Closed Caption Log, Council Worksession
Wednesday, February 6, 2002

Note: Since these log files are derived from the Closed Captions created during the Channel 6 live cablecasts, there are occasional spelling and grammatical errors. These Closed Caption logs are not official records of Council Meetings and cannot be relied on for official purposes. For official records or transcripts, please contact the City Clerk at (512) 974-2210.

MAYOR GARCIA: HELLO. IT'S WEDNESDAY, FEBRUARY THE 6TH, FOR THE YEAR 2002. WE ARE AT ONE TEXAS CENTER, 505 BARTON SPRINGS ROAD. THIS IS A WORK SESSION OF THE COUNCIL. AND WE ARE IN THE THIRD FLOOR TRAINING ROOM AND WE HAVE THREE BRIEFINGS, THEN WE HAVE ONE EXECUTIVE SESSION ITEM, PRIVATE CONSULTATION WITH THE ATTORNEY. WE ARE NOT GOING TO GO INTO THAT EXECUTIVE SESSION UNTIL LATER. THE CITY MANAGER REQUESTED ON THE BRIEFINGS THAT WE START WITH NUMBER 3, WHICH IS THE ECONOMIC AND BUDGET UPDATE AND DISCUSSION OF TAX ANTICIPATION NOTE FOR REVENUE SHORTFALLS AND INCREASED COSTS FOR PUBLIC SAFETY AND HEALTH SERVICES. WE ALSO HAVE THE DEPARTMENT OF AVIATION BRIEFING ON THE AUSTIN BERGSTROM INTERNATIONAL AIRPORT. NUMBER 2 IS A BRIEFING ON THE EAST SEVENTH STREET CORRIDOR STUDY. SO UNLESS THERE'S OBJECTIONS, WE WILL GO TO ITEM NO. 3 FIRST. AND START THERE. MR. CITY MANAGER?

GARZA: MAYOR, COUNCIL, I JUST WANTED TO MAKE A COUPLE OF BRIEF INTRODUCTORY COMMENTS, BECAUSE I THINK IT WOULD BE USEFUL TO HAVE SOME HISTORY WITH RESPECT TO WHAT WE ARE TRYING TO ACCOMPLISH WITH THE TAX ANTICIPATION NOTE THAT IS -- THAT IS DISTINCT FROM WHAT WAS DONE IN THE LATE '80'S IN THE EARLY '90'S DURING THE LAST ECONOMIC RECESSION. IF YOU WILL RECALL BACK THEN THE COUNCILS THEN FACED SOME VERY DIFFICULT CHOICES AS WELL. THE ECONOMY HAD SLOWED, OFFICE SPACE WAS ABUNDANT IN THE DOWNTOWN AREA, PROPERTY VALUES ARE PLUMB NETTING. -- OWE PLUMMETING. THE COUNCIL CHOICED TO ADOPT BUDGETS AT UNDER THE EFFECTIVE RATE, VIRTUALLY A TAX CUT, ON THE HOPES THAT THOSE TAX CUTS WOULD HELP STIMULATE THE ECONOMY AND AN ECONOMIC EXPANSION. WHAT IN FACT HAPPENED WAS THE ECONOMIC EXPANSION WASN'T DRIVEN BY THE TAX RATE, BUT BY OTHER FACTORS THAT WILL REALLY BEYOND A LOCAL GOVERNMENT'S CONTROL. BUT WHAT HAPPENED TO US WAS THAT WE SUFFERED IMMENSELY. SOME VERY BASIC SERVICES IN THIS CITY. WE SUFFERED IMMENSELY IN TERMS OF OUR PARK SERVICE, IN TERMS OF OUR LIBRARY SERVICE, AND IN TERMS OF PUBLIC SAFETY. I REMEMBER COMING BACK TO THE CITY IN 1993, THIS -- WE WERE JUST ABOUT TO COME OUT OF THE [INAUDIBLE], WE HAD GANG VIOLENCE, WE HAD NEIGHBORHOODS THAT WERE NOT SAFE, WE HAD THE WHOLESOME ATMOSPHERE THAT AUSTIN HAD SO MUCH ENJOYED HAD GONE AWAY. IT PUT US IN A VERY, VERY DIFFICULT MODE WITH RESPECT TO BUDGET. IT TOOK US SEVERAL -- I WAS APPOINTED IN '94. IT TOOK US SEVERAL BUDGETS, AND WE STILL AREN'T WHERE WE NEEDED TO BE AND WHERE WE WERE IN THE EARLY '80'S, IN THE MID '80'S IN SOME OF THOSE DEPARTMENTS BECAUSE WE DID NOT, AS A STAFF, TAKE A STRONG ENOUGH POSITION ABOUT WHAT WE NEEDED TO DO WITH RESPECT TO THE TAXES AND THE MOPE THAT WE COLLECTED. JOHN AND RUDY HAVE VERY APTLY INDICATED TO THE COUNCIL THE PROBLEM THAT WE HAVE BETWEEN THE INCOME THAT WE ARE RECEIVING AND THE EXPENDITURE RATE AT WHICH WE ARE FORECASTING TO INCREASE. AND IT'S A SIGNIFICANT GAP. THERE'S SEVERAL THINGS THAT ARE GOING TO HAVE TO BE DONE FOR THE LONG TERM. THAT IS YOU ARE GOING TO HAVE -- WE ARE GOING TO HAVE TO ADJUST THE EXPENDITURE RATE OF GROWTH AND WE ARE GOING TO HAVE TO INCREASE THE REVENUE GROWTH. THOSE ARE TWO FUNDAMENTAL THINGS THAT NEED TO BE DONE TO ENSURE THE HEALTH OF SOME -- OF KEY DEPARTMENTS. THE TAX ANTICIPATION NOTE IS JUST THE OPPOSITE OF WHAT HAPPENED IN THE '80'S NRKS THE LATE '8-- IN THE LATE '80'S AND EARLY '90'S. IT WILL SET THE COUNCIL UP JUST NOT FOR THE 03 BUDGET, SOME POSITIVE EFFECTS, BUT NOT AS SIGNIFICANT AS IT WILL HAVE FOR YOU IN '04. IT'S A LONG-TERM DECISION, A DECISION THAT'S THE ABSOLUTE OPPOSITE OF WHAT HAPPENED, ONE THAT WE STRONGLY RECOMMEND. AS WE START LOOKING THROUGH THE CHOICES THAT YOU HAVE AS YOU PREPARE THE '03 BUDGET, AS YOU ARE GOING TO HAVE TO DECIDE IN THE '04 BUDGET, THE CHOICES ARE EXTREMELY DIFFICULT. WE UNDERSTAND THIS ISN'T EASY. WE UNDERSTAND THERE'S A LOT OF CONCERNS ABOUT THIS. BUT IN THE END I THINK IT IS THE ONE THAT WE WOULD RECOMMEND TO YOU, WE DON'T RECOMMEND IT LIGHTLY. WE RECOMMEND IT BECAUSE WE THINK IT SETS THIS COUNCIL UP, FOR NOT JUST THIS BUDGET, FOR THE THINGS THAT WOULD HAPPEN POST SEPTEMBER 11TH, BUT ALSO THE ECONOMIC DOLL DRUMS THAT -- DOLDRUMS THAT WE ARE IN THE MIDST OF. HOPEFULLY IN AN 18-MONTH PERIOD WE WILL BE COMING OUT OF THIS RECESSION, THE COUNCIL WILL BE ABLE TO ASSURE THAT THERE IS CONTINUED INVESTMENT IN PARKS PROGRAMS, IN OUR LIBRARY PROGRAMS, WHICH ARE THE BACKBONE OF THE SOCIAL FABRIC WHICH MANY OF YOU HAVE TALKED ABOUT DURING THE MIDDLE '90'S WHEN WE ARE TRYING TO COME OUT OF THAT VERY DIFFICULT PERIOD. WITH THAT AS AN INTRODUCTION, LET ME TURN IT OVER TO JOHN AND TOBY AND RUDY, SO THAT THEY CAN PRESENT TO YOU THE -- THE NOTE AND WHAT WE WOULD SPEND THOSE DOLLARS ON.

MAYOR GARCIA: LET ME SAY SOMETHING BEFORE THEY START. WHEN YOU SAY IT SETS UP THE COUNCIL, THAT'S IN A POSITIVE WAY. [ LAUGHTER ]. NOT A NEGATIVE --

GARZA: THAT'S EXACTLY RIGHT. RIGHT.

MAYOR GARCIA: IT'S NOT SETTING UP THE COUNCIL FOR FAILURE. IT'S PREPARING US FOR WHAT'S GOING TO HAPPEN IN THE YEARS '03 AND '04.

I'M SORRY, THAT'S EXACTLY WHAT I MEANT.

RATHER THAN SETTING THE STAGE HERE OR SETTING UP THE COUNCIL HERE, LET ME TRY TO PUT THE DISCUSSION IN SOME CONTEXT. A LARGE PART OF THE TAX ANTICIPATION NOTE IS TIED TO HOMELAND DEFENSE. SEPTEMBER 11TH PERMANENTLY CHANGED THE LANDSCAPE OF ALL OF OUR LIVES. THIS IS PARTICULARLY TRUE FOR LOCAL GOVERNMENTS. IT WAS LOCAL GOVERNMENT THAT PROVIDED THIS NATION'S FIRST RESPONSE TO TERRORISM AND CONTINUES TO SHOULDER MOST OF THE BURDEN FOR SECURING OUR COMMUNITIES. AUSTIN, LIKE ALL OTHER CITIES, IS NOW DEALING WITH THE AFTERMATH OF STRAINED PUBLIC SAFETY AND PUBLIC HEALTH RESOURCES, AS WELL AS SIGNIFICANT UNFORESEEN COSTS. CITIES COAST TO COAST ARE CONSIDERING PLANS FOR PROGRAM CUTBACKS, LAYOFFS AND INCREASED TAXES TO COVER THESE COSTS. THE MAYOR OF HOUSTON FORECASTED MAJOR SERVICE CUTS AND NO NEW INITIATIVES IN HIS RECENT STATE OF THE CITY ADDRESS SEVERAL WEEKS AGO. THIS WEEK, DALLAS ANNOUNCED THE POTENTIAL LAYOFF OF NEARLY 200 EMPLOYEES BY APRIL 1ST OF THIS YEAR. AS WELL AS SERVICE REDUCTIONS AND THE ELIMINATION OF PLANNED CAPITAL EXPENDITURES. WE ARE NOT UNIQUE. WE ARE STRUGGLING WITH THE SAME STRUGGLE CITIES ALL AROUND THE COUNTRY ARE. BUT WE ARE FORTUNATE. BECAUSE AUSTIN BEGAN COST SAVING MEASURES EARLY IN THE FISCAL YEAR, WE ARE NOT ANTICIPATING DRASTIC MEASURES THIS YEAR. SUCH AS LAYOFFS OR PROGRAM ELIMINATIONS. HOWEVER, WE MUST DO EVERYTHING POSSIBLE NOW TO POSITION OURSELVES FOR WHAT PROMISES TO BE A VERY TOUGH BUDGET YEAR IN 2003. WE WERE ASKED ABOUT FEDERAL AID AT OUR LAST PRESENTATION TO YOU. ALTHOUGH THE FEDERAL GOVERNMENT IS PROMISING RELIEF, OVER 50 BILLS ARE CURRENTLY PENDING, LITTLE IS EXPECTED TO TRICKLE DOWN TO LOCAL GOVERNMENTS IN THE NEXT 12 TO 18 MONTHS. WHAT DOES TRICKLE DOWN MAY ALSO BE LIMITED IN HOW WE CAN USE THAT MONEY. THE -- THE FUNDING FOCUS SEEMS TO BE ON MEDICAL AND PERSONAL PROTECTION EQUIPMENT. AND ALTHOUGH THAT IS AN IMPORTANT PART OF OUR HOMELAND DEFENSE, IT IS NOT THE MOST COSTLY PART. LITTLE APPEARS TO BE AVAILABLE FOR THE MORE COSTLY OVERTIME, PERSONNEL AND EMERGENCY CAPITAL EXPENDITURES THAT ALL CITIES ARE FACING. OUR INTERGOVERNMENTAL RELATION STAFF CONTINUES TO MONITOR ALL GRANT AND FEDERAL FUNDING OPPORTUNITIES AND TO LOBBY FOR DIRECT RELIEF TO LOCAL GOVERNMENTS. EVERY EVENING ON MY E-MAIL SYSTEM, THERE'S ANOTHER GRANT OPPORTUNITY WE ARE EXPLORING OR WE ARE CHECKING OUT. ONE OF THE BEST BETS FOR CITIES RIGHT NOW HAPPENS TO BE SENATOR CLINTON'S PENDING SENATE BILL 1737. THIS BILL IS BEING HEAVILY SUPPORTED BY THE NATIONAL LEAGUE OF CITIES AND THE U.S. CONFERENCE OF MAYORS AND PROPOSES TO MAKE $3 BILLION AVAILABLE, THIS IS IMPORTANT, THROUGH DIRECT BLOCK GRANTS TO CITIES. ELIGIBLE COSTS ALSO INCLUDE MUCH NEEDED FUNDING FOR PUBLIC SAFETY AND PUBLIC HEALTH PERSONNEL AND WILL BE ALLOWED TO BE USED FOR OVERTIME. IT IS ONE OF THE VERY FEW BILLS OUT THERE THAT ALLOWS THIS. FOR EXAMPLE, LET'S TAKE A LOOK AT BUSH'S PROPOSED $38 BILLION IN 2003 HOMELAND DEFENSE FUNDS. IT APPEARS THAT ONLY 3.5 BILLION IS TARGETED FOR SHARED STATE AND LOCAL RELIEF. IT IS NOT PROPOSED FOR OVERTIME OR FOR PERSONNEL. MOST OF THE FUNDING IS PROPOSED FOR NATIONAL OBJECTIVES. THESE ARE VERY IMPORTANT, BUT THEY ARE NOT GOING TO BE PROVIDING THE RELIEF THAT WE ARE LOOKING FOR. THESE NATIONAL OBJECTIVES INCLUDE THINGS LIKE FOOD SAFETY PROTECTION, BORDER AND PORT SECURITY, NATIONAL PHARMACEUTICAL STOCKPILES AND BIO TERROR RESEARCH. BUT ONCE AGAIN, AUSTIN IS UNIQUE. EVEN CHALLENGED IN THE DARK HOURS AFTER SEPTEMBER 11TH, THE CITY OF AUSTIN'S PREPAREDNESS WAS A BRIGHT LIGHT. WE WERE PRESENTLY RANKED AS ONE OF ONLY TWO MAJOR CITIES IN TEXAS THAT WAS WELL PREPARED TO RESPOND TO POTENTIAL DISASTERS AND TERRORIST ATTACKS. ONLY ONE OF TWO MAJOR CITIES IN TEXAS. IN FACT, AUSTIN WAS ONE OF ONLY 12 MAJOR CITIES IN THE ENTIRE UNITED STATES THAT WAS RANKED AS BEING WELL PREPARED. BUT SUCH A RANKING RELIES ON OUR VIGILANCE, VIGILANT SUSTAINED EFFORTS TO FUND, PLAN AND PREPARE. THIS COMMUNITY SHOULD BE EXTRAORDINARILY PROUD OF OUR PREAND POST -- PRE AND POST SEPTEMBER 11TH ACTIVITIES. WE BEGAN PREPARING FOR THIS TYPE OF POSSIBILITY 20 YEARS AGO. THE CITY OF AUSTIN PARTICIPATE UNDERSTAND DEPARTMENT OF JUSTICE AND F.B.I. SPONSORED TERRORISM PLANNING SINCE THE 1980'S. OVER THE LAST FIVE YEARS, WE STEPPED UP OUR EFFORTS SPONSORING COLLABORATIVE, COMPREHENSIVE, AUSTIN AREA TERRORISM PLANNING. SO IMMEDIATELY AFTER SEPTEMBER 11TH, THE EXECUTIVE TEAM FROM PUBLIC SAFETY AND PUBLIC HEALTH MET DAILY TO COORDINATE AND IMPLEMENT OUR COMMUNITY RESPONSE. WE HAVE RESPONDED TO APPROXIMATELY 700 POTENTIAL TERRORIST THREATS RANGING FROM BOMB SCARES TO BIOLOGICAL THREATS. 700. ADDITIONALLY, THIS TEAM, MEETING REGULARLY, IDENTIFIED, PRIORITIZED, TO FILL CRITICAL GAPS IN SECURITY AND RESOURCES. THIS TEAM CONFERRED AND COLLABORATED WITH AUSTIN AREA HOSPITALS AND THE LOCAL, STATE AND FEDERAL MEDICAL COMMUNITY. THE TEAM PROVIDED ENHANCED PUBLIC EDUCATION AND INFORMATION TO THE CITIZENS. AND IT DEVELOPED BIO TERRORISM TRAINING MODULES NOT JUST FOR OUR PUBLIC SAFETY AND PUBLIC HEALTH FIRST RESPONDSERS, BUT THOSE AROUND US IN SURROUNDING JURISDICTIONS AND COMMUNITY HEALTH CARE PROVIDERS. THE EXECUTIVE TEAMWORKED VERY HARD TO PRODUCE A SCRUBBED AND PRIORITIZED LIST OF EMERGENCY PURCHASES AND RESOURCES. WHAT WE ARE PRESENTING IN FRONT OF YOU IS NOT A WISH LIST. IT HAS BEEN CUT BY OVER 50% WITH JOINT DECISIONS BETWEEN ALL FOUR MAJOR DEPARTMENTS. FIRST, FOR THESE NEW PRIORITIES, WE LOOK TO ALL AVAILABLE EXISTING FUNDING. WE DIDN'T COME IMMEDIATELY TO THE TABLE AND ASK TO FIND ADDITIONAL DOLLARS. TO DATE, 13.8 MILLION DOLLARS, 13.8 MILLION DOLLARS HAS BEEN SPENT FOR PRIORITIZED HOMELAND DEFENSE NEEDS. INCLUDING 2.7 MILLION IN REALLOCATED FUNDS WITHIN THE POLICE AND FIRE DEPARTMENTS, THIS WENT FOR EQUIPMENT SUCH AS PERSONAL PROTECTION EQUIPMENT, BOMB DETECTION PROTECTION EQUIPMENT AND BIOLOGICAL AND CHEMICAL FIELD TESTING EQUIPMENT. AND AN ADDITIONAL 11.1 MILLION IN ENTERPRISE FUNDS, PRIMARILY FOR UTILITY SECURITY, INCLUDING 2.3 MILLION TO THE GENERAL FUND FROM THE UTILITIES FOR 17 NEW POLICE OFFICERS. NOW, AFTER WE HAD LOOKED, SCRUBBED THE LIST, LOOKED FOR ALL AVAILABLE FUNDING, WHAT WE ARE LEFT WITH IS 5.2 MILLION IN UNFUNDED HOMELAND DEFENSE COSTS. I'M GOING TO BREAK THIS OUT FOR YOU TWO DIFFERENT WAYS. FIRST BY RECURRING VERSUS ONE TIME COSTS, AND THEN BY SUNK OR DISCRETIONARY COSTS. OF THE 5.2 MILLION, 2.4 IS IN RECURRING COSTS. AND 2.8 IS IN ONE-TIME COSTS. NOW, FLIP IT AND LOOK AT IN TERMS OF WHAT WE HAVE ALREADY SPENT AND WHAT WE THINK WE NEED TO SPEND. OF THE 5.2 MILLION, 3.6 IS IN SUNK COSTS AND 1.6 IS IN DISCRETIONARY OR NEW EXPENDITURES. NOW, THIS POINT IS IMPORTANT. IT IS IMPORTANT TO UNDERSTAND THAT 3.6 MILLION OF THE 5.2 IS A SUNK COST. THIS IS RELATED TO THE FACT THAT WE LOST 1.5 MILLION IN COPS GRANTS, THIS MONEY WENT DIRECTLY TO NEW YORK CITY. OVERTIME AND TRAINING ALREADY EXPENDED OR REASONABLY EXPECTED TO BE EXPENDED. AND THE COST OF AN EXPEDITED CADET CLASS TO TRY TO MOVE MORE POLICE OFFICERS OUT ON TO THE STREET IN A TIME WE WERE HAVING TO GREATLY INCREASE OUR SECURITY PRESENCE AND COMMUNITY. ONLY 1.6 MILLION OF THE 5.2 MILLION IS A NEW OR DISCRETIONARY COST. AND THAT 1.6 RELATES TO 2 PRIMARY THING. THE CREATION OF A 24 HOUR, SEVEN DAY A WEEK DISEASE SURVEILLANCE CAPABILITY IN THIS COMMUNITY, I THINK THIS IS PROBABLY ONE OF YOUR MOST CRITICAL GAPS. AND THE REMAINING PUBLIC SAFETY CAPITAL EQUIPMENT PRIORITIES WITH SUPPORTING PERSONNEL. OUR HEALTH AND HUMAN SERVICES DIRECTOR, FIRE POLICE CHIEF, POLICE CHIEF ARE ALL HERE, WILL SPEAK DIRECTLY TO THE UNFUNDED 5.2 MILLION IN HOMELAND DEFENSE. BEFORE I TURN IT OVER, AT THE RISK OF DEEPLY EMBARRASSING OUR CHIEF OF POLICE, I WOULD LIKE TO TAKE A POINT OF PERSONAL PRIVILEGE AND ACKNOWLEDGE A RECENT HONOR THAT OUR CHIEF OF POLICE STAN KNEE RECENTLY RECEIVED. I DON'T KNOW IF ALL OF YOU ARE AWARE, BUT THE CHIEF WAS RECENT -- RECENTLY RECEIVED WHAT'S CALLED THE "HOPE AWARD." THIS IS DESIGNED TO RECOGNIZE HIS EFFORTS IN ENGAGING THE FAITH COMMUNITY WITH THE POLICE DEPARTMENT AND HIS EFFORTS ON BEHALF OF RACIAL RECONCILIATION. ONE OF THE THINGS THAT STRUCK ME THE MOST WAS THIS IS THE FIRST TIME A LAW ENFORCEMENT OFFICIAL HAS RECEIVED THIS AWARD. WITH THE AWARD, AND HE'S PROBABLY GOING TO BE FEELING ACKNOWLEDGE COCKY TODAY WHEN HE COMES UP HERE, CAME A PROCLAMATION FROM THE PRESIDENT OF THE UNITED STATES RECOGNIZING CHIEF KNEE'S, I WILL QUOTE, REMARKABLE LEADERSHIP IN FIGHTING PREJUDICE AS WELL AS CRIME. I THINK THAT'S SOMETHING FOR US ALL TO BE VERY, VERY PROUD OF. AS A VERY TOUGH ACT TO FOLLOW, I'M GOING TO TURN THIS OVER TO DAVID LOWRY, DIRECTOR OF HEALTH AND HUMAN SERVICES, HE'S GOING TO WALK YOU THROUGH OUR REQUEST TO CREATE A 24 HOUR, 7 DAY A WEEK DISEASE SURVEILLANCE AREA.

MAYOR GARCIA: IF 2.8 IS RECURRING -- OTHER WAY AROUND.

2.4 RECURRING, PRIMARILY SALARIES AND OVERTIME, 2.8 IS ONE-TIME COSTS. THE LOSS OF THE COPS GRANT, AND HE INDICTEDED CADET CLASS AND THE NEW EQUIPMENT AND CAPITAL.

MAYOR GARCIA: WHEN YOU TALK ABOUT RECURRING, DOES THAT MEAN THAT THE '03 IS GOING TO HAVE THIS.

FUTRELL: YES, IT DOES. THERE'S AN INCREMENTAL COST THAT WILL FOLLOW THROUGH YEAR AFTER YEAR ON THIS. SALARIES AND OVERTIME I BELIEVE ARE SOMETHING THAT YOU ARE GOING TO SEE RECURRING AS WE MOVE FORWARD WITH HOMELAND DEFENSE.

MAYOR GARCIA: THAT'S SOMETHING THAT THE BILLS DON'T COVER, FEDERAL BILLS DON'T COVER.

FUTRELL: IRONICALLY, CITIES ALL AROUND THE COUNTRY, BIGGEST EXPENSE, PERSON THEM AND SALARIES, PARTICULARLY OVERTIME. AND OVERTIME IS ONE OF THE THINGS MOST ALL THE BILLS WILL NOT COVER.

MAYOR GARCIA: HOW DO WE KNOW THAT WE NEED TO SPEND THIS MONEY YEAR IN, YEAR OUT, WHETHER THE SITUATION IMPROVES OR THERE IS SOME SIGN -- YOU KNOW, I UNDERSTAND AT THE PRESENT TIME THAT -- THE FEELING IS THAT -- THAT FOR QUITE A WHILE WE ARE NOT GOING TO HAVE ANY IMPROVEMENT IN THE WORLDWIDE SITUATION. BUT AT WHAT POINT, YOU KNOW, DO WE NEED TO -- TO THINK ABOUT THIS THING DOESN'T NEED TO BE IN THE BUDGET, IS IT '05 OR '06 OR DO WE KNOW.

WHAT CAN I TELL YOU, I THINK THIS IS THE GREAT UNKNOWN. WHAT I CAN TELL YOU IS IN THE SHORT TERM IT'S A PRETTY SURE BET THESE ARE GOING TO BE RECURRING COSTS. LONG TERM, I CERTAINLY HOPE, I THINK ALL AMERICANS HOPE, THIS IS NOT GOING TO BE OUR WORLD MOVING LONG-TERM INTO THE FUTURE. ONE OF THE THINGS THAT THE CHIEFLY TALK TO YOU ABOUT IN HIS PRESENTATION ARE THE NUMBER OF ALERTS THAT WE HAVE RECEIVED THAT REQUIRE US TO GO ON TO HEIGHTENED AND EXPANDED PATROL STAFFING. THE FACT THAT OUR UTILITY SECURITY IS -- HAS TO CHANGE FROM WHAT IT WAS A YEAR AGO. THE MOST RECENT NEWSLETTER COMING FROM THE WHITE HOUSE AND F.B.I. LISTED RECENT MATERIAL THAT SHOWED A PLAN -- PLANS THAT COULD CAUSE SECURITY CONCERNS WITH THE UTILITIES AROUND THE COUNTRY. NOT JUST NUCLEAR POWER PLANTS, BUT WATER TREATMENT PLANTS AND OTHER UTILITIES. SO -- SO THE SECURITY COMPONENT, THE HEIGHTENED ALERT, THAT HAS BEEN ONGOING. EVEN THOUGH IT HASN'T BEEN ON THE PAPER EVERY DAY AS WAS ORIGINALLY DRIVEN IN AFTER 9-11, THOSE KIND OF ALERTS AND CALLS ARE STILL COMING IN ON A FAIRLY REGULAR BASIS TO US.

ALVAREZ: MAYOR?

MAYOR GARCIA: COUNCILMEMBER ALVAREZ?

ALVAREZ: I GUESS -- YES, TOBY, ON THE ISSUE OF LIKE HOW MUCH WE HAVE -- WE ARE SPENDING OVERALL ON HOMELAND SECURITY, YOU MENTIONED THE 13.8 MILLION DOLLAR FIGURE. IS THIS 5.2 PART OF THAT OR HAS THAT 13.8 ALREADY BEEN SPENT.

> ALREADY BEEN SPENT.

WITH EXISTING FUNDS OR OTHER SOURCES OF REYOU.

NEW?

FUTRELL: I WANTED TO BE SURE TO LET YOU KNOW THAT IS WHAT'S IMPORTANT TO ME IS TO LET YOU UNDERSTAND THAT WE LOOKED FIRST INSIDE OUR OWN BUDGET, WHAT WE COULD REALLOCATE, MOVE AROUND, HOW WE COULD FUND IMMEDIATELY THE THINGS THAT HAD TO HAPPEN. A LARGE COMPONENT OF THAT HAS COME FROM THE UTILITIES. OF THE 13.8, 11.1 MILLION HAS BEEN SPENT BY OUR UTILITIES TO SECURE THEIR FACILITY PLANTS AS WELL AS 27.3 MILLION THAT WENT TO THE GENERAL FUND TO GIVE US 17 NEW OFFICERS TO PUT OUT ON THE STREET AND TO HELP WITH THOSE FACILITY SECURITY NEEDS. 2.7 MILLION WAS REALLOCATED WITHIN THE PUBLIC SAFETY DEPARTMENTS. THEY LOOKED INSIDE THEIR DEPARTMENTS AND LOOKED TO SEE WHAT THEY COULD DO WITHOUT IN ORDER TO FUND THESE NEW AND UNFORESEEN PRIORITIES. THE 5.2 IS WHAT'S LEFT AND IS THE HOMELAND DEFENSE COMPONENT OF THE 8 MILLION DOLLARS THAT YOU HAVE IN FRONT OF YOU TODAY.

SO THAT -- THAT WAS MY OTHER QUESTION. OF THE 8.5 TRYING TO FUND THROUGH THE TAX ANTICIPATION NOTE, THEN 5.2 IS THIS HOMELAND SECURITY AND THE REST --

FUTRELL: YES. MAKING UP YOUR SALES SACKS SHORTFALL.

ALVAREZ: OKAY, THANK YOU.

THOMAS: MAYOR?

MAYOR GARCIA: COUNCILMEMBER THOMAS.

THOMAS: ALL THROUGH YOUR PRESENTATION, I CAN SEE WHERE FEDERAL GOVERNMENT ON THE COP GRANT WAS TAKEN FROM US, WHEN -- IS IT IN THE NEAR FUTURE THAT SINCE THEY TOOK THE 1.5, ARE THEY GOING TO DOUBLE IT BACK WHEN THEY OPEN IT BACK UP? AND WHEN IS -- DO WE HAVE ANY IDEA WHAT THE FEDS WILL -- WHEN THE FEDS WILL OPEN UP THE COP GRANT AGAIN?

FUTRELL: NO. THERE IS EVEN SOME QUESTION ABOUT WHETHER IT WILL BE OPENED BACK UP. I THINK THE FEDERAL GOVERNMENT RIGHT NOW, AND AS YOU CAN IMAGINE 50 DIFFERENT PROPOSALS PENDING IN FRONT OF THEM RIGHT NOW, ARE LOOKING AT WHETHER THEY ARE GOING TO SHIFT AROUND, WHAT THEY ARE FUNDING AND WHAT THEY ARE NOT FUNDING. IT IS POSSIBLE THAT WE MAY NOT RECEIVE ADDITIONAL COP GRANT FUNDS. I CERTAINLY WOULD THINK THAT WE WOULD NOT RECOUP THE 1.5 THAT WE HAVE LOST. WE ARE LOOKING AT THAT AS SOMETHING THAT WE WILL NOT --

GARZA: COUNCILMEMBER WYNN. WHEN THEY ANNOUNCED THIS SUMMER PRIOR TO -- OBVIOUSLY TO SEPTEMBER 11TH, THEY HAD ALREADY TARGETED THAT PROGRAM FOR -- FOR ELIMINATION OR SEVERELY REDUCED FUNDING.

REDUCTION.

GARZA: ALL SEPTEMBER 11TH DID WAS MOVE UP -- IT EXPEDITED THE CURVE. BUT I THINK THAT PROGRAM WAS ON ITS WAY TO -- TO MAJOR REDUCTIONS AS PART OF THE NEW ADMINISTRATION. IT WASN'T SOMETHING THAT THEY WERE GOING TO PUT A LOT OF EMPHASIS ON. SO I DON'T THINK --

FUTRELL: THAT'S AN IMPORTANT POINT.

GARZA: I THINK THAT WE MAY GET ONE MORE YEAR BUT THAT WOULD BE IT. WE WERE GOING TO HAVE TO PICK UP THE FULL COST OF ALL OF THE OFFICERS THAT HAD BEEN BROUGHT IN TO DO THAT PROGRAM.

FUTRELL: NOT ONLY WILL THEY CLEARLY BEGINNING TO PHASE IT OUT, I THINK WE ALSO WERE EXPECTED A REDUCED AMOUNT FROM WHAT WE HAD GOTTEN IN YEARS PAST. SO IT'S A LIKELIHOOD THAT WE WILL NOT RECEIVE COP GRANT FUNDS, BUT WE ARE OF COURSE, HOPING THAT OTHER KINDS OF FUNDS WILL FILTER DOWN TO THE LOCAL LEVEL THAT WILL HELP US WITH PERSONNEL AND OVERTIME. MAYBE NOT IN THE FORM OF COP GRANTS.

THOMAS: THAT WAS THE SECOND PART OF THE QUESTION, BUT YOU ANSWERED IT. THANK YOU. DAVID, YOU ARE UP.

THANKS, TOBY.

MAYOR, COUNCILMEMBERS, GOOD MORNING, I'M DAVID LOURIE WITH THE HEALTH AND HUMAN SERVICES DEPARTMENT. I WANTED TO TALK A FEW MOMENTS ABOUT THE PORTION OF THIS PACKAGE THAT RELATES TO PUBLIC HEALTH. IT'S APPROXIMATELY $2 10,000, IT'S RELATE -- $210,000, RELATED TO THE DISEASE SURVEILLANCE PROGRAM. THIS IS A PROGRAM PROBABLY A LOT OF PEOPLE AREN'T AWARE OF. PEOPLE THAT WORK IN THIS PROGRAM WORK VERY QUIETLY BEHIND THE SCENES AND PROTECT ALL OF US FROM INFECTIOUS DISEASES. AS INDICATED ON THE FIRST SLIDE HERE, THE PURPOSE OF THE DISEASE SURVEILLANCE PROGRAM IS TO DEDUCT, MONITOR AND INVESTIGATE AND PREVENT THE SPREAD OF DISEASES, WHAT WE ARE FINDING PARTICULARLY WITH THE RECENT ANTHRAX EPISODES, FOR EXAMPLE, AND HEIGHTENED CONCERN ABOUT BIO TERRORISM, THAT IN MANY CASES, IF NOT MOST CASES, IF THERE WERE TO BE A BIO TERRORIST TYPE OF EVENT, THIS WOULD MOST LIKELY BE DETECTED THROUGH THE DISEASE SURVEILLANCE PROGRAM IN TERMS OF INDIVIDUALS BECOMING ILL, PRESENTING WITH CERTAIN SYMPTOMS OR CONDITIONS. THEN THROUGH THE MONITORING AND TRACKING OF THIS PROGRAM WE IDENTIFY THOSE UNUSUAL CONDITIONS AND -- AND MOBILIZE RESOURCES IN THE COMMUNITY TO INTERVENE AND PREVENT FURTHER TRANSMISSION OF DISEASE IN OUR COMMUNITY. THE CURRENT SYSTEM OF DETECTION IS POSSIBLE THROUGH THE REPORTING OF INFECTIOUS DISEASES BY HEALTH CARE PROVIDERS IN OUR COMMUNITY. PHYSICIANS, HOSPITALS, LABORATORIES, AND OTHERS. THE MONITORING PART IS THE FACT THAT WE MAINTAIN DATA AND INFORMATION REGARDING ALL OF THESE REPORTS, WE LOOK FOR AGAIN AS I SAID UNUSUAL CONDITIONS, TRENDS OR PATTERNS. AND VERY QUICKLY RESPOND TO THOSE. THERE'S ALSO A STATE-WIDE HEALTH ALERT NETWORK THAT'S BEEN DEVELOPED, TEXAS ASSOCIATION OF HEALTH OFFICIALS, TEXAS DEPARTMENT OF HEALTH, WHEREBY WE CAN TRACK INFECTIOUS DISEASES ON A STATE-WIDE BASIS AND DETERMINE IF THERE ARE BEGIN PATTERNS OUT THERE THAT MAY BE POTENTIALLY AFFECTING OUR COMMUNITY. THEN BEYOND THAT, OF COURSE, THERE'S THE FEDERAL SYSTEM THROUGH THE CENTERS OF DISEASE CONTROL AND PREVENTION, WE RECEIVE REGULAR UPDATES IN TERMS OF REPORTABLE DISEASES NATIONWIDE. SO THE INVESTIGATION COMPONENT IS PEOPLE WILL GO OUT IN THE FIELD, INTERVIEW PEOPLE, FOLLOW UP ON POSSIBLE CONTACTS, IDENTIFY IF THERE MIGHT BE AGENTS IN THE ENVIRONMENT, THAT PEOPLE ARE BEING EXPOSED TO, TAKE VERY QUICK CORRECTIVE ACTION. AND THEN FINALLY, AGAIN, THE PREVENTIVE MEASURE TO PUT IN PLACE CONTROLS, AGAIN, SPECIFIC SITUATION OR COMMUNITY TO CONTROL THOSE INFECTIOUS DISEASES. THE NEXT SLIDE OUTLINES THE -- THE REQUEST RELATIVE TO THIS PROGRAM. AS YOU CAN SEE, IT INCLUDES THREE F.T.E.'S, REGISTERED NURSE, WHO IS INVOLVED IN -- IN TRAINING, FOLLOWING UP ON SUSPECTED CASES AND IMPLEMENTING CONTROL MEASURES. PUBLIC HEALTH PROGRAM SPECIALIST WHO WOULD HELP US MAINTAIN THE DATA BASE, TRACK LABORATORY REPORTS, INTEREST DATA AND -- ENTER DATA AND LSES ASSIST THE NURSING STAFF AND PROVIDE ADDITIONAL TRAINING AND SUPPORT, FINALLY THE ADMINISTRATIVE SUPPORT POSITION. ALSO WE HAVE OTHER EXPENSES ASSOCIATED WITH THIS PROGRAM. EQUIPMENT, MATERIALS, COMPUTERS FOR EXAMPLE, CELL PHONES, MEDICAL SUPPLIES, SOME LABORATORY SERVICES THAT WE WOULD BE CONTRACTING OUT WITH -- WITH PRIVATE LABORATORIES AND ALSO VERY IMPORTANTLY, AN ON CALL SYSTEM, FINANCING FOR ON CALL SO THAT WE CAN PROVIDE 24 HOUR ON CALL COVERAGE FOR THIS PROGRAM SEVEN DAYS A WEEK. AS TOBY POINTED OUT, THIS WOULD EXPAND THE CAPABILITY OF THIS PROGRAM, IT WOULD INCREASE THE HOURS WHICH WE HAVE STAFF AVAILABLE AT THE PHONES FOLLOWING UP THE REPORTS. BUT MOST IMPORTANTLY, IT WOULD CONVERT THIS PROGRAM, WHICH -- FROM WHAT IT'S CURRENTLY A PASSIVE SYSTEM, THAT IS WE ARE RELYING ON PEOPLE OUT IN THE COMMUNITY AND CONNECTED WITH THESE NETWORKS TO PROVIDE US WITH REPORTS. WHICH BY THE WAY IS THE STANDARD PUBLIC HEALTH PRACTICE THROUGHOUT THE COUNTRY. GIVEN THE RECENT EVENTS, HEIGHTENED CONCERN ABOUT BIO TERRORISM, I THINK AN OVERALL RECOGNITION, THE PUBLIC HEALTH INFRASTRUCTURE NEEDS TO BE ENHANCED, CONSISTENTLY. THERE'S A RECOMMENDATION THAT THESE DISEASE SURVEILLANCE PROGRAMS BE CONVERTED FROM WHAT HAS BEEN A RELATIVELY PASSIVE SYSTEM TO A VERY ACTIVE SYSTEM. SO WE WOULD HAVE STAFF, WHO WOULD GO OUT TO THE HOSPITALS, REVIEW INFORMATION, REPORTS WITHIN THE EMERGENCY DEPARTMENTS AND IDENTIFY POSSIBLE TRENDS, PATTERNS, DISEASES, INFECTIOUS DISEASE INCIDENTS THAT ARE OCCURRING WITHIN OUR COMMUNITY MUCH MORE QUICKLY THAN THE CURRENT PASSIVE SYSTEM PROVIDES FOR US. AS YOU PROBABLY KNOW, TIMELINESS IS REALLY CRITICAL IN THIS INSTANCE. IF WE CAN IDENTIFY THESE VERY EARLY ON, INTERVENE QUICKLY, WE CAN MAKE A TREMENDOUS DIFFERENCE, BOTH IN TERMS OF GETTING MEDICATION AND TREATMENT TO INDIVIDUALS WHO -- WHO ARE BECOMING ILL, HAVE BEEN EXPOSED, BUT ALSO TO -- TO PREVENT POTENTIAL EXPOSURE FOR OTHER INDIVIDUALS AND REALLY CONTAIN -- CONTAIN THESE DISEASES. THE OTHER THING THAT I WOULD LIKE TO EMPHASIZE, I THINK THAT IT GOES BACK TO YOUR QUESTION, MAYOR, IS THAT THIS ACTUALLY -- THIS PROPOSAL WOULD ENHANCE OUR PUBLIC HEALTH SYSTEM FOR ALL COMMUNABLE AND -- AND INFECTIOUS DISEASES, NOT ONLY RELATED TO BIO TERRORISM. THIS IS SOMETHING THAT WOULD REALLY STRENGTHEN OUR PUBLIC HEALTH SYSTEM AND MAKE US MUCH MORE EFFECTIVE ACROSS THE BOARD IN CONTAINING AND CONTROLLING INFECTIOUS DISEASES. THIS IS AN INVESTMENT THAT REDUCES OUR VULNERABILITY FROM A BIO TERRORISM PERSPECTIVE, BUT ALSO ENHANCES OUR CAPACITY AND OUR -- AND OUR CAPABILITY FOR PUBLIC HEALTH ACROSS THE BOARD. UNLESS THERE ARE QUESTIONS, I THINK THAT I'M GOING TO TURN IT OVER TO OUR FIRE CHIEF GARY WARREN --

MAYOR GARCIA: ARE THERE QUESTIONS? THANK YOU, MR. LOURIE.

GARZA: IF I COULD ASK THE DEPARTMENT THAT'S GOING TO FOLLOW GARY TO COME UP AND TAKE THE STOP WHERE DAVID JUST VACATED SO WE CAN MOVE THIS. NOT THAT I WANT TO RUSH YOU GUYS, BUT I THINK THIS IS THE SECOND TIME --

MAYOR GARCIA: WELCOME, CHIEF.

GOOD MORNING, MAYOR, COUNCIL. YOUR EMERGENCY SERVICE RESPONDERS HERE IN AUSTIN HAVE BEEN PREPARING FOR YEARS AND YEARS TO RESPOND TO TERRORIST ATTACKS, TO HAZARDOUS MATERIAL RELEASES, TO MASS CASUALTIES AND AS EACH OF THESE TYPE OF EVENTS WERE BEING PLANNED FOR, WE HAD TO START WITH BASICS, MAKE SURE THAT WE MASTERED THE BASICS, THEN WE HAD TO CONTEND WITH ALL OF THE SPECTRUM OF POSSIBILITIES THAT COULD COME FROM THE SMALLEST SCALE TO THE LARGEST SCALE. AND BECAUSE WE DON'T HAVE UNLIMITED FUNDS TO ADDRESS THESE ISSUES, THERE HAVE BEEN A LOT OF CAPABILITIES THAT WE HAVE PUT ON THE LONG-RANGE TRACK THAT WE HAVE EXPECTED OVERTIME THAT WE WOULD BE ABLE TO GAIN THESE CAPABILITY, SO WE WOULD HAVE FULL CAPABILITIES TO RESPOND TO THESE TYPE OF INCIDENTS. WHAT SEPTEMBER 11TH HAS DONE TO US IS MADE US UNDERSTAND THAT IT'S NO LONGER ACCEPTABLE FOR US TO WAIT OVER TIME FOR SOME OF THESE CAPABILITIES. THE EXTREMELY LARGE SCALE AND SCOPE OF THE EVENTS THAT HAPPENED IN NEW YORK CITY AND IN THE -- IN WASHINGTON D.C. HAS MADE US REALIZE THAT -- THAT OUR NEED IS IMMEDIATE, THERE ARE CAPABILITIES THAT WE DON'T HAVE FULL CAPABILITY OF, MONITORING FOR HAZARDOUS SUBSTANCES IS NOT TO THE DEGREE THAT WE WOULD LIKE TO HAVE IT NOW, IT'S NOT TO THE DEGREE THAT WE NEED IT TO RESPOND QUICKLY AND EFFECTIVELY TO ALL OF THESE THREATS THAT CAME BECAUSE IT WASN'T JUST THE DAY OF SEPTEMBER 11TH, BUT IT WAS FOR MONTHS AFTERWARD. THAT THE THREAT KEPT COMING AND COMING AND COMING. SO IT WASN'T AN ISOLATED EVENT. IT WAS A LONG-SCALE SIEGE THAT WE NEEDED TO RESPOND TO. WE WERE ABLE TO RESPOND BY -- BY PUTTING A LOT OF OUR PEOPLE TOGETHER AND SPECIAL TASK FORCES TO BE ABLE TO WORK AROUND THE CLOCK TO MAKE SURE THAT WE REMAIN PREPARED AND THAT WE GAVE THE PROPER RESPONSES. BUT FOR THIS -- FOR THESE THINGS THAT WE HAD BEEN WAITING TO BUILD UP OVER TIME, IT'S BECOME APPARENT THAT WE NEED TO DO THEM NOW. OUR ABILITY TO RESPOND TO MASS CASUALTIES OF 50 PEOPLE PLUS -- 50 PLUS PEOPLE NEEDS TO BE ENHANCED, OUR ABILITY TO SUPPORT OUR EMERGENCY RESPONDERS, NOT ONLY IN AUSTIN BUT THE CENTRAL TEXAS REGION. BECAUSE THE SCOPE OF THE EVENT MADE US REALIZE THAT ONE AGENCY IS NOT GOING TO BE ABLE TO HANDLE THESE THINGS BY THEMSELVES, OUR PLANNING NEEDS TO BE BIGGER, THE COORDINATION BETWEEN AGENCIES NEEDS TO BE BETTER OF THE. ALSO THE MONITORING FOR THE DIFFERENT SUBSTANCES THAT WE HAVE NEEDS TO ALSO BE EXTENDED BEYOND NUCLEAR CHEMICAL AND GO ALSO TO BIO HAZARDHAZARDS. BECAUSE OF THAT, THE AUSTIN FIRE DEPARTMENT HAS SOME EXPENDITURES, THE INCREASED OVERTIME COST, I THINK THAT'S TRUE FOR EVERY AGENCY THAT'S HAD TO BE ABLE TO ON RESPOND TO THESE THINGS, ALSO THIS SPECIAL TEAM THAT I PUT TOGETHER TO MAKE SURE THAT OUR PREPAREDNESS AS IT ITS BEST, ALSO MAKING SURE OF CHANGING POLICIES TO DEAL WITH THE CHANGING CONDITIONS, WE WOULD LIKE TO MAKE THAT PERMIT WHICH CONSIST -- PERMANENT, ONE DIVISION CHIEF, A CAPTAIN, TWO ADMINISTRATIVE ASSISTANTS AND AN ENERGY. THE VARIOUS EQUIPMENT HAS TO DO WITH MONITORING EQUIPMENT, THE DIFFERENT KINDS OF MONITORING EQUIPMENT THAT WE WERE PERFECTLY HAPPY TO WORK ON OVER TIME. BUT NO LONGER FEEL LIKE WE CAN WAIT FOR. SUCH AS SOMETHING TO DETECT ANTHRAX. SOMETHING THAT WE WERE MISSING OVER THE LAST FEW MONTHS THAT WE WOULD LIKE TO GAIN THE EXAIBT, 7 -- CAPABILITY AMONG OTHER THINGS. INCREASED OVERTIME COST IS SOMETHING THAT WE NEED TO TALK ABOUT AND BE ABLE TO DEAL WITH. MORE IMPORTANTLY, WE WANT TO HAVE A JOINT UNIT NOW. WE HAVE BEEN ABLE TO ADDRESS FAIRLY EFFECTIVELY THE CHEMICAL THREAT, THE NUCLEAR THREAT, THE BIO HAZARD THREAT, BUT ONE OF THE DID THREATS THAT WE ARE NOT ABLE TO BE -- BE COMPLETELY EFFECTIVE ON IS THEN WE HAVE STRUCTURAL COLLAPSE. THAT WOULD HAVE TO DO WITH BOMBING GOING OFF OR ANY OTHER KIND OF SABOTAGE TO A BUILDING OR STRUCTURE. OUR ABILITY TO LIFT HEAVY MEMBERS TO FREE TRAPPED VEHICLES OR LOCATE TRAPPED VICTIMS IS SOMEWHAT LIMITED RIGHT NOW. THIS IS SOMETHING THAT WE WERE WILLING TO WORK ON OVERTIME, BUT WE HAVE DECIDED NOW THAT THE NEED IS MORE URGENT AND VERY IMMEDIATE. AND TO THAT END, WE ARE PROPOSING TO HAVE A JOINT UNIT BETWEEN FIRE AND E.M.S., THAT WOULD BE CALLED A HEAVY RESCUE UNIT. THIS HEAVY RESCUE UNIT WILL CARRY EQUIPMENT THAT WILL ALLOW US TO RESPOND TO THESE KIND OF STRUCTURAL COLLAPSE AND THEN ALSO TO GIVE SUPPORT TO LARGE SCALE EMERGENCIES ANYWHERE IN THE COMMUNITY, WHETHER IT BE DUE TO TERRORISM OR STRUCTURE COLLAPSE OR ANYTHING ELSE. IT WOULD BE STAFFED BY 6 PEOPLE, THERE WOULD BE FOUR FIREFIGHTERS AND TWO PARAMEDICS. THAT'S THE JOINT USE PART OF IT. THEY WOULD BE ABLE TO RESPOND TO ALL MAJOR EVENTS IN THE CITY, INCLUDING STRUCTURE FIRES AND MASS CASUALTIES AND WOULD BE ABLE TO PROVIDE IMMEDIATE RELIEF NOT ONLY TO THE VICTIMS, BUT ALSO TO THE EMERGENCY RESPONDERS. THE CAPABILITIES OF THE UNIT WOULD BE THAT IT WOULD HAVE ENHANCED MONITORING EQUIPMENT AND THEN ALSO HEAVY RESCUE CAPABILITIES THAT WOULD ALLOW THEM TO LIFT HEAVY MEMBERS AND LOCATE VICTIMS THAT NEED RESCUING IMMEDIATELY INSTEAD OF HAVING TO WAIT THREE OR FOUR HOURS FOR CRANES TO BE BROUGHT IN TO ASSIST US AS A DEPARTMENT. THAT'S PRETTY MUCH MY PRESENT STAYING, IF YOU HAVE ANY QUESTIONS -- PRESENTATION, IF YOU HAVE ANY QUESTIONS, I WOULD BE GLAD TO ANSWER THEM.

WYNN: MAYOR, CHIEF, YOUR FINAL COMMENT THERE ABOUT WAITING THREE OR FOUR HOURS OR SO FOR CRANES TO BE BROUGHT IN. DO WE SOMEHOW KEEP AN INVENTORY FOR A PRIVATE SECTOR, A MOBILE -- MOBILE CRANES AND -- WITH ALL OF THE CONSTRUCTION GOING ON AROUND THE TOWN, THERE'S OBVIOUSLY A LOT OF EQUIPMENT IN THIS TOWN. HOW DO YOU ALL GO ABOUT, YOU KNOW, LOCATIONING AND TRYING TO BRING THE PRIVATE SECTOR YOUR AID ON SOME MASS --

WE HAVE A LISTING OF ALL OF THE DIFFERENT PEOPLE THAT HAVE HEAVY EQUIPMENT THAT'S AVAILABLE TO BE RENTED OR BROUGHT IN ON AN EMERGENCY BASIS. WE KNOW HOW TO GET AHOLD OF THEM. IT'S TRAVEL TIME AND BEING ABLE TO GET AHOLD OF PEOPLE IN THE MIDDLE OF THE NIGHT, BEING ABLE TO GET THE STUFF TRANSPORTED, CRANES, BULLDOZERS, TANKER TRUCKS, ANY OF THE KINDS OF THINGS THAT WE NEED IN ORDER TO TAKE CARE OF AN EMERGENCY. WE DO HAVE A LIST. THE PROBLEM IS THAT WE HAVE TO WAIT.

WE KEEP THAT LIST UPDATED, SEEMS TO ME AFTER SEPTEMBER 11TH THERE'S PROBABLY MORE OF A RECOGNITION IN THE PRIVATE SECTOR WITH ALL OF THE EQUIPMENT THAT WE HAVE IN TOWN, THERE ARE -- YOU KNOW, THEY COULD BE OF SOME ASSISTANCE, HOPEFULLY THERE'S A -- THERE'S A PARTICULAR FILE OR SOME ABILITY TO MAKE SURE THAT WE HAVE AS UP TO DATE OF A LIST OF POTENTIAL AID AS POSSIBLE.

RIGHT, THERE MAY BE MORE PEOPLE AVAILABLE, BUT WE DO KEEP AN UPDATED LIST BECAUSE WE ALMOST ALWAYS HAVE TO CALL ON THAT LIST AT LEAST ONCE A YEAR FOR SOME EMERGENCY IN THE CITY.

OKAY.

MAYOR GARCIA: FURTHER QUESTIONS FOR CHIEF WARREN? THANK YOU, CHIEF.

MAYOR AND COUNCILMEMBER, I'M RICHARD HARRINGTON, DIRECTOR OF AUSTIN TRAVIS COUNTY E.M.S. AS TOBY INDICATED THE EVENTS OF SEPTEMBER 11TH SIGNIFICANTLY CHANGED THE SCOPE OF DISASTER PLANNING AND TRAINING FOR ALL PUBLIC SAFETY AGENCIES. IT WAS MADE PAINFULLY CLEAR TO US THAT BUSINESS AS USUAL, AT LEAST IN THE IMMEDIATE FUTURE, WOULD NEVER BE THE SAME FOR US. ELM, AFTER DOING A THOROUGH REVIEW, WE IDENTIFIED FIVE YEARS THAT NEEDED IMPROVE. FIRST CREATION OF A DEDICATED TERRORISM DUTY OFFICERS. SECOND EXPAND OUR PERSONAL PROTECTION CAPABILITIES FOR ALL PUBLIC SAFETY OFFICERS ALONG WITH [INAUDIBLE] AND BIO HAZARD DETECTION EQUIPMENT. THIRD ACQUIRE INCREASED QUANTITIES OF MEDICAL EQUIPMENT, SUPPLIES, PHARMACEUTICALS. FOURTH COMMUNICATION CAPABILITIES NEEDED TO BE ENHANCED. FIFTH EXPANDED WEAPONS OF MASS DESTRUCTION TRAINING WAS NEEDED FOR ALL YOU REMEMBERED STAFF. SIMILAR TO WHAT FIRE DID ON CREATING THEIR WEAPONS OF MASS DESTRUCTION UNIT, ON SEPTEMBER 11TH 13TH E.M.S. REASSIGNED THE DUTIES OF TWO COMMANDERS TO -- WE WERE ABLE TO PURCHASE SOME OF THE [INAUDIBLE] PHARMACEUTICALS THROUGH A GRANT THAT THE CITY ALREADY APPROVED PRIOR TO SEPTEMBER 11TH AND THROUGH THE REALLOCATION OF SOME OF OUR EXISTING FUNDS. WHAT YOU SEE ON THE SLIDE BEFORE YOU WAS EQUIPMENT THAT COULD BE NOT ACQUIRED EITHER THROUGH THE GRANTS OR EXISTING E.M.S. FUNDS. FIRST TWO MASS CASUALTY TRAILERS. THESE ARE ENCLOSED PREPACKAGED TAYLORS THAT ALLOW US TO GET RAPIDLY MEDICAL EQUIPMENT AND SUPPLIES TO THE SCENE, MANAGE 50 TO 150 PATIENTS DEPENDING ON SEVERITY TEE OF INJURIES. PRESENTLY WE HAVE TO RELY ON THE MEDICAL SUPPLIES AVAILABLE IN EACH OF THE AMBULANCES AND FIRE TRUCKS TO HANDLE. IN CASE OF A LARGE EVENT THIS INVENTORY WOULD BE RAPIDLY DEPLETED. SIMILAR EMERGENCY EQUIPMENT SEEN ON THE SLIDE IS MOSTLY COMMUNICATIONS EQUIPMENT NEEDED TO ENSURE RELIABLE MOBILE COMMUNICATIONS FROM AN EVENT SITE. A RUGGED LAP TOP IS NEEDED TO ALLOW TERRORISM DATA BASE TO PROVIDE REAL TIME INFORMATION OF THE REGION'S HOSPITAL CAPACITY AND BED AVAILABILITY AND TO PROVIDE DIRECT COMMUNICATION WITH THE CITY'S AND STATE'S EMERGENCY OPERATION CENTERS. SATELLITE PHONES ARE NEEDED DUE TO THE UNRELIABILITY OF THE PHONE SYSTEMS DURING SIGNIFICANT EVENTS. A LESSON LEARNED IN OKLAHOMA AND IN NEW YORK CELL PHONE SYSTEMS ARE GUARANTIED TO FAIL. LOCALLY DURING THE NOVEMBER 15TH WEATHER EVENT, PHONES WERE VERY UNRELIABLE IN THE LOCAL AREA. THE REST OF THE COMMUNICATION EQUIPMENT IS THE OUTFIT THAT -- MOBILE RADIOS, MOBILE DATA TERMINALS. THE BIO [INAUDIBLE] WILL BE CARRIED ON THE MASS CASUALTY STRETCHERS. ALSO 79,000 IS INCLUDED TO COVER THE OVERTIME TO PROVIDE INCREASED WEAPONS OF MASS DESTRUCTION TRAINING THAT TOOK PLACE IN DECEMBER AND TO COVER TRAINING THAT WILL BE REQUIRED IN -- IN -- AND CONDUCTED ONCE SOME OF THIS EQUIPMENT STARTS ARRIVING. SIMILAR TO WHAT DAVID LOURIE, MOST OF THESE CALLS WITH THE EXCEPTION OF THE OVERTIME ARE THINGS THAT THIS COMMUNITY ALREADY NEEDS TO HANDLE ANY MASS CASUALTY TYPE OF EVENT, WHETHER IT BE NATURAL OR MAN MADE. WITH THAT I WOULD LIKE TO TURN IT OVER TO POLICE CHIEF STAN KNEE, UNLESS THERE'S QUESTION.

MAYOR GARCIA: ONE QUICK QUESTION MR. HARRINGTON. THE E.M.S. IS NOW A AUSTIN TRAVIS COUNTY --

YES, SIR.

MAYOR GARCIA: ARE THESE PRESENTATIONS ALSO BE MADE TO ALL OF THE ORE MUNICIPALITIES THAT ARE IN TRAVIS COUNTY AND TO THE TRAVIS COUNTY COMMISSIONERS COURT FOR THE UNINCORPORATED AREA THAT YOU SERVE.

NOT THIS I'DCAL ONE. WE HAVE -- IDENTICAL ONE. WE HAVE DONE PRESENTATIONS --

MAYOR GARCIA: ARE THEY GOING TO BE ASKED TO ALSO CONTRIBUTE TO THE INCREASED COSTS OR IS THIS SOMETHING THAT'S GOING TO BE FUNNED JUST BY THE CITY OF AUSTIN -- FUNDED JUST BY THE CITY OF AUSTIN.

THESE CALLS WILL BE FUNDED BY THE CITY OF AUSTIN. THEY ARE COVERING SOME OF THESE THROUGH REALLOCATION OF SOME OF THE OVERTIME THAT WE HAVE ALREADY EXPENDED IS COMING OUT OF THAT FUND.

MAYOR GARCIA: CAN YOU SEND US A MEMORANDUM SHOWING HOW MUCH LIKE LAKEWAY OR ALL OF THE OTHER CITIES THAT ARE IN TRAVIS COUNTY THAT YOU SERVE FROM YOUR DEPARTMENT, HOW MUCH THEY ARE CONTRIBUTING TO THIS COST?

THE INDIVIDUAL MUNICIPALITIES AREN'T CONTRIBUTING ANYTHING DIRECTLY TO THIS. IT'S JUST TRAVIS COUNTY, THE GOVERNMENT, COMMISSIONERS COURT.

MAYOR GARCIA: CHRONIC THAT'S CORRECT, BECAUSE WHEN YOU HAVE TRAVIS COUNTY FUNDING THE EXCESSES, YOU ARE TAXING THE CITY OF AUSTIN RESIDENTS TWICE. YOU ARE TAXING THEM ONCE TO DO THIS, TAXING THEM AGAIN FOR THE TRAVIS COUNTY EXPENSES. WHEN WE DID THE TRANSITION FROM BEING -- THIS BEING AN AUSTIN E.M.S. TO BEING A COUNTY-WIDE, WE SAID THE MUNICIPALITIES, THE INCORPORATED AREAS, FEED TO CONTRIBUTE BECAUSE THEY HAVE THEIR OWN TAX BASE. IT IS REALLY FINANCIALLY UNFAIR TO PUT THE BURDEN ON THE CITY OF AUSTIN TAXPAYERS AND NOT ON THOSE MUNICIPALITIES WHO ONLY PAY THE -- THE COUNTY TAX, BUT THEY DON'T PAY ANYTHING FROM THE MUNICIPAL BUDGETS ON THIS. I THINK THAT YOU NEED TO LOOK AT THAT AND EXPLORE WHAT THE SHARE IS FOR THOSE MICROCHIP APPELLATES.

YES, SIR. --OWE FOR THOSE MUNICIPALITIES.

WE WILL DO THAT, WE WILL DO THAT.

FURTHER QUESTIONS. CHIEF?

THANK YOU, MR. MAYOR. I HAVE OFTENING QUOTED IN THE MEDIA SAYING SINCE SEPTEMBER 11TH THINGED HAVE CHANGED AT A.P.D. FOREVER. THE STATEMENT IS AS TRUE TODAY AS IT WAS OVER FOUR MONTHS AGO. I BELIEVE THAT THE RAPID RESPONSE TO THE ATTACKS ON SEPTEMBER 11TH BY FEDERAL, STATE AND LOCAL LAW ENFORCEMENT HAVE PREVENTED OTHER ATTACKS FROM OCCURRING. BUT I MUST REMIND YOU THAT THE WAR ON TERRORISM IS NEITHER ENDING NOR WINDING DOWN. SINCE SEPTEMBER 11TH ATTACK, THIS DEPARTMENT HAS RECEIVED OVER 46 NOTIFICATIONS FROM FEDERAL OR STATE SOURCES WHICH PROVIDED WARNINGS OR SUGGESTED THAT WE INCREASE OUR VIGILANCE WITH REGARD TO HOMELAND DEFENSE. THE TWO MOST RECENT ADVISORIES CAME FROM THE F.B.I. AND NATIONAL INFRASTRUCTURE PROTECTION CENTER. THE F.B.I. ISSUED A GENERAL THREAT ADVISORY WHICH REQUESTED INCREASED LEVEL OF VIGILANCE FROM EARLY JANUARY THROUGH MARCH. THE SECOND FROM THE NATIONAL INFRASTRUCTURE PROTECTION CENTER, EXPRESSED CONCERN OVER LOCAL ENERGY FACILITIES AND INFRASTRUCTURE. I BELIEVE THAT AUSTIN IS UNIQUE AND SHOULD BE AS STRONG AS -- AS STRONG TODAY AS IT WAS IMMEDIATELY FOLLOWING SEPTEMBER 11TH ATTACK TO ENSURE PUBLIC SAFETY. LET ME QUICKLY REVIEW THE MORE SIGNIFICANT STEPS TAKEN BY A.P.D. TO ENSURE THAT WE ARE ABLE TO RESPOND APPROPRIATELY TO THIS NEW THREAT. WE CREATED AN ENTIRELY NEW ORGANIZATION, MAJOR INCIDENT TEAM, WHICH WILL ENSURE A QUICK AND ADEQUATE RESPONSE TO A MAJOR INCIDENT. PART OF THIS PLAN WAS THE CREATION OF A CIVIL DEFENSE BATTALION WHICH WILL BE A -- OPERATIONAL VERY SOON. WE ESTABLISHED THE HOMELAND DEFENSE UNIT, WHICH CONSISTS OF SUFFICIENT OFFICERS TO PROVIDE SECURITY TO CRITICAL UTILITY SITES IN THE AUSTIN AREA. AND WE INCREASED OUR ABILITY TO RESPOND TO MULTIPLE REPORTS OF POTENTIAL BOMBS OR EXPLOSIVE DEVICES. WE INCREASED OUR MANPOWER COMMITTED TO THE TASK OF INTELLIGENCE SHARING WITH FEDERAL, STATE AND LOCAL AGENCIES AND REPRIORITIZED OUR CAPITAL OUTLAY BUDGET AND DIVERTED OVER $730,000 TO MUCH NEEDED EQUIPMENT FOR HOMELAND DEFENSE. WE HAVE TRAINED OVER 1600 LAW END ENFORCEMENT PERSONNEL IN WEAPONS OF MASS DESTRUCTION. ADDITIONAL TRAINING WITH FIRE AND E.M.S. IS ONGOING WITH MORE TRAINING SCHEDULED THROUGHOUT THE YEAR. THE CHANGES BROUGHT ABOUT THE -- BY THE HOMELAND DEFENSE MEASURES HAVE NOT COME WITHOUT A PIES TAG. THE DEPARTMENT HAS BEEN ABLE TO REALLOCATE APPROXIMATELY $2.6 MILLION FROM EXISTING BUDGET AND RECEIVED APPROXIMATELY $2.3 MILLION FROM WATER AND WASTEWATER AND AUSTIN ENERGY. THE RE-- THERE REMAINS AN UNFUNDED LIABILITY OF NEARLY $3.3 MILLION. THIS IS REPRESENTED BY THE LOST OF THE COPS GRANT MONEY TOTALING 1.5 MILLION, OVERTIME FOR CONSTANT MANNING DUE TO ADDITIONAL RESPONSIBILITIES, IT HAS BEEN SAID BEFORE SEPTEMBER 11TH A CHANGED HOW WE DO BUSINESS, TAKEN INTO CONSIDERATION NEW RESPONSIBILITIES CALLED WITH THE NEED TO MAINTAIN A RESPONSIBILITY TO CALLS FOR SERVICE, PROACTIVE CRIME FIGHTING AND A NEW VIGILANCE TO SECURITY AT SPECIAL EVENTS THE AMOUNT OF OVERTIME REQUESTED IS THE MINIMUM AMOUNT NECESSARY TO PROVIDE FOR PUBLIC SAFETY. LASTLY, THE COST INCURRED BY INCREASING CADET SIZE AND A CONSEQUENCE DENSED CADET -- CONDENSED CADET TRAINING SCHEDULE. WE HAVE OFFSET THIS COST BY ONE-HALF, $363,000 THROUGH INTERNALLY ADJUSTMENTS. YOUR POLICE DEPARTMENT, FIRE DEPARTMENT, EMERGENCY MEDICAL SERVICE AND HEALTH DEPARTMENTS HAVE COMMITTED THEMSELVES TO WORKING WITH FEDERAL AND STATE AGENCIES IN THEIN THE WAR ON TERRORISM. ADMITTEDLY A FEW CITIES HAVE REDUCED THE AMOUNT OF RESOURCES THEY HAD COMMITTED TO HOMELAND DEFENSE AFTER SEPTEMBER 11TH. THIS PROPOSAL REPRESENTS A CONSERVATIVE COMMITMENT AS PRACTICAL TO PREPARE AUSTIN FOR ANTICIPATED HOMELAND DEFENSE NEEDS. AUSTIN IS THE CAPITOL OF TEXAS. WE SENT OUR FORMER GOVERNOR TO THE WHITE HOUSE WHERE HE DIRECTS THIS NATION'S HISTORIC WAR ON TERRORISM. THERE ARE NUMEROUS IMPORTANT FACILITIES AND HIGH PROFILE INDIVIDUALS THAT REQUIRE OUR SPECIAL ATTENTION. IN THE PRESIDENT'S STATE OF THE UNION ADDRESS, HE RE-EMPHASIZED THAT THE THREAT TO OUR COUNTRY IS NOT OVER. WE HAVE ALSO HEARD THE SECRETARY OF DEFENSE AND THE U.S. ATTORNEY GENERAL RECENTLY EMPHASIZE THE NEED TO BE VIGILANT AGAINST THE POTENTIAL, FUTURE TERRORIST ATTACK. LOCAL PUBLIC SAFETY AND HEALTH DEPARTMENTS ARE THE FIRST LINE OF DEFENSE, IF THERE IS A MAJOR INCIDENT. I THINK THAT NOW IS THE TIM TO CONTINUE OUR COMMITMENT TO THE SAFETY OF AUSTIN. WITHOUT THE FUNDS FROM THE SALE OF THE TAX ANTICIPATION NOTES, WE WILL BE FORCED TO REDUCE SERVICES IN OTHER CRITICAL AREAS IN ORDER TO MAINTAIN PUBLIC SAFETY. QUESTIONS?

MAYOR GARCIA: QUESTIONS FOR -- THANK YOU, CHIEF, QUESTIONS FOR CHIEF KNEE? THANK YOU VERY MUCH.

GOOD MORNING MAYOR AND COUNCIL. AS YOU KNOW, THE NEED TO FUND HOMELAND SECURITY COSTS COMES AT A BAD TIME FOR US. FOR THE SHORT TERM THAT IS FOR THIS FISCAL YEAR, IT ADDS TO THE OTHER PROBLEMS THAT WE FACE THIS YEAR. THE LOSS OF SALES TAX REVENUE, AND THE COPS GRANT FUNDING. IF OUR ONLY PROBLEM WERE THESE SHORT-TERM PROBLEMS, IT WOULD BE RELATIVELY EASY TO DEAL WITH AND THERE MIGHT BE BETTER ALTERNATIVES THAN OUR RECOMMENDED APPROACH, THE ISSUANCE OF A TAX ANTICIPATION NOTE. IT'S NOT OUR ONLY PROBLEM. WE IN FACT HAVE A MORE SERIOUS PROBLEM, WHICH IS THAT OUR EXPENDITURE GROWTH IS EXPECTED TO OUTSTRIP OUR REVENUE GROWTH FOR THE FORESEEABLE FUTURE. THIS LONGER TERM PROBLEM IS WHAT IS DRIVING OUR RECOMMENDED APPROACH. AS WE HAVE SHOWN YOU IN PREVIOUS BRIEFINGS, WE BELIEVE THE CITY FACES A FUNDING GAP OF UP TO $70 MILLION FOR FISCAL YEAR '03 AND THAT GAP WIDENS IN FISCAL YEAR '04 AND BEYOND. TO HELP CLOSE THAT GAP, WE HAVE WORKED WITH DEPARTMENTS THIS YEAR TO HOLD POSITIONS VACANT WHEREVER POSSIBLE. WE HAVE DEFERRED NON-CRITICAL CASH C.I.P. AND HELD NOT CRITICAL CAPITAL OUTLAY. THESE ACTIONS HAVE SAVED US $13.5 MILLION, 5.5 MILLION, AND 1.2 MILLION AS SEEN ON THE SLIDE. WITHOUT RESORTING TO LAYOFFS OR PROGRAM ELIMINATIONS. LAST YEAR, WE WERE ABLE TO ACHIEVE AN EVEN GREATER AMOUNT IN SAVINGS THAN WE HAD ANTICIPATED AND IN ADDITION RECEIVED ADDITIONAL REVENUE MOSTLY FROM E.M.S. WITH THE RESULT THAT OUR ENDING FISCAL YEAR '01 BALANCE WAS 3.7 MILLION HIGHER THAN EXPECTED. WE HAVE ALSO BEEN ABLE TO IDENTIFY 10.2 MILLION IN DEBT SERVICE SAVINGS FROM A GO REFUNDING LAST SUMMER AND OUR BOND SALE THIS FALL. THE TOTAL OF THESE ITEMS IS 34.1 MILLION. WHEN WE MADE OUR LAST PRESENTATION ON THE TAX ANTICIPATION NOTICED TO COUNCIL, YOU ASKED US TO PROVIDE YOU WITH ALTERNATIVES, WE HAVE PREPARED THREE OTHER ALTERNATIVES WHICH I WILL DISCUSS SHORTLY. ONE OF THOSE ALTERNATIVES IS TO USE 8 MILLION OF THE CURRENT YEAR'S SAVINGS, THAT IS TO ABSORB ALL OF THE REVENUE SHORTFALL AND THE CREATIONED EXPENDITURES WITHIN THIS YEAR'S BUDGET. THAT ALTERNATIVE WOULD REDUCE BY 8 MILLION THE 13.5 MILLION IN CURRENT YEAR SAVINGS AND WOULD MEAN A CORRESPONDING REDUCTION IN THE 34 MILLION DOLLAR ENDING BALANCE. IT WOULD TAKE IT DOWN TO 26 MILLION. WHEN WE CARRY THOSE TWO ENDING BALANCES FORWARD TO NEXT YEAR TO HELP US CLOSE OUR GAP, THE EFFECT WOULD BE, AS YOU SEE HERE ON THE SLIDE. WITH THE TAX ANTICIPATION NOTE FOR 8 MILLION, THE GAP SHRINKS TO 36 MILLION. WITHOUT IT, THE GAP WIDENS TO 44 MILLION. IT WOULD BE VERY DIFFICULT TO CUT 36 MILLION DOLLARS FROM OUR GENERAL FUND BUDGET. BUT WE MAY BE ABLE TO DO IT WITHOUT CUTTING CORE SERVICES, ESSENTIAL NO-FRILLS SERVICES SUCH AS PUBLIC SAFETY, PUBLIC HEALTH, AND SERVICES THAT THE CITY MUST PROVIDE TO MEET A STATE OR FEDERAL MANDATE. HOWEVER, I BELIEVE THAT AN ADDITIONAL 8 MILLION WOULD HAVE TO COME MOSTLY IF NOT ENTIRELY FROM CORE SERVICES. ONE ALTERNATIVE WE ARE NOT INCLUDING IN OUR PRESENTATION TODAY, BUT WHICH IS ALWAYS AN OPTION IS TO TRY TO SAVE AN ADDITIONAL 8 MILLION THIS YEAR. WE BELIEVE WE CAN ACHIEVE THE 13.5 MILLION WITHOUT ELIMINATION OF PROGRAMS. HOWEVER, IT WOULD BE A DIFFICULT -- DIFFICULT TO SAVE AN ADDITIONAL 8 MILLION THIS YEAR USING THAT SAME APPROACH. LET ME WALK YOU NOW THROUGH THE FUNDING OPTIONS THAT WE ARE PROPOSING FOR EACH OF THE FOUR ALTERNATIVES. THEY ARE THE TAX ANTICIPATION NOTE, WHICH COULD BE ISSUED FOR THE ENTIRE $8 MILLION OR FOR A LESSER AMOUNT. CONTRACTUAL OBLIGATIONS, WHICH ARE A MEDIUM TERM DEBT, TYPICALLY SEVEN YEARS AND WHICH LIKE THE TAX ANTICIPATION NOTE WOULD ALSO BE REPAID FROM THE DEBT SERVICE PROPERTY TAX RATE. THE GENERAL FUND CONTINGENCY, ANYTHING USED FROM THE CONTINGENCY FUND THIS YEAR WILL HAVE TO BE REPLENISHED NEXT YEAR, SO THIS IS A DEFERRAL MECHANISM RATHER THAN A FINANCING MECHANISM. FINALLY, THE DEPARTMENTAL SAVINGS. USING EITHER THE 13.5 MILLION THAT WE ARE ESTIMATING WE CAN ACHIEVE THIS YEAR WITHOUT SEVERE DISRUPTION, OR ATTEMPTING TO SAVE MORE THAN THAT, WHICH WOULD REQUIRE MORE DRASTIC ACTION. THE REQUIREMENTS WE ARE ATTEMPTING TO FUND WITH THOSE OPTIONS CAN BE BROKEN DOWN INTO THREE CATEGORIES. OF THE TOTAL $8 MILLION, 5.6 ARE ONE-TIME ITEMS. THESE ONE-TIME ITEMS CAN BE FURTHER BROKEN DOWN INTO TWO CATEGORIES, ONE-TIME MONDAY CAPITAL ITEMS, -- ONE TIME NON-CAPITAL ITEMS WHICH INCLUDE THE SHORTFALL INCLUDE THE LOSS OF THE COPS GRANTS AND OVERTIME AND ONE-TIME CAPITAL ITEMS, WHICH ARE THE EQUIPMENT. THE TOTAL OF THE NON-CAPITAL ONE-TIME ITEMS IS 4.8 MILLION. WHICH WHEN ADDED TO THE EQUIPMENT OR THE CAPITAL REQUIREMENT OF 800,000 COMES TO THE 5.6 MILLION. IN ADDITION, AS DEPUTY CITY MANAGER FUTRELL POINTED OUT EARLIER, THERE ARE ALSO 2.4 MILLION IN RECURRING COSTS, SALARIES, EQUIPMENT AND SUPPLIES. I WOULD LIKE TO SHOW YOU NEXT A MATRIX THAT HAS THE FOUR FUNDING ALTERNATIVES SHOWN ON IT. ALTERNATIVE ONE IS TO USE THE TAX ANTICIPATION NOTE TO FUND THE ENTIRE 8 MILLION. THIS IS OUR RECOMMENDED ALTERNATIVE FOR REASONS WE WILL DISCUSS SHORTLY. THIS WOULD MEAN AN INCREASE TO NEXT YEAR'S DEBT SERVICE TAX RATE OF 1.66 CENTS. ALTERNATIVE 2, IS TO BREAK THE 8 MILLION INTO TWO CATEGORIES, ONE TIME ITEMS AND RECURRING ITEMS. ALL OF THE ONE-TIME ITEMS UNDER THIS ALTERNATIVE, BOTH THE CAPITAL AND THE NON-CAPITAL ONE TIME ITEMS WOULD BE FUNDED THROUGH THE TAX ANTICIPATION NOTE. WHICH WOULD BE ISSUED FOR 5.6 MILLION. THE 2.4 MILLION IN ONGOING COSTS WOULD BE TAKEN FROM THE GENERAL FUND CONTINGENCY RESERVE. BECAUSE THE TAX ANTICIPATION NOTE HAS BEEN REDUCED FROM 8 MILLION TO 5.6 MILLION, THE RESULTING INCREASE TO THE DEBT SERVICE TAX RATE IN 2003 WOULD BE 1.15 CENTS RATHER THAN 1.66 CENTS. ALTERNATIVE THREE IS SIMILAR TO ALTERNATIVE 2, BUT IT FURTHER REDUCES THE AMOUNT OF THE TAX ANTICIPATION NOTE. UNDER THIS ALTERNATIVE, THE NOTE WOULD BE ISSUED ONLY FOR THE NON-CAPITAL ONE-TIME COSTS OF 4.8 MILLION. THE 800,000 FOR EQUIPMENT WOULD BE FUNDED BY CONTRACTUAL OBLIGATIONS, WHICH ARE AGAIN A SEVEN YEAR DEBT RATHER THAN A ONE-YEAR DEBT. UNDER ALTERNATIVE 3, THE GENERAL FUND CONTINGENCY RESERVE WOULD ALSO BE USED FOR THE RECURRING COSTS OF 2.4 MILLION. THIS TAKES THE TAX ANTICIPATION NOTE DOWN FURTHER TO 4.8 MILLION, WHICH WOULD MEAN AN INCREASE NEXT YEAR OF 1 CENT. AND FINALLY, ALTERNATIVE 4 IS TO ABSORB THE 8 MILLION DOLLARS FROM THIS YEAR'S PLANNED SAVINGS OF 13.5 MILLION. GOING BACK TO ALTERNATIVE 1, A REQUIRED INCREASE OF 1.66 CENTS GIVES COUNCIL MORE FLEXIBILITY NEXT YEAR. IT AVOIDS DRASTIC ACTIONS THIS YEAR AND IT MITT GATES THE ACTIONS THAT WILL HAVE TO BE -- MITIGATES THE ACTIONS THAT WILL HAVE TO BE TAKEN NEXT YEAR TO CLOSE THE GAP. BUDGET DELIBERATIONS IN AUGUST AND SEPTEMBER AS YOU KNOW ARE USUALLY A STRESSFUL TIME FOR BOTH STAFF AND COUNCIL AND ALTERNATIVE 1 WOULD HELP TO MITT MITIGATE WHAT MAY BE A VERY DIFFICULT PROCESS. ALTERNATIVE 2 PROVIDES SOME OF THE ADVANTAGES OF ALTERNATIVE ONE AND LOWERS THE INCREASE REQUIRED TO THE DEBT SERVICE TAX RATE. HOWEVER, IT REDUCES THE GENERAL FUND CONTINGENCY FOR THE REMAINDER OF THE YEAR, DOWN TO 2.2 MILLION. AND MEANS THE RESERVE MUST BE REPLENISHED NEXT YEAR. ALTERNATIVE 3, AGAIN PROVIDES SOME OF THE ADVANTAGES OF 1 AND 2 AND REDUCES THE TAX INCREASE TO 1 CENT. IT ALSO REDUCES THE CONTINGENCY RESERVE FOR THIS YEAR AND REQUIRES REPLENISHMENT NEXT YEAR. ALTERNATIVE 4 DOES NOT REQUIRE A COMMITMENT TO INCREASE THE TAX RATE AT THIS TIME. IT WILL REQUIRE MORE DRASTIC ACTIONS THAN OTHERWISE, EITHER THIS YEAR OR NEXT. ALTERNATIVE 4, DOES NOT POSITION THE CITY WELL TO HANDLE THE LONG DARK TERM PROBLEMS IT FACES. LONG-TERM PROBLEMS IT FACES. I THINK THE CITY'S SOLUTION TO THE LONG-TERM PROBLEM HAS TO BE MULTI-TEE FACETED. I THINK WE NEED TO LOOK TO REVENUE ENHANCEMENT AND EXPENDITURES WHERE [INAUDIBLE]. THE MAIN ADVANTAGE TO ALTERNATIVE 1 IS THAT IT GIVES US MORE FLEXIBILITY, MORE OPTIONS TO PREPARE FOR NEXT YEAR. THE OTHER LONGER TERM -- THE OTHER LONGER TERM SOLUTIONS THAT I HAVE JUST ENUMERATED WILL TAKE TIME TO DEVELOP OUR REVENUE, CERTAINING FOR ADDITIONAL REVENUE, FOR EXAMPLE. AS YOU KNOW, WE ARE NOW EVALUATING THE CORE SERVICE BUSINESS PLANS THAT THE DEPARTMENTS RECENTLY SUBMITTED TO US. WE NEED TO ANALYZE THOSE PLANS TO UNDERSTAND WHAT THE EFFECT OF CLOSING OUR GAP WILL BE ON ALL CITY SERVICES. WHETHER CORE SERVICES OR OTHERWISE. AND WE NEED TO PROVIDE MANAGEMENT AND COUNCIL WITH A LAND THAT MINIMIZES DISRUPTION TO CITIZENS AND EMPLOYEES. OVER THE NEXT FEW WEEKS AND MONTHS, WE WILL WORK WITH COUNCIL SO THAT YOU CAN FULLY UNDERSTAND OUR CORE SERVICE BUSINESS STRATEGY AND SO THAT YOU CAN MAKE THE BEST DECISIONS FOR THE FISCAL YEAR '03 AND BEYOND. FOR THE IMMEDIATE FUTURE, WE PLAN TO BRING THE TAX ANTICIPATION NOTE FORWARD NEXT WEEK AS AN ACTION ITEM. SHOWING YOU ONCE AGAIN THE -- THE MATRIX OF THE FOUR ALTERNATIVES, WE WOULD LIKE AT THIS TIME TO ANSWER ANY REMAINING QUESTIONS THAT YOU MAY HAVE AT THIS POINT. AND TO GET A SENSE OF WHAT -- WHICH OF THESE ALTERNATIVES COUNCIL WOULD LIKE TO PURSUE.

MAYOR GARCIA: THANK YOU, MR. STEVENS. QUESTIONS, COUNCILMEMBER WYNN?

WYNN: YES, THANK YOU. MR. STEVENS, ON THE TAX RATE INCREASES THAT YOU SHOW, 1.66, 1.15 AND 1, REMIND ME, WHAT PERCENTAGE CREATION IN THE AD VALOREM TAX RATE WOULD THAT REPRESENT, GOING FROM 46 TO 47 CENTS.

YES, WE ARE GOING FROM 46 CENTS TO -- WE ALSO, AS YOU KNOW, COUNCIL, ALSO COMMITTED WITH THE 1998 BOND ELECTION TO ADD AN ADDITIONAL CENT TO THE DEBT SERVICE TAX RATE FOR THE '98 BOND ELECTION. SO IN EFFECT THE RATE WOULD BE GOING UP FROM APPROXIMATELY 46 CENTS TO -- THIS YEAR TO -- TO 2.66 CENTS MORE.

SO THAT COULD BE, WHAT, 4 -- 4 AND A HALF PERCENT INCREASE, ZBIK LOOK THAT?

-- SOMETHING LIKE THAT?

APPROXIMATELY, YES.

WYNN: THE -- THE CLOSER COMMENT ON ALTERNATIVE 4, I DON'T QUITE UNDERSTAND. ON THE SLIDE AT LEAST, ON MY HARD COPY. IT SAYS THAT -- THAT ALTERNATIVE 4 DOES NOT OPTIMIZE CURRENT YEAR EXPENSE REDUCTION OPPORTUNITIES. I DON'T UNDERSTAND WHAT YOU MEAN BY THAT.

WELL, AGAIN, OUR STRATEGY, WHAT WE WOULD LIKE TO DO, IS -- IS TO TAKE THE 13.5 MILLION THAT WE HAVE IDENTIFIED THIS YEAR, THAT WE THINK WE CAN ACHIEVE WITHOUT ANY LAYOFFS AND WITHOUT PROGRAM ELIMINATIONS AND WITHOUT AFFECTING OUR CORE SERVICES, WE WOULD LIKE TO TAKE THAT 13.5 IN ITS ENTIRETY, AND CARRY THAT OVER TO HELP US FUND FISCAL YEAR '03 AND EVEN BEYOND. TO HELP US CLOSE OUR GAP FOR FISCAL YEAR '03. IF COUNCIL DOES NOT PASS THE TAX ANTICIPATION NOTE, THEN WE WILL HAVE TO ABSORB THAT ENTIRE 8 MILLION OUT OF THAT 13.5 MILLION, THAT SIMPLY WIDENS THE GAP NEXT YEAR THAT WE HAVE TO CLOSE AT THAT POINT.

WYNN: WELL, SEEMS TO ME THAT -- IT RELATES TO SOME DEGREE -- THE OVERARCHING ISSUE THAT WE ARE STRUGGLING WITH IS THE GRAPH THAT SHOWS THE PROJECTED EXPENDITURES OVER THE NEXT SEVERAL YEARS AND PROJECTED REVENUE. IT'S -- YOU KNOW, IT'S INCREASING AT A PRETTY ALARMING RATE. AND I JUST DON'T SEE --

MAYOR GARCIA: COUNCILMEMBER, CAN YOU THROW THAT UP? IS THERE ONE THAT HAS THE --

WYNN: SLIDE 13.

WYNN: OF COURSE FROM YOU SPRAP PLATE EVEN -- EXTRAPOLATE EVEN FURTHER, IT'S OFF THE CHART, I DON'T SEE HOW WE CAN PRIMARILY ADDRESS THIS ISSUE BY TRYING TO INCREASE REVENUE. I JUST SEE -- IT'S NOT A SUSTAINABLE OPPORTUNITY FOR US. AND -- AND IT'S -- YOU KNOW, SOMEHOW WE HAVE TO -- YOU KNOW, FLATTEN THAT EXPENDITURE CURVE. OR WE JUST CAN'T GET THERE FROM HERE. AND SO I'M JUST -- I DON'T UNDERSTAND WHY -- WHY FRANKLY BY SAY FORCING MORE DRAMATIC CUTS SOONER RATHER THAN LATER, ABILITY ACTIVE 4 AS AN -- ALTERNATIVE 4, AS AN EXAMPLE, HOW THAT DOESN'T OPTIMIZE THE REDUCTION OPPORTUNITIES. I MEAN, I THINK AT SOME POINT THERE'S GOING TO BE SOME PAINFUL EXPENDITURE REDUCTIONS AND I -- JUST SEEMS TO ME THAT INTUITIVELY IT'S ALMOST THE SOONER YOU DO IT, THE LESS PAINFUL THAT IT IS, PERHAPS, YOU KNOW, TWO OR THREE YEARS DOWN THE ROAD, IF INDEED THESE PROJECTIONS GRAPHICALLY ARE CORRECT.

COUNCILMEMBER, I DON'T DISAGREE WITH WHAT YOU HAVE SAID. AGAIN, I THINK THE -- THE APPROACH THAT THE CITY NEEDS TO TAKE ARE LONGER TERM BUDGET -- OUR LONGER TERM BUDGET STRATEGY NEEDS TO BE MULTIPLE FACETED. LOOK AT REVENUE AND EXPENDITURE REDUCTIONS ALSO WHERE POSSIBLE. IT THINK IT WOULD BE DIFFICULT TO CLOSE THE GAP NEXT YEAR ENTIRELY WITHOUT -- WITHOUT ENTIRELY WITH -- WITH EXPENDITURES AND IF WE DO NOT CARRY OVER SOME ENDING BALANCE TO HELP US FUND NEXT YEAR, IF WE TRY TO TAKE THE ENTIRE 8 MILLION IN -- IN INCREASED HOMELAND SECURITY IN OUR SALES TAX SHORTFALL, PLUS CARRYING OVER THAT BALANCE FOR NEXT YEAR, THEN WE WOULD NEED TO -- TO VERY SOON BEGIN TO PUT TOGETHER A PLAN THAT MIGHT REQUIRE SOME PROGRAM ELIMINATIONS THIS YEAR.

GARZA: LET ME SEE IF I CAN ADD TO THAT, BECAUSE I REALLY DO THINK -- I DON'T -- THE '03 BUDGET, WE ARE GOING TO HAVE TO BEGIN TO I GUESS -- YOU WILL HAVE THE PRELIMINARY BUDGET DELIVERED TO THE COUNCIL END THE JUNE. I DON'T THINK THERE'S ANY WAY, EVEN WITH -- WITH THE TAN PLAN, TAX ANTICIPATION NOTE PLAN, THAT YOU WILL BE ABLE TO PUT THAT TOGETHER WITHOUT HAVING REDUCTIONS. YOU ARE GOING TO NEED TO REDUCE -- YOU MAY BE ABLE TO AVOID LAYOFFS, BUT YOU MAY TAKE POSITIONS WE'VE HELD OPEN AND ELIMINATE THEM. THEN WE MAY NEED TO DO AN ANALYSIS ON POSITIONS WE HELD OPEN, WHAT PROGRAMS CONSTANTLY NEED TO BE EITHER REDUCED OR ELIMINATED BECAUSE THERE WON'T BE SUFFICIENT STAFF TO CARRY OUT THOSE PROGRAMS. YOUR GENERAL FUND GREW BY 4.7% OR MAYBE RIGHT AT ABOUT 4% LAST YEAR, AND I THINK THAT THE PROJECTION HERE IS FOR IT TO GROW A LITTLE BIT FASTER RATE. YOU ARE GOING TO HAVE TO MODERATE THE RATE OF GROWTH IN THE GENERAL FUND. SO THAT'S JUST A -- THAT'S A CONSEQUENCE OF WHAT WE ARE GOING TO HAVE TO DO. I THINK THAT THE STAFF IS WANTING TO ALLOW THAT FLEXIBILITY FOR YOU TO BE LOOKING AT -- AT -- YOU ARE GOING TO PROBABLY LOOK AT PROGRAM MODIFICATIONS AND/OR REDUCTIONS AS PART OF YOUR 2003 BUDGET. I THINK THAT'S WHY WE ARE DOING THIS ANALYSIS OF CORE SERVICES, SEMI CORE, NON-CORE. THAT ARE THINGS THAT WE DO THAT ARE BEYOND THE BOUNDS OF CORE SERVICES AND SEMI CORE SEVENS THAT AREN'T REALLY -- SERVICES THAT AREN'T REALLY THINGS THAT WILL HURT SERVICES THAT YOU CAN TAKE REDUCTIONS IN. WE DIDN'T WANT TO GET INTO THOSE DISCUSSIONS NOW, BUT I THINK THAT YOU WILL BE GETTING INTO THEM IN THE SPRING. SO I THINK YOU CAN GET SOME DIRECTION FROM COUNCIL WHEN WE DO THE DIVISION OF CORE, SEMI CORE AND NON-CORE, THAT WE ARE IN LEGITIMATE WITH THE -- IN ALIGNMENT WITH THE COUNCIL ON THOSE SERVICES.

WYNN: SEEMS TO ME THAT WE ARE SHOWING THAT THE GENERAL FUND EXPENDITURES AT $470 MILLION THIS YEAR. AND THEN WE PROJECT 690 MILLION IN 05, 06, I DON'T KNOW WHAT THAT GROWTH RATE IS, ABOUT LOOKS LIKE A 45 DEGREE GROWTH RATE, SO I HAVE GOT TO BELIEVE THAT'S -- YOU KNOW, 5% OR SOMETHING. I JUST DON'T SEE HOW -- YOU KNOW, OBVIOUSLY THE COST OF GOVERNMENT IS AN ELEMENT OF INFLATION, JUST OVERALL COST OF AN ECONOMY. I DON'T SEE HOW WE CAN -- I MEAN, IT SHOULD SCARE US DRAMATICALLY IF WE SHOW OUR EXPENDITURES ARE GROWING AT MORE THAN INFLATION, WHEN IS THE LAST TIME INFLATION IN THIS COUNTRY HAS BEEN MORE THAN 3%, YET IF WE PROJECT OUR EXPENDITURES, OUR COSTS AS A CITY AT, YOU KNOW, 5 OR MORE PERHAPS, JUST -- THAT'S -- THAT'S UNSUSTAINABLE. YOU JUST CAN'T -- YOU CAN'T DO IT.

MAYOR GARCIA: I THINK THE HOME LANDS SECURITY ISSUES ARE WHAT'S DRIVING THIS EQUATION. AND THE -- THE -- THE -- IN LOOKING AT THESE OPTIONS, 1, 2, 3, 4, I'M NOT AT ALL, YOU KNOW, IN FAVOR OF LOOKING AT OPTION 4 BECAUSE THAT DOES PRETTY DRAMATIC CUTS, NOT JUST THIS YEAR BUT IN THE FUTURE. I WOULD LIKE -- I WOULD LIKE MR. STEVENS, BECAUSE I THINK THAT THIS ALSO HAS SOME EFFECT ON -- ON HOW PEVETO [ PHONETIC ] AFFECTS THE CITY. I THINK WE NEED TO LOOK AT THAT ISSUE SO THE COUNCIL CAN HAVE THE FLEXIBILITY THAT IT NEEDS WHEN IT FACES, YOU KNOW, SUBSTANTIAL INCREASES IN -- IN EXPENDITURES, CAUSED BY THINGS LIKE HOMELAND SECURITY OR ANYTHING ELSE. WE ALSO HAVE -- THE CONTRACTS THAT ARE UNDER MEET AND CONFER THAT HAVE SOME BUILT-IN INCREASES THAT NEED TO BE LOOKED AT. SO WE HAVE A TOUGH SITUATION ACROSS THE BOARD, COUNCILMEMBER. THAT'S -- THAT'S THE REALITY. CAN WE LOOK AT THAT ISSUE OF THE PEVETO?

YES, MAYOR WE CAN DO THAT. [ONE MOMENT PLEASE FOR CHANGE IN CAPTIONERS] GAR THE COUNCIL WILL HAVE TO DECISIONS AS IT REGARDS WHAT IT CAN CUT. AND ANYBODY WHO HAS BEEN THROUGH BUDGETS WHERE CUTS HAVE TO BE DONE LIKE WE'RE PROJECTING HERE KNOWS THE PAIN AND ANGUISH THAT THE COMMUNITY GOES THROUGH. YOU ANNOUNCE THAT YOU'RE GOING TO CLOSE LIBRARIES FOR CERTAIN HOURS OR PARKS ARE GOING TO HAVE TO DO THIS OR HEALTH OR ANY OF THE OTHER DEPARTMENTS, AND YOU HAVE AN OUT CRY THAT IS VERY DIFFICULT TO MANAGE. AND -- BECAUSE THIS CITY HAS BEEN USED TO THOSE KIND OF SERVICES. CRURKS AND IF WE'RE GOING TO IN ESSENCE DO THAT, I THINK WE NEED TO UNDERSTAND THAT WE NEED TO COMMUNICATE WITH THE COMMUNITY THAT WHAT WE HAVE BEEN DOING IN THE PAST WE'RE NOT GOING TO DO. AND THAT'S -- THAT'S I THINK WHAT THE STAFF IS TRYING TO AVOID IS TO GIVE THE COUNCIL SOME FLEXIBILITY IN THE DECISION ON THE BUDGET FOR 03 AND 04 AND BEYOND CAN BE MADE WITH A LITTLE BIT MORE FLEXIBILITY IN THE PEVETO RATE.

BECAUSE I WAS HERE AT THE VERY VERY BEGINNING OF, I GUESS, '86-'87. I LEFT IN '88. DURING THAT PERIOD WE WERE DOING THINGS LIKE CALLING EMPLOYEES IN AND SAYING, WE'RE GOING TO FURLOUGH YOU. YOU HAVE TO TAKE TWO OR THREE DAYS OF NON-PAID LEAVE. THAT'S THE WAY WE'RE GOING TO BALANCE THE BUDGET. WE'RE GOING TO CLOSE LIBRARIES CERTAIN HOURS EACH QUARTER TO ACHIEVE A CERTAIN SAVINGS. WE'RE GOING TO LAYOFF -- AND I THINK WE HAD IMMEDIATE LAYOFFS OF A NUMBER OF PEOPLE THAT WERE EMPLOYED WHEN WE WERE CALLING THEM IN AND SAYING YOU NO LONGER WORK FOR US AND YOU HAVE 90 DAYS IN WHICH TO DO A TRANSITION. ONE OF THE THINGS THAT JOHN AND THE DEPARTMENT -- AND THEY OUGHT TO BE REALLY HERALDED BECAUSE WHAT THEY HAVE DONE THROUGH THE SAVINGS PLAN, THEY HAVE DONE A JOB OF SQUEEZING DOWN THE EXPENDITURES, IS YOU WILL NOT HAVE TO DO ANY MIDTERM LAYOFFS AT THIS POINT. WE HAVE THAT BUDGET UNDER CONTROL FOR THIS FISCAL YEAR. WE'RE TRYING TO GIVE YOUR COUNCIL A FLEXIBILITY TO GO INTO THE 03 BUDGET WHERE YOU A CHOICES TO MAKE. AND YOU HAVE DECIDE TO REDUCE HOURS. THOSE MAY BE THE POLICIES YOU MAKE, BUT IT MAY BE THAT YOU DO THAT AS OPPOSED TO ONLY DOING THAT. WE WANT TO GIVE YOU THOSE CHOICES SO YOU CAN DEBATE THEM, DISCUSS THEM AND FEEL COMFORTABLE THAT YOU'VE BEEN GIVEN WHOM ROOM IN WHICH TO MANEUVER. AND THAT'S WHAT WE'RE TRYING TO ACHIEVE WITH THIS.

BUT MAYOR, TO MORE FULLY ANSWER YOUR QUESTION, OF THE FOUR FUNDING OPTIONS THAT WE HAVE UP THERE, THE KO'S, THE CONTRACTUAL OBLIGATIONS, COULD BE LIMITED TO A MAXIMUM OF 800,000 BECAUSE THOSE HAVE TO BE USED FOR EQUIPMENT, AND THAT IS THE AMOUNT OF THE EQUIPMENT. THE GENERAL FUND CONTINGENCY, WHICH WE'RE RECOMMENDING FOR THE RECURRING COSTS, WERE IN ALTERNATIVES 2 AND 3 WOULD FUND THE RECURRING COSTS AT 2.4 MILLION. OUR GENERAL FUND CONTINGENT SI IN TOTAL IS 2.4 MILLION. ANYTHING WE TAKE OUT OF THAT FUND THIS YEAR, WE HAVE TO REPLENISH.

DO WE HAVE FINANCIAL POLICIES REGARD TO WHERE THE CONTINGENCY BALANCES OUGHT TO BE AT AND IS THIS WITHIN THOSE POLICIES? ARE THEY WITHIN THOSE POLICIES?

YES, SIR, WE HAVE FINANCIAL POLICIES WITH REGARD TO THE SIZE OF THE CONTINGENCY AT THE BEGINNING OF THE YEAR. THE CONTINGENCY RESERVE CAN BE USED THROUGHOUT THE YEAR FOR UNANTICIPATED COSTS THAT COME UP. BUT AGAIN, ANYTHING THAT YOU TAKE OUT THIS YEAR, HAS TO BE REPLENISHED NEXT YEAR. AND THEN BEYOND THAT, THE OTHER TWO -- THE LIMIT ON THE OTHER TWO WOULD BE THE EIGHT MILLION. OBVIOUSLY WHEN YOU REDUCE THE TAX ANTICIPATION NOTE, YOU SEE THE CORRESPONDING EFFECT ON THE TAX RATE, AND THAT EFFECT WOULD BE THE SAME EFFECT ON THE PEVETO, ON RAISING THE PEVETO LIMIT FOR NEXT YEAR ALSO. GARY GARY AND THEN CONTINGENT RESERVE IS NOT THE SAME AS FUND BALANCE, RIGHT?

NO, SIR, IT'S NOT THE SAME AS OUR UNDESIGNATED FUND BALANCE. GARY GARY DO WE HAVE A FINANCIAL POLICY WITH REGARD TO FUND BALANCE?

WE HAVE A FINANCIAL POLICY WITH REGARD TO THE CONTINGENCY RESERVE, WHICH IS SET AT 15 MILLION, A FLAT 15 MILLION FOR THAT YEAR.

GARCIA: BUT WE DON'T HAVE ONE AS IT REGARDS -- .

WE DON'T HAVE ONE AS IT REGARDS AN UNDESIGNATED FUND BALANCE.

GARCIA: AND THAT'S ABOUT 26 MILLION, SOMETHING IN THAT RANGE?

YES. AS AN ENDING BALANCE THIS YEAR WAS ABOUT 26 MILLION, OUR ACTUAL ENDING BALANCE FOR THIS YEAR. WE BUDGETED AT 22.3 AND WE ADDED ANOTHER 3.7, SO IT ENDED UP APPROXIMATELY 26.

GARCIA: YEAH. THE EXPECTED UNRESTRICTED FUND BALANCE THAT WE HAVE HAD IN THE PAST SEEMS TO ME THRAU THE YEARS WHEN YOU FINALLY DO THE FINAL ACCOUNTING AND DO THE AUDIT, THAT IS ALWAYS A LITTLE BIT HIGHER. IS THAT SOMETHING THAT WE CAN CONTINUE TO EXPECT OR DO YOU THINK THAT THAT WOULD WOULD EVAPORATE VAP RATE WITH THIS ENTIRE FINANCIAL TIME?

CERTAINLY IN THE LAST SEVERAL YEARS IT HAS ENDED UP BEING HIGHER THAN USUAL. SPECULATING GOING FORWARD, YOU KNOW, I'D BE REAL RELUCTANT TO SAY THAT'S THE CASE BECAUSE, FOR EXAMPLE, IF YOU LOOK AT THE YEAR 2000 BACK WHEN OUR SALES TAX WAS INCREASING AT SUCH A RAPID RATE, WE BUDGETED AT 9.8% INCREASE IN SALES TAX. AND IN FACT ENDED UP WITH A 14.3% INCREASE IN SALES TACK. SO WE THOUGHT WHEN WE BUDGETED WE WERE DOING SO VERY AGGRESSIVELY AND IT ENDED UP EVEN HIGHER THAN THAT.

AND I THINK THAT'S KIND OF THE THINGS THAT -- TO GET BACK TO THE HEART OF COUNCILMEMBER WYNN'S QUESTION IS SOME OF THE EXPENDITURES THAT ARE BUILT INTO THE BUDGET WERE PREDICATED ON THAT SALES TAX GROWTH. WE GREW, BUT WE WERE ABLE TO ABSORB IT WITH OUR REVENUES. AND WHAT WE'RE ANTICIPATING -- THE FIRST TWO MONTHS OF THIS YEAR, CORRECT ME IF I'M WRONG, BUT I THINK WE'RE NOW 1.8 CURRENTLY. WE'RE PROJECTING TO BE DOWN IN SALES TAX 2.WILL BY THE END OF THE YEAR. IF THINGS HOLD -- IF THE REDUCTIONS CONTINUE WAIT WE PLAN THEM. SO WE DON'T ANTICIPATE AS YOU DO THE FUND BALANCE OR AS YOU FIGURE OUT WHAT YOU END UP CLOSING THIS YEAR AT, WE DON'T THINK YOU WILL HAVE THAT EXTRA REVENUE. YOU MAY HAVE SOME ADDITIONAL SAVINGS IF WE'RE ABLE TO IDENTIFY THOSE, BUT YOU WON'T HAVE IT ON THE REVENUE SIDE. SO WE HAVE TO BE READY FOR THAT AT THE END OF THIS YEAR.

BUT TO FOLLOW UP ON THAT, MR. CITY MANAGER, THE REVENUE GROWTH OVER THE PAST FIVE YEARS HAS BEEN PHENOMENAL. IT WAS ABOUT 120 MILLION DOLLARS. BUT WE FILLED THAT UP WITH SOME COMMITMENTS, PUBLIC SAFETY COMMITMENTS, APPROXIMATELY 80 MILLION THAT REQUIRE -- THAT HAVE INCREASED COMMITMENTS BEYOND THIS YEAR. AND THAT'S PART OF WHAT'S DRIVING THE GAP.

THOSE INCREASES SATISFIED ALMOST EVERY CITIZEN IN THIS CITY. [LAUGHTER]. FAR GAR FURTHER QUESTIONS FOR MR. STEVENS? -- .

GARCIA: FURTHER QUESTIONS FOR MR. STEVENS? COUNCILMEMBER THOMAS AND THEN COUNCILMEMBER SLUSHER.

SLUSHER: GO AHEAD.

GOODMAN: AND THEN COUNCILMEMBER GOODMAN.

GARCIA: AND THE MAYOR PRO TEM.

THOMAS: FINANCE HAS NEVER BEEN MY EXPERTISE, BUT I WAS LISTENING TO THE CITY MANAGER SAYING 1986, WHATEVER YOU WERE SAYING WE WERE HAVING PROBLEMS. WHAT HAVE WE DONE TO PROTECT OURSELVES THAT WE WOULDN'T BE BACK IN THAT PREDICAMENT AS FAR AS EXPENDITURES OPPOSED TO THE REVENUE COMING IN? I KNOW YOU SAID THAT OUR REVENUE WAS BOOMING, BUT WHAT DID WE DO TO PROTECT SO WE WOULDN'T BE IN A PREDICAMENT? I KNOW YOU CAN'T ALWAYS PREDICT WHAT HAPPENS LIKE ON SEPTEMBER 11TH, AND AILTED OF THAT HAS BEEN SAID OVER AND OVER THAT TOOK A LOT OUT OF THE BUDGET, BUT WHAT HAVE WE DONE TO PROTECT OURSELVES THAT WE WOULDN'T BE BACK IN THIS PREDICAMENT LIKE IN THE '80'S?

LET ME START AND JOHN AND RUDE, IF YOU COULD. ONE OF THE THINGS THAT THE COUNCIL DID, AND WE RECOMMENDED AND THE COUNCIL DID IT, WHICH WAS GREAT, IS WE PUT A LOT OF MONEY INTO A CASH CIC. THE PRIMARY REASON FOR THE CASH CIP IS WE KNEW AN ECONOMIC CYCLE AT SOME POINT WAS GOING TO COME BA WHERE YOU HAD A DOWNTURN IN THE ECONOMY OR A SOFTENING OF REVENUES. AND THE CIP ALLOWS YOU TO PULL MONEY AWAY FROM THE CAPITAL PROJECTS AND SAY IT DOESN'T MEAN WE'RE NOT GOING DO THEM, BUT WE'LL DO IT LATER. WE'LL PUT THAT CASH ASIDE AND SAVE IT TO BE ABLE TO ABSORB THE LOSS OF REVENUE. AND WE AT ONE POINT HAD ALMOST 20 PLUS MILLION DOLLARS IN A CASH CIP. WE HAD NEVER DONE THAT ON A CONSISTENT BASIS AS A CITY. SO WE PUT SOME OF THOSE REVENUE INCREASE INTOOS A CIP, BUT IT GAVE US SOME FLEXIBILITY. AND THE INTENT WAS THAT WE DIDN'T HAVE TO RESORT TO LAYOFFS AND RESORT TO PROGRAM EXPENDITURES. AND THAT'S ONE REASON WE WERE ABLE TO DO THE BUDGET LAST YEAR AND ONE OF THE REASONS AND REASONABLY SO IN 02 YOU WILL BE ABLE TO THROUGH THE BUDGET WITHOUT MAKING MIDYEAR DECISIONS THAT ARE PAINFUL. I GUESS WHAT WE'RE SAYING IS I'M NOT SURE THAT WE CAN HOLD OFF EVERYTHING FOR 03. WE WILL HAVE TO MAKE SOME FUNDAMENTAL DECISIONS IN O 3. BUT THEY WILL TO TO EVAB ELABORATE ON THAT.

WE DID PUT MUCH OF THAT REVENUE TO CAPITAL EXPENDITURES OR ONE-TIME EXPENDITURES. FOR EXAMPLE, WE -- PRIOR -- IF YOU LOOK BACK IN THE MID '90'S, FROOMPL, THE AMOUNT OF CIP THAT THE GENERAL FUND ITSELF FUND R. FUNDED WAS VERY LOW, DOWN IN THE THREE MILLION DOLLAR RANGE. AND IN THE BOOM TIME IT GOT UP AS HIGH AS 25 MILLION IN ONE YEAR. I THINK THE OTHER THING THAT WE HAVE DONE WAS WHEN YOU LOOK BACK TO LAST YEAR, FISCAL YEAR 01 FOR THE CITY, THE END OF CALENDAR YEAR 2001 AND THE BEGINNING OF CALENDAR YEAR 2001, I THINK EVERYBODY ACROSS THE COUNTRY WAS PRETTY MUCH STUNNED BY HOW FAST THE ECONOMY WENT DOWN AT THAT POINT IN THE LAST QUARTER OF 2000. AND SO ONE OF THE THINGS THAT THE CITY MANAGER DID AT THE BEGINNING BACK IN JANUARY AND FEBRUARY OF 01 WAS TO WORK WITH THE DEPARTMENTS ON PUTTING TOGETHER A SAVINGS PLAN LAST YEAR FOR FISCAL YEAR 01 TO TRY TO CARRY US THROUGH THAT YEAR AND INTO THIS YEAR.

GARCIA: THANK YOU.

GOODMAN: COUNCILMEMBER SLUSHER?

SLUSHER: OH, THANK YOU, MAYOR PRO TEM. WHAT ELF OF -- SORRY. WHAT LEVEL OF DETAIL ARE WE WORKING WITH ON THE REVENUE FORECAST SIDE ON THIS GRAPH? I WOULD LIKE TO SEE WHAT IS PROJECTED AS THE PERCENTAGE INCREASES FOR THE VARIOUS DEPARTMENTS.

WE CAN DO THAT. WE'RE ESTIMATING FOR NEXT YEAR, WE'RE ESTIMATING A ONE PERCENT INCREASE IN SALES TAX, WHICH IS SLIGHTLY HIGHER THAN WHAT WE'RE ESTIMATING THIS YEAR. AND THEN WE'RE ESTIMATING A ONE PERCENT INCREASE IN SOME OF THE OTHER GENERAL FUND REVENUES.

SLUSHER: OKAY. BUT WHAT ABOUT THE EXPENDITURE SIDE, THE INCREASES IN EACH DEPARTMENT? THAT'S WHAT I WOULD LIKE TO SEE IN THE LONG-TERM, THE ONE THAT GOES THROUGH 2005.

OKAY.

SLUSHER: THAT'S MY QUESTION.

GOODMAN: LET ME JUST ASK A FEW CLARIFIERS, IF I COULD. BACK ON THE CHART, THE ALLIGATOR CHART, DID WE ALWAYS PROJECT KNOWING OUR EXPENSES, THAT OUR REVENUE WAS GOING TO INCREASE AT THAT SAME RATE?

YOU MEAN WHEN WE'VE DONE FIVE-YEAR FORECASTS IN THE PAST? WELL, WE HAVE TYPICALLY DONE A FIVE-YEAR FORECAST THAT INCLUDES BOTH REVENUES AND EXPENDITURES. I LOOKED BACK AT SOME OF THOSE HISTORICAL FORECASTS, AND AGAIN, I WOULD REMIND YOU, MAYOR PRO TEM, THAT THESE NUMBERS ARE EARLY. THIS IS THE EARLIEST IN THE YEAR THAT WE'VE EVER TRIED TO DO A FIVE-YEAR FORECAST. AND I THINK THERE ARE SOME THINGS THAT WILL HAPPEN OVER THE NEXT COUPLE OF MONTHS THAT MAY CHANGE THE NUMBERS. I'M NOT SURE WHICH WAY THEY'LL CHANGE. ONE OF THE THINGS WE HAVE TRIED TO BUILD INTO THIS ALL OF THE KNOWN INCREASES THAT WE'RE AWARE OF, FOR EXAMPLE, ON THE A.P.D. MEET AND CONEFER AND -- CONFER AND MAINTAINING OUR RATIO OF 1.9 OFFICERS AND SO ON. WE'VE TRIED TO PUG PLUG INTO THAT EVERYTHING WE'RE AWARE OF, BUT WE HAVE NOT RECEIVED FROM THE DEPARTMENTS THEIR FIVE-YEAR FORECASTS IN WHICH THEY DO AN ENVIRONMENTAL SCAN AND SAY WE THINK WE NEED TO ADD TO THOSE PROGRAMS AND SO ON. SO AT THIS POINT I DON'T KNOW HOW THE FINAL NUMBERS WILL COME OUT. BUT IN LOOKING AT HISTORICAL FIVE-YEAR FORECASTS, WE HAVE NOT HAD A GAP OF THIS SIZE.

GOODMAN: AND I KNOW SOME OF THAT IS BECAUSE OF SEPTEMBER 11TH, BUT I DON'T THINK IT CAN BE SUCH A DRAMATIC INCREASE IN EXPENDITURES THAT IT IS TOTALLY THE CAUSE OF THE HUGE INCREASE IN EXPENDITURES.

PART OF IT ARE THE ASSUMPTIONS THAT WE ARE MAKING ABOUT REVENUES. AND IT'S A DIFFICULT THING TO FORECAST THOSE, BUT IF YOUR REVENUES HAVE INCREASED SIGNIFICANTLY FOR A NUMBER OF YEARS, I GUESS THERE WOULD BE TWO WAYS OF LOOKING AT IT. ONE IS TO SAY THAT WILL CONTINUE OUT INTO THE FUTURE FOREVER, WHICH I DON'T THINK IS REALISTIC, AND THE OTHER IS TO SAY IT WILL LEVEL OFF AT SOME POINT AND GO THROUGH A COOLING OFF TIME.

GOODMAN: OKAY. AND THE OTHER THING I WANTED TO ASK ABOUT THE CHART IS THERE IS A GENTLE TREND UPWARD IN REVENUES, BUT IT'S PRETTY GENTLE, PRETTY FLAT, ACTUALLY. SO IS THAT THE PROJECT FROM THE ECONOMIC EXPERTS THAT REALLY -- OR DOES THIS REPRESENT A RETURN TO THE ECONOMY AT SOMEWHAT THE LEVEL IT WAS?

WHEN WE LOOK FORWARD TO FISCAL YEAR 03, I BELIEVE, THE PROJECTION MATCHES PRETTY CLOSELY WHAT WE HAVE WORKED WITH FROM JOHN. BEYOND THAT I'M NOT SURE IF IT DOES OR NOT. I WOULD HAVE TO GO BACK AND CHECK, MAYOR PRO TEM.

GOODMAN: OKAY. I WOULD LIKE TO TRY TO HAVE A COMPARISON BETWEEN WHAT THE ECONOMY WAS DOING BEFORE ALL THE DOWNTURNS ON THE CYCLE AND THE DOMINOES STARTED FALLING AND THE COMPARISON TO AT WHAT POINT IN THE FUTURE, IF WE HAVE IT PROJECTED HERE, WOULD THAT BE EQUAL WITH WHAT WAS? THE OTHER THING WAS JUST SOME TERMS I'M NOT SURE OF. ON ALTERNATIVE 3 WHEN YOU MENTIONED THE 4.8 ONE-TIME COST, NON-EQUIPMENT COST, WHAT ARE THOSE EXACTLY?

THE BULK OF THAT NON-EQUIPMENT ONE-TIME COSTS IS IN FACT THE -- THEY'RE NOT COSTS, IT'S A REVENUE LOST. IT'S THE SALES TAX LOSS OF 2.8 MILLION THAT WE'RE ANTICIPATING FOR THIS YEAR. AND THE LOSS OF THE COPS GRANT OF 1.5 MILLION.

GOODMAN: SO WHY IS THAT THAT -- WHAT IS ONE-TIME -- .

I'M SORRY?

GOODMAN: WHY WOULD THAT BE ONLY A ONE-TIME.

IN ERMS TERMS OF THE SALES TAX SHORTFALL, WE'RE CHARACTERIZING THAT AS ONE TIME BECAUSE IT IS AN UNUSUAL EVENT FOR ONE AUSTIN. WE HAVE NOT HAD A SALES TAX SHORTFALL IN A NUMBER OF YEARS, PERHAPS A DECADE. AND WE DO NOT EXPECT TO BUDGET FOR AN INCREASE IN SALES TAX SO AGGRESSIVELY THAT WE SEE Z A SHORTFALL IN THE FUTURE.

GOODMAN: OKAY. AND I HADN'T BEEN THINKING OF THAT. I HAD NOT THINKING OF THE LOSS OF THE GRANT, THOUGH. AREN'T WE GOING TO CONTINUE FUNDING THE OFFICERS THAT THAT GRANT ORIGINALLY FUNDED?

YES, WE ARE.

GOODMAN: SO THAT GRANT TECHNICALLY WOULDN'T BE A ONE ONE-TIME IF YOU'RE TALKING ABOUT THE LOSS OF IT.

IT'S A ONE-TIME LOSS OF REVENUE FOR THIS YEAR. WE WILL BUILD IN NEXT YEAR ANOTHER REVENUE SOURCE TO REPLACE THAT. TO REPLACE THE LOSS OF THAT COPS GRANT. OUR RECOMMENDATION THIS YEAR IS THAT THE FUNDING SOURCE FOR THAT BE THE TAX ANTICIPATION RATHER THAN AN REALLOCATION OF THE SAVINGS.

GOODMAN: SO WE ROLL IT INTO SOME OF THE GENERAL COSTS OF MEET AND CONFER AGREEMENTS.

IT WILL SIMPLY BE PART OF OUR PUBLIC SAFETY REQUIREMENTS FOR NEXT YEAR, YES.

GOODMAN: I DON'T KNOW IF IT'S POSSIBLE TO BREAK OUT SOME OF THE ASSUMPTIONS THAT YOU USED ON FORECASTING AND CHARTING, BUT IF IT'S POSSIBLE TO BREAK OUT THE ESTIMATED INCREASE IN SALES TAX THAT WE'RE USING FOR THOSE ASSUMPTIONS, I WOULD LIKE TO SEE THAT.

OKAY.

GOODMAN: AND THERE WAS ONE MORE. OH. THERE WAS SOMETHING THE CITY MANAGER SAID THAT I WAS WONDERING ABOUT. YOU MENTIONED THAT WE WOULD HAVE TO LOOK AT THE POSITIONS THAT HAVE BEEN HELD OPEN AND CONSIDER DELETING THEM AND THEN LOOKING AT THE PROGRAMS THAT THEY WERE APART OF. DOES THAT MEAN THAT KNOW WE DO HAVE THOSE PROGRAMS STILL IN PLACE AND ARE OPERATING THEM WITHOUT ALL THE PERSONNEL THAT WE WOULD NORMALLY, IN AN IDEAL IDEAL -- .

I THINK THERE'S NO QUESTION THAT THE SLOWDOWN IN HIRING HAS LEFT OPEN POSITIONS WHERE -- AND I'M GOING TO MAKE UP SOME NUMBERS. I HAVE NOT SEEN THE PROGRAMS. BUT YOU MAY HAVE FIVE PEOPLE DOING THAT PROGRAM AND YOU MAY HAVE TWO PEOPLE DOING THAT PROGRAM RIGHT NOW. AND WE ARE VERY SLOW IN HIRING THREE ADDITIONAL PEOPLE, BUT LET ME HASTE ENTO SAY WHY WE PUT THAT STANDARD IN PLACE. AND I WAS VERY CLEAR WITH THE DEPARTMENT HEADS LAST SUMMER. I SAID WHAT I DID NOT WANT TO HAVE HAPPEN IS THAT WE HIRED PEOPLE IN THE FALL AND WE WOULD BE CALLING THEM IN IN JUNE TO SAY, YOU NO LONGER HAVE A JOB AT THE CITY OF AUSTIN. I THOUGHT THAT WAS A TREMENDOUS DISSERVICE TO A HUMAN BEING. AND HERE'S WHY. WHEN YOU HIRE SOMEONE, THEY'RE GOING TO MAKE DMIMENT COMMITMENTS TO HOUSING TO BUYING CARS TO TAKING CARE OF THEIR DEPENDENTS AND IT WOULD BE A TRAVESTY TO HIRE THEM AND THEN SIX MONTHS LATER CALL THEM IN AND SAY WE DON'T HAVE ENOUGH MONEY TO KEEP YOU ON AT THE CITY. I DON'T THINK THAT'S THE RIGHT THING TO DO. THAT'S WHY WE'VE BEEN CAREFUL HIRING FOLKS, THAT THOSE CRITICAL POSITIONS WITHIN THE DEPARTMENTS THAT WHEN WE DO REDUCTIONS, THOSE WOULD BE THE POSITIONS THAT DEPARTMENTS WOULD WIEKLY SAY WE CAN'T REDUCE THOSE BECAUSE THEY'RE CRITICAL TO THE OPERATION OF THE CITY. I WANTED TO MINIMIZE TO THE DEGREE THAT WE COULD ANY LAYOFFS. AND I THINK THAT'S THE STANDARD -- BY THE WAY, I THINK THE DEPARTMENTS HAVE DONE A GREAT JOB. THE EMPLOYEES HAVE DONE A GREAT JOB. THEY'VE NOT COMPLAINED. I HAVE NOT HEARD COMPLAINTS FROM EMPLOYEES. IF THERE ARE TWO PEOPLE DOING SOMETHING THAT FIVE PEOPLE DO, THEY HAVE NOT COME AND COMPLAINED ABOUT IT. BECAUSE THEY UNDERSTOOD THE BOAT WE'RE IN AND THEY PITCHED IN AND HAVE DONE A GREAT JOB IN KEEPING THE SERVICE LEVELS TO THE DEGREE THAT WE COULD AND THE STANDARDS THAT WE HAVE EXPECTED.

GOODMAN: I UNDERSTAND AND I AGREE COMPLETELY. WHAT I WAS HOPING TO GET A FEEL FOR ARE THE KIND OF PROGRAMS THAT YOU WERE THINKING WOULD HAVE TO BE JUST ELIMINATED ENTIRELY. AND THE REASON I SAY THAT IS BECAUSE FOR THE MOST PART CITY EMPLOYEES ARE USED TO HAVING TO DO MORE THAN THEY REALLY SHOULD. THEY'RE ALL OVERWORKED FOR THE MOST PART. SO IF A PROGRAM IS UNDERSTAFFED, BUT FUNCTIONING, THEN I'M WONDERING IF THAT ALSO WOULD BE TO THE CHOPPING BLOCK OR IF THERE WOULD BE CONSIDERATIONS.

RIGHT NOW FROM MY STANDPOINT IT WOULD BE PREMATURE. I WOULD HAVE TO LOOK AT THE ANALYSIS WE'VE DONE FOR CORE. AND ONE THING, AND I'LL LEAVE IT TO JOHN AND RUDY TO ANSWER, I THINK THE FIRST PATHS SHOULD BE TO LOOK AT YOUR CONTRACTUALS. WHAT ARE THE THINGS THAT WE'VE CONTRACTED FOR TO BE DONE THAT WE -- THAT ARE REALLY NOT CORE. I MEAN, THERE ARE THINGS THAT WE FUNDED BECAUSE WE THOUGHT THOSE WERE THINGS THAT NEEDED TO BE FUNDED, BUT MAYBE THEY DON'T NEED TO BE FUNDED NOW. AND I THINK THAT'S WHERE YOU START. BECAUSE MOST OF THE FOLKS THAT WE HAVE HIRED DOING WORK BY AND LARGE ARE CORE. I MEAN, YOU'RE MAINTAINING PARKS, OPENING RECREATION CENTERS, MAINTAINING YOUR LIBRARIES, TAKING CARE OF YOUR LIBRARIES. YOU'RE PROVIDING MEDICINES AND THINGS OF THAT NATURE THROUGH THE HEALTH DEPARTMENTS. SO I REALLY THINK YOU NEED TO GO LOOK AT SOME OF THE CONTRACTUALS WE HAVE AND SAY IS THERE ANYTHING IN HERE WE OUGHT NOT BE FUNDING? AND I THINK YOU START THERE AND YOU SAY THIS IS WHAT THIS SAVES US. IS IT THAT ENOUGH? AND YOU SAY WHAT ARE SOME OF THE PROGRAMS THAT WE'RE DOING THAT IN THE END WOULD BE MARGINAL PROGRAMS, THEY'RE PROGRAMS THAT REALLY ARE SEMI CORE. AND YOU SAY ALL RIGHT, WE'LL ELIMINATE THOSE. AND ARE THERE EMPLOYEES THAT WE CAN MOVE FROM THAT INTO CORE PROGRAMS THAT WE COULD CONTINUE TO FUND SO YOU MINIMIZE LAYOFFS. I THINK THAT'S THE STEP APPROACH YOU TAKE -- AND THEN YOU SEE WHERE AM I IN THE BALANCE OF MY EQUATION. DID I BALANCE IT OR DO I NEED TO DO MORE? AND THAT'S WHY -- I THINK JOHN SAID IT'S MULTIFACETED. YOU'LL BE DOING REVENUE AND THAT'S WHAT THE TAN HELPS YOU DO. AND YOU'LL DO WHAT EXPENDITURE ADJUSTMENTS YOU CAN MAKE TO HELP LOWER THAT SLOPE. AND I THINK WITH THAT ANALYSIS WE REALLY WERE GOING TO PLAN ON DOING THIS SPRING WHEN THE DEPARTMENTS START SUBMITTING THEIR BUDGETS IN MAY AND THEN YOU WILL GET THE PRELIMINARY BUDGET AT THE END OF JUNE AND THAT'S THE DRAFT POLICY BUDGET WHERE YOU BEGIN TO SEE THE CHOICES THAT WE'RE TALKING ABOUT. AND THEN WE REALLY WANT -- I WON'T BE HERE, BUT THE COUNCIL AND TOBY AND THE STAFF WANT TO HAVE A GOOD DEBATE WITH THE COUNCIL TO SAY, WHAT DO YOU WANT TO SEE IF THAT FINAL BUDGET THAT WE PUT TO YOU AT THE END OF THE JULY OR FIRST OF ALL SO THAT YOU'RE ABLE TO ACHIEVE MOST OF THE POLICY GOALS OF THE COUNCIL?

GOODMAN: AND I THINK THAT'S GOING TO BE REALLY GOOD, REALLY BENEFICIAL. I THINK THE PUBLIC NEEDS TO KNOW ALMOST VIRTUALLY WHERE EVERY DOLLAR IS GOING SO THEY UNDERSTAND WHAT IT IS THAT WE'RE TALKING ABOUT AT ANY GIVEN MOMENT. BUT SOME TIME LATER IF YOU CAN THINK OF SPECIFIC DEPARTMENTS, PROGRAMS THAT ARE -- I DON'T WANT TO SCARE ANYBODY IN PUBLIC.

I KNOW.

GOODMAN: BUT I WOULD LIKE TO HAVE A FEEL FOR WHAT WE'RE TALKING ABOUT. AND THE ONLY OTHER ASSUMPTION THAT I WOULD LIKE TO SEE IF YOU CAN BREAK THAT OUT IS WHAT PERCENTAGE IN DOLLAR AMOUNT CAN WE ATTRIBUTE TO HOMELAND SECURITY IN THIS UPWARD TREND ON EXPENDITURES. THANKS, MAYOR.

GARCIA: MAYOR PRO TEM. FURTHER QUESTIONS? THIS ITEM WILL BE ON THE FEBRUARY THE 14TH AGENDA. AND IF THE COUNCIL DOES NOT ACT ON IT, IT WOULD BE ON THE FEBRUARY THE 28TH AGENDA. THAT'S THE LAST DAY THAT THE STAFF THINKS THAT WE CAN ACT ON IT. IF WE DON'T ACT ON IT BASICALLY WE'RE GOING TO OPTION 4 AUTOMATICALLY. SO -- .

MAYOR, IF I COULD, BECAUSE YOU ASKED JOHN AND I WANT TO MAKE SURE WE'RE CLEAR. YOU WANT US TO TAKE THAT OPTION 3 AND DISTRIBUTE SOME CUTS WITHIN THAT SO YOU COULD KIND OF SEE SOME OF THE BALANCES?

GARCIA: THAT COULD BE SOMETHING THAT YOU COULD LOOK AT BECAUSE THAT'S THE ONE THAT THAT -- THAT SPREADS OUT THE BURDEN OVER THREE CATEGORIES. YOU KNOW, LET'S SAY, FOR INSTANCE, IF THE TAX RATE INCREASE WOULD BE .75, THAT WOULD -- WHAT IS THE REDUCTION IN CATEGORY. SO WE TAKE THE 8 POINT SO MILLION AND SPREAD IT OVER FOUR DIFFERENT CATEGORIES OF REDUCTIONS OR INCREASES IN INCOME.

YES, SIR. WE WILL GET OUT A MEMO LATER THIS WEEK.

WE'LL WORK ON THAT OPTION.

GARCIA: YOU UNDERSTAND THAT AT THE ACTION -- WHEN WE TAKE ACTION AT THE COUNCIL MEETING, THE COUNCIL ON COULD ALSO DO SOME VARIATIONS, AND YOU NEED TO BE READY TO RESPOND AS TO WHAT EFFECT IT WOULD HAVE. BUT IF YOU WERE TO TAKE AND DO 3-A AND PUT, LET'S SAY, THE TAX INCREASE OF 75, YOU COULD GIVE THE COUNCIL AN IDEA AS TO WHAT HAPPENS TO THE REDUCTIONS UNDER DIFFERENT TAXING SCENARIOS.

WE WILL BE PREPARED TO DO THAT.

GARCIA: THANK YOU VERY MUCH. THANK YOU. WAYNE WIN THANKS, MAYOR, IT TAKES ALL THE SUSPENSE OUT OF IT. [LAUGHTER].

GARCIA: WE'RE TRYING TO AVOID SUSPENSE, COUNCILMEMBER. WE HAVE 20 MINUTES LEFT IN THE REGULAR SESSION, BUT I SUSPECT WE COULD ALSO GO INTO MAYBE HALF AN HOUR BEYOND THE NOONTIME. THE NEXT ITEM ON THE AGENDA IS THE ONE DEALING WITH THE AIRPORT, AND I THINK THAT THAT'S ONE PROBABLY THAT -- .

IT CAN GO VERY FAST, MAYOR. ALL OF YOU WHO ARE FAMILIAR WITH JIM SMITH KNOW THAT HE'S KNOTS ONE WHO IS VERBOSE. HE CAN USUALLY GET DONE VERY QUICKLY.

GARCIA: I'M TAKING THIS ONE UP FIRST BECAUSE THIS ONE HAS SOMETHING THAT NEEDS TO BE ADDRESSED.

AND YOU HAVE AN ITEM ON TOMORROW'S AGENDA AS WELL.

WOULD YOU LIKE ME TO GO NOW?

GARCIA: ASSISTANT CITY MANAGER CHIN, WELCOME.

THANK YOU, MAYOR. BECAUSE THE ENTERPRISE DEPARTMENT ARE ESSENTIALLY GOVERNMENT OWNED AND OPERATED BUSINESSES, OUR EXISTENCE AND ABILITY TO DELIVER OUR PARTICULAR SERVICE IS DEPENDENT ON HOW WELL WE RUN AND OPERATE, THAT IS TO SAY, OUR FINANCIAL AFFAIRS AS WELL. OUR BUSINESS AND HOW WELL WE CAN SUCCESSFULLY COMPETE WITH ANY PRIVATE SECTOR AND OTHER ENTITIES OFFERING LIKE SERVICES. THEREFORE THE STATE OF THE ECONOMY AT ANY MOMENT IN TIME CAN POTENTIALLY IMPACT OUR ENTERPRISE DEPARTMENTS IN WAYS MORE IMMEDIATE AND PERHAPS IN OTHER WAYS FAR REACHING THAN OTHER GOVERNMENT DEPARTMENTS. TODAY WE HAVE JIM SMITH, THE DIRECTOR OF AUSTIN-BERGSTROM INTERNATIONAL AIRPORT, AND CHARLES GATES, THE FINANCIAL DIRECTOR HERE TO PRESENT A THUMBNAIL SKETCH OF OUR FISCAL STATE OF THE AIRPORT. THEY WILL BE PRESENTING A COMPARISON OF WHAT OUR APPROVED BUDGET WAS, WHAT THE ACTUALS ARE AND WHAT OUR PROJECTIONS ARE FOR THIS ACCOUNTING FOR THE DRAMATIC AND PRETTY MUCH UNFORESEEN CHANGES IN THE ECONOMY.

MAYOR AND COUNCILMEMBERS, THE PRESENTATION AS WE UNDERSTOOD IT IS YOU'RE LOOKING FOR PRESENTATIONS ON THE ENTERPRISE FUNDS AND THE STATUS AS A RESULT OF THE FIRST QUARTER. WE WOULD LIKE TO WALK YOU THROUGH THAT TODAY. BEFORE WE GET INTO THE SLIDES, I JUST WANT TO REMIND EVERYBODY, BECAUSE SOME PEOPLE THAT I'VE TALKED TO SINCE GOING OUT TO THE AIRPORT DON'T REALLY UNDERSTAND THE BUSINESS MOENDS FOR THE AIRPORT AND THE FACT THAT IT DOES NOT RELY ON TAX FUNDS AND JUST EXPLAIN THAT THE BUSINESS MODEL FOR THE AIRPORT FUNDAMENTALLY RELIES ON FUNDING ENOUGH REVENUE FROM THE AIRPORT FROM A VARIETY OF REVENUE SERVICES. AIRLINES BEING THE MAJOR ONE, BUT FROM PARKING, FROM ADVERTISING, FROM CONCESSIONS, FROM LEASES OF OUR LAND, ALL OF THOSE THINGS TO GENERATE REVENUE TO COVER OUR OPERATING EXPENSES AND SECURITY COSTS. AND THEN ALSO TO PAY OUR DEBT SERVICE, BECAUSE WE INCURRED LARGE AMOUNT OF DEBT TO BUILD THE AIRPORT OUT THERE. AND HOPEFULLY HE END OF THAT, TO GENERATE ENOUGH PROFIT AT THE END OF THE YEAR THAT THAT PROFIT MOVES OVER TO THE CAPITAL FUND. AND THAT CAPITAL FUND IS CRITICAL FOR THE AIRPORT, JUST LIKE EVERY AIRPORT AROUND THE COUNTRY, BECAUSE THAT'S THE MONEY USED TO KEEP THE AIRPORT UP TO DATE SO IT CONTINUES TO BECOME THE GATEWAY FOR EVERY COMMUNITY, AND EVERY COMMUNITY WANTS TO HAVE A GOOD AIR AIRPORT. WHAT PEOPLE FORGOTTEN IS THAT BUSINESS MODEL DOESN'T ALWAYS WORK PERFECTLY AND A LOT OF TIMES AIRPORTS, LIKE CONVENTION CENTERS THAT AREN'T OPERATING SUCCESSFULLY, HAVE TO FALL BACK ON THE GENERAL FUND OF THE COMMUNITY THAT THEY'RE FROM TO COVER THEIR OPERATING EXPENSES OR TO HELP PAY THE DEBT FOR IMPROVEMENTS OUT AT THE AIRPORT. OBVIOUSLY WE DO NOT WANT THAT TO HAPPEN AT THE AIRPORT, SO WE HAVE TO TAKE ACTIONS TO DEAL WITH THESE TYPES OF THINGS, BUT FUNDAMENTALLY THAT COULD HAPPEN AND HAS HAPPENED AROUND THE COUNTRY. THE FIRST SLIDE TRIES TO GO OVER WHAT THE APPROVED REVENUE BUDGET WAS FOR THE AIRPORT AT THE BEGINNING OF THE YEAR. WHEN WE BROUGHT THE BUDGET TO YOU OVER THE SUMMER AND YOU APPROVED IT, WE WERE ANTICIPATING THAT THE AIRPORT WOULD BRING IN FOR THIS YEAR 76 MILLION DOLLARS IN REVENUE. AND YOU CAN SEE THE BREAKDOWN AFTER THE AIRLINE, PARKING AND ALL OTHER REVENUE. ALL OTHER REVENUE AGAIN BEING THE ADVERTISING, RENTAL CARS CONCESSION AND ALL OF THAT. AND FROM THAT YOU CAN SEE THAT APPROXIMATELY 59% OF THE REVENUE THAT WE GET OUT AT THE AIRPORT OR ANTICIPATING TO GET OUT AT THE AIRPORT COMES FROM NON-AIRLINE FUNCTIONS. JUST ONE OTHER ELEMENT OF EXPLANATION. WE CAN RECOVER OUR COSTS FROM THE AIRLINES. BASICALLY THAT PORTION OF OUR EXPENDITURES THAT WE CAN ALLOCATE TO AIRLINES, EVEN IF OUR RATES ARE LOW THIS YEAR, WE MAKE IT UP THE FOLLOWING YEAR. SO WE REALLY DON'T RUN A LARGE DEFICIT IN DEALING WITH THE AIRLINES. WHAT WE DO HAVE THE POTENTIAL FOR A DEFICIT IS ALL THE COSTS THAT WE CAN'T ALLOCATE TO AERIALS AND THAT'S WHERE WE NEED ALL THE INDEPENDENT REVENUE SOURS TO COME FROM TO HELP US COVER THOSE EXPENSES. THE NEXT SLIDE SHOWS WHAT OCCURRED AS A RESULT OF SEPTEMBER 11TH. IMMEDIATELY AFTER SEPTEMBER 11TH IT WAS CLEAR THAT THINGS WERE GOING TO CHANGE AND THERE WAS GOING TO BE REDUCED AMOUNT OF TRAVEL, SO THE STAFF GOT TOGETHER AND WE PLAYED OUT A VARIETY OF SCENARIOS OF ESTIMATING HOW MUCH THE AIRPORT'S REVENUE WOULD BE REDUCED. WE SETTLED WITHIN TWO WEEKS OF SEPTEMBER 11TH ON A SCENARIO THAT WE WOULD LOSE APPROXIMATELY 20% OF OUR REVENUE. THAT MEANT WE WOULD LOSE ABOUT 15 MILLION DOLLARS IN REVENUE FOR THE YEAR OUT AT THE AIRPORT. THAT ESTIMATE IS ACTUALLY -- HAS ACTUALLY PLAYED OUT BECAUSE NOW NATIONALLY ACROSS THE COUNTRY IT IS ESTIMATE THAT HAD ALL AIRPORTS AROUND THE COUNTRY ARE GOING TO LOSE ABOUT 19% OF THEIR REVENUE FOR THE YEAR. SO THE TARGET THAT WE ADOPTED IMMEDIATELY AFTER SEPTEMBER 11TH IS FAIRLY ACCURATE. NOW, LOSING THE 15.2 MILLION DOLLARS, THAT ESSENTIALLY WIPED OUT THE PROJECTED PROFIT THAT WE WOULD HAVE AT THE END OF THE YEAR. AND AT THE BEGINNING OF THE YEAR WE WERE PROJECTING AN 11-MILLION-DOLLAR PROFIT. FOR IF WE'RE GOING TO LOSE 15 MILLION DOLLARS IN REVENUE AND WE WERE ANTICIPATING AN 11-MILLION-DOLLAR PROFIT, SO JUST BREAK EVEN WE WERE GOING TO HAVE TO GO IN AND CUT A LOT OF EXPENDITURES OUT OF THE BUDGET.

GARCIA: JIM, IS THAT PROFIT ONE THAT IS REQUIRED FOR COVERAGE ABOUT OUR BOND SET DEFENSE COVERAGE?

THAT'S PART OF IT. IT'S ALSO TO -- IN ORDER FOR US TO MATCH FUTURE FEDERAL GRANTS TO HELP US IMPROVE THE AIRPORT, THAT'S WHERE THE MONEY COMES FROM AS WELL. SO THE PROFIT IN GENERATING RESERVES WITH THE AIRPORT IS CRITICAL TO BUILDING THE AIRPORT FOR THE FUTURE ESSENTIALLY.

GOODMAN: OKAY.

THE NEXT SLIDE JUST TRIES TO SHOW YOU BASED ON THE FIRST QUARTER WHAT THE REVENUE LOOKED LIKE. AGAIN, WE WERE ANTICIPATING 76.1. WHEN WE PUT THE BUDGET TOGETHER WE IMMEDIATELY CUT THE TARGET TO 60.9 BASED ON A 20% REDUCTION AND FOR THE FIRST QUARTER WE'VE COLLECTED 1676 MILLION DOLLARS IN REVENUE AND THAT SHOWS YOU A STRAIGHT LINE PROJECTION OF WHERE THE REVENUE COULD COME FOR THE YEAR. I WANT TO CAUTION YOU THAT THAT ISN'T A GOOD WAY TO PROJECT THIS FOR THE BALANCE OF THE YEAR. WE JUST DID THIS TO BE VERY SIMPLE. AND PART OF THE REASONS WHY IT'S NOT A GOOD IDEA IS THE SECURITY COSTS ARE DEFINITELY GOING TO GO UP, WE JUST CAN'T QUANTIFY HOW MUCH THEY'RE GOING TO GO UP ON THIS STAGE OF THE GAME BECAUSE THE TRANSPORTATION SECURITY ADMINISTRATION REALLY HASN'T BEEN CREATED YET AND THEY'RE THE ONES THAT ARE GOING TO DICTATE TO US WHAT OUR COSTS ARE GOING TO BE AND HOW WE WILL OPERATE IN THE FUTURE. THE OTHER ELEMENT THAT ISN'T TAKEN INTO CONSIDERATION HERE IS ONE OF THE NEW OFF SITE PARKING FACILITIES, THE LARGEST, HASN'T OPENED YET, BUT IT'S ANTICIPATED TO OPEN IN THE NEXT COUPLE OF MONTHS. THAT'S CLEARLY GOING TO REDUCE SOME OF OUR PARKING REVENUE. SO WE CAN'T STRAIGHT LINE PROJECT THAT WE'RE GOING TO COLLECT THE SAME AMOUNT OF PARKING REVENUE FOR THE BALANCE OF THE YEAR. THE NEXT SLIDE TALKS ABOUT OPERATING EXPENSES. AND IT GOES BACK TO AGAIN POST SEPTEMBER 11TH. IMMEDIATELY AFTER THIS OCCURRED, WE ROUNDED UP ALL OF THE KEY STAFF AND THE KEY MANAGERS AND SAID, WELL, WE'RE GOING TO LOSE 15 MILLION DOLLARS, WE'RE GOING TO HAVE TO DIG INTO THE BUDGET AND FIND SOME SAVINGS. AND OUR GOAL WAS TO TRY AND COME UP WITH ESSENTIALLY A NO-PROFIT BUDGET. WE WERE GOING TO LOSE 15 MILLION DOLLARS IN REVENUE AND WE WERE ANTICIPATING ORIGINALLY 11-MILLION-DOLLAR PROFIT AND THEN WE WANTED TO TRY AND FIND AT LEAST 4.3 MILLION DOLLARS IN THE BUDGET TO CUT OUT, AT LEAST TO DO A BREAK EVEN. AND WE THOUGHT WE COULD HANDLE THAT WITHOUT DOING ANY LAYOFFS OR ANYTHING IMMEDIATELY. AND THE STAFF DID AN EXCEPTIONAL JOB OF GOING IN AND FINDING THINGS THAT WE COULD EITHER DELAY OR DEFER OR ACTUALLY CUT OUT OF THE BUDGET AND WE WERE ABLE TO SET THE TARGET, AGAIN 4.3 MILLION DOWN. FOR THE FIRST QUARTER YOU CAN SEE WHAT OUR EXPENDITURES WERE. AND THAT BY CONTINUING TO HOLD DOWN EXPENSES, SO FAR FOR THE FIRST QUARTER WE ARE BELOW OUR TARGET, SO THE STAFF HAS BEEN DOING AN EXCEPTIONAL JOB OF TRYING TO HOLD DOWN THE COSTS AT THE AIRPORT. AND AGAIN, THAT'S VERY SIMILAR TO THE DISCUSSION THAT YOU JUST HAD IN THE SENSE THAT THERE'S A LOT OF WORK GROUPS THAT ARE OPERATING WITH FEWER PEOPLE THAN THEY WOULD LIKE TO OPERATE WITH OR NEED TO OPERATE WITH, BUT THEY'RE DOING AN EXCEPTIONAL JOB OF RECOGNIZING WHAT IS GOING ON. AS A MATTER OF FACT, AFTER SEPTEMBER 11TH WE WENT AROUND AND VISITED WITH EVERY WORK GROUP ON EVERY SHIFT AND EXPLAINED TO THEM THE FINANCIAL MODEL FOR THE AIRPORT SO THEY CLEARLY UNDERSTOOD IT AND WHAT THEIR ROLL WAS IN HELPING US ACHIEVE THE TARGET THAT WE NEEDED TO DO.

GARCIA: MR. SMITH, LET ME ASK YOU ANOTHER QUESTION. WHEN YOU TALK ABOUT OPERATING EXPENSES, THIS DOES NOT INCLUDE DEBT SERVICE?

NO, THIS WAS JUST OPERATING SENSE EXPENSES. THE DEBT SERVICE OBVIOUSLY STAYED THE SAME. THERE'S NOTHING WE COULD DO TO REDUCE THAT.

GARCIA: WHAT IS THE DEBT SERVICE?

IT'S APPROXIMATELY 20 MILLION DOLLARS.

.

GARCIA: SO WHEN YOU WENT FROM 40 TO 36, YOU ACTUALLY KEPT OUR EXPENSES AT AROUND 56 AND YOU WERE BUDGETING REVENUE AT 60. SO YOU WERE TALKING ABOUT A FOUR-MILLION-DOLLAR PROFIT?

NO, BECAUSE OUT OF THAT IT STILL TRANSFERS TO THE CITY THAT WE DO AND ALL THAT THAT MADE UP THE DIFFERENCE.

GARCIA: OKAY SO. WHEN YOU DID THE 60 REVENUE BUDGET, YOU BASICALLY WERE JUST OPERATING AT BREAK EVEN?

BREAK EVEN. THAT WAS THE GOAL AT THAT TIME.

> SO IT'S 36 PLUS 24 DEBT SERVICE PLUS TRANSFERS TO THE CITY OF ABOUT FOUR MILLION TO GET TO THE 60?

APPROXIMATELY. THOSE ARE ROUGHLY THE NUMBERS.

GARCIA: OKAY.

THE NEXT SLIDE JUST TRIES TO SHOW YOU IN TERMS OF WEEKLY FLIGHTS WHAT'S OCCURRED. OBVIOUSLY WHEN SEPTEMBER 11TH OCCURRED, THE AIRLINES IMMEDIATELY CUT BACK. GENERALLY THEY DID A 20% CUT ACROSS THE BOARD' ON ALL OF THEIR FLIGHTS. AND ALSO WE NEVER QUITE HIT 20%. RIGHT NOW WE'RE DOWN ABOUT 13% IN OUR FLIGHTS. AND THIS CAN SHOW YOU WHICH AIRLINES CUT WHICH FLIGHTS. THE AIRLINES TOOK IT REALLY AS AN OPPORTUNITY ALSO TO CUT BACK ON THEIR MARGINAL FLIGHTS. ONCE THE ECONOMY PICKS UP, I DON'T THINK YOU CAN ASSUME THAT WE'RE GOING TO GET BACK ALL OF THE FLIGHTS THAT WE HAD PREVIOUSLY BECAUSE THE AIRLINES ARE LOOKING MUCH HARDER NOW AT EACH ONE OF THEIR FLIGHTS AND MAKING SURE THAT THEY GENERATE MONEY. SO IT'S GOING TO BE HARDER TO GET BACK THE NUMBER OF FLIGHTS THAT WE HAD PREVIOUSLY. THE NEXT SLIDE ON TOTAL PASSENGERS JUST TRIES TO ILLUSTRATE WHERE WE ARE WITH THE PASSENGER TRAFFIC RELATIVE TO THE SAME MONTHS FOR THE PREVIOUS TWO YEARS. AND GENERALLY YOU CAN SEE THAT THE TRAFFIC IS DOWN. OUR NUMBERS FOR THE FIRST QUARTER, OUR TRAFFIC IS DOWN 15% FROM WHERE IT WAS THE PREVIOUS QUARTER. THAT'S PASSENGER TRAFFIC. OUR CARGO TRAFFIC IS DOWN 25%. FROM WHERE IT WAS THE PREVIOUS QUARTER. THOSE ARE SIGNIFICANT NUMBERS BECAUSE YOU GENERATE A LOT OF REVENUE OFF OF THOSE 15% PASSENGERS THAT ARE NO LONGER COMING AND THE 25% CARGO WHICH DIDN'T SHOW UP. THE NEXT SLIDE JUST TRIES TO TOUCH ON A COUPLE OF KEY ISSUES THAT I WOULD LIKE TO GIVE YOU SOME INFORMATION ON. CLEARLY THE AIR INDUSTRY IS GOING THROUGH A MAJOR SHAKEOUT. EVERY ONE OF THE AIRLINES IS REASSESSING THEIR BUSINESS MODEL, WHAT THEY SHOULD BE DOING. THERE'S TALK OF A VARIETY OF MERGERS WHERE THE BIG AIRLINES ARE I GUESS TRYING TO ABSORB SOME OF THE SMALLER AIRLINES. THERE'S BANKRUPTCIES, A NUMBER OF AIRLINES ON THE EDGE OF BANKRUPTCY. YOU JUST SAW YESTERDAY'S PAPER THEY TALK ABOUT THE LARGEST CARRIER IN THE COUNTRY, UNED, IS ON THE VERGE OF POTENTIAL BANKRUPTCY UNLESS THEY CAN DO SOMETHING SUCCESSFULLY. UNITED.

WE'VE ALREADY HAD TWA GO BANKRUPT AND THERE'S A NUMBER OF OTHER AIRLINES. AND THE IMPACT ON THE AIRPORT IS OBVIOUSLY WE'RE LEASING SPACE AND GETTING REVENUE FROM ALL OF THESE PEOPLE. SO AS THEY MERGE AND USE LESS COUNTER SPACE, LESS GATE, WE LOSE REVENUE. AND TO THE DEGREE THEY GO BANKRUPT, THEN WE'RE LEFT WITH BILLS UNPAID, THE CITY IS THE ONE HOLDING THE BAG ON THOSE BECAUSE IT'S VERY DIFFICULT TO RECOVER ANYTHING ONCE SOMEBODY GOES BANKRUPT. SO THERE'S A LOT OF CHANGES ON THE HORIZON THAT WE CAN'T PREDICT RIGHT NOW THAT ARE GOING TO OCCUR IN THE AIRLINE INDUSTRY. IN TERMS OF AIR CARGO, THEY'RE GOING THE SAME THING. THERE'S A TREMENDOUS SHAKEOUT GOING ON IN THE CARGO INDUSTRY ABOUT WHEN THEY SHOULD BE TARGETING AND WHO THE PLAYER ARE GOING TO BEMENT. ONE OF THE SHORT-TERM THINGS THAT IS AFFECTING US IS THE SHIFT FROM AIR CARGO TO TRUCK TRAFFIC. BASICALLY IF YOU CAN -- IF YOUR TRIP IS WITHIN 500 MILES, IT'S GOING ON A TRUCK NOW AS OPPOSED TO A PLANE BECAUSE THE PRICE IS SO MUCH CHEAPER. IT'S ABOUT 25% TRIPPER SHIPPING IT ON A TRUCK. SO IT'S NOT UNUSUAL FOR THEM TO SHIP IT TO LA AND THEN FLY IT FROM LA TO TAIWAN OR WHEREVER IT IS THAT THEY NEED TO DO THAT. SO TRUCK TRAFFIC IS TAKING AWAY A LOT OF AIR CARGO TRAFFIC. THE THIRD ELEMENT IS RATE RELIEF. OBVIOUSLY EVERYBODY HAS BEEN HURT BY SEPTEMBER 11TH AND THE DROP IN THE ECONOMY. AND AS ANTICIPATED, EVERYBODY COMES TO THE CITY LOOKING FOR RELIEF. SO EVERY ONE OF THE CONCESSIONAIRES OR PEOPLE THAT WE'RE DOING BUSINESS WITH IS CONSTANTLY APPROACHING US SAYING WE NEED A BREAK. SO YOU NEED TO ABSORB OUR PROBLEMS ON TO YOUR SLATE. WELL, AS LONG AS THE AIRPORT'S GOING TO REMAIN AS AN ENTERPRISE IF FUND, THEN OUR EXPECTATION IS WE DON'T LEAN ON THE GENERAL FUND, WE NEED TO WORRY ABOUT WHETHER WE'RE BRINGING IN SUFFICIENT INCOME TO COVER OUR EXPENSES. SO WE HAVE A DIFFICULT TIME DEALING WITH THOSE REQUESTS FROM THE CONCESSION HEIRS BECAUSE THE BOTTOM LINE IS WE CAN'T AFFORD TO BE OFFERING RENT BREAKS. THE FOURTH ELEMENT THERE, WHICH I JUST MENTIONED PREVIOUSLY, IS THE PARKING COMPETITION. WHEN THE AIRPORT FIRST OPENED UP, THE AIRPORT HAD A MONOPOLY ON THE PARKING SO EVERYBODY WAS GOING TO THE AIRPORT AND THEY CAME TO AIRPORT PARKING FACILITIES. NOW THERE ARE SEVERAL PRIVATE LOTS. ANOTHER ONE ABOUT TO OPEN. IN THE LONG-TERM THOSE ARE GOOD THINGS. IT GIVES THE COMMUNITY MORE CHOICES TO FIND OUT WHERE TO PARK AND THERE'S SOME COMPETITION ON RATES. HOWEVER, IN THE SHORT-TERM, ALL OF THAT WE'LL BE COMPETING FOR THE SAME MARKET AND OBVIOUSLY THERE WILL BE RATE WARS AND THE CITY WILL NOT BE COLLECTING THE SAME LEVEL OF REVENUE OR PROJECTING THE INCREASE IN REVENUE THAT THEY WERE PRIOR TO THOSE LOTS BEING OPEN. THE ECONOMY IS OBVIOUSLY, YOU JUST WENT THROUGH A DISCUSSION OF HOW THE ECONOMY IS AFFECTING THIS, IT'S AFFECTING THE AIRLINE INDUSTRY AND THE AIRPORTS AS WELL. THE FINAL ONE I PUT ON THERE IS SECURITY. WE CAN TALK ABOUT SECURITY A LITTLE BIT, BUT THE BIGGEST PROBLEM WITH SECURITY RIGHT NOW IS NOBODY HAS ANY ANSWERS AND NOBODY IN THE FEDERAL GOVERNMENT CAN GIVE US A STRAIGHT ANSWER AT THIS STAGE OF THE GAME OF WHERE ALL OF THIS IS GOING. THEY ARE BUSY TRYING TO CREATE A 40,000-PERSON DEPARTMENT OVERNIGHT CALLED THE TRANSPORTATION SECURITY ADMINISTRATION, WHICH WILL DICTATE TO AIRPORTS HOW THEY WILL OPERATE, HOW MANY LAW ENFORCEMENT OFFICERS THEY WILL HAVE, HOW MANY SECURITY AGENTS, WHAT THE PRACTICES ARE GOING TO BE, HOW MANY EXPLOSIVE DETECTION MACHINES YOU'RE GOING TO NEED IN YOUR AIRPORT. AND JUST TAKE THAT ONE EXAMPLE, I DON'T KNOW IF YOU'RE FAMILIAR WITH, BUT THE EXPLOSIVE DETECTION MACHINES ARE ABOUT THE SIZE OF A SUBURBAN. AND IF WE WERE TO HAVE THEM AVAILABLE TODAY TO PUT THEM INTO THE AIRPORT, WE WOULD NEED 17 OF THEM. WE WOULD HAVE TO COMPLETELY REDESIGN THE TERMINAL JUST TO ACCOMMODATE THESE 17 EXPLOSIVE DETECTION MACHINES. YOU'RE TALKING MASSIVE CAPITAL EXPENDITURES AND EXPENSES TO ACCOMMODATE THIS TYPE OF MACHINERY IN AIRPORTS. RIGHT NOW THESE MACHINES ARE NOT AVAILABLE BECAUSE YOU NEED SEVERAL,000 OF THEM TO COVER THE AIRPORTS AROUND THE COUNTRY AND THEY ONLY HAVE A COUPLE OF HUNDRED PRODUCED NOW AND THERE'S ONLY TWO APPROVED MANUFACTURERS. SO IT'S NOT LIKELY THAT IN THE NEXT FOUR OR SIX MONTHS THAT WE'RE GOING TO BE ASKED TO DO THIS, BUT IT IS ON THE HORIZON AND WE'RE GOING TO HAVE TO DO IT. SO BESIDES INCREASED OPERATING EXPENSES FOR ADDITIONAL LAW ENFORCEMENT PERSONNEL, THERE ARE TREMENDOUS CAPITAL EXPENSES ON THE HORIZON FOR THE WAY THE AIRPORT OPERATES AND TAKES IN SOME ADDITIONAL SECURITY EQUIPMENT.

GOODMAN: COULD I ASK A QUESTION HERE?

MAYOR GARCIA: SURE, MAYOR PRO TEM.

GOODMAN: WHO ARE THE TWO APPROVED MANUFACTURERS AND IS IT F.A.A. WHO APPROVES THEM?

YES, F.A.A. APPROVES THE MANUFACTURERS. THE MANUFACTURERS BRING THEIR EQUIPMENT TO F.A.A. AND GO THROUGH A TESTING PROCESS, LENGTHY TESTING PROCESS, KIND OF LIKE FDA. AND ONCE THEY ARE APPROVED, THEN THE F.A.A. ESSENTIALLY BUYS THE EQUIPMENT AND DELIVERS IT TO THE AIRPORT FOR INSTALLATION. SO F.A.A. IS ACTUALLY THE PURCHASER OF THESE PIECES OF EQUIPMENT TOO. NOW, THERE ARE A NUMBER OF MANUFACTURERS IN EUROPE THAT HAVE THE SAME TYPE OF EQUIPMENT THAT HAVE MET THOSE STANDARDS THAT ARE GOING THROUGH THE PROCESS NOW AT F.A.A., BUT HAVE NOT BEEN APPROVED YET. SO WE'RE HOPEFUL THAT THE MARKETPLACE WILL INCREASE AND THE TECHNOLOGY WILL IMPROVE BY THE TIME IT GETS TO OUR AIRPORT SO WE MAY NOT HAVE TO GO THROUGH QUITE THE EXPENSE. I'LL GIVE YOU AN EXAMPLE. THE THROUGH PUT ON THE BIGGEST PIECE OF MACHINERY NOW IS ONLY 400 BAGS AN HOUR. WE WOULD NEED A WHOLE LOT MORE THAN THAT OTHERWISE THE LINES WOULD BE RIDICULOUSLY LONG AS THE PEOPLE WAIT FOR THE BAGS TO GO THROUGH THAT. BUT I THAT'S NOT A SITUATION UNIQUE TO AUSTIN. IT'S A PROBLEM THROUGHOUT THE COUNTRY AND AND EVERY COUNTRY IS DEALING WITH THAT ISSUE RIGHT NOW.

. THE LAST SLIGHT SLIDE ON THERE TOUCHES ON THE TOTAL SECURITY COST. TO DATE WHAT WE KNOW WE'RE GOING TO HAVE TO DO FOR THE BALANCE OF THE YEAR IS GOING TO INCREASE OUR OPERATING EXPENSES ABOUT 1.2 MILLION FOR THE YEAR JUST DIRECTLY RELATED TO SECURITY. NOW, THE FEDERAL GOVERNMENT HAS COMMITTED TO TRYING TO PROVIDE SOME GRANTS TO HELP OFFSET SOME OF THIS, BUT WE DON'T KNOW WHAT GRANT CATEGORIES THEY WILL BE OR HOW MUCH IS POTENTIALLY GOING TO BE FUNDED IN GRANTS. WE'RE OBVIOUSLY APPLYING FOR THOSE AND GETTING IN OUR APPLICATION, BUT WE HAVE NO ANSWERS ON A LOT OF THINGS AT THIS STAGE OF THE GAME. SO IN SUMMARY AT THIS STAGE OF THE GAME, ABOUT FOUR MONTHS AFTER SEPTEMBER 11TH, AS FAR AS AIRPORTS GO AROUND THE WORLD, WE'RE IN A VERY SHORT-TERM -- AS IN THE NEXT TWO TO THREE YEARS, STATE OF UNCERTAINTY RELATIVE TO OUR FINANCIAL MODEL OF WHERE'S THE MONEY GOING TO COME FROM IN ORDER TO PAY THE OPERATING COSTS BECAUSE ALL AIRPORTS HAVE HIGH FIXED COSTS. IF ONE OF OUR CARRIERS LEFT, WE STILL HAVE THOSE GATES TO MAINTAIN AND EVERYTHING ELSE LIKE THAT. WHEN PASSENGER TRAFFIC FALLS OFF, WE CAN'T CLOSE SOME OF THE RESTROOMS AND THINGS LIKE THAT. SO WE HAVE HIGH FIXED COSTS AND WE RELY ON MULTIPLE SOURCES OF REVENUE IN ORDER TO COVER THOSE. WE WILL CONTINUE TO DO EVERYTHING WE CAN TO MAXIMIZE THE REVENUE. WE'VE BEEN VERY AGGRESSIVE IN TRYING TO HOLD DOWN COSTS. AND WE WILL CONTINUE TO DO THAT. SO I'M VERY OPTIMISTIC THAT WE WILL SUCCEED. AND PART OF THAT IS JUST BASED ON AUSTIN ITSELF. AUSTIN WILL CONTINUE TO GROW AND WE WILL SNAP OUT OF THIS AND GET BACK TO A NORMAL RATE OF GROWTH. BUT EVEN WHEN WE HIT THAT, IT WILL BE AT A HIGHER EXPENSE MODEL BECAUSE CLEARLY SOME SECURITY COSTS AND CAPITAL CHANGES WILL BE MADE AT THE AIRPORT.

GARCIA: QUESTION, JIM. THE ORDINANCE THAT BE PROPOSED FOR ACTION AT TOMORROW'S MEETING, I THINK, IS, THEY TELL ME, DIFFERENT THAN WHAT WAS CONSIDERED BY THE AIRPORT ADVISORY COMMISSION. THAT THAT ONE, AS I READ THE REPORT OF THE MEETING, THAT ONE TALKED ABOUT PUTTING AN EIGHT PERCENT GROSS REVENUES. AND AS I LOOK AT THE -- AS I LOOK AT THE MINUTES, WHEREVER THEY ARE. HERE THEY ARE. THE AGENDA ITEM 3-C SAYS REVISED ORDINANCE FOR OFF AIRPORT PARKING LOTS TO EIGHT PERCENT OF GROSS RECEIPTS. THAT'S WHAT THEY CONSIDERED AND THEY PASSED IT ON A VOTE OF SEVEN TO ZERO WITH TWO ABSENTEES. THIS ORDINANCE THAT I ALSO HAVE IN THE BACKUP IS A LITTLE BIT DIFFERENT BECAUSE IT SAYS IT'S EIGHT PERCENT -- THE GREATER OF EIGHT PERCENT OF GROSS REVENUES RECEIVED BY THE OFF-SITE PARKING OPERATOR OR A FEE PER DAY FOR EACH AVAILABLE PARKING SPACE. SO THIS PARTICULAR ONE THE AIRPORT ADVISORY COMMITTEE DID NOT CONSIDER?

THAT'S TRUE. THAT WAS ADDED AV WE HAD TAKEN THE ITEM TO THE AIRPORT ADVISORY COMMITTEE. WHEN WE TOOK IT TO THE ADVISORY COMMISSION, WE ONLY HAD THE EIGHT PERCENT NUMBER IN THERE. WE EXPLAINED TO THE COMMISSION THAT THAT EIGHT PERCENT NUMBER WAS BASED ON TWO THINGS. ONE IS WHEN ALL OF THIS OCCURRED AND I INITIATED A RENEW OF ALL OF OUR REVENUE SOURCES, WE TURNED UP THAT THE ORDINANCE THAT WAS PUT IN PLACE TO DEAL WITH THIS HADN'T BEEN ADDRESSED SINCE 1992. SO IT WAS BETTER THAN 10 YEARS OLD AND CLEARLY OUTDATED. AND WHEN WE DID THE RESEARCH OF WHERE DO AUSTIN'S RATES COMPARE WITH OTHER AIRPORTS, WE FOUND THAT WE WERE WOEFULLY UNDERPRIZING PRICING THAT PARTICULAR SERVICE.

GARCIA: I UNDERSTAND. MY POINT IS DO WE NEED TO GO BACK TO THE AIRPORT ADVISORY COMMISSION TO HAVE THEM LOOK AT THE PROVISION THAT HAS TO DO WITH THE TWO OPTIONS, THE GREATER OF EIGHT PERCENT OF GROSS REVENUE OR 15%?

THAT'S YOUR CHOICE AND I WILL BE HAPPY TO DO THAT IF YOU WANT TO POSTPONE THE ITEM FOR TOMORROW AND HAVE US GO BACK BEFORE THE AIRPORT ADVISORY BOARD, WE'LL BE HAPPY TO DO THAT.

GARCIA: DO YOU KNOW WHAT THE REVENUE IMPACT IS UNDER EITHER ONE OF THOSE TWO SCENARIOS?

FOR THE AIRPORT?

GARCIA: EIGHT% PERCENT OF GROSS AS OPPOSED TO 15% PER DAY.

GENERALLY, AND I'LL LET CHARLES TALK ABOUT THIS MORE SPECIFICALLY IF YOU WANT THE DETAILS, BUT GENERALLY THE 15 CENTS PER DAY AT ABOUT A 40% OCCUPANCY RATE GOT US GENERALLY ABOUT THE SAME THING AS AN EIGHT PERCENT. AND ONCE YOU GOT BEYOND THE 40% OCCUPANCY RATE, THE EIGHT PERCENT GENERATED MORE REVENUE THAN THE MINIMUM.

AND YOU'RE DOING THE GREATER. SO WHICHEVER ONE IS -- .

IN OTHER WORDS, IF THEY'RE 40% OR LESS, WE WOULD MAKE MORE REVENUE FROM THE 15 CENTS. AND IF THEY WERE MAKING GREATER AN AN OCCUPANCY OF 40%, WE WOULD MAKE MORE REVENUE OFF THE EIGHT PERCENT. BUT WE WOULD BE HAPPY TO TAKE THAT TO THE BOARD IF YOU WOULD LIKE THEM TO DISCUSS THAT.

GARCIA: THE COUNCIL WILL DECIDE TOMORROW. THEY DON'T WANT TO TAKE ACTION. WE DON'T TAKE ACTION TODAY. THIS IS JUST A BRIEFING. SO TOMORROW THE COUNCIL MAY DECIDE TO SEND IT BACK TO THE AIRPORT ADVISORY COMMITTEE TO HAVE THEM LOOK AT THAT PARTICULAR PROVISION OF THE ORDINANCE. MAYOR PRO TEM?

GOODMAN: I HAD TWO QUESTIONS. ONE IS ABOUT PARKING. NOT TECHNICALLY WHAT WE'RE TALKING ABOUT NOW, BUT NOW THAT WE'VE HAD SOME COMMUNICATION FROM THOSE WHO ARE UNHAPPY THAT WE'RE NOT GOING TO CUT THE SAME BREAK TO HANDICAPPED PASSENGERS THAT WE DID. LET ME ASK YOU IF YOU KNOW OF OFF SITE PARKING ENTERPRISES, IF THEY GIVE HANDICAPPED PERSONS ANY KIND OF BREAK ON PARKING?

I DON'T KNOW THE ENS ANSWER TO THAT. WE CAN CHECK WITH THEM AND FIND OUT.

GOODMAN: MY THOUGHT WAS JUST BRAINSTORMING WITHOUT JUDGMENT THOUGHT THAT I DOUBT IF THEY DO CUT SUCH A BREAK. AND SO MAYBE WE COULD STILL WITHOUT GOING TOTALLY BACK TO FREE, AT LEAST CUT HANDICAPPED PERSONS A BREAK AND BRAI THEM CLOSER TO THE AIRPORT -- BRING THEM CLOSER TO THE AIRPORT AND BRING THEIR FRIEND AND RELATIVES CLOSER.

WE CAN LOOK AT IT. BUT THE ESTIMATE FOR WHAT WE WERE LOSING IN THE BREAKS TO THE HANDICAPPED WERE IN THE NEIGHBORHOOD OF 300 TO 400,000 DOLLARS A YEAR. THE ESTIMATE, EVEN IF WE GOT TO EIGHT PERCENT ON THIS OTHER ITEM IS IN THE NEIGHBORHOOD OF MAYBE 175 TO 200,000 DOLLARS.

WELL, THE REASON THAT I'M ASKING ABOUT IT, AND JUST TO CONSIDER -- AND WHAT I WAS ASKING ABOUT IS NOT TO -- NOT TO SUGGEST WE GO BACK TO THE FREE PARKING AGAIN, BECAUSE WE DO NEED TO DO SOMETHING. BUT IT'S ALMOST LIKE A PRODUCT. IT'S A SERVICE AND A CONSIDERATION TO THOSE WHO HAVE MOBILITY DIFFICULTIES. AND SO THAT IF IN ITSELF COULD BE -- .

MAYOR PRO TEM, ARE YOU CONSIDERING LIKE A DISCOUNT OF SOME SORT?

GOODMAN: OR A RATE. BECAUSE WHEN YOU GO OUT THROUGH THE GATES WITH THE THINGS, YOU CAN SEE WHETHER SOMEONE HAS A LEGITIMATE HANDICAPPED STICKER OR PARKING TAG OR OTHER ID. SO IT WOULDN'T BE VERY DIFFICULT TO VALIDATE THE STATUS. I'M JUST BRAINSTORMING WITHOUT JUDGMENT. I DON'T HAVE A FORMAL -- .

YOU JUST YOU WANT US TO EVALUATE. I UNDERSTAND.

GOODMAN: YEAH. THE OTHER THING IS JIM PROBABLY DOESN'T HAVE THIS INFORMATION, BUT THERE'S A LOT OF TALK, A LOT OF HOOPLA IN FACT IN WASHINGTON ABOUT HOW THE FEDERAL GOVERNMENT AND RESPONSIBLE FEDERAL PEOPLE ARE GOING TO HELP ALL OF US WITH OUR HOMELAND SECURITY COSTS. AND THE NECESSITIES THAT WE NOW HAVE TO FACE. WHAT I'VE ALSO SEEN, THOUGH, IS THAT THE LARGEST PORTION OF THOSE HELPFUL DOLLARS ARE NOT BEING ALLOCATED TO STATES AND SO WILL NOT BE COMING TO CITIES. A VERY TINY -- WELL, WHAT LOOKS TO ME LIKE A VERY TINY PORTION OF THOSE FUND IS EVEN BEING CONSIDERED FOR THOSE OF US AROUND THE COUNTRY WHO ARE GOING TO HAVE TO DO THESE VIRTUALLY UNFUNDED MANDATES. SO AS PART OF WHAT WE LOOK AT AS A COUNCIL, COULD -- SINCE IN THIS CASE FEDERAL POLICY AND FEDERAL ACTION IS VERY DEFINITELY IMPACTING US TODAY AS WE LIVE AND BREATHE IN AUSTIN, TEXAS AND OUR TAX RATES AND OUR REVENUE GENERATION AND EXPENDITURE PROJECTIONS. SO I THINK THAT IN THIS CASE MAYBE IT WOULD BE GOOD TO HAVE A VERY GOOD AND THOROUGH PRESENTATION OF ALL THE ACTIONS THAT ARE BEING CONSIDERED, ALL THE DOLLAR AMOUNTS THAT ARE BEING ALLOCATED. AND FOR WHAT ANY POTENTIAL ACTION THAT IS BEING CONTEMPLATED, ANY SUPPORT OR ACTION THAT WE AS A CITY CAN TAKE TO MAKE SURE THAT THOSE IN FEDERAL GOVERNMENT KNOW THAT WE CANNOT FIND THE RERESOURCES FOR TOO MANY UNFUNDED MANDATES. AND THE REASON WE POOL ALL OUR MONEY AND SEND ALL THAT MONEY TO WASHINGTON IN THE FIRST PLACE IS FOR EXACTLY THIS KIND OF LEVERAGED USE OF PUBLIC DOLLARS.

GARCIA: AND I THINK AT THE CONFERENCE OF MAYORS, SEVERAL MAYORS, PARTICULARLY OF THE MAJOR CITIES, MADE THAT VERY CLEAR TO THE PRESENTERS, MADE THAT VERY CLEAR TO THE PRESIDENT WHEN THEY WENT TO THE WHITE HOUSE. I MEAN, EVERYBODY IS CHOKING ON THIS ONE AND THEY DON'T KNOW WHAT TO DO. AND LOS ANGELES MAYOR TALKED ABOUT THE FACT THAT EVERY TIME THEY HAD TO ANSWER AN EMERGENCY, IT COST THEM A MILLION DOLLARS. SO IT IS A BIG ISSUE. YOU'RE TALKING ABOUT NOT JUST AIRPORT, BUT THE WHOLE PICTURE.

GOODMAN: EVERYTHING.

GARCIA: AND THAT'S SOMETHING MS. FUTRELL AND CITY MANAGER GARZA THAT WE NEED TO LOOK AT IN WORK SESSION SO WE CAN LOOK AT WHAT THOSE BILLS ARE AND WHAT IT DOES FOR THE CITY AND WHAT IT DOESN'T DO, PARTICULARLY THE LAST THING THAT THE MAYOR PRO TEM MENTIONED.

AND MAYOR, JUST TO DUCK TAIL ON THIS. WE MAY WANT TO CONSIDER -- I DON'T KNOW HOW WE WOULD DO THIS, BUT TO HAVE A GREATER PRESENCE IF SOMEBODY INVITE US TO WASHINGTON TO AVAIL OURSELVES TO SOME OF THAT. BECAUSE I THINK RIGHT NOW WE PROBABLY NEED TO DO A BETTER JOB OF TRYING TO ACCESS THOSE FEDERAL RESOURCES OR AT LEAST HAVE OUR CASE HEARD IN ADDITION TO USING YOUR ELECTED REPRESENTATIVES, BUT SOMEBODY WHO CAN HELP US WITH THAT.

GOODMAN: IF I COULD FOLLOW UP ON THAT COMMENT. I REALLY THINK THAT IS A GREAT I CAN'T UNDERSTAND I'M HOPING EVERY URBAN CENTER DOES THE SAME BECAUSE IF THEY DON'T KNOW WHAT THEY'RE DOING TO US, THEY WILL CONTINUE TO DO IT. AND I WOULD RATHER NOT SEE THAT HAPPEN.

GARCIA: IT'S A CONVENIENT WAY FOR THEM, NOT TOO CONVENIENT FOR US. VERY INCONVENIENT FOR US. FURTHER QUESTIONS FOR MR. SMITH? KMOMS?

COUNCILMEMBER THOMAS?

.

THOMAS: HOW HAS IT AFFECTED THE REVENUE, THE BUSINESSES ON THE UPPER LEVEL, THE CONCESSIONS?

EACH ONE IS DIFFERENT OBVIOUSLY BECAUSE THEY'RE BUSINESSES AND THEY HAVE DIFFERENT MARKETS AND ATTRACTIONS, BUT GENERALLY IN -- AND THE THING THAT SURPRISES MOST PEOPLE WHEN WE EXPLAIN THIS, IS THAT THE CONCESSIONS GENERALLY HAVE BEEN DOING OKAY. AND THE REASON FOR THAT IS WITH THE INCREASED SECURITY PEOPLE ARE GETTING TO THE AIRPORTS EARLIER AND AS A RESULT ONCE THEY GO THROUGH SECURITY THEY HAVE MORE DWELL TIME IN THE TERMINAL AND THEY'RE SPENDING MORE MONEY. SO EVEN THOUGH THE PASSENGER TRAFFIC HAS BEEN DOWN 15%, GENERALLY OUR CONCESSIONS ARE NOT EXACTLY WHERE THEY WERE PREVIOUSLY, BUT THEY'RE A LOT CLOSER THAN THE RENTAL CAR COMPANIES OR ANYTHING ELSE LIKE THAT THAT IS REALLY BEING AFFECTED BY THE BUSINESS. SO IN A BROAD STATEMENT THE CONCESSIONS ARE DOING OKAY. INDIVIDUALLY SOME OF THEM MAY BE HURTING MORE THAN OTHERS.

THOMAS: OKAY. ON THE PARKING REVENUE, WE WENT OVER THAT -- YOU DIDN'T GO OVER ON THAT. BUT YOU DON'T HAVE TO GO OVER IT, BUT I JUST NEED TO ASK, AS WE KNEW THE AIRPORT WAS GROWING, WHAT -- THE SURROUNDING LAND -- AND I KNOW WE'RE NOT IN THE PARKING BUSINESS, BUT I SEE THAT OUTSIDE COMPANIES HAVE BOUGHT SOME OF THE LAND. HAD WE THOUGHT ABOUT GOING INTO PURCHASE SOME LAND FOR PARKING TO HELP THE REVENUE AT THE AIRPORT?

WELL, THE -- ONE THING IS WE ARE IN THE PARKING BUSINESS. ANY TIME 35 PERCENT OF OUR REVENUE COMES FROM PARKING, WE ARE VERY MUCH IN THE PARKING BUSINESS. WE -- AT THE TIME THE AIRPORT WAS CONSTRUCTED, I MEAN, THERE WERE LIMITS TO WHAT THE F.A.A. WILL HELP SUPPORT THE PURCHASE OF. AND THEY HAD TO BE DIRECTLY RELATED TO THE AIRPORT. SO BUYING ADDITIONAL LAND FOR PARKING WOULD HAVE BEEN SOLELY A CITY COST. NOW, WE ARE GOING TO -- AS WE GO INTO THE NOISE PROGRAM, WHICH THE AIRPORT IS DOING, AND WE BUY UP PIECES OF PROPERTY WHO ARE AFFECTED BY OUR NOISE, WE WILL GAIN ADDITIONAL LAND AS A RESULT OF THAT NOISE PROGRAM. THAT WILL CREATE SOME OPPORTUNITIES. THERE'S ALSO MORE SPACE ON THE AIRPORT PROPERTY ITSELF FOR PARKING. BUT THE OTHER THING IS, LONG-TERM PRIVATE PARKING FACILITIES IN THE AIRPORT ARE A GOOD THING BECAUSE IT HELPS US NOT USE VERY VALUABLE AIRPORT LAND UP FOR PARKING, BUT USE IT FOR OTHER USES THAT COULD GENERATE REVENUE. SO IN THE SHORT-TERM I THINK WE HAVE AN ISSUE BETWEEN US AND THE PRIVATE PARKING FACILITIES ALL COMPETING FOR MARKET SHARE. AT SOME POINT IN THE FUTURE, HOWEVER, THERE WILL BE ENOUGH MARKET FOR ALL OF US TO DO VERY WELL OUT THERE AND ULTIMATELY PROBABLY 10 YEARS FROM NOW THERE WILL BE A SHORTAGE OF PARKING OUT AT THE AIRPORT AGAIN BETWEEN BOTH THE PRIVATE AND THE PUBLIC. SO I WOULD JUST LOOK AT THE SITUATION WE HAVE NOW WHERE PARKING IS KIND OF A TWO TO THREE YEAR BLIP ON THE RADAR SCREEN THAT WILL CHANGE.

THOMAS: SO WE ARE LOOKING AT LONG-TERM TO INVEST MORE IN PARKING?

YES. WE'RE EVALUATING THE WAY WE'RE PROVIDING PARKING, OUR RATE STRUCTURE, WHETHER OR NOT WE NEED TO PROVIDE MORE COVERED PARK TO GO ATTRACT THE BUSINESS TRAVELER, A VARIETY OF THINGS LIKE THAT.

THOMAS: THANK YOU.

GARCIA: FURTHER QUESTIONS FOR MR. SMITH? THANK YOU, MR. SMITH.

GOODMAN: OH, MAYOR? MAYOR?

GOODMAN: MAYOR PRO TEM?

GOODMAN: BEFORE THEY LEAVE, I WOULD LIKE TO SAY THAT OVER THESE MONTHS I HAVE GOTTEN A WHOLE LOT OF COMMENTS FROM PEOPLE WHO SEE ME IN THE GROCERY STORE, E-MAIL ME, WRITE ME LETTERS AND CALLS, SAYING HOW WONDERFULLY THEY THINK THE AIRPORT HAS RESPONDED TO THE NEW AND DIFFERENT WORLD THAT WE'VE HAD TO LIVE IN. NOW, THEY DON'T SAY THE SAME THING ABOUT -- WELL, I WON'T GO INTO THAT. [LAUGHTER]. THERE ARE SOME ASPECTS THAT WE HAVE NO CONTROL OVER AT THE AIRPLANE THAT THEY'RE NOT AS COMPLIMENTARY ABOUT, BUT FOR OUR MANAGEMENT IN OUR AIRPORT, WE'VE HAD VERY POSITIVE RESPONSES.

THANK YOU.

GARCIA: IT'S ABOUT 12:15. AND WE HAVE THE LAST ITEM, WHICH IS A BRIEFING ON THE EAST SEVENTH STREET CORRIDOR STUDY, AND WE HAVE MR. AUSTAN LIBRACH AND MS. LISA GORDON COMING UP. AND CAN WE DO IT IN ABOUT 15 MINUTES?

I THINK WE CAN DO IT IN 15 MINUTES. IT WILL TAKE US A MINUTE HERE TO SET UP OUR EQUIPMENT AND WE'LL BE READY AT THAT POINT.

GARCIA: LET ME ANNOUNCE ALSO THAT ITEM 13 ON TOMORROW'S AGENDA WILL BE A TIME CERTAIN AT 3:30. OKAY. WELCOME.

I CAN GIVE YOU A BRIEF OVERVIEW WHILE MEGAN WINTER IS SETTING UP. AND THIS IS AUSTAN LIBRACH. BRIEFLY -- .

GARCIA: HOLD IT JUST A SEC. IF THOSE OF YOU THAT ARE HAVING CONVERSATIONS IN THE CHAMBER COULD TAKE THEM TO THE HALLWAY, WE WOULD APPRECIATE IT SO THAT THE COUNCIL CAN HAVE UNDIVIDED ATTENTION ON THE PRESENTATION. THANK YOU, MS. GORDON.

OKAY. THE FOCUS HERE IS ON CORRIDOR PLANNING. AND WHAT THAT MEANS IN VERY SIMPLE TERMS IS IN OUR NEIGHBORHOODS THESE CORRIDORS BRING US FROM ONE NEIGHBORHOOD DOWNTOWN, ALL THROUGHOUT OUR CITY. AND THE CORE DOER PLANNING EFFORT IS AN EFFORT TO MAKE SURE WE HAVE SAFETY AND TRANSIT NEEDS IN THOSE AREAS AND ALSO THE TRANSPORTATION CORRIDOR WAYS OF MAKING THEM MORE SIGNAGE, MORE AESTHETICALLY PLEASING AND JUST TO IMPROVE THE QUALITY OF LIFE IN THE VARIOUS NEIGHBORHOODS THAT WE HAVE. LAST SPRING WE FINALIZED THE GUIDEBOOK FOR CORRIDOR PLANNING WHICH THE STAFF WILL GO OVER AND SOME TERMS OF TELLING YOU DIFFERENT CONCEPTS THAT YOU CAN USE TO DEVELOP THOSE CORRIDORS. WE ARE IN THE PROCESS OF GETTING SET UP FOR OUR FIRST MAP, BUT YOU THINK AUSTAN CAN START AND GIVE YOU SOME BACKGROUND.

AGAIN, MY NAME IS AUSTAN LIBRACH AND MEGAN IS HERE AND WE'RE HAVING TROUBLE WITH THE SLIDES. BUT I'LL GO AHEAD AND START. I THINK YOU HAVE COPIES OF EACH OF THE SLIDES ON YOUR DESK IN FRONT OF YOU. AND I'LL JUST GO FORWARD WITH THAT. THE FIRST SLIDE THAT YOU -- .

GARCIA: I DON'T THINK WE DO.

THERE IS A MEMO FROM ME AND THEN BEHIND THE MEMO SHOULD BE COPIES OF ALL THE SLIDES.

GARCIA: MAKE SURE EVERYBODY HAS THAT.

SOME OF NOT IN COLOR. I APOLOGIZE.

GARCIA: OKAY. COLOR, NO COLOR. OKAY.

ALL RIGHT. THE FIRST SLIDE THAT IS A MAP, PROBABLY FAMILIAR TO MOST OF YOU, A MAP OF THE SMART GROWTH MAP THAT WAS PREPARED THREE OR FOUR YEARS AGO. AND I SHOW THIS SLIDE FIRST AS A WAY OF GIVING YOU SOME BACKGROUND AS TO WHY WE'RE DOING CORRIDOR PLANNING AND HOW DID WE GET STARTED. AND IN ACTUALITY, I THINK THE RECOMMENDATION FOR DOING THE EAST SEVENTH STREET, YOU NEED TO GO BACK TO THE 1991-1996 PERIOD WITH THE CITIZENS PLANNING COMMITTEE AND THE CITIZENS PLANNING IMPLEMENTATION COMMITTEE, THE CPIC. AND THEY MADE SUGGESTIONS REGARDING HOW AUSTIN CONSIDER NOT ONLY EAST SEVENTH STREET, BUT CORRIDORS IN GENERAL. AND THE REASON WAS THAT THEY WERE INTERESTED IN FINDING WAYS THAT WE COULD INCREASE HOUSING IN THE URBAN CORE OF AUSTIN, WAYS THAT WE COULD PROVIDE FOR MORE TRANSIT FRIENDLY CORRIDORS AND PEDESTRIAN FRIENDLY CORRIDORS AND TO IMPROVE AIR QUALITY. SO THEY MADE THOSE RECOMMENDATIONS. WE PICKED UP ON THOSE AND THE SMART GROWTH PROGRAM. IF YOU SEE ON THAT MAP THERE ARE SOME RED LINES WHICH ARE CALLED THE MIXED USE CORRIDORS. AND THAT WAS A CONCEPT THAT WE ATTEMPTED TO TRY TO DEPICT ON THAT MAP TO INDICATE WHERE WE THOUGHT THERE MIGHT BE A POSSIBILITY OF PROVIDING FOR THESE MIXED USE CORRIDORS IN THE FUTURE. WHAT WE WERE AFTER IN PROVIDING THESE MIXED USE CORRIDORS IS TO CHANGE FROM ONE-STORY STRIP COMMERCIAL, SET BACK FROM THE STREET THAT IS WHAT YOU FIND ON MANY CORRIDORS IN AUSTIN, AND OVER TIME TO ENCOURAGE MIXED USE DEVELOPMENT WHERE THE DEVELOPMENT MIGHT BE TWO TO THREE-STORY DEVELOPMENT UP TO THE PROPERTY LINE WITH PARKING MOVED TO THE YEAR AND SIDEWALKS WIDENED, TREES ADDED, SOME STREET FURNITURE PROVIDED IN CERTAIN SITUATIONS. AND IN SO DOING, PROVIDING FOR PLACES FOR PEOPLE TO LIVE, WORK, PLAY, SHOP, ALL ALONG THE CORRIDOR SO THAT BOTH -- IT WOULD BECOME MORE PEDESTRIAN FRIENDLY AND MORE TRANSIT FRIENDLY SO THAT THE BUS SYSTEM WOULD WORK MORE EFFICIENTLY. GOING TO THE NEXT SLIDE THEN, WE PREPARED THAT SMART GROWTH MAP AND THEN A YEAR OR SO LATER WE WERE WORKING WITH AN ADVISORY GROUP, A COMMUNITY ADVISORY GROUP STIFTING OF REPRESENTATIVES FROM THE URBAN TRANSPORTATION -- CONSISTING OF REPRESENTATIVES FROM THE URBAN TRANSPORTATION DIVISION, THE PLANNING COMMISSION AND SOME OF THE NEIGHBORHOOD PLANNING AREAS THAT HAD COMPLETED THEIR PLANS AND THE AUSTIN NEIGHBORHOODS COUNCIL AND OTHERS. WE DEVELOPED A TYPEOLOGY FOR THESE CORRIDORS. WE LOOK AT SPECIFIC PLACES IN THE URBAN CORE WHERE THOSE CORRIDORS MIGHT BE DESIRABLE. AND WE DIVIDED THEM INTO DIFFERENT CATEGORIES. THERE WAS THE TOWN CENTER, WHICH WAS CONSIDERED A CORRIDOR WHERE IT MIGHT BE ON A SHOPPING CENTER OR A MAJOR PUBLIC PLACE THAT WOULD HIGHLIGHT THAT CORRIDOR. THE SECOND, A MAIN STREET CORRIDOR, WHICH WOULD PROBABLY BE AN ARTERIAL CORRIDOR. THEN IT WOULD BE A DESTINATION. A NEIGHBORHOOD BEING THE SMALLEST MIGHT BE ON A COLLECTOR AND BE VERY NEIGHBORHOOD ORIENTED. AND WE WENT THROUGH AND THE GATEWAY CORRIDOR WAS THE NEXT TYPE, AND THIS IS WHAT EAST 7TH WAS DESIGNATED AS A VISTA OR A SOURCE OF PRIDE AND IDENTITY FOR A NEIGHBORHOOD AND ALSO THE ABILITY IN THE CASE OF EAST SEVENTH AND SOUTH CONGRESS, BE ABLE TO -- AS I SAY, A VISTA TO SEE DOWNTOWN AUSTIN OR IN THE CASE OF EAST SEVENTH, AS A CORRIDOR FROM THE AIRPLANE. AND FINALLY, THE CORRIDORS THAT WERE ON NEWLY DEVELOPED AREAS LIKE AT MUELLER AIRPORT. SO WE DEVELOPED THAT TYPEOLOGY AND MOVED FORWARD WITH THAT COMMITTEE TO BEGIN TO LOOK AT SPECIFIC PLACES WHERE THE COMMUNITY MIGHT BE INTERESTED IN MOVING FORWARD WITH THE DEVELOPMENT OF CORRIDOR PLANS AND CORRIDOR IMPROVEMENTS. AND PART OF THE MECHANISM THAT WE PUT IN PLACE WAS THAT A CORRIDOR WOULD NOT GO FORWARD FOR PLANNING, CERTAINLY WITHOUT COUNCIL APPROVAL, BUT ALSO OUR RECOMMENDATION WAS THAT IT MUST BE INCLUDED AS A PART OF A NEIGHBORHOOD PLAN. SO THE NEIGHBORHOOD HAD TO FIRST IDENTIFY A CORRIDOR AS SOMETHING THEY WANTED IN THEIR NEIGHBORHOOD PLAN BEFORE THE CITY WOULD MOVE FORWARD AND DO ANY FURTHER PLANNING. THIS NEXT SLIDE THEN SHOWS YOU AN EXAMPLE OF WHAT OUR CONSULTANT, THE GOODMAN CORPORATION, HAS DONE IN FORT WORTH WHERE YOU CAN SEE SORT OF THE BEFORE AND AFTER ON BERRY STREET WHERE WE HAVE ACTUALLY -- THEY HAVE ACTUALLY TAKEN A LOOK AT A CORRIDOR AS I'VE DESCRIBED AND THEY'VE COME UP WITH A SERIES OF RECOMMENDATIONS. AND THE BOTTOM OF THE TWO SLIDES THERE, THE AFTER GIVES YOU A DEPICTION OF WHAT THE CHANGES MIGHT LOOK LIKE. AND I'LL SHOW YOU A FEW MORE. THEY ALSO HAVE DONE WORK IN EL PASO AND IN HOUSTON AS WELL AS FORT WORTH. AND WHAT THEY HAVE DONE IS TO DEVELOP CORRIDORS WHERE PEOPLE WILL WANT TO WALK AND SHOP AND LIVE. AND THAT'S A MAJOR CHANGE FOR MANY OF THESE SOUTHWEST TYPE CITIES YOU FIND HERE IN TEXAS. LOOKING AT ANOTHER EXAMPLE, HERE IS A TYPICAL -- NOT DOWNTOWN, BUT NEAR DOWNTOWN INTERSECTION. AND THIS IS WHAT IT MIGHT LOOK LIKE BEFORE. AND THEN AFTERWARDS THE KIND OF CORRIDOR PLANNING THAT WE'RE TALKING ABOUT WOULD -- ONE WOULD PROVIDE FOR STREET STREES TREES, TWO FOR STREET LIGHTING, THREE FOR CROSS WALKS AND FOUR PERHAPS TO EXPAND THOSE SIDEWALKS. AND THIS HAS THE MAJOR BENEFIT OF PROVIDING A FUNCTIONALLY SAFER AND PLEASANT ENVIRONMENT FOR THOSE CORRIDORS. AND IT ALSO, AS I INDICATED EARLIER, PROVIDES FOR MORE HOUSING, PROVIDES FOR IMPROVEMENTS IN AIR QUALITY AND IMPROVEMENTS IN THE TRANSIT SYSTEM. THE NEXT SLIDE IS AN IDEA THAT WE HAVE FROM AN URBAN DESIGN STANDPOINT OF WHAT IN THE CASE OF EAST SEVENTH OR PERHAPS SOME OTHER CORRIDOR WHAT YOU MIGHT DO IF YOU WERE INTERESTED IN A FOCAL POINT OR AN ENTRANCE TO DOWNTOWN OR AN ENTRANCE TO A NEIGHBORHOOD, THE KIND OF TECHNIQUE OR STRATEGY YOU MIGHT EMPLOY MIGHT LOOK SOMETHING LIKE THIS. AND THIS IS THE KIND OF THING THAT WE'RE LOOKING AT WITH RESPECT TO EAST SEVENTH STREET. THE NEXT SLIDE THEN, JUST TO COVER WITH YOU AGAIN WHY WE WANT TO DO A CORRIDOR PLAN FOR EAST SEVENTH STREET. AND I'VE LISTED FIVE BULLETS FOR THOSE REASONS. THE FIRST IS A COMPREHENSIVE TRANSPORTATION ASSESSMENT. IN LOOKING AT EAST 7TH WE ARE ADDRESSING TRANSIT, PEDESTRIAN AND BICYCLE ACCESSIBILITY TO THE CORE DID HE. WE'RE LOOKING AT HOW IT CAN BE IMPROVED FOR SAFETY, ACCESSIBILITY AND COMFORT. THEN THERE ARE SOME DESIGN ELEMENTS. WE'RE LOOKING AT THE IMPROVEMENTS TO THE CORRIDOR TO REFLECT THE HISTORY THE CULTURE AND THE FUNCTION OF THIS IMPORTANT CORRIDOR IN AUSTIN AND EAST AUSTIN IN PARTICULAR. STRATEGIES FOR REDEVELOPMENT ARE RETENTION OF NEW AN EXISTING BUSINESSES. THE CORRIDOR PLANNING GIVES US THE OPPORTUNITY TO GATHER IMPORTANT MARKET INFORMATION TO ASSIST IN FINDING GAPS IN SERVICES NOT PROVIDED IN THE AREA AS WELL AS INFORMATION TO ASSIST IN MAINTAINING EXISTING BUSINESSES THAT ARE STAPLES TO THE COMMUNITY. THE FOURTH PRELIMINARY ENGINEERING FOR CORRIDOR DESIGN PROTOTYPES FOR EACH SUB AREA OF THE CORRIDOR. IN THE CASE OF EAST SEVENTH THERE ARE THREE AREAS. WE WILL DEVELOP DESIGN CONCEPTS OR PROTOTYPES THAT ADDRESS THE UNIQUE FEATURES OF THAT SECTION OF THE CORRIDOR. WE WILL THEN COMPLETE PRELIMINARY ENGINEERING FOR EACH OF THOSE SUB AREAS IN ORDER TO ASSIST IMPLEMENTATION AN TO ASSIST IN COMPETING FOR FEDERAL FUNDING. -- BY HAVING A CORRIDOR PLAN WE CAN CREATE -- IN CREATING A COMPREHENSIVE CORRIDOR PLAN, WE CAN ASSIST IN SECURING FUNDS, INCLUDING FEDERAL FUNDS SUCH AS STP 4-C AND T-21 AND THE TCSP. THOSE OF YOU WHO ARE MEMBERS OF CAMPO WILL RECOGNIZE THESE DIFFERENT FEDERAL FUNDING SOURCES THAT ARE AVAILABLE, COULD BE AVAILABLE FOR PROJECTS SUCH AS THIS ALONG A CORRIDOR LIKE EAST SEVENTH STREET OR OTHER CORRIDORS. [ONE MOMENT, PLEASE, WHILE CAPTIONERS CHANGE] TEST TEST TEST.

... VISITORS FROM OTHER CITIES, VISIT WHO COME THROUGH EAST SEVENTH ON THE WAY TO DOWNTOWN. THERE ARE SIGNAGE AND WAY FINDING ISSUES AND PEDESTRIAN AND TRANSIT ENVIRONMENT ISSUES. SO WE ARE WORKING ON ALL OF THOSE ISSUES IN THE DEVELOPMENT OF THIS PLAN. THE NEXT SLIDE GIVES YOU A -- A -- A MAP OR A PICTURE OF THE -- OF THE PROGRESS OR THE -- OF THE PLANNING PROCESS THAT WE ARE FOLLOWING, AS WE GO THROUGH THIS STUDY. AS I SAID IT STARTED IN OCTOBER WITH ITEM NO. 1 ON THAT LIST, FOLLOWS THROUGH TO NUMBER 9. WE HOPE THAT WE WOULD BE FINISHED AND BACK TO COUNCIL WITH RECOMMENDATIONS REGARDING IMPROVEMENTS OR AT LEAST THE FINDINGS OF THIS STUDY IN -- IN THE NEXT OCTOBER. AS YOU MIGHT SEE, THERE ARE THREE ITEMS THAT I WANT TO FOCUS ON IN THIS PROCESS THAT WE ARE GOING THROUGH. THAT HAVE TO DO WITH SOME INTERIM IMPROVEMENTS. COUNCIL, IN I BELIEVE MAY OF THIS LAST YEAR, ASKED THAT WE MOVE FORWARD WITH -- WITH ASSESSING AND PROVIDING SOME IMPROVEMENTS TO -- TO EAST SEVENTH STREET ON AN INTERIM BASIS, AS AT THE SAME TIME WE ARE COMPLETING THIS LONGER-TERM STUDY. THOSE THREE TASKS ARE SHOWN THERE. I THINK JUST IN THE LAST WEEK OR SO, I THINK WE'VE IMPROVED ON THE SCHEDULE THAT -- THAT IS ACTUALLY SHOWN ON THIS CHART TO THE POINT WHERE IN A MEMO THAT WAS SENT, I THINK BY -- BY THE ASSISTANT CITY MANAGER GORDON TO YOU JUST THE OTHER DAY, I THINK WE INDICATED THAT WE PROBABLY CAN GET THE INTERIM WORK DONE IN THE NEXT 60 TO 90 DAYS, WE ARE EVEN HOPEFUL THAT WE CAN MAKE IT ON THE 60 DAY SIDE OF THAT RATHER THAN THE 90 DAY SIDE OF THAT TIME FRAME. SO WE ARE -- WE ARE MOVING FORWARD AS QUICKLY AS WE GO ON THOSE INTERIM MEASURES. I WOULD LIKE TO GO OVER WHAT THOSE ARE WITH YOU JUST BRIEFLY. THERE ARE TWO THINGS THAT THE COMMITTEE THAT HAS BEEN WORKING WITH US ON EAST SEVENTH STREET HAVE IDENTIFIED FOR INTERIM IMPROVEMENTS OVER THE NEXT PERIOD. WE -- WE HAVE ONE THAT'S AT ROBERT MARTINEZ AND A SECOND THAT IS AT KAYES [ PHONETIC ], SHOWN BY THESE TWO CIRCLES INDICATING THE AREA WHERE THOSE INTERIM IMPROVEMENTS WOULD BE. TWO MAIN INTERSECTIONS IDENTIFIED FOR I AM IMPROVEMENT THAT I HAVE INDICATED. IN THE NEXT FEW SLIDES I WILL SHOW THE IMPROVEMENTS THAT ARE ALREADY IN DESIGN. PREPARING CONSTRUCTION DOCUMENTS FOR MEDIAN AND CURB RAMPS AND SIGNAGE PLACEMENT, A NEW CROSS WALK AT KAYESE AND PREPARED SIDEWALK SIGNAGE AND RESTRIPED CROSS WALK FOR ROBERT MARTINEZ, PROSPECT AND WEBBERVILLE THAT ALL COME TOGETHER IN THAT LARGER CIRCLE. THESE CONSTRUCTION DOCUMENTS WE THINK WILL BE COMPLETED BY APRIL AND CERTAINLY WILL BE -- WE WILL BE ABLE TO MAKE THE IMPROVEMENTS IN -- AND PUBLIC WORKS SATISFY WILL BE HELPING US WITH THAT IN THE NEAR TERM. THIS IS AN IMAGE OF THE CHANGE THAT WE ARE PROPOSING AT CRAWLES. WE HAVE DISCUSSED WITH THE COMMUNITY -- CALLES. WE HAVE DISCUSSED INSTALLING A PEDESTRIAN ISLAND OR MEDIAN AT THE EAST SIDE OF THE INTERSECTION. THIS WOULD PROHIBIT LEFT TURNS HEADING SOUTHBOUND ON CALLES. THE PEDESTRIAN ISLAND WILL ALLOW PEOPLE TO CROSS HALFWAY AS OPPOSED TO THE FULL LENGTH OF THE ROADWAY AT ONE TIME. THIS IS A FAIRLY STANDARD WAY OF HELPING SPED TRANES TO GET ACROSS A BUSINESS ROAD. IN THIS CASE WE CAN INSTALL THIS WITHOUT -- WITHOUT ANY FURTHER CHANGES TO THE RIGHT-OF-WAY. THE INTERSECTIONS AT PEDERNALES AND PLEASANT VALLEY ARE -- ARE REALLY TOO FAR AWAY FOR CONVENIENT CROSSING, SO THIS IS THE BEST PLACE TO INSTALL SUCH A DEVICE. THE NEXT IS A PICTURE THAT GIVES YOU --

MAYOR GARCIA: MR. LIBRACH, CAN YOU GO BACK TO THAT ONE. WHAT IS THAT WORM-LOOKING THING THAT GOES LIKE THIS? [ LAUGHTER ]

THE WORM-LOOKING THING IS THE MEDIAN. THAT'S -- IN YELLOW.

NO. ON THE WEST SIDE OF CALLES THE. 7 AND DOWN CALLES STREET.

WHEN IS THIS?

THAT'S THE CURB.

I DIDN'T USE OUR BEST ARTISTS TO PRODUCE THIS SLIDE. I APOLOGIZE.

MAYOR GARCIA: BECAUSE OF THE REVENUE SHORTFALL. [ LAUGHTER ].

WE DID THIS WITH CRAYONS LAST NIGHT JUST TO GIVE YOU AN IDEA.

MAYOR GARCIA: THE CIRCLE ACROSS THE STREET?

AGAIN, THAT'S THE CURB. THOSE ARE CURB RAMPS. [ LAUGHTER ].

MAYOR GARCIA: THANK YOU.

LIBRA: ALL RIGHT. THANK YOU. ON THE NEXT SIDE YOU CAN SEE A REAL PICTURE OF THOSE THAT WE TRIED TO DRAW. WHAT YOU HAVE FIRST IS WHAT WE SHOWED YOU TODAY. THE NEXT PICTURE SHOWS YOU WITH A SUPER IMPOSITION WHAT THE -- WITH THE APPROPRIATE SIGNAGE, WHAT WE ARE PROPOSING TO DO THERE ON A TEMPORARY BASIS OR REALLY PERMANENT BUT QUICK BASIS THERE FOR CALLES. THE NEXT ONE THEN IS ANOTHER DRAWING, NOT TO SCALE BY THE SAME ARTIST. LOOKING AT ROBERT MARTINEZ PROSPECT AND WEBBERVILLE. THERE'S AN EXISTING SIGNAL AND CROSS WALK, BUT THERE ARE NO VISUAL CLUES SUCH AS SIGNAGE TO SHOW PEDESTRIANS WHERE TO GO. THE BROKEN PATCH OF SIDEWALK ALSO DOES NOT HELP THE -- TO LEAD PEDESTRIANS TO NEARBY SIGNALIZED INTERSECTIONS, SO WE ARE GOING TO BE INSTALLING A SMALL SECTION OF SIDEWALK IN ORANGE, YOU CAN SEE IT THERE ON THE LEFT SIDE THERE. IT IS A -- IT IS A DRIVEWAY TO THE PARKING LOT THAT IS BROKEN UP. A CURB CAMP AT THE SOUTH SIDE OF THE INTERSECTION AND SOME SIGNAGE. SO THAT CONSTITUTES THE CHANGES THAT WE ARE GOING TO BE MAKING AND THEN -- THEN TO THAT AREA AND THEN THERE'S SOME PICTURES OF HOW THAT LOOKS LIKE CURRENTLY, WITH A CROSS WALK FROM NORTH TO SOUTH, PICTURE NUMBER 1. MISSING CURB RAMP, NUMBER 2. THE SIDEWALK LEADING TO INTERSECTION NUMBER 3. AND MISSING PATCH OF SIDEWALK IN PICTURE NUMBER 4. SO WE WILL BE IMPROVING THOSE ON THE NEAR TERM AND OUR -- OUR PLAN THEN IS TO COMPLETE BY THIS COMING OCTOBER THE LONGER TERM PLAN AND THERE WILL BE MANY OTHER IMPROVEMENTS SUCH AS THESE AND SOME -- SOME PUBLIC/PRIVATE RECOMMENDATIONS WE MAY HAVE FOR SOME OF THE LAND USES. SOME TRANSPORTATION IMPROVEMENTS, PERHAPS EVEN -- EVEN -- ELIMINATING OR SHUTTING DOWN SOME OF THE INTERSECTIONS AND THAT SORT OF THING. WE WOULD -- AS I SAY -- HAVE THOSE RECOMMENDATIONS FOR YOU HOPEFULLY IN OCTOBER. THAT CONCLUDES THE PRESENTATION, I WOULD BE GLAD TO ANSWER ANY QUESTIONS THAT YOU HAVE.

MAYOR GARCIA: COUNCILMEMBER ALVAREZ, YOU HAVE BEEN WORKING ON THIS ONE. YOU PROBABLY OUGHT TO OKAY --

ALVAREZ: THANK YOU, MR. MAYOR, THANK YOU MR. LIBRACH AND LEADERS. I THINK -- I WANTED TO JUST KIND OF UPDATE THE COUNCIL ABOUT WHERE WE ARE AT WITH THIS PROJECT. BECAUSE ONE OF THE ITEMS THAT WAS PASSED WITH THE RESOLUTION DEALT WITH SHORT-TERM IMPROVEMENTS TO DEAL WITH SOME SAFETY CONCERNS AT THESE PARTICULAR INTERSECTIONS. SO I THINK, YOU KNOW, IT IS -- IT IS IMPORTANT THAT WE MOVE FORWARD ON THOSE AS QUICKLY AS POSSIBLE. SO I AM GLAD TO SEE THAT THAT IS MOVING FORWARD. AND -- AND I DID HAVE SOME QUESTIONS ON THE 7TH STREET -- AND ROBERT MARTINEZ AREA. IF YOU COULD GO BACK TO THAT MAP RIGHT THERE. BECAUSE I NOTICED THAT YOU SAID THAT YOU WOULD BE BUILDING A LITTLE SIDEWALK, I GUESS ADDING A -- AN ADA RAMP. BUT IS THERE ANY ADDITIONAL CHANGES TO -- TO EITHER THE -- THE SIDEWALK CROSSING ITSELF TO FURTHER DEMARK INDICATE OR MAKE -- DEMARKATE WHERE WE ARE TRYING TO MAKE CLEAR OR END COURAGE PEOPLE TO WALK. THE MY -- MY SECOND QUESTION, THE CROSSING EAST OF WEBBERVILLE ROAD, WHY IT IS THAT WE DON'T ALLOW PEOPLE TO CROSS THERE. BECAUSE LIKE THE CALLES STREET SITUATION, THE CLOSEST OTHER CROSSINGS, YOU KNOW, PEDESTRIANS CROSSING FROM THIS INTERSECTION WOULD BE ALL THE WAY TO CHICON, I THINK, THEN ALL THE WAY TO PEDERNALES, WHICH I VERY FAR AWAY. SO I THINK IF WE COULD PROVIDE MULTIPLE PLACES HERE TO CROSS AND THAT WOULD -- THAT WOULD ALLEVIATE MAYBE THE -- THE INCLINATION OR REDUCE THE INCLINATION TO CROSS MID STREET. SO -- SO YOU -- IF YOU COULD ADDRESS THOSE TWO ISSUES.

MY NAME IS MEGAN WITERS, A PLANNING IN PRANK TRANSPORTATION AND STABILITY. THE DEMARKIATION, THAT SIGNALIZED INTERSECTION, PART OF THE RECOMMENDATIONS THAT THE CONSULTANT HAD WAS TO INCLUDE SIGNAGE SAYING UNSAFE CROSSING AT THIS LOCATION MID BLOCK, ESSENTIALLY, DIRECT THEM TO THEIR NEARBY INTERSECTION AT PROSPECT AND TRY AND MAKE IT MORE OBVIOUS. WE ALSO HAVE IN DESIGN, WHICH WILL HELP ON THE NORTH SIDE, SIDEWALKS BETWEEN CHICON AND WEBBERVILLE. THAT WILL BE COMPLETED AND DESIGNED IN AUGUST, BY AUGUST, THAT WOULD BE UNDER CONSTRUCTION NEXT YEAR, WHICH WILL HELP ON THE NORTH SIDE OF THE STREET AS WELL, BECAUSE THERE'S NO SIDEWALK ON THAT SIDE. ON THE SECOND QUESTION, ON THE BLOCK BETWEEN WEBBERVILLE AND GOING TOWARDS PEDERNALES. IT'S A TOUGH INTERSECTION BETWEEN PROSPECT AND WEBBERVILLE AND THE SITE ISSUES OF PEOPLE CROSSING, WE WOULD LIKE TO MAKE SURE, AT LEAST RIGHT NOW WE ARE TRYING END -- TO ENCOURAGE THEM TO CROSS AT THE MARKED INTERSECTION. WE HAVE LOTS OF PROS AND CONS ABOUT WHETHER OR NOT WE SHOULD CLOSE WEBBERVILLE, TRYING TO CLEAN UP THAT INTERSECTION AND MAKING IT MORE STRAIGHTFORWARD OR PROSPECT. THAT'S A LITTLE BIT LONGER TERM DISCUSSION THAN A QUICK FIX. INCLUDING TOO MANY CROSSINGS RIGHT ON THAT INTERSECTION BETWEEN WEBBERVILLE AND PEDERNALES, RIGHT NOW YOU CAN SEE HOW MANY CURB CUTS THERE ARE FOR THE BUSINESSES. ONE OF THE OTHER THINGS THAT WE WANT TO WORK WITH THE PRIVATE PROPERTY OWNERS IS TO TRY TO REDUCE THE NUMBER OF CURB CUTS. IT DOESN'T REALLY SERVE THE BUSINESS VERY WELL IF PEOPLE DON'T KNOW WHERE THEY ARE TRYING TO GET TO. IT ALSO HAS A DEBT MACHINE TALL IMPACT ON PEDESTRIANS WHEN THEY ARE WALKING ALONG. WE WILL HAVE TO LOOK FURTHER AT WHETHER OR NOT WE CAN PUT A SAFE CROSSING IN THAT INTERSECTION.

ALVAREZ: I WAS THINKING MORE IN ANY REGULAR INTERSECTION YOU HAVE ON ONE SIDE OF THE STREET A CROSSING THEN YOU HAVE ON THE OTHER SIDE OF THE STREET A SIGNALIZED PEDESTRIAN CROSSING AS WELL. WHY WENT CAN HE DO THAT RIGHT THERE AT THE CORNER ON THE EAST SIDE OF WEBBERVILLE AND 7TH STREET, HAVE ANOTHER SIGNALIZED PEDESTRIAN CROSSING LIKE ANY OTHER TYPICAL INTERSECTION.

RIGHT NOW IT'S A FAIRLY DIFFICULT INTERSECTION BECAUSE IT IS THAT BIG Y. HE WE CAN LOOK FURTHER INTO OPTIONS, IT PROBABLY WILL TAKE MORE ENGINEERING OF WHAT WE WOULD DO WITH THAT KIND OF MORE COMPLICATED INTERSECTION.

ALVAREZ: THEN, BUT IN TERMS OF SOME KIND OF PAVERS OR SOMETHING TO CLEARLY DELINEATE, THIS IS THE PEDESTRIAN, KIND OF AUTOMATICALLY MAKES DRIVERS SLOW DOWN WHEN THEY START SEEING THAT KIND OF CHANGE.

I SUSPECT THAT WILL COME OUT, FOR THE LONG TERM WHEN WE ARE TRYING TO DO FOR THE WHOLE CORRIDOR, EACH OF THE INTERSECTIONS, WILL REALLY BE TALKING ABOUT PAVERS OR THINGS THAT REALLY MAKE IT OBVIOUS THAT THEY ARE NEAR A PEDESTRIAN AREA.

ALVAREZ: OKAY. I THINK IF WE COULD IN THE SHORT TERM EXPLORE THAT OTHER PEDESTRIAN CROSSING RIGHT THERE ON WEBBERVILLE. I THINK -- BECAUSE PEOPLE ARE DOING IT ALREADY, I THINK. IT'S JUST -- YOU KNOW, FOR WHATEVER REASON, THEY DON'T WANT TO WALK THE EXTRA 40, 50 FEET JUST TO THE OTHER CROSSING. BUT THAT'S HOW MOST STREETS ARE LAID OUT. YOU HAVE FOUR CROSSINGS, YOU KNOW, AT THE INTERSECTION. SO -- SO I'M JUST WONDERING WHY THAT ISN'T POSSIBLE RIGHT THERE.

WE WILL TAKE A LOOK AT IT AND SEE WHAT WE CAN DO. THEN MAYBE ONE OF THE THINGS THAT THE STAFF CAN DO IS WE ARE LOOKING THROUGH THE CORRIDOR, MAYBE THAT WOULD BE THE PILOT IF YOU ARE DOING THE DELINEATION OF THE CROSS WALK. YOU CHOOSE THAT AREA AS OUR FIRST AREA TO IDENTIFY -- TO IDENTIFY WITH ANY ADDITIONAL DEMARKIATIONS IF THAT WAS WHAT WAS POSSIBLE OR THE NEXT BEST SOLUTION IN THAT AREA THAT ACCOMPLISHES WHAT YOU ARE TRYING TO ACHIEVE.

MAYOR GARCIA: FOR THE -- NOT FOR THE SHORT TERM, BUT FOR THE LONGER TERM, GOING INTO THE FALL, THE INTERSECTION OF CALLES AND 7TH AND GONZALEZ STREET HAS SOME PROBLEMS THAT HAVE BEEN THERE FOR A LONG TIME AND THOSE PROBLEMS WERE EXACERBATED WHEN WE OPENED UP PARKE ZARAGOSA BRANCH LIBRARY, I WOULD LIKE -- PARK ZARAGOSA. I WOULD LIKE YOU TO LOOK AT THAT, MR. ESTRADA FROM ESTRADA CLEANERS, OTHER FOLKS, THAT HAVE HAD TO DEAL WITH PROBLEMS FOR A LONG TIME THAT HAVE NOT BEEN ADDRESSED, MAYBE WE CAN ADDRESS THEM. NOT IN THE SHORT TERM, WE ARE NOT TALKING ABOUT THE SHORT TERM. YOU ARE TALKING ABOUT TRAFFIC IMPROVEMENTS. BUT FOR THE LONGER TERM, BECAUSE OF WHAT HAPPENED WITH THE NEW -- WITH THE NEW PARK ZARAGOSA REC CENTER, WE HAVE SOME ISSUES TO ADDRESS THERE.

WE CERTAINLY WILL DO THAT.

MAYOR GARCIA: OKAY. MAYOR PRO TEM?

GOODMAN: I WOULD LIKE TO FOLLOW UP SOME ON WHAT COUNCILMEMBER ALVAREZ WAS TALKING ABOUT AND ACTUALLY SOME OF WHAT THE MAYOR WAS TALKING ABOUT, TOO. WHAT I HAD THOUGHT WAS THAT WE WERE GOING TO BREAK A LITTLE FURTHER OUT OF THE BOX THAN THIS. AND ESPECIALLY WHEN YOU ARE LOOKING AT PROSPECT AND WEBBERVILLE, I HAD THOUGHT THAT THIS WAS THE KIND OF PLACE WHERE YOU CHANGE THE WHOLE ATTITUDE OF THE STREET IN -- IN ESSENCE. SO THAT FROM WEBBERVILLE TO PROSPECT, WHY WOULD YOU EVEN NEED TO BE THINKING ABOUT -- ABOUT CROSS WALKS? WHY WOULD THAT NOT BE A PLACE THAT BECOMES A PEDESTRIAN PLACE SO THAT ALL OF THE TRAFFIC, WHICH GOES TO -- TOO FAST ANYWAY RIGHT THERE, ENTERS A DIFFERENT KIND OF TERRITORY SO THAT -- SO THAT LONG-TERM, SURE, TEXTURING, DIFFERENT SURFACES, WHATEVER, HAPPENS. BUT IN THE MEANTIME IT DOESN'T HAVE TO BE A LONG-TERM ISSUE OF DELINEATING THAT SPOT AND CHANGING THE ATMOSPHERE AND CHANGING THE EXPECTATIONS OF THE DRIVERS BECAUSE WE CAN DO IT WITH COLORATION AND WITH STRIPING. I'M JUST THINKING WHY TRY TO DIVVY IT UP BETWEEN PROSPECT AND WEBBERVILLE. WHY NOT JUST MAKE THAT WHOLE SECTION A VERY NOTABLE AND DIFFERENT PART OF THE STREET. SO THAT PSYCHOLOGICALLY PEOPLE SLOW DOWN BECAUSE THEY -- BECAUSE THEY ARE NOT SURE WHAT THEY ARE ENTERING INTO, THIS IS NOT FREEWAY COUNTRY, YOU CAN TELL THAT. THE SAME THING WITH SOMETHING -- WAS SOMETHING THAT I WONDERED ABOUT. WHEN YOU HAVE THE BEFORE AND AFTER PICTURES OF ALL OF THE OTHER PLACES, THERE IS A -- A MORE DRAMATIC DIFFERENCE THAN WHAT WE SEE FOR 7TH AND CALLES. I WAS WONDERING, THIS IS NOT ALL WE PLANNED.

NOT AT ALL. THIS IS JUST INTERIM SO WE GET THIS STARTED AND ADDRESS SOME OF THE SAFETY IMPROVEMENTS. I THINK WE WILL BE LOOKING AT MORE STREET TREES AND MORE ORGANIZED SIGNAGE AND LIGHTING AND ALL OF THOSE ELEMENTS, BUT IN CONJUNCTION WITH WHAT KIND OF DESIGN OPTIONS THE COMMUNITY IS INTERESTED IN. I THINK WE WANT TO MAKE SURE THAT WE ARE BALANCING, WE DON'T WANT TO SPRUCE IT UP SO MUCH THAT PEOPLE DON'T FEEL LIKE IT'S HOME. WE ALSO WANT IT TO BE IN CHARACTER.

GOODMAN: LOOKING AT THIS INTERSECTION, I DON'T THINK ANYBODY CALLS THIS ONE HOME.

THIS WAS JUST AN INTERIM IMPROVEMENT. THAT WAS ALL THAT WAS PROPOSED, YEAH.

GOODMAN: IN SOME OF THE OTHER PICTURES OBVIOUSLY THERE'S SOME EASY, EVEN SHORT-TERM DRAMATIC CHANGES THAT YOU CAN MAKE. IF YOU ARE NOT GOING TO PLANT TREES, PLANT A BUSH OR SOMETHING ON -- YOU KNOW, SOMETHING THAT SOFTENS THE EDGE. THIS INTERSECTION OR THIS ALMOST INTERSECTION IS SUCH A HEAT ISLAND EXAMPLE THAT IN THE SUMMER, YEAH, IT'S A FAMILIAR TERRITORY. BUT THIS IS A PLACE THAT GENERATES HEAT, SUCKS IT DOWN AND KEEPS IT. SO -- SO IN AESTHETIC IMPROVEMENT YOU WOULD ALSO IMPROVE THE TEMPERATURE AROUND THERE AND THE BENEFITS TO THE BUSINESSES AND THE PEOPLE WHO -- WHO OBVIOUSLY HAVE TO WALK TO THESE. IF YOU ARE FOR THE GOING TO THE GAS STATION BECAUSE THERE'S NOT ENOUGH PARKING THERE, SO YOU ARE WANTING FOLKS FROM NEARBY TO BE ABLE TO JUST RUN OVER THERE OR WALK OVER THERE ... ANYWAY, BESIDES THE GREENERY, JUST SOFTENING UP THAT EDGE BECAUSE THERE'S VIRTUALLY NO SPACE IN BETWEEN SIDEWALK AND STREET. SO IT'S A REAL -- UNFRIENDLY PLACE TO -- TO LOOK AT UNLESS YOU ARE IN THE SAFETY OF YOUR CAR. ON THE CROSS WALK, FOR INSTANCE, INSTEAD OF JUST -- I DON'T KNOW IF THOSE ARE JUST SYMBOLIC LITTLE PIECES OF WHITE CROSSING, BUT THAT ALSO IS -- I THINK -- A PLACE WHERE WE CAN CHANGE THE WHOLE FEEL OF THE STREET RIGHT THERE. SO THAT IT'S DELINEATED BY COLOR AND OPTICAL ILLUSION OF TEXTURING, IF NOT THE REAL STUFF. EVEN FOR INTERIM USE AND BETTER SIGNS, THAT'S GREAT. BUT IN ALL THE -- IN ALL THE CLUTTER THERE, YOU DON'T HAVE -- WELL, IT'S NOT CLUTTER. ALL THE BUSINESS THERE, YOU ARE NOT GOING TO NOTICE THOSE SIGN BECAUSE THERE IS NO BACKGROUND FOR THEM TO SHOW UP AGAINST. SO, AGAIN, THAT'S A PLACE WHERE BUSHES OR SOME KIND OF OTHER TREATMENT, I THINK, WILL -- WILL GIVE YOU THE BENEFIT OF THOSE SIGNS. AS IT IS, I THINK THERE ARE JUST GOING TO BE TWO MORE SIGNS AND NOBODY IS GOING TO NOTICE THEM AS THEY DRIVE UP.

MAYOR GARCIA: THE INTERSECTION AT NORTH LOOP AND BURNET ROAD IS ONE THAT REALLY HAS CHANGED THE WHOLE -- THE WHOLE ENVIRONMENT IN THAT AREA. IT REALLY -- I WAS BY THERE THE OTHER DAY, I SLOWED DOWN TO LOOK AT IT. THAT'S I THINK ONE OF THE THINGS THAT THE NEIGHBORS HAVE CONCERNS IN THIS AREA IS THAT PEOPLE GO THROUGH THERE AT 50 MILES PER HOUR. SO MAYBE WE CAN SLOW THEM DOWN A LITTLE BIT.

[INAUDIBLE - NO MIC]

MAYOR GARCIA: CAN YOU COME UP HERE SO THEY CAN RECORD YOU?

CAN I?

MAYOR GARCIA: SURE.

[INAUDIBLE - NO MIC]

I AGREE WITH THE MAYOR PRO TEM GOODMAN OVER HERE, ON EAST SEVENTH AND CALLES, COUNCIL WOMAN GRIFFITH YOU KNOW THE ZARAGOSA RECREATION CENTER. FROM THAT REALLY NICE SIDEWALK THAT WAS MADE TO LOOK LIKE A SNAKE, YOU KNOW, BEAUTIFUL IN FRONT OF THE CENTER, FROM THERE TO 7TH STREET, YOU HAVE ABOUT 100 FEET, 80 TO 100 FEET, THAT'S INCLUDING GONZALEZ STREET, WE NEVER HAD A SIDEWALK ON THAT PORTION OF CALLES STREET FOR THE PEDESTRIANS THAT THEY ARE TRYING TO BUILD A CROSS WALK FOR. THERE IS NONE. NO RAMP ON THAT NORTH SIDE. RIGHT NOW. AND I WOULD BE GLAD TO SHARE THE EXPENSES FOR THE SIDEWALK ON EITHER ONE OF THE STREETS. I'M GOING TO HAVE TO MAKE A PAYMENT PLAN ON IT. BUT I THINK THAT I CAN, YOU KNOW, PAY IT OFF IN A YEAR'S TIME BECAUSE IT IS -- IT IS AWFUL HOW THE SENIOR CITIZENS ARE -- BEHIND MY BUSINESS PLACE, IN THE NEIGHBORHOOD, WHEN THEY GO TO THE RECREATION CENTER, THEY HAVE TO WALK ON CALLES BECAUSE THERE'S NO SIDEWALK. THE SIDEWALK AREA IS OPENED FOR THE LAST 20, 25 YEARS, BY STORAGE TRAILER THAT IS TAKING SOME OF THE STREET THERE. ENFORCEMENT HERE WILL BE A PART OF THIS TEMPORARY IMPROVEMENT, SOMETHING THAT I INVITED THEM TO LOOK AT, BUT, YOU KNOW, MAYBE THEY DON'T MIX WITH THOSE. I DON'T KNOW. I WOULD BE GLAD TO SHOW YOU, ANY ONE OF YOU.

MAYOR GARCIA: YOU CAN WORK WITH THE PLANNING TEAM, THAT WOULD BE REAL GOOD.

BUT I BEEN, OFFERING MY HELP AT ANY TIME. BUT THEY DON'T WANT IT. IF THEY DON'T WANT TO VISIT WITH ME, I DON'T THINK THEY WANT ME TO VISIT THEM. WHY, YOU KNOW, GO THROUGH THAT EXPENSE THERE TO MAKE IT LOOK LIKE SOMETHING NEW IN THE MIDDLE OF THE STREET, WHERE THE PROBLEMS HAPPEN AND NOT PROVIDE AT LEAST 80 MORE FEET OF SIDEWALK FOR THE PEDESTRIANS THAT YOU ARE CROSSING RIGHT THERE, THIS IS JUST ONE OF THE PROBLEMS THAT I SEE WITH SOME OF THE WORK FOR THE CITY OF AUSTIN FOR THAT PART OF TOWN.

MAYOR GARCIA: WE WILL LOOK AT IT --

NOT ONLY ON THIS PLANNING TEAM, ON ANY OTHER PLANNING TEAM THAT YOU HAVE.

MAYOR GARCIA: WE WILL LOOK AT,.

PLEASE, THANK YOU, GOD BLESS YOU ALL, PLEASE LOOK INTO IT. I DON'T MIND HAVING YOU OVER THERE AS A VISITOR ANY TIME.

MAYOR GARCIA: THANK YOU. OTHER QUESTIONS? THAT'S ALL OF THE ITEMS THAT WE HAVE IN THE BRIEFING SESSION. THANK YOU, MR. LIBRACH, MS. GORDON. I DIDN'T GET YOUR PLANNER'S NAME, BUT I THANK YOU VERY MUCH, TOO. WE HAVE ONE ITEM FOR EXECUTIVE SESSION THAT IS ALSO IN THE EXECUTIVE SESSION TOMORROW, SO MY RECOMMENDATION TO YOU, GIVEN THE TIME, THAT IS THAT WE DO IT TOMORROW. IT'S NOT GOING TO BE A LONG BRIEFING. SO -- SO WITH NO OBJECTION, WE WILL -- I WILL ENTERTAIN A MOTION TO ADJOURN. MOTION BY COUNCILMEMBER SLUSHER -- I MEAN COUNCILMEMBER GRIFFITH, SECONDED BY COUNCILMEMBER SLUSHER TO ADJOURN. ALL THOSE IN FAVOR SAY AYE.

OPPOSED NO? MOTION CARRIES ANONYMOUSLY. MOTHERMOTION CARRIES UNAMIOUSLY. MOTION CARRIES UNANIMOUSLY,

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