOVING CENTRAL BOOKING AND SKEW THE NUMBERS HIGHER IN TERMS OF WHAT THE COSTS WOULD BE IF CENTRAL BOOKING WERE KEPT AT THE CURRENT LOCATION. SPECIFICALLY IN SOME OF THE EXAMPLES ON PAGE 3, FOR EXAMPLE, OF THE EXECUTIVE SUMMARY, THE NUMBERS THAT ARE USED ARE THE LOWOW END NUMBERS FOR THE COST OF MOVING CENTRAL BOOKING TO THE NEW FACILITY. THE CITY MANAGER IS PROJECTING APPROXIMATELY TWO AND A HALF MILLION TO THREE MILLION AS THE COST, BUT THEN WHEN HE DOES A COMPARISON OF THOSE COSTS AGAINST THE OTHER ALTERNATIVES, HE USES THE LOW END FIGURE. BUT INTERESTINGLY ENOUGH ON PAGE 21 IT STATES IN THE REPORT THAT THE CONSULTANT REGARDING -- THIS IS REGARDING OPTIONS 2 AND 3, THE CONSULTANT BELIEVES THESE ESTIMATED COSTS TO BE CONSERVATIVE AS THE CURRENT COSTS APPLY TO FULL UTILIZATION OF CENTRAL BOOKING'S CAPACITY, MEANING THEY ARE USING COSTS STARTING DAY 1 ASSUMING THAT THE CURRENT FACILITY IS FULLY UTILIZED. THEY GO ON TO SAY THE FACILITY'S EQUIVALENT CAPACITY IS NOT EXPECTETED TO BE REQUIRED FOR APD ARRESTEES ONLY UNTIL 2007. CLEARLY INDICATING THEY HAVE SKEWED THE COSTS THERE TO THE HIGHER END OF THE SCALE. ON PAGE 17 THERE ARE A FEW MENTIONS OF SOME OF THE PROBLEMS ASSOCIATED WITH MOVING TO THE NEW FACILITY, SPECIFICALLY A PROBLEM WITH THE SALLY PORT BEING ROUGHLY HALF THE SIGHT OF THE SALLY PORT TYPE AREA AT THE CURRENT LOCATION. ALSO THERE IS -- THERE ARE SOME PROBLEMS WITH -- INSIDE OF THE NEW FACILITY AS WELL. THE BOTTOM LINE HERE IS THAT WE CONTINUE TO BE FRUSTRATED BY THE FACT THAT THERE IS AN ATTEMPT TO NOT COMPARE APPLES WITH APPLES AND I'M SURE IT MAKES IT VERY DIFFICULT FOR THE CITY COUNCILL TO REALLY ARRIVE AT A REANABLE DECISION AND A FAIR DECISION IN THIS MATTER. I BELIEVE THAT THIS REPORT IS IN LINE WITH THE REPORT THAT WAS GIVEN MARCH 9TH REGARDING CENTRAL BOOKING IN THAT IT'S PRETTY MUCH UNFAIR, AND I FIND IT FRUSTRATING THAT ONE OF THE MAIN THINGS WE'VE ASKED FOR IN THE REVIEW OF THIS MATTER IS THAT THE ENTITIES INVOLVED AT LEASTING FAIR IN THEIR REPORTS. BUS BUS. I'LL FINISH MY COMMENTS AT THIS POINT, BUT I WOULD LIKE TO GIVE A COPY OF MY RESPONSE TO THAT MARCH 9TH REPORT TO THE NEW CITY COUNCILLMEMBERS IF THAT WOULD BE ALL RIGHT.

>>MAYOR WATSON: THAT WOULD BE FINE. IF YOU WILL HAND THEM TO COUNCILMEMBER SLUSHER, HE WILL PASS THEM ON DOWN. THANK YOU, MR. MARTIN. MR. GUGUERRA FOLLOWED BY MR. LLANES AND THEN MR. MCMURTRY. AND WHILE -- WHILE IT'S A COMBINED PRESENTATION, IT WILL BE THREE MINUTES.

>> YES, SIR. THANK YOU FOR ACCOMMODATING OUR PRESENTATION. EXCUSE ME. MAYOR. THANK YOU FOR ACCOMMODATING OUR PRESENTATION. WE'RE HERE ON BEHALF OF THE GOVALLE NEIGHBORHOOD PLANNING AREA TEAM. MAYOR AND COUNCILMEMBERS, WE REPRESENT THE GOVALLE NEIGHBORHOOD PLANNING AREA TEAM IN EAST AUSTIN. BOUNED BY OAK SPRINGS ON THE NORTH, BY THE COLORADO RIVER ON THE SOUTH, AIRPORT BOULEVARD ON EAST, PLEASANT VALLEY AND WERB VIL ROAD ON THE WEST. ALONG WITH THE BUSINESSES IN THIS AREA, THE GOVALLE GARDENS, BROOK, RIVER BLUFF, MEMBERS OF PODER AND THE TANK FARM AREA NEIGHBORHOOD COUNCIL ARE ALL NEIGHBORHOOD GROUPS LOCATED IN THIS PLANNING AREA. WE WISH TO THANK YOU FOR THE OPPORTUNITY TO BE INCLUDED IN THE PLANNING OF THE NEIGHBORHOOD PLANNING PROCESS. YET AS WE PROCEED, THERE ARE ISSUES OF CONCERN THAT MANY OF US SHARE AND IT IS OUR INTENT TO APRICE YOU OF THESE TODAY. OUR PRIMARY CONCERNS STEM FROM OUR BELIEF THERE HAS BEEN A LACK OF COMMITMENT AND ACTION ON THE PART OF THE CITY COUNCIL ON PAST PLANS AND PLANNING. MANY OF OUR CURRENT TEAM MEMBERS HAVE TAKEN PART IN SIMILAR EFFORTS FOR THE LAST TWO DECADES. THE AUSTIN PLAN AND THE TOMORROW PLAN. IT IS CERTAINLY DISHEARTENING TO SEE OUR MANY HOURS OF HARD WORK AND DEDICATION PUSHED OUR RECOMMENDATIONS BEING RELEGATED TO INACTION IN THE PAST. WE RESPECTFULLY ASK THAT THE COUNCIL AND THE CITY MANAGEMENT BE MINDFUL OF THIS FACT WHEN WE'RE INITIATING THIS PLANNING PROCESS AND THAT OUR TIME, OUR VISIONS AND OUR HOPES BE ARTICULATED THAT WE ARTICULATED IN OUR NEIGHBORHOOD PLAN ARE NOT AN EXERCISE IN VEIN. AS FAR BACK AS 1967, BEGINNING WITH ORDINANCE NO. 670828-8, SEE OUR ATTACH LT, PLEASE, WHICH ESTABLISHED THE CITY SALES TAX AND THE CITY USE TAX, WE HAVE HAD THE EXPECTATION THAT OUR NEIGHBORHOOD WOULD REAP SOME OF THE POSITIVE BENEFITS FROM ITS CREATION. THE STATED PURPOSE OF THE TAX WAS FOR THE IMMEDIATE PRESERVATION OF PUBLIC PEACE, HEALTH AND SAFETY. THIS IS PRECISELY WHAT WE ARE STILL TODAY TRYING TO ENSURE IN THE GOVALLE NEIGHBORHOOD. WE FEEL THAT OUR INVESTMENT AND OUR TIMES OVER THE YEARS AND IN THIS PLANNING PROCESS SHOULD BE RECIPROCATEED BY THE CITY'S COMMITMENT OF FUNDING AND THE ASSURANCE THAT OUR CONSENSUS BASED RECOMMENDATIONS BE DEARLY CONSIDERED AND IMPLEMENTED WITHIN A REASONABLE AMOUNT OF TIME. WE ARE JUST ABOUT TO START OUR OUTREACH PHASE OF OUR PLANNING. WE WOULD LIKE TO BE ABLE TO GO TO OUR RESIDENTS AND OUR BUSINESS NEIGHBORS CREATING CONSENSUS KNOW THAT YOU, CITY COUNCILMEMBERS AND THE CITY MANAGEMENT, IS SHOULDER TO SHOULDER WITH US THROUGH THIS PROCESS. WE ALSO WOULD LIKE TO BE INFORMED A UPDATED ON CITY PROJECTS CURRENTLY UNDERWAY PLANNED FOR OUR NEIGHBORHOOD. THE TIMING AND PHASING OF THESE -- [BUZZER SOUNDS] -- AND FUTURE -- AND THE FUNDING STREAMS. BECAUSE OUR NEEDS ARE SO DIVERSE WE DO NOT WANT TO DUPLICATE RECOMMENDATIONS OR GIVE A SENSE OF URGENCY TO PROJECTS THAT ARE POSSIBLY ALREADY IN THE PIPELINE. SO WE WOULD ASK YOU TO ACT IN GOOD FAITH WITH OUR NEIGHBORHOOD PLANNING PROCESS AND WE WILL CONTINUE TO DO SO AFTER THE PLAN IS PRESENTED AND APPROVED SO THAEK ASSURE THAT OUR UNIQUE NEIGHBORHOOD EXISTS WITH THE SAME PEACE, HEALTH AND SAFETY AS THE NEIGHBORHOOD AROUND THIS BUILDING. THANK YOU VERY MUCH.

>> I AM HOR SAY GUERRA, MEMBER OF THE GOVALLE AREA PLANNING TEAM, A VOLUNTEER. MY FAMILY AND I ARE BUSINESS PEOPLE AND RESIDENTS OF THE GOVALLE AREA SINCE 1958. TO ALL THE MEMBERS OF THE COUNCIL, THANK YOU. I INDICATED IN MY REMARKS ABOUT THE MEMORY OF CITY COUNCILMEMBERS OF 1967, ESPECIALLY MAYOR AKIN. I NEED TO CALL TO YOUR ATTENTION [INAUDIBLE] TO THE CITY CHARTER OF AUSTIN AND TO THE CITY SALES TAX EMERGENCY ORDINANCE NO. 670828-8 EFFECTIVE AUGUST 28TH OF 1967. I RECOMMEND TO ALL OF YOU ESPECIALLY THE NEW MEMBERS OF THE COUNCIL TO READ PAGE 2, ARTICLE 4, PAGE 3, ARTICLE 5, PAGE 24, ARTICLE 1 OF THE CITY CHARTER. IN 1966 AND '67, THE CITY OF AUSTIN COUNCIL AND THE HUMAN OPPORTUNITIES CORPORATION OF TRAVIS COUNTY COOPERATED TO IDENTIFY AND ALSO FIND THE REMEDY TO THE NEGLECTED PUBLIC [INAUDIBLE] ESPECIALLY IN THE [INAUDIBLE] OF THE CITY. THE PROPERTY OF REAL ESTATE TAXES BEFORE '67 WERE NOT ADEQUATE TO CORRECT THE INEQUITY AND IN ORDER TO BE FAIR TO ALL AND FOR ALL OF US TO SHARE 100% OUR BASIC NEEDS WE NEEDED THE SALES TAX THAT ANYONE SPENDING MONEY IN AUSTIN COULD NOT POSSIBLY BE A FREE-LOADER. THE TAXES ARE SPECIFIC. IT IS ONLY FOR PUBLIC PEACE, HEALTH AND SAFETY. TODAY WE LACK ABOUT 70% OF THE NEEDED CORRECTIONS, ESPECIALLY IN SAFETY. ONLY CAPITAL METRO PROVIDES SIDEWALKS IN METRO ROUTES IN THE INTERNEIGHBORHOODS. TO THE NEW MEMBERS OF COUNCIL, I SAY THAT I FEEL THE UTMOST [INAUDIBLE] AT THE SWEARING IN CEREMONY AT THE CONVENTION CENTER WILL BE USED NOT TO DEFRAUD THE TAXPAYERS OF TRAVIS COUNTY AND CITY OF AUSTIN. COUNCILMEMBER SLUSHER BEING, I HAVE DEDICATED TYPE TO LEGITIMATE SMRANTS TO THE CITY OF AUSTIN. EMPLOYEES, ESPECIALLY THOSE WORKING FOR THE CITY OF AUSTIN HAVE TO SAY NEW COUNCIL, NEW ISSUES, NEW CHANGES. THERE IS NO CONTINUITY FOR THE [INAUDIBLE] TO THE SALES TAX ORDINANCE. DO ANY OF YOU KNOW WHY? MR. SLUSHER, YOU -- NO MORE BOONDOGGLES FOR THE CITIZENS OF AUSTIN, PLEASE. IF YOU HAVE ANY QUESTIONS, PLEASE, WHEN WE GET THROUGH, ASK THEM. WE ARE HERE TO HELP YOU. THANK YOU.

>> MAYOR WATSON AND COUNCILMEMBERS, MY NAME IS JIM MCMURTRY. OUR FAMILY OWNS PROPERTY AND CONDUCTS OUR FAMILY BUSINESS ON THE EAST FIFTH STREET. OUR ROOTS IN THE GOVALLE COMMUNITY GO BACK TO 1964. I'M A MEMBER OF THE GOVALLE NEIGHBORHOOD PLANNING TEAM. AND OUR TEAM HAS AGREED TO MOVE FORWARD THROUGH THIS PLANNING PROCESS BY CONSENSUS. OUR LETTER AND THE COMMENTS YOU HAVE HEARD REFLECT A CONSENSUS REGARDING THESE MATTERS AND WE ARE CONCERNED THAT THE PLAN WHICH WE WILL DEVELOP OR WILL BE DEVELOPED WITH THE HELP OF STAFF AFTER HUNDREDS, MAYBE EVEN THOUSANDS OF HOURS OF WORK AND WITH DISCUSSIONS THAT PROVOKE EMOTIONS AND EVEN THE POCKETBOOKS OF OUR NEIGHBORS, THAT THAT BE UNDERSTOOD AND BE APPROVED, BUT EVEN MORE THAT THE PEOPLE OF OUR COMMUNITY CAN HAVE CONFIDENCE THAT THE CITY WILL ACCOMPLISH THE ELEMENTS OF THAT PLAN. THE CREDIBILITY OF THE CITY AND OF THE COUNCIL I SUBMIT TO YOU IS NOT VERY HIGH IN GOVALLE. DUE IN PART, IN MY OPINION, TO THE INACTION OF PRIOR COUNCILS AND THE LACK OF INFORMATION REGARDING THE STATUS OF THE COMPLETION OF PRIOR PLANS. MY EXPERIENCE WITH THE POLITICAL PROCESS AND LEGISLATIVE PROCESS LEADS ME TO THE CONCLUSION THAT MOST PEOPLE LOSE INTEREST AND THEY LOSE THEIR CONFIDENCE IN THEIR GOVERNMENT WHEN THEY ARE NOT ABLE TO SEE THE RESULTS OF THEIR EFFORTS FOR WHICH THEY VOLUNTEER. AND IN THIS CASE WE'RE SOLICITED BY THE COUNCIL. IN TIMES PAST AND PRESENT. AND THEN THOSE PLANS ARE ACCEPTED BY THE COUNCIL. UNFORTUNATELY SOME OF YOUR PREDECESSORS HAVE APPARENTLY BEEN MORE CONCERNED ABOUT MAKING PROMISES IN ORDER TO GET ELECTED OR TO GET REELECTED AND HAVE NOT SHOWEREDDED THE RESPONSIBILITY OF FOLLOWING THROUGH WITH THE PLANS AND THE COMMITMENTS MADE BY PRIOR COUNCILS. WE ARE ASKING YOU TO ACKNOWLEDGE THE EXISTENCE AND THE VIABILITY OF THE PLANNING REFERENCED IN OUR LETTER AND TO GIVE THE PEOPLE A STATUS REPORT AS TO THE COMPLETION OF THE SPECIFIC PROJECTS THAT HAVE BEEN IDENTIFIED IN THOSE PLANS. THIS WOULD BE AN EXCELLENT TIME AND AN APPROPRIATE WAY FOR THIS COUNCIL AND FOR YOU AS INDIVIDUAL MEMBERS TO BUILD SOME CREDIBILITY WITH THE PEOPLE. IMPROVED CREDIBILITY, I SUGGEST, WOULD TRANSLATE INTO A SERIOUS COMMUNITY EFFORT TO WORK WITH THE CITY IN THE DEVELOPMENT OF THE 2000 GOVALLE NEIGHBORHOOD PLAN. AND IT WILL ALSO PROMOTE NEIGHBORHOOD PRIDE AND STIMULATE INDIVIDUAL AND GROUP EFFORTS TO DO SOME THINGS ON OUR OWN FOR THE IMPROVEMENT AND THE BEAUTIFICATION OF THE NEIGHBORHOOD. UNFORTUNATELY, THE OPPOSITE IS EQUALLY TRUE. NEW PLANNING WITHOUT SUBSTANTIAL COMPLETION OF PRIOR PLANS, WHICH WERE EXPECTED BY THE PEOPLE TO BE DONE, WILL FIND ITS END IN INCREASED APATHY, IF THAT IS POSSIBLE. YOUR PREDECESSORS DIDN'T FOLLOW THROUGH. [BUZZER SOUNDS]. BUT YOU CAN. I BELIEVE IT COULD BEGIN TODAY WITH THE ACKNOWLEDGEMENT OF THE PLANNING.

>>MAYOR WATSON: THANK YOU.

>> THANK YOU.

>>MAYOR WATSON: AND THANK ALL OF YOU FOR BEING WITH US TODAY.

>> THANK YOU, MAYOR, THANK YOU COUNCILMEMBERS.

>> WELCOME TO THE NEW COUNCILMEMBERS. HOPE TO WORK WITH YOU SOON.

>>MAYOR WATSON: COUNCIL, WE'LL BRING UP ITEMS 89 AND 90. OF COURSE I DON'T SEE THE FOLKS THAT ARE HERE FOR THE 2:00 TIME CERTAIN. MR. NEWMAN, ARE YOU GOING TO MAKE THIS PRESENTATION?

>> YES, SIR.

>> MAYOR AND COUNCIL, I'M BILL NEWMAN, WITH PUBLIC FINANCIAL MANAGEMENT, FINANCIAL ADVISOR TO THE CITY. THE ITEMS BEFORE YOU, 89 AND 90, RELATE TO THE CITY'S ABILITY TO EXPAND ITS TAXABLE COMMERCIAL PAPER PROGRAM IN 60 TO 160 MILLION AND THEREFORE ALLOW IT TO SELL AT A LOWER SHORT TERM INTEREST RATE TAXABLE COMMERCIAL PAPER. IN DOING SO WHAT WE'LL DO IS TO TAKE THE LCRA CONTRACT AND PUT IT ON THAT SIDE AND THEN AT SOME POINT IN THE FUTURE TAKE IT OUT ON A TAX EX SEM BASIS. THAT'S WHAT LT 89 IS, THE AUTHORIZATION FOR ISSUANCE OF THOSE BONDS.

>>MAYOR WATSON: ANY MEMBERS OF THE COUNCIL HAVE ANY QUESTIONS? LL ENTERTAIN A MOTION WITH REGARD TO ITEM NO. 89. MOTION MADE TO APPROVE BY THE MAYOR PRO TEM. SECONDED BY COUNCILMEMBER SLUSHER. DISCUSSION? IS THERE ANYONE WISHING TO BE HEARD ON ITEM NO. 89? ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. I'LL ENTERTAIN A MOTION. MOTION TO APPROVE BY THE MAYOR PRO TEM. IS THERE A SECONDED I'LL SECOND THE MOTION. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON ITEM NO. 90.

>> THANK YOU VERY MUCH.

>>MAYOR WATSON: THANK YOU, MR. NEWMAN. COUNCIL, LET'S GO BACK TO ITEM NO. 9. DO YOU HAVE SOMEBODY TO MAKE A BRIEF PRESENTATION? TERRY, IF YOU WILL MAKE A VERY BRIEF PRESENTATION WITH REGARD TO ITEM NO. 9.

>> MARTHA TERRY, ASSISTANT CITY ATTORNEY. WE ARE REQUESTING TODAY THAT THE COUNCIL AUTHORIZE THE NEGOTIATION OF THE INTERIM AGREEMENT TO PROVIDE WATER SUPPLY FOR SIX-MONTH PERIOD IN RIVERINCREASE AQUASOURCE UTILITY.

>>MAYOR WATSON: ANYBODY HAVE ANY QUESTIONS OF MS. TERRY? I'LL ENTERTAIN A MOTION WITH REGARD TO ITEM 9.

>>GOODMAN: SO MOVED.

>>MAYOR WATSON: MOTION TO APPROVED BY THE MAYOR PRO TEM. IS THERE A SECOND? SECONDED BY COUNCILMEMBER WYNN. IS THERE ANYONE WISHING TO BE HEARD ON THIS ITEM? ANYONE WISHING TO BE HEARD? ANY DISCUSSION BY COUNCIL? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON ITEM 9. COUNCIL, ONE OTHER -- COUNCIL, WE HAVE ONE OTHER ITEM WE CAN TAKE UP THAT'S NOT A TIME CERTAIN. AND THAT IS THE APPROVAL OF THE APPOINTMENTS OF COUNCILMEMBERS TO COUNCIL SUBCOMMITTEES AND I'M HAVING THAT DOCUMENT FINALIZED AND WHAT I'LL DO IS GET THAT TO YOU AND WE'LL JUST TAKE IT UP WHEN WE HAVE IT ALL IN FRONT OF US. LET'S NOT BRING THAT UP NOW. WHAT I'LL DO INSTEAD IS I WILL ENTERTAIN A MOTION TO RECESS TO GO INTO EXECUTIVE SESSION AND THE PURPOSE WILL BE TO ENGAGE IN A PRIVATE CONSULTATION WITH OUR ATTORNEY PURSUANT TO 551.071 OF THE GOVERNMENT CODE AND WE WILL DISCUSS LEGAL ISSUES AND LEGAL ISSUES WILL BE CITY OF AUSTIN VERSUS LUMBERMENS INVESTMENT CORPORATION CAUSE NO. 99-13013 PENNEDDING IN THE TRAVIS COUNTY DISTRICT COURT ALSO KNOWN AS THE SAND BEACH RESERVE PROPERTY. CIRCLE C LAND CORP VERSUS CITY OF AUSTIN, CAUSE NO. 97-13994 IN THE 53RD JUDICIAL DISTRICT. ITEM 12 WHICH RELATES TO A RESOLUTION AUTHORIZING CONSTRUCTION CONTRACT WITH GREAT SOUTHWESTERN CONSTRUCTION COMPANY OF CASTLEROCK, COLORADO. AND THAT -- I'LL ENTERTAIN A MATION TO RECESS FOR THOSE ITEMS.

>>GOODMAN: SO MOVED.

>>MAYOR WATSON: I'LL SECOND THE MOTION. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES. WITH COUNCILMEMBER SLUSHER TEMPORARILY OFF THE DAIS. WE'RE RECESSED INTO EXECUTIVE SESSION. FOR THOSE WATCHING, THE NEXT ITEM THAT IS SET FOR A TIME CERTAIN IS AT 3:00. WE WILL BE BACK RIGIGHT AROUND 3:00. ACDC,.

>>MAYOR WATSON: THAT'S NOT ONE THAT -- [INAUDIBLE].

>>MAYOR WATSON: I WILL CALL THE AUSTIN CITY COUNCILL MEETING BACK TO ORDER. THE FIRST ITEM THAT WE WILL TAKE UP, COUNCIL, WILL BE ITEM NO. 78. WHICH IS THE APPROVAL OF APPOINTMENTS OF COUNCILMEMBERS TO COUNCIL SUBCOMMITTEES, AS REPRESENTATIVES OF OTHER GOVERNMENTAL ENTITIES. OR INTERGOVERNMENTAL ENTITIES. YOU HAVE IN FRONT OF YOU, COUNCIL, A LIST OF CITY COUNCIL SUBCOMMITTEES, THIS IS BASED UPON INPUT THAT I HAVE RECEIVED FROM INDIVIDUAL MEMBERS OF THE COUNCIL REGARDING WHO WOULD SERVE ON WHICH COMMITTEES. THE ONLY THING ON HERE THAT I THINK THERE'S -- I THINK THERE'S CONSENSUS ON ALL OF THIS, WE CAN JUST GO FORWARD WITH THOSE, THE ONE EXCEPTION IS THAT THERE'S BEEN SOME DISCUSSION ABOUT WHETHER WE NEED THE MILLER REDEVELOPMENT SUBCOMMITTEE SINCE THE WORK OF THE PREVIOUS SUBCOMMITTEE HAS REACHED THE POINT WHERE THIS COUNCIL AS A WHOLE IS AT THE POINT OF ACCEPTING THE MASTER PLAN, LISTENING TO A RECOMMENDATION, I THINK WE ARE GOING TO GET FROM RMMA TO -- TO GET OUT ON AN R.F.P. FOR A MASTER DEVELOPER AND REALLY -- AND WE ARE GETTING READY TO CREATE A COMMUNITY STEERING COMMITTEE, I'M NOT SURE THAT'S THE RIGHT PHRASE, BUT TO DO THAT. SO, REALLY, FROM THIS POINT FORWARD THE DECISIONS WILL BASICALLY BE DECISIONS OF THE COUNCIL AS A WHOLE. I THINK SEVERAL PEOPLE HAVE INDICATED TO ME THEY DON'T SEE A NEED FOR THAT SUBCOMMITTEE. IF WE ARE GOING TO HAVE SUCH A SUBCOMMITTEE, THEN THOSE WOULD BE THE MEMBERS BASED UPON INPUT. SO I WILL ENTERTAIN A MOTION WITH REGARD TO THE SUBCOMMITTEES AND OTHER GOVERNMENTAL ENTITIES. THE MOTION IS TO APPROVE BY THE MAYOR PRO TEM. IS THERE A SECOND?

>> SECOND.

>>MAYOR WATSON: SECONDED BY COUNCILMEMBER THOMAS. ANY DISCUSSION? COUNCILMEMBER SLUSHER?

>>SLUSHER: MAYOR, I GUESS THAT I WOULD BE INTERESTED IN THE -- IN A SHORT AMOUNT OF DISCUSSION ON THE MUELLER SUBCOMMITTEE BECAUSE I DO CONCUR WITH SOME OF YOUR COMMENTS ABOUT IT PERHAPS JUST BEING A COMMITTEE OF THE WHOLE BECAUSE I THINK THAT'S SOMETHING WE ARE ALL VERY INTERESTED IN. [INAUDIBLE] ON ALL OF THEM, BUT JUST SEEMS TO ME WHERE IT WOULD BE A COMMITTEE AS A WHOLE.

>>MAYOR WATSON: MY PERSONAL VIEW IS SO MUCH HAS GONE INTO IT, THAT'S WHERE WE ARE. I AM WILLING TO SERVE IF WE HAVE A SUBCOMMITTEE, BUT IT DOESN'T MATTER TO ME. MAYOR PRO TEM?

>>GOODMAN: I WOULD ACCEPT THAT AS A FRIENDLY AMENDMENT.

>>MAYOR WATSON: COUNCILMEMBER THOMAS WOULD YOU CONSIDER IT A FRIENDLY AMENDMENT TO WITHDRAW THE RMMA TO A REDEVELOPMENT SUBCOMMITTEE? SO THE MOTION WILL BE TO ADOPT THE CITY COUNCILL SUBCOMMITTEES AND OTHER GOVERNMENTAL ENTITIES, INCLUDING THE ELLER REDEVELOPMENT SUBCOMMITTEE.

>>GRIFFITH: TELL ME AGAIN WHY THAT'S BEING SUGGESTED?

>>SLUSHER: IT WILL BE A COMMITTEE AS A WHOLE BECAUSE WE ARE ALL INTERESTED AND IT'S GOTTEN TO THE POINT WHERE -- WHERE THE MASTER PLAN IS COMING TO US AND I WOULD JUST -- I WOULD PREFER TO BE IN ON THOSE DISCUSSIONS IF WE HAVE THEM, BUT NOT ON THE SUBCOMMITTEE. THAT'S NOT -- NOT JUST FOR MY PERSONAL CONVENIENCE, BUT I REALLY THINK THAT THOSE ISSUES NEED TO COME TO US ALL. WE ARE GOING TO ALL HEAR ABOUT THEM, WE ARE ALL VERY CONCERNED ABOUT ITMENT SEEMS TO ME THE SUBCOMMITTEE IN THIS INSTANCE WOULD BE AN EXTRA LAYER THAT WE DON'T NEED.

>>MAYOR WATSON: ALL RIGHT. THE MOTION HAS BEEN MADE AND SECONDED. ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES ON THE SUBCOMMITTEES AND OTHER INTERGOVERNMENTAL ENTITIES. COUNCIL, THANKS FOR THE WAY YOU'VE HELPED PUT ALL OF THAT TOGETHER. THAT TAKES CARE OF ITEM NO. 78, THAT WILL TAKE US TO ITEM NO. 12. COUNCIL, WHAT WE WILL ALSO DO, JUST --.

>>GARZA: MAYOR, WHAT YOU HAVE BEFORE YOU IS A -- A TRANSMISSION CONTRACT, OUR RECOMMENDATION IS THAT THE -- WE RECOMMEND TO SOUTHWESTERN CONSTRUCTION CORPORATION, WE'VE -- THIS IS AS A RESULT OF REALLY A SECOND BID. WE HAVE REBID THIS PROJECT ONCE. THERE ARE SOME TIME CONSTRAINTS. WE NEED TO HAVE THIS PROJECT COMPLETED BY DECEMBER 15TH, SO I WANTED TO JUST ALLOW THE COUNCIL THAT THEY HAVE THE SECOND TIME WE HAVE GONE THROUGH A REBID PROCESS. TIME IS OF THE ESSENCE, WE HAVE CONTRACTS AND PENDING COMMITMENTS THAT WE NEED TO MAKE AS A CITY AT AUSTIN ENERGY. SO OUR RECOMMENDATION IS FOR SOUTHWESTERN CONSTRUCTION COMPANY BE AWARDED THIS CONTRACT. WE HAVE WE HAVE SPECIFICALLY WAIVED THE REQUIREMENT OF THE M.B.E. W.B.E. ORDINANCE, WE HAVE DETERMINED THE BEST INTEREST OF THE CITY IS TO AWARD THIS CONTRACT TO THE LOW BIDDER. WE HAVE HAPPY TO ANSWER ANY QUESTIONS THE COUNCIL MIGHT HAVE ON THIS ITEM.

>>MAYOR WATSON: WE CAN ASK QUESTIONS NOW OR GO THROUGH THE NUMBER OF PEOPLE SIGNED UP TO SPEAK. MY RECOMMENDATION IS TO GO THROUGH THE NUMBER OF PEOPLE SIGNED UP TO SPEAK AND THEN HAVE A DISCUSSION. PEOPLE THAT HAVE SIGNED UP TO SPEAK. WHAT I AM GOING TO DO IS CALL OUT THREE NAMES AT A TIME, ASK THAT YOU PLEASE MAKE YOUR WAY TOWARD THE MICROPHONE. BENTON WHEATLY, FOLLOWED BY ROBERT MARTINEZ, AND THEN J JEFF FREED MAN. -- FRIEDMAN.

>> THANK YOU, MEMBER OF THE COUNCIL, MY NAME IS BEN WHEATLY, I'M AN ATTORNEY HERE IN TOWN, I HAVE AN 7 OPPORTUNITY TO REPRESENT GREAT SOUTHWESTERN. WE WOULD LIKE TO ASK YOU TO APPROVE THE CONTRACT AND AS THERE ARE A NUMBER OF FOLKS I THINK THAT ARE HERE TODAY TO TRY TO ADDRESS SOME OF THEIR CONCERNS, WE WOULD LIKE TO ADDRESS SOME OF THE THINGS THAT WE THINK ARE POSITIVE ABOUT THIS CONTRACT TO HEAD OFF SOME OF THEIR QUESTIONS. INTERESTINGLY, IF THIS CONTRACT WOULD HAVE BEEN LET AS LATE AS MAY 11TH, 2000, WE WOULDN'T HAVE HAD ANY OF THE M.B.E. ISSUES BECAUSE GREAT SOUTHWESTERN WAS IN FACT AN M.B.E. OWNED BY MR. MARTINEZ. HOWEVER, BECAUSE OF HIS SUCCESSFUL BUSINESS AND IN FACT A SUCCESS STORY, HE WAS ABLE TO SELL IT TO A PUBLICLY TRADED COMPANY, BUT I THINK IT'S IMPORTANT TO KNOW THAT THE GOALS OF M.B.E. HAVE BEEN MET, THEY ARE HERE IN THE FORM OF MR. MARTINEZ TODAY AND THAT HE IS STILL THE PRESIDENT, CHIEF EXECUTIVE OFFICER AND THE PERSON THAT'S IN CHARGE OF THE DECISION MAKING WITH THIS ORGANIZE. SECOND, THE ITEM THAT IS MOST IMPORTANT TO LOOK AT IN TERMS OF M.B.E. COMPLIANCE AND ADDRESSING THOSE ISSUES IS MR. MARTINEZ ONLY HAD 10 DAYS TO TRY TO PUT TOGETHER HIS BID PACKAGE. THIS IS A FAIRLY COMPLEX PROJECT WITH A LOT OF MONEY INVOLVED, LOTS OF SUBCONTRACTORS. SO THAT HE -- GREAT SOUTHWESTERN ENDEAVORED, DID THE BEST THEY COULD, I THINK THAT THEY DID VERY WELL, WE DEMONSTRATED THAT DURING THE BID PROTESTS THAT OCCURRED LAST WEEK WHERE ORIGINALLY THE BID WAS TURNED DOWN AND -- AND PRUDENT TO OUR PROTESTS WE DID CONVINCE THEM THAT WE HAD ATTEMPTED GOOD FAITH COMPLIANCE. I WANT TO ADDRESS SOME TECHNICAL ASPECTS OF THAT. ONE OF THE LETTERS FROM THE ATTORNEY, MS. VOSS WHERE SHE DISCUSSED OUR COM APPLIANCE, SHE NOTED THAT GREAT SOUTHWEST, PAGE 2 PARAGRAPH 4 OF HER LETTER, JUNE 22ND, HAD NOT CONTACTED ONE OF THE TWO CASE AND SHAFT COMPANIES. THAT IN FACT IS NOT THE CASE. THEY DID CONTACT TWO OF THE M.B.E. CASE AND SHAFT CONTRACTORS PER THE REQUIREMENTS AND WE HAVE THE DOCUMENTARY PROOF AND SUBMITTED THAT WITH OUR BID PROTEST. THE IMPORTANT THINGS TO REMEMBER ABOUT THIS ARE THAT MR. MARTINEZ IS THE EMBODIMENT OF M.B.E.. IF YOU ARE GOING TO LOOK AT IT THAT WAY. SECONDLY, FROM A PURE FINANCIAL STANDPOINT, IN YOUR ALL'S DUTY TO YOUR TAXPAYERS, HIS COMPANY'S BID WAS APPROXIMATELY HALF A MILLION DOLLARS LOWER THAN THE NEXT LOWEST BIDDER. WE BELIEVE THAT IN ITSELF IS THE REASON TO GO WITH HIS CONTRACT. THE -- FINALLY, WE WANT TO ADDRESS THIS, BECAUSE IT'S VERY IMPORTANT, WE BELIEVE THAT THE CITY CODE 5.7 IS LIKELY UNCONSTITUTIONAL AS CODES LIKE IT IN OTHER LOTTERIES HAVE BEEN TESTED. IF YOU LOOK AT THE HOPWOOD CASE HERE IN TEXAS AND GREAT SOUTHWESTERN IS INTERESTED IN SEEING THIS PROCESS THROUGH BECAUSE THEY DO BELIEVE THAT THEY HAVE A RIGHT TO THIS CONTRACT. [BUZZER SOUNDING].

>> GREAT SOUTHWESTERN IS READY TO GO TO WORK AND MR. MARTINEZ CAN ADDRESS SOME OF THE M.B.E. ISSUES.

>>MAYOR WATSON: THANK YOU, MR. MARTINEZ.

>> YES, SIR.

>>MAYOR WATSON: IT'S YOUR TIME TO TALK.

>> THANK YOU VERY MUCH, THANK YOU FOR THE OPPORTUNITY TO ADDRESS THE COUNCIL. I WOULD LIKE TO REITERATE A COUPLE OF THINGS THAT WERE SAID ABOUT OUR COMPANY. I AM A GRADUATE OF A SMALL BUSINESS ADMINISTRATION PROGRAM WHICH IS INTENDED TO ASSIST MINORITY BUSINESSES BECOME SUCCESSFUL IN THE REGULAR COURSE OF BUSINESS, WHICH I THINK WE HAVE DEMONSTRATED. AND HAVING BEEN A RESULT OF THAT PROGRAM, WE VERY DEFINITELY TAKE SERIOUS THE OBLIGATION TO TRY AND SUBCONTRACT WITH MINORITY CONTRACTORS WHEN WE CAN. IN THIS PARTICULAR CASE, ONE OF THE FIRST THINGS WE DID, IN EFFECT BECAUSE OF THE MEMORIAL DAY WEEKEND, WE ONLY HAD REALLY NINE WORKING DAYS TO PUT THIS THING TOGETHER. WE IMMEDIATELY SENT OUT A FAX BROADCAST TO ALL THE MINORITY CONTRACTORS THAT WERE AT THE TIME WHAT WE THOUGHT WERE APPROPRIATE TO BE REQUESTED TO BID. IT WAS AN OVERSIGHT BECAUSE ONE OF THOSE CONTRACTORS DIDN'T HAVE A FAX NUMBER, THE SECRETARY APPARENTLY LEFT OFF THREE OTHER CONTRACTORS AFTER THAT -- THAT LIST ON THAT PARTICULAR SECOND: BUT IT BECAME IMMATERIAL BECAUSE DUE TO THE TIME CONSTRAINTS WE WERE ALSO TAKING BIDS FROM CASE CONTRACTORS TO DO THE WHOLE TURNKEY FOUNDATIONS. WE SOLICITED BIDS FROM ALL -- TWO OF THE DRILLING CONTRACTORS HERE IN AUSTIN THAT WERE ON THAT LIST. CONTRARY TO WHAT THE MINORITY SMALL BUSINESS DEPARTMENT HAD SAID, WE DID CONTACT A-TEX DBE, INC., TALKED TO A SELENA ON MAY 18TH. SHE SAID THAT MR. BRIGGS WOULD CALL US BACK. THEN WE SENT THE NOTICE ON THE 19TH, CALLED AGAIN ON MAY 26TH, GOT A VERBAL NO BID THAT DAY. I THINK WE REALLY HAVE DEMONSTRATED GOOD FAITH EFFORT SPECIFICALLY WITH THE PORTIONS THAT WE WERE GOING TO SUBCONTRACT OUT TO DRILLING. AS IT TURNS OUT, OUR SUBCONTRACTOR DID ALLOW US TO SUBMIT THE LOW BID. WE WOULD LIKE THIS OPPORTUNITY TO PROCEED ON THIS CONTRACT. I APPRECIATE YOUR INDULGENCE IN THAT.

>>MAYOR WATSON: THANK YOU, MR. MARTINEZ. JEFF FRIEDMAN, FOLLOWED BY JACK TAYLOR. MR. TAYLOR, ARE YOU HERE? ARE YOU DONATING YOUR TIME?

>> YES.

>>MAYOR WATSON: ALL RIGHT. MIKE DUBIA? DID I EVEN COME CLOSE TO YOUR LAST NAME? YOU ARE DONATING TIME. SHELLY PELPIN? YOU ARE DONATING TIME? SUZANNE TAYLOR. YOU ARE DONATING YOUR TIME? ALL RIGHT. MR. FREIDMAN THAT WILL GIVE US UP TO 15 MINUTES IF YOU NEED IT, IS HANK SCHRUM. YOU INDICATED THAT YOU WISH TO DONATE YOUR TIME, BUT UNDER OUR RULES, HE'S LIMITED TO 15 MINUTES TOTAL TIME EVEN WITH THE DONATION, SO I WILL CALL ON YOU AFTER HIM IF YOU WISH TO SPEAK. MR. FRIEDMAN.

>> THANK YOU, MAYOR, MEMBERS OF THE COUNCIL. SOME OF YOU HAVE HEARD THIS ARGUMENT BEFORE AND OBVIOUSLY TO YOU KNEW COUNCILMEMBERS UNLESS YOU ARE A GLUTTON FOR PUNISHMENT AND WEREN'T WATCHING A COUPLE OF YEARS AGO WHEN WE WENT THROUGH THIS EXERCISE, WE HAVE ON BEHALF OF RED SIMPSON, WHO IS ALREADY WITH CONTRACTS WITH THE CITY OF AUSTIN, HAVE A GREAT CONCERN OVER THE APPROACH TAKEN ON THIS CONTRACT THAT IS NOW BEFORE YOU. THE CITY HAS REQUIRED THAT ANY BID AS WRITTEN IN THIS PROSPECTUS COMPLY WITH THE MINORITY AND WOMEN BUSINESS ENTERPRISE CLAIM. THE BIDS WERE SUBMITTED, NO QUESTION THERE'S A DIFFERENCE IN THE BID PRICE, BUT CITY STAFF AT SMRB, BR, EXCUSE ME, AND AUSTIN ENERGY DETERMINED THAT GREAT SOUTHWESTERN'S BID WAS IN NON-COMPLIANCE. AUSTIN ENERGY THEN RECOMMENDED THE SECOND LOW BID, HE RED SIMPSON, INC., SUBMITTED THAT TO THE ELECTRIC UTILITY COMMISSION. THE ELECTRIC UTILITY COMMISSION LOOKED AT IT AND RECOMMENDED RED SIMPSON, INC.. I AM A LITTLE DISTRESSED THAT THAT HISTORY WAS NOT PART OF YOUR COUNCIL AGENDA OR BACKUP. THE INFORMATION IN THE BACKUP SEEMS TO INDICATE THAT AUSTIN ENERGY HAS ALWAYS GONE FORWARD STRICTLY WITH GREAT SOUTHWEST. WE ARE NOT HERE TO TELL YOU THAT GREAT SOUTHWEST IS A BAD COMPANY. WE CERTAINLY HAD HAVE NO INTEREST IN DOING SO, DON'T BELIEVE THAT THAT IS GERMANE. WHAT IS GERMANE IS THAT THIS CITY MADE A COMMITMENT TO A MINORITY AND WOMEN OWN BUSINESSED ORDINANCE TO DO THE BEST FOR LOCAL MINORITY SUBCONTRACTORS WHEREVER POSSIBLE. THE FACT THAT THE HEARINGS OFFICER DID FIND THAT THE BID WAS IN NON-COMPLIANCE, JUST READ YOUR SUMMARY, IS EVIDENCE ALONE WHY THIS BID SHOULD BE REJECTED. I AM A LITTLE BIT DISTRESSED THAT THERE IS A REQUEST FOR A WAIVER BECAUSE THERE IS NO WAY A WAIVER UNDER THESE CIRCUMSTANCES COULD BE IN THE BEST INTEREST OF THE MINORITY GROUP PROCUREMENT POLICY. IF YOU IGNORE THE RULES SET FORTH BY THIS COUNCIL AND THIS ADMINISTRATION ON WHY WE WANT TO INCLUDE AS MANY MINORITY AND WOMEN BUSINESSES AS WE CAN, IT'S A -- IF YOU THROW THIS BID OUT, OUR BID, RED SIMPSON, WHICH WAS IN COMPLIANCE TO GIVE IT TO A NON-COMPLIANCE, YOU ARE TELLING EVERY BIDDER FROM HERE ON IN EFFECTIVELY THAT ALL THAT MATTERS IS THE LOWEST DOLLAR. THIS COUNCIL, YOUR PREZ SAYS SORES I -- PREDECESSORS HAS A STRONG -- THE ISSUE IS NOT SET ASIDE, NOT AFFIRMATIVE ACTION, BUT HOW CAN YOU BEST INCLUDE. THERE'S NO ONE WHO WAS REJECTED BECAUSE THEY DON'T MEET THE GOALS. THERE IS NOBODY WHO WAS REJECTED BECAUSE THEY DON'T HAVE A CERTAIN PERCENTAGE OF MINORITY SUBCONTRACTORS. THERE IS A REJECTION, IF YOU DON'T EVEN MAKE A GOOD FAITH EFFORT. THAT IS TOTALLY DIFFERENT FROM THE THREATS THAT WE ARE GOING TO BE SUED UNDER HOPWOOD. WE ARE NOT AN AFFIRMATIVE ACTION PROGRAM. WE ARE NOT A SET ASIDE PROGRAM. FROM A LEGAL STANDPOINT WE ARE HERE TO SAY WE WANT YOUR GOOD FAITH EFFORT AND WE WANT YOU TO COMPLY AND TRY TO MEET THESE GOALS IF YOU CAN. NO EFFORT ON EITHER HAND WAS MADE. THAT'S WHAT WAS FOUND BY SUSAN VOSS THE HEARINGS OFFICER. I AM SURE THAT THERE IS A CONCERN BY THE COUNCIL IN TERMS OF TWO ISSUES THAT I CAN IDENTIFY. ONE OF COURSE IS THIS THREATENED LAWSUIT, WHICH MR. WHEATLY REFERRED TO. AND MORE IMPORTANTLY THE COST TO THE CITY. THE COST TO THE CITY IS SOMETHING THAT I KNOW YOU TAKE SERIOUSLY. BUT IT IS NOT IN THE BEST INTEREST OR THE LONG-TERM INTERESTS OF THIS COMMUNITY TO PRETEND THE MINORITY PROCUREMENT PROGRAM DOESN'T EXIST AT THIS TIME. RED SIMPSON, INC., IS PREPARED TO START WORK AUGUST 1. IT'S COMMITTED TO COMPLETING THIS PROJECT ON TIME. YOU CAN TALK TO AUSTIN ENERGY, RED SIMPSON HAS BEEN DOING WORK FOR THE CITY OF AUSTIN FOR SOME TIME. THE CONTRACT THAT THEY'VE HAD IN THE PAST AND CURRENTLY WORKING UNDER HAS NOT BEEN A PROBLEM FOR THE CITY. AS EVIDENCED BY THE FACT THEY WERE RECOMMENDED ON THIS PARTICULAR PROJECT. THE FACT THAT THE FIRST BIDS WERE THROWN OUT AND A RUSH BID HAD TO COME BACK IN TO TRY TO KEEP THIS TIME FRAME BECAUSE I KNOW THE CITY HAS A CONTRACTUAL OBLIGATION TO THE NEW POWER PLANT SHOULD NOT NEGATE THE FACT THAT WE HAVE AN OBLIGATION TO LIVE UP TO THE MINORITY AND WOMEN BUSINESS ENTERPRISES. WE ALSO HAVE A CONCERN THAT WE PROBABLY WOULDN'T EVEN HAVE KNOWN ABOUT EXCEPT THAT IT INVOLVED US. GREAT SOUTHWESTERN HAD TO BE REPLACED ON THE JOB THAT THEY COULD NOT COMPLETE, WE WERE REPLACED BY RED SIMPSON, INC. THAT RAISES A SIGNIFICANT QUESTION ON THE ABILITY TO PERFORM IN A TIMELY FASHION AS THIS COUNCIL IS UNDER CONTRACT TO DO WITH OUR PARTNERS IN THE NEW POWER PLANT. THAT INFORMATION WAS TRANSMITTED TO THE CITY STAFF AS WE LEARNED ABOUT IT. WE ARE ALSO AWARE, OF COURSE, THAT THERE IS THE -- A PROJECT THAT HAS NOT COME IN ON TIME IN DENTON, FOR WHATEVER REASON, BUT ONE OF THE ARGUMENTS THAT STAFF HAS MADE, AND I BELIEVE IS ENCOMPASSING WITH WHAT THE CITY MANAGER RECOMMENDED ON THE WAIVER, IS THAT WE HAVE TO HAVE THIS PROJECT DONE, ABSOLUTELY, BY DECEMBER 15TH. WE HAVE A HISTORY NOW THAT SAYS MAYBE YOU ARE TAKING TOO BIG OF A RISK. IF YOU BALANCE THE RISK OF ADDITIONAL MONEY TO RED SIMPSON, GIVE THEM THAT CONTRACT AND GIVE THE BID TO GREAT SOUTHWEST AND RUN AFOUL OF THE TIME DEADLINE AND WIND UP WITH THE CITY OF AUSTIN PAYING DRAMATIC DAMAGES FOR NOT HAVING THE LINES READY, THE RISKS BECOME CLEAR. YOU HAD BETTER GO WITH THE CONTRACTOR THAT CAN PERFORM AND WILL PERFORM IN A TIMELY FASHION. I'M -- AS AN ASIDE, I WOULD HAVE TO SAY I WAS A LITTLE TAKEN ABACK BY THE COMMENTS THAT GREAT SOUTHWESTERN IS WHAT MINORITY BUSINESSES ARE ALL ABOUT. BECAUSE IF THAT'S THE CASE, HOW COULD THEY NOT FOLLOW THROUGH ON A MINORITY COMPLIANCE? THERE'S NO EXCUSE. THE FACT THAT THEY HAVE BEEN TAKEN OVER BY A PUBLICLY TRADED COMPANY, THAT'S GREAT. THAT'S WONDERFUL FOR THE PREVIOUS OWNERS. BUT YOU CAN'T HOLD YOURSELF OUT AS AN EXAMPLE OF MINORITY BUSINESS EXPERTISE AND THANK THEM FOR -- FOR CREATING YOU, ON THE OTHER HAND SAYING IF WE DON'T GET YOUR CONTRACT NOW, WE ARE GOING TO SUE YOU, TRY TO PUT AN END TO YOUR MINORITY PROCUREMENT. I DON'T THINK THEY MEANT IT THAT WAY, THAT'S CERTAINLY THE WAY IT SOUNDED. ALL OF THE ISSUES BEFORE YOU DEAL WITH THE COMFORT ZONE OF THE CITY STAFF. WHO CAN GET THIS JOB DONE. AND WITHOUT QUESTION, AUSTIN ENERGY RECOMMENDED RED SIMPSON, INC. THEY TOOK THE RECOMMENDATION THAT GREAT SOUTHWEST WAS NOT IN COMPLIANCE AND THEREFORE NOT QUALIFIED, THAT'S WHAT THE HEARINGS OFFICER FOUND AND THE ELECTRIC UTILITY COMMISSION RECOMMENDED TO THE COUNCIL THAT THEY AWARD THE CONTRACT TO RED SIMPSON. I DON'T WANT TO BELABOR THE POINT, MY CHALLENGE IS STRICTLY A WAIVER OF THIS TYPE, UNDER THESE CIRCUMSTANCES, OPENS THE DOOR TO FORCE THIS COUNCIL TO APPROVE MORE AND MORE WAIVERS AND DILUTE AND POSSIBLY END WHAT WE HAVE ALL WORKED FOR SO LONG AND THAT IS TO HAVE A VIABLE OPPORTUNITY FOR MINORITY AND WOMEN BUSINESSES IN THIS AREA TO PARTICIPATE IN CITY CONTRACTS. I URGE YOU TO FOLLOW THE ORIGINAL RECOMMENDATION OF AUSTIN ENERGY IS IT THE RECOMMENDATION WITH THE ELECTRIC UTILITY COMMISSION, AND THE FINDING OF THE HEARINGS OFFICER. AND FIND THAT GREAT SOUTHWESTERN'S BID WAS NOT IN COMPLIANCE AND THAT THE BID SHOULD BE AWARDED AND THIS CONTRACT SHOULD BE AWARDED TO RED SIMPSON, INC. BELIEVE IT OR NOT, MAYOR, I TALKED LESS THAN NINE MINUTES, I'M GIVING BACK MY TIME.

>>MAYOR WATSON: I DON'T KNOW WHAT TO DO [LAUGHTER].

>> WELL, I CAN CONTINUE IF YOU WANT, IF THAT WOULD HELP.

>>MAYOR WATSON: I'M JUST WORRIED THAT THAT'S -- THAT IT'S SO OUT OF SYNC.

>> YOU WANT TO KNOW WHAT I HAVE PLANNED FOR LATER, DON'T YOU?

>>MAYOR WATSON: YEAH, YEAH, I KIND OF FEEL LIKE I NEED TO KNOW. [ONE MOMENT PLEASE FOR CHANGE IN CAPTIONERS]

>> WE'VE BEEN ON THE CITY PROPERTY HERE DOING YOUR WORK NOW FOR THE PAST FIVE YEARS. CURRENTLY UNDER THE EXISTING CONTRACT FOR ABOUT A YEAR AND A HALF. WE HAVE PERSONAL, PERSONNEL WHO LIVE HERE. OBVIOUSLY THESE PERSONNEL WOULD BE DIFFERENT FROM THE PEOPLE DOING THIS PROJECT WOULD BE CERTAINLY BE HERE IN A SUPPORT ROLE SHOULD THEY BE NEEDED FOR THE TIME CONSTRAINTS AND WE UNDERSTAND THIS IS A VERY, VERY TIME SENSITIVE PROJECT. ONE OF THE THINGS THAT I JUST WANTED TO -- TO MENTION IS THAT IN OUR TIME HERE OF SERVICE TO AUSTIN ENERGY, WE HAVE MET OR EXCEEDED THE M.B.E. REQUIREMENTS, AND IN FACT WE ARE -- WE ARE DOING BUSINESS WITH MINORITY AND WOMEN CONTRACTORS RIGHT NOW TO THE TUNE OF ABOUT 70 TO 80,000 DOLLARS A MONTH. SO SOMEWHERE CLOSE TO A MILLION OR A LITTLE SHY OF A MILLION DOLLARS A YEAR. I MENTION THAT TO JUST INDICATE THAT WE DO HAVE A STRONG COMMITMENT TO SUPPORT OF THE ORDINANCE AND TO THE INITIATIVES THAT THIS COUNCIL HAS SET FORTH FOR CONTRACTORS COMING IN AND DOING BUSINESS WITH THE CITY AT AUSTIN ENERGY AND OTHER PROJECTS. WE SUPPORT THAT INITIATIVE. WE UNDERSTAND THE IMPORTANCE FOR THE DEVELOPMENT OF THE TYPE OF ATMOSPHERE THAT AUSTIN HAS AND HAS BECOME TO BE KNOWN FOR, AND THAT IS ONE OF GREAT DIVERSITY AND SUPPORT FOR ALL PEOPLE TO COME HERE AND FIND THE WONDERFUL QUALITY OF LIFE THAT IS -- IS TO BE FOUND HERE IN THE CITY OF AUSTIN. SO I THINK THAT -- THAT THE TWO ISSUES OF IMPORTANCE HERE ARE COMPLETION OF THE PROJECT ON TIME, AND I CERTAINLY WOULD STAND BEFORE YOU TODAY AND COMMIT THE RESOURCES OF OUR ENTIRE ORGANIZATION, ABOUT 1700 OR 1800 PEOPLE TO MAKING SURE THAT THIS PROJECT IS COMPLETED ON TIME, AND THAT THE -- AND THAT AUSTIN ENERGY MEETS THEIR OBLIGATIONS. THE OTHER THING THAT I WOULD SAY TO YOU IN CLOSING IS THAT WE ARE VERY MUCH A PROPONENT OF THE PARTICIPATION OF MINORITY SUBCONTRACTORS AND WE DO, THROUGH OUR CURRENT CONTRACTS AS I'VE ALREADY DESCRIBED TO YOU, SUPPORT THOSE INITIATIVES AND WE CERTAINLY WOULD IN THIS PROJECT. AND OF COURSE OUR BUSINESS PLAN THAT WE SET FORTH IS A PART OF OUR BID EVIDENCE THAT. IN CLOSING THANK YOU VERY MUCH FOR YOUR PAST BUSINESS. I HOPE THAT YOU WILL SEE FIT IN YOUR WISDOM TO FAVOR US WITH THIS CONTRACT. AND WITH THAT I'LL CLOSE. THANK YOU.

>>MAYOR WATSON: DELORES H. HUNTER FOLLOWED BY DAN HUNTER JUNIOR AND THEN FRANK FUENTES.

>> MR. MAYOR AND COUNCILMEMBERS, MY NAME IS DELORES HUNTER AND I REPRESENT KIRK WOOD AND HUNTER A MINORITY SUB WITH RSI. AND I STAND BEFORE YOU TODAY AFTER LISTENING TO SOME PREVIOUS TESTIMONY. I WANT YOU TO KNOW THAT I AM THE LIVING PER SON IF I INDICATION OF THE DIFFERENCE BETWEEN GOOD FAITH AND GOOD FAITH EFFORT. I REPRESENT GOOD FAITH BECAUSE I HAPPEN TO BE A PART OF A PLAN AND A PART OF AN ORGANIZATION THAT IS COMMITTED TO SERIOUSLY BIDDING AND INVOLVING WOMEN AND MINORITY OWNED BUSINESSES IN THEIR ONGOING WORK, AND I HAVE PEOPLE WHO ARE COMMITTED TO KIRK WOOD AND HUNTER. THEIR FAMILIES ARE LOOKING TO KIRKWOOD AND HUNTER AS THEIR MEANS OF LIVELIHOOD, AND I FEEL A PERSONAL AFRONT AND I THINK THAT THE CITY FATHERS WHO DEVELOPED THE MINORITY ORDINANCE WOULD FEEL IT AN AFRONT IF THE THINGS THAT THEY DEEMED WORTHY, SIGNIFICANT AND RELEVANT ENOUGH AS AN ORDINANCE WOULD BE CONSIDERED LIGHTLY AND TAKEN LIGHTLY ENOUGH TO BE USED ONLY ON A WHIM, ONLY ON OCCASION, OR ONLY RANDOMLY OR JUST WHEN IT IS CONVENIENT. I THINK THAT CERTAINLY THEY WOULD BE VERY, VERY HURT IF THEY ENVISIONED THIS ORDINANCE SO FLAGRANTLY DISEM BOWLED BY BEING ALLOWED TO HAVE CONTRACT ACCEPTED WITH .29% MINORITY PARTICIPATION. AND IF I CAN UNDERSTAND FIGURES A LITTLE BIT, I MEAN IF YOU GET LESS THAN A HALF OF ONE PERCENT, THAT'S NOT SHOWING VERY MUCH CONCERN AND VERY MUCH COMMITMENT TO THE ORDINANCE. I THINK THAT IT MAKES A MOCKERY OF THE ORDINANCE AND I FEEL THAT REGARDING THE ISSUE OF TIMELINESS, YOU HAVE ALREADY BEEN SHARED WITH THE FACTS REGARDING THE WORK HISTORY IN TERMS OF PERFORMANCE OF THE GREAT SOUTHWESTERN CONTRACTOR, BUT I CAN SPEAK WITH CERTAINTY TO THE FACTS THAT CAN BE PROVEN BY CITY RECORDS ON A COMPANY, RSI, WHICH HAS A RECORD OF PROOFEN ABILITIES TO UTILIZE THE SKILLS AND ABILITIES OF MINORITY AND WOMEN OWNED COMPANIES AS THEY CONTRACT CITY JOBS. I ALSO CAN STATE WITH VERY GOOD FACT THAT THIS COMPANY HAS DEMONSTRATED THE CAPACITY TO COMPLETE THE CONTRACTED WORK IN THE TIME FRAME ALLOCATED. RSI ALSO HAS BEEN COMMITTED TO MAKING CERTAIN THAT THE COMPANIES THAT THEY MENTOR AND THE CITY HAS THROUGH SMBR DETERMINED TO MENTOR MINORITY COMPANIES -- [BUZZER SOUNDS] -- WELL, AGAIN, I JUST WANT TO REMIND YOU THAT I DO STAND BEFORE YOU AS AN EXAMPLE OF GOOD FAITH RATHER THAN GOOD FAITHH EFFORT. THANK YOU.

>>MAYOR WATSON: THANK YOU. DAN HUNTER.

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: ALL RIGHT. LET ME RUN THROUGH THESE REAL QUICKLY. MR. FUENTES, IF YOU WILL MAKE YOUR WAY UP. MR. HERNALES, YOU ARE DONATING YOUR TIME.

>> YES, SIR.

>>MAYOR WATSON: IS MR. LOPEZ HERE? EDDIE LOPEZ? ARE YOU DONATING YOUR TIME?

>> [INAUDIBLE].

>>MAYOR WATSON: MR. CORTEZ? AND MR. HUNTER. MR. FUENTES, YOU WILL HAVE UP TO 15 MINUTES IF YOU NEED IT.

>> THANK YOU, MAYOR. I'LL TRY TO BE BRIEF.

>>MAYOR WATSON: HANG ON ONE SECOND. PLEASE SET THE CLOCK FOR 15 MINUTES. GO AHEAD.

>> MAYOR, COUNCIL, CITY MANAGER, FRANK FUENTES WITH THE HISPANIC CONTRACTORS ASSOCIATION AND LET ME THANK YOU FOR GIVING US THE OPPORTUNITY TO SPEAK OUR CONCERNS IN FRONT OF YOU TODAY. LET ME START BY RECITING SOME FACTS. FACT, GREAT SOUTHWESTERN CONSTRUCTION WAS REJECTED FOR NON-RESPONSIVE BY THE CITY OF AUSTIN'S DEPARTMENT OF DSMBR, FOR FAILURE IN NOT MEETING THE GOALS AND BY [INAUDIBLE] THE CITY OF AUSTIN ORDINANCE AS IT PERTAINS TO THE GOOD FAITH EFFORT CAUSE. FACT, CITY OF AUSTIN ENERGY ELECTRIC UTILITY COMMISSION VOTED TO RECOMMEND TO CITY COUNCIL THE SECOND LOW BIDDER, RED SYMPTON. FACT, READ SIMPSON FOLLOWED ALL THE RULES OF OUR M.B.E., W.B.E. ORDINANCE. FACT, GREAT SOUTHWESTERN CONSTRUCTION FILED A PROTEST AND THE PRESIDING OFFICERS FINDINGS STATES, AND I QUOTE, "SOUTHWESTERN'S BID SUBMISSION EITHER MET THE -- NEITHER MET PROJECTED GOALS OR SUFFICIENT TO GOOD FAITH EFFORTS IN SHOWING THE OUTLINE IN THE ORDINANCE." FACT, GREAT SOUTHWESTERN CONSTRUCTION IN THEIR COMPLIANCE PLAN ZERO PERCENT ASIAN AMERICAN, ZERO PERCENT HISPANIC, ZERO PERCENT AFRICAN-AMERICAN, AND ONLY .29% W.B.E.. NOT EVEN ONE PERCENT PARTICIPATION. THE ATTORNEY OF GREAT SOUTHWESTERN MENTIONED THAT THERE COULD BE A POSSIBLE CHALLENGE TO THE ORDINANCE. I THINK THAT ANY LAW CAN GO CHALLENGED. IN FACT, NO TOO LONG AGO I READ AN ARTICLE WHERE THE SEAT BELT LAW WAS BEING CHALLENGED. AN OFFICER DECIDED TO ENFORCE THE LAW AND NOW IT'S BEING CHALD. IT IS A GOOD LAW, IT'S SAVES LIVES, BUT IT'S BEING CHALLENGED. WE MIGHT LOSE IT. ANY GOOD LAW CAN BE CHALLENGED. I LIKE TO THINK OF THIS PARTICULAR INSTANCE AS A RACE. AND I'LL USE THE ANALOGY -- I'LL USE WITH THE PERMISSION OF MY GOOD FRIEND CITY MANAGER, I'LL USE IT AS A -- JESUS GARZA AND FRANK FUENTES DOING A 100 YARD RACE. NOW, EVERYBODY KNOWS THAT JESUS IS IN BETTER SHAPE THAN ME, I'M A LITTLE HEAVY AROUND THE MIDDLE SECTION, SO HE WOULD PROBABLY BEAT ME. BUT WHAT IF I BROKE THE RULES AND I RAN -- I STARTED THE RACE FIRST, I RAN 35 YARDS, I WOULD PROBABLY WIN. BUT THAT -- THAT, MY FOLKS, WOULD BE A TAINTED WIN. IT WOULD BE A TAINTED WIN. JUST AS IN THIS CASE SOUTHWESTERN DIDN'T FOLLOW THE RULES; THEREFORE THEIR BID WAS LOWER BY HALF A MILLION DOLLARS. TO AWARD THE CONTRACT TO THEM WHEN THEY DID NOT FOLLOW THE RULES OF FULL DISCLOSURE OF ALL THE SUBCONTRACTORS, IN FACT THEY ONLY DISCLOSED .29D%, WOULD BE A TAINTED WIN, JUST LIKE MY WIN OVER THE CITY MANAGER. AGAIN, LET ME REITERATE THE ELECTRIC UTILITY COMMISSION, A BODY THAT HAS BEEN APPOINTED BY OUR CITY COUNCILL, MADE THE RECOMMENDATION OF RED SIMPSON. I WAS IMPRESSED BY -- RECENTLY I WAS IMPRESSED BY THE SPEECH OF COUNCILMEMBER WILL WYNN WHEN HE MENTIONED AT THE CONVENTION CENTER ABOUT THE VISION THAT HE HAD OR THE VISION THAT OUR LEADERS IN THIS COMMUNITY GOT TO HAVE TO MOVE THE CITY FORWARD. SEVERAL YEARS AGO WHEN THIS ORDINANCE WAS IN PLACE, I BELIEVE THE ORDINANCE WAS IN PLACE BY LEADERS THAT HAD VISION THAT THE CITY MUST AFFIRMATIVELY EMBRACE THE PROGRAMS OF INCLUSION. I BELIEVE THAT THIS IS SUCH A CASE. LET ME CONGRATULATION LATE MR. MARTINEZ AND HIM GRADUATING FROM THE PROGRAM, BUT I SUSPECT THAT THE REASON THAT HE GRADUATED WAS THAT PEOPLE THERE DID INCLUDE HIM. I THANK YOU.

>>MAYOR WATSON: THANK YOU, MR. FUENTES. WILLIAM ALLENSWORTH. HE'S NOT HERE? HE HAD SIGNED UP IN FAVOR OF GREAT SOUTHWESTERN.

>>GARZA: MAYOR, I WOULD WANT TO SEE EVEN IF HE BROKE THE RULES I WOULD BEAT HIM ANYWAY.

>>MAYOR WATSON: I THOUGHT HE WAS RAISING A STRONG CHALLENGE. JUST 35 YARDS? EDWARD --

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: EDWARD SCHROEDER FOLLOWED BY BEN, AND I APOLOGIZE -- SAY THAT AGAIN. WORMATE. IF YOU WILL PLEASE MAKE YOUR WAY, YOU WILL BE FOLLOWING MR. SCHROEDER.

>> GOOD AFTERNOON, MAYOR WATSON AND COUNCILMEMBERS. MY NAME IS EDWARD SCHROEDER AND I REPRESENT AUSTIN TRAFFIC SIGNAL, A CITY OF AUSTIN CERTIFIED MINORITY CONTRACTOR. THANK YOU FOR THE TUFPT TO ADDRESS AN ITEM ON THE AGENDA TODAY THAT AUSTIN TRAFFIC SIGNAL BELIEVES IS NOT IN THE BEST INTERESTS TO THE CITY OF AUSTIN, THE MINORITY CONTRACTORS FOR THE CITY OF AUSTIN, AND THE M.B.E. PROGRAM. THE FIRST BID OF THE CIRCUIT 3120 PROJECT WAS OPEN AND READ ON APRIL 28 27, 2000, WITH THE OWNER RECEIVING TWO BIDS. AUSTIN TRAFFIC SIGNAL WAS THE LOW BIDDER AT $9,845,000. RED SIMPSON WAS AT PLAN COMPLIANT. THE CITY OF AUSTIN AT THEIR OPTION REJECTED ALL BIDS BY A LETTER DATED MAY 5TH, 2000, AND THE REASON FOR THE REJECTION WAS THAT THE LOW BID WAS OVER BUDGET. THE ENGINEER'S BUDGET WAS $5.8 MILLION, PUTTING THE LOW BID AT 69% OVER ESTIMATE. THE CITY REBID THE PROJECT WITH THE ESTIMATE REMAINING THE SAME ON JUNE 1ST AND RECEIVED THREE BIDS, GREAT SOUTHWESTERN, 8.4 MILLION 50,000, RED SIMPSON 8,958 AND AUSTIN TRAFFIC. THE CITY BY WAY OF LETTER DEEMED GREAT SOUTHWESTERN NON-COMPLIANT AND RECOMMENDED RED SIMPSON FOR AWARD. RED SIMPSON WAS STILL 55% OVER THE ESTIMATED BUDGET. IT WOULD SEEM NOW THAT THE BUDGET WAS NO LONGER THE ISSUE AND THAT THE M.B.E. COMPLIANCE PLAN WAS DICTATING THE RECOMMENDATION FOR AWARD. ON JUNE 27TH AUSTIN TRAFFIC RECEIVED A NEW COPY OF THE RCA, THE RECOMMENDED COUNCIL ACTION, WHICH NOW SHOWS GREAT SOUTHWESTERN AS THE RECOMMENDED CONTRACTOR WITH THEIR PRICE OF 8,450,000. NOW IT APPEARS THAT THE BUDGET IS THE ISSUE AND THE COMPLIANCE PLAN HAS NO MERIT. THIS IS STILL 31% OVER BUDGET. HOW CAN THE CITY DEEM A CONTRACTOR NON-COMPLIANT AND NOT RECOMMENDED FOR AWARD ON JUNE 7TH AND 22 DAYS LATER CHANGE THEIR MINDS AND RECOMMEND THEM FOR AWARD? GREAT SOUTHWESTERN'S COMPLIANCE PLAN ONLY SHOWS .29% OF MINORITY PARTICIPATION. THIS IN NO WAY IS BENEFICIAL TO THE CITY OF AUSTIN. AUSTIN TRAFFIC SIGNAL FEELS THAT THE ITEM BEFORE YOU TODAY REQUIRES FURTHER INVESTIGATION. WE URGE THE CITY NOT TO MAKE A RECOMMENDATION FOR AWARD TO GREAT SOUTHWESTERN BASED ON THE DISCREPANCIES THAT HAVE BEEN DOCUMENTED AND PRESENTED. THIS WOULD BE IN THE BEST INTERESTS TO THE CITY OF AUSTIN, THE M.B.E. PROGRAM AND THE MINORITY CONTRACTORS REPRESENTED ON THIS PROJECT. THANK YOU.

>>MAYOR WATSON: THANK YOU, SIR. MR. WARMATE.

>> GOOD AFTERNOON, MAYOR, COUNCILMEMBERS, LADIES AND GENTLEMEN. MY NAME IS BENJAMIN WARMATE, I'M THE PRESIDENT OF USM DEVELOPMENT. WE ARE AN AFRICAN-AMERICAN OWNED FIRM HERE IN AUSTIN CERTIFIED WITH THE CITY FOR THE PAST SEVERAL YEARS. I'VE SAT HERE AND LISTENED, I'M NOT HERE TO BASH ANYONE, BUT I THINK WE HAVE TO HAVE SOME KIND OF CONSISTENCY. WHEN YOU HAVE AN ODDNESS IN PLACE AND YOU -- ORDINANCE IN PLACE AND YOU HAVE A CONTRACTOR THAT COMES IN FROM OUT OF TOWN AND THEY WANT TO DO WHAT THEY WANT TO DO AND THEY WANT TO GET AWAY WITH IT SHE THAT'S NOT RIGHT. I HAVE NEVER SEEN SO MANY ZEROES SINCE MY SON BROUGHT HIS -- BROUGHT A ZERO FROM SCHOOL AND I HAVE TO BEAT HIS BUTT. THAT'S TOO MUCH ZEROES. 2.29 9%, THAT'S UNACCEPTABLE. ZERO FOR AFRICAN-AMERICAN. AND WE HAVE SEVERAL HARD-WORKING MINORITY CONTRACTORS HERE IN THE CITY LOOKING FOR WORK. CAN DO THE WORK. AND YOU ARE TELLING ME YOU CANNOT FIND THEM? WELL, YOU HAVE NINE DAYS, EVERYONE ELSE HAD NINE DAYS. DO YOUR JOB. DO WHAT YOU ARE SUPPOSED TO DO. FOLLOW THE ORDINANCE. THAT'S WHAT IT'S THERE FOR. NOW, LET ME QUOTE SOMETHING THAT WAS VERY DISTURBING TO ME I READ. AND IT SAYS, QUOTE, "THE CITY OF AUSTIN REGARDING THIS CONTRACT" -- THE CITY OF AUSTIN OF AUSTIN REGARDING THIS CONTRACT, THE DEPARTMENT OF SMALL AND MINORITY BUSINESS RESOURCE HAS DEEMED GREAT SOUTHWESTERN, INC., NON-COMPLIANT WITH THE M.B.E., W.B.E. PROCUREMENT ORDINANCE. HOWEVER, THE CITY MANAGER HAS DETERMINED THAT IT IS IN THE BEST INTEREST OF M.B.E./W.B.E. PROCUREMENT PROGRAM AND THE CITY TO AWARD THE CONTRACT TO GREAT SOUTHWESTERN. WHO IS REPRESENTING WHO? IN THE BEST INTEREST OF -- I'M AFRICAN-AMERICAN, I DIDN'T GET THE JOB, I WASN'T SOLICITED, AND I CAN DRILL, SIR. SO I'M -- I'M JUST -- I HOPE THE COUNCIL WILL MAKE A WISE DECISION. IT'S A SIMPLE, EASY DECISION, IN MY OPINION. NOT TO AWARD THIS CONTRACT TO GREAT SOUTHWESTERN. THANK YOU.

>>MAYOR WATSON: THANK YOU, SIR. COUNCIL, THOSE ARE ALL THE PEOPLE SIGNED UP TO SPEAK ON THIS ITEM. MR. CITY MANAGER.

>>GARZA: LET ME -- I WANT TO ASK FOR ELABORATION. THERE WERE A COUPLE POINTS RAISED, ONE THAT I WANT TO CLARIFY FOR EVERYONE IN TERMS OF THE INITIAL RECOMMENDATION OF THE AUSTIN ENERGY. AND THAT HAD TO DO WITH SIMPLY RELYING ON THE INITIAL DECISION OF SMBR. IT DID NOT SPEAK NOR DID IT ATTEMPT TO INDICATE OR PLACE ANY JUDGMENT AS TO WHETHER GREATER -- THE GREATER SOUTHWESTERN COULD COMPANY COULD OR COULD NOT DO THE WORK, IT SIMPLY WENT ON THE ISSUE OF ALL THE BOXES HAD NOT BEEN FILLED OUT AND DOCUMENTATION HAD NOT BEEN SUBMITTED ON THE CONTACTING OF ONE VENDOR. THEN THERE WAS A DECISION AFTER THE PROTEST, WE RECEIVED FROM MS. VASS AND SHE HAD INDICATED TO US THAT THERE WAS SOME CONSIDERATION THAT COULD BE GIVEN TO WAIVING OF THE ORDINANCE AND BECAUSE OF THE -- WHAT APPEARED TO BE -- BECAUSE THAT ONE VENDOR HAD NOT BEEN CONTACTED, WE HAD NOT RECEIVED PAPERWORK, BUT APPARENTLY THERE HAD BEEN MADE EFFORTS TO CONTACT HIM, BUT AS THE ORDINANCE INDICATES WE NEED TO HAVE THE DOCUMENTATION, IT'S NOT GOOD ENOUGH TO GIVE US DOCUMENTATION AFTER THE FACT. AND REX OR CHUCK MAY WANT TO ELABORATE ON BOTH OF THOSE, BUT I WANT THE COUNCIL TO KNOW THE INITIAL RECOMMENDATION OF AUSTIN ENERGY REALLY HAD TO DO WITH SIMPLY RELYING ON SMBR'S CERTIFICATION OF WHETHER ALL THE DOCUMENTATION HAD BEEN SUBMITTED ON THESE BIDS. SUBSEQUENT TO -- SUBSEQUENTLY TO THE DECISION OF MS. VASS IS WHY WE DECIDED TO WAIVE THE ORDINANCE AND RECOMMEND THE GREATER SOUTHWESTERN CONSTRUCTION COMPANY AND I WANTED TO JT ADDRESS THOSE TWO POINTS. AND REX, YOU MAY WANT TO ELABORATE ON THAT.

>> I WOULD JUST CLARIFY AND PERHAPS READ INTO THE RECORD THE FINDINGS OF SUSAN VASS. MY NAME IS REX AND SUSAN VASS HAD A HEARING, AGAIN, AFTER THE INITIAL DECISION THAT GREAT SOUTHWESTERN DID NOT COMPLY WITH EVERYTHING BECAUSE OF FAILURE TO PROVIDE WRITTEN NOTICE OF CONTACTING M.B.E.S. AND THERE WAS SOME -- APPARENTLY SOME DISPUTE AT THE HEARING OR AN ISSUE AT THE HEARING THERE WAS TESTIMONY THAT IN FACT BOTH OF THE M.B.E.S HAD BEEN CONTACTED, ALTHOUGH THERE WAS NOT A WRITTEN CONFIRMATION OF THE CONTACTING OF THE ONE THAT I BELIEVE THAT WAS DISCUSSED BY THE FIRST OR SECOND SPEAKER TODAY. MS. VASS SAID THAT SOUTHWESTERN WAS THE LOW BIDDER WHICH WOULD SAVE OVER $540,000 FOR THE CITY. THE SOUTHWESTERN FAILED TO CONTACT ONE AVAILABLE M.B.E. CASE CONTRACTOR OUT OF TWO SUCH CONTRACTORS. THE FACTS THEREFORE WOULD JUSTIFY A WAIVER OF PRECISE ORDINANCE REQUIREMENTS IN THE BEST INTEREST OF THE CITY AND OF THE M.B.E. PROGRAM, A DETERMINATION THAT A WAIVER WOULD BE APPROPRIATE, HOWEVER, IS A DECISION DELEGATED TO MANAGEMENT BY THE ORDINANCE -- DELEGATED TO MANAGEMENT BY THE ORDINANCE NOT TO THE HEARINGS OFFICER. THAT WAS THE RECOMMENDATION OF THE HEARS OFFICERS, AFTER WHICH THAT HEARING WAS HELD, THE EUD, SMBR AND THE CITY MANAGER CONCURRED THAT THE FACTS JUSTIFIED A WAIVER OF THE ORDINANCE WITH RESPECT TO THIS PROJECT. THANK YOU.

>>MAYOR WATSON: COUNCIL, IF YOU HAVE ANY QUESTIONS, THE CITY MANAGER'S OFFICE IS AVAILABLE TO ANSWER QUESTIONS OR ANY DISCUSSION AT THIS POINT.

>>THOMAS: MAYOR?

>>MAYOR WATSON: COUNCILMEMBER THOMAS.

>>THOMAS: MR. MARTINEZ, I NEED TO ASK YOU A QUESTION IF YOU DON'T MIND, SIR.

>> YES, SIR.

>>THOMAS: CAN YOU TELL ME IN THE PAST TWO YEARS A BRIEF HISTORY OF YOUR STATUS ON YOUR PROJECT COMPLETION IN THE PAST TWO YEARS?

>> WE HAVE COMPLETED ALL OF THE CONTRACTS THAT WE HAVE CONTRACTED FOR.

>>THOMAS: WITHIN THE LAST TWO YEARS, HAVE YOU HAD ANY COMPLICATION ON COMPLETING PROJECTS ON TIME?

>> TO MY KNOWLEDGE, WE HAVE NOT.

>>THOMAS: OKAY. WELL, IT WAS MENTIONED EARLIER IN DENTON, TEXAS, WHAT IS THAT ABOUT, DO YOU KNOW?

>> I HAVE NO IDEA. THIS INFORMATION THIS GENTLEMAN JUST PRESENTED, I WOULD LIKE TO HAVE HIS -- WHATEVER FACTS HE IS BRINGING TO THE TABLE, I WOULD LIKE TO HAVE THEM PRESENTED BECAUSE I'M NOT AWARE OF ANY CASE WHERE HE'S -- SPECIFICALLY WHAT HE'S TALKING ABOUT.

>>THOMAS: HOW LONG HAVE YOU BEEN WITH SOUTHWESTERN?

>> I FOUNDED THE COMPANY IN 1977.

>>THOMAS: YOU FOUNDED THE COMPANY?

>> AND I MIGHT ADD THAT WE HAVE RECEIVED COMMENDATIONS AND AWARDS, SAFETY AWARDS, ENVIRONMENTAL AWARDS, NOMINATIONS FROM DEPARTMENT OF INTERIOR, BUREAU OF RECLAMATION, DEPARTMENT OF ENERGY, WESTERN POWER ADMINISTRATION, I WOULD PUT OUR RECORD OF ACCOMPLISHMENT UP AGAINST ANY CONTRACTOR, AND THAT INCLUDES SAFETY.

>>THOMAS: THANK YOU.

>> MR. MARTINEZ.

>>MAYOR WATSON: MR. MART MARMENT. COUNCILMEMBER ALVAREZ HAS A QUESTION FOR YOU.

>> YES, SIR.

>>ALVAREZ: I THINK YOU MENTIONED YOU WERE A GRADUATE OF THE --

>> SBA 8-A PROGRAM.

>>ALVAREZ: THAT'S THE CITY'S PROGRAM?

>> THAT'S THE FEDERAL GOVERNMENT SMALL BUSINESS ADMINISTRATION PROGRAM.

>>ALVAREZ: OKAY.

>> ONE OF THE THINGS THAT I DIDN'T MENTION EARLIER BUT WAS IN YOUR -- ONE OF THE LETTERS IS THAT WE WERE A CERTIFIED MINORITY CONTRACTOR WITH THE CITY OF AUSTIN. WE'VE GONE THROUGH THE PROCESS. AND WE HAD LET THAT LAPSE BECAUSE WE WEREN'T AWARE OF ANY PROJECTS COMING IN THE FUTURE AT THE TIME WHEN WE LET IT LAPSE, WHICH I THINK WAS 1996. I'M NOT SURE.

>>ALVAREZ: AND, YOU KNOW, I CERTAINLY -- YOU KNOW, I HEARD THE OTHER GENTLEMAN I GUESS MENTION YOUR COMMITMENT TO HIRING AS MUCH AS POSSIBLE MINORITY AND WOMEN OWNED BUSINESSES, AND I DID NOTICE THAT IN YOUR -- I GUESS IN THE COMPLIANCE PLAN, OBVIOUSLY, YOU KNOW, OVER 70% OF THE WORK IS WORK THAT GREATER SOUTHWESTERN WILL DO, AND DO YOU HAVE ANY IDEA HOW THAT WORK WILL BE CARRIED OUT OR --

>> YES. WE NORMALLY -- IN FACT, WE CAN DO ALL OF THE WORK INCLUDING THE CASONS, BUT IN THIS PARTICULAR CASE DUE TO THE TIME CONSTRAINTS, WE DID TAKE BIDS FOR THAT WORK AND WE DECIDED IT WOULD BE GOOD TO GO AHEAD AND SUBCONTRACT THAT OUT. AND BASICALLY THAT'S THE TWO COMPONENTS OF THE JOB IS JUST PUTTING IN THE CASONS AND WE WOULD PUT UP THE STRUCTURES AND THEN WE WOULD STRING THE WIRE. SO THERE'S NOT A LOT OF OPPORTUNITY TO SUBCONTRACT OUT IN THIS TYPE OF WORK AND LIKE I SAID BEFORE, IN MANY CASES WE DO IT 100%. WE DO THE WHOLE THING. NOW, WE DO HAVE A VERY STRONG RECRUITMENT PROGRAM WHERE WE HIRE MINORITY EMPLOYEES, AND WE WILL MAKE AN EFFORT TO DO THAT HERE IN AUSTIN.

>>ALVAREZ: SO YOU DO ANTICIPATE THAT YOU WILL DO THE WORK, 71% OF THE WORK THAT IS OUTLINED IN --

>> YES. AND WE WILL TRY OUR BEST TO HIRE AS MANY LOCAL PEOPLE AS WE CAN.

>>MAYOR WATSON: I WANT TO ASK A QUESTION OF MR. MANNING REAL QUICKLY. AND THIS MAY HAVE BEEN COVERED IN THE CITY MANAGER'S EARLIER COMMENTS SHE BUTTED I WANT TO MAKE SURE I HAVE CLARITY. UNDER THE -- WE HAVE A CONTRACT, AND I WANT TO MAKE SURE I UNDERSTAND WHAT THE CITY'S CONTRACT IS WITH REGARD TO GETTING THIS JOB COMPLETED.

>> THAT IS CORRECT. MAYOR AND COUNCIL, WE ARE UNDER CONTRACT WITH THE CALPINE GENTEX. WE ARE UNDER CONTRACT WITH THEM FOR JANUARY 1ST OF NEXT YEAR.

>>MAYOR WATSON: THANK YOU. MR. CITY ATTORNEY, AS I UNDERSTAND THE LAW -- AND HELP ME WITH IT -- WHAT IS THE LAW WITH REGARD TO IF THE COUNCIL WEREN'T TO GO FORWARD WITH THE RECOMMENDATION, WHAT WOULD BE THE OPTION OF THE COUNCIL -- THE COUNCIL WOULD HAVE UNDER THE LAW?

>> YOU HAVE THE OPTION OF REJECTING ALL THE BIDS.

>>MAYOR WATSON: SO THE OPTION IS APPROVE THE RECOMMENDATION OR REJECT ALL THE BIDS. MR. MANNING, IF WE WERE TO REJECT ALL THE BIDS, WHAT WOULD THAT DO TO US WITH REGARD TO OUR CONTRACTUAL OBLIGATION THAT YOU JUST DISCUSSED?

>> OUR BEST ESTIMATES ARE WE COULD NEVER MEET THAT IN SERVICE DATE OF THE 15TH OF DECEMBER OR JANUARY 1ST.

>>MAYOR WATSON: OKAY. COUNCIL, ANY OTHER QUESTIONS OR DISCUSSION? COUNUNCIL I'LL ENTERTAIN A MOTION WITH REGARD TO ITEM NO. 12.

>>SLUSHER: MAYOR, I WOULD MOVE APPROVAL OF THE STAFF, IS CITY MANAGER DIRECTED RECOMMENDATION.

>>MAYOR WATSON: MOTION TO APPROVE THE CITY MANAGER RECOMMENDATION. IS THERE A SECOND? SECONDED BY COUNCILMEMBER WYNN. IS THERE DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. -- COUNCILMEMBER ALVAREZ.

>>ALVAREZ: I WOULD LIKE TO SAY A FEW WORDS ABOUT THIS PARTICULAR ISSUE. IT'S BEEN AN INCREDIBLY DIFFICULT ISSUE BECAUSE THERE'S JUST SO MANY THINGS THAT YOU HAVE TO WEIGH WITH THIS KIND OF DECISION AND OF COURSE THIS IS ONE OF THE FIRST TIMES I'VE HAD TO LOOK AT THIS KIND OF INFORMATION. BUT AGAIN, PEOPLE HAVE BEEN VERY GENEROUS IN TERMS OF PROVIDING SOME INFORMATION TO US AND SO -- SO REALLY I'VE AGONIZED OVER THIS BECAUSE THERE'S SOME STRONG ARGUMENTS ON BOTH SIDES. AND HAVING LOOKED AT ALL OF THE INFORMATION, YOU KNOW, I AM GOING TO SUPPORT THIS PARTICULAR MOTION. AND I WANTED TO EXPLAIN A LITTLE BIT WHAT THAT IS BASED ON. AND -- BECAUSE AT FIRST, YOU KNOW, AT FIRST BLUSH I DID HAVE CONCERNS ABOUT THE LEVEL OF MINORITY PARTICIPATION, AND THEN AGAIN LOOKING AT -- MORE CLOSELY AT THE PARTICULAR DOCUMENTS THAT WE HAVE AND THE ADMINISTRATIVE JUDGE THAT REVIEWED THE PROTEST BID DID -- I GUESS DID BRING SOME IMPORTANT INFORMATION TO LIGHT. BECAUSE I THINK WHEN YOU ARE LOOKING AT THESE THINGS, BECAUSE THERE'S SO MANY CONTRACTS IN THE CITY WHERE, AGAIN, THERE'S ZERO M.B.E. PARTICIPATION AND YET THERE'S A GOOD FAITH EFFORT, YOU KNOW, TO COMPLY WITH THE ORDINANCE, AND SO FOR ME IT WAS IMPORTANT TO FIND OUT WAS THERE A GOOD FAITH EFFORT IN THIS PARTICULAR INCIDENCE. AND THE JUDGE THAT REVIEWED IT SAID THAT, AGAIN, THAT THE COMPANY HAD -- YOU KNOW, HAD FAILED TO KBT THIS ONE OUT OF TWO -- CAN'T ONE OUT OF TWO AVAILABLE FIRMS AND THAT WAS THE BASIS FOR SAYING THEY HAD NOT MADE A GOOD FAITH EFFORT. AND, YOU KNOW, AND SUBSEQUENT TO THAT OBVIOUSLY THERE WAS SOME INFORMATION DISCLOSED THAT SUGGESTED OR THAT INDICATED THAT THEY HAD CONTACTED THE OTHER COMPANY. AND SO REALLY THAT IS PARTLY WHY -- WHAT I BASE MY DECISION ON BASED ON AGAIN THIS WHOLE IDEA OF GOOD FAITH EFFORT. OBVIOUSLY THE NUMBERS ARE NOT WHAT WE WOULD LIKE IN TERMS OF THE SUBCONTRACTING. BUT OBVIOUSLY THE ISSUES OF THE TIMING IS CERTAINLY IMPORTANT AND THE NEED TO MOVE FORWARD ON THE PROJECT AS WELL AS THE AMOUNT OF TIME THAT THE CONTRACTORS HAD TO PULL THIS OFF. SO I JUST WANTED TO SHARE SHOWS THOSE -- YOU KNOW, MY POSITION WITH FOLKS, AND I KNOW -- I FEEL IT'S THE RIGHT DECISION. I KNOW NOT EVERYONE IS GOING TO AGREE WITITH IT, BUT I JUST WANT TO MAKE SURE EVERYONE KNEW WHERE I WAS COMING FROM.

>>MAYOR WATSON: ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO.

>> NO.

>>MAYOR WATSON: MOTION CARRIES WITH COUNCILMEMBER THOMAS AND COUNCILMEMBER GRIFFITH BEING SHOWN VOTING NO. IT CARRIES ON A VOTE OF 5-2. COUNCIL, THAT -- I WILL ENTERTAIN A MOTION TO RECESS THE MEETING OF THE AUSTIN CITY COUNCIL FOR PURPOSES OF CALLING TO ORDER THE BOARD OF DIRECTORS MEETING OF THE AUSTIN HOUSING FINANCE CORPORATION. IS THERE A MOTION? MOTION MADE BY THE MAYOR PRO TEM. IS THERE A SECOND? SECONDED BY COUNCILMEMBER WYNN. ALL IN FAVOR SAY AYE OPPOSED, SAY NO. MOTION CARRIES, CITY COUNCILL IS IN RECESS. CALL TO ORDER THE BOARD OF DIRECTORS MEETING OF THE AUSTIN HOUSING FINANCE CORPORATION. WE HAVE TWO ITEMS, ITEM NO. 1 WAS POSTPONED INDEFINITELY. WE HAVE ITEMS 92 AND 93. MR. HILGERS. IF I COULD ASK EVERYBODY TO PLEASE CARRY THEIR CONVERSATIONS OUTSIDE SO WE CAN CONTINUE WITH THE BUSINESS OF THE CITY COUNCILL.

>> THANK YOU, MR. PRESIDENT. I'M PAUL HILGERS AND I'M HERE TO BRING BEFORE YOU ITEM 92 AND 93 TODAY. ITEM 92 IS APPROVE A RESOLUTION ACCEPTING CERTAIN PROPERTIES ACQUIRED BY THE CITY OF AUSTIN IN A SETTLEMENT AGREEMENT WITH ANDERSON COMMUNITY DEVELOPMENT CORPORATION FOR THE COMPLETION OF THE SCIP 2 PROJECT TO ACCEPT A GRANTED IN THE AMOUNT OF $2,377,485 FOR THE DEVELOPMENT OF UP TO 74 AFFORDABLE HOMEOWNERSHIP AND RENTAL HOUSING UNITS WITHIN THE ROBERTSON HILL NEIGHBORHOOD. AMEND THE CONTRACT BETWEEN THE CITY AND THE AUSTIN HOUSING FINANCE CORPORATION BY AMENDING THE SCOPE OF WORK TO INCLUDE THE COMPLETION OF THE SCIP 2 PROJECT AND INCREASING THE FUNDING BY $2,377,485 AND AMEND THE BUDGET BY INCREASING REVENUE SOURCES AND USES BY THE SAME AMOUNT. IN ADDITION THIS RESOLUTION WOULD DIRECT STAFF TO DEVELOP A WORK PLAN AND PROGRAM GUIDELINES AND COMPLETE -- FOR COMPLETING THE SCIP 2 PROJECT AND BRING THOSE BACK TO YOU WITHIN 60AY THIS ITEM WAS ON THE SWREND THIS MORNING AND WAS -- IN WHICH YOU AS THE COUNCIL VOTED TO RECOMMEND THAT THIS ACTION TAKE PLACE. I'LL BE GLAD TO ANSWER ANY QUESTIONS.

>>MAYOR WATSON: COUNCILMEMBERS, DO YOU HAVE ANY QUESTIONS? I'LLLL ENTERTA A MOTION ON ITEM 92.

>>SLUSHER: MAYOR, I HAVE A QUESTION. GIVE US A LITTLE MORE DETAIL ON HOW THE PLANS WILL BE DEVELOPED OR HOW WE'RE GOING TO GET THIS THING DONE.

>> SURE. WELL, AS THE COMMUNITY AND THE BOARD KNOWS, WHAT -- WHAT WAS PART OF THE AGREED -- WHAT WAS AGREED AS PART OF THE SETTLEMENT WAS THAT THE AUSTIN HOUSING FINANCE CORPORATION WOULD TAKE THE LEAD IN DEVELOPING THE BUILDOUT OF THE PROPERTY KNOWN AS SCIP 2. WE HAVE -- WE WILL BEGIN THE PROCESS OF ASSEMBLING ALL THE PARCELS OF LAND THAT WERE ACQUIRED, ANALYZING WHAT OTHER PARCELS NEED TO BE ACQUIRED AND COMING FORWARD TO THE COUNCIL -- TO DO BOARD AND TO THE COUNCIL, IF NECESSARY, WITH THOSE REVISED PLANS IN THE NEXT 60 DAYS. WE ARE LOOKING ESSENTIALLY TO BUILD IN THE 74 UNITS, THE PLANS ARE TO HAVE AN ADDITIONAL 26 RENTAL PROPERTIES, AND THE REMAINDER BEING SINGLE-FAMILY HOMEOWNERSHIP. WE WILL BE LOOKING TO FIND THE BUILDING BEING DONE AS WE HAVE DONE A LOT OF THE BUILDINGS THROUGH THE FINANCE CORPORATION WITH PRIVATE SECTOR BUILDERS ASSISTING US. WE'RE LOOKING AT AND WILL PRESENTED TO YOU VARIOUS MODELS THAT WE HAVE USED IN THE PAST TO BUILD SINGLE-FAMILY HOMES. WE WILL BE LOOKING TO FIND ADDITIONAL PRIVATE SECTOR PARTNERS TO INVEST IN MOST LIKELY THE RENTAL PROPERTY, THE RENTAL UNITS. PART OF THE STRATEGY IS TO CONTINUE TO WORK WITH THE PLANS WITH THE AUSTIN REVILGTSZIZATION AUTHORITY TO MAKE SURE IT'S COMPATIBLE WITH REVITALIZATION EFFORTS IN THE SIX NEIGHBORHOODS THAT ARE ON THAT BOARD OF DIRECTORS, THAT THE HOUSES ARE COMPATIBLE WITH THE NEIGHBORHOODS, AND WE ALSO OF COURSE WILL HAVE TO IDENTIFY IF IN FACT WE WILL NEED TO ADD ADDITIONAL LAND AND SECURE ADDITIONAL LAND TO LIVE UP TO THE CITY'S COMMITMENT. ON APRIL THE 20TH THE COUNCIL PASSED THE SMART GROWTH -- SMART HOUSING RESOLUTION, AND PART OF THAT RESOLUTION WAS TO IDENTIFY THE AUSTIN HOUSING FINANCE CORPORATION AS THE LEAD HOUSING AGENCY FOR THE CITY. AND WE HAVE THE STAFF AND THE CAPACITY, WE HAVE THREE DIFFERENT DIVISIONS, CONSTRUCTION MANAGEMENT DIVISION, A LENDING DIGS, AND A -- DIVISION AND A REAL ESTATE AND ACQUISITION DIVISION THAT WE ARE VERY EXCITED ABOUT THE OPPORTUNITY TO TAKE THE LEAD TO FULFILL THE CITY'S COMMITMENT FOR THAT NEIGHBORHOOD, TO THAT NEIGHBORHOOD TO BUILD UP TO THE 100 HOMES THAT HAD BEEN PROMISED TO THAT COMMUNITY FOR SUCH A LONG TIME.

>>SLUSHER: OKAY. THANK YOU, SIR.

>>MAYOR WATSON: I'LL ENTERTAIN A MOTION WITH REGARD TO THE ITEM. COUNCILMEMBER THOMAS.

>>THOMAS: I HAD A QUESTION.

>>MAYOR WATSON: GO AHEAD.

>>THOMAS: ARE YOU SAYING PUBLIC AND PRIVATE OR ARE YOU TALKING ABOUT THE CITY DOING THIS?

>> WELL, WE WOULD TALK ABOUT THE CITY ITSELF WOULDN'T BE BUILDING THE HOUSES. THE CITY AND THE FINANCE CORPORATION WHEN IT BUILDS ITS HOUSES, IT ENTERS INTO CONTRACTS WITH MOSTLY FOR-PROFIT BUILDERS. WE HAVE PARTNERSHIPS IN THE MULTI-FAMILY AREAS BOTH WITH FOR PROFIT AND NONPROFIT, BUT WE HAVE IN THE HOUSES WE'VE BUILT MOST RECENTLY, ACTUALLY ALL THE HOUSES AND SINGLE-FAMILY HOUSES WE BUILT, WE BUILT THOSE UNDER CONTRACT WITH PRIVATE BUILDERS. WE WILL BE GLAD TO SEEK ADDITIONAL PARTNERSHIPS WITH THE PRIVATE SECTOR. WE HAVE DONE THESE PROJECTS WHERE WE HAVE -- IN DIFFERENT MODELS WHERE WE HAVE FINANCED THE HOUSING DEVELOPMENT FOR THE DEVELOPERS. WE HAVE ASKED THEM TO SEEK THEIR OWN FINANCING WHEN THAT IS APPROPRIATE. WHAT WE ANTICIPATE IS THAT IN THIS CASE WHAT WE WILL DO IS MOST LIKELY WITH THE SINGLE-FAMILY HOUSES GET THOSE HOUSES BUILT AND THEN REINVEST THE MONEY THAT IS -- THAT IS SECURED FROM THE SALE OF THOSE HOMES INTO ADDITIONAL HOMES AS THE PROJECT IS BUILT OUT. BUT IT WILL BE IN ALL CASES A FORM OF PUBLIC/PRIVATE PARTNERSHIPS, WE WILL NOT HAVE CITY OR HSC FOLKS ACTUALLY BUILDING THE HOMES.

>>THOMAS: OKAY. ANOTHER QUESTION.

>> YES, SIR.

>>THOMAS: HOW MANY PRE-QUALIFIED PEOPLE DO YOU HAVE WAITING ON THE LIST FOR AFFORDABLE HOMES?

>> WELL, THESE HOMES ARE NOT -- WE WOULDN'T HAVE ANY PEOPLE SPECIFICALLY WAITING ON A PRE-QUALIFIED LIST FOR THESE HOMES. THESE HOMES ARE VERY MUCH IN DEMAND. THERE'S NO QUESTION ABOUT THAT. AND THERE WERE PEOPLE AT ONE POINT IN TIME WAITING TO BECOME QUALIFIED. OUR LENDING PROGRAM HAS -- THROUGH OUR DOWNPAYMENT ASSISTANCE PROGRAM, DOES WORK TO PRE-QUALIFY PEOPLE FOR HOUSING. AND AS THESE HOUSES ARE DEVELOPED, WE WILL BE SOLICITINGNG APPCATIONS AND HELPING FOLKS GET PRE-QUALIFIED TO GET INTO THESE HOMES. IT'S NOT AS IF THEY ARE -- THERE IS A POOL OF THEM RIGHT NOW FOR THESE SPECIFIC HOUSES. OUR DOWN APPOINTMENT ASSISTANCE PROGRAM HAS BEEN VERY SUCCESSFUL IN THE LAST TWO YEARS IN THAT WE HAVE PLACED ABOUT 670 FAMILIES INTO HOMES WITH OUR DOWNPAYMENT ASSISTANCE PROGRAM HELPING THEM TO GET QUALIFIED FOR HOMES AS FIRST-TIME HOME BUYERS. AND WE WILL CONTINUE TO WORK DIRECTLY, AGAIN NRX THE NEIGHBORHOOD WITH THE NEIGHBORHOODS AND FINDING -- FINDING ELIGIBLE APPLICANTS, HELPING THEM GET CREDIT COUNSELING OPPORTUNITIES SO THAT THEY WILL BE QUALIFIED FOR ENTERING INTO THESE HOMES.

>>THOMAS: ANOTHER QUESTION. YOU ARE SAYING THE 60 DAYS YOU WANT TO COME BACK IN 60 DAYS. IS THERE ANY WAY THAT YOU CAN GUARANTEE US AFTER 60 DAYS THAT THIS SCIP PROJECT WOULD BE ON THE WAY? STARTED OUT? BECAUSE ANOTHER QUESTION, WE COMPLETED SCIP I, WE COMPLETED SCIP III, AND SO MY CONCERN IS TO MAKE SURE WHEN WE COME BACK WITHIN 60 DAYS, AND I HOPE -- I'M NOT TELLING YOU HOW TO RUN YOUR DEPARTMENT, BUT I HOPE YOU WOULD PUT EMPHASIS ON PREPARING PEOPLE TO GET READY FOR THIS, AND ALSO THAT WE CAN COMPLETE -- WE CAN'T NO LONGER HAVE A DELAY ON SCIP II PROJECT.

>> BOARD MEMBER, I APPRECIATE VERY MUCH THE SENTIMENT AND I UNDERSTAND THAT THERE HAS BEEN DELAY LONG ENOUGH AND WE WILL WORK VERY HARD AND DILIGENTLY TO BEGIN CONSTRUCTION AS SOON AS POSSIBLE. WE HAVE MADE THE COMMITMENT TO SECURE AS THE MOST EFFICIENT AND COST EFFECTIVE WAY TO GET THIS PROGRAM COMPLETED. AND WE WILL -- WE WILL BRING YOU BACK PLANS IN 60 DAYS THAT WILL SHOW YOU EXACTLY WHEN WE WILL BE ABLE TO BEGIN CONSTRUCTION. AND EXACTLY WHAT THE TIME FRAME TO DO THAT IS. I HAVE NO DOUBT, AND I WOULD BE GLAD TO SHARE THOSE PLANS WITH YOU BEFORE 60 DAYS AND GET SOME INPUT ON EXACTLY WHAT WE'RE PROPOSING, SO THAT BY 670 DAYS WE HAVE A GOOD UNDERSTANDING OF -- 60 DAYS WHAT THAT TIME FRAME WILL BE, HOW MUCH ADDITIONAL MONEY WE MAY NEED FOR OUR PRIVATE SECTOR PARTNERS TO MAKE THIS THING HAPPEN. BUT THERE -- THERE IS NO DOUBT IN MY MIND THAT WE'RE COMMITTED TO MAKE THIS HAPPEN AND THIS DEPARTMENT IS GOING TO DO EVERYTHING IT CAN, THE FINANCE CORPORATION IS GOING TO DO EVEVERYTHING IT CAN TO LIVE UP TO THAT COMMITMENT.

>>THOMAS: THANK YOU.

>>MAYOR WATSON: I'LL ENTERTAIN A MOTION. MOTION TO APPROVE ITEM 92 BY BOARD MEMBER SLUSHER. SECONDED BY BOARD MEMBER THOMAS. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. THE MOTION PASSES. ITEM NO. 93, I'LL ENTERTAIN A MOTION.

>>GOODMAN: MOVE APPROVAL.

>>MAYOR WATSON: MOTION TO APPRE BY THE VICE PRESIDENT. IS THERE A SECOND? SECONDED BY BOARD MEMBER WYNN. ANY DISCUSSION.

>>SLUSHER: MAYOR, YOU BLEW BY ME. WHAT ITEM?

>>MAYOR WATSON: 93, WHICH I THOUGHT WAS GOING TO BE ON CONSENTED.

>>SLUSHER: I JUST WANTED TO MAKE SURE WE WORK OUT THIS. IT IS COMPLY WG SAVE OUR SPRINGS ORDINANCE?

>> YES, SIR.

>>SLUSHER: ONCE AGAIN, WE HAVE AN AFFORDABLE HOUSING COMPLEX THAT IS COMPLYING WITH THE SAVE OUR SPRINGS.

>> ABSOLUTELY. AND IT'S BEEN THROUGH THE ENVIRONMENTAL BOARD AND THE PLANNING COMMISSION AND RECEIVED ITS -- THEIR APPROVALS.

>>SLUSHER: WAS THAT UNANIMOUS AT BOTH BOARDS?

>> I BELIEVE IT WAS UNANIMOUS AT BOTH BOARDS.

>>SLUSHER: OKAY. THANK YOU.

>>GOODMAN: AND I THINK THEY'VE NOW HAD IT TATOOE DID ON THEIR ANKLES.

>> THAT WAS A REQUIREMENT.

>>MAYOR WATSON: DURING THE DISCUSSION I WAS HANDED A CARD. WE HAVE ONE PERSON SIGNED UP TO SPEAK. MR. MITCHELL, WOULD YOU LIKE TO COME FORWARD AND SPEAK?

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: I'M SORRY?

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: THREE MINUTES. NO ONE ELSE HAS SIGNED UP.

>> WELL, I'LL TRY AND MAKE THIS VERY BRIEF. UNFORTUNATELY I MISSED SIGNING UP FOR NO. 92. I DID WANT TO MAKE SOME COMMENTS ON THAT. THAT WAS MY MAIN REASON FOR BEING HERE. BUT I REMEMBER THIS PROCESS VERY WELL. AND I UNDERSTAND YOU HAVE A MOTION ON THE FLOOR TO APPROVE THIS ITEM. MY CONCERN IS THAT I THINK-ON-I WAS ON THE COUNCIL WHEN WE BROUGHT THE FIRST BUYS TO THE TABLE FOR A CALIFORNIA NONPROFIT CORPORATION WHICH WAS A SUBSIDIARY OF A NEW JERSEY CORPORATION TO PURCHASE AN APARTMENT COMPLEX PROVIDED BIAS 100% INCLUDING ALL FEES TO PURCHASE AN APARTMENT COMPLEX WEST OF IH-35 NORTH OF RUNDBERG. OR JUST SOUTH OF RUNDBERG. AND MY QUESTION AT THAT TIME AND IT'S IS SAME QUESTION NOW, AND THAT IS WHY CAN WE KNOTTED INDICATE OUR LOCAL NON-PROFITS AND WORK WITH OUR LOCAL NO ONE PROFITS TO TRULY EMPOWER THEM BY HELPING THEM BUILD NET WORTH BY HELPING THEM HAVE CASH FLOW AND CUT THE CORD, NOT BE DEPENDENT ON THE CITY, THE COUNTY OR ANY OTHER PUBLIC ENTITY FOR THINGS THAT THEY WOULD LIKE TO DO WITHIN THEIR COMMUNITIES? BECAUSE ONLY THEN WILL WE HAVE TRUE EMPOWERMENT OF THE COMMUNITIES AND CUT THE CORD AND NOT HAVE THEM DEPENDENT. MAYBE THE -- MAYBE THE PLAN IS TO KEEP CERTAIN COMMUNITIES, CERTAIN PEOPLE DEPENDENT ON GOVERNMENT DEPENDENT ON THE CITY, COUNTY AND OTHER GOVERNMENTAL ENTITIES. MY CONCERN TODAY IS THE EXACT SAME THING I EXPRESSED A NUMBER OF YEARS AGO, AND THAT IS WHY ARE WE CONSTANTLY APPROVING THESE BONDS FOR NON-PROFIT -- THIS ONE HAPPENED TO BE, I BELIEVE, HEADQUARTERED HERE IN AUSTIN. I'M NOT REAL SURE. BUT IN THE PAST I THINK ALL OF THOSE -- THAT WERE COMPOSED WHILE I WAS ON COUNCIL AND HAVE BEEN DONE SINCE I LEFT HAVE BEEN FOR CORPORATIONS, NON-PROFIT CORPORATIONS FROM OUT OF TOWN. AND LEVERAGING OUR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, LEVERAGING DEMOGRAPHICS, LEVERAGING CENSUS TRACTS, LEVERAGING CONDITIONS OF ECONOMICALLY DISEASE ADVANTAGED AND YUPTD REPRESENTED COMMUNITIES WITHIN THIS CITY AND THEN GIVING THOSE OPPORTUNITIES AWAY TO SO-CALLED NON-PROFITS THAT WAY, YOU KNOW, QUARTER MILLION DOLLAR SALARIES AND EXPENSES AND EVERYTHING ELSE. I MIGHT START A NON-PROFIT. I COULD GET A LOT OF CASH FLOWING AND I COULD PAY ALL MY AIR FARE AND VACATIONS AND SALARY AND EVERYTHING ELSE. BUT WE NEED TO LOOK AT WAYS AND I WOULD ENCOURAGE YOU TO TRY AND USE THIS PROGRAM TO EDUCATE AND BENEFIT LOCAL COMMUNITY BASED NONPROFIT ORGANIZATIONS THAT WOULD BENEFIT THE CITIZENS OF AUSTIN, SIMILAR TO THE EMPOWERMENT THAT WE ATTEMPTED IN SCIP II THAT UNFORTUNATELY DID NOT FOLLOW THROUGH WITH NON-PROFITS THAT ARE A COMMUNITY LIKE ANDERSON COMMUNITY DEVELOPMENT ORGANIZATION. SINCE I DIDN'T GET AN OPPORTUNITY TO SPEAK ON 92, THANK YOU FOR THE TIME ON 93.

>>MAYOR WATSON: THANK YOU, MR. MITCHELL. MOTION HAS BEEN MADE AND SECONDED TO APPROVE ITEM NO. 93. IS THERE ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON ITEM NO. 93. I'LL ENTERTAIN A MOTION TO ADJOURN THE BOARD OF DIRECTORS MEETING OF THE AUSTIN HOUSING FINANCE CORPORATION.

>>SLUSHER: SO MOVED.

>>MAYOR WATSON: IS THERE A SECOND? SECONDED BY BOARD MEMBER ALVAREZ. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES. THE BOARD OF DIRECTORS MEETING IS ADJOURNED. AIL CALL BACK TO ORDER THE MEETING -- THE REGULAR MEETING OF THE AUSTIN CITY COUNCILL. COUNCIL, WE'RE GOING TO ITEMS 94, 95, 96, 97. WE'RE GOING TO MOVE THROUGH THEM RATHER RAPIDLY AND THEN WE WILL GO TO THE BRIEFING THAT IS ITEM NO. 4. ITEM 94, I'LL JUST CALL THESE ITEMS SO WE CAN MOVE A LITTLE MORE QUICKLY. C 14-00-2044 THIS WILL BE ON CONSENT AGENDA TO APPROVE ON SECOND AND THIRD READING. ITEM 96, ITEM NO. C-14-99-2052, ITEM NO. 97, C-14-99-2053. BOTH OF THOSE ITEMS, THE MOTION WOULD BE TO POSTPONE UNTIL AUGUST 17TH. I'LL ENTERTAIN A MOTION ON THE CONSENT AGENDA.

>>SLUSHER: I GUESS I'M DISORIENTED BECAUSE MS. GLASCO ISN'T DOING IT, BUT 96, 97 WERE THE ONLY TWO?

>>MAYOR WATSON: 94 ON CON SEND ON SECOND AND THIRD READING. 96 AND 97 P TO AUGUST 17TH. WE'LL COME BACK TO 95 AND CALL TO ORDER THE PUBLIC HEARING. THERE IS NOBODY THAT IS SIGNED UP, WE'LL DO THE PUBLIC HEARING AND PASS IT ON CONSENT.

>>SLUSHER: OKAY. I'VE GOT A QUESTION THEN. THESE TWO -- AND I THINK YOU WILL NEED MS. GLASCO.

>>MAYOR WATSON: MS. GLASCO --.

>>SLUSHER: SORRY, MAYOR. BUT I WANTED TO MAKE SURE I UNDERSTAND WHAT I'M VOLGT ON HERE. OKAY. THESE ARE THE TWO CASES, ONE IS RESTRICTIVE COVENANT AND ONE IS A ZONING CASE THAT CAME UP A FEW WEEKS AGO, AND I RAISED THE QUESTION OF WHY ARE WE CUTTING LOOSE THE RESTRICTIVE COVENANT BEFORE THE ZONING IS APPROVED. IS THAT CORRECT?

>>GLASGO: THAT'S CORRECT.

>>SLUSHER: NOW BOTH OF THEM ARE COMING UP AT THE SAME TIME SO IT ELIMINATES THAT CONCERN. IS THAT CORRECT?

>>GLASGO: THAT'S CORRECT.

>>SLUSHER: THANK YOU. THAT WAS QUICK, WASN'T IT.

>>MAYOR WATSON: AND THE MOTION WILL BE TO POSTPONE TO THE 17TH.

>>SLUSHER: OKAY, WELL --.

>>MAYOR WATSON: SO THE ANSWER TO YOUR YES YOU NOW GOT, BUT IT DOESN'T MATTER.

>>GARCIA: I'M SORRY, MAYOR cN.

>>SLUSHER: I'M SORRY, MAYOR.

>>MAYOR WATSON: I THOUGHT THAT'S WHAT YOU WERE ASKING ABOUT.

>>SLUSHER: NO.

>>MAYOR WATSON: I TAKE THAT AS A MOTION TO APPROVE THE CONSENT AGENDA AS READ?

>>SLUSHER: SURE.

>>MAYOR WATSON: IS THERE A SECOND? SECONDED BY THE MAYOR PRO TEM. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON 94, 966 AND 97. I'LL CALL TO ORDER THE PUBLIC HEARING ON ITEM NO. 95, C 14-83-163. ANYONE WISHING TO BE HEARD ON THIS PUBLIC HEARING? ANYONE WISHING TO BE HEARD? I'LL ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING. MONTHS MADE BY THE MAYOR PRO TEM, SECONDED BY COUNCILMEMBER GRIFFITH. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. IT PASSES AND WE'VE CLOSED THE PUBLIC HEARING. C 14-83-163, I'LL I'LL ENTERTAIN A MOTION.

>>GOODMAN: MOVE APPROVAL.

>>MAYOR WATSON: SEKED BY COUNCILMEMBER ALVAREZ. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON ITEM 95. ITEM NO. 4 IS A BRIEFING ON THE TOWN LAKAKEORRIDOR PLAN. MR. LIBRACH.

>> MAYOR AND COUNCIL, THANK YOU. I JUST WANT TO INTRODUCE THIS WHILE WE'RE SETTING UP HERE. ABOUT 90 DAYS AGO YOU HAD DIRECTED STAFF WORKING WITH AN ADVISORY COMMITTEE AND CONSULTANT TO TAKE A LOOK AT THE AREA SOUTH OF TOWN LAKE THAT WE'RE CALLING SOUTH SHORE CENTRAL IN TRAVIS HEIGHTS, TO TAKE A LOOK AT THE DEVELOPMENT STANDARDS IN THAT AREA WITH AN OBJECTIVE TO TRY TO COME UP WITH SOME BETTER STANDARDS OR BINDING STANDARDS THAT CAN INCORPORATE WHAT WAS ORIGINALLY DESIRED IN THE -- IN THE TOWN LAKE CORRIDOR STD I THAT WAS DONE BACK IN THE MID 198 0SZ. YOU MAY RECALL THAT THIS WAS-DIRECTION WAS IN ASSOCIATION WITH THE DEVELOPMENT IN THIS AREA THAT HAD BEEN PROPOSED AT THAT TIME KNOWN AS THE GOTHAM. WE HAVE HIRED THAT CONSULTANT, THE NAME OF THAT CONSULTANT IS ROMA. THEY HAD WORKED WITH THE ADVISORY COMMITTEE OVER THE LAST 90 DAYS. THEY PREPARED A STUDY WHICH I THINK YOU HAVE RECEIVED COPIES OF AND COMPLETED THEIR WORK AND THEY ARE HERE AT THIS POINT TO BRIEF YOU ON THE RESULTS OF THEIR STUDY BASED ON THESE GOALS AND OBJECTIVES. AND I WOULD LIKE TO INTRODUCE JIM ADAMS WHO IS A PRINCIPAL WITH THE FIRM OF ROMA TO GET -- TO TAKE YOU THROUGH HIS REPORT AND FINDINGS. THANK YOU.

>> GOOD AFTERNOON, COUNCILMEMBERS. LET'S SEE, I'M GOING TO -- LET ME JUST START BY POINTING OUT THE AREA OF THE STUD THAT I WE'RE DEALING WITH cN STUDY THAT WE'RE DEALING WITH IS CALLED THE SOUTH SHORE CENTRAL AND THE TRAVIS HEIGHTS SUBAREAS THAT WERE STUDIED AS PART OF THE TOWN LAKE CORRIDOR STUDY BACK IN 1985. THE BOUNDARIES OF THE STUDY ARE SOUTH FIRST STREET ON THE WEST, EAST BOULDIN CREEK AND EAST RIVERSIDE DRIVE ON THE SOUTH, I-35 ON THE WEST, AND -- I MEAN ON THE EAST AND TOWN LAKE OF COURSE ON THE NORTH. THIS AREA IS REALLY UNIQUE AND IT'S QUITE EXCITING OPPORTUNITY TO REDEVELOP AND REVITALIZE A PORTION OF TOWN LAKE IN A WAY THAT WILL ACHIEVE THE VISION THAT YOU ALL SET FORTH BACK IN 1985. THE VISION FOR A MIXED USE DISTRICT THAT HAS A VIBRANT URBAN ATMOSPHERE, ONE THAT CREATES A TRANSITION BETWEEN THE DOWNTOWN AND THE NEIGHBORHOODS TO THE SOUTH, ONE THAT STEPS DOWN TO THE WATERFRONT, ONE THAT CREATES CONTINUOUS PUBLIC ACCESS ALONG THE SHORELINE AND YOU ALL KNOW THAT THIS IS THE ONE REACH OF TOWN LAKE WHERE PUBLIC ACCESS IS IMPEDED BY EXISTING LAND USES THAT GO ALL THE WAY UP TO THE SHORELINE. SO THERE IS AN OPPORTUNITY OF -- THROUGH NEW DEVELOPMENT AND REVITALIZATION TO CREATE THAT PUBLIC ACCESS. AND WE BELIEVE THAT WITH THE DEVELOPMENT INTEREST THAT IS BEGINNING TO OCCUR HERE, THAT THIS IS REALLY BECOMING A POSSIBILITY. POSSIBILITY ALSO AS YOU SAID BACK IN 1985 IN THAT STUDY OF INTRODUCING ACTIVITIES ALONG THE LAKE THAT WILL HELP ENERGIZE THE EDGES AND CREATE A DESTINATION NOT ONLY FOR RECREATIONAL USE BUT ALSO FOR SOME COMMERCIAL USE. THE IDEA ALSO OF REVITALIZING THE INTERIOR AREAS OF THE DISTRICT AND CREATING A MORE PEDESTRIAN ORIENTED ENVIRONMENT, ONE THAT HAS RESIDENTIAL, ONE THAT HAS COMMERCIAL GROUND LEVEL USES, AGAIN, CREATING THAT KIND OF VIBRANT MIXED USE ENVIRONMENT. THERE ARE SOME IMPEDIMENTS FOR THIS TO HAPPEN AND I THINK THAT IS WHY WE'RE DOING THIS STUDY. ONE IMPEDIMENT IS REALLY THE LAND USE PATTERN THAT EXISTS OUT THERE TODAY AND THE LEVEL OF PUBLIC INFRASTRUCTURE THAT IS ON THE SITE. THIS WAS A FLOODPLAIN, AS YOU KNOW, UP UNTIL 1970. AND THERE IS NOT THE LEVEL OF PUBLIC INFRASTRUCTURE AND STREETS THAT EXISTS ON THE OTHER SIDE OF THE RIVER AND OTHER PARTS OF THE CITY. BUT WHEN THE TOWN LAKE -- WHEN THE TOWN LAKE PROJECT WAS FINISHED IN 1970, DEVELOPMENT OCCURRED, THE HYATT, THE EMBASSY SUITES, TXDOT OFFICE BUILDINGS OCCURRED WITHIN THAT OLD DEVELOPMENT FABRIC. AND AS A RESULT, THE PATTERN OF DEVELOPMENT IS VERY SCATTERED AND VERY PIECEMEAL. YOU WILL SEE VERY LARGE DEVELOPMENT PROJECTS RIGHT UP AGAINST VERY LOW DENSITY DEVELOPMENT. THE PATTERN IS VERY CONFUSED. AND IT'S CHAOTIC. AND PART OF IT IS BECAUSE WE DON'T HAVE THE LEVEL OF PUBLIC INFRASTRUCTURE THAT YOU HAVE IN OTHER PARTS OF THE CITY. THE OTHER MAJOR ISSUE IN THIS AREA, AGAIN, IS PUBLIC ACCESS ALONG THE SHORELINE. THIS IS A PICTURE OF THE HIKE AND BIKE TRAIL AS IT GETS TO THE EASTERN PORTION OF THE STATES MAN PROPERTY. IT IS FOR BIKERS AND JOGGERS ARE FORCED ON TO EAST RIVERSIDE DRIVE AND THIS IS A DISCONTINUOUS PART OF THE SITE. OF THE WHOLE EXPERIENCE AT TOWN LAKE. THE OTHER MAJOR ISSUE ASSOCIATED WITH CHANGE HERE IS THE REGULATORY PATTERN THAT IS CURRENTLY IN PLACE. IT IS EXTREMELY CONFUSED, AS YOU CAN SEE IN THIS DIAGRAM, WE HAVE ALMOST EVERY SINGLE LAND USE IN THE LAND DEVELOPMENT CODE WITHIN THE AREA FROM LIGHT INDUSTRIAL TO COMMERCIAL SERVICES TO THE LAKE DESIGNATION WHICH PROVIDES FOR VERY HIGH DENSITY DEVELOPMENT. THE -- BY THE WAY, THE EDGECLIFF TERRACE NEIGHBORHOOD IS ALSO PART OF THIS AREA, BUT WE ARE NOT PROPOSING ANY CHANGES WITHIN THAT AREA. YOU CAN SEE HERE THAT PRIVATE PROPERTY GOES RIGHT UP TO THE SHORELINE EDGE ALONG THE ENTIRE REACH OF THE LAKE. THE CITY DOES OWN LAND ALONG THE SHORELINE AT THE EDGECLIFF TERRACE NEIGHBORHOOD, BUT THAT IS A BLUFF THAT GOES STRAIGHT INTO THE LAKE SO THAT THERE REALLY IS NOT AN OPPORTUNITY FOR CONTINUOUS ACCESS AS CURRENTLY CONFIGURED. THE EXISTING PIPE -- THE LAND USE DESIGNATIONS ARE VERY CONFUSED. THE EXISTING HEIGHT REGULATIONS ARE ALSO KIND OF SCATTERED. WE ARE ALLOWED 200 FEET IN PLACES, 60 FEET IN OTHER PLACES. THERE IS THE AMERICAN-STATESMAN P.U.D. THAT REQUIRES 96 FEET. THE WATERFRONT OVERLAY ZONE REQUIRES A 200 FOOT SETBACK ALONG THE STRETCH BETWEEN SOUTH FIRST STREET AND BOULDIN CREEK AND THEN 100 FOOT SETBACK TO THE EAST OF THAT. SO THE POINT I THINK HERE IS THAT THE DEVELOPMENT REGULATIONS REALLY NEED TO BE CLARIFIED. WITH THE AMOUNT OF DEVELOPMENT PRESSURE THAT WE THINK IS GOING TO START EXERTING ITSELF IN THIS AREA, IT'S VERY IMPORTANT TO CLARIFY THEM AND TO MAKE THEM MORE UNDERSTANDABLE, AND APPROPRIATE TO THE VISION THAT YOU ALL SET FORTH IN THE TOWN LAKE CORRIDOR STUDY. SO THE RECOMMENDATIONS THAT WE'VE MADE IS -- WE'VE MADE KIND OF THREE MAJOR RECOMMENDATION. ONE IS THAT YOU ESTABLISH A BASE ZONING FOR THIS AREA THAT IS APPROPRIATE TO THE EXISTING INFRASTRUCTURE THAT IS OUT HERE TODAY. THE SECOND IS TO OVERLAY ON THAT BASE ZONING AN INCENTIVE ZONING, A REDEVELOPMENT ZONING THAT WOULD ALLOW FOR GREATER INTENSITY UNDER CERTAIN CONDITIONS. AND THOSE CONDITIONS WOULD BE PUBLIC ACCESS BEING PROVIDED ALONG THE SHORELINE, ADDITIONAL PUBLIC STREETS PROVIDED TO BREAK UP THE LARGE SUPER BLOCKS AND OTHER URBAN DESIGN CONSIDERATIONS THAT WE HAVE LISTED IN THE REPORT. AND WHAT I'M GOING TO DO -- AND FINALLY THE THIRD RECOMMENDATION IS THAT YOU INSTITUTE STREETSCAPE STANDARDS WITHIN THE AREA SO THAT THE CHARACTER OF THE STREETS WHICH ARE MAJOR PUBLIC SPACE COMPONENTS THAT TRAVERSE THE AREA CAN HELP GIVE IDENTITY AND STRUCTURE TO THE AREA. WHAT I'M GOING TO TRY TO DO NOW IS HIGHLIGHT VERY QUICKLY THE RECOMMENDATIONS WE'VE MADE UNDER EACH OF THOSE CATEGORIES. UNDER THE BASE ZONING, AND THAT IS THE ZONING THAT THE -- THE ZONING THAT WOULD BE PUT IN PLACE TO DEAL WITH EACH PROPERTY ON A PROPERTY BY PROPERTY BASIS, WE BELIEVE THAT IT WOULD NOT BE RESPONSIBLE TO PROMOTE INTENSIFICATION, SIGNIFICANT INTENSIFICATION OF THIS AREA WITHOUT ADDITIONAL PUBLIC INFRASTRUCTURE. AND I'LL EXPLAIN WHAT I MEAN BY THAT IN A MINUTE. BUT THE BASE ZONING, WHAT WE ARE PROPOSING, IS A SINGLE LAND USE CATEGORY OF MIXED USE WITHIN THE ENTIRE AREA WHICH WOULD SUPPORT RESIDENTIAL, OFFICE, RETAIL OR HOTEL USES. WE ARE PROPOSING PREDOMINANT HEIGHT LIMIT OF 60 FEET THROUGHOUT THE ENTIRE AREA. THE EXCEPTIONS TO THAT 60 FEET WOULD BE THE EXISTING AMERICAN-STATESMAN PLANNED UNIT DEVELOPMENT WHICH IS 96 FEET. THE AREA TO THE EAST OF BOULDIN CREEK TOWARD THE TRAVIS HEIGHTS NEIGHBORHOOD WHICH WE'RE RECOMMENDING IS A 45 FOOT HEIGHT LIMIT. AND THE AREA SOUTH OF EAST RIVERSIDE DRIVE AND TO THE EAST OF SOUTH CONGRESS WHICH WOULD ALSO BE 45 FEET UP AGAINST BOULDIN CREEK. WHAT WE'RE ALSO RECOMMENDING IN TERMS OF THE SETBACK PROVISIONS, AND AGAIN, ON THE WATERFRONT OVERLAY ZONE HAS A SINGLE SETBACK RIRT OF 200 FEET. WE'RE CONCERNED THAT THAT 200 FOOT SETBACK REQUIREMENT MIGHT ACTUALLY BECOME A IMPEDIMENT TO THE REDEVELOPMENT OF SOME OF THESE PROPERTIES DOWN HERE, PARTICULARLY THE RESIDENTIAL APARTMENT PROPERTIES IN THIS AREA. AND WHAT WE'RE PROPOSING IS A MORE FLEXIBLE SETBACK PROVISION. A 200 FOOT AVERAGE SETBACK AND A 100 FOOT MINIMUM. SO THAT AS WE TRY TO REVITALIZE AND REDEVELOP THESE PROPERTIES, I SHOULD SAY THAT IS WHAT WE'RE RECOMMENDING IN THIS PORTION, AND A 120 FOOT AVERAGE, 80 FOOT MINIMUM ALONG THE PORTION BETWEEN THE AMERICAN-STATESMAN AND BLUNN CREEK. AND WHAT WE THINK WILL HAPPEN WITH THIS MORE FLEXIBLE APPROACH IS THE ABILITY OF CREATING A NEW PUBLIC ACCESS WAY ALONG THESE RESIDENTIAL PROPERTIES AS THEY REDEVELOP. AND THAT WOULD BE A REQUIREMENT. WE BELIEVE THAT THE SINGLE SETBACK AS CURRENTLY IN THE WATERFRONT OVERLAY ZONE MAY ACTUALLY TURN OUT TO BE A IMPEDIMENT TO THAT REDEVELOPMENT. ALTOGETHER IT WOULD PROVIDE THE SAME AMOUNT OF AREA, IT WOULD JUST GIVE US A LITTLE MORE FLEXIBILITY TO ACHIEVE THOSE PUBLIC ACCESS REQUIREMENTS. AND YOU CAN SEE THIS PICTURE HERE SHOWING WHAT THAT MIGHT LOOK LIKE WITH THE REDEVELOPMENT OF THESE PROPERTIES. [ONE MOMENT, PLEASE, WHILE CAPTIONERS CHANGE].

>> THE SECOND AREA IS THE STATESMAN CROCKETT PARCELS, TEX DOT OFFICES ARE AND THE AMERICAN-STATESMAN. HYATT LAKE SHORE BLOCK BETWEEN CONGRESS AVENUE AND SOUTH FIRST STREET. THIS IS THE SITE WHERE THE GOTHAM PROJECT WAS PROPOSED. AND THE ONE TEXAS CENTER AREA TO THE SOUTH OF EAST RIVERSIDE DRIVE. WHAT WE HAVE DONE IS WE HAVE DEVELOPED A SERIES OF INCENTIVE ZONING WHERE WE WILL PERMIT INTENSIFICATION WITHIN THESE AREAS SUBJECT TO CERTAIN CONDITIONS. FOR INSTANCE, WITHIN THIS AREA, WE ARE SUGGESTING THAT THE DENSITY COULD BE INCREASED TWOFOLD TO 80 DWELLING UNITS PER ACRE AT TWO FAR, WITH HEIGHT LIMITS UP TO 80 FEET SUBJECT TO CERTAIN CONDITIONS. ONE CONDITION BEING THAT THE -- THAT THERE BE A PROGRAM AND A SCHEDULE FOR IMPLEMENTING CONTINUOUS PUBLIC ACCESS ALONG THIS VERY DIFFICULT REACH OF THE LAKE, THAT WE CREATE AN INTERNAL STREET SYSTEM THAT WILL START TO RELIEF TRAFFIC ALONG THE EAST RIVERSIDE DRIVE CORRIDOR, WITHIN THIS AREA, AND START BREAKING UP THE BLOCK PATTERN SO THAT WE CAN HAVE VIEWS AND ACCESS THROUGH TO THE WATER. THAT ADDITIONAL HEIGHT BE DESIGNED IN A WAY THAT WILL NOT IMPEDE VIEWS FROM THE TRAVIS HEIGHTS NEIGHBORHOOD AND THAT IT BE BROKEN UP INTO SMALLER FOOTPRINTS, ANY PORTION ABOVE 45 FEET. AND THAT THERE BE SETBACK PROVISIONS, I THINK IT'S THIS DRAWING THAT SHOWS IN GENERAL WHAT WE ARE TALKING ABOUT IS THAT UNDER THE CURRENT WATERFRONT OVERLAY ZONE, THERE IS NO STEPBACK PROVISION FOR DEVELOPMENT, ALTHOUGH THE TOWN LAKE CORRIDOR STUDY WAS VERY CLEAR IN ASKING FOR A -- FOR THE DEVELOPMENT TO STEP BACK. WHAT WE HAVE SAID IS THAT DEVELOPMENT WILL BE REQUIRED ABOVE THE BASE HEIGHT WILL BE REQUIRED TO STEP BACK SO THAT A 45 DEGREE SOLAR PLAIN IS CREATED ALONG THE SETBACK AREA. THIS IS SHOWING THE NARROWEST THAT IT MIGHT BE AND THE WIDEST THAT IT COULD BE UNDER THIS AVERAGE AND MINIMUM SETBACK PROVISION. SO THAT THE IDEA IS THAT WE WOULD ALWAYS HAVE SUN AT THE SHORELINE, THAT WE WOULD ALWAYS HAVE AN AVERAGE SETBACK OF 120 FEET ALONG THIS REACH OF THE LAKE AND 200 FEET ALONG THE REACH ADJACENT TO THE HYATT AND THE AMERICAN-STATESMAN. SO THE INCENTIVE ZONES PROVIDE VERY SPECIFIC REQUIREMENTS FOR DEVELOPMENT WITHIN EACH OF THESE AREAS. WITHIN THE STATESMAN AND CROCKETT AREAS, THE KEY OBJECTIVE HERE IS TO REDUCE THE IMPACT THAT THE STATESMAN PUBLIC PARK OR THE PARKING GARAGE IS GOING TO HAVE ON THE WATERFRONT AND TO ENCOURAGE THE STATESMAN AND THE CROCKETT PARCELS TO COME UP WITH A SHARED PARKING APPROACH THAT WOULD MOVE THAT PARKING OFF THE LAKE FRONT AND INTO THE CENTER OF THE BLOCK. IT WOULD CALL FOR CREATING NEW STREETS WITHIN THIS AREA, AGAIN TO BREAKUP THE BLOCK. AND TO CREATE PUBLIC ACCESS THAT WOULD COME THROUGH TO THE LAKE FRONT. AND YOU CAN SEE WHAT THAT MIGHT LOOK LIKE. THE IDEA OF TAKING -- AGAIN, TAKING THE GARAGE THAT THE STATESMAN HAS PROPOSED AT THIS LOCATION AND PUTTING IT INTO FACILITIES THAT COULD BE SHARED WITH NEW OFFICE DEVELOPMENT, WITHIN THIS AREA HERE. AND THE IDEA OF PUBLIC STREETS COMING THROUGH THE AREA. TO RELIEF THE PRESSURE ALONG EAST -- RELIEVE THE PRESSURE ALONG EAST RIVERSIDE DRIVE. IF THOSE CONDITIONS ARE MET, WHAT WE ARE SUGGESTING IS THAT HEIGHT WITHIN THIS AREA AND WITHIN THIS AREA COULD GO TO 120 FEET. WE HAVE A MODEL OF WHAT THAT WOULD LOOK LIKE. BECAUSE OUR ADVISORY COMMITTEE WAS VERY CONCERNED ABOUT ADDITIONAL HEIGHT IN THIS AREA ALONG THE CONGRESS AVENUE CORRIDOR. IF YOU CAN SEE THESE BUILDINGS HERE SHOW WHAT THE 120 FOOT HEIGHT LIMIT WOULD LOOK LIKE. HERE AND HERE AS WELL. THE FEELING BEING IF IT'S DONE PROPERLY FROM A DESIGN STANDPOINT THAT THOSE BUILDINGS WOULD FIT INTO THE EXISTING CONTEXT, WOULD CREATE, STILL MAINTAIN AN APPROPRIATE FRAME AND VIEW TO THE CAPITOL. ONE OF THE CRITERIA, ALSO, AS PART OF THIS REDEVELOPMENT ZONING IS CREATING VIEW CORRIDORS AS YOU APPROACH THE LAKE FROM SOUTH CONGRESS AVENUE, BEHIND WHICH OR WITHIN WHICH WE WOULD NOT ALLOW DEVELOPMENT TO TAKE PLACE. ON THE HYATT LAKE SHORE BLOCK, THIS -- THIS WAS AN ISSUE, THAT WAS THE SITE WAS THE GOTHAM WAS PROPOSED. THE BASE ZONING WE ARE SUGGESTING IS 60 FOOT HEIGHT. WE ARE SUGGESTING IT COULD GO TO 120 FEET AT CERTAIN -- IF CERTAIN CONDITIONS ARE MET. ONE OF THE KEY CONDITIONS, IN ADDITION TO THE PUBLIC ACCESS AND TO THE STEPBACKS THAT I EXPLAINED EARLIER IS THE CREATION OF A NEW STREET THROUGH THE AREA HERE THAT WOULD FOLLOW ROUGHLY WHERE THE EXISTING DRIVEWAY OF THE HYATT IS AND TAKING AWAY THE CURB CUTS THAT CURRENTLY EXIST ALONG BARTON SPRINGS ROAD. THIS IS A VERY DANGEROUS CONDITION, AS YOU MIGHT REMEMBER, THAT THE GOTHAM SITE WAS RELYING ON THIS VERY -- THIS ALLEY VERY CLOSE TO CONGRESS AVENUE FOR ITS PRINCIPAL ACT, WE WERE VERY CONCERNED ABOUT THAT. ANY INTENSIFICATION WITHIN THIS AREA WE BELIEVE IS GOING TO REALLY REQUIRE ACCESS FROM THAT SINGULAR STREET. SO DEVELOPMENT OF THAT SITE AND OTHER SITES WITHIN THIS AREA IS REALLY GOING TO REQUIRE THE COLLABORATION OF ALL OF THESE PROPERTY OWNERS TO MAKE THAT WORK. SIMILARLY IN THE ONE TEXAS CENTER AREA, WE ARE SUGGESTING AN ADDITIONAL HEIGHT OF UP TO 90 FEET, WHICH WOULD STEP DOWN TOWARDS THE SCHOOL FOR THE DEAF AND TO THE NEIGHBORHOOD TO THE SOUTH. THE IDEA HERE IS WE WOULD -- WE WOULD LIKE TO REALLY PROMOTE A CIVIC EDGE TO TOWN LAKE PARK HERE. THE IDEA OF SHARED PARKING THAT COULD BE USED BY THE VARIOUS USES THAT OCCUR IN HERE AND FOR USERS OF PALMER AUDITORIUM AND THE NEW PERFORMING ARTS FACILITY AND TOWN LAKE PARK. AND THE CREATION OF THESE INTERNAL STREETS. THE DEVELOPER, THE PROPERTY OWNER WITHIN THIS AREA IS VERY INTERESTED IN REDEVELOPING WITH RESIDENTIAL, WHICH WE THINK WOULD BE A GREAT USE. STEPPING DOWN TOWARD BOULDIN CREEK AND WE HAVE IN THE PLAN, I WON'T GO THROUGH ALL OF THE DETAILS, BUT WE HAVE A LOT OF -- SEARCH PAGES OF DESIGN GUIDELINES THAT DEAL WITH HOW -- SEVERAL PAGES OF DESIGN GUIDELINES THAT DEAL WITH HOW WE INTERFACE WITH THE CREEK AS WELL AS THE LAKE FRONT AND THEY SPRING VERY MUCH FROM THE GUIDELINES THAT WERE WITHIN THE ORIGINAL TOWN LAKE CORRIDOR STUDY. SO IN SUMMARY, WHAT WE ARE DOING HERE IS REALLY TRYING TO ENCOURAGE THE CITY AND THE PROPERTY OWNERS TO COOPERATE WITH ONE ANOTHER, TO COME UP WITH COHESIVE DEVELOPMENT PLANS RATHER THAN PLANNING ON A PROPERTY BY PROPERTY BASIS AND A PIECEMEAL FASHION. IT'S A REAL CHALLENGE BECAUSE, AS I SAID EARLIER, THIS AREA LACKS A LOT OF INFRASTRUCTURE THAT EXISTS IN THE DOWNTOWN. THIS IS NOT AN ISSUE IN THE DOWNTOWN, YOU HAVE A GRID OF STREETS, YOU HAVE PROPERTIES THAT ABUTT THEM. WHAT WE NEED TO DO TO SUPPORT INTENSIFICATION WITHIN THIS AREA IS TO REALLY DEVELOP THAT -- THAT SYSTEM OF PUBLIC OPEN SPACE AND ACCESS AND PUBLIC STREETS AS WE DEVELOP INDIVIDUAL PROPERTIES. SO WITH THAT, I WILL -- ACTUALLY, I WILL JUST -- I HAVE ONE OTHER THING TO TALK TO YOU ABOUT, THAT IS THE STREET SCAPE STANDARDS THAT WE HAVE DEVELOPED AND I WILL JUST GIVE YOU SOME EXAMPLES. I THINK THAT THE STREET AND THE CHARACTER OF THE STREETS AS THEY GO THROUGH THIS AREA IS CRITICAL. IT'S CRITICAL TO THE IMAGE OF THE AREA, IT'S A GATEWAY, MANY OF THESE STREETS CREATE GATEWAYS TO THE CENTER OF THE CITY. SO WE HAVE DEVELOPED A SERIES OF STREET STANDARDS FOR THE KEY STREETS, RIVERSIDE DRIVE, CONGRESS AVENUE AND THE OTHER STREETS THAT WILL START TO RESTRUCTURE THEM AND CREATE THEM MORE AS PEDESTRIAN MULTI MODAL CORRIDORS THAT WILL BE SUITABLE FOR TRAFFIC, BUT THAT WILL SUPPORT BICYCLES, PEDESTRIANS AND TRANSIT. THIS IS THE KROX SECTION THAT WE ARE RECOMMENDING FOR EAST RIVERSIDE DRIVE. CURRENTLY THERE IS A 35 FOOT SET BACK REQUIREMENT FOR DEVELOPMENT. WE ARE SUGGESTING THAT THAT 35 FOOT SETBACK BE RETAINED, BUT THAT IT BE DESIGNED TO INCLUDE A FRONTAGE ROAD, BOULEVARD FRONTAGE ROAD THAT WOULD PROVIDE ACCESS TO INDIVIDUAL PROPERTIES, AVOIDING THE NEED FOR INDIVIDUAL CURB CUTS ALONG EAST RIVERSIDE DRIVE, BUT ALSO CREATING A -- A TRANSITION IN SCALE FROM THE MAJOR ARTERIAL, THE ROADWAY ARTERIAL AND CREATING A MORE HOSPITABLE PEDESTRIAN AND BICYCLE ENVIRONMENT ALONG THE EDGES. WE HAVE DEVELOPED STREET SCAPE STANDARDS FOR CONGRESS AVENUE AND THE OTHER STREETS AS WELL. NOT WITH THE FRONTAGE ROAD IN THOSE CASES, BUT WE BOTH BELIEVE THAT THIS IS A GREAT IDEA, WE THINK, TO TRANSITION FROM A COMMERCIAL STRIP, WHICH IS WHAT EAST RIVERSIDE DRIVE IS NOW TO A MORE URBAN BOULEVARD CONDITION. THE FINAL THING THAT I WOULD SAY IS THAT WE WERE ASKED TO LOOK AT THE POTENTIAL FOR CARRYING THE TRAIL, THE HIKE AND BIKE TRAIL, ALL THE WAY ALONG THE LAKE. AND WHAT WE ARE SUGGESTING IS THAT WITHIN THIS VERY DIFFICULT AREA THAT WE TRY TO ACHIEVE THAT THROUGH REDEVELOPMENT, THROUGH THE REGULATIONS THAT I HAVE JUST DESCRIBED. IT IS POSSIBLE, WE BELIEVE, TO EXTEND THAT TRAIL ALL THE WAY, AT THE FOOT OF THE BLUFF OF THE EDGECLIFF NEIGHBORHOOD, UNDER I-35 AS WELL. WE HAVE LOOKED AT THE TOPOGRAPHY. THIS WOULD BE A PUBLIC RECRUITMENT PROJECT AND WOULD NEED TO FIND FUNDING, BUT WE BELIEVE THAT THERE IS A PROJECT THAT COULD OCCUR HERE AND THAT -- THAT IT IS POSSIBLE TO REALIZE AT LEAST IN THIS SEGMENT OF THE LAKE THE DREAM OF EXTENDING PUBLIC ACCESS ALONG THE SHORELINE. WITH THAT, I THINK I WILL STOP AND OPEN IT UP TO ANY QUESTIONS.

>>GOODMAN: THANK YOU. COUNCILMEMBER ALVAREZ?

>>ALVAREZ: YES, I WAS HOPING YOU COULD CLARIFY SOMETHING FOR ME BECAUSE YOU HAD SEVERAL MAPS ON THERE. IF YOU COULD PUT THAT ONE UP. BECAUSE YOU EARLIER SHOWED A MAP THAT HAD THE BASE ZONING ON IT.

>> YES.

>>ALVAREZ: WITH THE HEIGHTS. AND SO WHAT I AM WONDERING IS -- I THINK YOU CAN JUST LEAVE THAT ONE UP THERE, THAT ONE IS GOING TO DO JUST FINE. OBVIOUSLY NOW YOU HAVE IDENTIFIED ZONES WHERE THERE ARE DIFFERENT I GUESS HEIGHT LIMITATIONS THAT YOU ARE OVERLAYING OVER THE BASE ZONING AND THEN IF THAT'S SO, THEN WHY DO WE SEEN HAVE A BASE ZONING.

>> [INAUDIBLE - NO MIC].

>> IF AN INDIVIDUAL PROPERTY OWNER CAME AND WANTED TO DEVELOP ONE HEIGHT WITHIN THIS AREA, THESE HEIGHTS WOULD PREVAIL, 60 FEET PREDOMINANTLY, 45 FEET IN AREAS AS THEY TRANSITION TOWARD TRAVIS HEIGHTS. HOWEVER, IF A MASTER DEVELOPER OR A DEVELOPER CAME IN AND WAS ABLE TO -- WANTED TO DEVELOP AT GREATER INTENSITIES TO WHAT WE DESCRIBED THERE, GREATER THAN 60 FEET, FOR EXAMPLE, GOTHAM WANTED TO GO TO 120 FEET, THERE MAY BE OTHERS THAT WANT TO GO TO A HIGHER DENSITY, WE FEEL THAT THAT'S APPROPRIATE WITHIN CERTAIN CONDITIONS. IF THEY COULD REACH AGREEMENT WITH ADJACENT PROPERTY OWNERS, IN THE CASE OF THIS -- OF AMERICAN-STATESMAN AND CROCKETT PARCELS TO ACHIEVE OTHER PUBLIC OBJECTIVES, THEN WE WOULD SUPPORT THAT INTENSIFICATION. IN THIS CASE 120 FOOT HEIGHT, 2.0 FAR DENSITY. THAT'S THE IDEA. IT'S AN INCENTIVE BASED STRATEGY TO ENCOURAGE REDEVELOPMENT WITHIN CERTAIN FRAMEWORK.

>>ALVAREZ: SO THAT THIS IS SOMETHING ON A LARGER SCALE, NOT JUST A SINGLE INDIVIDUAL --

>> CORRECT. THIS WOULD BE ON A LARGER SCALE.

>>ALVAREZ: OKAY.

>>GOODMAN: COULD I ASK YOU TO GO BACK AGAIN TO THE HYATT DRIVEWAY. SO YOU ARE THINKING RIGHT NOW IT'S DANGEROUS TO HAVE THAT DRIVEWAY AND YOU WANT IT TO BE A STREET?

>> NO, WELL, THE DRIVEWAY IS NOT DANGEROUS IN ITSELF. THE HYATT DRIVEWAY. THE THING THAT WE ARE TALKING ABOUT AS BEING DANGEROUS IS THE REAL. -- THE ALLEY. SOME OF THE CURB CUTS BETWEEN RIVERSIDE AND CONGRESS AVENUE ON BARTON SPRINGS ROAD, PARTICULARLY WE LOOKED AT THE GOTHAM PROPOSAL HERE, WE WERE VERY CONCERNED ABOUT ITS PRINCIPAL ACCESS COMING ABOUT 60 FEET BACK FROM SOUTH CONGRESS AVENUE, IF YOU HAVE EVER TRIED TO DRIVE IN AND OUT OF THAT ALLEY, YOU REALLY ARE TAKING YOUR LIFE IN YOUR HANDS. SO ONE OF THE CRITERIA FOR INTENSIFYING THIS BLOCK IS THAT WE CONSOLIDATE ACCESS ALONG THE HYATT DRIVEWAY SO THAT ANY DEVELOPMENT THAT OCCURS OVER HERE WOULD GET ITS ACCESS FROM THAT ROADWAY. RATHER THAN HAVING CURB CUTS AND DRIVEWAYS THAT WOULD ENTER THE STREET CLOSER TO THAT INTERSECTION.

>>GOODMAN: OKAY, SO THAT'S WHERE INCENTIVE B% DEFINITELY COME IN, BECAUSE WE WOULD HAVE TO GET THE HYATT TO AGREE TO ALL OF THAT.

>> CORRECT, EXACTLY RIGHT.

>>GOODMAN: ON THE OTHER SIDE WHERE IT COMES OUT ON THE BRIDGE, ARE YOU THINKING THAT'S OKAY?

>> HERE? THIS IS NOT IDEAL. CERTAINLY. THIS IS AN EXISTING CONDITION AND UP UNTIL A FEW MONTHS AGO IT WAS KIND OF PUBLICLY ACCESSIBLE. WE JUST THINK FROM THE LOCAL CIRCULATION STANDPOINT, IT IS DESIRABLE, IF THIS AREA IS GOING TO INTENSIFY, TO HAVE THIS OPEN. OPEN TO PEDESTRIANS, OPEN TO LOCAL VEHICULAR MOVEMENTS.

>>GOODMAN: OKAY. THANK YOU. COUNCILMEMBER SLUSHER?

>>SLUSHER: THE GOTOTHA PROJECT WAS SUPPOSED TO BE 120 FEET; IS THAT CORRECT?

>> YES, THE GOTHAM PROPERTY, I THINK THIS MIGHT BE THE CLEAREST DRAWING TO SHOW YOU, THIS IS THE CURRENT LAND USE DESIGNATIONS, THE GOTHAM PROPERTY IS THIS PURPLE SQUARE HERE. ON SOUTH CONGRESS AVENUE. IT HAS -- HAS A ZONING OF LIMITED INDUSTRIAL, WHICH ALLOWS FOR 60 FEET AND A FLOOR TO AREA RATIO OF ONE. THEIR PROPOSAL AS I UNDERSTAND IT IS 120 FEET.

>>SLUSHER: OKAY. DID I HEAR YOU SAY THAT -- LET'S SEE YOU ARE RECOMMENDING 60 FEET, RIGHT, AS THE CAP?

>> THE BASE ZONING THAT WE ARE PUTTING ON THE SITE HAPPENS TO BE IDENTICAL TO THE ZONING THAT THEY HAVE CURRENTLY UNDER THE LI, UNDER THEIR CURRENT LI DESIGNATION.

>>SLUSHER: YOU ARE RECOMMENDING 60 THROUGHOUT THE OR DOOR?

>> AS A BASE, YES. USR: BY BASE, HOW WOULD YOU GO ABOVE THAT THEN OR WOULD YOU?

>> YOU WOULD GO ABOVE IT IF YOU COULD MEET THE CONDITIONS OF THE INCENTIVE ZONE, WHICH WE HAVE HERE. SO WHAT BASICALLY WE HAVE ESTABLISHED IS A 60 FOOT HEIGHT, DOWN TO 45 FEET THERE, 45 FEET HERE, 60 FEET, THEN YOU COULD GO TO 120 FEET IN THIS AREA AND THIS AREA, THE ORANGE AND PINK, YOU COULD GO TO 120 FEET IF YOU MEET THE CONDITIONS THAT WE HAVE LISTED IN THE PLAN, THAT HAS TO DO WITH PUBLIC ACCESS, IT HAS TO DO WITH CREATING [INAUDIBLE] STREETS, IT HAS TO DO WITH THE WAY THEY DESIGNED THE UPPER LEVEL, ALL OF THE DEVELOPMENT ABOVE THE 60 FEET, THE WAY IT STEPS BACK FROM THE RIVER AND SO ON. THE WAY THEY DEAL WITH PARKING IN TERMS ENCAPSULATE ING AND SCREENING IT, SEVERAL OTHER PROVISIONS LIKE THAT.

>>SLUSHER: THE STATESMAN YOU SAID ALREADY HAS A PLAN WHERE THEY CAN BUILD A BUILDING THAT GOES UP TO 96.6.

>> RIGHT. WE ARE NOT PROPOSING THAT THAT PLANNED DEVELOPMENT BE CHANGED. HOWEVER WE ARE PUTTING INCENTIVES, WE HOPE, IN PLACE THAT WOULD ENCOURAGE THEM TO RECONSIDER ASPECT OF THAT PLAN. THE MOST SIGNIFICANT OF WHICH IS THE PARKING GARAGE THAT THEY -- THAT'S CURRENTLY IN THE PLANNED UNIT DEVELOPMENT THAT OCCURS, RIGHT ON THE WATER'S EDGE. THAT PLAN -- THAT GARAGE AS WE CURRENTLY HAVE IT IN THE P.U.D. IS FOR BASICALLY IT TO BE UNDERGROUND PARKING. WE DON'T BELIEVE THAT THAT IS GOING TO BE TECHNICALLY FEASIBLE TO CONSTRUCT AND THEY MAY HAVE AN INCENTIVE, THE STATESMAN, TO COLLABORATE WITH THIS PROPERTY OWNER DOWN HERE TO ACHIEVE THE PARKING IN A MORE ECONOMIC WAY.

>>SLUSHER: WITH THE HIGHWAY DEPARTMENT, TEXAS D.O.T.?

>> WELL, IT'S OWNED BY CROCKETT. THERE IS A DEVELOPER, BYRUM PROPERTIES MANAGES, TEXDOT IS THE LESSEE. IT'S A COMPLICATED SERIES OF OWNERS, IT WOULD BE A CHALLENGE. I THINK IT WOULD REALLY REQUIRE, YOU KNOW, SOME FACILITATION ON THE PART OF THE CITY TO HELP MAKE THIS HAPPEN AND -- BUT WE THINK THAT IT COULD BE, YOU KNOW, IT COULD BE A MUCH NICER DISTRICT IF THERE WAS SHARED PARKING, IF YOU INTRODUCE SOME -- SOME NEW STREETS WITHIN THE AREA, CREATED SOME MAJOR OPEN SPACE ALONG THE WATER'S EDGE.

>> YOU SAY IT'S AN UNDERGROUND PARKING GARAGE ON THE WATER'S EDGE. HOW FAR DOES&RT COME ABOVE THE GROUND?

>> ACTUALLY UP ABOUT 15 TO 20 FEET ABOVE THE GROUND.

>>SLUSHER: AT THE SITE OF THEIR EXISTING PARKING LOT?

>> YES.

>>SLUSHER: OKAY. THEN THE 96-FOOT BUILDING, WHERE DO THEY PLAN THAT?

>> THEY CURRENTLY HAVE IT PLANNED, I BELIEVE, IN THIS AREA HERE.

>>SLUSHER: ON THAT MAP YOU HAVE SOUTH IS UP ON THAT -- NORTH --

>> NO, NORTH IS UP.

>>SLUSHER: THAT'S BETTER, YEAH.

>> THAT PORTION THERE WAS DESIGNED TO 96 FEET.

>>SLUSHER: SO THAT'S RIGHT BY THE BRIDGE, SORT OF THE SAME LOCATION A A GOTHAM WAS ON THE OTHER SIDE?

>> A LITTLE FURTHER BACK, BUT YES.

>>SLUSHER: 96 FEET, ABOUT NINE STORIES.

>> YES. NO, IT'S ABOUT -- PROBABLY SEVEN STORIES.

>>SLUSHER: SEVEN.

>> I DON'T KNOW IF THAT SIMULATION IS THERE. WE SHOWED WHAT, 120 FOOT BUILDING WOULD LOOK LIKE ALONG THOSE EDGES. ONE OF THE IDEAS THAT THE ADVISORY GROUP CAME UP WITH LAST NIGHT AT OUR MEETING WAS THAT ONE INCENTIVE THAT WE COULD CONSIDER WITHIN THIS AREA IS ACTUALLY MAKING A WIDER SWATH OF OPEN SPACE ADJACENT TO THE CONGRESS AVENUE BRIDGE. AND REALLY ENCOURAGING -- THIS WOULD REALLY AFFECT THE GOTHAM SITE, BUT WHAT THEY WERE SUGGESTING WAS REALLY CONSIDER OPEN SPACE, YOU KNOW, ALL THE WAY UP TO THE HYATT, IN HERE, CREATE A MUCH MORE DRAMATIC APPROACH TO THE LAKE. INCENTIVE STRATEGY.

>>SLUSHER: DO YOU KNOW HOW TALL THE HYATT IS?

>> THE HYATT IS 200 FEET.

>>SLUSHER: OKAY, THANKS, I HOPE I DON'T GET A BAD EDITORIAL.

>>GOODMAN: COUNCILMEMBER WYNN?

>>WYNN: I LIKE THE IDEA OF THE WHOLE CONCEPT OF INCENTIVE ZONING AND, YOU KNOW, BONUSES FOR DOING SOME THINGS THAT HELPED THE OVERALL VISION AND PLAN FOR A BETTER AREA, PARTICULARLY IN REGARDS TO, YOU KNOW, FIXING '80'S ERA, YOU KNOW, DESIGN CONCEPTS. HOW -- HAVE YOU HAD MEETINGS WITH SOME OF THE MAJOR PROPERTY OWNERS THERE? HOW ACTIVE HAVE THEY BEEN INVOLVED IN THIS? HOW ENCOURAGED MIGHT YOU BE Y SOME OF THEIR REACTION TO IT?

>> WE HAVE MET WITH VIRTUALLY EVERY PROPERTY OWNER, SEVERAL OF THEM ARE ON OUR ADVISORY GROUP. THEY HAVE BEEN VERY RE -- RECEPTIVE TO THESE IDEAS. THERE ARE SOME REAL CONSTRAINTS TO THINGS HAPPENING HERE. ONE OF THE PROPERTY OWNERS IS -- AS I SAID WAS MR. CROCKETT. AND BYRUM PROPERTIES ARE REPRESENTED. THEY ARE VERY INTERESTED IN REDEVELOPING IN THIS AREA, ONE OF THE MESSAGES THEY GAVE TO US IS THIS IS REALLY GOING TO REQUIRE THE CITY TO HELP FACILITATE DEVELOPMENT AND STREAMLINE THE PROCESS AND EXPEDITE THINGS. SO THERE ARE SOME REAL CHALLENGES TO GET DEVELOPMENT TO HAPPEN IN SOME OF THESE AREAS. BUT THEY ARE VERY INTERESTED, THE PROPERTY OWNERS. VERY SUPPORTIVE.

>>GOODMAN: THAT'S IT? WELL, WE APPRECIATE YOUR WORK. THANK YOU VERY MUCH. AND I KNOW THAT A LOT OF PEOPLE ARE INTERESTED TO SEE WHAT WE DO WITH THIS NOW.

>>MAYOR WATSON: THE PURPOSE OF THE EXECUTIVE SESSION WILL BE TO DISCUSS CIRCLE C LAND CORPS VERSUS THE CITY OF AUSTIN, IN THE 5 34TH JUDICIAL DISTRICT OF TRAVIS COUNTY, THIS IS PRUDENT TO SECTION 551.071 OF THE GOVERNMENT CODE. SO THAT ANYBODY WATCHING WILL KNOW, THE NEXT ITEM WE HAVE IS SET FOR A TIME CERTAIN OF 5:30. AND THAT IS WHY I AM CHOOSING TO GO INTO EXECUTIVE SESSION AT THIS POINT IN TIME. ACTUALLY AT 5:30 WILL BE THE MUSIC AND PROCLAMATIONS, WE WILL THEN TAKE UP ITEMS -- THE PUBLIC HEARINGS BEGINNING AT 6:00. BUT WE WILL BE IN RECESS TO GO INTO EXECUTIVE SESSION, RECESS EVEN IF THE EXECUTIVE SESSION IS LESS THAN 35 MINUTES, WE WILL REMAIN RECESSED UNTIL 5:30. I WILL ENTERTAIN A MOTION. MOTION MADE BY THE MAYOR PRO TEM, SECONDED BY COUNCILMEMBER ALVAREZ, DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES, WE ARE IN RECESS FOR EXECUTIVE SESSION.

>>MAYOR WATSON: WE REMAIN IN RECESS UNTIL 5:30, THE EXECUTIVE SESSION IS FINISHED. [INAUDIBLE - NO MIC]

>>MAYOR WATSON: HEY, EVERYBODY! CAN I GET EVERYBODY'S ATTENTION? YOU ALL HIT SOME OFF KEY NOTE, MAYBE THEY WILL BE QUIET. IF I COULD GET EVERYBODY TO COME TO ORDER. FOLKS, IT'S TIME FOR SOME GOOD MUSIC. TODAY WE ARE GOING TO GET TO HEAR FROM STARS OVER FICTION. THEY HAVE BEEN PERFORMING THEIR FOUR PART HARMONIES FOR BARBER SHOP, POP, COUNTRY, GOSPEL AND HOLIDAY FAVORITES SINCE MARCH OF 1997. THEY ARE FORMED AND MANAGED BY GARY LEECH, THE GROUP HAS ROCKETED TO CELEBRITY HEIGHTS FOR PERFORMS DURING ROUND ROCK EXPRESS AND AUSTIN ICE BATS GAMES. THEY WERE RECENTLY NAMED THE QUARTET CHAMPION. BOB SCHNIEDER CAN HOLD A NOTE FOR WHAT SEEMS ABOUT 10 MINUTES, ALTHOUGH WE ARE ONLY GOING TO GIVE YOU THREE MINUTES. RON BADGETTE SINGS LEAD. FINALLY, LAST BUT NOT LEAST, BASS CHARLIE SHEPPERD IS THE NEWEST ADDITION TO THE GROUP. THEY SING POPULAR TUNES IN PRETTY AWESOME HARMONY. LET ME PROCLAIM TODAY, JUNE 29TH, 2000, AS STARS OVER TEXAS DAY IN AUSTIN, AND I CALL ON ALL CITIZENS TO JOIN ME IN RECOGNIZING THE MANY OUTSTANDING CONTRIBUTIONS BY THE LOCAL MUSIC COMMUNITY TOWARD THE DEVELOPMENT OF AUSTIN'S SOCIAL, ECONOMIC AND CULTURAL DIVERSITY AND IN RECOGNIZING THE DEDICATED EFFORTS OF ARTISTS WHICH FURTHER AUSTIN'S STATUS AS THE LIVE MUSIC CAPITAL OF THE WORLD, SIGNED KIRK WATSON, MAYOR OF THE CITY OF AUSTIN. LADIES AND GENTLEMEN, JOIN ME IN WELCOMING THE AUSTIN ORIGINAL STARS OVER TEXAS. ((music) SINGING (music)(music)) [APPLAUSE] PRESENCE PRESENCE.

>> STARS OVER TEXAS. [APPLAUSE]

>>MAYOR WATSON: GOOD JOB, THANK YOU ALL.

>> WE CAN MENTION OUR SHOWS, ALL OF US ARE MEMBERS OF A LARGER SOCIETY, THE INTERNATIONAL BARBER SHOP SOCIETY. ABOUT 35,000 GUYS, WE BELONG TO TWO SEPARATE COURSES CHORUSES HERE IN TOWN. WE WILL BE APPEARING JULY 22ND AT THE MCNEIL FINE ARTS CENTER, YOU CAN FIND INFORMATION ABOUT THAT ONLINE, LOOK UP AUSTIN CHORD RANGERS. ALSO THE HOT CHORUS WILL BE GOING INTERNATIONAL THIS WEEK, THEY ARE GOING TO KANSAS CITY TO COMPETE IN ONE OF 24 CHORUSES NATION-WIDE.

>> WORLDWIDE.

>> SORRY, WORLD SIDE, YES. WE ARE REAL PROUD OF THEM, ALSO A BENEFIT DOWN IN SAN MARCOS ON THE -- FOR THE WOMEN'S QUARTET, ON THE 29TH. AND THEN WE HAVE GOT A SHOW ON THE 5TH, WE WILL BE SINGING FOR A KWAN THAT'S CONVENTION, A WHOLE BUNCH OF STUFF AFTER THAT. IF YOU WOULD LIKE TO GET AHOLD OF US, PLEASE FEEL FREE, WE WOULD LOVE TO COME OUT AND SING FOR YOU, TOO.

>>MAYOR WATSON: THAT WAS FANTASTIC. [APPLAUSE]

>>MAYOR WATSON: GREAT JOB. GLAD YOU ALL WERE HERE, THANK YOU, GOOD JOB. THANK YOU VERY MUCH.

>>MAYOR WATSON: BE IT KNOWN BY THESE PRESENTS, THAT I, KIRK WATSON, MAYOR OF THE CITY OF AUSTIN, DO HEREBY PROCLAIM JULY 2000 AS PARKS AND RECREATION MONTH IN AUSTIN. AND I CALL ON ALL CITIZENS TO JOIN ME IN RECOGNIZING THAT RECREATION AND BEAUTIFUL OUTDOOR SETTINGS ARE VITAL TO GROWTH AND DEVELOPMENT AND THE PARKS AND RECREATION ARE CRITICAL TO OUR QUALITY OF LIFE. IN RECOGNIZING THAT MANY MEANINGFUL LEISURE EXPERIENCES CONTRIBUTE TO OUR PHYSICAL AND MENTAL WELL-BEING AND IN RECOGNIZING THAT RECREATION PROGRAMS AND PARKS CREATE SOCIALLY BENEFICIAL CONNECTIONS BETWEEN INDIVIDUALS, GROUPS AND COMMUNITIES. I CALL ON ALL CITIZENS TO JOIN ME IN COMMENDING THE AUSTIN PARKS AND RECREATION DEPARTMENT FOR ITS DEDICATION TO PROVIDING THESE BENEFITS AND THESE SERVICES TO OUR COMMUNITY AND FOR THE EXCELLENCE OF ITS PROGRAMS. WHICH HAVE GARNERED STATE AND NATIONAL REWARDS. I CALL ON ALL CITIZENS TO JOIN ME IN PARTICIPATING IN PARKS AND RECREATION MONTH IN AUSTIN, TEXAS, SIGNED BY ME,.

>>MAYOR WATSON: FOR THE CITY OF AUSTIN, I'M PROUD TO PRESENT THIS TO OUR DIRECTOR OF PARKS AND RECREATION, JESUS OLIVERES, ALSO ROSEMARY CASTLE BEAR, THE CHAIR OF OUR PARKS AND RECREATION BOARD, CASTLE CASTLEBERRY.

>> THANK YOU, MAYOR. [APPLAUSE] ROSEMARY CASTLEBERRY AND ROCKY MALONA, IF YOU COULD COME UP, THEY WOULD ALSO LIKE TO TAKE THE OPPORTUNITY TO RECOGNIZE A VERY SPECIAL UNIT IN THE PARKS AND RECREATION DEPARTMENT, WHICH PROBABLY HAS ONE OF THE BIGGEST JOBS GOING ON RIGHT NOW IN THE CITY. THAT'S THE -- THE AQUATIC SECTION, THEY WOULD LIKE TO RECOGNIZE THIS PARTICULAR GROUP WHICH HAS DONE A FINE JOB.

>> THANK YOU. MAYOR WATSON, COUNCILMEMBERS. IF OUR AQUATIC STAFF COULD PLEASE STANDS UP AND SHOW US WHO YOU ARE. MEMBERS IN THE AUDIENCE, THANK YOU. [APPLAUSE] AND THE DIRECTOR. AS THE PROCLAMATION JUST INDICATED, WE HAVE MANY WONDERFUL AND DEDICATED MEMBERS OF OUR PARKS DEPARTMENT STAFF, BUT THIS YEAR IN PARTICULAR OUR PARKS AND RECREATION BOARD SINGLED OUT OUR AQUATIC STAFF FOR THEIR OUTSTANDING WORK. YOU KNOW, WE AUSTINITES FREQUENT THE POOLS AND THE RIVER FRONTS WITH OVER A MILLION VISITS A YEAR AND WE HAVE 47 POOLS AND WE PROVIDE 8,000 CHILDREN IN AUSTIN WITH SWIMMING LESSONS AND WE HAVE A VARIETY OF REAL CREATIVE AND INVENTIVE PROGRAMS AT THE -- THAT THE AQUATIC STAFF CAME UP WITH, LIKE SPLASH NIGHTS AT DEEP EDDY POOL. IN PARTICULAR WE WANTED TO RECOGNIZE THE BARTON SPRINGS LIFE GUARDS THIS YEAR, BECAUSE WE FEEL THAT THEY HAVE SHOWN DEDICATION TO THEIR JOBS IN DESIGNING AND USING CREATIVE MERCHANDISE TO CLEAN ALGAE FROM BARTON SPRINGS POOL IN ORDER TO MAKE IT SAFE FOR THE PUBLIC WHILE TRYING TO PROTECT THE SPECIAL HABITAT THERE. WE ALSO [INAUDIBLE] OUR AQUATIC STAFF ARE CONSISTENTLY PROFESSIONAL, DEDICATED, COURTEOUS. IN FACT WE WON THE 1999 HE WILL EXPENSE IN AQUATICS REWARD, THE CITY OF AUSTIN WON THAT AWARD FOR OUR AQUATICS PROGRAM. THE PARKS AND RECREATION BOARD RECOGNIZES AND WISHES TO EXPRESS OUR DEEP APPRECIATION FOR THE WORK AND DEDICATION FOR OUR PROGRAM STAFF, FOR THEIR CONSISTENTLY HIGH PERFORMANCE IN PROVIDING AQUATIC SERVICES TO THE PEOPLE OF AUSTIN, IN GIVING US ALL A MUCH NEED RELIEF FROM THE HEAT, THANK YOU. [APPLAUSE]

>> THANK YOU. MAYOR, IN YOUR SEATS WE HAVE PROVIDED YOU WITH A T-SHIRT THAT BASICALLY PROVIDES YOU WITH ALL OF THE BENEFITS THAT PARKS AND RECREATION DEPARTMENT PROVIDES THE CITIZENS OF THIS COMMUNITY. AND, MAYOR, THE BENEFITS ARE ENDLESS. THANK YOU VERY MUCH, FOR ALL OF YOUR SUPPORT, TO THE CITY MANAGER FOR ALL OF THE SUPPORT HE HAS PROVIDED US AND BEING ABLE TO GIVE US THE TOOLS IN ORDER FOR US TO SERVE THE PUBLIC HERE IN THE CITY OF AUSTIN. THANK YOU, MAYOR. [APPLAUSE]

>>MAYOR WATSON: YOU KNOW, ONE OF THE WAYS OUR CITY GOVERNMENT WORKS IS THROUGH FOLKS WHO ARE WILLING TO VOLUNTEER THEIR TIME TO SERVE ON VARIOUS BOARDS AND COMMISSIONS. AND LOTS OF LONG NIGHTS, LOTS OF EFFORT, LOTS OF GOING THROUGH ISSUES AND SPENDING THE KIND OF TIME TO MAKE RECOMMENDATIONS THAT THEN COME TO THE COUNCIL. AND EVERY NOW AND THEN WE GET THE OPPORTUNITY TO DO SOMETHING WHERE WE MAKE A SPECIAL EFFORT TO SAY THANK YOU FOR THAT KIND OF SERVICE. PARTICULARLY TO THOSE WHO HAVE SPENT A GREAT DEAL OF TIME PROVIDING THE KIND OF SERVICE THAT MANY TIMES THE FOLKS OF AUSTIN DON'T EVEN KNOW IS HAPPENING. BUT IT'S NECESSARY AND IT'S IMPORTANT TO WHAT WE DO. THAT'S ONE OF THESE OPPORTUNITIES TODAY IS WE GET TO PROVIDE A DISTINGUISHED SERVICE AWARD. LET ME READ THIS. IT SAYS DISTINGUISHED SERVICE AWARD FOR UNTIRING EFFORTS AND UNSELFISH SERVICE TO OUR COMMUNITY DURING HER 11 YEARS OF TENURE AS A MEMBER AND VICE CHAI ENVIRONMENTAL BOARD, DR. JESSICA JOYCE CHRISTIAN IS DESERVING OF PUBLIC ACCLAIM AND RECOGNITION. THIS CERTIFICATE IS PRESENTED IN ACKNOWLEDGMENT AND APPRECIATION THEREOF, THIS 29TH DAY OF JUNE, 2000. IT'S ON BEHALF OF THE ENTIRE CITY COUNCILL OF AUSTIN, TEXAS, AND SIGNED BY ME, KIRK WATSON, MAYOR OF THE CITY OF AUSTIN, TEXAS, I WANT TO SAY A BEHALF OF ALL OF THE CITIZENS OF AUSTIN THANK YOU VERY MUCH FOR YOUR DISTINGUISHED SERVICE.

>> THANK YOU VERY MUCH. [APPLAUSE]

>> WELL, I WOULD JUST LIKE TO SAY IT'S BEEN A GREAT PLEASURE SERVING, ESPECIALLY DURING THESE LAST YEARS IN WHICH THE CITY COUNCILL LISTENED A LOT MORE CLOSELY TO WHAT THE ENVIRONMENTAL BOARD HAD TO SAY. I AM COMMITTED TO FIND NEW WAYS OF PROTECTING TREES AND IN NORTH CAROLINA WHERE I AM MOVING TO TAKE ON A TENURE TRACK POSITION, I WILL CERTAINLY PUT THIS DISTINGUISHED SERVICE AWARD IN MY NEW OFFICE AND ALWAYS BE REMINDED OF THIS WONDERFUL CITY. THANK YOU VERY MUCH. [APPLAUSE]

>>MAYOR WATSON: THANK YOU.

>> WE HAVE ANOTHER RECOGNITION TO EXPRESS THE SUPPORT THAT YOU HAVE GIVEN THE WATERSHED PROTECTION DEPARTMENT. AND WHICH WE HAVE REALLY APPRECIATED THESE YEARS. AND WISH YOU VERY WELL IN YOUR NEW HOME AND KNOW THAT THOSE LUCKY CITIZENS WILL HAVE AN ENVIRONMENTAL WATCHER MAKING SURE THAT THEIR ENVIRONMENT STAYS AS GOOD AS IT CAN. IT'S A PLAQUE FOR YOUR SERVICE AND LEADERSHIP AS MEMBER AND VICE CHAIR OF THE AUSTIN ENVIRONMENTAL BOARD. I WILL POINT OUT THAT IT IS MADE OF PLASTIC, NOT OF WOOD. [LAUGHTER].

>> WE HAVE ONE OTHER THING TO GIVE YOU, THAT IS AS WE PRESENTED THINGS TO YOU ON THE ENVIRONMENTAL BOARD YOU NEVER CEASE TO BRING UP THE TREES AS A MAJOR ISSUE, WE GOT YOU A BOOK CALLED THE LORAX BY DR. SEUSS, IT SAYS IT'S PRESENTED BY THE CITY OF AUSTIN, TO DR. JESSICA JUICE CHRISTIE, ENVIRONMENTAL BOARD MEMBER FOR SPEAKING FOR THE TREES. WE WANTED TO GIVE YOU THIS BOOK.

>> YOU ARE VERY KIND. THANK YOU. [APPLAUSE]

>> THANK YOU.

>>GRIFFITH: AND OUR NEXT DISTINGUISHED SERVICE AWARD IS HELEN S. NIECENER, I WOULD LIKE THE MAYOR PRO TEM TO PLEASE JOIN ME AND THE MEMBERS OF HELEN'S STAFF. WHO ARE SO HAND PICKED, SO EXCELLENT. WOULD YOU COME UP AND STAND WITH HER, ALSO. LET'S TALK A LITTLE BIT ABOUT HELEN WHILE HER STAFF IS COMING UP. HELEN IS RETIRING FROM THE OFFICE OF THE CITY AUDITOR AFTER 23 YEARS OF SERVICE. SHE JOINED THE OFFICE IN 1977 AS AN AUDITOR AFTER COMPLETING HER ACCOUNTING DEGREE FROM THE UNIVERSITY OF TEXAS AT AUSTIN. HELEN IS ALSO A CERTIFIED PUBLIC ACCOUNTANT. HIGHLIGHTS OF HELEN'S 23 YEAR TENURE INCLUDE THE KNIGHTEN AWARD FOR BEST AUDIT OF 1999, SPONSORED BY THE NATIONAL ASSOCIATION FOR LOCAL GOVERNMENT AUDITORS. THE INSTITUTE OF INTERNATIONAL AUDITORS, AUSTIN CHAPTER, EMPLOYER AWARD IN RECOGNITION OF THE OFFICES CONTRIBUTIONS TO THE AUDITING PROFESSION. THE INSTITUTE OF INTERNAL AUDITORS COMMITMENT TO QUALITY IMPROVEMENT AWARD FOR THE OFFICES, ACCOMPLISHMENTS IN DEVELOPING AND MAINTAINING A HIGHLY QUALIFIED WORKFORCE. AND INTERNAL SYSTEMS WHICH PROMOTE QUALITY AUDIT WORK. I WOULD LIKE TO MENTION ONE OF THOSE PARTICULAR INNOVATIVE SPECIAL THINGS THAT HELEN HAS DEVELOPED. IT'S CALLED QUICK RESPONSE. AUDITS CAN TAKE FOREVER. IF YOU CALL UP AND WANT TO KNOW SOMETHING, YOU MIGHT FIND OUT THAT THE AUDIT OF THAT DEPARTMENT IS GOING TO HAPPEN IN 8 YEARS, IT TAKE SIX MONTHS AFTER THAT TO GET IT DONE. NOT SO WITH QUICK RESPONSE. IF YOU NEED SOMETHING BY THURSDAY, IF YOU NEED SOME INFORMATION, IF YOU NEED JUST A DIP STICK OVERVIEW, YOU CALL AND ASK FOR A QUICK RESPONSE. THIS IS ONE OF THE MOST HELPFUL AND USEFUL AND POSITIVE THINGS THAT HELEN INNOVATED. SHE SERVED AS PRESIDENT OF THE NATIONAL ASSOCIATION OF LOCAL GOVERNMENT AUDITORS FOR '99 AND 2000. NUMEROUS AUDITS, INCLUDING THE YOUTH PARTNERED AUDITS, POLICE MANAGEMENT SYSTEMS AND THE NEW AIRPORT PROJECT, WHICH HAVE MADE AUSTIN GOVERNMENT BETTER AND MORE ACCOUNTABLE. A VERY, VERY SPECIAL TALENT. FOR 23 YEARS, WE ARE SO DELIGHTED AND SO PLEASED THAT WE HAD HER SERVICES AND HER LEADERSHIP. AND ONE OF THE THINGS THAT SHE IS MOST TALENTED AT IS CHOOSING AND KEEPING THE FINEST STAFF. I HAVE NEVER CREASED TO BE IMPRESSED BY THE QUALITY -- SEESESED QUALITY OF THE PEOPLE WHO SURROUND HERE, HERE THEY ARE SURROUNDING HER TODAY. DISTINGUISHED SERVICE AWARD FOR HER UNTIRING EFFORTS AND UNSELFISH SERVICE TO OUR COMMUNITY DURING HER 23 YEAR TENURE WITH THE CITY OF AUSTIN, THE LAST 10 AS CITY AUDITOR. HELEN S NEESNER IS DESERVING OF PUBLIC ACCLAIM AND RECOGNITION, SHE EXEMPLIFIES THE HIGHEST STANDARDS OF INTEGRITY, PROFESSIONALISM AND PUBLIC SERVICE. UNDER HER LEADERSHIP THE OFFICE OF THE CITY AUDITOR MADE SIGNIFICANT ACHIEVEMENTS AND BECAME RECOGNIZED AS A NATIONAL LEADER IN GOVERNMENT AUDITING. PRESENTED THIS 29TH DAY OF JUNE, AD, 2000. THE CITY COUNCILL OF AUSTIN. THANK YOU, HELEN NEESNER. [APPLAUSE]

>> FEELS GOOD TO HEAR THOSE THINGS. IT'S -- IT'S BEEN A GOOD 23 YEARS. AND IT'S BEEN AN HONOR AND A PRIVILEGE TO SERVE AS THE CITY'S AUDITOR. YOU KNOW, IN THINKING ABOUT THE 23 YEARS, THE BEST WAY I CAN DESCRIBE THEM IS AN ADVENTURE. A CHALLENGING AND REWARDING ADVENTURE. AND BECAUSE I'VE BEEN AN AUDITOR THOSE 23 YEARS, ACTUALLY I THINK I HAVE SUFFICIENT AUDIT EVIDENCE TO ACTUALLY CLASSIFY IT AS PROBABLY EXTRAORDINARY. CERTAINLY THERE ARE MANY PEOPLE TO THANK, BOTH FOR THE CHALLENGING PART AS WELL AS THE REWARDING PART. CERTAINLY THESE FOLKS THAT YOU SEE HERE AND AS -- AS ALWAYS, THOUGH, WHAT HELPS SOMEONE BE SUCCESSFUL IS THEIR FAMILY. AND I CERTAINLY WANT TO THANK MY THREE GUYS, MY HUSBAND AND TWO SONS, THEY HAVE BEEN VERY SUPPORTIVE, VERY UNDERSTANDING, VERY LOVING. JACK AND I JUST CELEBRATED OUR 25TH WEDDING ANNIVERSARY TWO WEEKS AGO. HE'S HERE IN THE AUDIENCE. JACK CAN WE ASK YOU TO STAND UP AND TODD. [LAUGHTER]. [APPLAUSE]

>> I'M ALWAYS VERY PROUD OF MY SONS, BRADLEY AND TODD. TODD IS HERE AS WELL. TODD, DO YOU WANT TO STAND UP? [LAUGHTER]. [APPLAUSE] MY 15-YEAR-OLD SON IS AT THE UNIVERSITY OF TEXAS ATTENDING A SUMMER DEBATE CAMP, SO DIDN'T WANT TO PULL HIM OUT OF THAT. BUT OTHERWISE HE WOULD HAVE BEEN HERE AS WELL. I ALSO WANT TO THANK MY EXTENDED FAMILY, MANY OF WHOM RESIDE IN THE SCHULENBURG AREA, IF YOU KNOW WHERE THAT IS. THEY ARE TOO MANY TO NAME, BUT YOU HAVE HEARD IT TAKES A VILLAGE, WE HAVE ONE OF THOSE. [LAUGHTER]. I CERTAINLY ALSO WANT TO THANK MY FRIENDS. PROBABLY HAVEN'T HAD AS MUCH TIME WITH THEM AS I WOULD LIKE AND AS I HOPE I WILL HAVE. BUT THEY HAVE HUNG IN THERE WITH ME. THERE ARE A COUPLE WHO ACTUALLY HAVE -- ARE SO LOYAL THEY WATCH THE AUDIT COMMITTEE MEETINGS. NOW THAT'S TRUE FRIENDSHIP. [LAUGHTER]. AND, OF COURSE, MY CO-WORKERS, THOSE HERE, ALL OF THE EMPLOYEES OF THE OFFICE, CURRENT AND PAST, AND AGAIN IT'S DIFFICULT REALLY TO PUT IN WORDS HOW PROUD I AM OF THE WORK THAT THEY DO EVERY DAY TO MAKE GOVERNMENT BETTER AND MORE ACCOUNTABLE FOR THE CITIZENS. AND, YOU KNOW, THIS CITY HAS MANY, MANY EXCELLENT EMPLOYEES WHO ARE VERY DESERVING OF HIGH APPRECIATION FOR THE JOB THAT THEY DO EVERY DAY. AND SO I AM VERY PROUD TO BE ABLE TO SAY THAT MY FIRST CAREER HAS BEEN IN PUBLIC SERVICE, AND AFTER TAKING SOME TIME FOR ME, FOR MY FAMILY, LIKELY I WILL BE ABLE TO SAY MY SECOND AND THIRD AND MAYBE FOURTH CAREER WILL BE IN PUBLIC SERVICE AS WELL. SO WHILE IT'S TIME FOR ME TO MOVE ON TO THE NEXT PART OF MY LIFE'S WORK, I KNOW THAT THE CITY IS IN GOOD HANDS WITH NEW LEADERSHIP IN THE AUDIT OFFICE, STEVE MORGAN, AND THE VERY CAPABLE AND DEDICATED STAFF OF THAT OFFICE. UP BE WELL SERVED. THANKS. [APPLAUSE] YOU WILL BE WELL SERVED, THANKS. [APPLAUSE]

>>MAYOR WATSON: TIM? DO YOU WANT TO COME UP? YOU KNOW, WE JUST TALKED ABOUT A 23-YEAR EMPLOYEE AND THE FACT IS THAT THE FOLKS THAT DO THE WORK ON BEHALF OF THE CITY, DAY TO DAY, EVERY DAY, ARE REALLY WHAT MAKES A CITY. CITY GOVERNMENT. AND IT IS PUBLIC SERVICE. AND I'VE ALWAYS FELT A STRONG CONNECTION TO FOLKS THAT WORK THE DAY TO DAY JOB IN PUBLIC SERVICE BECAUSE I KNOW THAT'S -- YOU KNOW, IT'S TRITE, BUT THE PHRASE MEANS SOMETHING, WHERE THE RUBBER MEETS THE ROAD, WHERE THE SERVICE IS ACTUALLY PROVIDED. OUR NEXT DISTINGUISHED SERVICE AWARD IS FOR SOMEONE THAT FITS THAT DESCRIPTION, ALSO. AND HE'S FIT THAT DESCRIPTION FOR A LONG TIME. IN FACT, PAUL HILGERS ASKED ME JUST A SECOND AGO WHEN I WALKED UP TO SAY HELLO TO HIM, HE SAID WHERE WERE YOU IN MARCH OF 1964? AND I WAS IN MS. JULYIAN'S FIRST GRADE CLASS CELEBRATING MY 6TH BIRTHDAY IN 1964. BUT TIM RAMIREZ WAS STARTING HIS CAREER WITH THE CITY OF AUSTIN. IN MARCH OF 1964. HE HAS SPENT MOST OF HIS YEARS IN THE FINANCE DIVISION OF NEIGHBORHOOD HOUSING AND COMMUNITY DEVELOPMENT AND LET ME TELL YOU, HE HAS SPENT UNTOLD, COUNTLESS NUMBER OF HOURS MONITORING GRANT FUNDS FOR PROGRAMS SUCH AS OUR SECTION 8 HOUSING PROGRAM. IN ADDITION, HE PRODUCES THE ANNUAL REPORTS AND THE RECONCILIATIONS THAT ARE RELATED TO THOSE VARIOUS GRANT PROGRAMS. SO IT IS WITH GREAT HONOR THAT I GET THE OPPORTUNITY TO ISSUE THIS DISTINGUISHED SERVICE AWARD FOR HIS UNTIRING EFFORTS AND HIS UNSELFISH SERVICE TO OUR COMMUNITY DURING HIS 36 YEAR TENURE WITH THE COMPTROLLER'S OFFICE AND AS A FINANCE STAFF MEMBER OF THE NEIGHBORHOOD HOUSING AND COMMUNITY DEVELOPMENT OFFICE. TIM P. RAMIREZ IS DESERVING OF PUBLIC ACCLAIM AND RECOGNITION. WE WILL MISS HIS CONSISTENT AND UNWAIVERING PRESENCE AND STRONG DESIRE FOR APPROPRIATENESS, COMPLETENESS AND ACCURACY AS A STEWARD OF PUBLIC FUNDS. PRESENTED THIS 29TH DAY OF JUNE, 2000, ON BEHALF OF THE ENTIRE CITY COUNCILL OF AUSTIN, TEXAS, IT'S MY HONOR AS MAYOR OF THE CITY OF AUSTIN TO PRESENT THIS DISTINGUISHED SERVICE AWARD TO TIM PEACE P.RAMIREZ, THANK YOU FOR ALL YOU DO. [CHEERING]. [APPLAUSE]

>> THANK YOU. THANK YOU, MAYOR WATSON, COUNCILMEMBERS. PAUL HILGERS, MY CO-WORKERS THAT ARE HERE AND MY FAMILY WHO IS SITTING IN THERE SOMEWHERE.

>>MAYOR WATSON: HAVE YOUR FAMILY STAND UP. [APPLAUSE]

>> I WISH TO -- TO THANK EVERYBODY ELSE THAT'S HERE FOR THIS SPECIAL SERVICE AWARD PRESENTATION. I WILL ALWAYS CHERRY RIDGE THIS MOMENT AND REMEMBER IT -- CHERISH THIS MOMENT AND REMEMBER IT AND I THANK YOU AGAIN. [APPLAUSE]

>>MAYOR WATSON: THAT CONCLUDES THE PROCLAMATIONS, WHAT WE WILL DO IN JUST A MOMENT, WE WILL CALL THE CITY COUNCILL MEETING BACK TO ORDER. @

>>MAYOR WATSON: I WILL CALL THE AUSTIN CITY COUNCILL TO ORDER. IF I COULD PLEASE GET EVERYBODY'S ATTENTION. YOU FOLKS ARE HAVING WAY TOO MUCH FUN. THANK YOU, I WILL CALL THE CITY COUNCILL BACK TO ORDER, THE FIRST ITEM WE WILL TAKE UP WILL BE ITEM NO. 98. ITEM NO. 98 IS A PUBLIC HEARING AND APPROVAL OF AN ORDINANCE AMENDING CHAPTER 2-4, 5-5 AND 25-11 OF THE CITY CODE RELATING THE HISTORIC LANDMARK COMMISSION AND CORRECTING SECTION 2-4-6 ON 2 TO THE CITY CODE RELATING THE SIGN CONTROL BOARD AND RENUMBERING CHAPTER 2-4, ARTICLE XLII OF THE CITY CODE RELATING TO THE COMMISSION ON IMMIGRANT AFFAIRS.

>> THE ITEM BEFORE YOU WAS INITIATED BY THE HISTORIC LANDMARK COMMISSION TO CLARIFY CERTAIN REFRESH MY MEMORY OF THE CITY CODE AND TO MAKE THE CITY ELIGIBLE FOR PARTICIPATION IN THE CERTIFIED LOCAL [INAUDIBLE]. THE PROPOSED AMENDMENTS WOULD FORMALIZE CERTAIN STANDARDS THAT THE CITY ALREADY FOLLOWS. IT WOULD REQUIRE THAT THE HISTORIC LANDMARK COMMISSION INCLUDE AT LEAST ONE REAL ESTATE PROFESSIONAL AND ONE PROFESSIONAL HISTORIAN, IT WOULD REQUIRE THAT MEMBERS OF THE HISTORIC LANDMARK COMMISSION HAVE A DEMONSTRATED KNOWLEDGE OF HISTORIC PRESERVATION AND REPRESENT THE GENERAL ETHNIC MAKEUP OF THE COMMUNITY. REQUIRE THE LANDMARK COMMISSION TO PREPARE A LISTING OF PROPERTIES, FOR OBJECTS NOT PERMANENTLY AFFIXED TO LAND, NOT ELIGIBLE FOR HISTORIC ZONING, IT WOULD DESIGNATE A CITY EMPLOYEE TO SERVE AT PRESERVATION OFFICER AND REQUIRE THEM TO USE FEDERAL GUIDELINES. MOST OF THESE CHANGES ARE NECESSARY IN ORDER TO MAKE AUSTIN ELIGIBLE FOR PARTICIPATION IN THE CERTIFIED LOCAL GOVERNMENT PROGRAM, WHICH IS A COOPERATIVE PROGRAM OF FEDERAL, STATE AND LOCAL GOVERNMENTS TO SUPPORT HISTORIC PRESERVATION EFFORTS. BENEFITS -- BENEFIT OF THE CITY'S PARTICIPATION INCLUDE FIRST OF ALL, WE WOULD JOIN A NETWORK OF 37 OTHER CITIES AN COUNTIES IN TEXAS TO SHARE INFORMATION AND OBTAIN TECHNICAL SUPPORT. SECONDLY THE CITY WOULD QUALIFY FOR GRANTS FROM THE STATE HISTORIC PRESERVATION FUND WHICH CAN BE USED TO IDENTIFY, EVALUATE, DESIGNATE AND PROTECT LOCAL HISTORIC RESOURCES. FOR EXAMPLE, FUNDS COULD BE USED TO CONDUCT DETAILED NEIGHBORHOOD SURVEYS AS RECOMMENDED IN SEVERAL RECENTLY ADOPTED NEIGHBORHOOD PLANS. THIRDLY IT WOULD ALLOW THE CITY TO REVIEW AND COMMENT ON PROPOSED LISTING OF PROPERTIES IN THE NATIONAL REGISTER OF HISTORIC PLACES AND ADDITIONAL TOOLS TO DEAL WITH HISTORIC PROPERTIES THAT HAVE NOT BEEN ADEQUATELY MAINTAINED. THIS ITEM IS RECOMMENDED BY THE HISTORIC LANDMARK COMMISSION, THE BUILDING AND STANDARDS COMMISSION AND THE PLANNING COMMISSION. THIS PARTICULAR ITEM IS ESSENTIALLY A CLEANUP ITEM, THE LANDMARK COMMISSION IS ALSO WORKING ON SOME OTHER MORE SUBSTANTIVE AMENDMENTS THAT THE COUNCIL REQUESTED, WE ANTICIPATE THOSE WILL BE BROUGHT BEFORE YOU IN THE FALL, I WOULD BE GLAD TO ANSWER ANY QUESTIONS.

>>MAYOR WATSON: COUNCIL, DO YOU HAVE ANY QUESTIONS AT THIS POINT OF MR. ZAPALAC? WE HAVE TWO PEOPLE THAT HAVE SIGNED UP, BOTH INDICATING AND WISHING TO SPEAK. AND BOTH IN FAVOR. MR. THOMASSON AND TERRY O'CONNELL.

>> GOOD EVENING, I'M BRATTO THOMASSON, THE CERTIFIED COORDINATOR OF THE HISTORIC LANDMARK COMMISSION, MS. STOCKLAND ASKED ME TO ATTEND THE MEETING TO SHOW MY INTEREST IN AUSTIN PERHAPS BECOMING PART OF THE PROGRAM. I WOULD LIKES TO REITERATE ABOUT WHAT GEORGE REMARKED. THE CLT PROGRAM IS A FEDERAL, STATE AND LOCAL GOVERNMENT PARTNERSHIP, THAT WAS DESIGNED TO RECOGNITION AND OFFER TECHNICAL AND FINANCIAL ASSISTANCE TO LOCAL COMMUNITIES WHO SHOW STRONG LOCAL PRESERVATION PROGRAMS. LAST YEAR -- THERE ARE 1239 COMMUNITIES THAT PARTICIPATE IN TEXAS NOW. LAST YEAR WE HAD -- WE HAD GRANTS UP TO $10,000, THESE GRANTS WERE MATCHING GRANTS, SO THE LOCAL COMMUNITIES WOULD MATCH THE AMOUNT GRANTED. AND THEY WERE GIVEN TO -- TO PROJECTS THAT INCLUDE PRESERVATION PLANNING, AS GEORGE MENTIONED LOCAL SURVEY, NATIONAL REGISTER SURVEY, SO THESE GRANTS COULD BE USED TO HELP FUND AND COMPLETE SURVEYS OF HISTORIC PROPERTIES IN THE CITY. THEY HAVE ALSO BEEN USED TO PRODUCE HISTORIC WALKING TOUR BROCHURES, CEMETERY BROCHURES, ANY SORT OF THEME BROCHURES OR MUSEUM BROCHURES THAT MIGHT HIGHLIGHT AND HELP RESEARCH SOME OF THE HISTORY OF THIS HISTORIC PROPERTIES IN THE CITY. I WOULD BE GRAD TO ANSWER ANY OF YOUR QUESTIONS.

>>MAYOR WATSON: DOES ANYONE HAVE ANYSTIONS? THANK YOU. MS. O'CONNELL.

>> THANK YOU, MAYOR AND COUNCILMEMBERS. MY NAME IS TERRY O'CONNELL, I'M A MEMBER OF THE AUSTIN LANDMARK COMMISSION, I JUST WANTED TO LET YOU KNOW THAT WE HAVE BEEN WORKING TOWARDS THIS GOAL FOR -- FOR QUITE A WHILE NOW. WE ARE VERY EXCITED ABOUT THE POTENTIAL FOR ASSOCIATING WITH THIS PROGRAM AND THE AUSTIN LANDMARK COMMISSION IS FULLY SUPPORTIVE.

>>MAYOR WATSON: THANK YOU. THOSE ARE ALL OF THE PEOPLE THAT HAVE SIGNED UP TO SPEAK ON ITEM NO. 98. I WILL ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING. MOTION MADE BY COUNCILMEMBER SLUSHER, SECOND? SECONDED BY COUNCILMEMBER ALVAREZ, ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES WITH CLOSED THE PUBLIC HEARING. 103 IS TO APPROVE THE SUBSTANTIVE ASPECT OF THAT, APPROVAL OF THE ORDINANCE, IS THERE A MOTION?

>>SLUSHER: MOVE APPROVAL.

>>MAYOR WATSON: MOTION MADE BY COUNCILMEMBER SLUSHER, SECONDED BY COUNCILMEMBER ALVAREZ, ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES WITH COUNCILMEMBER GRIFFITH BEING SHOWN VOTING AYE AND MAYOR PRO TEM BEING SHOWN VOTING AYE. THAT WILL TAKE US TO NUMBER 99, A PUBLIC HEARING TO CONSIDER APPROVAL OF A VARIANCE REQUEST TO ALLOW ENCROACHMENT OF A PROPOSED BUILDING AND PARKING GARAGE ON THE 25 YEAR AND 100 YEAR FLOODPLAINS OF SHOAL CREEK AT 907 WEST 9TH STREET AND TO WAIVE THAT REQUIREMENT TO DEDICATE A DRAINAGE EASEMENT TO THE LIMITS OF THE 100 YEAR FLOODPLAIN.

>> I AM GEORGE OSWALD WITH THE WATERSHED PROTECTION DEPARTMENT. THE PROPOSED DEVELOPMENT IS KNOWN AS THE MACONA CONDOMINIUMS, MIXED USE DEVELOPMENT, COMBINING BOTH RETAIL AND RESIDENTIAL. THE LOCATION IS AT THE INTERSECTION OF NORTH LAMAR -- NORTH LAMAR BOULEVARD AND WEST 9TH STREET BOUNDED ON THE EAST BY HENDERSON STREET. THE PROPOSED BUILDING ENCROACHES INTO BOTH THE 25 AND 100 YEAR FLOODPLAIN. THE NROOP REGULATIONS FOR THE CENTRAL BUSINESS AREA PROHIBIT ENCROACHMENT INTO THE 25 YEAR FLOODPLAIN. THE STAFF IS RECOMMENDING DENIAL OF THE VARIANCE BECAUSE THE -- THE DISALLOWANCE OF THE VARIANCE WOULD NOT IMPART A -- A FINANCIAL HARDSHIP WITH RESPECT TO -- TO REASONABLE ECONOMIC USE OF THE LAND ON THE APPLICANT. WITH RESPECT TO THE LAYOUT, OF THE PROPOSED BUILDING, THE TOTAL SITE IS ABOUT AN ACRE IN AREA. THE ENCROACHMENT IS RELATIVELY MINOR, ABOUT 15 FEET INTO THE 25 YEAR FLOODPLAIN. THE APPLICANT COULD HAVE MOVED THE BUILDING BOUNDARY BACK OUT OF THAT ZONE OF THE 25 YEAR FLOODPLAIN AND NO VARIANCE WOULD HAVE BEEN REQUIRED AND IT STILL WOULD HAVE ALLOWED THE DEVELOPMENT AS -- ESSENTIALLY AS PROPOSED, BUT WITH THE INCLUSION OF THAT 15 FEET TO BE DESIGNED AND CONSTRUCTED. AS FAR AS PUBLIC SAFETY ASPECTS ASSOCIATED WITH THE VARIANCE, WE HAVE RUN HYDRAULIC MODELS, THEY INDICATE THAT THE MINOR ENCROACHMENT WILL NOT INCREASE FLOODING CONDITIONS ON ANY PUBLISHES RIGHTS OF WAYS OR OTHER PROPERTIES. MENTS THE CITY'S SAFETY PERSONNEL HAVE CLEAR ACCESS TO THE BUILDING FROM BOTH 9TH STREET AND LAMAR BOULEVARD DURING HIGH WATER EVENTS. AND THE PROPOSED SUB ELEVATED GARAGE WILL BE CONSTRUCTED SUCH THAT THE RAMP LIPS UP, AT LEAST ONE FOOT ABOVE THE 100 YEAR FLOODPLAIN ELEVATION GOING DOWN TO PREVENT FLOOD WATERS FROM ENTERING THE PARKING GARAGE, THAT'S CONSISTENT WITH FEMA CRITERIA. WITH THAT I WILL TAKE YOUR QUESTION.

>> DOES ANYBODY HAVE ANY QUESTIONS AT THIS POINT?

>>WYNN: MR. MAYOR?

>>MAYOR WATSON: YES, COUNCILMEMBER WYNN.

>>WYNN: WOULD YOU SAY THAT THE PROJECT COULD HAVE BEEN DINED -- DESIGNED BACK OUT OF THE 25 YEAR FLOODPLAIN, AFTER YOU GO UP SOME ELEVATION, CANTILEVER BACK OVER TO WHERE THEY WANTED TO PHYSICALLY DESIGN THE BUILDING OR CAN YOU NOT EXTEND BACK OVER INTO THE AIR SPACE OF THE 25 YEAR FLOODPLAIN.

>> YOU CAN CANTILEVER OVER AND GO UP FROM THAT POINT.

>> AT WHAT HEIGHT?

>> WELL, YOU WOULD HAVE TO GO ABOVE THE ENTRY TO THE PARKING GARAGE, THAT'S WELL ABOVE THE 100 -- THE CEILING OF THE PARKING GARG, THAT'S WELL ABOVE THE 100 YEAR SURFACE ELEVATION, THE PROPOSED RETAIL AND RESIDENTIAL AREAS COULD HAVE BEEN ACCOMMODATED BY THAT CANTILEVERED APPROACH.

>> THE.

>>WYNN: THE SECOND QUESTION, THE MEMORIAL DAY FLOOD IN '81, WAS THAT A 100 YEAR EVENT OR LESS, WHAT ELEVATION WOULD THAT HAVE BEEN ON THIS PROJECT?

>> THE MEMORIAL DAY '81 FLOOD IN THE UPPER PORTION OF THE WATERSHED WAS VERY, VERY CLOSE TO THE 100 YEAR EVENT, THAT'S WHERE THE HIGHEST RAINFALL OCCURRED. DOWN IN THE DOWNTOWN AREA, IT WAS PROBABLY NEAR THE LEVEL OF A 25 YEAR EVENT. THAT'S THE MOST SIGNIFICANT RAINFALL EVENT WE'VE HAD FROMM THAT DATE TO PRESENT.

>>WYNN: THANK YOU.

>>MAYOR WATSON: ANY OTHER QUESTIONS AT THIS POINT? WE DON'T HAVE ANYBODY SIGNED UP TO SPEAK. MR. BURY ARE YOU GOING TO ADDRESS THIS ISSUE? IT WOULD BE HELPFUL WHEN YOU DO THAT IF YOU WOULD DO A COUPLE OF THINGS. ONE IS ADDRESS HOW LONG THIS -- THIS -- THIS DEVELOPMENT HAS BEEN IN THE WORKS BECAUSE AS I UNDERSTAND IT WE ARE NOW AT THE VERY END OF THIS IN TERMS OF TYPICALLY WHEN PEOPLE WOULD START PUTTING BRICKS AND MORTAR ON THE GROUND. AND NOW WE ARE AT A POINT WHERE WE ARE SEEKING A VARIANCE AND THE SECOND THING THAT I WOULD LIKE TO HEAR YOU ADDRESS IS -- IS -- FIRST OF ALL, IF THAT'S TRUE, AS I BELIEVE IT TO BE, WHY IS IT THIS IS COMING UP AT THE VERY END? THE SECOND IS THE ISSUE OF -- OF HOW -- HOW -- IF IT'S BECAUSE A MISTAKE WAS MADE OR SOMETHING LIKE THAT, HOW CAN THAT HAPPEN WHEN SOMETHING IS RIGHT UP AGAINST SHOAL CREEK AND AS COUNCILMEMBER WYNN HAS POINTED OUT, EVEN IF YOU DON'T DO ENGINEERING WORK, YOU CAN -- YOU ARE REMINDED OF CERTAIN FLOODING EVENTS ALONG SHOAL CREEK IF YOU HAVE BEEN HERE AT ANY TIME AT ALL. THE THIRD THING THAT I WOULD LIKE TO HAVE ADDRESSED IS THE ISSUE OF HOW DO WE AVOID CREATING BAD PRECEDENCE, IT MAY BE THAT THIS IS NOT SOMETHING THAT -- IT MAY BE SOMETHING THAT I END UP VOTING FOR IN TERM OF A VARIANCE, BUT HOW DO WE AVOTED GETTING OURSELVES INTO SITUATIONS AS MAYOR AND COUNCIL WHERE WHAT HAPPENS IS WE -- SOMEBODY WAITS UNTIL THE LAST MINUTE AND THEN STEPS UP AND SAYS OH, I NEED A VARIANCE AND NOT GET OURSELVES IN A TRAP OF HAVING PEOPLE PLAY GAMES WITH THE COUNCIL AND SAY, WELL, IF WE JUST WAIT UNTIL THE LAST MINUTE, AND ALL OF THIS MONEY HAS BEEN SPENT AND ALL OF THIS WORK HAS BEEN DONE, THEY WILL HAVE TO VOTE FOR IT. AFTER ALL, IT'S DOWNTOWN, IT'S RESIDENTIAL, AND, YOU KNOW, WE WILL HAVE THEM ON THAT. HOW DO WE AVOID GETTING OURSELVES TRICKED BY SOMEBODY THAT MIGHT BE SMART TRYING TO FIGURE OUT A WAY TO DO THAT TO US?

>> IF SOMEBODY DID THAT, MAYOR, I WOULDN'T CONSIDER THEM SMART.

>> I WOULDN'T EITHER, BUT SOME PEOPLE THINK THEY ARE SMARTER THAN THEY ARE.

>> WELL, I UNDERSTAND. THE SIMPLE ANSWER TO THE QUESTION, OF WHY WE ARE HERE THIS LATE IS THAT THIS IS SOMETHING THAT OUR FIRM SHOULD HAVE ADDRESSED AT THE BEGINNING WHEN WE SUBMITTED THIS PROJECT BACK AT THE BEGINNING OF THE YEAR. AS I EXPLAINED TO YOU EARLIER, WE WILL SAY AGAIN HERE IN PUBLIC, IT WAS A CLEAR MISTAKE ON OUR PART. AND --.

>>MAYOR WATSON: EVEN PEOPLE AT YOUR FIRM MAKE MISTAKES, IT'S NOT JUST THE GOVERNMENT TAKE MAKES THEM, HUH?

>> IF YOU HAD A COUPLE OF HOURS I WOULD TELL YOU WHAT HAPPENED.

>> TYPICALLY YOU ARE POINTING OUT HOW WE ARE MAKING MISTAKES, IT'S INTERESTING TO SEE MAYBE YOU ARE HAVING TO MAKE A MISTAKE HERE.

>> YES, SIR. BUT AS FAR AS SETTING PRECEDENT, BUILDING IN THE FLOODPLAIN, THIS TYPE OF VARIANCE, YOU ALL ARE GOING TO BE FACED WITH IT, I THINK, MORE AND MORE AS DOWNTOWN DEVELOPMENT, THERE'S SOME MAJOR CREEKS HERE. I THINK THE BIGGEST THING HERE IS LIFE AND SAFETY. WITH AS -- WE AS PROFESSIONALS, AS YOUR PROFESSIONAL STAFF AT THE CITY, OUR JOB TOYS MAKE SURE THAT WE PROTECT THE PUBLIC. -- IS TO MAKE SURE THAT WE PROTECT THE PUBLIC. HAVING WORKED WITH THE STATE, BY THE WAY, WE WERE LATE, THEY REALLY BEAT THEMSELVES UP TO HELP US GET HERE, DIDN'T HAVE TO, BUT THEY DID, I GREATLY APPRECIATE THAT. BUT AT THE SAME TIME WE WORKED TOGETHER TO MAKE SURE THAT WE ARE NOT CREATING SOMETHING THAT WE ARE ALL GOING TO HAVE PROBLEMS WITH IN THE PAST. I THINK AS MR. OSWALD SAYS FROM A LIFE AND SAFETY STANDPOINT THIS IS NOT A PROBLEM. I WOULDN'T BE HERE ASKING FOR IT IF IT WAS AN ISSUE. THE WATER, TO GIVE YOU -- THE DEPARTMENT OF THE WATER AT THE PROPERTY LINE IS 8 INCHES, TALKING ABOUT 1500 SQUARE FEET OF AREA. WE WOULD HAVE ASKED FOR THIS VARIANCE REQUEST ALL ALONG BECAUSE THIS IS THE RIGHT SOLUTION FOR THE PROJECT TO PUT THE DRIVEWAYS NOT ON LAMAR, NOT ON 9TH, BUT BACK ON HENDERSON STREET. IT'S A BETTER TRAFFIC SOLUTION. AGAIN, EVEN IF WE MOVE THE BUILDING BACK 15 FEET, THE DRIVEWAYS WOULD BE IN THE FLOODPLAIN. ALL WE HAVE IN THE FLOODPLAIN RIGHT NOW ARE DRIVEWAYS, RAMPS INTO THE GARAGE, WATERPROOFED, THE TOP OF THE RAMPS ARE ABOVE THE FLOODPLAIN. SO AGAIN I THINK WE HAVE A SAFE PROJECT AND I HOPE THAT I HAVE ANSWERED YOUR QUESTIONS.

>>MAYOR WATSON::OUNCIL, IS THERE ANY OTHER QUESTIONS OF MR. BURY? I WILL ENTERTAIN A NOTION TO CLOSE THE PUBLIC HEARING. MOTION MADE BY THE MAYOR PRO TEM, IS THERE A SECOND? SECONDED BY COUNCILMEMBER SLUSHER. THERE IS A DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES, THE PUBLIC HEARING IS CLOSED ON ITEM NO. 99. I WILL ENTERTAIN A MOTION WITH REGARD TO ITEM NO. 104.

>>GOODMAN: I WILL MOVE APPROVAL.

>>MAYOR WATSON: MOTION TO APPROVE BY THE MAYOR PRORO TEM. IS THERE A SECOND? IS THERE A SECOND? SECONDED BY COUNCILMEMBER SLUSHER. THERE IS A DISCUSSION?

>>GOODMAN: YES, MAYOR.

>>MAYOR WATSON: MAYOR PRO TEM?

>>GOODMAN: I AM GLAD THAT WE PUT A LOT OF TIME AND EFFORT INTO RESEARCHING THIS ISSUE. BECAUSE IT IS LATE IN THE GAME TO FIND OUT SOMETHING LIKE THIS IS NEEDED. I COULD THINK OF SITUATIONS WHERE I WOULDN'T BE READY TO VOTE FOR IT BECAUSE WE HAVE PUT A LOT OF TIME INTO FIGURING OUT WHETHER LIFE AND SAFETY IS THREATENED AT ALL AND BECAUSE IT IS OVERALL STILL A PROJECT THAT BENEFITS US AS A CITY AND OUR GOALS FOR DOWNTOWN. I AM SUPPORTIVE. WHAT I DO HOPE IS THAT NOBODY ELSE IN TOWN WHO IS DOING ENGINEERING FOR ANY OTHER SIGNIFICANT PROJECTS LET'S SOMETHING GO UNTIL THIS TIME IN THE PROCESS BECAUSE IT WOULD BE VERY DIFFICULT ON VIRTUALLY ANY OTHER PROJECT I CAN THINK OF TO SUPPORT IT SO QUICKLY. I KNOW TIME IS KIND OF A CRITICAL FACTOR RIGHT NOW.

>>MAYOR WATSON: I AM GOING TO SUPPORT IT FOR THE REASONS THAT YOU JUST INDICATED. AND ALSO BECAUSE IN TALKING TO ONE OF THE PRINCIPALS IN THE MATTER EARLIER IN THE WEEK, WHO I TRUST, HE MADE IT VERY CLEAR THAT THIS WAS NOT SOMETHING TO WAIT UNTIL THE LAST MINUTE IN HOPES THAT WE WOULD -- THAT THE COUNCIL WOULD BE PUT IN A BOX. AND I TRUST HIM ON THAT ISSUE. BUT I THINK IT IS IMPORTANT THAT EVEN THOUGH THIS PASSES TONIGHT, WE -- WE LET PEOPLE KNOW THAT -- THAT WAITING UNTIL THE LAST MINUTE LIKE THIS CREATES SOME CYNICISM ON THE PARTS OF SOME OF US WHO OTHERWISE WOULDN'T CONSIDER OURSELVES CYNICS ABOUT SOMETHING LIKE THIHI IS THERE ANY OTHER DISCUSSION?

>>WYNN: MR. MAYOR? I WOULD ALSO LIKE TO STATE I AM GOING TO SUPPORT THIS MEASURE, BUT I WANT TO SEND A STRONG SIGNAL NOT ONLY TO MR. BUREAU AND HIS IF I WERE, BUT REALLY TO THE -- MR. BURY AND HIS FIRM, BUT REALLY TO THE ENTIRE ARCHITECTURAL AND JRG INDUSTRY HERE IN AUSTIN THAT SHOAL CREEK -- THERE'S GOING TO BE SIGNIFICANT DEVELOPMENT PRESSURES ON LOWER SHOAL CREEK. IN FACT THERE'S SEVERAL PROJECTS I THINK THAT ARE IN SOME PRELIMINARY FORM OR ANOTHER WORKING THEIR WAY TOWARDS THIS COUNCIL. AND I WANT THE A AND E INDUSTRY TO RECOGNIZE THAT SHOAL CREEK IS A SPECTACULAR ASSET FOR DOWNTOWN, PARTICULARLY LOWER SHOAL CREEK. AND LETS GIVE IT A LOT OF THOUGHT, A LOT OF INGENUITY, A LOT OF CREATIVITY, LET'S MAKE THAT CREEK BE WHAT IT SHOULD AND COULD BE AND NOT TAKE A -- A 1980'S ERA APPROACH AT, YOU KNOW, THROWING PARKING GARAGES, THROWING STORM SEWER OUTLETS AT THE CREEK, BUT INSTEAD LET'S TURN OUR FOCUS ON THE CREEK AND HELP MAKE LOWER SHOAL CREEK A MUCH BETTER PROJECT FOR ALL OF US.

>>MAYOR WATSON: ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTI CARRIES ON ITEM NO. 104. NEXT WILL BE ITEM 100. WHICH IS A PUBLIC HEARING AND TO APPROVE AN ORDINANCE -- WE WILL GO BACK TO 105 FOR THE APPROVAL OF THE ORDINANCE, AMENDING THE AUSTIN TOMORROW COMPREHENSIVE PLAN BY ADOPTING THE OLD WEST AUSTIN NEIGHBORHOOD PLAN FOR THE AREA BOUNDED BY LAMAR BOULEVARD, ENFIELD ROAD, TOWN LAKE AND THE MOPAC EXPRESSWAY. AN ESTIMATE OF THE FISCAL IMPACT TO IMPLEMENT ALL OF THE RECOMMENDATIONS OF THE PLAN IS $2,589,810. THIS PLAN IS ADVISORY AND DOES NOT LEGALLY OBLIGATE THE COUNCIL TO IMPLEMENT ANY PARTICULAR RECOMMENDATION. THE WAY WE WILL PROCEED COUNCIL, A BRIEF INTRODUCTION BY THE STAFF, A BRIEF PRESENTATION BY ONE MEMBER OF THE NEIGHBORHOOD PLANNING TEAM AND THEN WHAT I WOULD RECOMMEND IS THAT WE MOVE TO SUSPEND THE RULES AND IT'S MY UNDERSTANDING THAT THERE'S BEEN SOME DISCUSSION ABOUT THIS BEFORE, WHERE WHAT WE WILL DO IS ALLOW 10 MINUTES PER SIDE, 10 MINUTES FOR THOSE IN FAVOR AND 10 MINUTES AGAINST, SO THAT -- TT IS CONSISTENT, I BELIEVE, WITH THE WAY WE HAVE DONE IT AS WE HAVE TAKEN UP OTHER NEIGHBORHOOD PLANS IN THE PAST. SO LET ME ASK IF -- IF I -- IF THERE'S A MOTION TO ADOPT THAT PROCEDURE FOR THE HANDLING OF -- OF ITEMS 100 AND 101? MOTION BY COUNCILMEMBER SLUSHER, THERE IS A SECOND? SECONDED BY COUNCILMEMBER WYNN. ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES WITH THE MAYOR PRO TEM TEMPORARILY OFF THE DIAS. WE WILL HAVE A BRIEF INTRODUCTION BY THE STAFF, A BRIEF PRESENTATION OF NO MORE THAN 10 MINUTES BY ONE MEMBER OF THE NEIGHBORHOOD PLANNING TEAM AND THEN 10 MINUTES ON EITHER SIDE OF THE ISSUE.

>> MAYOR, MAYOR PRO TEM, AND COUNCILMEMBERS, I'M STEVE BARNEY WITH THE PLANNING ENVIRONMENTAL AROUND CONSERVATION SERVICES DEPARTMENT. AND IT HAS BEEN MY PLEASURE TO WORK WITH OLD WEST AUSTIN NEIGHBORHOOD AS THEY HAVE DEVELOPED THEIR NEIGHBORHOOD PLAN OVER THE PAST 13 MONTHS. A BRIEF BIT OF BACKGROUND. NEIGHBORHOOD PLANNING WAS ONE OF THE RECOMMENDATIONS OF THE CITIZENS PLANNING AND IMPLEMENTATION COMMITTEE. CITY COUNCILL IN RESPONSE IN 1997 INITIATED THE NEIGHBORHOOD PLANNING PROGRAM. LAST YEAR, AFTER THE FIRST THREE NEIGHBORHOOD PLANS WERE COMPLETE, COUNCIL DIRECTED STAFF TO WORK WITH NEIGHBORHOODS TO DEVELOP NEIGHBORHOOD PLANS FOR THE ENTIRE AREA IN THE CITY'S URBAN CORE. THUS FAR DAWSON, EAST CESAR CHAVEZ, CHESTNUT AND HYDE PARK NEIGHBORHOODS HAVE COMPLETED NEIGHBORHOOD PLANS SKH HAVE BEEN ADOPTED BY CITY COUNCILL AS AMENDMENTS TO THE AUSTIN TOMORROW COMPREHENSIVE PLAN. STAFF MEMBERS AND NEIGHBORHOOD REPRESENTATIVES ARE WORKING TO GET THE ACTION ITEMS IN THESE NEIGHBORHOOD PLANS IMPLEMENTED. IT IS ANTICIPATED THAT THE REZONINGS TO IMPLEMENT THE ADOPTED LAND USE PLANS IN THE CHESTNUT AND EAST CESAR CHAVEZ PLANS WILL BE BROUGHT BEFORE CITY COUNCILL FOR CONSIDERATION BY THE END OF SUMMER AND NEIGHBORHOOD PLANS ARE UNDERWAY IN FIVE OTHER NEIGHBORHOODS AND THREE OTHER NEIGHBORHOODS WILL BEGIN WORKING ON PLANS BY THE END OF THE FISCAL YEAR. TONIGHT, A REPRESENTATIVE FROM THE OLD WEST AUSTIN NEIGHBORHOOD PLANNING TEAM AND SUBSEQUENTLY IN THE NEXT ITEM THE NORTH AUSTIN CIVIC ASSOCIATION NEIGHBORHOOD PLANNING TEAM WILL VERY BRIEFLY OUTLINE THE PLANS, INCLUDING THE LAND USE AND ZONING RECOMMENDATIONS. EACH OF THE NEIGHBORHOODS HAVE FOLLOWED THE NEIGHBORHOOD PLANNING PROCESS, THEY HAVE PROVIDED A LOT OF OPPORTUNITIES FOR PUBLIC INPUT, INCLUDING A SURVEY DELIVERED TO RESIDENTS BUSINESSES AND PROPERTY OWNERS, AN OPEN HOUSE TO GET FEEDBACK FROM THE COMMUNITY AND BALLOTTING THE NEIGHBORHOOD BY SENDING A DRAFT COPY OF THE PLAN WITH A BALLOT FORM TO RESIDENTS, BUSINESSES AND PROPERTY OWNERS. IN BOTH OF THE NEIGHBORHOOD THE PLANNING TEAM RECEIVED COMMENTS FROM HUNDREDS OF PEOPLE. EACH PLAN WAS APPROVED BY XLIGS PLANNING COMMISSION AT THE JUNE 20TH 2000 MEETING AND MINUTES FROM THIS MEETING SHOULD BE AT YOUR SEATS. DAVE SULLIVAN FROM THE OLD WEST AUSTIN NEIGHBORHOOD PLANNING TEAM WILL NOW PRESENT THE RECOMMENDATIONS AND DRAFT OF THE OLD WEST AUSTIN NEIGHBORHOOD PLAN. DAVID?

>> MR. SULLIVAN?

>> THANK YOU, MAYOR, CITY MANAGER, CITY COUNCILLMEMBERS, MY NAME IS DAVE SULLIVAN, I LIVE RIGHT ABOUT HERE, MY HOUSE IS RIGHT ON THIS MAP. JUST A LITTLE BIT ABOUT OUR NEIGHBORHOOD IN GENERAL. HAVE YOU EVER BEEN IN A SITUATION WHERE YOU WERE HOME WITH A SICK KID, YOUR VCR BROKE, YOU PICKED IT UP, PUT IT UNDER YOUR ARM, WALKED DOWN THE STREET WITH YOUR DAUGHTER, DROPPED IT OFF AT THE APPLIANCE STORE, NEVER HAD TO CROSS A MAJOR STREET? I DID THAT TODAY. OUR NEIGHBORHOOD IS VERY RICH IN ALL TYPES OF LAND USE, ALL LARGELY RESIDENTIAL, BUT WITH COMMERCIAL RIGHT SMACK DAB IN THE MIDDLE AND ALL ALONG THE BOUNDARIES RIGHT HERE. THE WAY WE WENT ABOUT THE PLAN, STEVE MENTIONED BRIEFLY THERE WERE SURVEYS, ABOUT 11% RESPONSE ON OUR SURVEYS, ABOUT TWO AND A HALF TIMES THE TURNOUT RATE IN MUNICIPAL ELECTIONS. [LAUGHTER]. APPROVAL RATINGS ABOVE 90%, WHICH WAS A LITTLE BIT HIGHER THAN YOUR HONORS. SO IT SEEMS LIKE THERE'S OVERWHELMING SUPPORT, IN FACT I WILL BE SURPRISED IF THERE'S ANYBODY HERE IN OPPOSITION TO THE PLAN. THE PLAN WAS HEADED UP BY MARK STEIN WHO COULDN'T BE HERE TONIGHT. I AM DELIVERING THIS ADDRESS IN HIS ABSENCE, WE ALSO HAVE SOME OF THE SUBCOMMITTEE CHAIRS WHO WORKED ON THE PLAN HERE, ALSO. CITY STAFF WAS VERY SUPPORTIVE. OVERALL WE ADDRESSED FOUR DIFFERENT ISSUES, WE ADDRESS THE THE LAND USE ISSUE SHOWN ON THIS MAP HERE, WE ADDRESSED PARKS, WE ADDRESSED THE HISTORIC NATURE OF THE NEIGHBORHOOD AND WE ADDRESSED TRANSPORTATION. I WOULD SAY OVERALL THERE WERE TWO MAJOR THEMES WE LOOKED AT THE ONE WAS SMART HOUSING, THE OTHER WAS MOBILITY AND ACCESSIBILITY FOR PEDESTRIANS. THE TWO ARE VERY CLOSELY RELATED. AS YOU KNOW, SMART HOUSING MEANS SAFE, MIXED INCOME, ACCESSIBLE, REASONABLY PRICED AND TRANSIT ORIENTED. I THINK OUR NEIGHBORHOOD DISPLAYS ALL OF THOSE ASPECTS. TO TRY TO MAKE IT SMARTER WHAT WE ARE TALKING ABOUT IN THE LAND USE IS GOING TO THIS UNDER UTILIZED AREA HERE CLOSE TO SOUTH OF FIFTH STREET, LARGELY ZONED FOR LIGHT INDUSTRIAL AND CS, NOT PROPOSING ANY REZONINGS OF THE BASE DISTRICT, BUT INSTEAD APPLYING THE MIXED USE APPENDAGE TO ALL OF THE BASE DISTRICTS SO THAT IF SOMEBODY DOES WANT TO COME IN HERE AND PUT BUSINESSES ON THE FIRST FLOOR AND RESIDENTS UPSTAIRS OR LIGHT MANUFACTURING ON THE FIRST FLOOR AND OFFICES UPSTAIRS, THAT THAT WILL BE ALLOWED BY OUR PLAN. IF SOMEBODY WANTS TO COME IN AND DO ANY FORM OF ZONING FROM MF 1 TO MF 6 TO PROVIDE AFFORDABLE HOUSING IN THIS AREA WE ARE SUPPORTIVE OF THAT ALSO, THAT'S ALSO THE CASE WITH THE PROPERTIES ALONG LAMAR BOULEVARD AND WITH THE PROPERTIES IN THE WHAT WE CAMPECHE THE DOWNTOWN CLARKSVILLE AREA. ANOTHER ASPECT TO AFFORDABLE HOUSING THAT WE ARE PROMOTING IS ALLOWING GARAGE APARTMENTS THROUGHOUT THIS AREA. MATTER OF THE AFFORDABILITY ASPECT COMES IN THAT TRANSPORTATION COSTS ARE EXTREMELY LOW FOR PEOPLE IN THIS AREA. AS I MENTIONED TODAY DID I A WALKING TRIP TO AN APPLIANCE STORE. THERE ARE MANY RESIDENTS HERE WHO ARE ONE CAR FAMILIES, I EVEN KNOW OF PEOPLE WHO HAVE NO CAR THAT LIVE IN THIS NEIGHBORHOOD AND STILL WORK DOWNTOWN, CONTRIBUTE TO THE CITY, EVEN THOUGH THEY DON'T HAVE TO DRIVE. AGAIN THAT GETS A LOT BOTH AT THE LAND USE AND TRANSPORTATION ASPECT OF OUR PLAN. THE TRANSPORTATION ASPECT FOCUSES ON BETTER SIDEWALKS, BETTER STREET LIGHTS SO IT'S A MORE TED STRENGTH -- PEDESTRIAN ORIENTED ATMOSPHERE, SO AS OPPOSED TO OUR COME INCIDENT TRAFFIC CALMING PLAN WHICH FOCUSES MAINLY ON SPEED HUMPS, OUR TRANSPORTATION PLAN WITHIN THE NEIGHBORHOOD PLAN, TALKS ABOUT HOW TO GET PEOPLE SAFELY OUT OF THE NEIGHBORHOOD AS WELL. WE BELIEVE THAT WE NEED TO SAFELY CROSS LAMAR BOULEVARD TO GET TO RETAIL ON THE E ESIDE OF LAMAR BOULEVARD, TO SAFELY GET DOWN TO DEEP EDDY POOL. IN FACT TALKING ABOUT THE PARK, PARKS SECTION OF OUR PLAN, PART OF WHAT WE TALK IS ABOUT HOLDING DOWN THE CITY'S COSTS WITH REGARD TO THE PARKS WITHIN THE NEIGHBORHOOD BY INCREASING THE EASE IN WHICH RESIDENTS CAN REACH ZILKER PARK OR DEEP EDDY POOL OR WEST ENFIELD PARK. SO AGAIN OUR PARKS SECTION IS RELATED TO OUR TRANSPORTATION SECTION. WITH REGARD TO THE HISTORIC PRESERVATION, WE ARE VERY CONCERNED THAT THERE'S BEEN INTRUSION OF COMMERCIAL INTERESTS INTO OUR NEIGHBORHOOD AS I HAVE ALREADY MENTIONED WE ALREADY HAVE COMMERCIAL INTERESTS, WE ARE VERY SATISFIED WITH THEM. SO WE WANT TO SEE THE EXISTING HOUSING STOCK MAINTAINED. SOME OF THE OLD HOUSES RETAINED, KEEP THEIR CHARACTER RETAINED, SO IN SOME CASES WE ARE -- ONE WAY WE ARE DOING THAT IS BY SUGGESTING THAT IF SOMEONE WANTS TO REZONE THEIR PROPERTY FROM MF, WE HAVE SEVERAL HUNDRED LOTS ZONED MF, USED AS SF, THAT THAT REZONING BE ALLOWED TO HAPPEN GRATIS SO THAT THE SINGLE FAMILY HOUSING STOCK CAN BE MAINTAINED. WE ARE TALKING ABOUT CREATING A HISTORIC -- HISTORIC DISTRICT WHERE RESIDENTS WHO CAN MAKE A CASE FOR THE HISTORIC NATURE OF THEIR HOME, THAT THE CITY -- THAT THE NEIGHBORHOOD PLAN WILL SUPPORT THAT. I THINK THAT HITS THE MAIN POINTS OF THE PLAN AND LET ME JUST SUMMARIZE IT AGAIN BY SAYING WE WANT TO PRESERVE THIS INTERIOR HOUSING STOCK, WE TAN TO BRING OUR MIXED USE TO THE AREA SURROUNDING OUR NEIGHBORHOOD, WE WANT TO BE INCLUSIVE, INCLUDING ALL OF THE RESIDENTS IN THE BUSINESS OWNERS IN OUR PLAN, AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS OR REFER QUESTIONS TO THE CHAIR OF OUR NEIGHBORHOOD -- THE CHAIR OF OUR PARK SUBCOMMITTEE SAM ARCHER WHO IS HERE, OUR HISTORIC PRESERVATION SUBCOMMITTEE TERRY O'CONNELL IS HERE, OUR OUTREACH COMMITTEE CHAIR, AND PAUL SEALS THE CHAIRMAN OF OUR LAND USE SUBCOMMITTEE.

>>MAYOR WATSON: GREAT. ANYBODY HAVE ANY QUESTIONS OF MR. SULLIVAN AT THIS TIME? ALL RIGHT. FOLKS, LET ME WALK THROUGH -- LET ME ASK IF ANYBODY WISHES TO SPEAK IN FAVOR, OTHERWISE WHAT I WILL DO IS JUST READ THROUGH THE CARDS FOR THOSE THAT ARE IN FAVOR FIRST. DOES ANYBODY WISH TO SPEAK IN FAVOR? ALL RIGHT. JIM COWSER SIGNED UP FOR. PAUL SEALS HAS SIGNED UP NOT WISHING TO SPEAK BUT FOR. CLEMMY CUSTOM MINIMUMS SIGNED UP FOR. TERRY CO-CONNELL FOR. AND WILL BOZEMAN INDICATED A DESIRE TO SPEAK. MR. BOZEMAN?

>> [INAUDIBLE].

>>MAYOR WATSON: ALL RIGHT. HE SIGNED UP FOR, ALSO. IS THERE ANYONE WISHING TO SPEAK IN OPPOSITION? ANYONE WISHING TO SPEAK IN OPPOSITION? I WILL ENTERTAIN A MOTION TO CLOSE THE PUBLIC HEARING. MOTION MADE BY COUNCILMEMBER ALVAREZ, THERE IS A SECOND? SECONDED BY COUNCILMEMBER GRIFFITH. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES. WE HAVE CLOSED THE PUBLIC HEARING. COUNCIL, THAT WILL TAKE US TO ITEM NO. 105. I WILL ENTERTAIN A MOTION WITH REGARD TO ITEM NO. 105.

>> [INAUDIBLE].

>>MAYOR WATSON: THAT WOULD BE APPROVING THE PLAN. THE MANAGES IS TO APPROVE THE PLAN BY COUNCILMEMBER ALVAREZ, IS THERE A SECOND? SECONDED BY COUNCILMEMBER THOMAS, IS THERE DISCUSSION? COUNCILMEMBER ALVAREZ?

>>ALVAREZ: I JUST WANTED TO -- JUST WANTED TO APPLAUD OBVIOUSLY THE NEIGHBORHOOD FOR ALL OF THE HARD WORK THEY PUT INTO IT. IT'S INTERESTING TO SEE WHAT -- WHAT THE NEIGHBORS ENDED UP PUTTING IN THIS PLAN AND HOW IT COMPARES TO THE EAST CESAR CHAVEZ PLAN WHICH WE DID. OBVIOUSLY NOT TOO LONG AGO, ABOUT A YEAR AGO, EVEN THOUGH OBVIOUSLY THEY ARE ON OPPOSITE SIDES OF THE FREEWAY THERE, THERE'S A LOT OF SIMILARITIES, A LOT OF THE SAME PROBLEMS, I THINK THAT'S WHAT YOU WILL FIND IN MANY OTHER NEIGHBORHOODS, I LIKE WHAT YOU DID IN TERMS OF OF THE HOUSING AND MIXED USE ELEMENTS AS WELL AS PEDESTRIAN IMPROVEMENTS, TRAFFIC CALMING AND I REALLY LIKE THE PEDESTRIAN ISLAND CROSSINGS, WE COULD DO MORE OF IN MANY STREETS AROUND THE CITY HERE. ALSO THAT YOU PUT SOMETHING ABOUT -- ABOUT I GUESS TAXES AND TAX CREDITS AND -- BECAUSE THAT'S OBVIOUSLY AN ISSUE FOR EVERYONE, NOT JUST FOLKS ON THE EAST SIDE, THANK YOU FOR YOUR HARD WORK, APPRECIATE IT.

>>SLUSHER: MAYOR, I HAVE A QUESTION. IS MS. GLASGO HERE?

>>SLUSHER: I THINK COUNCILMEMBER ALVAREZ IS RIGHT ABOUT THERE ARE SOME SIMILARITIES BETWEEN THE TWO NEIGHBORHOOD OF CESAR CHAVEZ AND THIS ONE. ONE OF THE SIMILARITIES IS THE SAME RAILROAD TRACK RUNS THROUGH THEM. IS THE RECOMMENDATION TO GO FROM LIGHT INDUSTRIAL FOR MAJORSED -- MIXED USE DOWN NEAR THE TRACKS, I WARRANTS TO MAKE SURE THAT I AM RIGHT. MY RECOLLECTION IS THAT'S CONSISTENT WITH THE RECOMMENDATIONS IN THE CESAR CHAVEZ --.

>>GLASCO: I DON'T RECALL THAT THERE WAS --.

>>SLUSHER: [INAUDIBLE].

>>GLASCO: SHE MIGHT BE ABLE TO SPEAK TO THAT ONE.

>> MY NAME IS CAROL BARON, I WORK FOR THE PLANNING DEPARTMENT AND THE RECOMMENDATIONS ALONG THE TWO CORRIDORS ARE CONSISTENT WITH ONE ANOTHER IN TERMS OF ENCOURAGE KNOWLEDGE MIXED USE.

>>SLUSHER: OKAY. EITHER YOU OR MS. GLASGO, TALK A LITTLE BIT ABOUT THE DIFFERENCE BETWEEN LIGHT INDUSTRIAL AND MIXED USE.

>>> THE OPPORTUNITY THAT THE NEIGHBORHOOD HAS INDICATED THAT IT WOULD LIKE TO HAVE IS THAT THEY WOULD WANT AN OPPORTUNITY FOR MORE THAN SINGLE USE ON THIS SITE, MIXED USE WOULD PERMIT COMMERCIAL OFFICE AND RESIDENTIAL ON -- WITHIN A SINGLE BUILDING OR AS PART OF A LARGER DEVELOPMENT. TYPICALLY, THE INDUSTRIAL CATEGORY WAS DEVELOPED FOR LAND USES THAT ARE REALLY INCONSISTENT WITH RESIDENTIAL ACTIVITIES. TODAY THERE IS A LOT OF COMMERCIAL ACTIVITY RELATED TO THE HIGH TECH COMMUNITY AND OTHER TYPES OF LIGHT INDUSTRIAL ACTIVITY THAT COULD BE VERY COMPATIBLE WITH THE LIVING ENVIRONMENT.

>>SLUSHER: SO WOULD THAT BE ALLOWED THEN IF IT'S CALLED -- IF IT FELL UNDER THE LIGHT INDUSTRIAL CATEGORY, WOULD THAT BE ALLOWED IN THIS MIXED USE?

>> YES, SIR.

>>SLUSHER: OKAY. OKAY. WELL, I WANTED TO MAKE SURE THOSE WERE CONSISTENT,) DO YOU WANT TO COMMENT ON THAT AT ALL?

>> YES, I WOULD COUNCILMEMBER. BECAUSE I DID GLOSS OVER THE FACT THAT WE OWE WE ARE CALLING FOR A CONDITIONAL OVERLAY FOR THESE AREAS, PLEASE FORGIVE ME FOR THAT. THERE ARE A NUMBER OF USES THAT WE WISH TO PROPER HIB AND SOME PERMITTED USE THAT'S WE MENTIONED CONDITIONAL USES, I DON'T BELIEVE IT'S AS RESTRICTIVE, SAY, AS THE EAST AUSTIN OVERLAY, BUT FOR INSTANCE WITHIN LIGHT INDUSTRIAL, WE ARE STILL ALLOWING, WE STILL WANT TO PERMIT SOME INTRINSICALLY INDUSTRIAL USES SUCH AS CUSTOM MANUFACTURING, THINK OF THE PLAQUES PLUS CASE. I HAVE NO OBJECTION TO THAT. YOU NEED CS OR LI, TRADITIONALLY NEEDED CS OR LI TO DO THAT. THAT CAN MATCH RIGHT UP TO A NEIGHBORHOOD AS WE SEE IN NORTH AUSTIN. ALSO WOULD ALLOW LIGHT MANUFACTURING WHICH IS ONLY ALLOWED IN LI, SO IT'S AN INTRINSIC LI USE, BUT IT WOULD BE VERY LOW SCALE, LIKE PUTTING TOGETHER A BOARD FOR LIKE A PC MANUFACTURER THAT'S ON A LOW SCALE. WINTER NOT TALKING ABOUT SMOKE STACK TYPE OF INDUSTRIES, SENTIALLY NEIGHBORHOOD MANUFACTURING.

>> THANK YOU, MR. SULLIVAN, APPRECIATE IT.

>>GOODMAN: I WOULD LIKE TO THANK THE NEIGHBORHOOD, TOO, AS I DO ALL NEIGHBORHOOD, YOU GO THROUGH THIS PROCESS AND YOU HAVE COMMITTED FROM THE WORD GO TO DO SOMETHING THAT'S GOING TO SET A FINE FUTURE FOR THEIR AREA. I WANT TO THANK STAFF, TOO, BECAUSE I KNOW THEY HAVE WORKED HARD. WHEN THIS NEIGHBORHOOD FIRST CAME TOGETHER TO TALK ABOUT PLANNING THIS DEIN THEIR VERY FIRST MEETING MENTION THAT THERE WERE SIMILARITIES TO ANOTHER NEIGHBORHOOD ON THE EAST SIDE. THAT I THOUGHT WAS AN AMAZING UNDERSTANDING. SO I THINK THE AWARENESS AND COMMITMENT WAS STELLAR, I THINK THE PLAN IS EXCELLENT. AND I'M HOPING THAT DURING BUDGET PROCESS WE CAN FIND A WAY FOR EVEN MORE NEIGHBORHOODS TO PARTICIPATE IN SOMETHING THAT BENEFITS THEM AND BENEFITS US. NATURE FURTHER DISCUSSION? I WILL JUST SAY THE ONLY OBJECTION THAT I HAD, I DIDN'T HAVE UNTIL TONIGHT WHEN I HEARD MR. SULLIVAN MADE HIS SICK KID WALK TO THE VCR REPAIR PLACE. [LAUGHTER]. JUST SO HE COULD WATCH MOVIES TONIGHT, YOU KNOW. [LAUGHTER].a BUT I'M GOING TO STILL VOTE FOR IT, MR. SULLIVAN. [LAUGHTER]. THERE BEING NO FURTHER DISCUSSION, ALL THOSE IN FAVOR SAY AYE, ", OPPOSED NO. MOTION CARRIES, CONGRATULATIONS, EVERYBODY, GOOD JOB. ITEM NO. 101. CONDUCT A PUBLIC HEARING APPROVE AN ORDINANCE AMENDING THE AUSTIN TOMORROW COMPREHENSIVE PLAN BY ADOPTING THE NORTH AUSTIN CIVIC ASSOCIATION NEIGHBORHOOD PLAN, FOR THE AREA BOUNDED BY KRAMER LANE, LAMAR BOULEVARD, HIGHWAY 183 AND PET TRICK BOULEVARD, AN ESTIMATE OF THE FISCAL IMPACT TO IMPLEMENT ALL OF THE RECOMMENDATIONS IN THE PLAN IS $4,153,745. THE PLAN IS ADVISORIES AND DOES NOT LEGALLY OBLIGATE THE COUNCIL TO IMPLEMENT ANY PARTICULAR RECOMMENDATIONS, AGAIN A BRIEF INTRODUCTION BY STAFF, AT 10 MINUTE INTRODUCTION, 10 MINUTES PER SIDE. WELCOME.

>> GOOD EVENING. I AM GINA, LEAD STAFF PLANNER ASSIGNED TO THE NORTH AUSTIN CIVIC ASSOCIATION NEIGHBORHOOD PLANNING AREA. I'M PLEASED TO ANNOUNCE THE COMPLETION OF THE NORTH AUSTIN CIVIC ASSOCIATION NEIGHBORHOOD PLAN. AS STEVE BARNEY TOLD YOU, THE PLANNING COMMISSION HELD A PUBLIC HEARING AND RECOMMENDED THE NEIGHBORHOOD PLAN FOR COUNCIL APPROVAL AND ADOPTION ON JUNE 20TH. WE HAVE PROVIDED YOU WITH A COPY OF THE NEIGHBORHOOD PLAN, ALONG WITH A COLORED PROPOSED FUTURE LAND USE MAP AND ALSO A COPY OF THE NEIGHBORHOOD'S PRESENTATION HIGHLIGHTING THEIR TOP 10 PRIORITIES. WE DO HAVE A NUMBER OF NEIGHBORHOOD SUPPORTERS HERE TONIGHT. HOWEVER, IN THE INTEREST OF TIME, ONLY ONE MEMBER OF THE NEIGHBORHOOD PLANNING TEAM WILL PRESENT THE NEIGHBORHOOD PLAN. I WOULD LIKE TO NOW INTRODUCE MR. BRYAN ALMANY.

>> WELCOME, SIR.

>> GOOD EVENING MAYOR AND COUNCILMEMBERS. LIKE GINA SAID, I'M BRYAN ALMAN, CO-CHAIR OF THE NEIGHBORHOOD PLANNING TEAM. TONIGHT I WOULD LIKE BRIEFLY TO GO OVER SOME OF THE THINGS RELATED TO OUR PLAN. FIRST OFF, I WANT TO GIVE YOU AN OVERVIEW ABOUT THE NEIGHBORHOOD. TODAY WE ARE THE LARGEST NEIGHBORHOOD TO BY SIZE AND POPULATION TO UNDERGO A DEVELOPMENT OF A NEIGHBORHOOD PLAN. WE COVER APPROXIMATELY FOUR SQUARE MILES IN NORTH AUSTIN. THE MAIN COLLECTOR STREETS THAT FORM OUR BOUNDARIES IS LAMAR BOULEVARD, KRAMER LANE, METRIC BOULEVARD, AND HIGHWAY 183. NORTH AUSTIN CIVIC ASSOCIATION IS THE ONLY NEIGHBORHOOD ASSOCIATION IN THIS AREA. THE MAN TOOK ABOUT -- APPROXIMATELY 18 MONTHS TO PUT TOGETHER, AS MR. BARNEY MENTIONED WE CONDUCTED MAIL AND HAND DELIVERY SURVEYS, A PUBLIC OPEN HOUSE, OUR APPROVAL RATE ON THE DRAFT PLAN IS 95%. AND OUR RETURN RATE ON BALLOTS WAS 10%. AT THIS TIME, I WOULD LIKE TO GO IN AND PRESENT TO YOU THE TOP 10 PRIORITIES THAT THE NEIGHBORHOOD IS DETERMINED -- HAS DETERMINED THAT WE WOULD LIKE TO BE ACCOMPLISHED WITH THIS PLAN. NUMBER ONE IS CODE ENFORCEMENT. WE WOULD VERY MUCH LIKE TO HAVE SUFFICIENT STATE OR CITY INSPECTORS FOR ADEQUATE ENFORCEMENT. NACA WILL ASSIST BY IDENTIFYING PROBLEMS. THE SECOND PRIORITY IS MONTHLY BULKY TRASH COLLECTION. OUR AREA IS MADE UP OF -- OF 73% OF THE HOUSING UNITS ARE RENTAL PROPERTY. SO WE DO HAVE A HIGH TURNOVER OF RESIDENTS, THIS DOES CREATE A PROBLEM WITH BULKY TRASH ITEMS. CURRENTLY WE HAVE TWICE A YEAR PICK UP AND WE ARE SUGGESTING THAT A MONTHLY PICK UP WOULD DEFINITELY ENHANCE THE NEIGHBORHOOD. NUMBER 3, WE WOULD LIKE TO PURCHASE ADDITIONAL LAND FOR PARKS. THERE IS A SEVEN ACRE PLOT ADJACENT TO OUR QUAIL CREEK NAKED PARK THAT IS AVAILABLE, ALSO WE ARE SUGGESTING THAT CREEK AREAS BE PURCHASED TO PROVIDE WALKING PATHS FOR WALKERS TO AVOID THE BUSINESS STREETS AND TO ENJOY THE NATURAL BEAUTY OF THE NEIGHBORHOOD 4, WE WOULD LIKE TO IMPROVE THE AMENITIES AT THE QUAIL CREEK NEIGHBORHOOD PARK. WE HAVE A VERY HIGH UTILIZATION AT THIS PARK BY THE NEIGHBORS. WE HAVE AN AIR THAT COULD BE CONVERTED INTO A SOCCER FIELD, SHOWN ON THE PHOTOGRAPH IN FRONT OF YOU. ALSO WE WOULD LIKE ADDITIONAL FEATURES LIKE EXPANDED WALKING TRAILS, AND PLAYGROUND EQUIPMENT. THE PLAYGROUND EQUIPMENT THAT'S IN THAT HANDOUT IN FRONT OF YOU IS WHAT WE WOULD LIKE. WE DO NOT HAVE THAT AT THIS TIME. NUMBER 5, WE WOULD LIKE TO CONSTRUCT ADDITIONAL PARKING AT LITTLE WALNUT CREEK LIBRARY THAT IS IN OUR NEIGHBORHOOD. WE NEED ADDITIONAL 30 PARKING SPACES ADDED TO THE EXISTING 29 SPACES. AS THE PHOTOGRAPH INDICATES, THERE IS LAND RIGHT ADJACENT TO THE PRESENT PARKING LOT FOR THIS EXPANSION. THIS LIBRARY SERVES OVER 50,000 PEOPLE IN NORTH AUSTIN. AND IN MARCH OF THIS YEAR IT HAD OVER 14,000 VISITORS. PRIORITY NUMBER 6, WE WOULD LIKE TO EXPAND THE MEETING AND LEARNING FACILITIES IN LITTLE WALNUT CREEK LIBRARY. THIS PARTICULAR LIBRARY HAS A -- HAS THE 6TH HIGHEST CIRCULATION AMONG THE 19 NEIGHBORHOOD LIBRARIES IN THE CITY. IT RECENTLY IMPLEMENTED THE NEW IMMIGRANTS PROJECT CENTER. AND ALSO HAS A COMPUTER LEARNING CENTER. BUT WE FEEL THAT THERE IS A NEED TO EVEN EXPAND ON THESE FACILITIES. NUMBER 7, WE WOULD LIKE TO MAKE LAMAR BOULEVARD A GREAT STREET. THE PHOTOGRAPHS IN FRONT OF YOU INDICATE WHAT IT LOOKS LIKE TODAY. WE FEEL THAT IT COULD BE ENHANCED CONSIDERABLY. THIS COULD BE DONE BY ADDING SIDEWALK, STORM SEWERS, MEDIANS, BURYING THE POWER LINES, ADDITIONAL LANDSCAPING, AND OPEN SPACES. THIS SECTION OF LAMAR ALONG OUR BOUNDARY OF OUR NEIGHBORHOOD IS MAINTAINED BY THE TEXAS DEPARTMENT OF TRANSPORTATION SO WE WOULD DEFINITELY NEED THEIR COOPERATION IN THIS ENDEAVOR. NUMBER 8, WE WOULD LIKE ADDITIONAL SIDEWALKS CONSTRUCTED IN THE NEIGHBORHOOD. WE WOULD LIKE THESE SIDEWALKS ON BOTH SIDES OF OUR FOUR LANE COLLECTOR STREETS AND ON AT LEAST ONE SIDE ON THE MAJOR TWO-LANE STREETS IN THE NEIGHBORHOOD. ALSO, WE WOULD LIKE A SIDEWALK STUDY DONE ALONG PLAINS TRAILS, THIS IS THE STREET LEADING TO THE NEW McBEE ELEMENTARY SCHOOL AND AS THE PHOTOGRAPH IN FRONT OF YOU INDICATES, THERE ARE NO SIDEWALKS WHATSOEVER ON THIS STREET AT THIS TIME. WE FEEL IT'S VERY IMPORTANT FOR THE SAFETY OF THE CHILDREN THAT SIDEWALKS BE INSTALLED. NUMBER 9, WE WOULD VERY MUCH LIKE LIKE -- VERY MUCH LIKE TO HAVE A NEIGHBORHOOD MULTI USE COMMUNITY CENTER LOCATED IN OUR NEIGHBORHOOD. NO. 10, WE WOULD LIKE TO COMPLETE REZONING IN PARTICULAR AREAS OF THE NEIGHBORHOOD. WE HAVE NOW ZONED NEIGHBORHOOD COMMERCIAL, LR, WE WOULD LIKE TO CHANGE THAT TO MULTI FAMILY RESIDENCE, LOW DENSITY, WHICH WOULD BE IN COMPLIANCE WITH THE CURRENT USE OF THE PROPERTY. AND WOULD ALLOW FOR SMART GROWTH, MIXED RESIDENTIAL INFILL. ALSO WE WOULD -- WE WOULD LIKE TO -- HAVE SOME REZONING DONE ALONG LAMAR AGAIN TO ALLOW SMART GROWTH NEIGHBORHOOD MIXED USE BUILDINGS WITH COMMERCIAL ON THE MAIN FLOOR AND RESIDENCES ABOVE. ARE THERE ANY QUESTIONS?

>>GOODMAN: COUNCIL, ARE THERE ANY QUESTIONS? I ACTUALLY DO HAVE ONE. WHEN YOU WERE TALKING ABOUT THE EXPANSION OF LIBRARY SERVICES AND ESPECIALLY THE MULTI PURPOSE CENTER, WERE YOU ALSO THINKING THAT THAT MIGHT BE POSSIBLE IF WE WERE ABLE TO ACQUIRE SOME OF THAT LAND TO EXPAND QUAIL CREEK OR WERE YOU THINKING OF A SPECIFIC SITE OTHER THAN THAT?

>> NO. THAT WOULD BE A DIFFERENT SITE. THERE IS PROPERTY ADD JAYS CERTAIN TO THE LIBRARY -- ADJACENT TO THE LIBRARY AT THIS TIME THAT IS TOTALLY VACANT AND I BELIEVE THAT SOME OF THAT COULD BE USED FOR THE EXPANSION OF THE LIBRARY.

>>GOODMAN: THAT'S WHERE YOU THINK AN ACTIVITY CENTER OR --

>> NO, ACTUALLY THE ACTIVITY CENTER I THINK WOULD BE MORE IN THE INTERIOR OF THE NEIGHBORHOOD.

>>GOODMAN: OKAY. THANK YOU. THANKS, MAYOR.

>>MAYOR WATSON: THANK YOU, COUNCILMEMBER ALVAREZ?

>>ALVAREZ: I WAS JUST WONDERING HOW LONG IT TOOK YOU TO DEVELOP THIS? BECAUSE IT'S A VERY LARGE AREA.

>> WELL, LIKE I SAID, IT STARTED 18 MONTHS AGO.

>>ALVAREZ: 18 MONTHS.

>> IT WAS A REAL PROCESS, BUT WHEN HE A GREAT NEIGHBORHOOD TEAM PUT TOGETHER TO WORK ON IT. WE ARE PRETTY WELL ORGANIZED NEIGHBORHOOD ASSOCIATION. WE DELIVERED MONTHLY NEWSLETTERS TO 3200 HOMES IN THE NEIGHBORHOOD. WE WERE REAL EXCITED ABOUT HAVING THE OPPORTUNITY TO PARTICIPATE IN THIS PLAN AND WE THANK THE COUNCIL FOR ALLOWING US TO DO IT.

>>ALVAREZ: I NOTICED THAT YOU DID THE DESIGN GUIDELINES AS WELL, SO I KNOW THAT'S A DIFFICULT TASK IN AND OF ITSELF. SO --

>> RIGHT.

>>ALVAREZ: I KNOW THAT TAKES A LOT OF WORK. IN OUR NEIGHBORHOOD WE DID DESIGN GUIDELINES AFTER THE NEIGHBORHOOD PLANNING PROCESS, SO IT WAS LIKE DOING ANOTHER NEIGHBORHOOD PLAN BASICALLY, BUT SO I AM GLAD THAT YOU WERE ACCIDENT INTEGRATE THAT, BECAUSE I KNOW THEY ARE DIFFICULT. DIFFICULT THINGS TO GET ACCOMPLISHED. SO I COMMEND YOU ON YOUR HARD WORK. JUST GETTING IT DONE.

>> THANK YOU. I WOULD LIKE TO THANK THE MEMBERS OF THE TEAM WHO ARE HERE THIS EVENING AND THEY HAVE DONE A GREAT JOB ON THIS.

>>MAYOR WATSON: WE HAVE SEVERAL PEOPLE THAT HAVE SIGNED UP. THEY ARE ALL IN FAVOR. BUT LET ME RUN THROUGH, IF ANYBODY WANTS TO TALK. [ONE MOMENT PLEASE FOR CHANGE IN CAPTIONERS]

>>MAYOR WATSON: I'LL ENTERTAIN A MOTION A MOTION TO CLOSE THE PUBLIC HEARING.

>>SLUSHER: SO MOVED.

>>MAYOR WATSON: IS THERE A SECOND? SECONDED BY THE MAYOR PRO TEM. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES. THE PUBLIC HEARING IS CLOSED. ITEM 106 LET ME GET A MOTION AND THEN I'LL HAVE DISCUSSION. I'LL RECOGNIZE COUNCILMEMBER SLUSHER.

>>SLUSHER: MOVE APPROVAL.

>>MAYOR WATSON: IS THERE A SECOND? SECONDED BY COUNCILMEMBER GRIFFITH. COUNCILMEMBER SLUSHER.

>>SLUSHER: SIR, COULD YOU COME BACK UP FOR JUST A SECOND?

>>MAYOR WATSON: MR. ALMOND, COULD YOU COME BACK UP?

>>SLUSHER: I WANT TO MAKE SURE I'VE GOT MY DATES ROUGHLY CORRECT, BUT I THINK A LOT OF THIS NEIGHBORHOOD HAS BEEN HERE FOR MANY YEARS, MANY DECADES, SEVERAL DECADES, BUT THERE WAS A LOT OF GROWTH DURING THE 1980'S IN THE NEIGHBORHOOD. IS THAT CORRECT?

>> YES, THAT'S RIGHT.

>>SLUSHER: OKAY. BECAUSE THAT WAS MY MAIN QUESTION. BECAUSE I THINK THAT WHEN WE TALK ABOUT AREAS THAT ARE UNDERSERVED IN THE CITY, AND THERE ARE SOME, BUT I THINK THIS IS ONE OF -- PART OF THE REASON MIGHT BE DIFFERENT STORIES, DIFFERENT NEIGHBORHOODS, BUT THIS IS ONE DURING THE '80'S THERE WAS A LOT OF GROWTH, A BOOM, AND THERE WEREN'T ORDINANCES IN PLACE, FOR INSTANCE THE PARKLAND DEDICATION ORDINANCE, AND THAT IS JUST ONE EXAMPLE, THAT ABLE TO DEAL WITH THAT KIND OF GROWTH AND I THINK THAT'S LEFT THIS AREA UNDISTURBED AND YOU WILL NOTICE IN A THE COST OF THIS ONE IS ABOUT DOUBLE THE OTHER ONE. I DON'T THINK THAT'S JUST BECAUSE THESE RESIDENTS, THESE NEIGHBORS JUST WANT TO SPEND MORE MONEY THAN THE OTHER PLAN. I THINK THAT REFLECTS A TRUE NEED. SO I WOULD ASK THE CITY MANAGER TO LOOK AT SOME OF THESE IDEAS FOR THE BUDGET THIS YEAR, AND THERE MIGHT BE SOME OF THEM, SIDEWALKS ESPECIALLY WHERE KIDS ARE GOING, THERE IS A PIECE OF PROPERTY RECOMMENDED FOR PURCHASE, IMPROVEMENTS TO THE PARK, THERE MIGHT BE SOME THINGS WE COULD DO QUICKLY.

>>MAYOR WATSON: ANY FURTHER DISCUSSION? MAYOR PRO TEM?

>>GOODMAN: I'LL WAIT FOR WILL.

>>MAYOR WATSON: COUNCILMEMBER WYNN.

>>WYNN: MR. ALMOND, CAN YOU TELL US WHAT AID THE CITY GAVE YOU AND YOUR TEAM DURING THE PLANNING PROCESS?

>> THAT IS ONE THING I OVERLOOKED AND I WANT TO THANK THE STAFF MEMBERS FROM FROM THE CITY. THEY WERE FANTASTIC IN HELPING US GET THROUGH THIS. I MEAN ESSENTIALLY WE KNEW NOTHING ABOUT NEIGHBORHOOD PLANNING WHEN WE STARTED THIS, AND THEY HAD TO HOLD OUR HAND THROUGH THE PROCESS AND ENCOURAGE US TO FOCUS ON THE ISSUES AND THIS THE THINGS THAT WE WANTED TO ACCOMPLISH AND THEY DID A GREAT JOB. THE CITY STAFF IS VITAL TO THIS PROCESS. IT CAN'T BE ACCOMPLISHED WITHOUT THEM.

>>MAYOR WATSON: MAYOR PRO TEM?

>>GOODMAN: I WOULD LIKE TO OFFER A SPECIAL THANKS TO THIS NEIGHBORHOOD AS WELL AND DISAGREE WITH YOU THAT YOU KNOW NOTHING ABOUT PLANNING. BECAUSE THIS HAS BEEN A WELL ORGANIZED AND COMMITTED NEIGHBORHOOD ASSOCIATION FOR A LONG, LONG TIME. IN FACT, THEY WERE VERY SUPPORTIVE WHEN I FIRST WAS TELLING THEM ABOUT A PLAN FOR NEIGHBORHOODS TO ACTUALLY GET TOGETHER AND DO THEIR PLANS AND HAVE THEM ADOPTED. AND THE PARK THAT EXISTS IN THIS NEIGHBORHOOD WOULDN'T EXIST AT ALL IF IT WERE NOT FOR THE COMMITMENT AND THE INNOVATION AND THE FOLLOW-THROUGH OF THIS NEIGHBORHOOD SO I THANK THEM.

>>MAYOR WATSON: FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES ON ITEM 106. CONGRATULATIONS TO YOU ALL TOO. GOOD JOB.

>> THANK YOU. [APPLAUSE].

>>MAYOR WATSON: A LOT TO BE PROUD OF TONIGHT, GUYS. CONGRATULATIONS. ITEM NO. 102 WILL BE TO CONDUCT A PUBLIC HEARING TO CONSIDER AN ORDINANCE ESTABLISHING A PROGRAM TO PROMOTE LOCAL ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS AND COMMERCIAL ACTIVITY WITH RESPECT TO THE DEVELOPMENT OF A CONVENTION CENTER HOTEL AND TO CONSIDER A RELATED RESOLUTION AMENDING RESOLUTION NO. 000302-30??)[ CREATING AUSTIN CONVENTION ENTERPRISES, INC., TO REVISE THE MAXIMUM INTEREST RATE THAT CAN BE PAID ON THE HEADQUARTERS HOTEL SENIOR BOND SERIES 2000 A FROM 8.5% TO 9% AND DELETE REFERENCES TO THE GROUND LEASE. RELATED TO ITEMS 21, 22 AND 23. AFTER WE CLOSE THE PUBLIC HEARING ON THIS ITEM, WE WILL GO BACK AND TAKE UP THE ACTION ITEMS WHICH ARE 21, 22 AND 23. MR. SMITH.

>> MAYOR AND COUNCIL, I WOULD LIKE TO PROVIDE A LITTLE BACKGROUND ON THE PUBLIC HEARING FOR THOSE COUNCILMEMBERS AND PEOPLE IN THE AUDIENCE WHO AREN'T FAMILIAR WITH THE WHOLE PROCESS WE'VE USED WITH THE HOTEL TO DATE. TWO YEARS AGO IN AUGUST OF 1998 THE CITY ISSUED A RFQ FOR THE SELECTION OF A DEVELOPER TO TRY AND DO A CONVENTION CENTER HOTEL. AND ONE YEAR AGO IN JULY OF 1999 THE COUNCIL AUTHORIZED THE EXCLUSIVE NEGOTIATION WITH HL HOTEL, WHICH WAS A DEAL BETWEEN HILL TON AS THE HOTEL OPERATOR AND LANDMARK, THE HOTEL DEVELOPER. AND AT THE TIME WHEN THE COUNCIL AUTHORIZED US TO DO THE NEGOTIATION, THE HL HOTEL WAS -- DEAL WAS PROPOSING AN 800 ROOM HOTEL WITH A 1,000 SPACE PARKING GARAGE WITH NO CITY INVESTMENT TO MAKE THE DEAL WORK, BUT IT WAS ALSO BASED ON A PROJECTED INTEREST RATE IN THE MARKET AT THAT TIME OF 6.75%. AND THE DEVELOPER WAS GOING TO BE THE RESIDUAL OWNER OF THE HOTEL WHEN THE BONDS WERE PAID OFF AT THE CONCLUSION OF THE 30 YEARS. WE ENTERED INTO THE NEGOTIATIONS WITH HILTON AND LANDMARK OVER THE NEXT SEVERAL MONTHS AND IN MARCH OF THIS YEAR WE BROUGHT TO YOU THE NEGOTIATED PACKAGE THAT WE HAD COMPLETED. AND AT THAT POINT THE COUNCIL AUTHORIZED US TO PROCEED AND AUTHORIZED THE CREATION OF THE NONPROFIT KORNTION TO IMPLEMENT THE DEAL. NOW, BETWEEN THE INITIAL PROPOSAL AND THE DEAL THAT YOU ADOPTED IN MARCH, SEVERAL THINGS HAD CHANGED. THE MOST MAJOR THING CHANGED IS THE MARKET HAD CHANGED AND INTEREST RATES HAD GONE UP SIGNIFICANTLY. AT THE TIME YOU ADOPTED THIS IN MARCH, WE WERE DEALING WITH INTEREST RATES PROJECTED TO BE ABOUT 8.5% AND AS A RESULT WE HAD TO TRIM 400 CARS OUT OF THE PARKING GARAGE TO SAVE $10 MILLION IN THE DEAL TO CONTINUE TO MAKE THE NUMBERS WORK. IT WAS STILL NO CITY INVESTMENT REQUIRED IN THE DEAL TO MAKE IT WORK. BUT THE MAJOR CHANGE FOR THE BENEFIT OF THE CITY IS THE CITY HAD BECOME THE RESIDUAL OWNER OF THE FACILITY WHEN THE 30 YEARS AND THE BONDS HAD BEEN PAID OFF. SO FROM THE TIME OF THE INITIAL PROPOSAL TO THE TIME OF THE NEGOTIATED DEAL THE CITY HAD BECOME THE OWNER OF THE FACILITY WHEN THE BONDS WERE PAID OFF. SINCE MARCH OR SINCE THE LAST ACTION THAT THE COUNCIL TOOK, WE HAVE, ALONG WITH HILTON AND LANDMARK AND OUR BANKERS REPRESENTING US GONE TO THE INVESTMENT COMMUNITY TO TRY AND TAKE THE DEAL THAT WE HAD NEGOTIATED AND GET INVESTORS INTEREST TO BUY BONDS FOR THIS PARTICULAR FACILITY. AND FOR THE LAST SEVERAL MONTHS WE'VE BEEN DOING THOSE NEGOTIATIONS. ONCE AN INITIAL CROP OF INVESTORS WERE IDENTIFIED THEY HIRED COUNSEL TO REPRESENT THEM TO DO NEGOTIATIONS WITH OUR ATTORNEYS REPRESENTING LANDMARK HILTON AND THE CITY. THE CLIMATE SINCE THE BEGINNING OF THIS DEAL HAS CHANGED SIGNIFICANTLY IN THE SENSE THAT SINCE INTEREST RATES ARE HIGHER, THE INVESTORS ARE IN A MUCH STRONGER POSITION TO MAKE DEMANDS ON THESE TYPES OF PROPOSALS THAT ARE SEEKING THEIR INVESTMENT. SO THE INVESTORS WERE MAKING CERTAIN DEMANDS TO MAKE THIS PROJECT MORE IN LINE WITH WHAT THEIR INVESTMENT GOALS WERE. THE MAJOR DEMAND THAT THEY WERE MAKING IS AFTER REVIEWING EVERYTHING AS THEY WERE ASKING THE CITY TO PUT $15 MILLION INTO THIS DEAL. THE GOOD NEWS THAT THEY TOLD US WHEN THEY MADE THAT REQUEST IS, ONE, THEY RECOGNIZE THAT THIS IS A GOOD DEAL AND THEY HAVE A STRONG INTEREST IN MAKING THE DEAL HAPPEN AND THEY RECOGNIZE THAT THE STRONG MARKET IN AUSTIN MAKES THE NUMBERS WORK. HOWEVER, THEY STILL WANTED A $15 MILLION COMMITMENT FROM THE CITY BECAUSE THEY WANTED A SOLID FINANCIAL DEMONSTRATION THAT THE CITYAS GOING TO BE COMMITTED TO THE SUCCESS OF THIS HOTEL AND CONVENTION CENTER BEFORE THEY WERE GOING TO INVEST THEIR MONEY IN THE PROJECT. SO THE ITEMS THAT WE'RE BRINGING FORWARD TO YOU TODAY, 21, 22 AND 23, ARE ITEMS NECESSARY FOR US TO -- FOR THE CITY TO GRANT TO THE NONPROFIT CORPORATION THAT YOU CREATED IN MARCH A GRANT OF $15 MILLION THAT WOULD BE PAID FROM THE GROSS REVENUES OF THE CONVENTION CENTER OVER THE NEXT THREE YEARS AND REPAID TO THE CONVENTION CENTER FROM THE REVENUES OF THE HOTEL OVER TIME. SO AT THIS STAGE FROM A STAFF PERSPECTIVE WE STILL WANT TO STRONGLY RECOMMEND YOUR SUPPORT FOR THESE ITEMS ON THE AGENDA TONIGHT BECAUSE WE FEEL THAT THE HOTEL, EVEN WITH THE CHANGE OF THE $15 MILLION COMMITMENT IS STILL A NECESSARY INGREDIENT FOR THE ULTIMATE SUCCESS OF THE EXPANDED CONVENTION CENTER AND THE GROWTH OF THE TOURISM INDUSTRY HERE IN TOWN. IT ALSO DOESN'T AFFECT THE GENERAL FUND IN THE SENSE THAT THESE WILL BE PAID FROM CONVENTION CENTER REVENUES, AND WHEN YOU PUT IT IN THE CONTEXT OF OTHER CONVENTION CENTER HOTEL DEALS WHICH ARE GOING AROUND THE COUNTRY LIKE DENVER, CHARLOTTE AND HOUSTON WHERE ONE OF THE -- WE'RE ONE OF THE ONLY ONES THAT WILL BECOME THE RESIDUAL OWNER OF THE HOTEL AND WE HAVE THE LOWEST AMOUNT OF PARTICIPATION EVEN AT THE $15 MILLION THAN ANY ONE OF THESE OTHER DEALS BEING PROJECTED AROUND THE COUNTRY. WITH THAT I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

>>MAYOR WATSON: DOES ANYBODY HAVE QUESTIONS? CHRRB.

>>SLUSHER: DO WE HAVE SPEAKERS.

>>MAYOR WATSON: YES.

>>SLUSHER: I'LL WAIT.

>>MAYOR WATSON: OKAY. SPEAKERS HAVE SIGNED UP ON ITEM NO. 102, BUT SOME ALSO SIGNED UP ON ITEM NO. 21. WHAT I'M GOING TO DO BECAUSE WE'VE CALLED THIS PUBLIC HEARING IS I'M GOING TO USE THE CARDS FROM BOTH 102 AND 21. AND THAT WILL BE OUR PUBLIC HEARING AND THEN WE'LL GO TO THE ACTION ITEMS. SEVERAL PEOPLE ALSO BY THE WAY WHEN THEY SIGNED UP WRO SOMETHING ON THE BACK OF THE CARD AND I'LL READ THE BACK OF THE CAR. THE FIRST PERSON IS SOMEBODY NAMED GUS GARCIA. [LAUGHTER] HE WRITES, THIS IS AN ASSET WE NEED TO HAVE TO MEET MANY COMMITMENTS FOR THE CITY OF AUSTIN AND IS IN FAVOR. MS. DEMP TONY, DO YOU WISH TO SPEAK? PLEASE COME FORWARD. JUAN COTERA, DO YOU WISH TO SPEAK? ALL RIGHT. YOU WILL FOLLOW HER. AND THEN MR. FOWLER, YOU WILL BE AFTER MR. COTERA. WELCOME.

>> THANK YOU, MR. MAYOR AND ESTEEMED COUNCILMEMBERS. I'M DEB TONY, LEGISLATIVE CHAIRMAN OF THE DAUGHTERS OF REPUBLIC OF TEXAS AND I HAVE BEEN ASKED TO EXPRESS OUR VIEWS ON THE SUSANA DICK INSON HOUSE LOCATED ON EAST FIFTH STREET. THERE ARE HUNDREDS AND THOUSANDS OF HILTON HOTELS THROUGHOUT THE WORLD AND HUNDREDS OF THOUSANDS OF PAVED PARKING LOTS THROUGHOUT THE WORLD, BUT THERE'S ONLY ONE MODEST LITTLE HOUSE THAT IS SPECIAL TO TEXAS AND TO AUSTIN LOCATED AT 501 PINE STREET, WHICH WE KNOW AS EAST FIFTH. THAT WAS THE HOME OF THE MESSENGER OF THE ALAMO, SUSANA DICK INSON. SHE WAS IN THE ALAMO WITH HER INFANT DAUGHTER AND HER HUSBAND LIEUTENANT DICKINSON WHO WAS IN COMMAND OF THE ARTILLERY FOR THE DEFENSE OF THE ALAMO. WHEN THE ALAMO FELL, GENERAL SANTA AND IN A GAVE HER SAFE PASSAGE WITH HER INFANT TO FIND GENERAL SAM HOUSTON AND TELL HIM THE ALAMO HAD FALLEN, THE TEXAS ANSWER HAD BEEN KILLED AND THEY WERE COMING FOR HIM. THIS GAVE GENERAL HOUSTON TIME TO RETREAT, REGROUP, GET HIS FORCES TOGETHER, WHICH EVENTUALLY LED TO THE SUCCESSFUL BATTLE OF SAN JACINTO WHICH GAVE TEXAS HER FREEDOM. SUSANA DICKINSON DIED ALMOST 117 YEARS AGO. SHE DIED OCTOBER 7TH, 1883. SHE RESTS IN OAKWOOD CEMETERY TERRI ALONG SIDE HER HUSBAND. BUT FASTER AND FASTER WE ARE GIVING UP AND LOSING, TRADING OUT GUIDES TO OUR HISTORY, THINGS WE CAN GO TO, SEE, WALK IN AND ON, TOUCH WITH OUR HANDS AND OUR HEARTS. I URGE YOU TO NOT LET PROGRESS OR BY WHATEVER MEANS, WHATEVER NAME IT IS CALLED ROB US OF THIS TREASURE IN OUR MIDST, PRECIOUS TO THE GENERATIONS THAT PRECEDED US AND IT WILL BE FOR GENERATIONS TO COME IF YOU CAN LET US SAVE IT. SO PLEASE LISTEN TO US WITH YOUR HEART TO A MESSAGE FROM THE MESSENGER FROM THE ALAMO AND SAVE THAT WHATEVER IS LEFT OF THAT TIME-WORN LITTLE HOUSE AT 501 PINE STREET. THANK YOU.

>>MAYOR WATSON: THANK YOU, MA'AM. MR. COTERA.

>> THANK YOU, MAYOR. CITY COUNCILL. MY NAME IS JUAN COTERA. I AM A PARTNER WITH COTERA AND REED. WE ARE THE ARCHITECTS ON THIS PROJECT. WE HAVE BEEN WORKING ON THIS PROJECT FOR -- IF WE INCLUDE THE PROPOSAL TIME, FOR ALMOST TWO YEARS, AND SINCE YOU TOOK ACTION ABOUT A YEAR. WE HAVE EARLY ON IN -- WE TOOK A LOOK AT THE SITE. WE AT THAT TIME WENT TO THE STATE. THIS WAS IN AUGUST, OUR FIRST CONTACT. WORKED OUT WHAT THEY WOULD LIKE US TO DO. WE HAVE PROCEEDED WITH THAT ON THIS HOUSE. WE HAVE ON OUR TEAM THE HICKS COMPANY, AN EXCEPTIONAL ARCHEOLOGYIST. WE HAVE MR. FREEMAN, AN EXCEPTIONAL PRESERVATION ARCHITECT. WE ARE WORKING WITH IT. WE ARE PUTTING TOGETHER WHAT IT IS THAT CAN BE DONE. WE ARE PRESENTING TO THE LANDMARK COMMISSION. HAVE PRESENTED, WILL PRESENT AGAIN. WE ARE PROCEEDING. WE ARE QUITE CAREFULLY, QUITE SENSITIVE TO WHAT WE HAVE THERE. I WOULD LIKE TO POINT OUT THAT WE ARE AT A VERY CRITICAL TIME. THAT MANY PEOPLE, FIRMS AND INDIVIDUALS, HAVE BEEN WORKING ON THIS WHO IF THIS PROJECT WERE NOT TO GO FORWARD WOULD BE IN VERY, VERY GREAT TROUBLE. WE PROCEEDED ON GOOD FAITH. WE PROCEEDED WITH A CLIENT, THE CITY OF AUSTIN, THAT WE'VE ALWAYS CONSIDERED THE BEST IN THE WORLD THAT WE WORKED WITH. THIS IS SOMETHING THAT IS FAIRLY NEW TO US. WE -- I HAVE TO TELL YOU WE ARE IN A VERY, VERY CRITICAL SITUATION HERE. WE WILL WORK WITH THE STATE, WE WILL WORK WITH THE LANDMARK COMMISSION, BUT WE NEED TO PROCEED FORWARD WITH THIS PROJECT.

>>MAYOR WATSON: MR. COTERA, WHEN DID YOU FIRST HEAR THERE MIGHT BE -- BECAUSE I KNOW THE LANDMARK COMMISSION ACTED THIS WEEK WITH REGARD -- WHEN DID THIS FIRST COME UP THAT THE PROPERTY A LOT OF US THINK OF -- WHAT WE'RE TALKING ABOUT IS WHERE THE PIT BARBECUE IS.

>> YES.

>>MAYOR WATSON: ET CETERA IT'S THAT PIECE OF PROPERTY.

>> YES.

>>MAYOR WATSON: WHEN DID YOU FIRST BECOME AWARE THAT THERE MAY BE SOME PEOPLE THAT WANTED TO LOOK AT THE HISTORICAL ASPECT OF THAT?

>> WE FIRST BECAME AWARE OF WHAT THE REMAINS OF THE HOUSE LAST YEAR. AT THAT TIME WE -- WE TOOK SOME MEASUREMENTS, WE TOOK A LOOK AT IT, WE STARTED RECORDING AND THIS IS WHEN WE FIRST APPROACHED THE STATE. AND THAT WAS PROBABLY THE WE FIRST LOOKED AT IT IN JULY OR SO, AND IN AUGUST WE CONTACTED THE STATE.

>>MAYOR WATSON: OKAY.

>> TO SEE WHAT NEEDED TO BE DONE.

>>MAYOR WATSON: AND THE ACTUAL STRUCTURE, WHEN WE TALK ABOUT A STRUCTURE, WHAT THE REMAINING OF THE HOUSE?

>> THERE IS APPROXIMATELY -- WELL, THERE'S THREE WALLS, SOME OF THE WALLS ARE GONE, SOME OF THE EXTERIOR WALLS ARE GONE, SOME ARE THERE. THE TWO GABLE END WALLS ARE THERE. THE BACK WALL IS THERE. SOME INTERIOR PARTITIONS ARE THERE. THE CONSTRUCTION IS RUBBLE LIMESTONE, VERY TYPICAL OF THE TIME, WITH LIME SAND, MORTGAGE ARREST, WHICH IS VERY FRAGILE, SOME OF THE WALLS HAVE BEEN PLASTERED WITH PLASTER OVER THE YEARS, WHICH MEANS THAT THEY ARE NOT SALVAGEABLE. IF YOU TRY TO TAKE THE PLASTER OFF, YOU -- WHEN YOU PULL THE MORTAR OUT. SOME OF THE ROOF STRUCTURE IS LEFT. I WOULD SAY ABOUT TWO-THIRDS OF THE ROOF STRUCTURE, MAYBE LESS. WE ARE GATHERING ALL THIS INFORMATION AND WE'LL HAVE VERY DETAILED INFORMATION IN THE NEXT WEEK OR SO. THE FLOORS HAVE BEEN POURED IN CONCRETE, WHICH DOES A GREAT DEAL OF DAMAGE TO THAT BUILDING BECAUSE THEY'VE BEEN POURED UP TO THE WALLS. IT'S, IN THE OPINION OF MR. FREEMAN, IT'S NOT A RESTOREABLE HOUSE. WE STUDIED THE FEDERAL HISTORIC LANDMARK GUIDELINES ON PRESERVATION. IT -- UNDER THOSE GUIDELINES, IT WOULD NOT BE ONE THAT WOULD BE RESTORED. WHAT WE PROPOSED IS TO SALVAGE AS MUCH AS WE CAN, INCLUDE -- AT THE EXACT LOCATION AND IN THE LOBBY OF THE HOTEL AN EXHIBIT THAT SHOWS VERY MUCH HOW THE -- WHAT THE HOUSE WAS LIKE AND WHO THE FAMILY WAS AND WHO THE PEOPLE WERE. THIS WOULD BE A PERMANENT EXHIBIT. HILTON HAS AGREED TO THAT. ACTUALLY THEY ARE DELIGHTED WITH THE IDEA OF HAVING THAT IN THE HOTEL. WE ARE CONTINUING WITH THAT. WE'RE DOING EVERYTHING POSSIBLE TO -- TO MAINTAIN THE SPIRIT OF THAT HOUSE.

>>MAYOR WATSON: SO YOU ARE WORKING TO TRY TO INCORPORATE ASPECTS OF THAT HOUSE INTO THE OVERALL DESIGN?

>> ABSOLUTELY. WE WERE WORKING IN THAT DIRECTION LONG BEFORE ANY CONCERNS WERE VOICED BY THE LANDMARK COMMISSION.

>>MAYOR WATSON: OKAY.

>>WYNN: MR. MAYOR?

>>MAYOR WATSON: YES.

>>WYNN: WAS YOUR FIRM HIRED BY THE CITY OF AUSTIN OR BY THE DEVELOPER OF THE HOTEL?

>> BY LANDMARK.

>>WYNN: OKAY.

>> YES, SIR. THANK YOU.

>>MAYOR WATSON: THANK YOU. JIM FOWLER. MR. SMITH, WILL YOU HELP HIM WITH THE MICROPHONE?

>> CAN YOU ALL HEAR?

>>MAYOR WATSON: YES.

>> I'M PRETTY LOUD. FIRST I WANT TO SEE -- FIRST I WANT TO SAY I'M NOT OFFICIALLY REPRESENTING THE LANDMARK COMMISSION.

>>MAYOR WATSON: MR. FOWLER, MY ONLY CONCERN IS THAT BECAUSE OF THE LOCATION OF THE PODIUM, IF YOU WILL -- WHY DON'T WE USE THIS MICROPHONE. THAT WOULD BE -- THAT WOULD WORK BETTER.

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: NO, YOU ARE FINE RIGHT THERE.

>> FIRST OF ALL, I AM NOT OFFICIALLY REPRESENTING THE LANDMARK COMMISSION HERE TONIGHT. I AM ON THE LANDMARK COMMISSION AND I WAS PRESENT AT THAT MEETING LAST MONDAY NIGHT WHEN WE DID INITIATE ACTION ON THIS SITE. WE HAVE -- AND SO I CAME FORWARD TONIGHT REALIZING THAT I COULD SEE THAT WE WERE HEADED TOWARD AN ADVERSARIAL SITUATION. I WANTED TO AVOID. THERE'S NO REASON WHY WE CAN'T HAVE A WIN-WIN SITUATION HERE TONIGHT AND WHAT I'M ASKING THE COUNCIL TO DO IS TO EXPRESS TO THE ARCHITECTS TO INCORPORATE THE BUILDING INTO THE NEW DESIGN. FORTUNATELY WE HAVE SOME REAL GOOD ARCHITECTS, AND THEY CAN DO THAT. I'M NOT TALKING ABOUT RESTORATION OF THE BUILDING. SOMEONE ELSE MAY BE TALKING ABOUT THE RESTORATION OF THE BUILDING, BUT I DON'T THINK THAT'S DESIRABLE OR NECESSARY IN THIS STAGE THAT THERE IS ENOUGH THERE THAT WE COULD HAVE THE FEATURES OF THE BUILDING INCORPORATED INTO THE HOTEL. PERHAPS FOR THE USE OF, OH, A GIFT SHOP HAS BEEN ONE SUGGESTION. PERHAPS A REGISTRATION CENTER. PERHAPS THE ENTRANCE TO THE HOTEL. THE BUILDING, FORTUNATELY, SITS AT THE EDGE OF THE PROPERTY OF THE NORTHWEST CORNER. SO WHEN YOU SEE THE PIT BARBECUE, THAT'S NOT THE ENTIRE TRUCK TOUR WE'RE TALKING ABOUT. AND -- STRUCTURE WE'RE TALKING ABOUT. WE ARE REALLY WILLING TO WORK OUT SOME SORT OF COMPROMISE ABOUT WHAT'S THERE. WE'RE NOT TALKING ABOUT RESTORATION. MANY OF THE FEATURES INSIDE THE BUILDING ARE MISSING. 82% OF THREE WALLS ARE THERE. IF YOU EVER HAVE A CARDBOARD ATTACK AND YOU GO INTO THE PIT BARBECUE, WHERE YOU PUT YOUR TRAY DOWN THE ROW, THAT'S THE NORTH BUILDING, THAT'S GONE. A GOOD BIT OF THE ROOF, THE TIMBERS OF THE ROOF, THEY ARE ORIGINAL, AND THEY ARE THERE. THIS HOUSE DATES FROM 1869. IN ADDITION TO IT THERE IS A SMALL LIMESTONE STRUCTURE OUTBUILDING FROM THERE TOO. YOU KNOW, I DON'T KNOW WHAT PART WE CAN COME UP WITH, BUT IF WE CAN GET AN EXPRESSION FROM THE COUNCIL TO THE ARCHITECTS OF SAYING, LOOK, LET'S INCORPORATE THIS INTO THIS BUILDING, LET'S BE CREATIVE HERE. LOOK HOW WIN-WIN IT IS. HILTON GETS A REPUTATION -- AM I OUT OF TIME?

>>MAYOR WATSON: NO, I WAS JUST GOING TO ASK MR. -- [BUZZER SOUNDS].

>>MAYOR WATSON: WELL, YEAH YOU ARE.

>> ANY QUESTIONS?

>>MAYOR WATSON: I'M GOING TO ASK MR. COTERA TO COME UP AND ADDRESS WHAT YOU JUST LAID OUT.

>> ALL RIGHT.

>> YES, SIR. WE'RE IN THE PROCESS OF REPAIRING A -- PREPARING A PRESENTATION FOR THE LANDMARK COMMISSION ON WHAT IT IS THAT CAN BE DONE. AND WE'RE LOOKING AT THE WHOLE RANGE, FROM FULL PRESERVATION TO -- AND FINDING WHY -- IF THERE ARE PROBLEMS WITH FULL PRESERVATION WHAT THEY ARE SO IT'S VERY CLEAR. BUT WE'RE ALSO LOOKING AT HOW BEST TO PRESERVE THAT. I THINK WHAT YOU JUST SAID IS PERFECT. THAT'S EXACTLY THE DIRECTION WE WOULD LIKE TO GO. AND IT NEEDS SOME IMAGINATION. IT NEEDS SOME REALLY GOOD APPROACH BECAUSE WE HAVE A DIFFICULT SITUATION. WE HAVE A LOT OF EXCAVATION HAS TO HAPPEN. BUT WE HAVE HAD LONG CONVERSATIONS WITH THE BUILDER, WITH LANDMARK, AND THEY ARE CERTAINLY SUPPORTIVE OF JUST ABOUT ANYTHING WE CAN DO. AS YOU SAID, THERE ARE ROOF MEMBERS THAT ARE OLD GROWTH, LONG LEAVE PINE THAT HAVE BEEN BASICALLY PRESERVED BY THE SMOKE FROM THE PIT BARBECUE THAT ARE WONDERFUL AND THAT WE WOULD CERTAINLY REUSE THAT AND TRY -- AND I'M NOT JUST SAYING REUSE TERMS. I'M SAYING WE NEED TO PRESERVE THE SPIRIT OF THE HOUSE.

>>MAYOR WATSON: THANK YOU, MR. COTERA. DEBBIE DENNING HAS SIGNED UP NOT SPEAKING, BUT FOR. SARAH SAID INQUIST, NOT SPEAKING BUT FOR. TOM PETTY HAS SIGNED UP NOT SPEAKING BUT NOT FOR OR AGAINST AS NEAR AS I CAN TELL. MR. PETY, ARE YOU -- ARE YOU HERE? TOM PETTY. CHRISTINE KRAMER SIGNED UP NOT SPEAKING BUT FOR AND WRITES, COUNCILMEMBER SLUSHER PUT IT BEST IN SAYING THAT THE $15 MILLION COMMITMENT FROM THE CITY IS AN INVESTMENT, UNDERLINED, RATHER THAN AN EXPENSE. IT IS IMPERATIVE THAT THIS MEASURE IS APPROVED SO THAT THE CONSTRUCTION OF THIS HOTEL CAN BE EXPEDITED. THE LONGER THE EXPANDED CONVENTION CENTER OPERATES WITHOUT A LARGE HOTEL, THE MORE MONEY THE CITY WILL LOSE. RICK LUBER SIGNED UP NOT SPEAKING BUT FOR AND WRITES THIS IS THE LAST PIECE TO COMPLETE THE PACKAGE THAT WILL BRING MILLIONS TO THE COMMUNITY. TIME IS OF THE ESSENCE. IF NOT NOW WE WILL LOSE THOUSANDS OF CONVENTION DELEGATES TO OTHER CITIES. WENDY MARG GONE SIGNED UP NOT SPEAKING AND AGAINST. CANDICE -- I'M SORRY? IS WENDY MORGAN HERE?

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: ALL RIGHT, WELL NEXT TIME FILL OUT HER CARD FOR HER. [LAUGHTER] OR MAYBE YOU DID. [LAUGHTER].

>> [INAUDIBLE - NO MIC ON].

>>MAYOR WATSON: CANDICE VOLES. DO YOU WISH TO SPEAK? OKAY. PLEASE COME FORWARD. MARY KAY HACKLY SIGNED UP NOT SPEAKING BUT FOR AND WRITES IT'S CRUCIAL THIS ITEM BE PASSED. FUTURE BUSINESS FOR AUSTIN IS DEPENDENT ON THE COMPLETION OF THIS PROJECT. WITHOUT IT AUSTIN COULD LOSE THE OPPORTUNITY FOR MILLIONS OF DOLLARS OF CONVENTION BUSINESS.

>> THANK YOU. MAYOR AND COUNCIL, I'M HERE AS A PRIVATE CITIZEN TONIGHT, BUT I'M A MEMBER OF THE HERITAGE SOCIETY AND OF THE DAUGHTERS OF THE REPUBLIC OF TEXAS, AND I'M ALSO THE PRESIDENT OF AN ARCHITECTURAL FIRM IN AUSTIN, WHICH FOR THE PAST 20 YEARS HAS BEEN -- HAS DONE NOTHING BUT PRESERVATION AND RESTORATION PROJECTS THROUGHOUT AUSTIN, TEXAS, AND EVEN INTO THE STATES BEYOND TEXAS. AMONG OUR PROJECTS ARE THE STATE CAPITOL, THE OLD LAND OFFICE BUILD, THE DRISKILL HOTEL, THE LITTLEFIELD HOUSE AND THE GOVERNOR'S MANSION AND THROUGH THOSE PROJECTS WE KNOW HOW VALUABLE PRESERVATION CAN BE IN A COMMUNITY FOR THE SENSE OF CONNECTEDNESS THAT IT PROVIDES TO OUR PRAFT. BUT ALSO THIS IS ONE OF THE THINGS THAT DIFFERENTIATES ONE COMMUNITY FROM ANOTHER. TEXAS IS -- THE CITIES IN TEXAS ARE INCREASINGLY DISTINGUISHED BY ROAD ROT. THE STRIP MALLS, THE CHAIN STORES THAT ARE UP AND DOWN THE FREEWAYS AND THE BIG STREETS THROUGHOUT THESE COMMUNITIES, AND IT'S THIS SENSE OF UNIQUENESS AND PLACE THAT BRINGS PEOPLE TO AUSTIN. THIS IS WHAT PROVIDES THAT ECONOMIC INCENTIVE, THAT TOURISM THAT WE COUNT ON. LOOK AT SIXTH STREET AND HOW THAT RELIES ON THE OLD BUILDINGS. THIS IS WHY I WOULD LIKE TO SEE THIS BUILDING BE PRESERVED. AND LISTENING TO MR. COTERA TALK ABOUT SAVING A FEW PIECES OF THE BUILDING AND PUTTING THEM IN A DISPLAY CASE ALONG WITH SOME PHOTOGRAPHS, THIS IS NOT THE SAME THING --.

>>MAYOR WATSON: I DON'T THINK WE HEARD HIM SAY THAT.

>> PERHAPS I MISHEARD. BUT I DON'T THINK THAT SAVING A FEW PIECES OF THE BUILDING IN PHOTOGRAPHS ARE WHAT IT TAKES TO -- TO KEEP THAT SENSE OF CONNECTEDNESS WITH THIS LITTLE HOUSE AND THE HISTORY OF THE STATE OF TEXAS. SO I WOULD LIKE TO ASK YOU ALL TO CONSIDER THE ECONOMIC INCENTIVES THAT CAN BE MANIFESTED BY KEEPING THIS FOR THE HILTON HOTEL PROJECT. I WOULD LIKE YOU ALL TO CONSIDER KEEPING THIS LITTLE HOUSE AND WHAT IT CAN SAY ABOUT OUR PAST. THANK YOU VERY MUCH.

>>MAYOR WATSON: THANK YOU. THOSE ARE ALL THE PEOPLE SIGNED UP TO SPEAK. I'LL ENTERTAIN A MOTION TO ON CLOSE THE PUBLIC HEARING ON ITEM 102. MOTION MADE BY COUNCILMEMBER GRIFFITH, SECONDED BY THE MAYOR PRO TEM. DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED, SAY NO. MOTION CARRIES. LET'S GO BACK TO 21, 22 AND 23 AND WHAT I'LL DO IS CONSIDER DISCUSSION WITH REGARD TO ALL OF THOSE FIRST( JUST KIND OF AS A GROUP. COUNCILMEMBER SLUSHER.

>>SLUSHER: THANK YOU, MAYOR. I HAD SOME QUESTIONS. MR. SMITH AND MR. ANDERSON I MIGHT HAVE SOME QUESTIONS FOR YOU TOO. OKAY. SO THIS IS A $220 MILLION PROJECT; IS THAT CORRECT?

>> YES, SIR.

>>SLUSHER: OKAY. AND THE CITIES INVESTMENT IS PROPOSED TO BE $15 MILLION?

>> RIGHT.

>>SLUSHER: SO THAT'S AROUND SIX TO SEVEN PERCENT?

>> ROUGHLY.

>>SLUSHER: I'M NOT GOING TO ASK YOU TO DO THE MATH. [LAUGHTER]. I WAS SEEING HOW FAST YOU WERE, THOUGH. NOW, THE -- AND THEN THE CITY IS SUPPOSED TO GET ITS RETURN -- THE MONEY -- LET'S MAKE IT CLEAR BECAUSE I THINK SOME PEOPLE HAVE GOT THE IDEA THAT THIS IS SOMEHOW COMING FROM THE GENERAL FUND, THE CITY'S PROPERTY TAXES OR SALES TAXES, AND THAT'S NOT THE CASE. IT'S COMING FROM THE REVENUES ON THE CONVENTION CENTER. IS THAT CORRECT?

>> YES. THERE'S NO GENERAL FUND MONEY WHICH GOES TO SUPPORT THE CONVENTION CENTER, AND THE PLEDGE FOR THE $15 MILLION IS FROM THE GROSS REVENUES OF THE CONVENTION CENTER.

>>SLUSHER: OKAY. AND THEN THE CONVENTION CENTER FUND THEN WILL GET PAID BACK. IS THAT CORRECT?

>> IT'S THE WAY -- THERE ARE TWO SETS OF BOND, SERIES A BONDS AND SERIES B BONDS AND THEN THERE'S A SERIES OF RESERVES. SO AS THE SERIES A BOND PAYMENT IS MADE AND THE SERIES B BOND PAMENTD IS MADE AND WE FUND THE RESERVE, WHAT FLOWS TO THE BOTTOM AND IS LEFT OVER WILL GO BACK TO REPAY THE CONVENTION CENTER. INITIALLY FOR THE FIRST COUPLE YEARS WE'RE FUNDING BASICALLY JUST THOSE RESERVES. BUT AFTER SEVERAL YEARS THEN THE SUFFICIENT CASH FLOW GENERATED IN THE DEAL WITH THE CONVENTION CENTER WILL START GETTING PAID BACK.

>>SLUSHER: AND ABOUT WHAT YEAR, ROUGHLY, DO WE EXPECT THAT TO BEGIN HAPPENING?

>> THE LAST ANALYSIS WITH PROJECTED INTEREST RATES SHOWS ABOUT 2007, 2008.

>>SLUSHER: SO ABOUT SEVEN OR EIGHT YEARS?

>> RIGHT.

>>SLUSHER: OKAY. AND THEN HOW MANY YEARS IS IT EXPECTED BEFORE THE 15 MILLION IS PAID BACK?

>> I WOULD HAVE TO CHECK.

>> BOB HODGE, AUSTIN CONVENTION CENTER DIRECTOR. WITH THE CURRENT CASH FLOW PROJECTION, APPROXIMATELY FIVE YEARS FOR THE $15 MILLION WITH INTEREST TO BE PAID BACK TO THE CONVENTION CENTER DEPARTMENT.

>>SLUSHER: OKAY. ABOUT THREE MILLION A -- PLUS INTEREST.

>> YES, PLUS INTEREST. IT WILL BE MORE THAN THREE MILLION A YEAR. I THINK THE NUMBERS TOTAL UP TO ABOUT 20 SOME MILLION SO IT'S APPROXIMATELY FOUR MILLION A YEAR AVERAGE. SOME YEARS ARE BIGGER THAN OTHER. THE FURTHER OUT WE GET, THE MORE WE GET.

>>SLUSHER: OKAY. AND AT WHAT POINT IS THE GENERAL FUND GOING TO START TO GETTING SOME MONEY OUT OF IT?

>> ONCE THAT 15 MILLION AND INTEREST IS PAID BACK IN THAT FIVE YEARS, THEN THE MONEY CAN BE DISTRIBUTED AS AGREED UPON BETWEEN THE CORPORATION AND THE CITY. SO PROBABLY ABOUT 2013.

>>SLUSHER: OKAY. AND WHAT IS THE FORMULA LA OR HOW IS IT DETERMINED HOW MUCH OF THIS MONEY IS GOING TO THE CITY? HOW DO WE GET THAT PERCENTAGE THAT -- BEGINNING WITH WHAT IS GOING TO PAY BACK THE CONVENTION CENTER AND WHAT IS GOING TO GENERAL FUND?

>> THAT HASN'T BEEN DETERMINED YET.

>>SLUSHER: HOW DO WE GET THEN THE FIGURE OF FIVE YEARS?

>> THE WAY THE DEAL IS STRUCTURED AT THIS STAGE OF THE GAME IS JUST THAT THE MONEY WHICH IS FLOWING IS TO THE BOTTOM LINE WHICH THEN GOES TO THE CORPORATION. THE CORPORATION IS AN ARM OF THE CITY. ONCE THE CONVENTION CENTER IS PAID BACK, WE CAN BASICALLY DO WHATEVER WE COLLECTIVELY DECIDE WE WANT TO DO WITH THOSE MONEYS WHICH FLOW PAST THE RESERVES.

>>SLUSHER: OKAY. I THINK I ASKED TWO QUESTIONS. PROBABLY WASN'T CLEAR. THAT WOULD HAVE BEEN THE SECOND ONE ABOUT HOW IS IT DETERMINED WHAT IS GOING TO THE GENERAL FUND OF WHAT THE CITY GETS. I UNDERSTAND THE TALKS ARE STILL GOING ON BETWEEN THE CONVENTION CENTER DEPARTMENT AND THE BUDGET OFFICE.

>> YES.

>>SLUSHER: OKAY. BUT THEN HOW IS IT -- HOW IS IT DETERMINED TO BEGIN WITH HOW MUCH MONEY IS GOING TO THE CITY? IS THAT A PERCENTAGE OF THE PROFIT? TELL ME A LITTLE HOW WE GET THAT FIGURE.

>> WELL, THE NEGOTIATION IS STILL TAKING PLACE BETWEEN THE CORPORATION AND THE CITY, THE CONVENTION CENTER AND THE BUDGET OFFICE. AND ULTIMATELY WE'LL BE MAKING A RECOMMENDATION TO THE CITY MANAGER BASED ON ONCE WE GET A LITTLE CLOSER TO ACTUALLY SELLING THESE BONDS AND HAVE A CLOSER IDEA OF WHAT THE INTEREST RATE IS GOING TO BE, WE'LL HAVE A MUCH BETTER CASH FLOW ANALYSIS OF WHERE THE MONEY IS AND IN MUCH YEARS. BASED ON THAT WE'LL BE MAKING A RECOMMENDATION TO JESUS THAT BASICALLY LAYS OUT WE THINK THE CONVENTION CENTER SHOULD GET PAID THIS MUCH BACK FOR ITS INVESTMENT AND BEYOND THAT WE THINK THIS CAN BE RETURNED TO THE CITY FOR, YOU KNOW, WHATEVER THOSE AMOUNTS ARE.

>>SLUSHER: HOW DO WE GET THAT IN THE FIRST PLACE? OUT OF THE REVENUES THAT ARE COMING IN IN HOTEL?

>> STILL THE REVENUES THAT FLOW PAST THE RESERVES. ONCE THE RESERVES -- THIS IS OPEN INDENTURE. ONCE ALL OF THE RESERVES ARE FUNDED AND THE PAYMENTS ON THE BOND ARE MADE THAT MONEY FLOWS TO THE CORPORATION AND THE CORPORATION CAN USE IT TO SUPPORT IT.

>>SLUSHER: HOW DOES THAT SEPARATE OUT THE MONEY THE PRIVATE INVESTORS --

>> THOSE ARE THE BONDS, THE PRIVATE INVESTORS GET PAID BY THE SERIES A BONDS WHICH GET PAID FIRST, B SECOND, THEN WE FUND THE NUMBER OF RESERVES, THE CITY GETS PAID# LAST.

>>GARZA: AND THAT RESERVE FUND THAT MR. SMITH IS TALKING ABOUT, AS I RECALL, IS THREE TIMES THE ANNUAL PAYMENT OF DEBT. SO IN ESSENCE THAT CASH -- THEY CALL IT A CASH TRANSACTION MORE THAN A RESERVE FUND. ONCE YOU HAVE THE RESERVE BUILT TO THE CASH YOU NEED, THEN THE DOLLARS AS THEY START COMING IN, IF YOU REMEMBER THE BUCKET ANALOGY THAT MR. ANDERSON USED TO TALK ABOUT, THAT BUCKET IS FULL AND THE MONEY BEGINS TO FALL TO THE CITY ACCOUNT. WE WOULD THEN SET UP A PAYMENT FOR THE CONVENTION CENTER. THEY INVESTED 15 MILLION IN THIS FACILITY AND WE WOULD THEN FIGURE OUT WHAT KIND OF PAYMENT SCHEDULE THEY ARE DUE TO BE MADE WHOLE. MR. HODGE INDICATED HERE A MINUTE AGO FIVE YEARS OR TO ABOUT THE YEAR 2013. THAT -- AT THAT POINT THE CONVENTION CENTER WILL HAVE RECOUPED ITS $15 MILLION INVESTMENT. IF THE REVENUE STREAM IS STILL ABOUT WHAT I'VE SEEN, ABOUT FOUR OR FIVE MILLION A YEAR, WE NEED TO MAKE A DECISION BEYOND 13 WITH THAT FOUR TO FIVE MILLION COMING INTO THAT -- BECAUSE ALL THE RESERVES HAVE BEEN FILLED, WEE SATISFIED BOND HOLDERS, HOW DO WE WANT TO USE THAT MONEY. SHOULD THERE BE SOME OF THAT MONEY THAT IS RETAINED IN THE CONVENTION CENTER FOR CONVENTION CENTER BUSINESS, SHOULD SOME OF THAT MONEY COME TO THE CITY FOR BASIC USES THAT THE CITY MIGHT HAVE. THOSE DECISIONS ARE YET TO BE WORKED OUT. THAT DECISION, THEY THEY MAKE A RECOMMENDATION, WOULD COME TO THE CITY COUNCILL AND WE WOULD SAY HERE'S THE POLICY, HERE'S HOW THIS MONEY WILL FLOW, THIS IS HOW WE WOULD DETERMINE HOW TO TAKE ONCE -- ONCE EVERYONE HAS BEEN PAID, THIS IS HOW THE GENERAL FUND WILL BENEFIT.

>>SLUSHER: OKAY. AT ONE TIME THERE WAS TALK OF -- EARLIER THIS WEEK TALK OF BEFORE THE BONDS WERE PAID OFF COMPLETELY THERE MIGHT BE A PORTION GOING TO THE GENERAL FUND DEPENDING ON THOSE REVENUES. IS THAT STILL ON THE TABLE?

>> THAT'S THE SAME THING JESUS WAS DESCRIBING.

>>GARZA: ONCE THE DEBT SERVICE REQUIREMENTS ARE FULFILLED, WE COULD SCHEDULE THE PAYMENT TO THE CONVENTION CENTER IN SUCH A WAY THEY WOULD GET THE LION'S SHARE, BUT THE GENERAL FUND COULD HAVE SOME OF IT. WE COULD SKED I WILL IT SO THE CONVENTION CENTER GETS WHOLE IN A SHORTER TIME FRAME AND THEREFORE AFTER THAT PERIOD, FOUR TO FIVE YEARS, THEN THE CITY HAS TOTAL DISCRETION IN TERMS OF HOW TO USE THOSE DOLLARS. AND WE TALKED INITIALLY ABOUT A -- IN LIEU OF TAXES OF ABOUT HALF A MILLION. THE WE WE WORKED OUT THIS DEAL BEYOND THE YEAR 13 IF IT WERE TO TAKE THE CON VENTION CENTER TO GET TOTALLY WHOLE -- PRESENT VALUE CALCULATION, WHAT THAT MEANS IN D.A.'S DOLLARS.

>>SLUSHER: OKAY. I WANT TO TAKE A FEW MORE QUESTIONS, MAYOR. SWITCH SLIGHTLY. WHILE MAYBE TWO YEARS AGO MAYBE WE HAD A WORK SESSION OVER AT TOWN LAKE CENTER AND THERE WAS TALK AT THAT TIME OF -- I THINK IT WAS UP TO $35 MILLION SUBSIDY. AND THAT -- AND SOME OF US HAD A FAIRLY NEGATIVE REACTION TO THAT BECAUSE IN MY THINKING, INCLUDING ME, AND IT WAS BECAUSE THAT WAS A -- I CONSIDERED THAT TO BE A CITY SUBSIDY JUST TO A PRIVATE DEVELOPMENT. BECAUSE THAT WAS GOING TO -- IT WAS GOING TO BE A PRIVATE DEVELOPMENT, BUT ASIDE THE CITY'S CONVENTION CENTER. AND THEN WE GOT TO THE POINT WHERE WE'RE SAYING WELL, THERE'S NOT GOING TO BE ANY CITY SUBSIDY TO IT BUT IT'S STILL GOING TO BE PRIVATE. YOU TALKED A LITTLE ABOUT THIS IN YOUR PRESENTATION. BUT NOW WHAT IS PROPOSED HERE IS THAT THE CITY WOULD PUT IN $15 MILLION OUT OF THE 220, BUT AT THE END, THAT WOULD BE OWNED BY THE CITY -- THE HOTEL, THE HOTEL WOULD BE OWNED BY THE CITY'S GENERAL FUND. DO I HAVE ALL THAT CORRECT?

>> YES. WHEN WE DID THE INITIAL WORK SESSION SEVERAL YEARS AGO, WE WERE EXPLAINING TO THE COUNCIL HOW MOST OF THE CONVENTION DEALS AROUND -- CONVENTION CENTER HOTEL DEALS AROUND THE COUNTRY ARE BEING STRUCTURED. AS I MENTIONED IN MY OPENING, DENVER IS REPORTED IN THE PRESS PUTTING IN $55 MILLION INTO THEIR CONVENTION CENTER HOTEL AND THAT IS A PRIVATE DEAL. CHARLOTTE, EXCESS OF $30 MILLION. I WAS JUST IN MIAMI BEACH RECENTLY AND WENT THROUGH THE NUMBERS OF THE CONVENTION CENTER HOTEL AND THEY HAD IN EXCESS OF $70 MILLION IN THEIR DEAL. IN MOST OF THESE DEALS, THEY WERE STRUCTURED WHERE THE CITY HAD TO PUT THAT MUCH IN FOR THE DEVELOPER TO EVEN DO THE DEAL AND GET A FAIR RETURN ON HIS INVESTMENT. AND WHAT IS REALLY SIGNIFICANTLY DIFFERENT ABOUT THIS DEAL THAT WE HAVE WITH THE CITY IS WE WILL BE THE OWNERS OF THE HOTEL ONCE THE BONDS ARE PAID OFF, SO IT IS OUR INVESTMENT. AND THE 15 MILLION THAT THE CONVENTION CENTER WOULD HAVE TO PUT IN WOULD BE PAID BACK WITH INTEREST IN ADDITION TO US ASSUMING THE ASSET AT THE END OF 30 YEARS WHEN THE BONDS ARE PAID OFF. SO IT REALLY CAN BE CHARACTERIZED AS AN INVESTMENT AS OPPOSED TO IN THE OTHER CASES THE TRADITIONALLY REFERRED TO AS A SUBSIDY BY THE COMMUNITY TO MAKE THE DEAL WORK.

>>SLUSHER: YES. SO ALL OF THOSE YOU MENTIONED THE CITY THERE PUT IN CONSIDERABLY MORE. MULTIPLES OF WHAT AUSTIN IS BEING ASKED TO PUT IN. AND IN NONE OF THOSE CASES DOES THE CITY END UP WITH THE HOTEL.

>> TO MY KNOWLEDGE, ALL OF THOSE, NO, THE CITY DOES NOT OWN THE HOE SELL.

>>SLUSHER: OKAY. AND WHAT IS THE WORST CASE SCENARIO OR LET ME TELL YOU THE WAY I UNDERSTAND IT, THAT THE WORST CASE SCENARIO FOR THE CITY IS THE ECONOMY WENT INTO THE TANK AND -- WOULD BE THAT THE CITY WOULD -- CONVENTION CENTER DEPARTMENT WOULD LOSE THIS $15 MILLION WHICH IS INVESTMENT OF CONVENTION CENTER REVENUES. THAT WOULD BE BECAUSE THE BOND HOLDERS COULD TAKE BACK THE HOTEL FROM THE PRIVATE INVESTORS AND THEN THE CITY -- SO THE CITY WOULDN'T GET THE HOTEL, THEY WOULD LOSE THE $15 MILLION. ABSOLUTE WORST CASE.

>> RIGHT. EXACTLY. THE WAY WE LOOK AT THE WORST CASE SCENARIO IS SOMETHING GOES WRONG AND FOR WHATEVER REASON THE HOTEL DOESN'T PRODUCE THE REVENUE AS PROJECTED IT CAN BE A CALL TWOR FOR CLOSURE AND IN THAT THE CITY WOULD LOSE AND THE CORPORATION WOULD LOSE THE HOTEL, BUT AT THE SAME TIME IT'S HIGHLY UNLIKELY THAT AN 800 ROOM HOTEL IS GOING TO BE USED FOR ANYTHING ELSE BUT A HOTEL. SO EVEN THOUGH WE WOULD LOSE OUR ABILITY TO OWN THE HOTEL, WE WOULD STILL HAVE THE BENEFIT OF HAVING MOST LIKELY OF HAVING A CONVENTION CENTER, HOTEL NEXT TO IT, JUST UNDER DIFFERENT OWNERSHIP.

>>SLUSHER: WE'RE GOING TO BE GETTING SALES TAX REVENUE OFF OF THIS.

>> RIGHT. IF IT LEFT OUR CORPORATIONS HANDS AND WENT TO A PRIVATE DEVELOPER IT WOULD IMMEDIATELY BECOME TAXABLE SO WE WOULD NOT ONLY GET THE PROPERTY TAX FROM THE VALUE OF THE FACILITY, WHICH WOULD BE IN EXCESS OF 200 MILLION, AND WE WOULD ALSO GET SALES TAX AND EVERYTHING ELSE COMING OFF THE PROJECT.

>>SLUSHER: AND HERE WE'RE NOT GETTING PROPERTY TAXES HERE, BUT WE ARE GETTING A PAYMENT IN LIEU OF. IS THAT STILL THE CASE?

>> WELL, ALL OF THE PAYMENTS COMING TO THE CITY ARE NOW STRUCTURED AFTER THE A BONDS ARE PAID, THE B BONDS ARE PAID AND RESERVES ARE FULL. SO RIGHT NOW THERE IS NO PROJECTION OF ANY MONEY COMING TO THE CITY OR THE CONVENTION CENTER. THE EARLIEST IS LIKE 2007. AND THAT STARTS BUILDING UP AND OVER TIME IT BECOMES A LOT MORE MONEY.

>>SLUSHER: AND THAT WAS ALWAYS DEPENDENT ON THE REVENUES, THE PAYMENT IN LIEU OF.

>> RIGHT.

>>SLUSHER: AND THEN -- AND BY THE CITY MAKING THE TAX EXEMPT BONDS POSSIBLE FOR THE HOTEL, THAT IS WHAT ALLOWS US TO LET THIS HOTEL END UP IN THE HANDS OF THE GENERAL FUND RATHER THAN THE CONVENTION CENTER? IS THAT CORRECT?

>> RIGHT. IT WAS JUDGES -- WE WERE DOING THE NEGOTIATIONS WITH LANDMARK AND HILTON THAT PRESERVED THE TAX EXEMPT STATUS FOR THE HOTEL AND THE -- IN THE EYES OF THE STATE AND THE APPRAISAL DISTRICT THAT IT HAD TO REVERT TO THE CITY TO DEMONSTRATE THIS REALLY WAS A PUBLIC ENTITY THAT WE WERE DEALING WITH. AND SO LANDMARK AGREED TO THAT AND THAT'S THE WAY THE DEAL WAS ULTIMATELY STRUCTURED.

>>SLUSHER: JUST A COUPLE MORE QUESTIONS. THE ESTIMATED WORTH OF THE HOTEL IN 30 YEARS AT THE TIME IT WOULD COME TO THE GENERAL FUND WOULD BE $350 MILLION?

>> YES.

>>SLUSHER: OKAY. jD THAT'S ALL MY QUESTIONS.

>>MAYOR WATSON: ANYBODY ELSE HAVE ANY QUESTIONS AT THIS POINT? COUNCILMEMBER WYNN.

>>WYNN: SEVERAL QUESTIONS, MR. SMITH. I'LL TRY TO ASK THEM IN A WAY THAT WITH YOUR HELP THE ANSWERS CAN BE SHORT. EARLIER YOU STATED THAT BECAUSE OF THE HIGHER INTEREST RATES, SINCE WE SORT OF VISUALIZING THIS TRANSACTION, THE INSTITUTIONAL BOND HOLDERS OR PROSPECTIVE BOND HOLDERS NOW HAVE MORE LEVERAGE IN NEGOTIATING WITH US I DON'T UNDERSTAND THAT. IT SEEMS TO ME WITH HIGHER INTEREST RATES, THEY SIMPLY CHARGE HIGHER INTEREST RATES. THEY SIMPLY MAKE MORE MONEY ON THEIR BOND INVESTMENT. INTRINSICLY THE HOTEL IS STILL THE SAME RISK THAT IT WAS WITH OR WITHOUT LOWER OR HIGHER COST OF MONEY. SO I DON'T UNDERSTAND HOW BECAUSE A BOND HOLDER MIGHT MAKE 8%, NOT 6%, HOW THEY AS AN INSTITUTION HAVE MORE LEVERAGE WITH US IN THESE NEGOTIATIONS.

>> WE HAVE A REPRESENTATIVE HERE FROM MERRILL LYNCH AND I'M SURE THEY CAN DESCRIBE THAT A LOT BETTER THAN I CAN, BUT ONE OF MY UNDERSTANDINGS ALSO IS THAT IT ISN'T JUST THE INTEREST RATES, IT'S THAT THE MARKET FOR THESE TYPES OF UNRATED TRANSACTIONS HAS SIGNIFICANTLY DRIED UP SO THERE'S NOT AS MUCH MONEY CHASING THESE TYPES OF DEALS AS THERE WERE NINE MONTHS AGO WHEN IT WAS A TOTALLY DIFFERENT MARKET. SO IF EITHER JOHN OR THE REPRESENTATIVE WANTS TO ANSWER YOUR QUESTION, THEY CAN EXPLAIN IT BETTER THAN I CAN.

>>MAYOR WATSON: [INAUDIBLE - NO MIC ON].

>> THE MERRILL LYNCH.

>> THE GENTLEMAN HERE, PETER FIP IP IS WITH U.S. BANK, PIPER JAFFREY. ONE OF OUR LEAD UNDERWRITERS.

>> I'LL TRY TO MAKE IT BRIEF AND TO THE POINT. IT'S NOT NECESSARILY A FUNCTION OF INTEREST RATE RISING. IT'S A FUNCTION OFLY KWID TI IN THE HIGH YIELD BOND MARKET. AND WE WERE 12 TO 18 MONTHS AGO WE WERE IN A POSITION WHERE THESE FUNDS WERE FLUSH WITH CASH AND THEY WERE CHASING VEPTS AND SO THEY WERE LESS -- LESS FINICKY, IF YOU WILL, WITH REGARD TO ALL THE UNDERLYING SPECIFICS OF THE TRANSACTION. AND NOW THEY ARE IN A POSITION WHERE WE'VE HAD -- YOU'VE HEARD THE TERM ASSET REALLOCATION WHERE FUNDS HAVE BEEN FLOWING OUT OF THEIR BOND FUNDS. AND SO YOU HEAR THE TERM LACK OF LIQUIDITY AND THAT'S WHAT WE'RE REFERRING TO. THERE'S NOT A LOT OF LIQUIDITY, THERE'S NOT A LOT OF CASH CHASING INVESTMENTS, SO THEY ARE ACTUALLY GOING TO HAVE TO, MANY OF THEM ARE GOING TO HAVE TO LIQUIDATE EXISTING POSITIONS AND INVESTMENTS IN ORDER TO REPLACE IT WITH THESE PARTICULAR BONDS. AND THAT'S TESTIMONY TO THIS PARTICULAR TRANSACTION.

>>WYNN: AS A FOLLOWUP, I'M SORRY, I HAVE SEVERAL QUESTIONS, MAYOR, ARE THE BOND A HOLDERS LIKELY THE SAME INSTITUTIONS AS THE BOND B HOLDERS?

>> NO, THEY ARE NOT.

>>WYNN: SO IN EFFECT THERE'S GOING TO BE WHAT I -- IN MY SIMPLISTIC MIND, I DON'T THINK THERE'S GOING TO BE A FIRST LIENHOLDER, IF YOU WILL, A SECOND LIENHOLDER, AND THEN THE CITY IS IN THE POSITION OF BEING A THIRD LIENHOLDER. IS THAT --

>> THAT'S A FAIR CHARACTERIZATION, YES.

>>WYNN: AND SO IF THAT'S A FAIR CHARACTERIZATION, THEN WILL THE CITY IN THE FUTURE HAVE THE RIGHTS OF A LIENHOLDER TO PROTECT ITS LIEN? AS AN EXAMPLE, IF THE FIRST -- IF IN YEAR 2005 WE'RE WITHIN FOUR OR FIVE YEARS OF TAKING OWNERSHIP OF A $300 MILLION HOTEL AND AN EVENT OF FORECLOSURE OCCURS, AND THE FIRST LIENHOLDER RECOGNIZING THE FACT THAT IN A FEW YEARS THEY ARE GOING TO GIVE UP OWNERSHIP -- POTENTIAL OWNERSHIP OF A $300 MILLION ASSET, WHAT RIGHTS WILL THE CITY OF AUSTIN AS EFFECTIVELY A THIRD LIENHOLDER HAVE TO PROTECT ITS FUTURE POSITION IN THE BUILDING? CAN IT CURE THE EVENT OF DEFAULT, WHATEVER THAT MIGHT BE?

>> THAT'S MORE OF A LEGAL QUESTION. I THINK THAT ONCE THE SENIOR BONDS ARE RETIRED AND THE SUBORDINATE BONDS, THEN YOU WOULD HAVE THE FULL CURE PERIODS IN THE EVENT OF A FORECLOSURE. IF SOMEBODY ELSE WOULD LIKE TO ADDRESS THAT FURTHER.

>> BILL VANWAGNER, AN ATTORNEY REPRESENTING THE CITY IN THESE NEGOTIATIONS, CAN ANSWER THAT QUESTION.

>> MAYOR AND COUNCILMEMBERS, I'M BILL VANWAGNER WITH THOMPSON AND KNIGHT AND I'VE BEEN REPRESENTING THE CORPORATION ON THIS MATTER. COUNCILMEMBER, WITH RESPECT TO YOUR SPECIFIC QUESTION, FIRST OFF THE CORPORATION IS NOT A LIENHOLDER. WHAT THE CORPORATION IS IS AN OWNER OF THE PROPERTY. AND AS AN OWNER OF A PROPERTY IT'S GOING TO INVEST $15 MILLION IN THAT OVERALL PROJECT IN ORDER TO BUILD THAT PROJECT. AS AN OWNER OF THE PROPERTY, UNDER THE INDENTURE AND ALSO UNDER THE MORTGAGE WHICH WILL COVER THIS PARTICULAR ASSET, WE WILL HAVE PURE RIGHT NRX FACT WE DO, THE FINAL DAYS OF CURE HASN'T BEEN ESTABLISHED, BUT IT WILL FALL IN THE AREA OF 90 TO 180 DAYS OF CURE. SO LET'S SAY THAT THE MARKET GOES DOWN AND CASH BECOMES SHORT. WHAT HAPPENS AT THAT POINT? YOU MISS A PAYMENT. THEORETICALLY YOU SHOULDN'T MISS A PAYMENT. WHAT YOU DO WITH BONDS IS SET UP RESERVES. AND THERE WILL BE RESERVE DOLLARS DEPOSITED INTO BOTH A SENIOR DEBT SERVICE FUND AND ALSO A SUBORDINATE DEBT SERVICE FUND. THE IDEA AGAIN IS TO PROTECT AGAINST THAT. AS FAR AS PROTECTING YOUR POSITION, LET'S SAY YOU GET TO THE BACK END OF THE DEAL AND YOU'VE GOT 27 YEARS OUT AND ALL OF A SUDDEN YOU'VE GOT A $350 MILLION ASSET AND YOU RUN INTO A BAD YEAR AND YOU DON'T MAKE PAYMENTS. BUT YOU KNOW YOU STILL HAVE A $350 MILLION ASSET. WHAT CAN YOU DO TO PROTECT YOUR POSITION? WELL, WHAT THE BOND HOLDERS HAVE TO DO, THEY JUST CAN'T UP AND TAKE THAT ASSET AWAY FROM YOU. WHAT THEY HAVE TO DO IS INSTITUTE A FORECLOSURE PROCESS. IF THE CITY SO DEEMS THAT IT IS -- IT IS IN ITS BEST INTEREST TO FUND THAT DEFAULTED MONEY THAT IS CORRECT DEFAULTED PAYMENT FOR THE NEXT YEAR OR JUST TO CURE THAT PARTICULAR MONTHLY PAYMENT, CERTAINLY AS AN OWNER THAT -- THE CORPORATION HAS THE FULL LEGAL RIGHT TO DO SO. SO THE DEFAULT POSITION IS TOTALLY WITHIN YOUR CONTROL AND THE DECISION WILL BE AN ECONOMIC ONE AND ALSO FRANKLY, HOW IT AFFECTS YOU PUBLICLY AT THAT PARTICULAR POINT IN TIME.

>>WYNN: SO BASED ON THAT, PERHAPS THIS IS FOR SOMEBODY ELSE, WHAT IS THE PROFORMA OCCUPANCY BREAK-EVEN FOR PAYMENTS TO THE FIRST AND SECOND LIENHOLDERS? AS EXAMPLE, ARE WE HAVING THE PROFORMA FOR THIS TRANSACTION TO WORK, ARE WE PROFORMA 67% OCCUPANCY RATE FOREVER AND HOW DOES THAT RELATE TO THE CURRENT OCCUPANCY MARKET OF DOWNTOWN HOTELS?

>> UNFORTUNATELY I CAN'T GIVE YOU A PROFORMA ON THE -- ON THIS PARTICULAR HOTEL. I WOULD BE DUMBFOUNDED IF IT WAS MUCH HIGHER THAN, OH, 76, 75, 76. THAT'S TYPICALLY WHAT YOU WILL SEE. THE -- THE RETURN ON THIS, TO GIVE YOU AN IDEA OF WHAT IS THE VIABILITY OF THIS ASSET FROM AN INVESTMENT PERSPECTIVE, WHAT YOU'VE HEARD MR. HODGE SAY IS THAT YOU ARE GOING TO GET $15 MILLION WITH INTEREST AS AN OWNER. AGAIN, THAT'S AFTER YOU HAVE FILLED UP YOUR RESERVES, THAT'S AFTER YOU'VE MADE YOUR CURRENT PAYMENTS. WITHIN FIVE YEARS, AFTER THE TIME THE MONEY BECOMES AVAILABLE IN THE CASH TRAP, FRANKLY THAT'S A VERY GOOD RETURNING, IT'S A VERY SHORT TERM LOAN, IF YOU WILL, ALTHOUGH AGAIN, I DON'T WANT TO CHARACTERIZE IT AS A LOAN BECAUSE IT TRULY IS AN EQUITY INVESTMENT. SO I THINK FINANCIALLY THE TRANSACTION LOOKS EXTREMELY VIABLE AND THAT'S WHY WE'VE GOT SUCH AN INTEREST IN THE MARKETPLACE AT THIS POINT. THIS IS A DEAD MARKET THAT YOU'VE GOT BOND PURCHASERS, FRANKLY VERY INTERESTED BECAUSE IT'S THE CITY OF AUSTIN. CITY OF AUSTIN OCCUPANCY RATES ARE FAR HIGHER THAN ANY COMPARABLE CITY IN TEXAS, AND I WOULD VENTURE TO SAY ONCE YOU KNOCK OUT -- ONCE YOU KNOCK OUT ORLANDO AND LAS VEGAS, YOU ARE PROBABLY RIGHT THERE. THIS IS CONSIDERED AN EXTREMELY, EXTREMELY HOTEL MARKET. TO GIVE YOU AN IDEA, I STAYED AT THE -- I CAME IN TOWN THE OTHER DAY AND I COULDN'T GET A ROOM. I STARTED FIVE DAYS AHEAD AND I COULD NOT GET A ROOM AT THE NEW INTERCONTINENTAL. I PAID $350 FOR A ROOM.

>>MAYOR WATSON: AND YOU ARE WORKING FOR THE CITY SO -- [LAUGHTER].

>> WELL, ACTUALLY THIS -- IF THIS DEAL CLOSES, THAT WILL COME COURTESY OF MY LAW FIRM.

>>MAYOR WATSON: IN THE FUTURE WHEN YOU FIND YOURSELF HAVING THAT SITUATION, I'VE GOT A PLACE YOU CAN SLEEP. IT WON'T COST THE CITY NEAR AS MUCH.

>> THANK YOU VERY MUCH. [LAUGHTER]. BUT MY POINT IS THIS MARKET IS EXTREMELY GOOD. OVER THE LAST YEAR AS I'VE BEEN COMING IN HERE, IT'S -- IT IS EXTREMELY DIFFICULT TO GET A ROOM ON A CONSISTENT BASIS. HILTON BELIEVES THIS WILL BE THEIR KEY BATTLE SHIP PROPERTY. THIS IS IT.

>>MAYOR WATSON: IF I MIGHT ADD, MR. HODGE, JUST AS AN ASIDE TO THAT, MR. HODGE, WE HAVE A NUMBER OF LARGE CONVENTIONS THAT -- DOWN THE ROAD THAT HAVE INDICATED THAT THEY ARE WILLING TO COME TO AUSTIN AND BE PART OF HAVING CONVENTIONS IN AUSTIN IN PART BECAUSE, A, WE'RE DOUBLING THE SIZE OF THE CONVENTION CENTER, AND B, WE'RE GOING TO HAVE A LARGE BLOCK OF ROOMS IN A HOTEL LIKE THIS. AND THAT'S ALREADY -- PEOPLE ARE ALREADY SIGNING UP FOR THAT.

>> YES, SIR, THAT'S THE CASE. MANY CONVENTIONS AND MANY MORE WAITING FOR US TO GUARANTEE THE OPENING DATE OF THE HOTEL AND I AM CONFIDENT THAT WE'LL BE STRONGLY BOOKED IN THE NEXT YEAR AFTER WE OPEN THIS HOTEL. ONE OTHER POINT TO MENTION, THE HBF STUDY, THEY DID AN ECONOMIC STUDY, IT WOULD BE OVER A THOUSAND JOBS CREATED BY THE HOTEL AND ANNUAL ECONOMIC IMPACT OF $116 MILLION TO THE COMMUNITY. BIG PART OF THAT IS HOTEL MOTEL TAXES WHICH THE CITY COLLECTS A MAJOR SHARE OF AND IN THE FIRST SHARE OF STABILIZATION I THINK OUR HOTEL TAX ALONE BEING PAID TO THE CITY IS ALMOST $3.7 MILLION ON AABLE BASIS, OF WHICH THIS CITY SPLITS UP AMONG THE ARTS, AUSTIN CONVENTION AND VISITORS BUREAU AND P PVIOUS BOND COMMITMENTS FOR THE CON STRENTION THERE.

>>WYNN: I GUESS THIS IS FOR MR. SMITH. EXPLAIN TO ME THE TIMING OF OUR INVESTMENT, THE -- WHAT I WOULD CALL A DROP DEAD DATE BECAUSE MY QUESTION RELATES TO THE HISTORIC NATURE OF THE HOME ON THE PROPERTY. WHAT I DON'T WANT TO BE IN A POSITION OF IS -- AT LEAST INDIVIDUALLY, I SUSPECT THIS COUNCIL WILL FEEL THE SAME WAY, OF US COMMITTING THE CITY OF AUSTIN TO $15 MILLION AND THEN THE COMMUNITY NOT BEING COMFORTABLE WITH WHAT ULTIMATELY MR. COTERA AND HIS FIRM COME UP WITH ON THE HISTORIC ASPECT OF THIS SITE. SO EITHER, ONE, YOU KNOW, HOW SLOW CAN WE BE ON OUR DROP DEAD DATE FOR THIS INVESTMENT, AND/OR FOR MR. COTERA, HOW QUICKLY CAN THERE BE THIS COMMUNITY DISCUSSION ABOUT WHAT ARE THE OPTIONS FOR THE HOTEL, FOR THE -- AND FOR THE HISTORIC ASPECT OF THE SITE?

>> WELL, AS A COUPLE -- THERE'S A COUPLE TIME LINES T FIRST TIME LINE EXCLUSIVE OF THE HISTORICAL ISSUE IS WITH THE CONCLUSION OF THIS ISSUE WE HAVE MET MOST OF THE COMMENTS THAT THE INVESTORS HAVE TOLD US THAT THEY WANT TO SEE COMPLETED IN ORDER TO DO THIS DEAL. SO WE ARE PRESUMING AT THIS STAGE OF THE GAME, AND THERE'S STILL MINOR ISSUES THAT HAVE TO BE WORKED OUT, THAT WE COULD CLOSE WITH THE INVESTORS WITHIN THE NEXT TWO TO THREE WEEKS. AND GET TO THE MARKET, DO THE DEAL. PART OF THE URGENCY FOR THAT IS, AS I'VE EXPLAINED TO YOU PREVIOUSLY TLRX IS ANOTHER DEAL SIMILAR TO THIS IN KANSAS IN THE MARKET AS WELL AND AS THE REPRESENTATIVE FROM U.S. BANG CORP EXPLAINED, THERE IS LIMITED LIQUIDITY AND THERE IS PROBABLY ONLY GOING TO BE ENOUGH MONEY TO DO ONE OF THESE DEALS AND NOT BOTH. WE DON'T KNOW THAT FOR FACT, BUT THAT'S WHAT EVERYBODY IS TELLING US. SO WE WOULD LIKE TO CLOSE BEFORE THE COUNCIL COMES BACK AUGUST 3RD FOR YOUR NEXT MEETING. WE WOULD HOPE THIS DEAL WOULD BE DONE BY THEN. THE HILL COUNTRY ISSUE IS A SEPARATE DEAL. THE HILL COUNTRY LANDMARK DRE -- HISTORIC LANDMARK COMMISSION HAS A MEETING SCHEDULED FOR THE LATTER PART OF JULY, THEY COULD SCHEDULE A SPECIAL CALLED MEETING AND IT IS UP TO THE DEVELOPER REPRESENTED BY MR. COTERA TO NEGOTIATE WITH THE LANDMARK COMMISSION TO SEE IF THEY COULD COME UP WITH SOME AGREEMENT THAT WOULD ALLOW THE LANDMARK COMMISSION TO NOT MAKE A RECOMMENDATION FOR HISTORIC ZONING BY COMING TO SOME AGREEMENT. THEREFORE WE COULD PROCEED AND CLOSE THE DEAL. IF FOR WHATEVER REASON THE LANDMARK COMMISSION DECIDES IN A MEETING THAT THEY WANT TO MOVE AHEAD AND DECLARE THIS BUILDING OR MAKE A RECOMMENDATION TO YOU THAT THIS BE DECLARED HISTORIC, THEN THAT RECOMMENDATION HAS TO GO TO THE PLANNING COMMISSION, WHICH THEIR EARLIEST MEETING IS AUGUST 1ST WHERE THEY WOULD TAKE ACTION, AND THEY ULTIMATELY WOULD COME TO THE COUNCIL. NOW, THE OWNER OF THE PROPERTY IS CLEARLY GOING TO OBJECT TO THIS BEING DECLARED HISTORIC ZONING WHICH MEANS IT WOULD TAKE SIX VOTES ON THE PART OF THE COUNCIL FOR YOU TO AGREE TO DECLARE THIS HISTORIC ZONING. SO THAT WOULD BE GENERALLY THE TIME LINE. SO THE WORST CASE SCENARIO IS ON AUGUST 3RD THERE WOULD BE A CASE BEFORE YOU FROM THE HISTORIC LANDMARK COMMISSION RECOMMENDING HISTORIC ZONING AND YOU WOULD HAVE TO MAKE DECISION ON IT.

>>WYNN: FRANKLY, IN MY OPINION THE WORST CASE SCENARIO IS THAT WE AS A COUNCIL OR THE COMMUNITY COMMIT OURSELVES TO THIS INVESTMENT AND THEN WE AS A COMMUNITY DON'T GET COMFORTABLE WITH WHAT, YOU KNOW, PHYSICALLY CAN HAPPEN WITH THE SITE.

>>MAYOR WATSON: MR. COTERA?

>> MR. WINN, AS I EXPLAINED, WE HAVE BEEN WORKING ON THIS FOR A LONG TIME. WE PRESENTED THIS PROJECT TO THE DESIGN COMMISSION, WE PRESENTED THIS PROJECT TO THE DOWNTOWN COMMISSION AND WE PRESENTED THIS PROJECT TO DAA AND NOW WE'RE WORKING WITH LANDMARK COMMISSION. WE FIRST STARTED WORKING WITH THE STATE IN AUGUST. WE -- THE PROJECT -- THE HOUSE HAS BEEN -- OR THE APPLICATION HAS GONE INTO THE STATE FOR THEM TO TAKE A LOOK AT IT. I -- MY FIRM HAS BEEN OPERATING IN AUSTIN SINCE 1972. WE'RE NOT ABOUT TO GIVE UP OUR REPUTATION BY PULLING SOMETHING ON. WE WILL FOLLOW THROUGH. WE WILL WORK WITH THE LANDMARK COMMISSION. FRANKLY, I DON'T SEE ANY PROBLEMS AT ALL IN DOING SOMETHING THAT SATISFIES THE COMMUNITY.

>>MAYOR WATSON: LET ME JUST ASK, COUNCILMEMBER, DO YOU MIND IF I INTERRUPT.

>>WYNN: IN FACT, I'M --.

>>MAYOR WATSON: BECAUSE SOMEBODY SUGGESTED WE'RE TALKING ABOUT HAVING A DISPLAY WITH ARTIFACTS IN IT. WHAT YOU ARE TALKING ABOUT, AND I'M GOING TO MAKE IT REAL SIMPLISTIC BECAUSE I'M NOT AN ARCHITECT, BUT WHAT YOU ARE TALKING ABOUT IS INCORPORATING IN THE DESIGN OF THE HOTEL THE STRUCTURE OF THIS OLD HOME OR PORTIONS OF THE STRUCTURE OF THIS OLD HOME SUCH THAT IF YOU ARE IN THE HOTEL, WHEN YOU SEE THIS, YOU RECOGNIZE IT AS A STRUCTURE OR SOMETHING THAT'S BEEN PERHAPS HISTORIC OR OLD.

>> RIGHT. YES.

>>MAYOR WATSON: IT'S NOT JUST --

>> NOT A PLAQUE.

>>MAYOR WATSON: A MARKER THAT SAYS HERE USED TO BE --

>> WE'RE NOT TALKING ABOUT A PLAQUE OR MARKER. IT'S WHAT THE STATE CALLS AN EXHIBIT. BUT AN EXHIBIT CAN BE SOMETHING QUITE ELABORATE. AND WE'LL MAKE SURE THAT EVERYBODY IS HAPPY WITH IT. [ONE MOMENT, PLEASE, WHILE CAPTIONERS CHANGE]. I THINK IT'S 8 AND 5/8THS TO 9?

>> THAT'S JUST A -- A MAXIMUM INTEREST RATE DEPENDING ON WHEN WE FINALLY GO TO THE MARKET AND HEAR BACK FROM THE INVESTORS WHAT IT WOULD BE. IT'S MERELY FOR THE COUNCIL TO AUTHORIZE THE CORPORATION TO GO UP TO THAT AMOUNT DEPENDING ON WHAT THE INVESTORS SAY. WHEN WE WERE HERE THE LAST TIME -- WE ARE NOT PROJECTING THAT, WE JUST WANT TO DO THAT SO WE DON'T HAVE TO COME BACK TO COUNCIL IF WE CAN CLOSE THE DEAL BETWEEN NOW AND AUGUST 3RD

>>GRIFFITH: THAT MAKES SENSE, COULD OUR BANKER COME BACK FOR A MINUTE? HOW ARE -- I UNDERSTAND THESE ARE UNRATED BOND. CAN YOU TALK A LITTLE BIT ABOUT WHAT RATINGS ARE AND WHAT BEING NON-RATED MIGHT MEAN IF -- IF YOU WERE AN INVESTOR AND IF YOU WERE SOMEBODY WHO -- WHO HELD THESE BONDS, WHAT WOULD YOU EXPECT?

>> THE -- THE DEGREE OF RATINGS RANGES OBVIOUSLY FROM TRIPLE A DOWN TO THE VERY LAST INVESTMENT GRADE, WHICH WOULD BE TRIPLE B PLUS. WE DID NOT SEEK RATINGS ON THIS -- ON THESE BONDS, PARTICULARLY BECAUSE YOU KNOW DEALS OF THIS NATURE ARE NON-RATED TRANSACTIONS. AND IT IS A NEGOTIATION PROCESS WITH INVESTORS AND BECAUSE IT'S NOT A PUBLIC OFFERING, IT IS A LIMITED PUBLIC OFFERING, A LIMITED OFFERING WITH INSTITUTIONAL INVESTORS. IT IS A -- IT'S BEING SOLD TO INVESTORS WHO CAN UNDERSTAND WHAT THE RISKS ARE THAT ARE INVOLVED IN THE TRANSACTION. AND CAN -- CAN WITHSTAND THAT RISK. DOES THAT ANSWER YOUR QUESTION?

>>GRIFFITH: IT HELPS. WHAT ARE TRIPLE A BONDS PAYING NOW? THE WAY OF A PERCENTAGE?

>> TRIPLE A BONDS, AN AVERAGE RATE FOR A 30 YEAR FINANCING TERM WOULD BE IN ABOUT THE 5.75 RANGE IF

>>GRIFFITH: 5.75. THESE WOULD -- WOULD BE UP TO NINE, POSSIBLY? SO IS THAT AN INDICATION OF A RISK FACTOR?

>> IT IS AN INDICATION OF THE RISK FACTOR WITHOUT, YOU KNOW, COMMITTING TO A FINAL RATE. IN TODAY'S MARKET I THINK WE ARE CLOSER TO AN 8 AND A QUARTER TO A 8.50 SUBJECT TO FINAL NEGOTIATION

>>GRIFFITH: OKAY. THAT PUTS IT IN PERSPECTIVE FOR ME. THANK YOU.

>> YOU ARE WELCOME.

>>MAYOR WATSON: ANY OTHER QUESTIONS OR COMMENTS AT THIS TIME?

>>GRIFFITH: I HAVE ONE MORE, MAYOR. MR. SMITH, I TALKED TO THE MANAGER ABOUT THIS, HE MIGHT HAVE TALKED TO YOU ABOUT IT, ALSO. I HAD BEEN READING IN SOME BUSINESS MAGAZINES THAT ON OCCASION A CITY MUNICIPALITY WILL UP FRONT SEVERAL MILLION DOLLARS OR TENS OF MILLIONS OF DOLLARS AND THAT MONEY WILL BE SPENT BY THE HOTEL ON ATTORNEYS AND -- WHICH IS A WONDERFUL INVESTMENT, I MEAN -- I MEAN THE BEST. [LAUGHTER]. ARCHITECTS, ENGINEERS AND -- THEIR RATING IS ON DOWN. AND FOR WHATEVER REASON THE MONEY IS GONE AND SO IS THE PROJECT. WHAT I HAVE TALKED TO THE MANAGER ABOUT, WHAT I WOULD LIKE TO ASK YOU ABOUT. IS IN ORDER TO PREVENT THAT KIND OF RISK, IS THERE AN OPPORTUNITY TO DO THE CASH INVESTMENT RATHER THAN A GRANT, WHICH IS ANOTHER WORD FOR A GIFT, ESSENTIALLY. A GIFT AND INVESTMENT. IS THERE A WAY WE COULD DO OUR INVESTMENT ON A REIMBURSEMENT BASIS FOR HARD COSTS WHEREBY THE HOTEL FRONTS THE FIRST FIVE MILLION, AND WE LOOK AT THE RECEIPTS AND PAY THEM BACK?

>> NO. WE SPENT A LOT OF TIME WITH THE INVESTORS ON THIS ISSUE AND WE ARE NOT IN CONTROL OF THE STRUCTURE OF THE INVESTMENT. THEY -- THEY DEMANDED $15 MILLION, LOOKING FOR A CASH PAYMENT UP FRONT. WE HAD A LOT OF NEGOTIATION TO GET THEM TO 3 5 MILLION DOLLARS PAYMENTS OVER THE NEXT TWO AND A HALF YEARS. IT IS THE ASSESSMENT OF OUR ATTORNEY AND THE BANGERS REPRESENTING US THAT WE HAVE TAKEN -- BANKERS REPRESENTING US THAT WE HAVE TAKEN THIS NEGOTIATION AS FAR AS IT CAN GO WITH THE INVESTORS AND STILL KEEPING THEM AT THE TABLE

>>GRIFFITH: DO YOU SEE ANY OPPORTUNITY IN BROACHING THAT APPROACH IN ORDER TO PROTECT -- IN ORDER TO PROTECT OUR INCOME SOURCE -- SOURCES FOR THE FUTURE?

>> WELL, THIS IS FROM THE GROSS REVENUES OF THE CONVENTION CENTER AND IT IS ESSENTIALLY AN EQUITY INVESTMENT THAT THEY ARE GOING TO GET A RETURN ON. SO WE FEEL IT IS AS PROTECTED AS ANY OTHER EQUITY INVESTMENT THAT THE CONVENTION CENTER COULD MAKE. ALSO THE BOTTOM LINE ON IT IS AT THIS STAGE OF THE GAME IT'S THE DEMAN OF THE INVESTORS -- FOR THEM TO DO THE DEAL.

>>GARZA: IN FACT AS PART OF THE DISCUSSIONS, MR. SMITH AND I TALKED ABOUT THIS, RATHER THAN GETTING THE 15 MILLION-ONE, THEY ARE GOING TO GET THE FIVE MILLION OVER A PERIOD, EACH YEAR IS 1/12TH PAYMENT. AS I UNDERSTAND THE MONEY IS HELD BY A TRUSTEE, THE WAY THIS WORKS THE. THE TRUSTEE WILL BE OBVIOUSLY CONTRACTUAL DOCUMENTS IN TERMS OF HOW PAYMENTS GET MADE TO ENSURE THAT THE BOND HOLDERS ARE PROTECTED, THAT THE ASSET IS BEING BUILT, THAT THE EXPENSETURES ARE CORRECT AND TRUE, WHAT NEEDS TO BE DONE, SO AT THE END THE ASSET IS THERE AS COLLATERAL FOR THAT INVESTMENT. I THINK THOSE PROTECTIONS WILL BE THERE. WE ARE NOT GOING TO GIVE 15 MILLION YEAR ONE, THAT WILL BE HAPPENING OVER A THREE YEAR PERI. THAT'S AS CLOSE AS WE CAN GET TO THE ISSUE THAT YOU TALKED ABOUT COUNCILMEMBER.

>>GRIFFITH: SO APPROACHING THE PEOPLE WHO COULD MAKE THAT DECISION ABOUT DOING REIMBURSEMENT FOR HARD COST APPROACH IS NOT SOMETHING THAT YOU WOULD BE WILLING TO DO AT THIS POINT IN THE PROCESS?

>> WE HAVE DELAYED COMING TO THE COUNCIL TO THIS POINT BECAUSE WE HAD TO GET TO BASICALLY THE FINAL POSITION OF THE INVESTORS. THAT'S WHY IT TOOK FROM MARCH TO THIS DATE TO DO THAT. WE ARE COMING TO YOU NOW WITH WHAT THE INVESTORS ARE SAYING THIS IS THE DEAL. THERE'S NO MORE ROOM FOR NEGOTIATION IN THIS THING, THIS IS WHAT YOU NEED TO TAKE YOUR BOSSES AND SEE IF THEY WANT TO DO THE DEAL THIS WAY

>>GRIFFITH: THANK YOU.

>>MAYOR WATSON: ANY FURTHER QUESTIONS, OTHERWISE I AM GOING TO SEEK A MOTION ON ITEM -- WHAT I WILL DO IS WE WILL VOTE ON THESE EACH INDEPENDENTLY. ITEM NO. 21, THERE IS A MOTION? -- IS THERE A MOTION? ITEM NO. 21 WILL BE AN ORDINANCE ESTABLISHING A PROGRAM TO PROMOTE LOCAL ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS AND COMMERCIAL ACTIVITY WITH RESPECT TO THE DEVELOPMENT OF A CONVENTION CENTER HOTEL AND AUTHORIZING A GRANT TO AUSTIN CONVENTION CENTER ENTERPRISES, HECK, FUNDING IS AVAILABLE IN THE CONVENTION CENTER OPERATING FUND, $5 MILLION FOR THE FIRST GRANT INSLLMENT AND $833,334 TO BE RESERVED FOR THE SECOND INSTALLMENT.

>>GOODMAN: I WILL MAKE THE MOTION.

>>ALVAREZ: I WANTED TO MAKE A COUPLE OF STATEMENTS. I SUPPORTED THE PROJECT, I WANT TO EXPLAIN A LITTLE BIT. I DO HOPE WE CAN ADDRESS THE HISTORIC ISSUE IN A MEANINGFUL WAY. THAT IS REALLY IMPORTANT TO ME, TOO, I REALLY WOULD LIKE TO SEE THAT HAPPEN. THERE IS SOME INDICATION THERE'S SOME INTEREST IN DOING THAT, I HOPE AGAIN WE WILL BE ABLE TO DO A GOOD JOB ON THAT. I DO SEE THIS AS MORE OF AN INVESTMENT AND NOT SO MUCH A SUBDY BECAUSE WE WILL, YOU KNOW, GET OUR MONEY BACK WITH BEFORE, A LOT OF INTEREST IN ALL GOES WELL. THE OTHER REASON REALLY THAT I WANTED TO JUST A MAKE COMMENT IS THAT WE HAVE BEEN INVESTING OR PROVIDING INCENTIVES FOR A LOT OF DEVELOPMENT DOWNTOWN FOR, YOU KNOW, HIGH TECH JOBS AND WHICH WILL PROVIDE SOME WORKING CLASS OR BLUE COLLAR JOBS, BUT THAT'S ANOTHER REASON I THINK IT'S IMPORTANT TO SUPPORT SOMETHING LIKE THIS BECAUSE IT WILL CREATE MORE BLUE COLOR JOBS IN OUR COMMUNITY, WHICH OBVIOUSLY THERE'S A BIG NEED FOR. THAT'S JUST ANOTHER THING THAT I WOULD LIKE FOLK TO CONSIDER. WHETHER IT BE WITH CONSTRUCTION OR THE OPERATION OF THE HOTEL ITSELF. SO I JUST WANTED TO MAKE THOSE COUPLE OF POINTS.

>>MAYOR WATSON: OKAY. MAYOR PRO TEM?

>>GOODMAN: THANKS, MAYOR, I AGREE WITH COUNCILMEMBER ALVAREZ AND HIS REASONS FOR SUPPORTING IT. I THINK THAT THE OPPORTUNITY AT THIS TIME AND THE ASSUMPTIONS WE CAN MAKE BASED ON CONVENTIONS AND THE TREND THAT WE HAVE BEEN ON MAKE IT A FAIRLY GOOD INVESTMENT FOR US AND FAIRLY NOMINAL INVESTMENT FOR THE PAY BACK THAT WE WILL GET. BUT I WANT TO ALSO SAY, CAN WE TRACK WITH THE ARCHITECTURAL FIRM, THE -- THE HISTORIC ELEMENT THAT WE ARE GOING TO INCORPORATE JUST SO THAT EVERYBODY KNOWS WE KEEP AN EYE ON IT. AND IF MS. EDGEMON IS WATCHING, THERE'S ALSO THE OTHER DESIGN ISSUE THAT WE ARE GOING TO TALK ABOUT, I'M SURE ALL OF THAT WILL BE FINE AS WELL.

>>MAYOR WATSON: COUNCILMEMBER SLUSHER? AND I WOULD BE WILLING TO BET PART OF THE BOND MONEY THAT SHE'S WATCHING. [LAUGHTER]. COUNCILMEMBER SLUSHER?

>>SLUSHER: YEAH, I AGREE WITH COMMENTS OF MY TWO COLLEAGUES AND I WANTED TO ADD THAT I WOULD HAVE -- I DID NOT SUPPORT FROM THE START ANY CITY SUBSYDY TO A PRIVATE INVESTMENT. I HAVE A PROBLEM WITH THAT. BUT ANOTHER SIDE OF THAT, ADDING ON TO WHAT COUNCILMEMBER ALVAREZ SAID ABOUT PROVIDING SOME BLUE COLLAR JOBS, THAT ANOTHER THING WE ARE GOING TO BE ABLE TO DO WITH THIS ONCE WE -- THE CONVENTION CENTER IS PAID BACK, ESPECIALLY ONCE THE HOTEL COMES INTO THE CITY'S HANDS, I DOUBT ANY OF US WILL STILL BE ON THE COUNCIL AT THAT POINT --

>> HEY.

>>SLUSHER: SORRY, WILL.

>>MAYOR WATSON: I THINK COUNCILMEMBER WYNN JUST ANNOUNCED FOR REELECTION.

>>SLUSHER: FOR 10 TIMES. [LAUGHTER]. BUT HE ASKED SOME VERY GOOD QUESTIONS, BY THE WAY, I WANTED TO THANK HIM FOR THAT, BECAUSE I THOUGHT YOU RAISED GOOD ISSUES. NOSE ARE VERY SIGNIFICANT TO GET THE ANSWERS TO. BUT ONE THING WE GET IS MORE MONEY FOR THE GENERAL FUND AND THE BASIC SERVICES OF THE CITY, THE HUMAN NEEDS OF THE CITY, AND THAT'S -- THAT'S VERY IMPORTANT. IT'S ONE THING WE HAVE DONE OVER THE LAST FEW YEARS IS LOOK AT NEW WAYS TO GET MONEY INTO THE GENERAL FUND BECAUSE JUST A FEW YEARS AGO, THE GENERAL FUND WAS IN CRISIS, THE CITY WAS HAVING TROUBLE MEETING THE BASIC NEEDS, THE BASIC SERVICES REQUIRED OF CITY GOVERNMENT, WE HAVE REALLY MADE A LOT OF PROGRESS ON THAT, WE CAN'T REST ON THAT ISSUE, EITHER. THIS WILL BE A BENEFIT REALLY DOWN THE ROAD AFTER WE ARE GONE TO THE GENERAL@

>>MAYOR WATSON: ANY FURTHER DISCUSSION? COUNCILMEMBER WYNN?

>>WYNN: I HAVE ONE MORE QUESTION FOR MR. SMITH. SEEMS TO ME THAT THE TRADEOFF ON THIS PARTICULAR PROPOSAL OVER WHERE WE WERE A YEAR OR MORE AGO IS THAT IN ORDER TO SHAVE $10 MILLION OFF THE COST OF THE PROJECT, 400 PARKING SPACES ARE ELIMINATED, YET WE NOW HAVE THIS OPPORTUNITY TO OWN THIS HOTEL LONG TERM. AND I -- I'M COMFORTABLE WITH THAT INVESTMENT THAT WE ARE PROPOSING TO MAKE FOR THE OWNERSHIP OF THIS HOTEL. MY QUESTION TO YOU IS WHAT ARE THE PROSPECTS OF US RECREATING OR REPLACING THOSE 400 SPACES THAT I GUESS AT ONE POINT WE THOUGHT WE NEEDED, ONE, DO WE STILL NEED THEM; AND, TWO, WHAT ARE THE PROSPECTS OF US REPLACING THOSE?

>> THE PROJECTED PARKING REQUIREMENTS FOR THE EXPANDED CONVENTION CENTER ARE APPROXIMATELY 1800 SPACES. WE HAVE 1100 SPACES IN THE EXISTING CONVENTION CENTER PARKING GARAGE. SO WE WOULD -- WE WERE PROJECTING WE NEED SOMEWHERE BETWEEN 700 AND 800 ADDITIONAL PARKING SPACES BECAUSE WE ARE DOUBLING THE SIZE OF THE CONVENTION CENTER. SO THAT PARKING NEED WAS ALWAYS THERE. WHEN WE WENT OUT WITH THE RFQ, WE THOUGHT WE WOULD PUT INTO THE RFQ TO SEE WHAT WE WERE GETTING BACK, WE WERE JUST SEEKING PROPOSALS HOPING THAT THE ULTIMATE DEVELOPER OF THE CONVENTION CENTER HOTEL WOULD ALSO INCLUDE ENOUGH PARKING SPACES IN THEIR PROPOSAL THAT WOULD TAKE CARE OF THE NEED, SO WE WOULDN'T HAVE TO DO ANYTHING ADDITIONAL. THAT DIDN'T WORK OUT. WE WERE HOPING THAT THAT WOULD TAKE CARE OF THE NEED, BUT IT DIDN'T. SO IT STILL REMAINS A NEED OF THE EXPANDED CONVENTION CENTER TO GO OUT AND FIND 700 TO 800 MORE PARKING SPACES. ON PREVIOUS COUNCIL ACT, I THINK IT WAS BACK IN MARCH, THEY AUTHORIZED US TO GO OUT ON A SPECIFIC PIECE OF PROPERTY IN THE VICINITY AND START PROCEEDING WITH THE PROCESS TO ACQUIRE THAT PROPERTY FOR THE CONSTRUCTION OF A PARKING GARAGE THAT WE WOULD DO JOINLY WITH AUSTIN ENERGY TO BUILD THE DISTRICT COOLING PLANT. WHY? SO THAT WE WOULD NOT ONLY HAVE A DISTRICT COOLING PLANT THAT WOULD SERVE THE HOTEL, SERVE THE EXPANDED CONVENTION CENTER, BUT WOULD BE AVAILABLE TO SERVE OTHER DEVELOPMENT THAT WOULD OCCUR IN THAT AREA, WHICH WOULD ALLOW THE ELECTRIC UTILITY TO MAKE MONEY AND REDUCE CAPITAL UP FRONT COSTS FOR THE HOTEL AS WELL AS THE CONVENTION CENTER. THAT HAS BECOME A CRITICAL COMPONENT TO MOVING AHEAD WITH THE PARKING GARAGE BECAUSE NOW THE EXPANDED CONVENTION CENTER IS BEING DESIGNED WITHOUT THESE FACILITIES IN IT. SO UNLESS THE ELECTRIC UTILITY DISTRICT COOLING PLANT GETS UP AND RUNNING, THERE WILL NOT BE AIR CONDITIONING IN THE EXPANDED CONVENTION CENTER OR THE PROJECTED HOTEL. SO THE PARKING GARAGE THAT WE ARE PROPOSING TO CONSTRUCT IS JOINTLY BEING DONE WITH AUSTIN ENERGY AND IT'S RELATIVELY CRITICAL TO MAKE SURE THAT THE PROJECTED DEVELOPMENTS COME ONLINE AND THE APPROPRIATE TIME FRAME DOWN THERE.

>>MAYOR WATSON: ANY OTHER DISCUSSION? ALL THOSE IN FAVOR OF ITEM NO. 21 SAY AYE. OPPOSED SAY NO. MOTION CARRIES 7 TO 0. ITEM NO. 22, I WILL ENTERTAIN A MOTION. MOTION TO APPROVE BY COUNCILMEMBER ALVAREZ, SECONDED BY THE MAYOR PRO TEM. IS THERE ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES ON ITEM NO. 22. 7 TO 0. ITEM NO. 23, IS THERE A MOTION? COUNCILMEMBER THOMAS MOVE.

>>MAYOR WATSON: MOTION TO APPROVE BY COUNCILMEMBER THOMAS, SECONDED BY COUNCILMEMBER --.

>>SLUSHER: [INAUDIBLE].

>>MAYOR WATSON: IN WHAT WAY, WHAT WERE YOU DOING?

>>SLUSHER: SECONDING.

>>MAYOR WATSON: I'M SORRY, I THOUGHT YOU JUST CRIED OUT THERE FOR A SECOND. [LAUGHTER]. SECONDED BY COUNCILMEMBER ALVAREZ AND ADDED TO BY COUNCILMEMBER SLUSHER. [LAUGHTER]. IS THERE ANY DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NO. MOTION CARRIES. 7 TO 0 ON ITEM NO. 23. COUNSEL, THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE AUSTIN CITY COUNCILL, I WILL ENTERTAIN A MOTION TO ADJOURN.

>>GOODMAN: SO MOVE.

>>MAYOR WATSON: MOTION MADE BY THE MAYOR PRO TEM, DEFINITELY SECONDED BY COUNCILMEMBER SLUSHER, ALL THOSE IN FAVOR SAY AYE,S ON POSSESSED NO. MOTION CARRIES, WE ARE ADJOURNED, THANK YOU VERY MUCH.

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