Closed Caption Log, Council Worksession
Wednesday, April 24, 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: THERE BEING A QUORUM OF THE COUNCIL, IN THE ROOM, I'M GOING TO CALL TOO ORDER THE WEDNESDAY, APRIL 24TH, 2002 WORK SESSION OF THE AUSTIN CITY COUNCIL. WE'RE AT ONE TEXAS CENTER, 505 BARTON SPRINGS ROAD, THIRD FLOOR TRAINING ROOM. AND THE COUNCILMEMBERS THAT ARE HERE ARE WYNN, GRIFFITH, GARCIA AND SLUSHER. AND WE HAVE TWO ITEMS IN THE WORK SESSION. AND CITY ATTORNEY, I DON'T SUSPECT THAT WE NEED TO DO ANY EXECUTIVE SESSION. THERE'S NO EXECUTIVE SESSION POSTED ON THIS. NONE OF THESE ITEMS NEED TO GO TO EXECUTIVE SESSION, CORRECT?

THAT'S CORRECT.

MAYOR GARCIA: OKAY. THE FIRST ITEM IS -- THERE THEY ARE. I WAS GETTING A LITTLE UNEASY. I DIDN'T SEE YOU. ACTION PLAN FOR DRAWING SINGLE-MEMBER DISTRICTS FOR THE ELECTION OF COUNCILMEMBERS IN THE EVENT THAT PROPOSITION 3 ON THE MAY FOURTH 2002 BALLOT IS APPROVED BY THE VOTERS. MR. STEINER?

WE JUST WANTED TO PRESENT TO THE COUNCIL A WORK PLAN FOR COMING UP WITH THE DISTRICT MAP IN THE EVENT THAT PROPOSITION 3 PASSES AND LET YOU KNOW WHAT THE TIME LINE LOOKS LIKE AND WHAT JOBS WE HAVE TO DO DURING THAT TIME. THE ELECTION'S ON THE 4TH, OF COURSE, AND WE REALLY NEED TO GET OUR SUBMISSION OFF TO DOJ BY LATE SUMMER IN ORDER TO IMPLEMENT THE CHANGE IN THE 2003 ELECTIONS. THE -- SO TO GET A MAP DRAWN, WE WERE HOPING THAT IN THE MAY 8TH WORK SESSION, WHICH WILL BE -- IF THE PROPOSITION PASSES, THE FIRST ONE THAT WE KNOW THAT, YOU COULD GIVE TO US YOUR CRITERIA FOR CREATING DISTRICT BOUNDARIES. FOR EXAMPLE, DO YOU WANT TO STICK WITH THE IDEA THAT WE WON'T BE CUTTING NEIGHBORHOOD PLANNING AREAS, THINGS LIKE THAT, OR ANY OTHER CRITERIA THAT YOU WANT US TO CONSIDER IN MAP DRAWING. THE STAFF WOULD ALSO STAND READY TO PROVIDE MAP BUILDING ASSISTANCE TO COUNCILMEMBERS INTERESTING IN COMING UP WITH THEIR OWN MAPS. THEN AT THE MAY 15TH WORK SESSION WE WOULD HOPE THAT IF THE COUNCIL OFFICES COME UP WITH THEIR OWN MAPS, THEY COULD GET THEM BACK TO THE STAFF BY THAT DATE SO THAT WE COULD REVIEW THEM AGAINST THE CRITERIA THAT THE COUNCIL ESTABLISHED ON MAY THE EIGHTH. AND MAKE SURE, FOR EXAMPLE, THAT WE HAVE DONE A PLAUSIBLE JOB OF ENSURING MINORITY REPRESENTATION ON THE COUNCIL AND MAKING SURE THAT THE DISTRICTS ARE WITHIN THE NECESSARY ELECTION TOLERANCES. AND IF, FOR EXAMPLE, YOU WANT US NOT TO CUT NEIGHBORHOOD BOUNDARIES, WE COULD OVERLAY THE MAPS THAT COUNCILMEMBERS COME UP WITH AGAINST MAPS THAT SHOW THE NEIGHBORHOOD PLANNING AREAS AND THEN WE COULD LET THE COUNCILMEMBERS KNOW HOW THEIR MAPS -- IF COUNCILMEMBERS CHOOSE TO DRAW THEM, HOW THEY COMPARE. THEN AT THE MAY 23RD COUNCIL MEETING WE COULD GET BACK TO YOU WITH THAT INFORMATION AND COUNCIL COULD LET US KNOW WHAT MAPS YOU WANT US TO TAKE FORWARD INTO COMMUNITY MEETINGS. THEN ON MAY THE 24TH THROUGH JUNE THE 30TH THERE'S A PERIOD THERE WHERE FOUR COUNCILMEMBERS -- FOUR COUNCIL MEETINGS IN A ROW ARE CANCELLED, SO WE HAVE A BIG SPACE OF TIME FOR STAFF WORK. WE COULD SHOP THE MAPS AROUND TO THE COMMUNITY, AS WE DID BEFORE. HOPEFULLY THIS TIME WE'LL HAVE MORE TIME FOR ADVERTISING AND GETTING -- MAKING SURE THAT PEOPLE KNOW AND WE'LL TRY TO MAXIMIZE ATTENDANCE TO THE BEST WE CAN ON THOSE. THEN JULY 10TH WORK SESSION, GET BACK TO YOU AND GIVE YOU THE FEEDBACK THAT WE'VE GOTTEN FROM THE COMMUNITY AND YOU CAN BEGIN YOUR DELIBERATIONS. TWO PUBLIC HEARINGS IN JULY -- THREE PUBLIC HEARINGS IN JULY AND THEN AT THE JULY 25TH PUBLIC HEARING ALSO WE WOULD ASK THAT COUNCIL GO AHEAD AND FINALLY SELECT A MAP SO THAT WE CAN HAVE THE MONTH OF AUGUST FOR THE NECESSARY STAFF WORK TO GET THE SUBMISSION OFF TO DOJ. IF THAT'S AN ACCEPTABLE WORK PLAN, THEN THAT'S WHAT WE'LL PLAN ON DOING.

MAYOR GARCIA: OKAY. QUESTIONS? COUNCILMEMBER WYNN?

WYNN: MR. STEINER, IT SEEMS TO ME OUR SUBMISSION TO DOJ WILL BE ENHANCED OR LOOK BETTER IF THEY SORT OF ALSO RECOGNIZE OR GIVE US CREDIT FOR THE WORK THAT WE ATTEMPTED TO DO HERE PRIOR TO THE ELECTION, THIS LAST MONTH OR SO. SO I'D LIKE FOR IT TO AT LEAST HAVE THE APPEARANCE THAT WE'RE NOT STARTING OVER AGAIN COME MAY 8TH, THAT IN FACT WE'RE BUILDING ON, YOU KNOW -- UNFORTUNATELY, IT WASN'T A LOT, BUT THE PUBLIC FEEDBACK THAT WE GOT OVER THE LAST MONTH AND SORT OF ACKNOWLEDGING WHERE WE ALWAYS MET GEOGRAPHICALLY AROUND THE CITY, SORT OF BUILDING ON THAT VERSUS STARTING THAT FRIDAY.

OF COURSE, THE WORK THAT'S BEEN DONE HAS BEEN DONE AND ALL OF THAT WILL BE MADE KNOWN. THAT'S IT. WE JUST WANTED TO LET YOU KNOW WHAT OUR PLAN WAS AND GET A SENSE THAT THAT'S OKAY WITH THE COUNCIL.

MAYOR GARCIA: ANYBODY ELSE HAVE ANY COMMENTS, QUESTIONS? I HAVE MORE -- DO YOU HAVE ANY MORE THINGS?

THAT'S A SECRET SPECIAL PACKAGE.

WE HAVE MORE, BUT THERE'S JUST SORT OF A GRAPHIC DESCRIPTION.

MAYOR GARCIA: THIS IS SO THAT I WOULD UNDERSTAND WHAT YOU HAVE ON THE OTHER TRANSPARENCIES, RIGHT? I GET IT. OKAY. FURTHER QUESTIONS?

IF YOU CAN'T SEE BETTER THAN ME, THEY DON'T SHOW UP MUCH ON THAT ANYWAY.

MAYOR GARCIA: I HAVE ONE QUESTION THAT'S BEEN ASKED IN THE MEETINGS THAT I'VE GONE THROUGH WHERE I TALK ABOUT THIS PARTICULAR ISSUE. AND THOS HOWHOW MUCH WORK HAS BEEN DONE BY THE STAFF -- AND I GUESS IT'S A QUESTION FOR YOU, MR. ROBINSON, TAKING THE TWO MAPS THAT YOU DREW AND THE ONE THAT WAS DRAWN LATER THAT HAD THE OTHER ISSUES INCORPORATED, THE ONE THAT COUNCILMEMBER SLUSHER PRESENTED? HAVE YOU DONE ANYTHING TO TRY TO SEE IF THOSE TWO CAN BE MESHED IN SUCH A WAY THAT IT ADDRESSES THE ISSUE THAT WERE BROUGHT UP AND DISCUSSED?

WE'VE GONE THROUGH THE MECHANICAL OPERATIONS TO BLEND THOSE AND MOVE AHEAD AND TAKE INTO ACCOUNT COUNCILMEMBER ALVAREZ'S DISCUSSION, BUT WE HAVEN'T PRODUCED ANYTHING FORMALLY OR PROMULGATED THAT. AND SORT OF BEHIND THE CURTAIN WE'VE BEEN BUSY CONTINUING TO MANIPULATE THE DATA AND THE MAPS.

MAYOR GARCIA: DO YOU NEED ANY FURTHER DIRECTION FROM THE COUNCIL ON HOW TO PROCEED OR DO YOU HAVE ENOUGH DIRECTION AS YOU HAVE IT RIGHT NOW?

WELL, ON MAY THE 8TH WE WOULD LIKE TO KNOW, OR ANY TIME THE COUNCIL WANTS TO LET US KNOW WHAT INSTRUCTIONS YOU WANT US TO FOLLOW IN MAP CREATION AND WHAT CRITERIA YOU WOULD LIKE US TO APPLY AGAINST ANY MAPS THAT COUNCILMEMBERS WANT TO COME UP WITH. FOR EXAMPLE, RIGHT NOW THE CRITERIA THAT WE HAVE WERE -- TWO OF COURSE THAT REALLY ARE INFLEXIBLE BECAUSE WE HAVE TO COMPLY WITH THE ONE PERSON, ONE VOTE CRITERIA, WHICH IS WE WANT TO KEEP THE DISTRICTS AS POSSIBLE IN POPULATION. AND THE SECOND IS THAT WE WANT TO DO THE BEST WE CAN ON ENSURING THAT MEMBERS OF LANGUAGE AND RACIAL MINORITY HAVE THE BEST CHANCE WEEY HAVE TO ELECT MEMBERS OF THEIR CHOICE TO THE GOVERNMENT BODY. SO IN ADDITION TO THOSE, WHAT THE COUNCIL HAS TOLD US THAT HE WOULD LIKE US TO DO AS NOT CUT NEIGHBORHOOD PLANNING AREAS. AND WE ALSO UNDERSTAND BOTH FROM COUNCIL AND FROM THE COMMUNITY INPUT THAT YOU WOULD LIKE US TO TRY TO DO THE BEST WE CAN IN KEEPING COMMUNITIES OF INTEREST TOGETHER IN SOUTH AUSTIN. SO THAT IS A BIT OF A CHALLENGE AS YOU KNOW. SO THOSE ARE THE ONLY CRITERIA WE HAVE FROM COUNCIL NOW. AND IF COUNCIL WOULD LIKE TO ADD SOME TO THAT, THEN WE'D LIKE TO KNOW WHAT THOSE ARE, OR IF YOU WOULD LIKE TO TAKE SOME BACK AND SAY WELL, DON'T WORRY SO MUCH ABOUT NEIGHBORHOOD PLANNING AREAS, SOMETHING ELSE WE WOULD LIKE TO KNOW. BUT RIGHT NOW WE'RE WORKING WITH, IN ADDITION TO THE ONE PERSON, ONE VOTE AND VOTING RIGHTS CRITERIA THAT WE HAVE TO PAY ATTENTION TO, WE'RE WORKING WITH TRYING NOT TO CUT NEIGHBORHOOD PLANNING AREAS AS OUR MAJOR COUNCIL INSTRUCTED CRITERION.

MAYOR GARCIA: AND I THOUGHT THAT THE ISSUE OF COMMUNITIES OF INTEREST, I THINK IN SOUTH AUSTIN ALSO, CAME TO NORTH OF THE RIVER TO A CERTAIN EXTENT.

YES, SIR.

SO I GUESS KIND OF THE FRAMEWORK IS AFTER THE ELECTION TO COME BACK ON MAY 8TH AND ASK YOU TO -- TRY TO PUT THE CRITERIA, THE INTEREST ALL ON THE TABLE AND OUTLINE THEM AND THEN TO SPEND AEEK OR TWO WORKING WITH EACH COUNCIL OFFICE WITH SOME TECHNICAL SUPPORT TO SEE WHAT WE CAN DO WITH THE MAP AND BRING THOSE ALL BACK AND APPLY THE CRITERIA AGAINST THEM AS A WAY TO GET STARTED TO MEETING THAT AUGUST DEADLINE.

MAYOR GARCIA: QUESTIONS? MAYOR PRO TEM?

GOODMAN: THERE ARE ONLY A FEW WAYS THAT YOU CAN CONCEIVABLY DIVIDE UP INTO EIGHT THAT THE JUSTICE DEPARTMENT WOULD OKAY. IS THERE ANY WAY TO BRING THAT FROM BEHIND THE CURTAIN IN FRONT OF THE CURTAIN? ORIGINALLY WHAT I THOUGHT WE WERE GOING TO DO WAS AT LEAST PUT THE CONCEPT OUT THERE SO THAT VOTERS WOULD KNOW AS THEY WENT TO THE POLLS, EVEN IF THEY DIDN'T HAVE A MAP TO VOTE ON, PER SE, AT THAT TIME THERE WAS A MAP. BUT STILL THERE ARE ONLY A FEW BASIC WAYS TO DIVIDE UP. SO HOW ARE WE -- OR ARE WE TRYING TO GET THAT INFORMATION OUT TO PEOPLE RIGHT NOW?

THE TWO MAPS THAT WERE TALKED ABOUT AT THE LAST COUNCIL MEETING WHERE THERE WAS ON THE AGENDA, WHICH WAS THE FURS MEETING AT -- THE THURSDAY MEETING AT CONNELLY GUERRERO. , ARE ON THE WEBSITE. AND THERE ARE THREE DIFFERENT OPTIONS THAT ARE POSTED ON THE WEBSITE. THERE'S THE ONE THAT COUNCILMEMBER SLUSHER PRESENTED, THE ONE THAT STAFF HAD BEEN SHOPPING AROUND AND THE ONE THAT WE REFERRED TO AS THE PAN SUBURBAN THAT HAS THE LARGE WESTERN DISTRICT. AND SO THOSE ARE THE THREE THAT ARE -- THAT ARE CURRENTLY ON THE WEBSITE FOR PEOPLE TO LOOK AT.

GOODMAN: I'M NOT SURE ABOUT THE LARGE SUBURBAN, BUT WHAT ABOUT THE ONE THAT I GOT THE IMPRESSION YOU WERE SAYING FROM WHEN COUNCILMEMBER ALVAREZ SUGGESTED THAT MAYBE THERE WAS A WAY TO MODIFY COUNCILMEMBER SLUSHER'S INTO --

COUNCILMEMBER ALVAREZ DID SUGGEST CUTTING DISTRICT 6 AND 7 IN THE ONE THAT I'LL CALL -- IN THE ONE THAT COUNCILMEMBER SLUSHER PRESENTED, WHICH WE CALLED OPTION B, CUTTING THOSE TWO DISTRICTS HOR SON ACTUALLY RATHER THAN VERTICALLY. I DON'T KNOW IF RYAN HAS HAD A CHANCE TO ACTUALLY DRAW THAT MAP YET.

WE'VE DONE SOME PRELIMINARY WORK WITH IT, BUT HAVEN'T POSTED IT. AND COULD VERY WELL DO IT, AGAIN, TO SORT OF GIVE THE VOTERS AN IDEA OF THE RANGE OF POSSIBILITIES THAT THEY WOULD BE CHOOSING FROM. FOR EXAMPLE, LAST NIGHT AT THE CANDIDATE'S FORUM WE SPENT SOME TIME TALKING WITH THOSE FOLKS. AND THESE IN ANY WAY THE FINAL MAPS, BUT THEY REPRESENT POTENTIAL MAPS AND SORT OF -- I TRIED TO BUILD AANALOGY OF A CONTINUUM OF MAPS TO TRY AND ACCOMPLISH DIFFERENT THINGS.

WHICH FOUR?

WHAT I WANT TO CALL THE GREAT BALANCE CONES FORUM THAT WE ALL ENJOYED ATTENDING LAST NIGHT.

GOODMAN: IS THERE A WAY TO GO BEYOND JUST POSTING ON THE WEBSITE? AND I DON'T KNOW EXACTLY WHAT. I DON'T WANT TO CAUSE US TO SPEND A LOT OF MONEY, BUT IT SEEMS LIKE A LOT OF PEOPLE ARE UNAWARE OF WHAT WE'VE BEEN DISCUSSING IN TERMS OF THE MAPS. AND AGAIN, I THINK THAT SINCE THERE ARE SO FEW WAYS THAT WE COULD CONCEIVABLY THINK OF BEING APPROVED THAT IT'S A RELATIVELY MINIMAL AMOUNT OF INFORMATION AND A LOT OF FOLKS -- WE'VE BEEN TALKING ABOUT THE MAP, BUT THEY DON'T SEEM TO KNOW WHAT WE WERE SCUG SCUSSING OR WHAT -- DISCUSSING OR WHAT THE CONFIGURATION WAS. SO BEYOND POSTING IS THERE ANYTHING THAT WE CAN DO TO GET THE INFORMATION OUT SINCE AS FAR AS I KNOW, NO CAMPAIGN IS ACTIVELY WORKING OUT THERE TO PROPOSE THE CONCEPT AND TAKE IT AROUND TO PEOPLE.

LET ME EXPLORE A FEW IDEAS WITH MICHELLE, OUR PUBLIC INFORMATION OFFICER, AND WITH JOHN AND RYAN. WE COULD TRY TO DO A FEW THINGS THROUGH CHANNEL 6. AND I DON'T KNOW THE SCHEDULE FOR GETTING OUT THE NEIGHBORHOOD NEWSLETTER, BUT IF WE HAVE CAUGHT THAT LED LINE, WE MIGHT BE ABLE TO GUT PUTT AN INSERT TO THAT. THAT GOES OUT TO 400 REGISTERED NEIGHBORHOOD ASSOCIATIONS. SO LET ME EXPLORE A FEW THINGS THAT WE MIGHT WITH DO HERE AT THE END.

GOODMAN: AND WHAT I WOULD ALSO SUGGEST IS THAT WE DO LOOK AND SEE IF THE CONCEPT THAT COUNCILMEMBER ALVAREZ WAS SUGGESTING CAN BE SOME OF WHAT GOES ON OUT.

MAYOR GARCIA: I HAVEN'T BEEN TO THE NEIGHBORHOOD FORUMS LIKE YOU GUYS HAVE, BUT I'VE SPOKEN TO SEVERAL GROUPS ABOUT IT. AND I DON'T KNOW WHY, BUT FOLKS DON'T UNDERSTAND EXACTLY WHAT WE'RE DOING, AND I THINK IN SOME NEWS VENUES WE'VE BEEN ACCUSED OF NOT PROVIDING LEADERSHIP ON THIS ISSUE. AND THE FACT OF THE MATTER IS THAT, YOU KNOW, WE -- USUALLY THIS KIND OF ISSUE THE NEIGHBORHOOD GOES OUT -- THE COMMUNITY GOES OUT AND FORMS THE ADVOCACY GROUPS. APPARENTLY ON THIS ONE, YOU KNOW, THAT HASN'T HAPPENED. AND I DON'T KNOW WHY, YOU KNOW, BUT I THINK IT'S ALSO, I GUESS, FROM LACK OF INFORMATION -- LACK OF INTEREST ON THE PART OF PEOPLE ON THIS PARTICULAR ISSUE. THAT'S WHAT I'VE NOTICED. AND I'VE TALKED TO SOME GROUPS THAT SHOULD BE SOPHISTICATED ENOUGH TO UNDERSTAND ALL THE ISSUES, BUT I GUESS OTHER THINGS, YOU KNOW, HAVE BEEN ON THEIR MINDS AND THIS IS NOT A VERY HIGH PRIORITY. EVEN IN THE DALLAS PAPER ON SUNDAY THEY HAD AN ARTICLE ABOUT THIS, AND IT APPEARED LIKE AUSTIN WAS HAPPY WITH THE AT-LARGE SYSTEM AND WANTED TO STAY THERE. THAT'S THE ESSENCE OF THAT ARTICLE. SO I THINK THE CITY MANAGER'S PROPOSAL IS A GOOD ONE. CHANNEL 6. AND IT WOULD BE EXPLAINING THE ISSUES SO THAT PEOPLE UNDERSTAND AND WE CAN TAKE THE ONE ONE WAY OR THE OTHER.

GOODMAN: MAYBE WE NEED TO PUT THAT DISCLAIMER ON AS WELL, THE CITY, PER SE, CANNOT ENGAGE IN A CAMPAIGN. TYPICALLY THE PROGRESSIVE SIDE OF THE COMMUNITY HAS PROVIDED THE CAMPAIGN, STAFF AND ORGANIZATION AND THEY'RE PERHAPS DOING OTHERS THINGS. THOSE WHO NOW SAY THEY FAVOR --

MAYOR GARCIA: LET ME SAY, MAYOR PRO TEM, THAT THE THAT THIS 1994 I WAS RUNNING UNOPPOSED AND I CHOSE NOT TO CAMPAIGN FOR MY REELECTION BECAUSE I DIDN'T HAVE ANYBODY RUNNING AGAINST ME. BUT I TOOK ON THE SINGLE-MEMBER DISTRICTS. AND I WAS OUT THERE BY MYSELF ON THAT ONE. I MEAN, I DON'T KNOW EXACTLY -- AND IT ALMOST PASSED. IT CAME WITHIN THREE OR FOUR PERCENTILE POINTS OF PASSING. I DON'T KNOW WHAT ELSE TO TELL YOU. IT SEEMS TO ME THAT PLANT IS VERY GOOD AND THAT PEOPLE OUGHT TO CONSIDER IT SERIOUSLY, BUT, YOU KNOW, THIS IS AMERICA AND DEMOCRACY WORKS THAT WAY. PEOPLE MAKE THEIR DECISIONS.

MY OFFICE HAS BEEN WORKING WITH GROUPS THAT HAVE SHOWN INTEREST IN THE MAPS AND WE HAVE GOTTEN MATERIALS TO THEM. AND THERE HAS BEEN INTEREST FROM NEIGHBORHOOD GROUPS AND THE CANDIDATE'S FORUM. SO THERE HAS BEEN DISSEMINATION OF THAT INFORMATION AT LEAST THROUGH THOSE AT LEAST.

AND ALTHOUGH WE CAN'T, YOU KNOW, CAMPAIGN, WHAT WE CAN AND SHOULD DO IS PROVIDE INFORMATION. AND THAT'S WHY I'LL WORK WITH JOHN AND RYAN ON WHAT WE CAN PUT TOGETHER FOR CHANNEL 6 AND IN THE NEIGHBORHOOD NEWSLETTER IF WE CAN CHACH THAT IN TIME. I'LL SEE WHAT WE CAN DO ABOUT THAT.

MAYOR GARCIA: WHAT I WAS REFERRING TO, NOBODY HAS BEEN PASSIONATE ABOUT THIS PARTICULAR ISSUE. I DON'T KNOW EXACTLY WHY, BUT THEY'RE NOT.

WYNN: MAYOR? JUST TO BUILD ON THAT, WHAT'S INTERESTING IS CLEARLY WE HAVEN'T SEEN AN ADVOCACY GROUP SORT OF ORGANIZED OUTSIDE OF THE CITY AND PROMOTE PROPOSITION 3, BUT IN THE SAME LIGHT, THERE HASN'T BEEN ADVOCACY AGAINST IT AS WELL. THERE'S SORT OF NO ORGANIZATION ON EITHER SIDE, WHICH SEEMS TO ME RATHER UNUSUAL FOR A MAJOR PROPOSITION. THERE'S NO CAMPAIGN EITHER FOR OR AGAINST. AND MAYBE THAT JUST SPEAKS, YOU KNOW, APPROPRIATELY THAT, YOU KNOW, IT'S A COMPLICATED ENOUGH ISSUE AND THAT INDIVIDUAL CITIZENS ON SORT OF AN INDIVIDUAL BASIS ARE GOING TO VOTE R NAY AND THERE'S SO MANY NUANCES THAT YOU'RE NOT SEEING ADVOCACY EITHER WAY.

MAYOR GARCIA: FURTHER QUESTIONS? MR. STEINER, MR. ROBINSON, THANK YOU VERY MUCH. YOU'LL BE IEBL TO GET OUT OF WORK SESSION RELATIVELY UNSCATHED AS FAR AS TIME GOES. THE NEXT ITEM ON THE AGENDA IS ON OVERVIEW OF FUNDING FOR HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS. AND WE HAVE -- WELL, CITY MANAGER, DO YOU WANT TO INTRODUCE THIS?

WE HAVE A CAST OF MANY HERE. WE ACTUALLY HAVE -- I BELIEVE, PAUL, YOU HAVE A NUMBER OF YOUR KEY STAFF IN THE AUDIENCE AND PAUL WILL BE INTRODUCING ACTUALLY OUR NEW ASSISTANT DIRECTOR AT HOUSING, LIBBYMORAN. SPEAF WHAT WE'RE HOPING TO ACCOMPLISH HERE, THE HOUSING FUNCTION AND FUNDING IS COMPLEX AND INTERWORCH AND WE WANTED TO JUST GIVE A BRIEF OVERVIEW SO THAT THE COUNCIL IS REMINDED OF WHAT THE DOLLARS ARE, HOW THEY FLOW AND WHAT THEY CAN BE USED FOR AS WE MOVE THROUGH THE PROCESS OF ALLOCATING THOSE FUNDS WITH YOU.

GOOD MORNING MAYOR, MAYOR PRO TEM, COUNCILMEMBERS. I'M ASSISTANT CHIEF MICHAEL MCDONALD, ACTING CITY MANAGER. AS THE CITY MANAGER STATED, WHAT WE'D LIKE TO DO THIS MORNING IS TO GIVE YOU AN OVERVIEW OF HOUSING AND COMMUNITY DEVELOPMENT. THERE'S BEEN A LOT OF QUESTIONS IN THE PAST REGARDING SOME OF THE FUNDING SOURCES, ALONG WITH THE VARIOUS PROGRAMS THAT WE HAVE IN PLACE TO HELP OUR RESIDENTS THAT HAVE SPECIAL NEEDS ACHIEVE SUFFICIENT SELF-SUFFICIENCY. SO THE DIRECTOR OF NEIGHBORHOOD HOUSING AND DEVELOPMENT, PAUL HILGERS, IS HERE WITH ME, ALONG WITH THE DEPUTY DIRECTOR, MR. MORAN. AND I'LL TURN IT OVER TO PAUL.

THANK YOU, CHIEF. MY NAME IS PAUL HILGERS AND I AM THE COMMUNITY DEVELOPMENT OFFICER AND THE DIRECTOR OF NEIGHBORHOOD HOUSING AND COMMUNITY DEVELOPMENT. AND I REALLY APPRECIATE THE OPPORTUNITY TO ADDRESS THESE IMPORTANT ISSUES BEFORE YOU AND GIVE YOU A REVIEW AND FOR SOME OF YOU AN OVERVIEW OF HOW OUR FUNDING PROCESS WORKS. I'D LIKE TO START BY THANKING CMO FOR LETTING ME GO DO THAT AND THE CHIEF FOR HIS SUPPORT IN THIS. I'D LIKE TO TAKE A MOMENT AND INTRODUCE TO YOU THE NEWEST EMPLOYEE IN MY DEPARTMENT, DEPUTY DIRECTOR MORAN. I AM EXTREMELY EXIEPT EXCITED TO HAVE THE BENEFIT OF HER VAST KNOWLEDGE AND EXPERIENCE AND TO HAVE HER ON MY TEAM IS ANOTHER INDICATION OF THE KIND OF SUPPORT THAT WE RECEIVE FROM THIS ADMINISTRATION. WE APPRECIATE IT VERY MUCH. ALSO WE HAVE ASSISTANT DIRECTORS IN THE AUDIENCE HERE SUPPORTING ME AS WELL. ASSISTANT DIRECTOR IN CHARGE OF THE AUSTIN HOUSING FINANCE DIRECTION IS ROGER ARIEGA, AND ASSISTANT DIRECTOR IN CHARGE OF NEIGHBORHOOD HOUSING AND COMMUNITY DEVELOPMENT IS MR. DERAND. AND ALSO MY PUBLIC INFORMATION OFFICER, JULIE BEGGS. SO WE WILL GO THROUGH A VARIETY OF SLIDES, VERY MANY, AND I WILL DO MY BEST TO BE AS BRIEF AS POSSIBLE, BUT VOI PROEU YOU A GREAT DEAL OF INFORMATION. YOU WILL HAVE A PACKET OF INFORMATION PROVIDED TO YOU, WHICH IS BEING SORTED THROUGH RIGHT NOW, SO YOU WILL HAVE THAT INFORMATION TO FOLLOW ALONG WITH ME. WHAT WE'RE TEEMENTING TO DO IS PROVIDE YOU WITH A GENERAL OVERVIEW WITH AS MUCH SPECIFICS AS POSSIBLE ABOUT OUR FUNDING PROCESS. WE START WITH REALLY THE APPROVED BUDGET THAT WE HAD LAST YEAR. ONE OF THE THINGS THAT THIS SLIDE IS INTENDED TO SHOW IS JUST A VERY TECHNICAL VERSION OF WHAT THE SOURCES AND USES OF OUR REVENUE ARE THAT FUND OUR DEPARTMENT. THIS SLIDE REFLECTS THOSE SOURCES AND USES THAT WERE IN THE APPROVED BUDGET FOR THIS CURRENT FISCAL YEAR. IT IS INTENDED TO SHOW THAT WE RECEIVED OUR FUNDS FROM A -- A VARIETY OF OUR FUNDS, NINE MILLION DOLLARS BASICALLY IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS AND 4.2 BILLION DOLLARS IN THE HOME GRAHAM AS THE MIGHT MARY SOURCES OF RENEW. BUT WE ALSO RECEIVE FUNDS FROM THE GENERAL FUND. A TRANSFER AND FUND BALANCE OF 2.1 MILLION DOLLARS THIS YEAR, AN ADDITIONAL MILLION DOLLARS IN THE HOUSING TRUST FUND AND THEN A ALLOCATION OF 3.1 IN WHAT WE CALL THE CAPITAL IMPROVEMENT PROGRAM, WHICH FUNDED THE ACQUISITION OF COLONY PARK. FUNDAMENTALLY, AND MOST IMPORTANTLY, I GUESS, THE CITY OF AUSTIN IS THE GRANT RECIPIENT FOR THIS AREA FOR FEDERAL FUNDS. AND AS THE GRANT RECIPIENT, WE HAVE CERTAIN RESPONSIBILITIES TO HUD THAT WE MUST MAINTAIN AND CONTINUE TO PROVIDE. AND YOU'LL RECALL THAT OUR DEPARTMENT IS GETTING READY AND WE ARE IN THE PROCESS NOW OF ANOTHER ANNUAL ACTION PLAN FOR OUR CONSOLIDATED PLAN. OUR ALLOCATION PROCESS IS FOCUSED ON CITIZEN PARTICIPATION. IT IS A CITIZEN DRIVEN PLAN GENERATED FROM THE INPUT WE RECEIVED FROM THE CITIZENS. IT BEGINS WITH THIS FIVE-YEAR ALLOCATION -- FIVE-YEAR CONSOLIDATED PLAN, WHICH WE DID IN THE YEAR 2000, AND THAT'S A MUCH MORE COMPETENCE SIEVE CITIZEN PARTICIPATION PROCESS THAN OUR ANNUAL PLAN, BUT THAT SATURDAYS THE PROCESS WEVMENT DETERMINE FROM THAT PROCESS THE PRIORITIES THAT ARE OUT THERE IN COMMUNITY AND THEN WE DEVELOP ONE-YEAR ACTION PLANS. EACH ONE OF THOSE ALSO HAS CITIZEN INPUT AS WELL. FROM THAT WE DEVELOP OUR BUSINESS PLAN, DETERMINE HOW WE'RE GOING TO IMPLEMENT THE PROGRAMS. WE DO THAT BY BRINGING THOSE PROGRAMS BACK TO THIS COUNCIL FOR THEIR APPROVAL. AND THEN EVEN OUR CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT ARE SUBJECT TO A CITIZEN PARTICIPATION PROCESS, SUBJECT TO A 30-DAY REVIEW AND COMMENT PERIOD AS OUR PLANS ARE. THE FEDERAL FUNDING PROCESS, AS I SAID, INCLUDES THREE BASIC STEPS, THE PUBLIC INPUT FOR PLAN DEVELOPMENT, THE PUBLIC RESPONSE TO THE HUD ANNUAL ACTION PLAN AND THEN OUR FINALIZING OF THAT ACTION PLAN. WE DID A COMMUNITY NEEDS SURVEY WHERE WE SEND IT TO OUR CLIENTS. WE DID OVER 3,000 SURVEYS THIS YEAR THAT WE'RE TABULATING FOR THAT PROCESS. WE HAVE FOUR STAKE STAKEHOLDERS MEETINGS IN WHICH WE TALK TO PROVIDERS ABOUT THEIR -- WHAT THEY SEE AS TRENDS AND WHAT THEY SEE AS NEEDS IN OUR PROCESS. AND THEN WE HAVE TWO PUBLIC HEARINGS AT THE COMMUNITY DEVELOPMENT COMMISSION TO LISTEN TO INPUT FROM THE PUBLIC. THIS YEAR WE DID SOMETHING UNIQUE IN THAT WE -- IN ONE OF OUR PUBLIC HEARINGS WE JOINED IT WITH THE SUPER NOVA'S HOUSING CONTINUUM PROCESS TO MAKE SURE WE ARE MAKE SURE OUR PROGRAMS ARE COORDINATED WITH THOSE OF THE HOMELESS POPULATION THAT WE'RE TRYING TO SERVE AS WELL. AFTER THAT WHAT WE'LL DO IS WE'RE IN THE PROCESS OF FINALIZING RIGHT NOW OUR DRAFT ACTION PLAN. AND I'LL TALK MORE ABOUT SOME OF THE SPECIFICS WE'RE SEEING ABOUT THAT. THAT PLAN WILL BE SUBJECT TO A 30-DAY COMMENT PERIOD AND THEN WE WILL HAVE TWO CITY COUNCIL HEARINGS, ONE ON MAY THE 23RD AND ONE ON DISWRUN THE 27 TOTH RECEIVE INPUT ON DRAFT PLAN. AFTER THAT WE FINALIZE THE ACTION PLAN BY TAKING IT BACK TO THE COMMUNITY COMMISSION, BUT THE CITY COUNCIL HAS THE FINAL AUTHORITY ON HOW THESE FUNDS ARE ALLOCATED AND DISTRIBUTED. BASED UPON ALL OF THAT INPUT AND OUR RECOMMENDATIONS AND THE RECOMMENDATIONS OF THE CDC, OUR EFFORT IS TO TRY TO JOIN WITH THE CDC IN THEIR RECOMMENDATIONS MOST OF THE TIME THAT HAPPENS. WE ALWAYS BRING IT TO THE COUNCIL FOR THEIR FINAL REVIEW AND APPROVAL AND THEN IT'S SUBMITTED TO HUD BY AUGUST THE 15TH. IT'S IMPORTANT TO NOTE THAT OUR CITIZEN PARTICIPATION PLAN EXCEEDS THE STANDARDS THAT HUD REQUIRES AND IS IN ADDITION TO ALL OF THE DIFFERENT PROCESSES AND PUBLIC INPUTS WE HAVE AT OUR BUDGETING PROCESS AND AT OUR ALLOCATION OF CONTRACTS PROCESS. JUST TO REVIEW, IN OUR LAST FIVE-YEAR PLAN, WE HAD THESE PRIORITIES RECOGNIZED AS THE HIGHEST PRIORITY NEEDS IN AUSTIN. ONE, AFFORDABLE HOUSING. THAT AFFORDABLE HOUSING INCLUDES ACCESSIBLE HOUSING FOR OUR PRIORITIES. REFERENCED REALLY THROUGH OUR VOLUNTARY COMPLIANCE THROUGH ADAPT, BUT HAS OWNER OCCUPIED HOUSING, FIRST TIME OWNER HOUSING AND RENTAL HOUSING. OUR PRIORITY, RENT AT HOUSING, NEW CONSTRUCTION FOR 50% OR BELOW MEDIAN FAMILY INCOME, THAT'S REFLECTED IN THE 75% OF OUR HOUSING TRUFLT FUND DOLLARS OR AT INDICATED FOR THAT PURPOSE. BUT ALSO THE PRIORITIES ARE FOR CHILD CARE SERVICES, YOUTH SUPPORT SERVICES, FAIR HOUSING COUNSELING AND HOUSING AND INFORMATION REFERRAL SERVICES. THAT FIVE-YEAR PLAN REALLY PROVIDES THE FRAMEWORK FOR WHAT WE BUILD ON THE ACTION PLANS, BUT THEY CAN MODIFY THE GOALS BASED ON THE CHANGES IN THE ECONOMY. THE ECONOMY IS DIFFERENT TODAY THAN IT WAS IN 2000. AND SO WE NEED TO BE MINDFUL THAT THE PLAN ALLOWS US TO DO SOME MODIFICATIONS. THE CITY COUNCIL HAS TAKEN A LEADERSHIP ROLE IN IMPLEMENTING THE RECOMMENDATIONS FOUND IN THE COMMUNITY ACTION NETWORK THROUGH THE ROOF REPORT, AND WE'VE UNDERGONE A FUND MAINTAIN TALL CHANGE IN OUR DEPARTMENT THROUGH THE LAST FIVE YEARS. IT WAS DISCUSSED IN OUR LAST BUDGET THAT WE WENT FROM A FEDERAL FUNDED PRACTICAL TO A PROGRAM THAT HAS A MORE COMPREHENSIVE AND STRATEGIC APPROACH TO DEALING WITH HOUSING AND COMMUNITY DEVELOPMENT. AND IN ORDER TO PROVIDE A FRAMEWORK AND A STRATEGY FOR INVEFLTING OUR RE -- INVESTING OUR RESOURCES, THE COUNCIL HAS ADOPTED THE IDEA OF A HOUSING CONTINUUM FOR ONE OF IT'S POLICY. A SECOND POLICY IS A POLICY THAT SAYS WE SHOULD INVEST OUR HOUSING DOLLARS ACCORDING TO THOSE WHO ARE IN NEED. THE HOUSING CONTINUUM ALLOWS US TO EVALUATE OUR PROGRAMS ON HOW THEY ASSIST RESIDENTS IN MOVING TOWARD SELF-SUFFICENCY. THAT'S THE GOAL OF THE HOUSING PROGRAMS. ALSO AND PERHAPS MORE IMPORTANTLY, IT PROVIDES A FRAMEWORK FOR US TO KEEP ALL THE HOUSING PROVIDERS AT THE TABLE. TO KEEP THEM FROM COMPETING FOR THE LIMITED PUBLIC DOLLARS THAT WE HAVE, BUT TO FIND A PLACE SO THAT ALL OF THE HOUSING PROGRAMS CAN BE DLAB RA ACTIVE AND YOU CAN PARTNER WITH THEM. IT RECOGNIZES THE REALITY TA THE CITY OF AUSTIN IS NOT THE ONLY ENTITY INVOLVED WITH HOUSING PROGRAMS. YOU HAVE THE AUSTIN HOUSING AUTHORITY, A VARIETY OF NONPROFITS HERE THAT ARE PROVIDING HOUSING ASSISTANCE. AND IT PUTS THE CITY OF AUSTIN IN ONE OF A FACILITATION ROLE AND A LEADERSHIP ROLE IN HELPING TO INCREASE THE NUMBER OF AFFORDABLE HOUSING SPOTS IN THE COMMUNITY. THE NEXT SLIDE, ALTHOUGH IT IS COMPLICATED AND IT'S ONE OF THOSE SLIDES YOU HATE TO PUT IN BECAUSE IT IS SO COMPLICATED, IT REALLY IS ATTEMPTING TO SHOW OUR HOUSING OPTIONS FOR THE POPULATIONS THAT WE SERVE ARE REALLY BASED UPON THEIR INCOMES. THAT DIFFERENT HOUSING STRATEGIES ARE MORE APPROPRIATE FOR DIFFERENT INCOMES THAT YOU'RE TRYING TO SERVE. ONE OF THE THINGS THAT IS TRUE ABOUT THIS ECONOMY IS THAT THE HOUSING NEEDS ARE REFLECTED IN BOTH MODERATE INCOME FAMILIES, LOW INCOME FAMILIES AND VERY LOW INCOME FAMILIES. AND WHAT THIS CHART IS INTENDED TO SHOW IS THAT AUSTIN HAS A VARIETY OF STRATEGIES FROM MARKET HOME OWNERSHIP, RENTAL, LOW INCOME TAX CREDITS, HOME FUNDED ASSISTANCE, SECTION 8 PROPERTIES AND WHAT WE -- WHAT THE STRATEGY IS TO LAYER THOSE ACTIVITIES IN A WAY THAT THE MORE -- THAT THE LOWER THE INCOME LEVEL, THE MORE SUBSIDIES IS GOING TO BE REQUIRED TO PROVIDE HOUSING FOR THOSE FAMILIES. AUSTIN IS BLESSED AND CURSED WITH A HIGH LEVEL OF MEDIAN FAMILY INCOME. IT'S ADJUSTED BY HUD TOWN DOUN TO A 68,000-DOLLAR LEVEL FOR A FAMILY OF FOUR. BUT THAT MEANS THAT FAMILIES THAT ARE ELIGIBLE CAN MAKE UP TO $54,000. A FAMILY OF FOUR, $54,400. SO YOU'RE TALKING ABOUT HALF THE POPULATION OF AUSTIN BEING ELIGIBLE FOR THE SERVICES THAT WE OFFER. IN OUR PROGRAMS WE HAVE DESIGNED THEN THEREFORE OUR HOUSING PROGRAMS BASED UPON THIS KIND OF A FOCUS. THE PROGRAMS BASED UPON AND DESIGNED AROUND AND INVESTMENTS DESIGNED AROUND THE DIFFERENT LEVEL OF INCOME THAT WE ARE TRYING TO SERVE. YOU SEE OUR SMART HOUSING PROGRAM IS AN ENHANCEMENT FOR THOSE PROGRAMS THAT ALLOW EVEN THE VERY LOW HOUSING DEVELOPMENTS TO MEET CERTAIN STANDARDS OF ACCESSIBILITY, TRANSIT ORIENTED STANDARDS, SAFETY AND THOSE KIND OF CONCERNS, BESIDES BECAUSE THE AFFORDABILITY STANDARD. BUT YOU CAN SEE THAT IN THE HIGHER INCOME STRATEGIES, WE CAN SUPPORT WITH SMART HOUSING PROGRAM ALONE, WATER AND WASTEWATER EA DID IN THE VILLAS OF GUADALUPE, WHICH MET 10% AFFORDABILITY. OR WITH THE HOUSING MORTGAGE CERTIFICATE PROGRAMS OR WITH A HOME OWNERSHIP REHABILITATION LOAN ON A HIGHER INCOME PROGRAMS MA WE SERVE ALL THE WAY DOWN TO WHERE WE SUBSIDIZE ON THE LEVEL THAT WE DID ON THE GARDEN TERRACE, WHICH IS A SINGLE HOME OCCUPANCY FACILITY. WHERE WE LOANED MONEY IN A DEFERT PAYMENT LOAN THAT WILL NOT BE PAID BACK AS LONG AS THEY USE THAT PROPERTY IN THE PURPOSE FOR WHICH WE LOANED THEM THE MONEY. SO THAT'S WHAT THAT CHART IS INTENDED TO SHOW. THIS NEXT CHART IS INTENDED TO SHOW THE REALITIES OF WHO WE HAVE SERVED WITH OUR FEDERAL DOLLARS THIS LAST YEAR AND WHAT WE'RE PROUD OF IS THAT YOU CAN SEE THAT WHAT WE HAVE DONE IS WHEN YOU LOOK AT ALL THE HOUSING PROGRAMS AND ALL THE CONTINUUM OF SERVICE THAT WE PROVIDE, THE MAJORITY OF OUR PERSONS THAT WE HAVE ASSISTED OR AT OR BELOW 30% OF MEDIAN FAMILY INCOME, WHICH IS A FAMILY OF FOUR OF ABOUT $21,000. 76% OF THE FAMILIES THAT WE SERVE ARE AT THAT LEVEL. ANOTHER 14%,, SO 90% OF THE FAMILIES THAT ARE SERVED WITH OUR FEDERAL DOLLARS ARE 50% OR BELOW MEDIAN FAMILY INCOME. THE REALTY IS ALSO THAT WE TALKING ABOUT IMAGE REPAIR, URBAN LEAGUE AND UNITED CEREBRAL PALSY DO A LOT OF -- THEY PROVIDE A LOT OF THOSE NUMBERS FOR THOSE UNITS AND THEY DO A LOT OF SERVICE. SO THAT'S ONE OF THE THINGS THAT DRIVES THE NUMBERS UP. LET ME SHOW YOU, THOUGH, THE APPROVED SOURCES OF FUNDING FOR THIS LAST YEAR. WITH YOUR APPROVAL OF OUR 2001 ACTION PLAN, YOU APPROVED BUDGET AUTHORITY TO USE NINE MILLION DOLLARS OF CDBG AND 4.2 MILLION DOLLARS OF HOME AND THOSE ARE REPRESENTED IN THE FIRST TWO CATEGORIES. AS YOU CAN SEE, THE MAIN THING TO SHOW HERE IS OUR OFFICE IS FUNDED WITH APPROXIMATELY 72% OF OUR OPERATIONS ARE FUNDED WITH THE GRANTS THAT COME FROM THE FEDERAL GOVERNMENT. IF YOU LOOK AT THE USES OF FUNDS, AND THIS IS JUST A PIE CHART THAT SHOWS THE -- THAT ONE WAS SOURCES, THIS IS THE USES OF FUNDS, OF THE APPROVED FUNDS, OVER 60% OF OUR FUNDS ARE USED TO CREATE OR RETAIN AFFORDABLE HOUSING HOW OOUNTS AND ANOTHER 23% ARE USED FOR THE COMMUNITY DEVELOPMENT ACTIVITIES. COMMUNITY DEVELOPMENT ACTIVITIES INCLUDE THE AUSTIN REVITALIZATION AUTHORITY, CHILD CARE SERVICES, AUSTIN TENANTS' COUNCIL AND NEIGHBORHOOD SUPPORT PROGRAMS, JUST TO NAME A FEW. NOW, THAT'S WHAT WE'VE DONE. WHAT I WANT TO GET INTO BRIEFLY IS TO GO OVER SOME IDEA OF HOW THESE PROGRAMS ARE GOING TO BE BROKEN OUT INTO ACTIVITIES FOR THE NEXT FISCAL YEAR. WHAT WE'RE SHOWING IS WE'RE RECEIVING APPROXIMATELY 8.6 MILLION DOLLARS IN OUR COMMUNITY DEVELOPMENT BLOCK PROGRAM. IT WILL COME DOWN TO NHCD, GO THROUGH THE PLANNING PROCESS AND WE'LL PUT IT INTO ONE OF THOSE FOUR CATEGORIES. IF YOU FLIP THROUGH, IT WILL SHOW YOU WHERE WE SEE THESE ALLOCATIONS PRELIMINARY, WHERE WE ESTIMATE THAT THESE DOLLARS WILL BE ALLOCATED FOVMENT THE POINT TO SHOW YOU IS THAT THERE'S A LOT OF DEMAND FOR THESE LIMITED RESOURCES. AND 20% OF THOSE DOLLARS CAN BE SPENT ON ADMINISTRATION, NO MORE THAN 20% OF THE CDBG DOLLARS CAN BE SPENT ON ADMINISTRATION. THAT'S A LIMITATION AND THE FEDERAL GOVERNMENT PROVIDES IN THIS GRANT. SECONDLY, AND ONE THAT IS CONSTANTLY PUSHED AT THIS LOCAL COMMUNITY, IS PUBLIC SERVICE DOLLARS. CDBG IS NOT -- IS CONSIDERED IN WASHINGTON A BRICKS AND MORTAR PROGRAM. IT IS LIMITED TO 15% OF PUBLIC SERVICES. THERE'S A HUGE DEMAND FOR THOSE SERVICES, SO WE ALWAYS SPEND 15 -- THE 15% CAP ON PUBLIC SERVICES. AGAIN, THAT'S CHILD CARE, THAT'S YOUTH SERVICES, THAT'S NEIGHBORHOOD SUPPORT KIND OF ACTIVITIES. AUSTIN TENANTS' COUNCIL ON FAIR HOUSING COUNSELOR IS, SUCH A CRUCIAL PART OF WHAT WE DO. YOU ALSO NOTICE THAT WE ANTICIPATE NEXT YEAR 18% OF OUR CDBG ALLOCATION BEING USED FOR DEBT SERVICE. AND THEN 24% OF OUR PROGRAM ALLOCATION WILL BE SPENT ON EITHER EMERGENCY HOME REPAIR OR THE ARCHITECTURAL BARRIER REMOVAL PROGRAM BECAUSE THOSE ARE SUCH IMPORTANT PROGRAMS IN THIS COMMUNITY AND THE OTHER PROGRAMS RESPECTIVELY. THAT'S HOW WE ANTICIPATE THE CDBG PROGRAM BEING AL KIT KATEED. YOU WILL HEAR MORE ABOUT THAT IN FUTURE WEEKS. THE HOME PROGRAM, AGAIN, IT WILL COME THROUGH AND BE TRANSFERRED TO THE AUSTIN AUSTIN HOUSING FINANCE CORPORATION AND BE ALLOCATED ACCORDING TO THIS NEXT CHART, WHICH SHOWS THAT THE WAY WE'RE APPROACHING THAT WE WILL BREAK THESE DOWN AND DIVIDE THESE UP IS 26% OF THEM WILL BE ON DOWN PAYMENT ASSISTANCE PROGRAMS TO HELP FAMILIES GET INTO HOMES. 23% ON RENTAL HOUSING PROJECTS, 15%, WHICH IS ANOTHER REQUIREMENT OF THE FEDERAL GOVERNMENT, A MINIMUM OF 15% MUST BE SPENT ON SERVING NONPROFIT HOUSING PROVIDERS. MANY COMMUNITIES HAVE A REAL DIFFICULTY WITH THIS 15% REQUIREMENT. WE ALWAYS GET MORE THAN 15% WHEN YOU LOOK AT WHAT WE DO WITH OUR RENTAL HOUSING PROJECTS BECAUSE WE ARE INCREASING OUR NUMBERS AND THE CAPACITY OF OUR NONPROFITS IN THE DMUNT. THE GUADALUPE NEIGHBORHOOD DEVELOPMENT CORPORATION, HABITAT FOR HUMANITY ARE SOME OF THOSE THAT WE HAD THE MOST SUCCESS WITH AND WE'RE ADDING NUMBERS TO THOSE FIGURES. BLACK LAND COMMUNITY DEVELOPMENT CORPORATION IS ANOTHER ONE THAT RECEIVES FUNDS JUST RECENTLY FROM US. 10% IN ADMINISTRATION, THREE% IN HOME REHABILITATION AND 11% IN A LENDING GUARANTEE PROGRAM THAT WE'LL TALK MORE ABOUT AT A LATER TIME. THE NEXT CHART AND THE NEXT SOURCE OF FUNDS REALLY FOCUSES ON ONE THAT IS A LITTLE BIT UNCLEAR AS WELL AND NEEDS MOME MORE EXPLANATION, WHICH IS THE HUD 108 PROGRAM. THIS NEXT YEAR IT WILL BE SPENDING SIX MILLION DOLLARS ON THE HOMELESS SHELTER. THAT MONEY COMES DIRECTLY TO FUND PUBLIC FACILITIES. AND IF YOU'LL LOOK AT THE NEXT CHART IT WILL SHOW YOU THAT HERE'S THE WAY THE HUD 108 PROGRAM WORKS. ESSENTIALLY A GRANT RECIPIENT CAN RECEIVE UP TO FIVE TIMES THEIR ANNUAL ALLOCATION OF CDBG MONEY. SINCE WE RECEIVE ABOUT EIGHT MILLION DOLLARS, OUR TOTAL ALLOCATION WE CAN BORROW ESSENTIALLY AGAINST THAT IS ABOUT 40 MILLION DOLLARS. CURRENTLY BETWEEN WHAT WE HAVE COMMITTED TO THE 11TH AND 12TH STREET REVITALIZATION EFFORT, THE MILLENIUM YOUTH CENTER AND THE DOWNTOWN HOMELESS SHELTER AND OUR PENDING NEIGHBORHOOD COMMERCIAL DEVELOPMENT PROGRAM OF TWO MILLION DOLLARS WHICH HAS NOT BEEN FINALIZED YET, THAT'S A TOTAL OF ABOUT 25 MILLION DOLLARS. SO WE HAVE ABOUT 15 MILLION DOLLARS AVAILABLE FOR -- THAT WE COULD LOOK TO AND WE WILL BE LOOKING AND EXAMINING THOSE OPTIONS WITH YOU ABOUT WHAT WE MIGHT WANT TO APPLY FOR ADDITIONAL LOANS FOR. IT IS IMPORTANT THAT WE FIND REVENUE-GENERATING ACTIVITIES AND HOPEFULLY THE 11 AND 12TH STREET PROJECT SO THAT WE'RE NOT RELYING TOTALLY ON THE FUTURE CDBG ALLOCATIONS FOR DEBT SERVICE. WE HAVE TO PLEDGE THE DEBT SERVICE FROM OUR CDBG ALLOCATIONS LIKE WE DID IN OUR HOMELESS SHELTER, BUT WE'RE TRYING TO MINIMIZE THAT AND THIS PROGRAM COULD BE USED FOR THIS NEXT CHART WHICH SHOWS YOU IN AGAIN, TOO MUCH WORDS AND YOU WON'T BE ABLE TO READ IT. I'LL GO THROUGH IT WITH YOU. REHABILITATION OF PUBLICLY OWNED REAL PROPERTY, ACQUISITION OF REAL PROPERTY, HOUSING REHABILITATION ACTIVITIES THAT ARE ELIGIBLE UNDER CDBG, ECONOMIC DEVELOPMENT ACTIVITIES AND RELATED RELOCATION CLEARINGS AND SITE IMPROVEMENTS. THOSE ARE THE KIND OF ACTIVITIES THAT WE CAN OFFER. AND SO THE SECTION 108 PROGRAM IS ONE THAT HAS RISKS AND REWARDS AND WE WANT TO BRING THEM TO YOU CAREFULLY AND CAUTIOUSLY, BUT LOOK AT WHAT OTHER OBLIGATIONS WILL LEAD US TO IN THE FUTURE. REAL QUICKLY, OUR COMMUNITY DEVELOPMENT PROGRAM, IT SERVES FAMILIES, ALMOST ALL FAMILIES THAT IT SERVES ARE 80% BELOW MEDIAN INCOME. WE SERVE SOME AREAS WHERE SOME PEOPLE GET BENEFITS WHERE IT MEETH MOOETS A LOW MODERATE INCOME BENEFIT, WHERE SOME OF THE FOLKS MAY NOT BE 80% ARE BELOW, BUT THEY BENEFIT FROM IT, SO WE PUT IT IN THERE. OUR GOAL HERE IS TO CREATE OR PRESERVE 250 JOBS BY THE YEAR 2005, WHICH WE HAVE NO ACTION THAT WE'VE EXCEED. TO REVITALIZE EAST 11TH AND 12TH STRAIGHT AND OUR CHILD CARE, YOUTH SERVICES AND OUR OTHER SERVICES. THE PROGRAM THAT WE FUNDED LAST WEEK IN NEIGHBOR FEST IS A PROGRAM HAS FUNDED THROUGH OUR NEIGHBORHOOD SERVICES -- NEIGHBORHOOD SUPPORT PROGRAM. TO LOOK AT HOW THE FUNDING FLOWS, REAL QUICKLY, LOOK AND YOU SEE THAT FEDERAL DOLLARS COME FROM HUD TO THE CITY OF AUSTIN AND THEN IT'S ALLOCATED IN THIS DIFFERENT FUNDING AND PROGRAM ACTIVITIES. SMALL BUSINESS DEVELOPMENT, COMMERCIAL REVITALIZATION, NEIGHBORHOOD REVITALIZATION THND THEN OUR PUBLIC FACILITIES. THEN OUR HOUSING PROGRAM, SINCE SMART HOUSING, AHFC HAS BEEN THE LEAD AGENCY FOR THE CITY, SO THE DOLLARS GO DIRECTLY INTO THE CITY. IF YOU LOOK AT WHAT WE PROJECT FOR THIS NEXT YEAR, YOU WILL SIGH THAT OUR PARTNERSHIPS -- SEE THAT OUR PARTNERSHIPS WILL TOTAL A MINIMUM OF 39.7 MILLION DOLLARS. WE'RE BEING CONSERVATIVE IN WHAT WE ESTIMATE THE NUMBER OF BONDS THAT WE'LL ISSUE IN THIS NEXT FISCAL YEAR BECAUSE THE STATE HAS REVISED ITS ALLOCATION OF THE WAY IT DOES BOND FUNDING TO A REGIONAL ALLOCATION. YOU NEVER KNOW WHAT PROGRAMS ARE GOING TO FALL OUT OF THE BOND FINANCING AND THE TAX EXEMPT -- THE BOND FINANCING PROGRAMS AND YOU ALSO NEVER KNOW WHAT PROGRAMS ARE GOING TO COME UP THROUGH TAX EXEMPT BONDS THAT WE CAN ISSUE AT ANY POINT IN TIME. I'LL TALK A LITTLE BIT MORE ABOUT HOW SUCCESSFUL WE'VE BEEN IN THAT PROGRAM IN JUST SEAKD SECOND. JUST A QUICK OVERVIEW BY THE AUSTIN AUSTIN HOUSING FINANCE CORPORATION. IT IS -- IT DOES HAVE A SUB RECIPIENT RELATIONSHIP WITH THE CITY OF AUSTIN. IN OTHER WORDS, IT'S A PROVIDER OF HOUSING. THE COUNCILMEMBERS SERVE AS ITS BOARD OF DIRECTORS. IT'S FUNDED WITH BOTH CDBG HOME DOLLARS AND HOUSING TRUST FUND DOLLARS. IT SERVES AS A FINANCING MECHANISM TO ISSUE DEBT FOR REASONABLY PRICED HOUSING DEVELOPMENTS AND DEVELOPERS. IT IS APPROVING PROJECTS THAT GENERATE INCOME FOR FUTURE AHFC DEVELOPMENTS. AND THAT IS SOMETHING THAT WE'RE FOCUSING MORE AND MORE ON. IT'S RESTRUCTURING FROM PROVIDING GRANTS TO APPROVING LOANS. AGAIN, SOME OF THESE LOANS -- LET ME GIVE YOU AN EXAMPLE. WE DID A RIBBON CUTTING, THAT WAS ISSUED A LOAN IN GAP FANSNCING OF $500,000 THAT WE REPAID AT 5.5 INTEREST RATE. THE LOAN WE DID ON SOUTHWEST TRAILS WAS A-MILLION-DOLLAR LOAN BECAUSE THE HEFL OF INCOME OF FOLKS THEY'RE SERVING ASK A LOWER INCOME LEVEL. AS WE LOOKED AT THE CASH FLOW AND DEMANDS OF THE FINANCING, WE CAN JUSTIFY INVESTING MORE IN SOUTHWEST TRAILS BECAUSE OF THE LOWER INCOME POPULATION THEY WERE SERVING. SO THE CONCEPT HERE IS WE'RE LAIRG THESE SERVICES TO GET -- LAYERING THESE SERVICES TO GET TO THE LOWER INCOME POPULATION. FINALLY WITH THE AHFC IS CREATES PARTNERSHIPS WITH OTHER NONPROFIT HOUSING DEVELOPERS. QUICKLY, THESE PROGRAMS FUNDED THIS WAY, HUD, CITY OF AUSTIN FUNDING COMES TO AHFC, IT'S DIVIDED INTO THESE MAJOR PROGRAMS. CONSUMER LENDING, HOME OWNERSHIP PROGRAMS, SUB RECIPIENT. THOSE ARE URBAN LEAGUE, AIL, UNITED DISABILITIES ASSISTANCE OF CENTRAL TEXAS. ALL OF OUR NONPROFIT HOUSING PROVIDERS THAT WE'RE TALKING ABOUT IN THAT OPERATION. THE BONDING AUTHORITY IS AN IMPORTANT FACT TO RECOGNIZE THAT WHEN WE THROW OUT THESE DOLLAR AMOUNTS OF THE BONDING AUTHORITY THAT IT'S NOT CITY OF AUSTIN MONEY THAT IS BEING ALLOCATED TO THESE PROJECTS. IT'S REALLY FINANCING AUTHORITY AND BONDING AUTHORITY THAT WE HAVE THE ABILITY TO ISSUE BECAUSE WE ARE A STATE CHARTERED ORGANIZATION. SO IT ASSISTS IN THE FINANCING ACQUISITION, CONSTRUCTION, REHABILITATION OF PROJECTS IN THE CITY OF AUSTIN. WE HAVE ISSUED SINCE 1997118 MILLION DOLLARS OF BONDS, MULTI-FAMILY, 95 MILLION DOLLARS OF BONDS FOR 2,444 UNITS SINCE 1997 AND IN SINGLE-FAMILY BONDS, 269 FAMILIES HAVE BEEN SERVED. WE ARE SEBLD ONLY IN THE STATE OF TEXAS FOR THE ISSUE OF BONDS IN THE YEAR 2001. AND ONLY 10% OF THE UNITS MAY SERVE FAMILIES WITH INCOME ABOVE 80% OF THE MEDIAN FAMILY INCOME. THOSE OF THOSE ARE BONDS THAT HAVE NO IMPACT ON THE BOND'S INDEBTEDNESS ON THE CONSTITUENT SENZ OF THE CITY OF AUSTIN. THAT'S AN IMPORTANT CONCEPT. WE'RE TRYING TO FIND WAYS TO COMMUNICATE THE SUCCESS WE HAVE IN OUR DEPARTMENT AND TO TALK ABOUT THE NUMBERS OF THE PEOPLE THAT WE SERVED. SO WE'VE COME UP WITH SOME WAYS THAT YOU CAN ANALYZE THE STATISTICS. WE HAVE TRENDS THAT SHOW THAT FIRST TIME HOME BUYER PROGRAMS PROVIDE ASSISTANCE FOR AT LEAST FOUR INCOME -- LOW TO MODERATE INCOME FAMILIES EACH WEEK FOR THE PURCHASE OF THEIR HOMES. OUR DOWN PAYMENT ASSISTANCE PROGRAM IS PUTTING FOUR FAMILIES A WEEK INTO HOUSING. EVERY SEVEN DAYS A LOW TO MODERATE INCOME FAMILY MOVES INTO A NEW HOME, CONSTRUCTED OR SUBSIDIZED BY THE AUSTIN HOUSING FINANCE CORPORATION. AND MORE THAN A FAMILY A DAY EACH DAY IS MOVING INTO AN AFFORDABLE RENTAL UNIT THAT'S FINANCED BY THE AUSTIN HOUSE. I THINK THOSE ARE POWERFUL STATISTICS TO TALK ABOUT THE SUCCESS THAT WE'RE HAVING. THE KEY DEVELOPMENTS THAT WE'VE BEEN INVOLVED IN, LET ME HIT A COUPLE. OUR SMART HOUSING PROGRAM IS HAVING INCREDIBLE SUCCESS AND BEING AN ENHANCEMENT TO THOSE PROGRAMS AND BEING PROJECTS TO THE TABLE, GETTING PROJECTS THROUGH THE DEVELOPMENT PROCESS AT A TIMELY FASHION. AUSTIN REVITALIZATION AUTHORITY IS HAVING UNPRECEDENTED SUCCESS IN THAT PROJECT FOREVER. WITH WE NOW HAVE OUR DOWNTOWN HOMELESS SHELTER ONLINE. WE'VE INCREASED OUR RENTAL UNITS. WE'RE INCREASED THE FIRST TIME HOME BUYER AND THE BOND OPPORTUNITIES FOR FINANCING HAVE REALLY BEENABLE. IN HIGHT A COUPLE OF OUR MAJOR ACCOMPLISHMENTS, WE HAVE CONTINUED -- THIS IS REALLY KIND OF A SUMMATION OF THE FACT THAT OUR INVESTMENTS ARE ALLOCATING TO THE CONTINUUM. WE HAVE WORKED TO IMPROVE OUR ACCOUNTING SYSTEMS AND CONTINUE TO FINAL THIGHS THOSE PROCESSES. WE'VE REINSTRUCTED THE AUSTIN AUSTIN HOUSING FINANCE CORPORATION TO INCREASE OUR LEVERAGE OPPORTUNITIES. THE DEVELOPMENT OF SMART SHOWSING HAS BEEN A SUCCESS AND IS REALLY STIMULATEDDING THE PRODUCTION OF AFFORDABLE HOUSING. ATORDING TO OUR DEMOGRAFFY, RYAN ROBINSON, SMART HOUSING CONSTRUCTION IS DOMINATING THE MULTI-FAMILY MARKET IN NEW CONSTRUCTION CURRENTLY. YOU HAVE INCREASED THE GENERAL FUND SUPPORT FOR THE HOUSING PROGRAMS IN THIS COMMUNITY. WE HAVE A GREATER PLANNING AND ACCOUNTABLE FOR OUR NON-PROFITS AND GREATER SUPPORT FOR THE NONPROFITS AND WE WORKED TO REALLY GET THE PRODUCTION GOING IN PROGRAMS THAT REALLY PREVIOUSLY STALLED. OUR CHALLENGES, FINALLY, THE LAST CHART, IS TO EXPRESS TO YOU THAT WE DO CONTINUE TO HAVE CURRENT AND FUTURE CHALLENGES IN THIS AREA. WE ARE -- WE ARE CONTINUING TO NEED TO CONTINUE TO SUPPORT OUR NON-PROFITS AND TO BUILD NOR NONPROFIT CAPACITY FOR -- NONPROFIT COMPASS FI FOR THIS COMMUNITY. WE ARE VERY CHALLENGED WHEN IT COMES TO LAND AVAILABILITY AND LAND ACQUISITION. WE NEED TO PROMOTE ALL OF THE INFILL DEVELOPMENTS AND HOUSING DEVELOPMENTS IN A WAY THAT IT PROCEED NOTES EQUAL DEVELOPMENT. WE NEED TO CONTINUE TO ENHANCE AND IMPROVE OUR SMART HOUSING POLICY AND WE'RE STARTING TO HEAR THAT AT THIS POINT IN TIME WHAT WE'RE START TO GO HEAR MORE OF IS THE NEED FOR US TO BE INVOLVED IN JOB CREATION BECAUSE OF THE ECONOMY. WITH THAT I WILL STOP THE PRESENTATION AND SEE IF THERE'S ANY QUESTIONS.

MAYOR GARCIA: QUESTIONS FOR MR. HILGERS? MAYOR PRO TEM?

GOODMAN: ACTUALLY, I QUIT FROM THE PACKET AND WENTF, WHICH ARE REALLY GREAT. -- AND WENT TO THE STAFF, WHICH ARE REALLY WAIT. THE AFFORDABLE HOUSING GOALS, THE SMART HOUSING, CAN WE HAVE A STATUS REPORT ON COMPLETION OF ALL THOSE? THESE ARE THE COMPLETED ONES? OR THIS IS EVERYTHING THAT'S BEEN APPROVED?

YES, MA'AM. I CAN GET YOU THOSE COPIES. I WILL WILL TELL YOU THAT OFF THE TOP OF MY HEAD I KNOW THAT THE FOURTH BRANCH LANDING PROJECT IS COMPLETED, SOUTHWEST TRAILS IS COMPLETED. BUT I'LL GET YOU A MORE COMPLETE LIST OF THAT.

GOODMAN: DO WE HAVE ANY BEYOND THIS THAT ARE SORT OF IN THE BEGINNING STAGES?

IN THE PIPELINE, YES, WE DO. I CAN SHOW YOU THOSE THAT ARE UNDER DESIGN AND READY FOR APPROVAL. I HAVE THOSE ACTUALLY UPSTAIRS. I COULD GO GET THOSE. I'LL HAVE THOSE FOR YOU BEFORE YOU LEAVE IF YOU LIKE.

GOODMAN: THE ONLY OTHER QUESTION I REALLY HAD WAS RELATIVE TO ONE OF THE CHARTS. AND LOOKING FOR NUMBERS LIKE THAT. OVER THE FIVE-YEAR PERIOD THAT WE'RE SORT OF GIVING OURSELVES, DO WE HAVE THOSE KIND OF NUMBERS?

YES, WE DO. AND I CAN SHOW YOU THE SPECIFIC NUMBERS IN MORE DETAIL. I WILL TELL YOU THAT OUR GOAL, I'LL REMIND YOU THAT OUR GOAL IS TO CREATE OR RETAIN 5,000 UNITS ANNUALLY BY THE YEAR 2005. CURRENTLY I WILL TELL YOU THAT THIS YEAR YOU SEE THE LIST UNDER CONSTRUCTION, WE HAVE 1,087 UNITS UNDER CONSTRUCTION AND 53 SINGLE-FAMILY UNITS UNDER CONSTRUCTION. THAT'S NOT INCLUDING THOSE THAT WE'VE COMPLETED THIS YEAR. SO THOSE ARE JUST WHAT HFC IS DOING. THAT DOESN'T INCLUDE WHAT THE URBAN LEAGUE IS DOING AND THE EMERGENCY HOME -- THE EMERGENCY HOME REPAIR PROGRAM IS DOING SO I CAN GET YOU THOSE NUMBERS IN MORE DETAIL.

GOODMAN: OKAY. AND TRANSITIONAL HOUSING, THIS IS MY LAST SORT OF QUESTIONING THOUGHT. WHEN WE DO PROJECTS LIKE SMART HOUSING OR WHATEVER WHEN WE HELP WITH HUD FUNDING OR OUR OWN, IS IT POSSIBLE FOR TRANSITIONAL HOUSING TO HAVE SOME KIND OF PERCENT OR AT LEAST A FEW UNITS OF ANY ONE COMPLEX BE ALLOCATED, SO TO SPEAK, FOR TRANSITIONAL HOUSING? IT'S KIND OF A PROBLEMATIC THING FOR NEIGHBORHOODS BECAUSE IT HAS A DENOTATION WHEN YOU SAY THIS IS TRANSITIONAL HOUSING. SOCO WE SPRINKLE THAT IN A NICE, SAFE, SOLID PLACE BY SPRINKLING IT, SO TO SPEAK, INTO OUR OWN PROJECTS?

WELL, WE CAN SURE LOOK AT THAT OPTION. I THINK THAT ONE OF THE THINGS THAT WE LOOKED AT IT -- I THINK IT IS IMPORTANT TO RECOGNIZE WHAT YOU HAVE DONE. I THINK THERE ARE AREAS WHERE YOU HAVE HAD SUCCESS IN THIS. THERE ARE TARGETED PROGRAMS. I WILL TELL YOU YOU HAVE GREAT TRANSITIONAL HOUSING AT SAFE PLACE. YOU WORKED ON THAT. ISAT PROJECT REALLY DOES HAVE A LOT OF GOOD TRANSITIONAL HOUSING. AND THAT FACILITY THERE GOES FROM A HOMELESS SHELTER TO TRANSITIONAL HOUSING AND THEN THEY'RE ALSO LOOKING TO BUILD ANOTHER MULTI-FAMILY PROJECT JUST NEXT DOOR TO THAT IF WEEY CAN GET FUNDED FOR THAT. TRANSITIONAL HOUSING IS STILL ONE OF THE KEY AREAS WHERE WE NEED GOOD QUALITY TRANSITIONAL HOUSING '. THE PUSH UP FOUNDATION TRIES TO PROVIDE TRANSITIONAL HOUSING. AND ONE OF THE AREAS THAT WE TRIED TO LOOK AT LAST YEAR WAS LIFE WORKS, WHETHER OR NOT WE Y COULD INTEGRATE SOME TRANSITIONAL HOUSING. SO WE CONTINUE TO LOOK AT THAT OPTION. WHERE WE'RE FUNDING THE OPTIONS OBVIOUSLY WE HAVE MORE CONTROL AND ABILITY TO TRY TO ENCOURAGE THAT. SO WE WOULD SURE CERTAINLY TAKE THAT POLICY DIRECTION. [ONE MOMENT, PLEASE, WHILE CAPTIONERS...]

YOU WILL SEE A BEAUTIFUL POND WITH A BEAUTIFUL APARTMENT COMPLEX, THAT'S FORT BRANCH LANDING, THAT WAS A RIBBON CUTTING DONE LAST WEEK, THAT'S A GREAT MULTI-FAMILY PROPERTY. IF YOU LOOK AT THE -- THE FACILITY OUT ON 71, ANOTHER ONE OF OUR -- TWO OF OUR SMART HOUSING PROJECTS RECEIVED THE AUSTIN BUSINESS JOURNAL AWARD FOR MULTI-FAMILY REAL ESTATE COMMERCIAL PROPERTIES OF THE YEAR. ONE WAS SOUTHWEST TRAILS. AND THAT PROPERTY IS JUST NORTH OF 71, JUST PAST THE Y, AND THAT'S 166 UNIT FACILITY THAT PEOPLE DRIVE INTO ALL OF THE TIME AND CAN'T BELIEVE IT'S "AFFORDABLE HOUSING." IF YOU LOOK AT THE SINGLE FAMILY HOUSES, YOU GO TO THE SAINT JOHN'S AREA AND SEE A LOT OF THE SINGLE FAMILY UNITS THAT ARE THERE THAT HAVE BEEN CONSTRUCTED. IF YOU LOOK AT ONE OF OUR MOST SUCCESSFUL SMART HOUSING PROJECTS, RIVERSIDE MEADOWS, THE CONSTRUCTION THERE IS GOING UP AND IS JUST REALLY -- REALLY AGAIN THAT PROJECT, THE REASON THAT'S SO SUCCESSFUL IS THAT THAT PROJECT RECEIVED -- IT TOOK 29 DAYS TO GET THE SITE PLAN TURNED INTO A BUILDING PERMIT. IF IT WASN'T FOR SMART HOUSING, AND THE COOPERATION OF THE DEVELOPMENT REVIEW AND INSPECTION TEAM, WE WOULD HAVE LOST THOSE TAX CREDITS AND THOSE UNITS WOULDN'T HAVE BEEN BUILT. WE ARE BUILDING -- ALSO, A MULTI-FAMILY SITE FOR ELDERLY HOUSING, JUST NORTH OF EMBASSY SUITES ON CLAYTON LANE. AS YOU WILL SEE, THAT CLUBHOUSE IS BEING FINALIZED RIGHT NOW. AND THAT PROPERTY IS BEING DONE BY SOUTHWEST HOUSING OUT OF DALLAS. WHICH IS ANOTHER PROPERTY THAT -- THAT YOU ARE GOING TO SEE AND WE WILL BE DOING A RIBBON CUTTING. COUNCILMEMBER THOMAS WAS THERE WHEN WE BROKE THE GROUND FOR THAT PROJECT. THE -- THE GUADALUPE NEIGHBORHOOD DEVELOPMENT CORPORATION IS DOING INFILL HOUSES, THE AMERICAN YOUTH WORKS OVER -- GUADALUPE, OF COURSE, IS IN THEIR NEIGHBORHOOD, YOU CAN LOOK THERE. ALSO AMERICAN YOUTH WORKS WITH HABITAT AS WELL AS IN THOSE PROPERTIES. AS YOU DRIVE AROUND THOSE NEIGHBORHOODS, YOU WILL SEE THE NEIGHBORHOODS OF THE INVESTMENTS THAT WE ARE MAKING.

SLUSHER: OKAY, THANK YOU, MR. HILGERS, THAT'S ALL THAT I HAVE, MAYOR.

MAYOR GARCIA: QUESTIONS?

THOMAS: THANK YOU. I WANT TO THANK MR. HILGERS AND HIS STAFF ON EXCELLENT WORK, EXCELLENT JOB AND THE PRESENTATION. I JUST HAVE A COUPLE OF QUESTIONS ON THE 108 LOAN.

YES, SIR.

THOMAS: YOU SAID ELIGIBLE ACTIVITY ON H.U.D. SECTION 108 LOANS ON THE -- ON THE PRESENTATION. ARE THESE THE AREAS THAT -- THAT ARE ELIGIBLE FOR THE 108 LOANS.

YES, SIR, THAT'S CORRECT. THOSE ARE THE ONES THAT -- THAT ARE LISTED IN THE -- IN THE GUIDANCES FOR THAT -- FOR THAT PROGRAM.

THOMAS: OKAY.

YOU CAN SEE THERE, AGAIN, THAT -- THAT PROJECT IS REALLY WHAT IS THE KEY CORNERSTONE OF FINANCING THE 11TH AND 12TH STREET REVITALIZATION EFFORT.

ALSO, WHAT I NEED FROM YOU, LAST YEAR'S 108 LOANS, I JUST NEED TO -- A LIST OF WHICH ONES THAT WERE -- LAST YEAR'S 108 LOANS.

OKAY. I CAN DO THAT REAL QUICKLY FOR YOU. THE -- THE ONES THAT WE -- THAT WERE APPROVED LAST YEAR, THE ONES THAT ARE FUNCTIONAL OR AT LEAST OPERATIONAL ARE THE MILLENNIUM YOUTH ENTERTAINMENT CENTER AND 11TH AND 12TH STREET. THOSE ARE THE ONLY TWO 108 LOANS THAT WE HAD APPROVED LAST YEAR.

OKAY. ALSO, THE -- THE CDBG MONEY.

YES, SIR.

THOMAS: . I JUST NEED A LIST OF -- OF THE MONEY THAT WAS DISBURSED OUT OF THAT. LAST YEAR.

ABSOLUTELY. BE GLAD TO GIVE THAT TO YOU.

THOMAS: APPRECIATE YOUR PRESENTATION.

THANK YOU SO MUCH.

MAYOR GARCIA: FURTHER QUESTIONS? COUNCILMEMBER ALVAREZ?

ALVAREZ: YES. MR. HILGERS, THANK YOU FOR THAT PRESENTATION. IT IS VERY IMPRESSIVE TO SEE ALL OF THESE THINGS COMING TO PASS FINALLY, ALL OF THE HARD WORK PAYING OFF. I HAD A COUPLE OF QUESTIONS MUCH ONE WAS ON SMART HOUSING IN GENERAL. AND I GUESS BECAUSE THAT'S NOT REALLY NECESSARILY A CDBG FUNDED FUNCTION --

THAT'S CORRECT.

ALVAREZ: OR IS IT -- THE ADMINISTRATION, I ASSUME THAT'S WHERE THE COST COMES IN FOR THAT PARTICULAR PROGRAM.

YES, SIR. THAT --

ALVAREZ: I JUST WANTED TO GET AN IDEA OF HOW MUCH IT COSTS US TO PULL THAT OFF.

ABSOLUTELY. IT'S -- IT'S A GOOD -- GREAT QUESTION. AND ALL OF THE COSTS OF SMART HOUSING NEED TO BE LOOKED AT FROM REGARDS TO A PROGRAM ADMINISTRATION, FOR EXAMPLE, WE HAVE TWO POSITIONS IN OUR OFFICE THAT ARE FUNDED. ONE PART-TIME, REALLY HE WORKS FULL-TIME BUT HE GETS PAID PART-TIME AND ONE FULL-TIME POSITION. TO ACTUALLY ADMINISTER THAT. THOSE DOLLARS COME FROM GENERAL FUND OR FROM THE HOUSING ASSISTANCE FUND OF THE AUSTIN HOUSING FINANCE CORPORATION, SO THEY ARE NOT FEDERALLY FUNDED. WE ALSO ARE RECEIVING A GRANT, WE ARE IN THE PROCESS WE THINK OF RECEIVING $100,000 GRANT TO EXPAND THE SMART HOUSING PROGRAM AROUND THE COUNTRY AND TO -- AND TO EXPLORE IT AS A MODEL FOR OTHER CITIES. BUT THE SMART HOUSING PROGRAM IS OUR WAY OF GETTING INVOLVED IN THE DEVELOPMENT AND REVIEW AND INSPECTION PROCESS OF THE CITY. AND SO IT'S AN ENHANCEMENT TO THOSE PROGRAMS. IT ISN'T A DIRECT ALLOCATION. ONE OF THE OTHER AREAS, THOUGH, THAT IS REALLY CRUCIAL THAT HAS TO BE LOOKED AT AND THE COST, I OF COURSE THINK IT NEEDS TO BE LOOKED AT AS AN INVESTMENT IS THE FEE WAIVERS, EXACTLY WHAT'S GOING TO HAPPEN WITH THE DOLLARS THAT WE ARE ACTUALLY WAIVING. BECAUSE I THINK THAT, YOU KNOW, LOOK AT $1500, 12 TO $1500 A SINGLE FAMILY UNIT, THAT'S -- THAT'S REVENUE THAT THIS CITY IS FORGOING AS WELL AS THE DEVELOPER IS FORGOING REVENUE BY MAKING THE PROPERTY MORE AFFORDABLE. SO THAT'S HOW JOINT VENTURE PARTNERSHIP USING OUR WATER AND WASTEWATER UTILITIES' FUNDS TO ACTUALLY STIMULATE THAT KIND OF -- THAT KIND OF INVESTMENT. THE OTHER THING THAT'S IMPORTANT IS LOOKING AT THE COST OF THE DEVELOPMENT AND REVIEW INSPECTION STAFF THAT HAS TO SPEND SPECIAL TIME ACTUALLY PROVIDING SPECIAL SMART HOUSING REVIEWS THROUGH THESE PROJECTS. SO ALL OF THOSE COST ARE THINGS THAT WE ARE CONTINUALLY TRYING TO ADD TO LOOK AND SEE EXACTLY WHAT THE BOTTOM LINE COSTS AND BENEFITS OF THE SMART HOUSING PROGRAM ARE.

ALVAREZ: SURE. THE OTHER THING, AS YOU MENTIONED, THIS YEAR'S -- I GUESS THAT WE PURCHASED COLONY PARK AND THAT WAS -- SOME DISCUSSIONS THAT WE HAD ABOUT A YEAR AGO IN TERMS OF WHETHER WE SHOULD SELL BONDS OR AFFORDABLE HOUSING, WHETHER THAT WAS THE BEST APPROACH OR WHETHER WE COULD ALLOCATE ADDITIONAL FUNDING EVERY YEAR FROM THE GENERAL FUND TO -- TO INCREASE, YOU KNOW, OUR -- THE INVESTMENT AND -- IN AFFORDABLE HOUSING. SO THIS YEAR, I GUESS THE FRUITION OF THAT WAS THAT WE WERE ABLE TO ACQUIRE PRETTY BIG AMOUNT OF LAND, PRETTY LARGE AMOUNT OF LAND TO BUILD A -- TO BUILD A SIGNIFICANT NUMBER OF UNITS. AND I DON'T KNOW IF -- IF YOU CAN AT LEAST OUTLINE IN TERMS OF THE COLONY PARK PART OF THAT --

YOU BET, ABSOLUTELY. I'M GLAD THAT YOU BROUGHT IT UP. BASICALLY, YOU ARE RIGHT. WE WERE ABLE TO ACQUIRE ABOUT 200 ACRES OF LAND. IT WAS IMPORTANT TO DO THAT IN THIS CASE SO THAT WE WOULDN'T HAVE A LOT OF SMALL, REALLY MANUFACTURED HOUSING STUCK TOGETHER IN THAT 200 ACRE PROPERTY, WHICH IS WHAT WAS GOING TO HAPPEN WITH THAT PROPERTY. THAT COMMUNITY HAS SAID TO US, AND -- THAT THEY REALLY WANT TO SEE SOME POLICE PRESENCE INCREASED THERE, A PARK PRESENCE INCREASED THERE BEFORE THEY SEE HOUSING. AND SO WE ARE WORKING TOWARDS GETTING AN R.F.P. DEVELOPED FOR A MASTER DEVELOPER AND THAT -- AND -- IN THAT 200 ACRE TRACT OF LAND TO BE ABLE TO OVERSEE A MIXED USE, MIXED INCOME, MIXED TYPE OF DEVELOPMENT, MIXED USE TYPE OF DEVELOPMENT. IT'S RARE WHEN WE GET INVOLVED TO REALLY KIND OF AFFECT THE MARKET ON THAT 200 ACRES OF LAND, BUT THAT'S REALLY WHAT WE HAVE DONE IN A FAIRLY BOLD STRATEGIC PLAN STEP WITH COLONY PARK. SO WE ARE EXCITED ABOUT THOSE PROSPECTS. YOU WILL BE SEEING MORE ABOUT THAT R.F.P. OUR OBJECTIVE IS TO HAVE THAT R.F.P. OUT ON THE STREETS ON MAY THE 17TH, 80'S PRETTY AGGRESSIVE TIME FRAME, WE -- IT'S A PRETTY AGGRESSIVE TIME FRAME, WE HOPE TO BE SHOWING YOU THAT R.F.P. SOON.

ALVAREZ: WHAT IS OUR TARGET THAT WE ARE GOING TO HAVE 100% AFFORDABLE? BECAUSE WE ARE TALKING ABOUT A $3 MILLION INVESTMENT.

HERE'S --

IN THE CITY, SO ARE WE GOING TO TRY TO RECOUP THAT IN TERMS OF SELLING THE LAND OR -- OR IS THE IDEA TO -- TO USE THAT SORT OF AS A WAY OF ENSURING THAT WE CAN -- THAT THOSE UNITS ARE GOING TO BE AFFORDABLE OR A GOOD AMOUNT OF THOSE UNITS WILL BE AFFORDABLE?

I THINK THAT WE HAVE, IN THE SMART HOUSING PROGRAM, WHAT WE SAY IS OUR GOAL IS OUR HOUSING POLICY, WHICH IS WE WANT A MINIMUM, AT LEAST FROM OUR PERSPECTIVE, OF 40% AFFORDABILITY. AT LEAST IN THAT PROJECT. NOW, THE REALITY IS WE BELIEVE THAT IN COLONY PARK, I ESTIMATE THERE WILL BE MORE THAN 40% THAT WILL BE DEEMED AFFORDABLE. WE ALSO ARE TRYING TO BRING MIXED INCOME, HIGHER INCOME, MODERATE INCOME PROPERTIES TO THAT AREA AS WELL. SO THAT WE HAVE A DIVERSITY IN THAT NEIGHBORHOOD. SO WE THINK THAT'S IMPORTANT. FRS WHAT YOU SEE -- WHAT YOU SEE, I THINK IN THE COLONY PARK AREA, ONE OF THE OTHER THINGS THAT'S FRUSTRATEDING TO ALL OF US, IS THE LENGTH OF TIME IT TAKES TO DEVELOP THESE PROJECTS. THESE ARE NOT SHORT-TERM PROJECTS AND THEY TAKE A LOT OF TIME. BUT -- BUT THAT'S JUST A REALITY OF DOING IT RIGHT. SO I THINK WHAT YOU WILL SEE IS A MIXTURE OF MULTI-FAMILY THAT WILL BE VERY AFFORDABLE, MULTI-FAMILY THAT WILL BE MORE MODERATE INCOME, MULTI-FAMILY THAT MAY EVEN BE MARKET RATE ALL MIXED IN THAT AREA. A LOT OF SMAEM UNITS THAT WILL -- SINGLE FAMILY UNITS THAT WILL BE ABSOLUTELY THE SAME WAY, MARKET RATE ALL THE WAY DOWN TO VERY AFFORDABLE, WITH NON-PROFITS ACTUALLY HAVING OPPORTUNITIES TO PARTICIPATE IN THE CONSTRUCTION OF THE POT SO FOLKS WITH VERY LOW INCOME FAMILIES CAN GET INTO THE PROPERTIES. WE ARE VERY BLESSED RIGHT NOW WITH LOW INTEREST RATES. WE WERE ABLE TO GET A HOUSE AT 47% OF MEDIAN -- I MEAN A FAMILY AT 47% OF MEDIAN FAMILY INCOME INTO A FIRST TIME HOME IN SAINT JOHNS. THEY HAD GREAT CREDIT WE WERE ABLE TO DO THAT THROUGH OUR HOUSING ASSISTANCE PROGRAMS, DOWN PAYMENT ASSISTANCE PROGRAMS. WE WILL LOOK TO DO THE SAME THING. IT'S IMPORTANT TO HAVE A MIXED USE AS WELL. THE -- THE 70 ACRE PARK IS CRUCIAL TO THAT SUCCESS. A POLICE PRESENCE, WHICH WILL -- WE WILL BE CARVING OUT AN AREA FOR THE POLICE DEPARTMENT TO BE LOOKING AT A LAW ENFORCEMENT ACADEMY THAT WOULD INCLUDE BOTH POLICE, FIRE AND E.M.S. AND HAVING THAT IN THAT NEIGHBORHOOD, WE ARE ALSO TALKING TO THE SCHOOL DISTRICT TO MAKE SURE THAT WE ARE -- THAT WE ARE PLANNING FOR THE INCREASE IN NUMBER OF STUDENTS. BARBARA JORDAN ELEMENTARY SCHOOL IS ALREADY AT 137% OF -- OF CAPACITY. THEY ARE TAKING KIDS TO WYNN ELEMENTARY SCHOOL RIGHT NOW, AS I UNDERSTAND IT, TO DEAL WITH THAT OVERCROWDING. WE WANT TO COOPERATE WITH THEM AND SEE IF WE CAN HELP FIND AN OPPORTUNITY TO DO SOME -- SOME WORK WITH THEM TO ADDRESS THOSE ISSUES AS WELL.

ALVAREZ: THANK YOU.

ONE OF THE OTHER THINGS THAT WE THINK IS IMPORTANT ABOUT THE DIRECTION THAT THE COUNCIL HAS GIVEN US IN THE PAST WITH REGARDS TO THE HOUSING -- HOUSING AND DEVELOPMENT DEPARTMENT IS THE GOAL OF SELF SUFFICIENCY. A LOT OF TIMES WE GET QUESTIONS ABOUT -- ABOUT WELL, WHY ARE WE PUTTING MONEY INTO SMART HOUSING, WHY ARE WE DOING THESE OTHER PROGRAMS AND NOT JUST DEALING WITH THE FOLKS THAT ARE, YOU KNOW, PRIMARILY BELOW 50%. BUT WHAT'S LOST SOMETIMES IN THOSE DISCUSSIONS IS THE SECTION 8 HOUSING THAT'S OUT THERE, THE -- THE AUSTIN HOUSING AUTHORITY. THERE ARE OTHER ENTITIES OUT THERE THAT PROVIDE THAT. SO -- SO THE DIRECTION THAT YOU HAVE GIVEN IN THE PAST IS WHAT ARE WE GOING TO DO TO HELP SOME OF THOSE FOLKS WORK TOWARDS SELF SUFFICIENCY, SO THAT'S BEEN A LOT OF OUR GOAL.

NO, I AGREE THAT THAT'S -- I THINK THAT LADDER THAT YOU PROVIDED THAT SHOWS SORT OF THE PATH, YOU KNOW, TO GET THERE IS -- IS A GOOD ILLUSTRATION. BUT I THINK WHAT THIS -- I'M GETTING MORE AT THE -- I GUESS THE POLICY QUESTION OF, YOU KNOW, IF WE ARE GOING TO INVEST, YOU KNOW, A LARGE AM OF MONEY IN A -- A LARGE AMOUNT OF MONEY IN A HOUSING DEVELOPMENT PROJECT, THEN -- YOU KNOW, AGAIN, WHAT ARE OUR GOALS IN TERMS OF THE PERCENTAGE OF UNITS THAT ARE GOING TO BE AFFORDABLE, BECAUSE, YOU KNOW, WE MAY SAY, WELL, WE WILL PUT UP THE COST OF THE LAND --

ABSOLUTELY.

ALVAREZ: -- THEN WHEN THESE PROPOSALS COME BACK THERE MAY BE PROPOSALS THAT WE ARE GOING TO PROVIDE INFRASTRUCTURE AND ALL OTHER SORTS OF WAYS TO FACILITATE THE DEVELOPMENT. IN THE END WE WANT TO LOOK AT HOW MUCH ARE WE REINVESTING PER UNIT. INSTEAD OF DOING IT THAT WAY, COULDN'T WE DO IT ACTUALLY SOME OTHER WAY, GET A BIGGER, MORE BANG FOR OUR BUCK SO TO SPEAK. THAT'S WHY I ASK. I THINK SPECIALLY WITH SUCH A LARGE AREA, COLONY PARK, A COUPLE OF HUNDRED ACRES, IF WE ARE GOING TO CARVE OUT SOME SPACE FOR THE PARK AND -- BUT THE -- BASICALLY THEN LOOK AT, IF THERE'S GOING TO BE A LOT OF INFRASTRUCTURE THAT NEEDS TO COME IN AND JUST STARTING TO LOOK AT, OKAY, HOW IS THAT GOING TO BREAK DOWN IN TERMS OF -- OF PER UNIT INVESTMENT THAT WE ARE MAKING AND THEN IF WE WANT TO REACH A GOAL, WHICH I DON'T KNOW IF WE HAVE SET A GOAL OF 50, 60, 70% AFFORDABLE AND THEN WE HAVE TO DEFINE WHAT WE MEAN BY AFFORDABLE, IS IT 08% OR NEED -- 80%, MEDIAN FAMILY INCOME, 06%, 50% -- 60%, 50%, I THINK THOSE ARE IMPORTANT THINGS TO KEEP IN MIND AS WE MOVE FORWARD SO WE DON'T GET LOCKED INTO -- YOU KNOW, IN TERMS OF A CONTRACT THAT IT'S NOT GOING TO YIELD AS MUCH IN TERMS OF THE AFFORDABLE HOUSING AS WE WOULD LIKE. I DON'T KNOW, AGAIN, IF THOSE -- IF YOU NEED TO HAVE THEM BEFORE THE R.F.P. GOES OUT OR IF THE R.F.P. IS OPEN ENDED ENOUGH WHERE WE CAN SOME -- WHERE WE CAN HAVE SOME OF THOSE DISCUSSIONS ON GOING FORWARD.

AT THIS POINT IT'S OPEN ENDED ENOUGH TO CONTINUE TO HAVE THOSE DISCUSSIONS, ABSOLUTELY.

SURE. THE OTHER ISSUE KIND OF RELATES TO THIS IN TERMS OF, WHEN WE -- WHEN COUNCIL HAD CONSIDERED ISSUING SOME BONDS TO FACILITATE THE DEVELOPMENT OF AFFORDABLE HOUSING, I GUESS IT WAS -- WHAT ENDED UP HAPPENING INSTEAD OF MOVING FORWARD WITH THE -- OR ASKING VOTERS TO APPROVE BOND SALE FOR THIS PURPOSE, WAS THAT WE WOULD -- WE WOULD INVEST FROM THE GENERAL FUND AN EXTRA $3 MILLION A YEAR TO GO TOWARDS THE AFFORDABLE HOUSING DEVELOPMENT AND -- AND SO WE WERE ABLE TO DO THAT THIS YEAR, YOU KNOW, FOR THE COLONY PARK PROJECT. BUT GIVEN OUR BUDGET WOES, I MEAN, IS THERE ANY -- I DON'T KNOW IF THIS IS A QUESTION FOR YOU OR TOBY OR BOTH, BUT, YOU KNOW, IN TERMS OF THE -- HOW REALISTIC THE OVER THE NEXT FOUR YEARS FOR US TO BE ABLE TO DO THAT $3 MILLION INVESTMENT AND WHETHER IT'S -- WHETHER IT'S MAYBE A GOOD TIME FOR US TO START THINKING ABOUT THE BONDS AS AN OPTION, SO THAT -- SO THAT SPECIALLY GOING INTO THESE BUDGET DISCUSSIONS, YOU KNOW, WE CANNOT HAVE TO CARVE OUT THE $3 MILLION AND KNOW THAT THERE'S GOING TO BE ANOTHER SOURCE OF FUNDS TO -- TO ACHIEVE THE GOAL THAT THE COUNCIL, YOU KNOW, WAS TRYING TO ACHIEVE.

FUTRELL: YOU ARE ABSOLUTELY RIGHT. KNOWING WHAT WE KNOW NOW ABOUT THE BUDGET IT IS GOING TO BE VERY DIFFICULT. SO WE ARE GOING TO BE FRAMING FOR YOU, BRINGING FORWARD WHAT THOSE OPTIONS ARE AND HOW WE CAN TRY TO ADDRESS THAT KNOWING THAT IS GOING TO BE VERY DIFFICULT IN THE NEXT COUPLE OF BUDGET YEARS.

IF I COULD JUST ADD ONE MORE THING THAT'S NOT RELATED TO THAT DIRECTLY, BUT IT IS IMPORTANT, I MEANT TO PUT IT INTO THE PRESENTATION. I THINK THE OTHER THING THAT YOU ARE SEEING THAT'S DIFFERENT AND -- THIS IS SOMETHING THE MAYOR PRO TEM IS CONSTANTLY CHALLENGE -- HAS CONSTANTLY CHALLENGED ME TO DO, WHICH IS TO MAKE SURE THAT WE ARE PARTNERING WITH LENDING INSTITUTIONS, THE IDEA OF THE HUFFMAN AGREEMENT WHERE WE HAVE A MILLION DOLLARS THAT WE ARE GUARANTEEING AT WELLS FARGO TO GET 56 HOMES THAT ARE GOING TO MEET OUR AFFORDABILITY STANDARDS OF AT LEAST 40% OUT THERE AS WELL, IS THE KIND OF THINGS THAT -- THING THAT MAY NOT HAVE BEEN AVAILABLE TO US PREVIOUSLY THAT WE WANT TO CONTINUE TO EXPAND THOSE KINDS OF PARTNERSHIPS. IT DOESN'T CHANGE ANYTHING ABOUT WHAT YOU -- WHAT YOU SUGGESTED. BUT IT IS SOMETHING THAT WE -- PROVIDES US ANOTHER AVENUE TO KEEP OUR FEDERAL DOLLARS ABLE TO FOCUSED ON THE LOWER INCOME FAMILIES AND THEN USE THE MARKET TO -- TO ADDRESS THE OTHER -- THE OTHER CHALLENGES THAT WE HAVE.

PART OF THOSE OPTIONS, COUNCILMEMBER, REALLY TIES TO A THEME, I'VE HEARD THE MAYOR USE IN DESCRIBING OUR UPCOMING BUDGET, WHICH IS LEVERAGING LIMITED RESOURCES. SO WE ARE GOING TO BE LOOKING FOR ALL OF THOSE LEVERAGE OPPORTUNITIES AS A WAY TO TRY TO HELP REPLACE ANYTHING THAT WE HAVE TROUBLE WITH IN OUR INVESTMENT.

ALVAREZ: SINCE WE ARE HAVING A BROAD DISCUSSION OF HOUSING, I JUST WANTED TO LAY OUT A COUPLE OF POLICY ISSUES I THINK THAT -- THAT -- I MEAN IT'S WORTH US LOOKING INTO, TO MONEY AS WELL AS SOME SIGNIFICANT INVESTMENTS THAT WE WILL BE MAKING AND HAVE MADE.

ABSOLUTELY.

ALVAREZ: THANK YOU.

THANK YOU, SIR.

SLUSHER: MAYOR?

MAYOR GARCIA: COUNCILMEMBER SLUSHER.

SLUSHER: I JUST WANTED TO BRING UP A THEME THAT I STRUCK LAST WEEK WHICH IS THAT WE WOULD HAVE MORE MONEY FOR AFFORDABLE HOUSING AND OTHER CITY SERVICES IF WE WOULD TURN THE THERMOSTAT UP. [ LAUGHTER ]. IN HERE. AND YOU HAVE -- SINCE I SAID THAT, YOU HAVE BEEN TALKING ABOUT WELL I WANT TO TURN IT UP TO 78. I AM WILLING TO SETTLE FOR OVER 70. [ LAUGHTER ].

MAYOR GARCIA: OKAY. THE MESSAGE HAS BEEN SENT OUT LOUD AND CLEAR.

FUTRELL: IN FACT TWICE NOW. SO, YES.

MAYOR GARCIA: AGAIN, LIKE ALL OF THE OTHER COUNCILMEMBERS, I WANT TO THANK ALL OF YOU FOR -- FOR THIS VERY COMPREHENSIVE LOOK AT WHAT WE ARE DOING IN THIS CRITICALLY IMPORTANT ISSUE. LIKE I MENTIONED TO YOU THIS MORNING, WHEN WE MET, AND -- AND GOING BACK TO SOME OF THE QUESTIONS THAT WERE ASKED BY COUNCILMEMBER, PARTICULARLY THE LAST ONES BY COUNCILMEMBER ALVAREZ, INTERPRETIVE DATA, IN OTHER WORDS WHAT DOES THIS MEAN IN THE CONTEXT OF WHAT WE ARE TRYING TO ADDRESS I THINK IT'S ENORMOUSLY IMPORTANT. ONE OF THE THINGS THAT I WAS MENTIONING TO YOU IS THAT WORKING TOGETHER WITH THE PEOPLE AT THE COMMUNITY ACTION NETWORK TO SEE IF THE GOALS THAT WE HAVE OVER THERE ARE CONSISTENT WITH THE THINGS THAT WE DO OVER HERE. BECAUSE ONE OF THE THINGS THAT WE HAVE TALKED ABOUT AT THE COMMUNITY ACTION NETWORKS THROUGH THE YEARS IS MOVING PEOPLE TO -- TO BEING SELF SUSTAINING, YOU KNOW. AND THIS OWNING A HOME OR GETTING A GOOD PLACE TO LIVE IS VERY IMPORTANT IN THAT PROCESS. SO -- SO TO THE EXTENT THAT YOU AND MR. WILLIAMS AND MR. BUTLER CAN WORK ON THOSE THINGS, AND, YOU KNOW, THE MAYOR PRO TEM, YOU KNOW, IS ROLLING HER EYES SAYING WE HAVE BEEN WORKING ON THAT, RIGHT? [ LAUGHTER ]. IT'S -- -- THE IDEA FUNDAMENTALLY HERE IS TO TRANSITION FROM AN UNFORTUNATE SITUATION INTO ONE THAT -- THAT GIVES THEM A BETTER -- A BETTER SITUATION IN LIFE. SO -- SO THANK YOU VERY MUCH.

THANK YOU SO MUCH, WE APPRECIATE THE SUPPORT VERY MUCH.

GOODMAN: MAYOR, CAN I ADD ONE MORE THING?

THOMAS: GO AHEAD.

GOODMAN: IN CAMPAIGN TIME YOU GET INTO THE ATTITUDE OF NEGLECT ACTIVITY, BECAUSE -- NEGATIVITY, THAT'S A LOT OF WHAT YOU GET AND YOU SPIT IT BACK AT THOSE AROUND YOU. BUT I DID WANT TO SAY THERE'S A LOT POSITIVE THAT'S BEEN HAPPENING FOR YEARS. AS THE YEARS PILE ON TO EACH OTHER AND CONSUME ACTIVELY THE -- CUMULATIVELY THE EFFECTS ARE ABLE TO BE NOTED THEN I THINK FOLKS WILL BE LESS CRITICAL. I ABOUT WANT TO ALSO BE SURE AND BE POSITIVE TO EVERYBODY BECAUSE A LOT OF THINGS HAVE CHANGED AND GOTTEN BETTER. MANY, MANY THINGS HAVE -- HAVE BEEN MAPPED OUT AS GOALS AND IMPLEMENTED OR ARE IN PROGRESS. IT IS A HUGE CHANGE FROM THE OLD DAYS. SO I WANTED TO THANK STAFF FOR ALL THAT THEY HAVE DONE, SOME FOR WHAT THEY ARE ABOUT TO DO.

THOMAS: MAYOR, IF I COULD JUST SAY A COUPLE MORE THINGS.

MAYOR GARCIA: SURE, COUNCILMEMBER ALVAREZ.

THOMAS: WHAT COUNCILMEMBER ALVAREZ WAS SAYING ON THE 3 MILLION -- THIS IS TO THE CITY MANAGER. I KNOW WE ARE GOING TO LOOK AT FIGURING OUT HOW WE ARE GOING TO MAKE THOSE SHORTCOMINGS, HOW IS IT GOING TO AFFECT THE PROCESS OF WHAT WE ARE ALREADY IN WITH THE -- AS FAR AS GETTING -- SPECIALLY THE RECREATION CENTER AND ALL OF THAT. I KNOW WE TALKED ABOUT THAT THE OTHER DAY, YOU WERE GOING TO --

WE ARE -- WE ARE ACTUALLY GOING TO BRING YOU TWO THINGS. WE ARE GOING TO FRAME THE POLICY QUESTION FOR YOU ON THE CONTINUED INVESTMENT FROM THE GENERAL FUND. INTO HOUSING AND -- AND WHAT IS THE LEVEL WE THINK WE CAN SUSTAIN AND HOW CAN WE DO IT. BUT WE ARE GOING TO BRING YOU COMPLETELY SEPARATE FROM THAT, WHAT IS OUR PLAN FOR THE REVENUE SHORTFALLS ON COLONY PARK. PART OF THAT WILL ALSO COME FROM THE MASTER DEVELOPER PROPOSAL. BECAUSE THAT'S WHERE WE ARE GOING TO KNOW WHAT LEVEL OF PRIVATE INVESTMENT AND PROFIT WILL BE ABLE TO COME OFF OF IT IN ORDER TO HELP US ACHIEVE THE GOALS. WE ARE GOING TO LOOK, I KNOW THAT YOU HAVE A PARTICULAR CONCERN ABOUT THE SHORTFALL IN THE REC CENTER FUNDING AND WE ARE WORKING ON THAT RIGHT NOW.

THOMAS: YES.

FUTRELL: ALSO, SUE EDWARD'S SHOP, REDEVELOPMENT SERVICES IS GOING TO BE WORKING WITH PAUL'S SHOP AS WE APPROACH THE OVERALL DEVELOPMENT, FUNDING, COST BENEFIT ANALYSIS. I THINK THAT COUNCILMEMBER ALVAREZ TALKED ABOUT. SO YOU KNOW WHAT EACH PROPOSAL GIVES YA IN TERMS OF BANG FOR THE BUCK. HOW YOU CAN USE YOUR DOLLARS. SO THAT SHOULD ALSO HELP US WITH THE ANALYSIS.

THOMAS: ALSO, THERE'S SOME OTHER PROJECTS THAT MR. HILGERS FROM MY GUESS -- I KNOW THAT HE DIDN'T FORGET BUT THE SCIP II PROJECT. THREE HOUSES THAT ARE COMPLETED, THAT'S SOMETHING THAT SOMEONE ELSE CAN LOOK AT BECAUSE --

YES, SIR, THANK YOU, I'M SORRY.

THOSE ARE EXCELLENT PROJECTS THAT HAVE BEEN COMPLETED AND LOOKING FORWARD TO THE OTHER PROJECTS TO CONTINUE WITH.

YES, SIR, I APPRECIATE THAT VERY MUCH.

MAYOR GARCIA: THANK YOU VERY MUCH.

THANK YOU. COUNCIL, THERE BEING NO FURTHER BUSINESS TO COME BEFORE THIS WORK SESSION, I WILL ENTERTAIN A MOTION TO ADJOURN.

SO MOVE.

MAYOR GARCIA: MOTION BY COUNCILMEMBER GRIFFITH, SECONDED BY THE MAYOR PRO TEM, ALL IN FAVOR, SIGNIFY BY SAYING AYE.?

AYE.

OPPOSED, NO. MOTION CARRIES ON A VOTE OF 5-0-2 WITH COUNCILMEMBER WYNN AND SLUSHER TEMPORARILY OUT OF THE ROOM.

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