Closed Caption Log, Council Worksession
Wednesday, July 17, 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: JULY 17TH, 2002. WE'RE AT ONE TEXAS CENTER, 505 BARTON SPRINGS ROAD, AND WE ARE HERE FOR -- TO DO THE WORK SESSION. AND WE HAVE AN AGENDA THAT HAS FOUR ITEMS. AND THE CITY MANAGER IS NOT HERE, SO I DON'T KNOW WHO -- ANYBODY HERE GOING TO HELP ME ON THIS ONE? WHAT WE MAY DO -- BECAUSE WE ALREADY HAVE SOME PEOPLE SITTING IN THE FRONT HERE AND -- HOW LONG IS YOUR PRESENTATION?

[ INAUDIBLE ]

MAYOR GARCIA: 20 MINUTES? WE'RE GOING TO DO ITEMS 2 AND 4 FIRST, AND THEN THE CITY MANAGER SHOULD GET HERE BY THEN. AND THEN WE'LL DO THE EXECUTIVE SESSION ITEM UNDER SECTION 551.086 AND THEN ITEM 3, WHICH IS THE AUSTIN ENERGY FINANCIAL AND GENERAL MANAGER'S REPORT. SO LET ME WELCOME EVERYBODY TO THE MEETING. AND THE COUNTY CLERK, DANA DEBEAUVOIR IS HERE, WHICH IS A BRIEFING ON THE DEMONSTRATION OF THE NEW VOTING EQUIPMENT. WELCOME.

GOOD MORNING, MAYOR. THANK YOU FOR HAVING US HERE. LET ME MAKE SURE EVERYONE CAN HEAR ME OKAY. WHAT I WANTED TO TALK WITH COUNSEL ABOUT TODAY IS TRAVIS COUNTY'S NEW E-SLATE VOTING SYSTEM. AND TO HELP ME ANSWER ALL OF YOUR QUESTIONS AND GO THROUGH A BRIEFING, I HAVE WITH ME BILL, WHO IS WITH HART INTERVIFK. AND WHAT WE WOULD LIKE TO DO TODAY IS SHOW YOU HOW THE NEW SYSTEM WORKS AND TALK ABOUT HOW THE CITY OF AUSTIN MIGHT BE INVOLVED IN THE FUTURE IN PARTICIPATING IN THIS NEW VOTING SYSTEM. THE FIRST THING I WOULD LIKE TO DO IS POINT OUT TO YOU A COUPLE OF SPECIAL FEE FEATURES OF OUR EQUIPMENT. THIS BOX RIGHT HERE IS THE EQUIVALENT OF AN ELECTRONIC CALCULATOR. IT IS NOT INTERNET, IT IS NOT NETWORKED TO ANYTHING. IT'S A STANDALONE UNIT THAT HELPS VOTERS MAKE THEIR MARKS FOR THE CHOICES ON THE BALLOT AND THEN STORES THE INFORMATION THAT THE -- THE CHOICES THAT THE VOTERS HAVE MADE. IF YOU'LL NOTICE, AT THE BOTTOM OF THE SCREEN THERE ARE BUTTONS. THERE'S A WHEEL RIGHT HERE AND THEN AN ENTER BUTTON, SOME NAVIGATION NATIONAL BACK AND FORTH BUTTONS AND THEN THE CAST BALLOT BUTTON. NOW, THIS IS THE PIECE OF EQUIPMENT THAT VOTERS ARE GOING TO BE USING, OKAY? AND WE'RE GOING TO SHOW YOU IN A SECOND HOW IT LOOKS TO THE VOTER. BUT WHAT VOTERS WILL FIND WHEN THEY GO TO THE VOTING BOOTH, THIS WILL BE THEIR BALLOT, OKAY? THIS PIECE OF EQUIPMENT OVER HERE HELPS THE ELECTION JUDGE RUN THE POLLING PLACE. THE WAY THIS WORKS IS IT HELPS THE JUDGE IDENTIFY WHICH PRECINCT OR WHICH NEIGHBORHOOD THE VOTER IS VOTING IN SO IT WILL KNOW WHICH BALLOT TO GIVE THEM AND THEN THIS PIECE OF EQUIPMENT HELPS OUR ISSUES AND ACCESS CODE FROM THE ELECTION JUDGE TO GIVE TO THE VOTER -- WE'RE GOING TO SHOW YOU WHAT THAT PROCESS LOOKS LIKE. SO THE FIRST STEP THE VOTINGER IS GOING TO MAKE IS THEY'RE GOING TO STOP AT THE ELECTION JUDGE'S FRONT TABLE WHEN THEY GO TO VOTE. AND WHAT THEY'RE GOING TO FIND IS A PROCEDURE THAT'S IDENTICAL TO THE ONE THEY HAVE RIGHT NOW. THEY'RE GOING TO BE QUALIFI AS A VOTER, FIGURE OUT WHICH PRECINCT THEY'RE SUPPOSED TO BE IN AND ARE THEY REGISTERED. THEY'LL SIGN A MANUAL SIGN-UP SHEET JUST LIKE THEY DO NOW. AND THAT WHOLE VOTER REGISTRATION PROCESS IS THE SAME AS WE'VE ALWAYS HAD IT AND IT'S NOT CONNECTED AT ALL TO THE WAY WE VOTE. AND THE REASON WHY THAT'S IMPORTANT FOR YOU TO KNOW IS BECAUSE THERE'S NEVER ANY WAY TO CONNECT A PARTICULAR VOTER TO A BALLOT IN THIS SYSTEM. THEY'RE COMPLETELY SEPARATE. NOW, WHAT'S GOING TO HAPPEN IS THE VOTER IS GOING TO BE STOP AT THE TABLE, GO THROUGH THE ELECTION JUDGE PROCESS OF GETTING QUALIFIED -- GOOD MORNING -- AND THE ELECTION JUDGE IS GOING TO GIVE THE VOTER A LITTLE TICKET WHICH LOOKS LIKE THIS, COMES OUT OF THE MACHINE. IT'S A RANDOMLY ISSUED FOUR-DIGIT CODE, ACCESS CODE. AND THEN THE VOTER IS GOING TO BE SENT OVER TO ONE OF A CHOICE OF VOTING BOOTHS AND THEN WHAT HAPPENS IS -- AND I'M GOING TO STAND UP SO I CAN SEE OVER THIS. THE FIRST THING THAT'S GOING TO HAPPEN IS HE BALLOT, ACCORDING TO STATE LAW, IS GOING TO ASK THE VOTER DO YOU WANT TO VOTE IN ENGLISH OR SPANISH. REMEMBER, ALL THE SELECTIONS ARE MADE USING THE WHEEL. THIS IS A TOUCH BUTTON VOTING SYSTEM, NOT A TOUCH SCREEN. WE'LL COVER THAT IN A MINUTE. I'M GOING TO PICK ENGLISH RIGHT THERE AND HIT THE ENTER BUTTON TO MAKE MY CHOICE. THEN IT WILL BRING UP ALMOST LIKE A TELEPHONE DIAL, A SET OF NUMBERS AND IT WILL SAY ALL RIGHT, VOTER, PLEASE ENTER IN THE ACCESS CODE THAT THE ELECTION JUDGE JUST GAVE YOU. AND SO WE'RE GOING TO DO THAT. I'M GOING DO IT UPSIDE DOWN HERE. OKAY. AFTER I ENTER IN THIS CODE IT'S CANCELLED AND IT CAN NO LONGER BE USED ANY FURTHER DISCUSSION OTHER VOTER, BUT THE VOTER IS WELCOME TO USE IT AS A RECEIPT SHOWING THEY HAVE IN FACT VOTED. IT WILL SAY THE DATE, TIME AND PLACE THEY VOTED. PERHAPS THEY WANT TO SHOW IT TO THEIR EMPLOYER TO SAY YES, I REALLY DO TAKE TIME OFF TO GO VOTE. ALL RIGHT. SO WHAT WE HAVE IS A BALLOT HERE. USING THE WHEEL ONCE AGAIN THE BAR HIGHLIGHTS THE CHOICES ON THE BALLOT AND AS THE VOTER MOVES THROUGH THE BALLOT AND MAKES THEIR CHOICE, THERE'S A LITTLE RED BOX THAT SAYS OKAY, HERE'S WHAT YOU'VE PICKED, VOTER. AND YOU CAN GO THROUGH THE BALLOT, MAYBE YOU DON'T WANT TO PICK EVERY SINGLE ONE. MAYBE THERE'S SOMEBODY YOU HAVEN'T STUDIED UP ON AND YOU WANT STIPULATE THAT. THAT'S PERFECTLY FINE. I'M GOING TO MAKE SOME CHOICES HERE.

MAYOR GARCIA: [ INAUDIBLE ]

NONE OF OUR ELECTED OFFICIALS ARE LIKE THAT. [ LAUGHTER ] AND ONE LAST TIME. STO ALL OF YOUR AND A HALF RATE GAITING THROUGH THE BALLOT HAPPENS THROUGH THE WHEEL AND THE ENTER BUTTON. NOW, AFTER THE VOTER IS FINISHED VOTING, WHAT THEY'LL GET IS A SUMMARY BALLOT PAGE. ON THE SUMMARY BALLOT PAGE IT WILL SHOW THE VOTER WHAT CHOICES THE VOTER MAKES AND IF THEY MAKE ANY MISTAKES AND IT'S LIKE OOPS, DO YOU KNOW WHAT, I WOULD LIKE TO GO BACK AND CHANGE MY MIND ON THAT PARTICULAR ONE, SO YOU ROLLED THE LITTLE WHEEL DOWN SO THAT BAR IS ON THE PARTICULAR ONE YOU WANT TO CHANGE, HIT THE ENTER BUTTON AGAIN, IT WILL TAKE YOU BACK TO THAT EXACT RACE AND YOU CAN MAKE THE CHANGE JUST BY SICHLY PICKING THE ONE THAT YOU WANT. IT WILL GO BACK TO THE BALLOT SUMMARY SCREEN AND IT WILL TELL THE VOTERS HERE ARE YOUR CHOICES. YOU CAN GO BACK AND FORTH AS MUCH AS YOU WANT MAKING SURE THAT THE BALLOT IS EXACTLY THE WAY YOU WANT IT TO BE. AND ONCE YOU'VE GOT EVERYTHING ALL FILLED IN JUST LIKE YOU WANTED, THEN YOU COME OVER HERE TO THE CAST BALLOT BUTTON. WHAT THE VOTER DOES IS PRESS THE CAST BALLOT BUTTON AND THAT DROPS THE BALLOT INTO THE ELECTRONIC BALLOT BOX. THIS SYSTEM HAS TRIPLE REDUNDANCY, SO YOU HAVE ONE STORAGE SYSTEM HERE THAT KEEPS THE BALLOT AND THEN OTHER STORAGE SYSTEM HERE AND ANOTHER ONE HERE. THREE DIFFERENT PLACES, THREE DIFFERENT PLACES WHERE THAT VOTER'S BALLOT HAS BEEN SAVED TO AN ELECTRONIC MEDIUM. IT'S SOLID STATE SO IT'S NOT LIKE A DISK DRIVE OR ANYTHING LIKE THAT AND IT'S NOT CONNECTED TO ANY SORT OF NETWORK. IT'S LIKE A FLASH CARD, SOLID STATE TECHNOLOGY. IT WON'T RESPOND TO MAGNETS OR ANYTHING LIKE THAT, WATER, MISCHIEF, ANYTHING LIKE THAT. IT WILL BE SAVED IN THREE DIFFERENT PLACES. NOW, I WAS TALKING, BUT YOU MAY HAVE NOTICED THAT RIGHT AFTER I HIT THE CAST BALLOT BUTTON THERE WAS A SCREEN THAT CAME UP SHOWING A WAVING FLAG. WHEN THE VOTER SEES THE WAVING FLAG, THAT'S WHEN THEY KNOW THAT THEY'VE COMPLETELY FINISHED VOTING AND THAT THEIR VOTE HAS BEEN COUNTED. NOW, BEFORE I MOVE TO OKAY, WHAT HAPPENS NEXT TO THE VOTES THAT ARE STORED IN THESE THREE PLACES, I WANT TO TALK TO YOU A LITTLE BIT ABOUT WHY DID WE CHOOSE, WHY DID THE TASKFORCE CHOOSE A TOUCH BUTTON SYSTEM INSTEAD OF A TOUCH SCREEN SYSTEM. THAT WAS VERY IMPORTANT TO US. ONE OF THE MEMBERS ON THE COUNTY CLERK'S TASKFORCE WAS THE MAYOR'S COUNCIL ON PEOPLE WITH DISABILITIES. I BELIEVE I HAVE THAT NAME RIGHT. RON LUCY IS ONE OF THE MEMBERS OF MY TASKFORCE. AND THE TASKFORCE LISTENED TO HIM ABOUT WHAT WOULD THE BEST WAY TO TRY TO ADDRESS PEOPLE WHO MIGHT HAVE VISUAL I AM APARTMENTS OR MOBILITY I AM IMPAIRMENTS. AND WHAT WE LEARNED WAS THIS WAS THE BEST WAY TO TRY TO REACH THE MOST POPULATION THAT WE HAVE WITH A TOUCH BUTTON SYSTEM INSTEAD OF A TOUCH SCREEN. IN THE TOUCH SCREEN SYSTEM -- [ BUZZER SOUNDS ] IS IT ME?

MAYOR GARCIA: SORRY ABOUT THAT.

THE TOUCH SCREEN SYSTEMS ARE MORE GARAGE I WILL BECAUSE THEY HAVE -- FRAGILE BECAUSE THEY HAVE A PRESSURE PLATE THAT'S IN THERE, SO THEY ARE LESS DURABLE. AND FOR EVERYBODY WHO HAS EVER HAD AN EXPERIENCE USING A PALM PILOT, YOU KNOW SOMETIMES WHEN YOU'RE TRYING TO PUSH ON THAT DATE OR THAT LETTER, IT JUST QUITE WON'T GIVE IT TO YOU, WELL, THAT WAS THE EXPERIENCE THAT OUR TASKFORCE HAD WITH TOUCH SCREEN SYSTEMS. I WASN'T CONVINCED THAT THEY WERE ALL THAT DURABLE OR THAT ACCURATE. AND WHAT WE GOT WAS THE SECOND APPROACH, WHICH WAS THE TOUCH BUTTON. THE ADVANTAGE OF THIS IS THAT NO MATTER WHAT YOUR LEVEL OF ABILITY OR DISABILITY, EVERYBODY VOTES ON EXACTLY THE SAME UNIT. SO IF YOU'RE A BLIND VOTER, IF YOU'RE SOMEONE WITH A MOBILITY IMPAIRMENT, YOU VOTE EXACTLY THE SAME WAY AS EVERYBODY ELSE. THERE'S NO SPECIAL SECOND UNIT, A SEPARATE BUT EQUAL UNIT FOR PEOPLE WITH DISABILITIES. IT'S THIS PARTICULAR UNIT. AND THE WAY WE DO THAT IS THE BUTTONS ARE -- THEY HAVE BRAILLE LETTERING ON THEM, BUT THEY'RE ALSO JUST DIFFERENT SIZES. THE WHEEL IS MOCH NOTCHED SO YOU CAN FEEL IT EVERY TIME IT TURNS AROUND. THE HORIZONTAL ENTER BUTTON IS A VERY DEFINITE SHAPE. SO ARE THE NAVIGATION NATIONAL ARROWS. AND THE CAST BALLOT BUTTON IS THIS RAISED BUTTON THAT'S WAY OVER HERE ON THE VOTER'S LEFT SO THAT IT'S THE LAST THING THAT THEY WOULD TOUCH WHEN THEY WERE NAVIGATING THROUGH. LET'S SAY YOU JUST HAD SOME MOBILITY I IMPAIRMENTS. WELL, WITH THE WHEEL YOU CAN VOTE WITH THE HEEL OF YOUR HAND, YOU WITH VOTE WITH A POINTER. THERE ARE LOTS OF OPTIONS USING THIS WHEEL TECHNOLOGY. AND THIS COMES FROM MEDICAL EQUIPMENT INDUSTRY, SO HIGHLY ACCURATE, HIGHLY SENSITIVE AND CHEAP TO REPAIR. NOW, LET'S SAY, THOUGH, YOU'RE A VISUALLY IMPAIRED OR BLIND VOTER OR PERHAPS A VOTER WITH A LITERACY ISSUE. THEN WHAT WE CAN OFFER THEM IS THE CHANCE TO HAVE THE BALLOT READ TO THEM IN A HUMAN VOICE. SO THEY PUT THE EARPHONES ON AND THERE'S AN AUDIO SYSTEM HERE THAT WILL READ EACH STEP THROUGH THE BALLOT AS YOU NOTCH THROUGH IT. GO ONE BY ONE. OKAY. ALL RIGHT. BILL'S SUGGESTING THAT WE PUT THIS UP HERE SO YOU CAN HEAR IT. (E-SLATE TALKING)

THAT'S WHAT IT SOUNDS LIKE. SO WE'LL READ IT TO THEM AND IT WILL READ EVERY CHOICE ON THE BALLOT. AND WHEN THEY MAKE THE CHOICE IT WILL READ THIS -- THIS AUDIO WILL READ BACK TO THEM, YOU HAVE SELECTED A PARTICULAR CANDIDATE. AND THEN AT THE VERY END JUST LIKE THE SUMMARY PAGE THAT A SIGHTED VOTER HAS, IT WILL READ THE SUMMARY PAGE TO THE VOTER TELLING THEM HOW THEY'VE MADE THEIR CHOICES, WHETHER THEY'VE SKIPPED ANYBODY, SO THEY CAN GO BACK AND FORTH THROUGH THE BALLOT TO MAKE SURE THEIR VOTES ARE EXACTLY THE WAY THEY WANT THEM BEFORE THEY PRESS THE CAST BALLOT BUTTON. IF YOU ARE A VOTER WITH MULTIPLE DISABILITIES OR A VOTER WITH PERHAPS VERY LIMITED RANGE OF MOTION OR PERHAPS QUADRIPLEGIC OR PAIR PLEEJIC, THEN WE HAVE TACTICAL PRESSURES. YOU WE CAN PLACE THEM ON THE FLOOR AND YOU CAN VOTE WITH YOUR FEET OR YOUR ELBOW OR CHIN OR WHATEVER WORKS BEST FOR THAT VOTER. THE GREEN BUTTON ACTS JUST LIKE THE ENTER BUTTON AND THE RED BUTTON ACTS JUST LIKE THE WHEEL SO THEY CAN GO THROUGH AND NAVIGATE JUST LIKE EVERYBODY ELSE. AND ONE FINAL THING, IF YOU'RE CHRISTOPHER ROOEF, YOU'RE IN A WHEELCHAIR AND YOU HAVE VERY LIMITED POSSIBILITY, THERE IS AN OUTLET ON THIS SYSTEM TO PLUG IN YOUR OWN PERSONAL ZIP AND PUFF DEVICE. THE WAY THAT WORKS IS IT'S A DEVICE THAT THEY USE TO OPERATE COMPUTER SYSTEMS AND TELEPHONES AND THE THINGS THEY NEED IN THEIR DAILY LIFE. WHEN YOU PUFF, IT MAKES THE CHOICE FOR YOU. THIS IS ALSO COMPATIBLE WITH ZIP AND PUFF DEVICE. THE REASON WE WENT WITH TOUCH BUTTON INSTEAD OF TOUCH SCREEN, GREATER DIEWR RABILITY AND CHEAPER TO REPAIR, SO WE END UP WITH A LONGER LIFE TO LESS MONEY. ALL RIGHT. NOW, LET'S SAY WE'VE HAD AN ELECTION JUDGE WHO IS WORKING ALL DAY LONG ISSUING ACCESS CODES AND MAKING SURE VOTERS GET ALL THESE SYSTEMS THAT THEY WANT, THESE SYSTEMS ARE DESIGNED FOR VOTERS TO OPERATE INDEPENDENTLY, AND AT THE END OF THE DAY IT'S TIME NOW TO CLOSE THE POLLS AND SEND THE RESULTS IN. HOW DOES THAT WORK? WHAT WE WANT TO DO IS OPERATE VERY MUCH THE WAY WE ARE OPERATING NOW WITH THIS NEW SYSTEM. AND BASICALLY WHAT THE ELECTION JUDGE WOULD DO IS PACK UP THIS EQUIPMENT AND THEN THEY COME IN CARRYING CASES WITH LITTLE LUGGAGE CARRIERS EASY FOR FOLKS TO GET AROUND. BRING THIS PIECE OF EQUIPMENT IN. THIS IS THE ELECTRONIC BALLOT BOX, OKAY? AND WHAT WE'LL DO IS WE'LL HAVE THEM TAKE THIS EQUIPMENT TO OUR SUBSTATIONS, WHICH IS THE WAY WE DO RIGHT NOW. THE WAY IT WORKS RIGHT NOW IS THE ELECTION JUDGE PICKS UP THE BALLOT BOX AND SOME PAPERWORK, DRIVES TO THE SUBSTATION AND MAKES OFFICIAL RUR 17 DER OF THE BALLOT BOX AT THE SUBSTATION AND THEN OUR LAW ENFORCEMENT TEAMS BRING IN THE BALLOT BOXES AND PAPERWORK TO THE CENTRAL ACCOUNTING STATION. IT WILL BE THE SAME APPROACH HERE. THE ELECTION JUDGE WILL BRING THIS IN, MAKE OFFICIAL SURRENDER OF THE BALLOT BOX TO THE PEOPLE OPERATING THE SUBSTATION, AND THEN THE FOLKS WHO ARE THERE AT THE SUBSTATION WILL HAVE TECHNICAL TRAINING AND EXPERTISE. AND WHAT HAPPENS IS YOU POP OUT THIS LITTLE FLASH CARD. THAT'S THE FIRST AND EASIEST MEDIUM TO READ. POP OUT THE FLASH CARD, PUT IT IN ONE OF THE LITTLE CARD READERS, AND IT WILL READ ALL THE BALLOTS THAT ARE ON THE ELECTRONIC BALLOT BOX AND MODEM TRANSFER THE INFORMATION FROM THE SUBSTATION TO THE COUNTING STATION. NOW, IN THE MEANTIME, WE'RE ALSO COLLECTING ALL OF THIS EQUIPMENT AND LAW ENFORCEMENT PERSONNEL ARE BRINGING IT TO THE COUNTING STATION SO IT CAN BE AUDITING, DOUBLE-CHECKED TO MAKE SURE WE DIDN'T MISS ANYTHING, BUT WE DON'T HAVE TO WAIT AROUND TO GET OUR ELECTION RESULTS WHILE THAT AUDITING IS TAKING PLACE. THEIR MUCH, MUCH QUICKER ABOUT TRANSFERRING INFORMATION THAN A PAPER BALLOT HAS HAS TO WAIT TO BE DOUBLE-CHECKED AFTER IT ARRIVES AT THE CENTRAL COUNTING STATION. WITH THESE SYSTEMS WE CAN START COUNTING BALLOTS AT THE SUBSTATION POINT OF DELIVERY. OKAY. I THINK I'VE COVERED THE BASICS OF THE SYSTEM ITSELF. NOW, WHAT I'D LIKE TO TALK TO YOU NOW ABOUT IS I WOULD LIKE TO WORK WITH YOU FOR THE FUTURE AND OFFER YOU THE OPPORTUNITY TO USE THIS EQUIPMENT FOR YOUR ELECTIONS AS WELL. AND IN DOING SO I BELIEVE YOU MIGHT NEED SOME ASSISTANCE. THERE'S A TRAINING CURVE, A LEARNING CURVE TO GO THROUGH FOR HOW YOU USE THIS SYSTEM. SO WHAT I HAD LIKE TO DO IS OFFER YOU MY SERVICES AS AN ELECTIONS ADMINISTRATOR TO HELP YOU GET THROUGH THAT PROCESS. AND THEN YOU CAN CONTINUE TO USE ME OR YOU CAN -- OR WE'LL TRAIN SOMEONE ELSE, WHATEVER IS THE WILL OF THE COUNCIL. BUT MY GOAL IS TO OFFER THE EQUIPMENT TO AS MANY OTHER JURISDICTIONS AS WE CAN. FIRST OF ALL, IT LET'S EVERYBODY HAVE THE OPPORTUNITY TO HELP PAY FOR THE SYSTEM INSTEAD OF JUST ONE JURISDICTION, TRAVIS COUNTY. THE SECOND THING IS THAT NO MATTER WHO IS HOLDING AN ELECTION, WHEN THE VOTERS SHOW UP AT THE POLLING PLACE OR EARLY VOTING LOCATION, WHAT THEY SEE IS CONSISTENCY. EVERY SINGLE TIME THEY SEE THE SAME WAY TO VOTE. AND I'M HOPING TO BE ABLE TO OFFER THAT TO OUR COMMUNITY. IT'S ALSO GOING TO BE PROMOTE MORE COOPERATION, MORE DLAB RATION AND MORE JOINT ELECTIONS BECAUSE THESE SYSTEMS WILL HANDLE SPLIT PRECINCTS AND THE SITUATION WHERE YOU'VE GOT TWO DIFFERENT JURISDICTIONS HOLDING AN ELECTION AT THE SAME TIME MUCH MORE ACCURATELY AND MUCH MORE EASILY FOR THE ELECTION JUDGES THAN OUR CURRENT SYSTEM. SOING WE MIGHT SEE THE OPPORTUNITY TO SEE MORE JOINT ELECTIONS FOR THE FUTURE IN A WAY THAT'S EASIER AND MORE ACCURATE. IN THAT VEIN I'VE TALKED WITH MANY OF YOU PERSONALLY ABOUT THIS IDEA OF THE CITY OF AUSTIN BASICALLY PARTNERING WITH TRAVIS COUNTY SO THAT WE ALL TAKE ADVANTAGE OF THE NEW VOTING SYSTEM. AND TAKE ADVANTAGE OF MY EXPERTISE IN THAT AS WELL. AND IN THAT VEIN I'VE WORKED WITH OUR CITY OF AUSTIN CITY CLERK, SHIRLEY BROWN, TO DEVELOP SORT OF A FIRST DRAFT OF AN INTERLOCAL AGREEMENT THAT IS A MENU FORMAT. WHAT KIND OF THINGS WOULD THE COUNCIL WANT TO ASK ME TO DO FOR THEM, WHAT MIGHT YOU WANT TO RESERVE, YOU KNOW, FOR YOUR OWN FOLKS TO HANDLE, WHAT THINGS ARE REQUIRED BY LAW THAT COUNCIL MUST DO THEMSELVES, AND LET'S TAKE A LOOK AT THE MENU OF ALL THOSE DIFFERENT TASKS ASSOCIATED WITH ELECTIONS AND PICK AND CHOOSE, WHICH THINGS YOU WANT ME TO HELP WITH AND WHICH THINGS YOU WOULD LIKE TO RESERVE FOR YOURSELF. SHIRLEY AND I ARE WORKING ON DEVELOPING THAT MENU AND APPROACH TO AN INTERLOCAL AGREEMENT THAT CAN BE AS LIMITED AS AN ELECTIONS EQUIPMENT LEASE OR AS EXPANDED AS AN ELECTIONS EQUIPMENT ELECTIONS SERVICES CONTRACT WITH THE COUNTY CLERK. NOW, THAT'S THE BASIC IDEA. AND SO WHAT I'M HERE TO DO TODAY IS TO SAY I'D LIKE TO HEAR YOUR THOUGHTS. DO YOU THINK THIS IS A GOOD IDEA? ARE THERE ANY SPECIAL CONCERNS THAT YOU HAVE THAT SHIRLEY AND I CAN ADDRESS WHILE WE'RE WORKING ON THE DRAFT? AND THEN WHAT WE'D LIKE TO DO FOR THE FUTURE IF IT'S THE WILL OF THE COUNCIL, BRING BACK OUR INTERLOCAL AGREEMENT, LET YOU TAKE A LOOK AT IT, THINK IT THROUGH, AND THEN SEE WHAT KIND OF RELATIONSHIP YOU WOULD LIKE TO DEVELOP WITH ME AND WITH TRAVIS COUNTY FOR THE FUTURE. AND WITH THAT RATHER SIMPLE SUMMARY OF WHAT WE'RE TRYING TO ACCOMPLISH HERE TODAY, I'D LIKE TO THROW IT OPEN TO QUESTIONS. AND HOW MIGHT I EXPAND ON THIS?

WYNN: MAYOR? THANK YOU. I AGREE THAT THE SORT OF COULD NOTCONTINUITY FROM ELECTION TO ELECTION AND JURISDICTION TO JURISDICTION IS REALLY IMPORTANT FOR US. I'M AS FRUSTRATED AS ANY VOTER WHEN IT COMES TO WHICH TIME OF YEAR AND WHICH BOX. MY PRECINCT ACTUALLY MOVES AROUND A LITTLE BIT IN MY NEIGHBORHOOD. TALK TO ME A LITTLE BIT ABOUT THE ISSUE THAT THE CITY OF AUSTIN FACES HAVING A GROWING NUMBER OF BOXES NOW IN WILLIAMSON COUNTY. IS THERE -- BY CHANCE IS WILLIAMSON COUNTY DOING SOMETHING SIMILAR? AND IF NOT, DO YOU FORESEE SOME ABILITY FOR US TO SOMEHOW EXPORT THIS EQUIPMENT INTO OUR BOXES ON THOSE OCCASIONS?

OKAY. THE ANSWER TO THE QUESTIONS IS YES, BUT LET ME DO A LITTLE BIT OF EXPLAINING. THE VOTING SYSTEM ITSELF IS NOT GOING TO DO ANYTHING TO SOLVE BOUNDARY AND COMMUNICATION PROBLEMS. THIS WILL MAKE IT EASIER AND MORE ACCURATE AND QUICKER FOR VOTERS TO ACTUALLY VOTE, BUT THE RELATIONSHIPS BETWEEN THE TWO JURISDICTIONS DON'T REALLY HAVE ANYTHING TO DO WITH THE BOX, OKAY? NOW, WHAT WE'VE DONE IN TRAVIS COUNTY, AND IT'S WORKED REALLY WELL, AND I THINK AS WE LEARN AND HAVE MORE EXPERIENCE OVER TIME WE'RE TRYING TO DO COOPERATION ACROSS ESPECIALLY COUNTY BOUNDARY LINES, IS I'VE DEVELOPED A REALLY GOOD WORKING RELATIONSHIP WITH JOHN WILLINGHAM. AND WHEN OUR COUNTIES HOLD ELECTIONS AT THE SAME TIME, WHAT HE AND I TRY TO DO IS COORDINATE SOME OF THAT ACTIVITY FOCUSING MOSTLY ON EARLY VOTING. IT IS A CONFUSING BOUNDARY. THAT'S JUST THE WAY IT IS. IT'S UNFORTUNATE FOR THOSE FOLKS OUT THERE. MANY OF THEM COULDN'T TELL YOU WHICH BOUNDARY LINE THEY'RE EITHER WITHIN OR WITHOUT. SO WE HAVE TO BE -- TAKE AN EXTRA STEP TO MAKE SURE WE EDUCATE VOTERS ABOUT HERE'S WHERE YOU GO AND HERE'S THE WAY YOU HANDLE THOSE BOUNDARY LINES. THERE'S NOTHING COMPELLING WILLIAMSON COUNTY AT THIS POINT TO PURCHASE ANY NEW VOTING SYSTEM AND CERTAINLY NOT THIS PARTICULAR ONE. JOHN WILLINGHAM, THE ELECTIONS ADMINISTRATOR IN WILLIAMSON COUNTY, IS REALLY BRIGHT AND KNOWLEDGEABLE AND I'M SURE THEIR JURISDICTION WOULD TRUST HIS JUDGMENT FOR HOW THEY WANT TO GO FOR THE FUTURE, BUT IT'S NOT CONNECTED TO US IN ANY WAY. SO THE ANSWER TO OUTQUESTION IS THEY MAY OR MAY NOT BE CONTEMPLATING THIS SAME KIND OF EQUIPMENT. WE DON'T KNOW. AND THERE WOULD BE NO OPPORTUNITY FOR US TO REALLY HAVE INPUT. NOW, TO MORE SPECIFICALLY ADDRESS, THOUGH, WHAT HAPPENS IF THE COUNTY CLERK HELPS THE CITY OF AUSTIN AND THE CITY OF AUSTIN TERRITORY GOES INTO WILLIAMSON COUNTY, THE ANSWER TO THAT IS PARTLY A LEGAL QUESTION, PARTLY A PRACTICAL QUESTION. IF WE SIGN AN INTERLOCAL AGREEMENT AND IT'S FOR A JOINT ELECTION OR I'M CEFERBING AS BASICALLY THE ELECTIONS ADMINISTRATOR FOR THE CITY COUNCIL, THEN I COVER YOUR TERRITORY. SO WHATEVER YOUR BOUNDARY LINE IS IS WHAT I WOULD BE MANAGING. I CAN'T GO INTO ANOTHER COUNTY UNLESS I HAVE A LEGAL REASON TO BE THERE. YOU WOULD BE MY LEGAL REASON TO BE IN JUST THAT PORTION OF WILLIAMSON COUNTY THAT IS THE CITY OF AUSTIN, OKAY? WHAT WE FOUND IN THE PAST IS THAT IT'S NOT SO MUCH HOW PEOPLE ACTUALLY VOTE, BUT WHAT JOHN WILLINGHAM AND I HAVE DISCOVERED, AND ESPECIALLY FOR ELECTION DAY, EARLY VOTING IS REALLY EASY. WE CAN CO-LOCATE AT LAKELINE MALL AND THAT SORT OF HELPS PEOPLE FIGURE OUT WHY THEY'RE SUPPOSED TO GO. AND EVEN IF THEIR -- TRAVIS COUNTY IS CONDUCTING IT ON THIS SIDE, BUT EVERYTHING ELSE IS WILLIAMSON COUNTY ON THE OTHER SIDE, BY HAVING US CO-LOCATE AT THE SAME PLACE, VOTERS CAN MOVE FROM ONE TABLE TO THE NEXT AND GET THEIR VOTING DONE. WE'VE DONE THAT AND IT'S WORKED WELL IN THE PAST. FOR ELECTION DAY WHAT WE'VE DISCOVERED IS IT'S BEST TO JUST TRY TO EDUCATE THE ELECTION JUDGE THAT'S AT A PARTICULAR PRECINCT ABOUT WHAT'S GOING ON IN THE SURROUNDING PRECINCT. FOR EXAMPLE, A VOTER SHOWS UP AT THE ONE OF THE WILLIAMSON COUNTY PRECINCTS, BUT IS PERHAPS IN THE WRONG PLACE OR DOESN'T REALIZE THAT THERE'S ALSO AN ADDITIONAL ELECTION. YOU KNOW, IF THE ELECTION JUDGES ARE FULLY BRIEFED FROM BOTH SIDES OF THE COUNTY FOR WHAT'S GOING ON, THEN WHAT WE CAN DO IS SHARE WITH THE VOTER RIGHT THEN. SO WHAT JOHN AND I HAVE FOUND IN OUR TRAINING IS LET'S MAKE SURE THE ELECTION JUDGES KNOW THE WHOLE LAY OF THE LAND OUT THERE AND IT MAKES IT MUCH EASIER FOR VOTERS. SO THE ANSWER IS PARTLY PRACTICAL, PARTLY LEGAL. AND THE BEST SOLUTIONS THAT WE FOUND FOR COORDINATING ACROSS THE CONFUSING BOUNDARY LINES REALLY DON'T HAVE ANYTHING TO DO WITH THE BOX.

WYNN: BUT PRESUMABLY YOU PURCHASED ENOUGH -- AND/OR ARE PURCHASING ENOUGH PIECES OF EQUIPMENT TO DO ALL OF THE COUNTY BOXES IF THE CITY WERE TO USE YOUR SERVICES THEN FOR A -- SAY JUST THE MAY MUNICIPAL ELECTION HAD WHICH DOESN'T HAVE ANY COUNTY OR OTHER BALLOT ITEMS, THEN YOU WOULD PROBABLY HAVE ENOUGH EQUIPMENT FROM YOUR NON-CITY OF AUSTIN BOXES IN THE COUNTY TO USE THE EQUIPMENT IN THE CITY OF AUSTIN PRECINCTS UP IN WILLIAMSON COUNTY?

YES, SIR, MORE THAN ENOUGH EQUIPMENT.

WYNN: SO YOU WOULD HAVE THE EQUIPMENT TO COVER ALSO OUR BOCKS IN WILLIAMSON COUNTY. AND QUICKLY AGAIN, SO REALISTICALLY THE POLLS CLOSE AT 7:00 P.M. WITH THIS SYSTEM AND UTILIZING THE SUBSTATION COUNTING ABILITY OR WHATEVER, HOW -- REALISTICALLY HOW SCOON WOULD THERE BE OFFICIAL ELECTION RESULTS ON ELECTION NIGHT?

HOW QUICKLY CAN WE GET THE RESULTS OUT? THE ANSWER IS I DON'T KNOW, BUT ASSUMING THAT OUR ELECTION JUDGES TAKE APPROXIMATELY AN HOUR TO CONCLUDE VOTING, PICK UP THEIR SUPPLIES AND COME IN TO A SUBSTATION, WE'D BE LOOKING AT AN HOUR AND 10 MINUTES FOR THAT PARTICULAR JUDGE'S RESULTS TO BE MODEM TRANSFERRED TO THE CENTRAL COUNTING STATION. I THINK IT'S FEASIBLE THAT WE COULD BE FINISHED BY AN ELECTION BY 9:00 O'CLOCK. I DO BELIEVE THAT WE'RE GOING TO SEE A RADICAL CHANGE IN THE WAY ELECTION NIGHT LOOKS FOR THE FUTURE. NO LONGER ARE WE GOING TO HAVE WITH THIS NEW SYSTEM HUNDREDS OF PEOPLE WORKING LATE, LATE, LATE INTO ELECTION NIGHT TRYING TO HAND AUDIT A PAPER BALLOT. THERE WON'T BE ANY NEED TO AUDIT A BALLOT BECAUSE THE VOTER HAS ALREADY DONE IT FOR THEMSELVES, SO THAT TEST OF LAW HAS ALREADY BEEN ACCOMPLISHED AT THE TIME THE VOTER IS STANDING THERE. WHAT I MIGHT WANT TO DO IS OFFER BILL THE OPPORTUNITY TO COMMENT ABOUT PREVIOUS EXPERIENCES -- WE'VE NOT DONE IT HERE YET AND I DON'T KNOW EXACTLY HOW LONG IT'S GOING TO TAKE US. LET HIM COMMENT SO WHAT THE PREVIOUS EXPERIENCE IS. AND THEN I WANT TO TALK TO YOU ABOUT WHY WE HAD THE IDEA TO GO WITH THE IS STUB STATIONS WHEN BILL GETS THROUGH. BILL?

THANKS. GETTING THE RESULTS IN AND GETTING THEM TABULATED IS VERY FAST. THE CHALLENGE IS GETTING THE BOXES FROM THE POLLING PLACE TO THE SUBSTATIONS. SO WHATEVER TIME IS INVOLVED IN AN ELECTION JUDGE SHUTTING DOWN THE POLLING PLACE AND THEN GETTING TO THE SUBSTATION WILL BE THE LONGEST DELAY PERIOD. SO IF AN HOUR IS A REASONABLE AMOUNT OF TIME FOR THAT TO HAPPEN, ONCE THE RESULTS ARE MODEMED IN, THEY'LL BE AUTOMATICALLY INTEGRATED WITH ANY OTHER RESULTS THAT HAVE BEEN MODEMED IN AND YOU CAN -- YOU COULD REPORT THE PERIODIC REPORTS JUST AS YOU DO NOW AS IT'S BEING COUNTED THROUGHOUT THE NIGHT. BUT IF EVERYTHING HAS GOTTEN TO THE SUBSTATIONS IN AN HOUR, I ASSUME 10 OR 15 MINUTES TO GET THE MODEM TRANSMISSION COMPLETED AND CONFIRMED, A LITTLE BIT OF TIME TO AUDIT AND CHECK, CERTAINLY BY 9:00, 9:30, THAT'S A REASONABLE EXPECTATION. IN OTHER EXPERIENCES WHERE THERE'S EITHER BEEN DIRECT MODEM OR FROM JURISDICTIONS THAT HAD THE SAME APPROACH, THEIR JURISDICTIONS HAVE FINISHED THE COUNT IN 15, 20 MINUTES. IT CAN OCCUR VERY RAPIDLY ONCE ALL RESULTS ARE INTEGRATED. IT IS THE HUMAN FACTOR THAT'S THE ISSUE. IT'S THE SPEED OF PHYSICAL TRANSPORTATION TO THE FIRST STOPPING POINT.

I'VE BEEN KIDDED, CRITICIZED FOR MANY, MANY YEARS ABOUT TURNING ELECTION RESULTS OUT AS FAST AS POSSIBLE. I DO BELIEVE THE WAY WE'RE OPERATING RIGHT NOW, WE HAVE ACHIEVED THE MAXIMUM AMOUNT OF TIME YOU COULD EXPECT A PAPER BALLOT TO BE AUDITED AT A CENTRAL COUNTING STATION. I THINK WE'VE GOT IT DOWN TO AS QUICK AS POSSIBLE. IT'S NOT AS FAST AS WHAT Y'ALL OR I WANT AND I DON'T THINK IT'S AS FAST AS THIS COMMUNITY WANTS EITHER, BUT WE'RE NEVER GOING TO SEE THE KINDS OF SPEED WITH A CENTRAL COUNTING STATION IN A PAPER BALLOT THAT WE'RE GOING TO SEE WITH THIS. THIS IS A WHOLE ANOTHER WORLD. AND PART OF THE REASON THAT TAKES SO MUCH TIME ON ELECTION NIGHT IS THE TRANSFER OF WAITING FOR THE BALLOTS TO ARRIVE AT THE COUNTING STATION AND THEN ONCE WE OPEN UP THE BOXES, EVERY SINGLE SOLITARY PAPER BALLOT HAS TO BE ACCORDING TO STATE LAW HAND AUDITED. THAT'S WHAT TAKES THE LONGEST. THAT'S WHAT WE'RE TRYING TO GET AWAY FROM. BY HAVING THAT SUMMARY SCREEN AT THE END OF THE VOTER BALLOT, WHERE THE VOTER IS MARKING THEIR BALLOT AND IT TELLS THEM HERE'S WHAT YOU DID, WHAT WE'RE TAKING IS THE STATE LAW REQUIREMENT THAT SAYS THAT YOU HAVE TO AUDIT EVERY BALANCE BAL LOT AND INSTEAD OF EXPECTING THE COUNTY CLERK TO DO IT STARTING AT EIGHT OR 9:00 O'CLOCK AT NIGHT AT A CENTRAL COUNTING STATION, IT'S HAPPENING RIGHT AS THE VOTER IS STANDING AT THEIR VOTING BOOTH AND THEY DO IT FOR THEMSELVES. SO THAT WHOLE STATE REQUIREMENT THAT SAYS YOU HAVE TO AUDIT GOES AWAY. NOW, WHY WOULD WE USE A SUBSTATION APPROACH? THIS EQUIPMENT WILL ACTUALLY MODEM TRANSFER FROM THE INDIVIDUAL PRECINCT, AND THERE MAY COME A TIME WHEN WE WANT TO MOVE IN THAT DIRECTION, WHERE THE ELECTION JUDGE PUSHES A COUPLE OF BUTTONS AND OFF THE RESULTS GO FROM THE PRECINCT DIRECTLY TO THE CENTRAL COUNTING STATION AND THERE ISN'T ANY STOP IN BETWEEN, THERE ISN'T ANY DRIVE TIME. I'M A LITTLE HESITANT TO DO THAT RIGHT OFF THE BAT AND HERE'S WHY. I WANT TO MAKE SURE THAT NOT ONLY VOTERS, BUT OUR ELECTION JUDGES ARE COMFORTABLE, COMPETENT, YOU KNOW, VERY COMFORTABLE OPERATING THE SYSTEM. THE PROCESS BY WHICH YOU WOULD FIND AN ANALOG TELEPHONE LINE AT A POLLING PLACE AND PLUG IT IN IS A LITTLE BIT COMPLICATED. AND HERE'S WHY. AN ANALOG PHONE LINE NEEDS JUST ONE TELEPHONE LINK AT YOUR RESIDENCE. IT'S NOT A TWO-LINE PHONE, IT'S NOT A SWITCHBOARD, IT'S NOT A FAX LINE, IT'S NOT A COMPUTER LINE OR ANYTHING LIKE THAT, IT'S JUST A REGULAR TELEPHONE LINE. AND IN ORDER FOR THE SECURITY TO BE RESERV PRESERVED, I HAVE TO KNOW THE TELEPHONE NUMBER OF THAT LINE IN ADVANCE, OTHERWISE THE SYSTEM WON'T TAKE ANY OUTSIDE TELEPHONE NUMBERS. SO MAKING SURE, YOU KNOW, IN THE DAYS AND WEEKS BEFORE AN ELECTION AND BETWEEN ELECTIONS THAT NOBODY HAS GONE IN THERE AND CHANGED THE TELEPHONE NUMBERS, THAT WHATEVER POLLING PLACE WE'RE IN DIDN'T GET A NEW SWITCHBOARD, THAT THERE WASN'T REMODELING IN THE PLUG THAT WHERE THEY USED TO PLUG IS NOW IN SOME OTHER ROOM, THAT ALL OF THOSE SORT OF PRACTICAL CONSIDERATIONS ARE NOT SOMETHING WE HAVE TO DEAL WITH FIRST WHILE THE JUDGES AND VOTERS ARE GETTING COMFORTABLE WITH THIS. ULTIMATELY I THINK WE CAN GET THERE, BUT MAY N. THE MEANTIME LET'S HAVE SOME TECH PEOPLE OPERATE OUR SUBSTATIONS SO WE'RE REAL CLEAR ABOUT EXACTLY THE STEPS THAT NEED TO BE TAKEN AND WE CAN AUDIT EVERYTHING, IT'S NEAT AND CLEAN AS AS FAST AS POSSIBLE. THAT'S WHY I'M RECOMMENDING A LITTLE BIT OF DRIVE TIME FOR THE JUDGES TO BRING IN THE ELECTRONIC BALLOT BOX TO A SUBSTATION.

MAYOR GARCIA: WHEN YOU DID THE COSTING OF THIS, WHAT ASSUMPTIONS DID YOU MAKE AS IT REGARDS -- HOW MANY JURISDICTIONS WERE GOING TO USE IT? AND ASSUMING THAT A REASONABLE NUMBER OF JURISDICTIONS WILL USE IT, WOULD THE COST TO THE CITY REMAIN PRETTY MUCH THE SAME?

THE ANSWER TO ALL OF THE COST IS I DON'T KNOW AND WE NEED TO TALK ABOUT IT. THE PRICE FOR PURCHASING THE EQUIPMENT IS A LOW PRICE. WE GOT A GREAT DEAL. IT'S FIVE MILLION DOLLARS, OKAY? NOW, HOW YOU WOULD GO ABOUT FIGURING OUT, WELL, OKAY, HOW ARE WE GOING TO SHARE THE COST IN THIS? IS IT GOING TO BE ACCORDING TO THE NUMBER OF PRECINCTS? LET'S SAY YOU'RE A MUCH, MUCH SMALLER JURISDICTION, PERHAPS ONE OF OUR REALLY SMALL CITIES IN TRAVIS COUNTY. SHOULD WE GO WITH THE FLAT RATE FOR THE REALLY LITTLE GUYS? I NEED SOME ACCOUNTANT TYPES TO HELP US GET TOGETHER AND FIGURE OUT ALL OF THAT. AND I THINK WHAT IT'S GOING TO BE IS A NEGOTIATION FOR WHAT'S FAIR, WHAT'S REASONABLE. WE WANT TO SHARE IN THE COST, BUT I DON'T WANT TO PRICE ANYBODY OUT OF BEING ABLE TO USE THIS.

MAYOR GARCIA: THE SECOND QUESTION I ASKED WHEN WE HAD THAT LITTLE PRESS CONFERENCE OVER AT HIGHLAND MALL, IS ARE THESE MACHINES GOING TO SCARE PEOPLE HAVING TO, YOU KNOW, FA NAGLE WITH ALL THE THINGS THAT GO AROUND AND AROUND AND PUSH HERE AND PUSH THERE?

IT'S A FAIR QUESTION. HOW QUICKLY ARE VOTERS GOING TO WARM UP TO THE DIAL, TO THE LITTLE WHEEL? HOW QUICKLY CAN WE GET THEM COMFORTABLE AND COMPETENT AND COMPLETELY BRIEFED ON HOW THE SYSTEM WORKS. WE ARE DOING, AND BY WE I MEAN HART INTERCIVIC, TRAVIS COUNTY, THE COUNTY CLERK,TATE AUSTIN ARE DOING AN EXTENSIVE EDUCATION OUTREACH PROGRAM RIGHT NOW. AND PART OF ME BEING HERE TODAY IS PART OF THAT EDUCATION EFFORT. THE MAYOR MADE A COMMENT ABOUT US BEING OUT AT HIGHLAND MALL FOR THE FOURTH OF JULY WEEKEND, SATURDAY JULY THE SIXTH WE DID A BIG EXPO AT HIGHLAND MALL. IT WAS VERY WELL ATTENDED, VERY WELL RECEIVED. WE TOUCHED A LOT OF VOTERS. AND SO WHAT WE'RE TRYING TO DO -- THE POINT IS THAT WE'RE TRYING TO TRAVEL AROUND AND TEACH EVERYBODY HOW TO USE THE SYSTEM. IF THERE'S ONE THING THAT FLORIDA TAUGHT US, AND IT'S AN APPROACH THAT WE'VE USED THIS THIS COUNTY BEFORE -- LET ME BACK UP BEFORE I COMMENT ABOUT FLORIDA. WHEN TRAVIS COUNTY WENT TO AN OPTICAL SCAN VOTING SYSTEM, WE DID A MASSIVE EDUCATION PROGRAM AT THAT TIME, TEACHING PEOPLE HOW TO COLOR IN THE BUBBLE. IT WAS JUST LIKE A STANDARDIZED TEST. PEOPLE TOOK TO IT EASILY. THIS IS VERY LIKE AN ATM MACHINE. IT'S ALMOST IDENTICAL. SO I THINK PEOPLE ARE GOING TO NATURALLY TAKE TO IT. BUT THAT DOESN'T MEAN WE OVERLOOK EDUCATING THEM. SO FLORIDA'S TAUGHT US THAT IT'S FINE TO TELL PEOPLE WHERE THEIR POLLING PLACE IS AND IT'S FINE TO INSTRUCT PEOPLE ABOUT WHAT'S ON THE BALLOT, BUT YOU ALSO HAVE TO TEACH THEM HOW TO USE WHATEVER VOTING SYSTEM THEY HAVE RIGHT IN FRONT OF THEM. AND WE HAVE TO DO THAT WITH THIS SYSTEM. SO I INVITE YOU TO TELL ME WHERE TO GO, INVITE ME TO ORGANIZATIONS, GROUPS, MEETINGS, LUNCHEONS. I WILL BE THERE, WE'LL RUN -- WE'LL BRING EQUIPMENT, WE'LL DO HANDS ON. I'M TRYING TO GET TO EVERY GROUP AND EVERY PERSON I CAN POSSIBLY REACH BETWEEN NOW AND THE TIME EARLY VOTING STARTS. WE HAVE A PLAN, AND WE ARE WORKING THROUGH SOME COMMUNITY PARTNERS WHO ARE HELPING ME WITH THIS MASSIVE PROJECT, BUT I WANT TO TOUCH EVERYBODY. AND CERTAINLY CHANNEL OF IS AOPPORTUNITY TO REACH PEOPLE. AND BEFORE WE GO ANY FURTHER THAT WE'RE TRYING TO DO, ONE OF THEM IS THAT WE HAVE A WEBSITE WITH A STREAMING VIDEO THAT WILL SHOW PEOPLE EXACTLY WHAT I SEWED SHOED YOU. AND THAT'S FIEWND UNDER ALL ONE WORD VOTETRAVISVOTE.ORG AND LOOK IT UP. THEY'LL PUSH THE BOT TON IN THE LOWER RIGHT-HAND SIDE OF THE SCREEN. THEY CAN WATCH IT AND LEARN HOW THE SYSTEM WORKS. CERTAINLY THE TRAVELLING SHOWS WEERMENT PLANNING TO DO A LOT OF COMMUNITY EVENTS. HIGHLAND MALL IS GOING TO CONTINUE TO BE HELPFUL TO US IN REACHING AS MANY PEOPLE AS WE CAN. THEY'RE GOING TO OFFER US THE OPPORTUNITY TO SET UP ON WEEKENDS AS WE GET CLOSER TO THE START OF EARLY VOTING. AND MAYOR, I THINK IT'S GOING TO BE IMPORTANT FOR IT TOSS A TWO-PRONGED EFFORT. I THINK WE NEED TO EDUCATE PEOPLE NOW TO GET THEM READY FOR EARLY VOTING, BUT THE WAY WE'RE IMPLEMENTING THIS SYSTEM IS TRAVIS COUNTY IS PLANNING TO USE THE EQUIPMENT FOR EARLY VOTING ONLY FOR NOVEMBER AND THEN MY PROPOSAL TO YOU WOULD BE WHEN IT COMES TIME TO DO THE CITY MAY ELECTIONS, THAT'S WHEN WE EXPAND IT TO BOTH EARLY VOTING AND ELECTION DAY. IT'S A NICE TRANSITION, IT GIVES PEOPLE SORT OF ONE LAST CHANCE TO WATCH IT IN OPERATION, TO GET COMFORTABLE, GET THEIR QUESTIONS ANSWERED, AND THEN SORT OF LIKE THE FIRST TIME WE VOTE WITH IT IS EARLY VOTING AND THEN THE VERY NEXT TIME OUR COMMUNITY VOTES IT'S THE WHOLE THING. SO I'M HOPING THEY CAN MAKE THAT TRAN SIG. BUT WE'RE GOING TO WANT TO HAVE ANOTHER BIG PUSH AT VOTER EDUCATION BETWEEN THE NOVEMBER ELECTION AND THE MAY CITY ELECTION.

MAYOR, IF I COULD ADD ONE COMMENT. THE SYSTEM'S BEEN USED EXTENSIVELY IN LOTS OF TEXAS. IN TEXAS IT'S BEING USED IN HARRIS COUNTY. IT'S BEEN USED IN SEVERAL LERKS CYCLES IN HARRIS COUNTY. IT'S ALSO BEEN USED IN FORT WORTH AND TARRANT COUNTY. IT'S BEEN USED IN COLORADO, WHICH IS OUTSIDE OF METRO DENVER, IT'S BEEN USED IN CLEVELAND. IT'S BEEN USED FOR PRIVATE SECTOR ELECTIONS. FOR EXAMPLE, WE JUST FINISHED USING THE MACHINES TO DO THE VOTING AT THE NAACP ANNUAL CON CONFERENCE IN HARRIS COUNTY. AND WHEN WE'VE DONE EXIT POLLING, THE RESULTS HAVE BEEN 97 OR 98% RATING THE SYSTEM EASY TO USE. WHAT WE FIND IS THAT RELUCTANCE GOES AWAY PRETTY QUICKLY. IT'S IN THE PROCESS OF ENTERING THE ACCESS CODE THAT BECOMES AN EDUCATIONAL EXERCISE IN ITSELF. PLUS THERE'S LOTS OF GRAPHICS TO HELP PEOPLE USE THE SYSTEM. WHAT WE FREQUENTLY HEAR IS PEOPLE EXPRESSING CONCERNS ABOUT SENIORS. AND WHAT WE FIND IS THEY TAKE TO THE SYSTEM VERY QUICKLY. SOMETIMES WE'LL SUGGEST IT'S LIKE USING A ROTARY TELEPHONE AND THAT TENDS TO GET A PRETTY QUICK RESPONSE. WHAT WE OFTEN FIND IS THAT PEOPLE ARE MORE CONCERNED ABOUT SENIORS USING THE SYSTEM THAN THE SENIORS THEMSELVES ARE ABOUT USING THE SYSTEM. WE'LL HAVE A SON OR A DAUGHTER SAY I CAN DO THIS FINE, BUT I DON'T THINK MY MOM OR DAD CAN. WHEN MOM AND DAD COME AND USE THE SYSTEM, IT'S NOT A PROBLEM IN THE LEAST. THE LEARNING CURVE ON THESE MACHINES IS VERY SHORT AND THE INTERACTION WITH IT IS VERY INTUITIVE AFTER SORT OF THE FIRST TOUCH.

MAYOR GARCIA: IS THERE A DROP IN VOTER TURNOUT IN THE FIRST ELECTION THAT THEY USED THESE AS COMPARED TO THE LAST ELECTION ON PAPER BALLOTS.

QUITE THE CONTRARY. IN HARRIS COUNTY, HARRIS COUNTY HAS NOT HAD THE SAME KIND OF EXPERIENCE WITH EARLY VOTING THAT TRAVIS COUNTY DOES. A MUCH SMALLER TURNOUT. WE WORKED THERE CLOSELY WITH THE COUNTY CLERK'S OFFICE AND THERE WAS A MASSIVE INCREASE IN TURNOUT IN EARLY VOTING TO USE THE SYSTEM. SO THERE'S ACTUALLY QUITE A BIT OF EXCITEMENT ABOUT USING THE SYSTEM. OTHER COMPANIES IN OTHER PLACES HAVE FOUND SIMILAR THINGS. THE OTHER INTERESTING THING ABOUT THESE SYSTEMS IS THE WAY THIS SYSTEM WORKS, AS YOU VOTE AND YOU COUNT EACH VOTE, THE SYSTEM AUTOMATICALLY MOVES YOU TO THE NEXT CONTEST IN THE BALLOT. AND WHEN WE'VE DONE COMPARISONS OF DOWN BALLOT VOTER PARTICIPATION ON THIS SYSTEM VERSUS OTHER KINDS, PEOPLE TEND TO VOTE FOR MORE RACES FURTHER DOWN THE BALLOTS WITHOUT LOSING THEIR ATTENTION THAN THEY DO IN OTHER WAYS OF VOTING. SO IF YOU'VE GOT JUDGES RACES OR OTHER RACES THAT ARE DOWN NEAR THE END OF THE BALLOT, WE HAVE A HIGHER PARTICIPATION RATE NEAR THE END THAN WE DO WITH OTHERS. SO THERE'S A LOT OF ADVANTAGES IN THAT REGARD.

THE COMMENTS THAT YOU HEARD WHEN WE WERE AT HIGHLAND MALL WAS ALONG THE LINES OF WOW, THIS IS REALLY EASY OR THIS IS REALLY COOL. PEOPLE LIKE IT.

MAYOR GARCIA: YEAH, THEY LIKED IT. AND THE ONE COMMENT THAT YOU ALREADY ADDRESSED WAS, I DON'T KNOW WHETHER MY PARENTS CAN USE THIS. THAT WAS MADE. THOSE WERE THE WORDS THAT WERE USED FOR THE OLDER FOLKS. AND I'LL REMIND THEM THAT I WAS IN THAT CATEGORY. [ LAUGHTER ] MY LAST QUESTION IS YOU TALK ABOUT THE REDUNDANCY. WHAT DO YOU USE THE THIRD ACCUMULATION OF DATA? IS THAT TO DO AN AUDIT, MAKE SURE THAT --

THERE'S SEVERAL ANSWERS TO THAT. THE VOTE IS STORED HERE, AS DANA SAID. IT'S ALSO STORED ON FLASH MEMORY HERE AND IT'S STORED ON THE CARD. THE CARD IS THE PRIMARY MECHANISM FOR READING THE VOTES, BUT IN SOMEONE WANTED A RECOUNT, FOR EXAMPLE, ONE WAY OF DOING A RECOUNT IS TO GO BACK TO THE INDIVIDUAL VOTING MACHINE, TAKE THE DATA OFF OF EACH INDIVIDUAL MACHINE AND THEN TOTAL UP THE VOTES FROM EACH INDIVIDUAL MACHINE AND MAKE SURE IT TOABLGHTSS UP TO THE VOTES FOR THAT VOTING PLACE AND SEE IF THE VOTE TOTALS MATCH FOR COUNTY WIDE. THAT'S ONE ANSWER, YOU USE IT FOR CROSS CHECKS OR VALUE LA ADDITION IN THE EVENT OF A RECOUNT. THE SECOND POINT IS IN THE EVENT OF A SYSTEM MALFUNCTION, THERE'S NOT MUCH HISTORY OF THAT, BUT IF THERE WERE TO OCCUR, IF SOMETHING MEL FEL ON THIS MACHINE AND CRUSHED IT, THE VOTES WOULD BE HERE. IF THIS MACHINE WAS BEING TRANSPORTED TO ELECTION HEADQUARTERS OR TO THE SUBSTATION WITH THE CARD IN IT AND HEAVEN FORBID SOMETHING HAPPENS TO THE TRANSPORTATION, THERE'S A WRECK OR SOMETHING HAPPENS TO THE MACHINE, THE VOTES WOULD BE INTACT HERE. SO THE IDEA IS TO CREATE MULTIPLE, IN THIS CASE THREE, TRIPLICATE, PHYSICALLY SEPARATED STORAGE LOCATIONS SO THAT YOU'VE JUST GOT AN EXTRA MEASURE OF PROTECTION.

IF I MAY ADD TO THAT. WHEN WE WENT THROUGH -- WHEN THIS EQUIPMENT WENT THROUGH ITS RIGOROUS TESTING I DID RECOUNTS BOTH WAYS. I DID -- ACTUALLY, ALL THREE DIFFERENT WAYS. I USED THE FLASH CARD RECOUNT, THE FLASH MEMORY RECOUNT AND THIS, AND WE PRINTED IT OUT ON A PAPER BALLOT AND HAND TALLIED IT. SO I'VE DONE IT ALL DIFFERENT WAYS. AND A FEW YEARS AGO I HELPED WRITE THE LAW THAT SAYS THAT A FIRST TIME A JURISDICTION USES AN ELECTRONIC VOTING SYSTEM, YOU MUST CONDUCT A RECOUNT. AND PART OF THE POLICY DECISION IS, WELL, WHAT WAY WOULD THE COUNCIL WANT TO HAVE THEIRS DONE? THERE'S LOTS OF DIFFERENT WAYS TO DO IT.

MAYOR GARCIA: COUNCILMEMBER SLUSHER?

SLUSHER: YES. WHAT DIDWHAT ABOUT THE OLD-FASHIONED NUMBERS THAT WHEN YOU HAVE THE BALLOTS, EVEN THOUGH THEY'RE COUNTED ELECTRONICALLY, IF THERE WERE ANY QUESTIONS, YOU COULD GO BACK AND GET THE PAPER BALLOTS THAT HAVE BEEN MARKED AND YOU'RE NOT GOING TO HAVE ANYTHING.

WE DO HAVE THAT. IN FACT, THAT'S EXACTLY HOW I DID THE RECOUNT THE LAST TIME WE TESTED THE SYSTEM IN TRAVIS COUNTY. BY THE WAY, WE'VE BEEN THROUGH THREE TESTS FOR ELECTRONIC VOTING SYSTEMS OVER THE LAST FEW YEARS JUST TO GET COMFORTABLE AND LEARN WHAT WAS BEST FOR US. BUT THE WAY I DID IT WAS I PRINTED OUT -- THE FACE OF EACH BALLOT CAN BE SAVED AND YOU PRINT IT OUT AND IT HAS JUST THE CHOICES THAT THAT PARTICULAR VOTER MADE. NOW, LET ME BE VERY CLEAR THAT THEY'RE SCRAMBLED. THEY'RE RANDOMIZED WHEN YOU START TO PRINT THEM OUT. YOU WOULDN'T BE ABLE TO TAKE A STACK OF THESE PRINTED PAPER BALLOTS AND MATCH IT UP TO A LIST OF VOTERS AND FIGURE OUT WHO VOTED WHERE. THEY'RE MIXED UP, THEY'RE SCRAMBLED IN THERE. BUT IT WILL PRINT OUT THE INDIVIDUAL FACE OF EACH ONE, SO IT'S POSSIBLE FOR YOU TO GO IN AND SELECT PERHAPS A SIMPLE WILLING ING A PARTICULAR CANDIDATE AND HAVE HAND TALLY TEAMS WHICH ARE PRESCRIBED BY STATE LAW RIGHT NOW. THAT'S THE WAY I DID IT IN THE PAST. AS WE GET MORE CONFIDENT ABOUT THE WAY THESE SYSTEMS STORE MEMORY, I THINK WE'LL PROBABLY MOVE AWAY FROM THE PAPER BALLOT, BUT THE REALITY IS IT DOES HAVE A PAPER TRIAL. THAT'S ONE OF THE REASONS WHY THE TASKFORCE LIKED THIS SYSTEM IS BECAUSE IT WILL PRINT OUT A PAPER BALLOT THAT'S VERY EASY TO HAND TALLY. THE OTHER THING IS THAT VOTERS GET TO LEAVE THE PRECINCT WITH A RECEIPT. THAT'S MORE THAN THEY HAVE RIGHT NOW. IT IS POSSIBLE, AND ONCE AGAIN, I DON'T WANT ANYBODY TO THINK THAT THERE'S ANY CONNECTION BETWEEN A PARTICULAR BALLOT AND A PARTICULAR VOTER. THERE'S NO WAY I CAN ASSOCIATE THAT. BUT PART OF THE TEST THE TASKFORCE DID WAS WE WENT BACK AND WE TOOK THESE ACCESS CODES AND WE WENT BACK AND WE SAID OKAY, MY ACCESS CODE SAYS FOR THIS PARTICULAR NUMBER AT THAT PARTICULAR DATE AND TIME IT SAYS THERE SHOULD BE A BALLOT IN THERE THAT MATCHES THAT INFORMATION. WE WENT BACK AND CONFIRMED THAT FOR ALL THE TASKFORCE MEMBERS. IT WAS PART OF OUR AUDIT BEFORE WE BOUGHT THE SYSTEM. YOU ACTUALLY DO HAVE A RECEIPT.

SLUSHER: BUT I STILL DON'T SEE HOW YOU CAN PRINT OUT WHAT WAS IN THERE, BUT SUPPOSE THE NSMS WAS ENTERED BY SOMEONE OTHER THAN THE VOTER.

A HACKER?

SLUSHER: A HACKER OR JUST FRAUD WITH SOMEBODY THAT OBTAINED THE ELECTION CODE.

WE'RE GOING TO ANSWER THOSE QUESTIONS A LOT. THOSE ARE GOOD QUESTIONS. FIRST OF ALL, HACK WHAT? THIS IS A CALCULATOR. ALL IT IS IS IT'S PLUGGED INTO THIS. THERE ISN'T ANY INTERNET, THERE ISN'T ANY NETWORK. HOW CAN YOU HACK A CALCULATOR OR A GAME BOY?

WELL, AN ELECTION JUDGE --

SAT THERE AND GENERATED CODES AND THEN CAME OVER AND VOTED THEM. FIRST OF ALL, THEY COULD DO THAT RIGHT NOW WITH A PAPER BALLOT SYSTEM WITH A LOT LESS AUDITING. YOU KNOW EACH TIME SOMEBODY VOTES ON THIS SYSTEM. YOU KNOW EXACTLY THE MINUTE AND THE SECOND. WOULD YOU LIKE TO SEE THIS LITTLE CODE? PERHAPS I COULD PASS IT AROUND. IT WILL TELL YOU DOWN TO THE INK SUBSET OF SECONDS WHEN IT WAS DONE, SO YOU CAN TELL WHEN SOMEBODY IS ADDING UP A BUNCH OF THOSE ONE RIGHT AFTER THE OTHER. SO IT'S A LOT EASIER TO DETECT PATTERNS OF ABUSE IN THESE KINDS OF SYSTEMS THAN WITH THE CURRENT PAPER BALLOT SYSTEM THAT WE HAVE RIGHT NOW. AND WE STILL DO AUDIT THIS SYSTEM AGAINST THE LIST OF REGISTERED VOTERS. AND SO THE SAME DOUBLE-CHECKS APPLY FOR THIS AS WOULD APPLY TO A PAPER BALLOT RIGHT NOW. AND WHEN YOU'RE DOING THAT KIND OF INVESTIGATIVE FORENSICS, YOU LOOK FOR SIMILAR HANDWRITING AND THAT SORT OF THING. AND WE HEAR A LOT ABOUT STUFFING THE BALLOT BOX, LIKE DUVAL COUNTY, BUT I THINK ONE THING OUR VOTERS DON'T REALIZE, IS THERE ARE MANY, MANY MORE CONTROLS TODAY THAN EXISTED BACK IN 1940. AND THESE OFFER EVEN MORE.

SLUSHER: SO YOU CAN RESIST MORE -- I'M GOING TO NEED A LITTLE BIT MORE ASSURANCE ON IT MYSELF. MAYBE I'M JUST OLD-FASHIONED.

WELL, THE CONCERNS YOU HAVE ARE THE SAME WITH PAPER BALLOTS. THIS ISN'T SPECIAL OR DIFFERENT.

SLUSHER: I GUESS THE KEY DIFFERENCE, THOUGH, IS A PAPER BALLOT YOU CAN GO BACK AND LOOK AT WHAT THE VOTER ACTUALLY DID?

SO CAN YOU HEAR?

SLUSHER: NOT REALLY. BECAUSE IT'S BEING DONE ELECTRONICALLY SO THEY'RE NOT MARKING DOWN.

I WOULD RESPECTFULLY DISAGREE WITH YOU AND HERE'S WHY. WE'RE SORT OF TALKING ABOUT WORST CASE SCENARIOS. THIS PRESERVES ONLY WHAT THE VOTER VOTED. HEAVEN FORBID THAT WE WOULD EVER HAVE A SITUATION LIKE THIS, BUT THERE COULD BE A POSSIBILITY WITH A PAPER BOX ELECTION THAT A JUDGE WOULD IN A PRECINCT AUDIT SITUATION OPEN UP THE BALLOT BOX AND FOR VOTES THAT THAT PARTICULAR JUDGE DIDN'T AGREE WITH YOU COULD COLOR IN AN EXTRA BUBBLE, VAN OVERVOTE AND EFFECTIVELY CANCEL THAT VOTER'S VOTE. YOU HAVE THE -- THE VOTER DIDN'T GET A CHANCE TO SEE THEIR BALLOT AT THE END. I MEAN, IF YOU'RE TALKING ABOUT ABUSES, THERE ARE MORE ABUSES ON THE PAPER BALLOT SIDE THAN WITH THESE KINDS OF SYSTEMS, THE POTENTIAL FOR IT. WE'VE NOT HAD THOSE KINDS OF SITUATIONS HERE, PARTLY BECAUSE IT TAKES A LOT OF COLLUSION AND HANG CAN I PANG CAN I THAT IN A POLLING PLACE EVERYBODY IS WATCHING EVERYBODY OF THE IT'S ACTUALLY HARD TO ACCOMPLISH THAT KIND OF THING IN THE SAFE HAVEN OF A POLLING PLACE. COLLUSION -- WHAT OUR POLICE OFFICERS WILL TELL YOU IS COLLUSION IS THE FIRST THING TO BREAK DOWN WHENEVER ANYTHING GOES WRONG OR GETS DISCOVERED. PART OF -- AND THIS IS KIND OF A LITTLE KNOWN FACT THAT I GUESS I DON'T MIND SHARING IT. ONE OF THE DOUBLE CHECKS THAT WE DO RIGHT NOW IS I LOOK FOR PATTERNS WHEN I PRODUCE ELECTION RESULTS ABOUT HIGH INCIDENTS OF OVERVOTES, BECAUSE THOSE ARE CLUES THAT YOU'VE GOT A PROBLEM. AND I HAVE GONE BACK AND INVESTIGATED PRECINCTS WHERE I THOUGHT THAT OVERVOTE WAS MAYBE A BIT ON THE HIGH SIDE AND WAS THERE ANY PATTERN WITH THE OVERVOTING. I'VE NEVER FOUND ANYTHING, BUT IT'S NOT BECAUSE WE DON'T CHECK.

COUNCILMEMBER, IF I COULD ALSO ADD TO THAT, WHEN THE SYSTEM IS BEING USED, THERE'S A NUMBER OF THINGS THAT OCCUR THAT SURROUND THE SYSTEM. FOR EXAMPLE, BEFORE AND AFTER EVERY ELECTION THERE'S WHAT'S CALLED A LOGIC AND ACCURACY TEST. AND THE LOGIC AND ACCURACY TEST IS ENTERING DATA INTO THE SYSTEM THAT YOU KNOW THE OUTCOME OF AND THEN COMPARING THE RESULTS THAT THE SYSTEM RECORDS OR REPORTS WITH YOUR KNOWN OUTCOME OF DATA, SO YOU MAKE SURE IT'S TABULATING CORRECTLY. YOU DO THAT BEFORE AND AFTER TO MAKE SURE NOTHING IS ALTERED. ANOTHER PROTECTION THAT OCCURS IN THIS PARTICULAR SYSTEM, UNLIKE SOME OTHERS, THERE'S NO DEVICE THAT THE VOTER INSERTS. THERE'S NOT A SMART CARD OR ANYTHING ELSE THAT COULD PERHAPS IMPLANT SOMETHING INTO THE SYSTEM IN ANY WAY. AND THE CLERK'S OFFICE IN PREPARING FOR THE ELECTION DOES NO PROGRAMMING. THE SOURCE CODE OF THIS SYSTEM IS ON AN ESCROW WITH THE SECRETARY OF STATE'S IS IT THAT ACTUALLY IS ACCESSIBLE TO OR -- IS NOT ACCESSIBLE TO ANYONE WHO TABULATES. ALL THAT'S DONE IS DATA. IT'S LIKENTERING A FILE MAKER PROGRAM. SO THERE ARE A NUMBER OF PROTECTIONS TO AVOID PRECISELY WHAT YOU'RE TALKING ABOUT. AND ULTIMATELY THE VALUE LA ADDITION OF THE VOTE OCCURS THROUGH THE SUMLY SCREEN THAT THE VOTER CAN EXPLORE.

I'M PRETTY PARANOID TOO ABOUT MAKING SURE ELECTIONS ARE FREE AND FAIR. I'VE WORKED IN A LOT OF COUNTRIES AND I'VE SEEN SOME MAJOR MISCHIEF GOING ON IN SOME PLACES, THE SERBIAN ELECTION, FOR EXAMPLE. WE DON'T HAVE THOSE KIND OF PROBLEMS HERE, BUT IT DOESN'T MEAN WE EVER DROP OUR JIJ VIGILANCE. WE WANT TO BE ABLE TO ANSWER THOSE QUESTIONS. AND IF WE'VE EVER HAD ANY PROBLEM WITH ANYTHING, WE HAVE HAD A SYSTEM THAT WOULD PROVE EXACTLY WHAT IT WAS, NOT ONLY SO IT WOULD PREVENT ANY WRONG DOERS -- YOU NEVER DROP YOUR GUARD.

MAYOR GARCIA: FURTHER QUESTIONS, MAYOR PRO TEM.

GOODMAN: [ INAUDIBLE ] THAT THERE ARE OTHER ELECTIONS AS WELL. IS THIS ABLE THEN TO BE PROGRAMMED INDIVIDUALLY FOR THE PRECINCT IN QUESTION. AND SPEAKING OF WILLIAMSON COUNTY, SHOULD WE GO UP AND SHOW THEM WHAT YOU'RE CONSIDERING SO THAT THEY MIGHT BE THE OPPORTUNITY TO SAY, WELL, IF YOU'RE GOING TO DO SOMETHING, IT SHOULD BE THE SAME OR AT LEAST COMPATIBLE.

JOHN KNOWS WHAT I'M DOING. YOU'RE PERFECTLY ABLE TO CALL THEM AND TELL THEM THAT THIS IS A GOOD IDEA.

GOODMAN: I MEAN TO THE COUNCIL OR THE POLICYMAKERS.

SOUND LIKE A GOOD IDEA TO ME. THAT WOULD BE THEIR COMMUNITY'S DECISION. NOW, BACK TO YOUR FIRST QUESTION, THOUGH. I'M SORRY, WOULD YOU REFRESH ME AGAIN. THE PRECINCTS?

THE THE SPRITS.

LIT PRECINCTS ARE COMPLICATED. YOU WANT TO MAKE SURE YOU GET IT RIGHT ON THE BALLOT AND FIGURING OUT EXACTLY WHERE THE STREETS GO IN AND ON ON THE ELECTION. IT'S TEDIOUS AND WE SPEND A LOT OF TIME GOING OVER AND DOUBLE-CHECKING AND DOUBLE-CHECK. BUT EVEN THE BEST LAID PLANS AND THE MOST PERFECT EXECUTION OF SPLITTING UP THOSE PRECINCTS AND FIGURING WHO IS IN AND OUT OF JURISDICTION CAN GO AWRY WITH AN ELECTION JUDGE AND THE ELECTION JUDGE HANDS A THE WRONG PIECE OF PAPER TOAFERB. WHAT THESE DO IS TAKE OUT THAT ELEMENT OF ERROR, JUST HUMAN ERROR ON THE PART OF THE JUDGE. SO WHAT WE WILL PROBABLY SEE IS AN EASY YES EASIER WAY FOR US TO DEAL WITH THE SPLITS. THIS WILL HOLD 10,000 BALLOT FORMATS, SO I CAN'T IMAGINE THAT WE WOULD EVER GET SO LARGE THAT WE WOULD EVER DO THAT. WE'RE WELL WITHIN OUR CAPACITY. AND THE WAY THESE SYSTEMS ARE DESIGNED, THEY'RE DESIGNED FOR THE LOWER END UP. SO ONCE YOU SET THE BOUNDARY LINES OF WITHIN A PARTICULAR PRECINCT, THEN THAT CARRIES TO THE NEXT LEVEL FOR THE TOTAL CITY AND THEN THAT GOES FOR THE WILLIAMSON COUNTY PART OF IT. SO ONCE YOU GOT IT CORRECT ONCE, YOU DON'T HAVE TO WORRY ABOUT AN ERROR POPPING UP SOMEPLACE ELSE. IT USE THE SAME DATA AS YOU USE UPWARDS.

GOODMAN: WHEN WE GET THE RESULTS, WILL WE KNOW PRECINCT BY PRECINCT AT THE SAME TIME AS WE KNOW THAT THE VOTES ARE IN?

LET ME TAKE THE SECOND ONE FIRST. YOU GET TO 69 DESIGN YOUR OWN REPORT FORMAT. I'M ANTICIPATING THAT DIFFERENT JURISDICTIONS MIGHT WANT DIFFERENT PIECES OF INFORMATION. SO PART OF OUR INTERLOCAL AGREEMENT WITH WHERE WE WORK ON THAT MEAN NEW OF THINGS IS YOU MAY WANT TO RESERVE FOR YOURSELF THE SPECIFICS FOR THE FORMAT FOR YOUR ELECTION RESULTS. WHAT'S THE BIGGEST RISK? HOW CAN VOTERS MESS THIS UP? THAT'S A VERY GOOD QUESTION. THERE'S TWO THINGS VOTERS MIGHT DO. ONE OF THEM IS THEY NAVIGATE THROUGH THE WHOLE BAT LOT, MAKE ALL THEIR CHOICES AND THEN THEY WALK OFF WITHOUT TOUCHING THE CAST BALLOT BUTTON, SO THEIR VOTE IS SITTING THERE, BUT IT WASN'T DROPPED INTO THE BALLOT BOX. WE HAVE A TERM FOR THAT. FLEEING VOTER. WE HAD THAT HAPPEN WITH PAPER BALLOT SYSTEMS RIGHT NOW. THIS HELPS US PREVENT THAT FROM HAPPENING BECAUSE WHAT HAPPENS IS THAT ANY TIME ONE OF THE BOOTHS IS OCCUPIED, THERE ARE THESE LITTLE LIGHTS AND THERE CAN BE UP TO 12 VOTING BOOTHS ASSOCIATED WITH ONE OF THESE JUDGE'S CONTROLLER BOXES. AND THE LITTLE LIGHT IS GREEN WHEN THE BOOTH IS OPEN AND IT'S READ WHEN SOMEBODY IS IS IN THE FLOOTH BOOTH AND IT'S FLASHING WHEN SOMEBODY NEEDS HELP. SO IT TELLS THE JUDGE WITHOUT INVADING ANYBODY'S PRIVACY, THIS TELLS THE JUDGE EXACT EXACTLY WHAT'S GOING ON IN THE BOOTH. SO THE JUDGE LOOKS DOWN AND THEY SAY BOOTH NUMBER 3 IS STILL RED AND I SEE THAT VOTER WALKING OUT THE DOOR. EXCUSE ME, MA'AM, COULD I TALK TO YOU FOR A MINUTE? I BELIEVE YOU HAVE FAILED TO DROP YOUR BALLOT IN THE BALLOT BOX. WOULD YOU LIKE TO GO BACK AND PUSH THE RED BUTTON. SO THIS HAS BETTER WAYS OF TELLING US THAT KIND OF PROBLEM. WHAT YOU WOULD FIND IS WE WOULD STILL HAVE IT, IT WOULDN'T BE PUT INTO THE TOTALS, AND THERE WOULD BE A RECORD OF A VOTE THAT WAS -- AN ACCESS CODE GOT ISSUED AND A BALLOT GOT MARKED, BUT IT WASN'T DROPPED IN. IT KEEPS TRACK OF THAT INFORMATION. THE SECOND MOST LIKELY MISTAKE THAT A VOTER COULD MAKE IS THEY WALK UP TO THE SYSTEM AND THEY TURN IT ON AND THE FIRST THING THEY DO WHEN THEY MAKE THEIR FIRST ELECTION IS IS THEY HIT THE CAST BALLOT BUTTON. THEY'VE JUST DROPPED THEIR BALLOT INTO THE BOX. NO. WHAT THIS SYSTEM WILL DO IS IT HAS A WARNING SCREEN THAT COMES UP, WARNING VOTER, YOU ARE ABOUT TO CAST A BLANK BALLOT. IS THAT REALLY WHAT YOU WANT TO DO? AND THEN IT GOES -- PUTS YOU THROUGH A LITTLE EDUCATION SCREEN AGAIN THAT TELLS YOU WHAT THE BUTTONS ARE FOR AND THEN ONCE AGAIN THERE'S A HELP BUTTON ON HERE THAT IF YOU PUT THAT, THEN THIS BLINKS AND THE JUDGE KNOWS TO GO OVER AND PROVIDE ASSISTANCE TO THE VOTER. SO IN SOME WAYS THE VOTERS CAN MAKE MISTAKES WITH THESE SYSTEMS, BUT IT'S THE -- IT THE SAME KINDS OF MISTAKES THEY WOULD MAKE WITH THE PAPER BALLOT SYSTEM WITH BETTER WAYS OF TRYING TO PREVENT THEM FROM LEAVING BEFORE THEY ACTUALLY MAKE THAT MISTAKE.

GOODMAN: SO IT WOULD TELL YOU THAT IF YOU HIT THE RED BUTTON BEFORE GOING THROUGH IT AND YOU WOULD HAVE THE OPPORTUNITY TO UNDO IT?

ABSOLUTELY. GO BACK AND DO IT CORRECTLY OR ASK FOR HELP OR REVIEW WHAT THE BUTTONS ARE FOR, ALL OF THAT. BECAUSE THAT WOULD BE THE FIRST THING YOU WOULD THINK OF IS LIKE OKAY, WE PUSH THE CAST BALLOT BUTTON AND I LOST MY RIGHT TO VOTE BECAUSE I DID VOTE, I JUST DIDN'T MAKE ANY CHOICES. SO WE WANTED TO PREVENT THAT. IT PREVENTS THAT AND THEN THE VOTER FLEE WITH THIS BUTTONS. AND SOME VIGILANCE ON THE PART OF OUR ELECTION JUDGES. THEY WILL HAVE TO LEARN HOW TO MAKE THIS WORK TOO. ALSO IF YOU SEE SOMEBODY IN A VOTING BOOTH AND YOU HAVE A GREEN LIGHT ON AND THEY'VE BEEN IN THERE A LONG TIME, YOU KNOW, YOU MIGHT OFFER THEM SOME ASSISTANCE. PERHAPS IT'S A LITERACY ISSUE. PERHAPS THEY'RE JUST FRIGHTENED OF THE MACHINE AND NEED JUST A LITTLE MORE EDUCATION. AND WE'RE WORKING ON POLLING PLACE ETIQUETTE TOO FOR HOW DO YOU OFFER ASSISTANCE TO PEOPLE WITHOUT INTRUDING ON THEIR PRIVACY.

GOODMAN: IS THERE A CHOICE FOR A NO VOTE ON A SPECIFIC RACE?

UH-HUH. INDIVIDUALLY OR THE WHOLE BALLOT.

WHEN YOU FAIL TO VOTE -- WHEN YOU FAIL TO VOTE IN A PARTICULAR RACE, THE SUMMARY SCREEN WILL TELL YOU YOU MADE NO SELECTION AND IT'S YOUR RIGHT TO LEAVE IT THAT WAY. BUT IF YOU MISSED IT BY ACCIDENT, THEN YOU GO BACK AND FIX IT.

AND IT'S IN A DIFFERENT COLOR WHEN IT SAYS NO SELECTION.

GOODMAN: I'M JUST WONDERING HOW IT ROLLED OVER FROM RACE TO RACE. IF IT WAITED FOR YOU TO VOTE OR IF YOU DON'T WANT TO VOTE FOR ANYBODY, YOU HAVE TO PRESS SOMETHING AND CHOOSE THAT YOU'RE NOT VOTING. [ONE MOMENT, PLEASE, FOR CHANGE IN CAPTIONERS]

[11:00 A.M]

...I WANT IT TO BE FAIR AND I WANT IT TO BE REASONABLE AND GIVE YOU AN INCENTIVE TO PARTICIPATE.

MAYOR GARCIA: THERE WILL BE AN ELECTION IN NOVEMBER THAT YOU WILL BE USING THIS ONE.

YES, SIR, FOR EARLY VOTING.

MAYOR GARCIA: THE FIRST TIME THE CITY WILL PARTICIPATE IS NEXT MAY WHEN THE COUNCIL ELECTS. THANK YOU.

THANK YOU, COUNCIL, FOR YOUR TIME.

MAYOR GARCIA: THANK YOU.

FUTRELL: WE'RE GOING TO QUICKLY BREAK DOWN.

MAYOR GARCIA: MAYOR PRO~TEM, WE'RE GOING TO PICK UP THE BRIEFING FOR THE COMMUNITY TECHNOLOGY TRAINING CENTER, PROGRAMS AND SUCCESSES. WE HAVE ABOUT ONE MORE HOUR LEFT IN THE SESSION, AND WE HAVE TWO ELECTRIC UTILITY ITEMS, ONE EXECUTIVE SESSION ITEM AND ONE BRIEFING ON THE FINANCIAL AND GENERAL MANAGER'S REPORT. SO JOHN, CAN YOU DO IT IN 15 MINUTES?

YOU GOT IT.

MAYOR GARCIA: WELCOME, MR. TRUSTEE. ARE YOU THE VICE PRESIDENT?

I AM THE AT-LARGE MEMBER. I AM NOT THE VICE PRESIDENT.

MAYOR GARCIA: WELCOME. MAYOR PRO~TEM, DO YOU WANT TO MAKE SOME COMMENTS.

GOODMAN: WELL, ESPECIALLY IN A DOWN ECONOMY WE ALL NEED TO KNOW WHAT KIND OF THINGS EVERYBODY IS DOING, ESPECIALLY THAT WE HELP SPONSOR, THAT CONTRIBUTING TO THE SUCCESS WE CAN LOOK AT AT A TIME LIKE THIS. AND ESPECIALLY IN THE REALMS OF TECHNOLOGY AS DANA JUST TALKED ABOUT, TO UNDERSTAND AND UNDERSTAND WHAT TECHNOLOGY CAN DO FOR YOU IN YOUR DAILY LIFE IS CRITICAL TO ALL OF US. THE DIGITAL DIVIDE IS NOT QUITE AS BROAD BECAUSE OF CTC AND THE FINE FOLKS THAT MAKE SURE THEY TOUCH AS MANY OF THE CITIZENS AS THEY CAN.

THANK YOU, MAYOR PRO~TEM. AND IT WAS NEAT TO HEAR THE PRESENTATION BEFORE US BECAUSE I THINK THERE IS A DIRECT CORRELATION TO WHAT WE DO. I WANT TO INTRODUCE MY COLLEAGUES. DR. HANNA GURGIE, THE MANAGING DIRECTOR, AND MR. L. G. SMITH, DIRECTOR OF OPERATIONS. I WANT TO QUICKLY SORT OF POINT YOU TO THAT FIRST SCREEN TO SEE THE PARTNERS THAT WE'VE DEVELOPED OVER THE LAST THREE YEARS. STARTING IN THE UPPER RIGHT, THE CITY OF AUSTIN, WHICH THREE YEARS AGO PROVIDED 100% OF THE FUNDING FOR THIS PROGRAM. 2 YOU WILL BE HAPPY TO KNOW, MAYOR GARCIA, IT'S NOW ABOUT 35%, SO THAT'S BEEN A PRETTY GOOD CHANGE.

MAYOR GARCIA: LEVERAGEABILITY.

DELL, WE'VE GOT TWO SIDES OF DELL, BOTH DELL COMPUTER CORPORATION AND THE MICHAEL AND SUSAN DELL, THE PRIVATE FOUNDATION. AUSTIN INDEPENDENT SCHOOL DISTRICT PROVIDES 15 CLASSROOMS AND 200 COMPUTERS, SO THAT'S A PRETTY SIGNIFICANT IN-KIND CONTRIBUTION. THE U.S. DEPARTMENT OF EDUCATION, AND JOINING YOU THIS YEAR, THANKS TO JUDGE SAM BISCOE, TRAVIS COUNTY IS SUPPORTING THIS PROGRAM, AND THE SBC FOUNDATION. THE NEXT SLIDE REALLY SHOWS THE DUAL MISSION OF THIS PROGRAM. THE PRIMARY IS TO TRAIN PEOPLE IN COMPUTER SKILLS, JOB TRAINING, AND ALSO BUILD INFRASTRUCTURE, BUILD HARDWARE, SOFTWARE AND I.T. INFRASTRUCTURE IN SCHOOLS. IT'S A DOUBLE BANG FOR THE BUCK FOR THE TAXPAYERS BECAUSE IT'S THE CITY AND AUSTIN INDEPENDENT SCHOOL DISTRICT WORKING TOGETHER. WE OPEN UP CLASSROOMS AT TWO LOW-INCOME HIGH SCHOOLS AT TRAVIS AND REAGAN HIGH SCHOOL MONDAY THROUGH THURSDAY 5:30 TO 9:00 AND SATURDAY ON THE WEEKENDS. AND WE'RE HERE TO GIVE YOU AN UPDATE AND SAY THANK YOU. WE'VE HAD GREAT SUPPORT AT THE COUNCIL LEVEL. WE'VE HAD WONDERFUL SUPPORT FROM THE TELECOM COMMISSION, AND I WANT TO BE SURE TO MENTION RUNDELLA HAWKINS AND THEIR STAFF FOR THEIR WONDERFUL JOB OF BEING BOTH TOUGH PROGRAM MANAGERS AS WELL AS PARTNERS. WITH THAT I'M GOING TO HANDLED IT OFF TO MR. L. J. SMITH.

GOOD MORNING. PART OF MY JOB TODAY IS TO GIVE YOU A BRIEF HISTORY AND UPDATE HOW THE PROGRAM WAS STARTED AND WHERE WE ARE TODAY. AS MOST OF YOU KNOW, WE STARTED OFF WITH AN R.F.P. PROCESS THAT WAS STARTED IN 1997 AND IN 1998. IN 1998 WE WERE AWARDED AN R.F.P. TO START THE WORK WE'RE CURRENTLY DOING AT TRAVIS HIGH SCHOOL. IN '99 IS WHEN OUR FIRST LABS WERE OPEN. WE ARE TEACHING CLASSES IN ENGLISH AND SPANISH WITH A GREAT ORIENTATION PROCESS AND A LIST OF PARTICIPANTS WAITING TO GET INTO OUR PROGRAM. IN 2000 WE WERE AWARDED THE DEPARTMENT OF EDUCATION GRANT TO EXPAND OUR PROGRAM TO REAGAN. SO CURRENTLY WE DO NOW HAVE TWO PROGRAMS, BOTH OFFERING A WIDE RANGE OF TECHNOLOGY PROGRAMS FROM THE BEGINNER WHO JUST WANTS TO LEARN HOW TO DO MASSING AND KEYBOARDING ALL THE WAY UP TO ADVANCED COURSES IN 3 LENIX AND POWER POINT TO MAKE SURE WE'RE COVERING ALL ASPECTS OF TRAINING. ALSO WE WERE ABLE TO PARTNER WITH A LOT OF OTHER NONPROFIT ORGANIZATIONS SUCH AS NOBILITY, WHO HELPS US ADDRESS THE ISSUES WITH PEOPLE WITH DISABILITIES. AUSTIN COMMUNITY, AUSTIN FREE NET, THROUGH OUR COLLABORATION WITH THEM -- AND ALSO WITH THE UNIVERSITY OF TEXAS WHO ALSO DOES ALL OF OUR EVALUATION OF THE PROGRAM. 1991, WE OFFICIALLY OPENED AT REAGAN. AGAIN, AT REAGAN WE WERE JUST WANTING TO MAKE SURE WE BROADEN OUR OUTREACH. WE WANTED TO MAKE SURE WE HAVE FACILITIES LOCATED ALL AROUND THE CITY SO THAT WE'RE NOT LEAVING ANYONE BEHIND. WE WANT TO MAKE SURE WE'RE OFFERING CLASSES AND WE'RE MAKING SURE THAT EVERYONE HAS THE OPPORTUNITY TO TAKE ADVANTAGE OF TECHNOLOGY BECAUSE WE KNOW THAT IN TODAY'S ECONOMY, IN TODAY'S MARKETPLACE, PEOPLE NEED THOSE TYPES OF SKILLS TO EVEN JUST GET IN THE DOOR FOR EMPLOYMENT AND TO ALSO ADVANCE ON THOSE PROGRAMS AS THEY CURRENTLY HAVE. ONE THING THAT SETS US APART FROM OTHER PROGRAMS IS THAT OUR PROGRAM IS TRUTHFULLY ADULT BASED. ONE OF THE THINGS THAT YOU DON'T SEE A LOT OF THESE DAYS ARE PEOPLE WHO ARE OFFERING FUNDS OR PROGRAMS THAT ARE ACTUALLY OUT TOUCHING OUR ADULT BASE LEARNERS. A LOT OF THINGS WE SEE THESE DAYS ARE ALL FOCUSED ON K THROUGH 12. ONE OF THE THINGS WE DO IS FOCUS ON THE ADULT-BASED LEARNERS. THAT IS OUR MAIN FOCUS OF OUR PROGRAMS, TO MAKE SURE THAT WE'RE GETTING ADULTS THE TRAINING THAT THEY NEED TO BETTER THEMSELVES NOT ONLY ECONOMICALLY BUT ALSO EDUCATIONALLY. AND THAT'S ONE OF THE THINGS WE MAKE SURE WE INSTILL IN ALL OUR CLASSES, WE MAKE SURE EVERYONE IS ON BOARD AND MOVING FORWARD WITH THEIR TECHNOLOGY SKILLS. CORPORATE SUPPORT. FROM THE INCEPTION, WE'VE HAD SUPPORT OF A LOT OF LOCAL BUSINESSES. FROM 3-M, AMD, ACROSS THE BOARD. AND NOT ONLY HAS IT BEEN MONETARILY, BUT IT'S ALSO BEEN IN-KIND SUPPORT AS FAR AS HELPING WITH TECHNOLOGY NEEDS. ANYWHERE FROM ENGINEERING NETWORKS TO SOFTWARE APPLICATIONS TO JUST MANUAL LABOR TO ALL TYPES OF VOLUNTEERING AND MENTORING. WE HAVE REALLY HAD THE COMMUNITY SUPPORT FROM OUR 4 LOCAL BUSINESSES AND CORPORATIONS IN HELPING DEVELOP THIS PROGRAM. IT HAS REALLY HELPED US TO DEVELOP A STATE-OF-THE-ART PROGRAM. SOME OF THE THINGS WE'RE ABLE TO TO DO AT THE SCHOOL LEVEL AS FAR AS SOME OF THE INFRASTRUCTURE AS FAR AS TECHNOLOGY, WE'VE BEEN ABLE TO PUT IN HIGH-SPEED NETWORKS, THE LATEST SOFTWARE SO THAT OUR KIDS ARE ALSO INCREASING THEIR TECHNOLOGY SKILLS ON THOSE CAMPUSES BECAUSE, AS JOHN MENTIONED EARLIER, IT'S THAT DOUBLE BANG FOR THE COMMUNITY BUCK THAT WE'RE REALLY FOCUSING. WHEN WE'RE USING THE HIGH SCHOOLS, WE'RE HELPING FACILITATE THAT TECHNOLOGY AND INFRASTRUCTURE AT THE SCHOOL SO IT TRANSITIONS OVER TO THE ADULTS IN EVENING TIME. WE WANT OUR SCHOOLS TO BE THAT CENTER POINT OF THE COMMUNITY TO WHERE ALL LEARNING IS HAPPENING, NOT ONLY FOR KIDS BUT ALSO FOR THEIR PARENTS AND THE ADULTS BASED IN THEIR COMMUNITY. NATIONAL RECOGNITION. JUST THROUGH THE HELP OF THE CITY AND THROUGH THE INCEPTION OF THE PROGRAM, WE'VE BEEN ABLE TO REALLY BECOME A NATIONAL MODEL. WE'VE BEEN RECOGNIZED BY THE FORD FOUNDATION AS A NATIONAL MODEL. WE DO A LOT OF WORK WITH AN ORGANIZATION CALLED COMMUNITY TECHNOLOGY NETWORK, CENTERS NETWORK, WHICH IS AN ORGANIZATION OF OVER 600 COMMUNITY TECHNOLOGY CENTERS SUCH AS OURS NATIONWIDE. AND I ALSO WOULD LIKE TO THANK THE CITY AND COUNCIL AT THIS TIME FOR ACTUALLY HELPING TO SUPPORT. WE HAD OUR NATIONAL CONVENTION HERE IN AUSTIN LAST MONTH, AND THERE WAS A PROCLAMATION OFFERED BY THE CITY AGAIN. THANK YOU FOR THAT SUPPORT. IT MEANT A LOT TO OTHER ORGANIZATIONS AROUND THE COUNTRY WHEN THEY CAN SEE THE SUPPORT OUR CITY HAS FOR COMMUNITY TECHNOLOGY, MAKING SURE NO ONE IS LEFT BEHIND. WE'VE ALSO BEEN ABLE TO HAVE OTHER ORGANIZATIONS AROUND THE COUNTRY ACTUALLY COME TO US SEEKING OUR HELP AS FAR AS HOW TO GET THINGS STARTED AND TO REALLY BE THAT MODEL THAT WE'RE SET UP TO BE AROUND THE NATION. AND ALSO WITH THE DEPARTMENT OF EDUCATION AS FAR AS BEING A MODEL ALSO FOR THEM FOR NEW PROGRAMS THAT ARE STARTING. AND WITH THAT, I'M GOING TO PASS IT TO DR. GURGY.

THANKS, I JUST WANT TO ALSO SAY THAT REALLY L.J.'S 5 WORK WITH THE DISTRICT BUT ALSO NATIONAL WITH THE CTC NET ORGANIZATION AND CONFERENCE HAS BEEN PIVOTAL IN HELPING TO ESTABLISH BOTH OUR NATIONAL PROFILE AND THE DISTRICT PROFILE THAT WE HAVE, THE VERY STRONG RELATIONSHIP WE HAVE WITH AUSTIN INDEPENDENT SCHOOL DISTRICT. I WANT TO THANK YOU FOR THE HARD WORK YOU'VE DONE. I'M THE LUCKY ONE. I GET TO TELL YOU WHO WE ARE ACTUALLY SERVING AND SHOW YOU WHAT KIND OF PROGRESS THAT THEY HAVE MADE AND ALSO KIND OF GIVE YOU THE OVERVIEW OF WHERE WE'RE HEADED. IT'S REALLY TRULY AMAZING. OUR -- THE NUMBER OF PEOPLE WHOM WE SERVE, AND THE LEVEL OF DIVERSITY IS REALLY EXTRAORDINARY. IN 2001 TO 2002 -- OR 2000, 2001, WE SERVED 783 PEOPLE, WHICH IS -- WE HAVE DOUBLED EVERY YEAR IN THE NUMBER OF PEOPLE WE SERVED. WE'RE NOT GOING TO DOUBLE THIS YEAR BECAUSE WE MAINTAINED THE NUMBER OF CTCS AT REAGAN AND TRAVIS, BUT WE ARE STILL INCREASING THE NUMBERS. WE'RE AT 560 FOR THE YEAR AND WE HAVEN'T EVEN STARTED OUR FALL SEMESTER, WHICH IS USUALLY OUR HEAVIEST SEMESTER. THAT'S SOMETHING WE'RE VERY EXCITED TO TELL YOU. WHO COMES TO US? RIGHT NOW THE TYPE OF PERSON WHO WE HAVE, WE HAVE ABOUT -- WE HAVE AN EXTREMELY DIVERSE POPULATION THAT WE SERVE. 43% OF THE PEOPLE WHOM WE SERVE ARE HISPANIC. ANOTHER 16% OF THE FOLKS WHOM WE SERVE ARE AFRICAN-AMERICAN. WE HAVE 35% OF THE FOLKS WHO ARE ANGLO, AND 3 TO 6% WHO ARE ASIAN OR ASIAN-AMERICAN. THAT'S PART OF THE STORY. THE DIVERSITY IS EXTRAORDINARY, AND I THINK IT REPRESENTS WHAT WE ARE SEEING AND WILL CONTINUE TO SEE AS THE TREND HERE IN AUSTIN, SO I THINK THAT WE MATCH THE SPECTRUM OF FOLKS WHO LIVE IN THIS CITY AND ALSO WORK IN CENTRAL TEXAS AREA AND WORK HARD FOR THE MONEY THAT THEY HAVE. I THINK THAT THE NEXT TWO STATISTICS THAT WE HAVE ARE INDICATORS, ARE ACTUALLY EVEN MORE COMPELLING TO SOME DEGREE BECAUSE THESE FOLKS REALLY ARE THE WORKING POOR. THESE FOLKS ARE THE HARD WORKING POOR. WE HAVE 50% OF THE PEOPLE WHOM WE SERVE WHOSE HOUSEHOLD INCOME IS BELOW $20,000 A YEAR. 75% OF THE PEOPLE WHOM WE SERVE HAVE A POVERTY LEVEL THAT IS BELOW AUSTIN POVERTY LINE. OKAY? 6 SO WE ARE REALLY TARGETING THOSE PEOPLE WHO ARE STRUGGLING WITH MAINTAINING THEIR LIFESTYLE, MAINTAINING A FAMILY AND WORKING WITH JOBS THAT MAY MAY HAVE LESS OF AN OPPORTUNITY FOR THEM AND THEY RECOGNIZE THAT AND WANT TO MAKE SOMETHING OF THEIR LIVES AND WANT TO MOVE FORWARD. I GUESS PERHAPS THE BEST EXAMPLE OF THAT IS TO GIVE YOU A PROFILE OF AN INDIVIDUAL WE HAVE. A GENTLEMAN BY THE NAME OF JAVIER, A NEW IMMIGRANT FROM MEXICO WHO WORKS IN A LOCAL SHOPPING CHAIN. HE WORKS AS A BAGGER AND ALSO OUT WITH THE CARTS. JAVIER HAS BEEN -- HE HAS A DAUGHTER, HE HAS A FAMILY, HE IS THE SOLE INCOME PROVIDER FOR THAT FAMILY. AND ONE DAY HIS DAUGHTER CAME HOME AND SAID CAN YOU HELP ME WITH THIS COMPUTER PROJECT THAT I HAVE? AND HE COULDN'T. HE HAD NO IDEA HOW TO DO THAT. HE COULDN'T EVEN SAVE SOMETHING TO A FLOPPY AND HE WAS DEVASTATED HE COULDN'T HELP HIS DAUGHTER BECAUSE HE REALIZED WHAT THIS MEANT FOR HER FUTURE AS WELL AS HIS OWN. HE CAME TO THE CLASSES AND MOVED INTO THE ENGLISH CLASSES AND HE HAS BEEN TAKING DISTANT CLASSES IN A UNIVERSITY IN MEXICO, AND THESE CLASSES THAT HE'S TAKEN HERE HAVE DONE A COUPLE MAJOR THINGS FOR HIM. FIRST, THEY HAVE ENABLED HIM TO USE THE ELECTRONIC SYSTEM, THE E-MAIL TO GET HIS DOCUMENTS DOWN TO MEXICO AND HAVE THAT RETURN SO HE IS GETTING MORE OPPORTUNITY TO LEARN THROUGH THE DISTANCE LEARNING PROCESS HE HAS ESTABLISHED THERE. HE'S HELPING HIS DAUGHTER OUT. HE'S MAINTAINED A STRONGER RELATIONSHIP WITH HER AND IS MORE CONFIDENT APPROACHING THOSE SORTS OF THINGS. IN HIS JOB, HE'S BEEN RECOGNIZED FOR HIS INITIATIVE AND HE'S BEEN PROMOTED. THERE'S ALL THREE LEVELS AT WHICH JAVIER'S LIFE HAS REALLY CHANGED BECAUSE OF THE KIND OF THINGS HE'S LEARNED AT THE COMMUNITY TECHNOLOGY TRAINING CENTERS. NEXT SLIDE, PLEASE. IF YOU TAKE A LOOK AGGREGATE, IN AN AGGREGATE OF WHAT THAT MEANS FOR JAVIER, TAKE THIS TO THE NEXT LEVEL, WE HAVE ABOUT 50% OF THE PEOPLE COMING TO US THESE DAYS ARE UNEMPLOYED. THAT'S NO SURPRISE, I'M SURE, TO ANYBODY HERE. THEY'VE BEEN LAID OFF FROM FABS, THESE ARE FOLKS WHO HAVE BEEN IN CAREERS IN MANUFACTURING FOR MOST OF THEIR LIVES AND ALL OF A SUDDEN THEY HAVE TO HAVE A BRAND-NEW CAREER. AND WE ARE THEIR FIRST STEP IN THAT DIRECTION. 7 NEARLY HALF OF THE PEOPLE WHO COME TO US WITHOUT JOBS HAVE GOTTEN JOBS SUBSEQUENT TO TAKING THESE CLASSES. NOT NECESSARILY RELATIVE TO -- THEY DON'T NECESSARILY HAVE A COMPUTER TECHNOLOGY JOB, BUT THE CONFIDENCE THAT THEY HAVE GOTTEN BY TAKING THESE CLASSES, BY BEING ABLE TO SAY TO THEIR INTERVIEWER I KNOW HOW TO DO E-MAIL OR I KNOW HOW TO WORD PROCESS OR I KNOW HOW TO DO A SPREAD SHEET, THAT ABILITY HAS MADE THEM MORE ARTICULATE AND ABLE TO GET THE KIND OF JOB THEY ARE LOOKING FOR RIGHT NOW. THOSE FOLKS WHO HAVE COME TO US WITH JOBS, A QUARTER OF THEM HAVE GOTTEN PROMOTIONS OR SOME KIND OF RAISE, SO THEY'VE REALLY BEGUN TO RECOGNIZE THE CAREER PATHS THAT ARE AVAILABLE TO THEM IN A WAY THAT THEY HADN'T BEFORE. AND THAT'S EXTRAORDINARY. JAVIER'S STORY TELLS YOU THE STORY A LITTLE BIT ABOUT HOW PARENTS AND ALSO GRANDPARENTS HAVE AN OPPORTUNITY TO CONNECT WITH THE OTHER GENERATION NOW IN A WAY THEY MAY NOT HAVE HAD BEFORE. AND PERHAPS MOST INTERESTING IN THIS YEAR, SOME OF THE RESEARCH THAT WE HAVE BEEN DOING ON THE CLIENTS AND TRACKING IS THAT SMALL BUSINESS OWNERS ARE ALSO EXTRAORDINARILY HELPED BY THE KIND OF WORK THAT WE ARE DOING, THAT THEY ARE INCREASING THEIR BUSINESS EFFICIENCY. WHAT THIS MEANS FOR US NOW IS A COUPLE OF DIFFERENT THINGS. WE ARE CURRENTLY, AS JOHN HAD MENTIONED EARLIER, WE RECEIVED THIS YEAR A GRANT FROM THE MICHAEL AND SUSAN DELL FOUNDATION TO HELP TRAIN TEACHERS, SO WE ARE MOVING INTO THAT AREA IN ORDER TO CONTINUE TO FACILITATE THE RELATIONSHIP WITH THE SCHOOLS AND MAXIMIZE THE USE OF THIS TECHNOLOGY IN THE SCHOOLS. BUT WE'RE ALSO REALLY FOCUSING ON THESE EMPLOYMENT SKILLS SO THAT WE CAN IMPROVE THE OPPORTUNITIES FOR JOB AND CAREER PATHS FOR THE PEOPLE WHOM WE SERVE. WHAT DOES THIS MEAN TO US FROM A STRATEGIC LEVEL? WHAT WE CAN TELL YOU IS THAT WE'VE GOT REALLY THREE MAIN ISSUES THAT WE'RE GOING TO BE TARGETING. AND YOU ALL WILL NOT BE SURPRISED BY ANY OF THEM. SUSTAINABILITY IS OUR FIRST AND FOREMOST ISSUE THAT WE'RE FACING. WE ARE THEN GOING TO FOLLOW THAT WITH SCALABILITY AND THEN SERVICE DELIVERY. IN TERMS OF SUSTAINABILITY, AS JOHN MENTIONED, THREE YEARS AGO WE WERE 100% FUNDED BY THE CITY OF AUSTIN, AND NOW WE HAVE DIVERSIFIED OUR FUNDING STREAM SIGNIFICANTLY SO THAT YOU ALL ARE A PARTNER, A VERY STRONG PARTNER FOR US, BUT WE HAVE OTHER OPPORTUNITIES 8 AND OTHER SOURCES OF FUNDING. WE ARE CONTINUING THAT STRATEGY BECAUSE WHAT WE WOULD LIKE TO DO IS TO CONTINUE TO MINIMIZE THE PUBLIC SECTOR FUNDING, WE ALL KNOW WHAT THAT MEANS IN TERMS OF VULNERABILITY AT TIMES SO WE WANT TO KIND OF DIMINISH THAT VULNERABILITY. WE'RE FOCUSING BY TARGETING PRIVATE FOUNDATIONS AND ADDITIONAL CORPORATE SUPPORT. IN ADDITION TO THAT, WE ARE LOOKING TO OTHER REVENUE GENERATING MODELS. ABOUT 50% OF THE PEOPLE COMING TO US RIGHT NOW ARE FROM THE TEXAS WORKFORCE COMMISSION BECAUSE THEY ARE LOOKING FOR JOBS. AND WHAT WE'RE TRYING TO DO IS TO DEVELOP A MORE ONGOING RELATIONSHIP AND STRONGER CONNECTION TO THE WORKFORCE COMMISSION WHERE WE WOULD BE ACTUALLY OBTAINING REVENUE FOR THE KIND OF SERVICE THAT WE ARE PROVIDING FOR THOSE CLIENTS. AND IT COULD BE IN THE FORM OF SATELLITE ONE STOP CENTER, THAT'S ONE OF THE IDEAS WHERE WE'RE OPEN IN THE EVENING VERSUS DAYTIME SO WE WOULD HAVE AN OPPORTUNITY TO HELP CLIENTS IN THAT WAY. THE OTHER WAY WOULD BE TO BECOME A SERVICE PROVIDER. WE ARE EXPANDING OUR COMMUNITY PARTNERSHIPS TO SHARE RESOURCES. AUSTIN FREE NET IS ONE OF OUR STRONGEST PARTNERS AND WE SPEND TIME WORKING TOGETHER WITH THEM TO SEE HOW WE CAN SHARE, FOR EXAMPLE, VOLUNTEER SERVICES. OUR GOAL IS ALSO TO HIT -- TO TARGET 800 NEW CLIENTS A YEAR BECAUSE THE KEY TO THAT IS THAT THAT WILL KEEP US AT CAPACITY AND IT WILL REDUCE THE COST PER CLIENT, WHICH IS SIGNIFICANT THING WE'RE ALWAYS AWARE OF. SCALABILITY IS ANOTHER MAJOR ISSUE FOR US AND BASICALLY ONE OF THE THINGS WE WANT TO DO IS CONTINUE TO GROW BUT TO KEEP THE OVERHEAD FOR THAT KIND OF GROWTH AT A MINIMUM LEVEL. SO ONE OF THE IDEAS WE'RE WORKING ON RIGHT NOW IS ESTABLISHING SATELLITE CTTCS WHICH WOULD ENABLE US TO USE THE TECHNOLOGY AT A CERTAIN SCHOOL BUT NOT OWN IT. MENDEZ SCHOOL THIS FALL WHERE WE WILL BE TEACHING FAMILY LITERACY CLASSES, THEY WILL BE IN EVENING HOURS, BUT WE WON'T HAVE RESPONSIBILITY FOR ADMINISTRATION OR PURCHASING TECHNOLOGY. AS I MENTIONED EARLIER, WE HAVE THE SATELLITE ONE STOP CENTERS AS AN OPTION. THIS SERVICE EXPANSION IS CRITICAL ALSO. I MENTIONED TO YOU THE IMPORTANCE OF EMPLOYMENT SKILLS AND WE'RE WORKING ON THAT. IN CLOSE CONJUNCTION IS ADULT BASIC EDUCATION. THAT IS SOMETHING THAT WE CONTINUE TO SEE AS A 9 CRITICAL NEED TORE THE CLIENTS WHOM WE SERVE. WE WOULD LIKE TO CONTINUE TO BOILED THE SMALL BUSINESSES AND EXPAND THAT AS AN ECONOMIC OPPORTUNITY SO THAT WHAT WE FOCUS ON IS NOT SO MUCH FULL-TIME JOBS PLACED, BUT INCOME CAPACITY BUILDING. THOSE ARE THE MOST IMPORTANT THINGS THAT WE HAVE FOR OUR CLIENTS, AND IN CONJUNCTION WITH THE EXPANDED EFFICIENCY OF I.T. INFRASTRUCTURE FOR AISD WE WOULD LIKE TO STILL FOCUS ON TEACHER TRAINING. THAT'S KIND OF A SNAPSHOT OF WHERE WE'RE GOING IN THE FUTURE. I WOULD LIKE TO TURN IT BACK OVER TO JOHN TO KIND OF TELL YOU A LITTLE MORE ABOUT HOW THIS FITS IN WITH THE CITY'S PLAN FOR THE FUTURE AND COMMUNITY TECHNOLOGY.

WHEN WE FIRST STARTED THIS PROGRAM THREE YEARS AGO, THE CITY'S FOCUS WAS SORT OF HALF ON JOB TRAINING AND HALF ON SOMETHING CALLED TELECOMMUNITY. AND FOR ME, I'M A JOB TRAINING GUY, AND I DIDN'T UNDERSTAND OR CARE MUCH ABOUT THE TELECOMMUNITY ASPECT. BUT I HAVE TO TELL YOU, THREE YEARS LATER, IT'S BEEN REMARKABLE TO ME. WHEN YOU HAVE, YOU KNOW, AN AFRICAN-AMERICAN GRANDMOTHER AND AN ANGLO CONSTRUCTION WORKER WHO HAS BEEN LAID OFF, AND A NEW IMMIGRANT FROM MEXICO, AND SOMEONE WHO IS CLEANING, YOU KNOW, CLEANING FLOORS FOR A LIVING, ALL TOGETHER IN A CLASSROOM, YOU KNOW, UNIFIED BY TWO THINGS. ONE IS THEY WANT TO EARN MORE MONEY FOR THEMSELVES AND THEIR FAMILIES, AND TWO, THEY ARE REALLY AFRAID OF THIS BOX. THEY ARE REALLY AFRAID OF THIS COMPUTER. IN OVER FIVE WEEKS, THAT PEOPLE FROM DIFFERENT RACES AND DIFFERENT CLASSES AND DIFFERENT PARTS OF TOWN, ALL TOGETHER FOR FIVE WEEKS, YOU KNOW, FOUR HOURS A NIGHT, AND AT THE END, THEY CAN USE THIS BOX. AND THEY ARE GETTING RAISES, THEY ARE GETTING JOBS. IT HAS REALLY DONE SOMETHING FOR THESE, YOU KNOW, 1300 OR SO FOLKS THAT HAVE BEEN BROUGHT TOGETHER. SO I JUST WANT TO TELL YOU FOR THOSE OF YOU THAT WERE AROUND FOUR YEARS AGO WHEN YOU CALLED IT TELECOMMUNITY, EVEN THOUGH THE NAME HAS CHANGED, THE CONCEPT REALLY WORKS. AND JUST ALL THESE DIFFERENT POPULATIONS, YOU KNOW, THAT WERE LISTED UP THERE. THE TWO THAT HAVE PROBABLY SURPRISED ME MOST, I MEAN I SORT OF FIGURED THAT WE WOULD HAVE WORKERS, FAMILIES AND IMMIGRANTS. BUT I DIDN'T THINK WE WOULD HAVE SO MANY SENIOR CITIZENS THAT WERE EXCITED ABOUT COMPUTERS. 10 I HEARD YOU TALKING ABOUT THE VOTING EARLIER AND THERE WAS MORE FEAR ON BEHALF OF THE SENIORS THAN THERE WAS BY THE SENIORS THEMSELVES. THAT IS CERTAINLY SOMETHING WE'VE SEEN FROM THIS PROGRAM. THE OTHER BIG SURPRISE HAS BEEN WITH HOW MANY PEOPLE EITHER HAVE SMALL BUSINESSES AND WANTED TO LEARN TECHNOLOGY TO HELP THEM GROW THEIR BUSINESS, OR THEY HAVE AN IDEA FOR SOMETHING ON THE INTERNET OR THE WEB THAT THEY WANT TO COME IN AND BE ABLE TO LEARN HOW TO PUT UP A WEBSITE AND LEARN HOW TO DO AN E-BUSINESS. IN CLOSING, I MEAN I CERTAINLY UNDERSTAND BOTH FROM MY PERSONAL CONNECTS TO THIS COUNCIL OVER THE LAST FEW YEARS AND IN MY NEW ROLE THAT YOUR FOCUS AS COUNCIL AND AS A CITY IS NOT ON PROGRAMS LIKE THIS. THAT YOUR FOCUS IS ON PUBLIC SAFETY AND CLEANING THE STREETS AND COLLECTING OUR TRASH. AND THAT'S AS IT SHOULD BE. BUT I DO THINK, JUST IN MY EIGHT YEARS OF WORKING WITH NOW THREE MAYORS AND PROBABLY FOUR COUNCILS, THAT THERE IS A ROLE FOR THE CITY IN HUMAN INFRASTRUCTURE AND IN HELPING PEOPLE BUILD ASSETS. AND I THINK WHETHER YOU ARE LOOKING AT THIS FROM AN ECONOMIC DEVELOPMENT STANDPOINT, FROM AN EDUCATION STANDPOINT, FROM CULTURE OR EVEN FROM CITIZENSHIP AS YOUR EARLIER DISCUSSION ABOUT E-GOVERNMENT, THAT AS WE'RE LOOKING TOWARDS THE QUALITY OF LIFE AND WHAT TYPE OF AUSTIN WE WANT TO HAVE IN THE 21ST CENTURY, PART OF WHAT THE CITY DOES NEED TO BE TALKING ABOUT IN ADDITION TO E-GOVERNMENT IS WHAT YOU ARE DOING WITH LIBRARIES AND WHAT YOU ARE DOING WITH TECHNOLOGY CENTERS AND HOW PROGRAMS LIKE THIS AND SOME OF THE OTHER WONDERFUL THINGS THAT YOU FUND OR PARTNER IN PLAY INTO THE VISION FOR THE CITY. AND JUST READING SOME OF THE COMMENTS IN THE AUSTIN BUSINESS JOURNAL THIS PAST WEEK, AS YOU GUYS ARE SORT OF TRYING TO FIGURE OUT IN THIS CHALLENGING BUDGET TIME NOT ONLY THIS YEAR BUT FUTURE YEARS, I WOULD JUST URGE YOU TO KEEP THE IDEA OF HUMAN INFRASTRUCTURE AND INVESTMENT IN HUMAN CAPITAL, YOU KNOW, MAYBE NOT IN THE FRONT OF YOUR MINDS BECAUSE HAVE YOU TO DEAL WITH OTHER MORE PRESSING ISSUES, BUT MAYBE IN THAT SECOND PART AS YOU ARE LOOKING AT THIS BUDGET, AND MORE IMPORTANTLY, YOUR VISION OF WHAT THIS CITY WOULD BE LIKE IN THE FUTURE. WE APPRECIATE BEING HERE AND WOULD ANSWER ANY QUESTIONS.

MAYOR GARCIA: THANK YOU. LET ME SAY THAT I THINK THE TELECOMMUNICATIONS INFRASTRUCTURE COMMITTEE HAD THE MAYOR PRO~TEM AND A 11 FORMER COUNCILMEMBER WHO WAS VERY INSTRUMENTAL IN COMING UP WITH THE IDEA AND PUSHING IT FORWARD, COUNCILMEMBER BILL SPELMAN. ANY QUESTIONS? COUNCILMEMBER WYNN.

WYNN: YOU ALL TALKED ABOUT THE WORKFORCE COMMISSION I GUESS BEING AN OBVIOUS SOURCE, BUT I WOULD GUESS THAT THAT PRIMARY SOURCE ARE UNEMPLOYED OR RECENTLY LAID OFF FOLKS. HOW -- LIKE YOUR EXAMPLE OF JAVIER, HOW DO THEY HEAR ABOUT THE PROGRAM? HOW DOES SOMEBODY WHO IS WORKING BAGGING GROCERIES HEAR BIT AND KNOW WHERE TO GO?

YOU ALL SHOULD HAVE A NEON GREEN FLIER IN FRONT OF YOU. THAT IS A FLIER THAT WE DISTRIBUTE A I ACROSS A VARIETY OF PLACES. IF YOU FLIP IT OVER, THERE IS A SCHEDULE FOR THE FALL. EVERY WORKFORCE CENTER IS -- WE DISTRIBUTE THESE FLIERS ON A MONTHLY BASIS. WE ALSO DISTRIBUTE THEM ELECTRONICALLY TO THE COUNSELORS AT THE ONE STOP CENTERS AS WELL AS TO THE TEXAS REHABILITATION COMMISSION SITES, NORTH, SOUTH AND CENTRAL. WHAT WE ALSO DO IS IN THE IMMEDIATE VICINITY OF THE SCHOOLS, WE DISTRIBUTE THESE FLIERS TO THE MAJOR EMPLOYERS IN THAT AREA LIKE THE GROCERY STORE OR IF THERE ARE OTHER KINDS OF SHOPS IN THE AREA, WE MAKE SURE THAT THEY ARE THERE. WE ARE ALSO TARGETING LAUNDROMATS, THINGS LIKE THAT. SO THERE IS A LOT OF KIND OF WALKING AROUND, PHYSICAL WORK THAT WE DO TO MAKE SURE THE FLIERS ARE AVAILABLE. THE TRC AND TWC, THE WORK SOURCE REALLY THEY KNOW US VERY, VERY WELL AND WE GET A LOT OF FOLKS AS A RESULT FROM BOTH SOURCES AT THIS POINT. AND THAT'S WHY THE RELATIONSHIP IS KIND OF A NATURAL CONNECTION FOR US TO BE MAKING, AND THE INTERESTING THING IS THAT WE ARE A UNIQUE KIND OF SERVICE, AND FINDING THE EXACT FIT AND HOW THAT'S GOING TO WORK IS WHAT WE'RE WORKING ON NOW.

YOU FIND A LOT OF OUR STUDENTS ACTUALLY DO A LOT OF REFERRALS TO FAMILY MEMBERS AND FRIENDS. THAT'S ONE OF OUR BIGGEST AREAS AS FAR AS CONTACTING OUR STUDENTS IS THE BEST ADVERTISING IS WORD OF MOUTH. WE KNOW THAT A LOT OF EX-STUDENTS ARE OUT PASSING THE WORD AND KEEPING THE PROGRAM MOVING FORWARD.

MAYOR GARCIA: VERY GOOD.

FUTRELL: JUST A A SUMMARY OF THE INVESTMENT THAT YOU MAKE, WE HAVE -- YOU SPEND RIGHT NOW $270,000 WITH CAPITAL AREA TRAINING FOUNDATION. 12 170,000 FOR THEIR PROGRAM AT TRAVIS THEY'VE DISCUSSED. 100,000 FOR THEIR PROGRAM AT REAGAN. AS THEY'VE MENTION UNDERSTAND YOUR PARTNERSHIP WITH FREE NET WE SPEND ANOTHER 152,000 IN F.T.E.S AND PROGRAM MONEY IN THE FREE NET PROGRAM, WHICH IS PART OF THIS PROCESS, FOR A TOTAL OF $422,000. THERE IS ONE OTHER FUNDING OPPORTUNITY THAT I THINK I SHOULD MENTION. WE HAVE A POT OF MONEY THAT IS USED FOR TECHNOLOGY GRANTS, OPPORTUNITIES. IT'S $100,000. I BELIEVE IT'S EACH YEAR. THAT IS ALSO APPLICABLE THAT YOU COULD APPLY FOR AS ANOTHER WAY TO AUGMENT THIS PROGRAM. I JUST WOULD LIKE TO MENTION THAT ALSO.

MAYOR GARCIA: BETTY? DID YOU HAVE YOUR HAND UP?

DUNKERLEY: I REALLY WANTED TO COMMEND YOUR PROGRAM. I HAD THE OPPORTUNITY TO COME AND SIT IN ONE OF THE ORIENTATIONS ONE DAY AND IT WAS VERY GOOD. TWO THINGS THAT YOU MENTIONED THAT I HOPE WE CAN WORK MORE CLOSELY WITH YOU ON AND THAT IS IN THE AREA OF ECONOMIC DEVELOPMENT, IMPROVEMENTS AND SMALL BUSINESSES AND INDIVIDUALS. COUNCILMEMBER WYNN AND I ARE WORKING RIGHT NOW TRYING TO COME UP WITH AN OVERALL COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN FOR THE CITY, NOT ONLY THE TRADITIONAL ECONOMIC DEVELOPMENT, BUT DEVELOPMENT AND SUPPORT FOR CREATIVE BUSINESSES AS WELL AS SMALL BUSINESSES. SO I PICKED UP WHEN I SAW YOUR AREA THERE WHERE YOU REACH OUT TO THE SMALL BUSINESSES TO HELP THEM GAIN SKILLS AND GROW. THE OTHER AREA WE'RE GOING TO BE LOOKING AT IS IN THE AREA WHERE PEOPLE ARE NOT PARTICIPATING AT ALL IN THE ECONOMIC LIFE OF THE CITY, AND THAT IS THAT HUMAN INFRASTRUCTURE YOU ARE TALKING ABOUT. AND SO AGAIN, WE'LL BE CONTACTING YOU AND OTHER FOLKS THAT ARE IN YOUR BUSINESS TO TRY TO GIVE US SOME INSIGHT ON HOW WE CAN BETTER SUPPORT YOU AS YOU REACH OUT TO THESE PEOPLE THAT ARE NOT PARTICIPATING AT ALL. YOU DO A HECK OF A JOB WHEN YOU FINALLY GET THEM IN YOUR DOORS, BUT I'M REALLY INTERESTED IN HOW WE CAN REACH OUT AND GET MORE FOLKS PARTICIPATING IN THE VARIOUS TRAINING PROGRAMS IN THE CITY. SO THANK YOU.

MAYOR GARCIA: THANK YOU VERY MUCH. AND THE NUMBERS THAT THE CITY MANAGER GAVE INDICATE 13 THAT WE'RE SPENDING BETWEEN 300 AND 400 DOLLARS CITY MONEY TO GET THOSE FOLKS IN. I THINK YOU'VE DONE ABOUT 1300.

YES.

MAYOR GARCIA: ANYWAY, THANK YOU VERY MUCH FOR BEING WITH US AND GOOD LUCK.

THANKS.

MAYOR GARCIA: THE NEXT ITEM ON THE AGENDA IS THE AUSTIN ENERGY FINANCIAL AND GENERAL MANAGER'S REPORT. CITY MANAGER, YOU HAVE SOME FOLKS HERE FROM AUSTIN ENERGY.

FUTRELL: YES, AND WE'RE GOING TO BREAK THIS INTO TWO SESSIONS. WE'LL START WITH OUR PUBLIC PRESENTATION, AND THEN WE DO HAVE A SMALL, SHORT, EXECUTIVE SESSION COMPONENT. WHAT I WANTED TO SAY REALLY JUST IN INTRO IS THAT THIS IS THE FIRST OF OUR REPORTS WE'RE GOING TO BRING TO COUNCIL. SEVERAL MONTHS AGO WE DID THE MONTHLY REPORTS AND QUARTERLY REPORTS AND THIS IS OUR INITIATIVE TO BRING BACK A DIFFERENT WAY OF COMMUNICATING AND TALK THROUGH THE FINANCIAL AND POLICY ISSUES WITH AUSTIN ENERGY. THE FIRST OF OUR MONTHLY BRIEFS. JUAN.

MAYOR AND -- IS THIS OPEN? MAYOR AND MEMBERS OF THE COUNCIL, I THANK YOU FOR HAVING US HERE TODAY. WE ARE GOING TO PRESENT FOUR ITEMS TO YOU, THE FINANCIAL REPORT. I HAVE GIVEN YOU THE GENERAL MANAGER'S REPORT. I WANT TO SKIP OVER THAT EXCEPT HIGHLIGHT ONE ITEM. WE'LL HAVE A DISCUSSION OF THE DEBT MANAGEMENT FUNDS IN THE OPEN SESSION, AND THEN IN A SEPARATE CLOSED SESSION WE'LL DISCUSS THE STATUS OF DEREGULATION AS IT AFFECTS AUSTIN ENERGY.

MAYOR GARCIA: THE CHAIR OF THE ELECTRIC UTILITY COMMISSION IS ALSO HERE. WHY DON'T YOU JOIN US AT THE TABLE. WELCOME, SIR.

THANK YOU, MAYOR.

WE WILL HAVE, OF COURSE, APPROPRIATE STAFF HERE TO ANSWER YOUR QUESTIONS, MAYOR. RATHER -- I DID SEND OUT THE FINANCIAL REPORT. RATHER THAN GO THROUGH IT ON A LINE ITEM BY LINE ITEM BASIS BECAUSE I KNOW IT'S TEDIOUS AND YOU ARE RUSHED FOR TIME, LET ME MAKE SOME PUBLIC ASSERTIONS FOR YOU FOR THE RECORD. OVERALL, THE YEAR TO DATE BUDGET AS OF MAY 31 INDICATES THAT OUR -- WE ARE PERFORMING WELL COMPARED 14 TO BUDGET, WE ARE IN FACT BETTER THAN EXPECTED. ON THE REVENUE SIDE, ELECTRIC SALES ARE WITHIN A MILLION DOLLARS OF OUR BUDGETED AMOUNTS. I'M VERY COMFORTABLE WITH RESPECT TO THAT. THE OPERATING EXPENSES ON THE OTHER HAND, ARE ROUGHLY $10 MILLION BELOW OUR PROJECTED LEVELS, SO WE'RE DOING WELL THERE. LET ME GO THROUGH QUICKLY THE REASONS WHY WE'RE BELOW ON OUR EXPENSES. THE CHILLED WATER BUSINESS IS RUNNING ABOUT $3 MILLION BELOW BUDGET. THE REASON THERE, WE HAVE ON CLOSER INSPECTION HAD PLANNED TO DO MAINTENANCE OF THE DOMAIN PROJECT. WE HAVE FOUND IT'S NOT NEEDED AT THIS TIME. AND THE CUSTOMER LOADS ARE DOWN AS A RESULT OF THE WEATHER. AS YOU ALL KNOW, WE'RE HAVING A VERY UNUSUAL JULY THIS YEAR. WE DO EXPECT TO BE SLIGHTLY BELOW AT THE END OF THE YEAR ON THE MONEY THAT WE HAD EXPECTED TO SPEND THERE. TREE TRIMMING IS A PARTICULAR INTEREST BECAUSE WE DO WANT TO IMPROVE OUR CYCLE, SHORTEN OUR PSYCH TOLL ABOUT FOUR YEARS. JUST AS A SIDE NOTE, THE RECENT SPATE OF WEATHER HAS RESULTED IN SOME OUTAGES, BUT ONLY A COUPLE WE CAN TELL WERE CAUSED BY TREE LIMBS. THE REST WERE LIGHTNING STREAKS. WE'RE PLEASED WITH OUR TREE TRIMMING PROGRAM. WE ARE RUNNING $1.6 MILLION BELOW OUR BUDGET IN THAT AREA, BUT IT'S PRIMARILY BECAUSE WE HAD ENCUMBERED FUNDS FROM A PRIOR YEAR SO WE HAD A RUNNING START INTO THE BUDGET. I CAN ASSURE YOU WE ARE AHEAD OF SCHEDULE IN TREE TRIMMING. HOLLY MAINTENANCE IS DOWN. ESSENTIALLY REIMBURSEMENTS FROM THE INSURANCE COMPANY FOR THE HOLLY RESTORATION FROM THE OCTOBER 31ST FIRE. ENERGY EFFICIENCY REBATES ARE DOWN ABOUT $2.8 MILLION, HOWEVER, WE EXPECT TO GET CAUGHT UP BEFORE THE END OF THE SUMMER, JULY NOTWITHSTANDING. PARTICULAR ATTENTION TO THE HEAT ISLAND MITIGATION. WE ARE DOWN IN THAT ACCOUNT. WE EXPECT NOT TO SPEND ALL THE MONEY WE BUDGETED, A MILLION DOLLARS, IN THAT AREA. TO START UP -- IT'S A STARTUP INITIATIVE. WE WILL BY TEND OF THE YEAR DO ABOUT SEVEN CYCLES OF THE NEIGHBORHOOD PROGRAM. WE'LL DO THE PROJECT IN FRONT OF THE STATE SCHOOL FOR THE DEAF. WE'LL SPEND ABOUT 335,000, AS I SAID. 15 THE REMAINDER OF THE MONEYS ARE INCLUDED IN NEXT YEAR'S BUDGET. WE WILL FINISH OUT THAT PROGRAM AND COMPLETE ALL THE TARGETS THAT WE SET FOR US THERE. THEN THE -- WE'RE DOWN $3.2 MILLION IN EXPENSES AT THE FAYETTE AND THE SOUTH TEXAS PROJECT, BUT BY THE END OF THE YEAR, THOSE LINE ITEMS SHOULD BE FULLY EXPENDED. FUEL REVENUE. WE HAVE COLLECTED 22.5 MILLION MORE IN REVENUE THAN WE HAVE EXPENSED. THE WAY IT WORKS IS WE OVERCOLLECTED DURING THE FALL AND WINTER MONTHS AND THEN THAT KIND OF BALANCES OUT DURING THE SUMMER WHEN THE DEMAND IS HIGHER AND THE COST OF FUEL IS HIGHER. SO WE EXPECT THAT WILL ZERO OUT AT THE END OF THE YEAR. WITH RESPECT TO BAD DEBT, WE ARE RUNNING A LITTLE BIT HIGHER THAN WE HAD BUDGETED THERE. WE BUDGETED $6.6 MILLION BAD DEBT EXPENSE FOR THIS YEAR. WE'RE ABOUT TWO AND A HALF MILLION DOLLARS HIGHER THAN WE HAD BUDGETED. AT THE END OF THE YEAR, WE WILL BE AT ABOUT 10.8 MILLION. NOW, WE JUST BUDGETED TOO AGGRESSIVELY. THE ACTUAL AVERAGE HAS BEEN LIKE $12 MILLION. THE EFFORTS WE'RE CURRENTLY MAKE TO GO REDUCE BAD DEBT WILL ACTUALLY CAUSE A REDUCTION OF ABOUT 10%, AND WE EXPECT TO COME BACK TO YOU WITH FURTHER RECOMMENDATIONS. I'LL GO THROUGH SOME OF THE THINGS THAT WE'VE DONE THIS YEAR TO HELP OURSELVES IN THAT REGARD. WE HAVE REINSTATED THIS PAST MARCH THE TERMINATION OF SERVICE FOR BOTH WATER AND ELECTRIC FOR NON-PAYMENT. THAT HAPPENED VERY QUICKLY, WITHIN 45 DAYS OF WHEN YOU RECEIVE THE BILL. YOU HAVE 30 DAYS TO PAY IT. IF YOU HAVEN'T PAID IT WITHIN 15 DAYS OR AFTER, WE WILL TERMINATE SERVICE. WE SUBSCRIBE TO THE NATIONAL INFORMATION BANK CALLED LEXUS NEXUS TO CONFIRM CUSTOMER ADDRESS AND IDENTITY. THIS IS A RESULT, AND YOU'VE GOTTEN SOME CALLS ON THIS, SOME FOLKS CALLING ABOUT US PICKING UP ON BAD DEBTS THEY HAD FROM PRIOR YEARS MUCH WE ARE NOW ABLE TO DO THIS. YOU CANNOT SKIP FROM ONE APARTMENT TO THE OTHER THE WAY WE COULD IN THE PAST AND AVOID OUR SCRUTINY. WE REDUCED FROM 105 TO 75 DAYS THE TIME IN WHICH DELINQUENT ACCOUNTS ARE FINALIZED. IF YOU WANT SERVICE FROM US AGAIN, YOU HAVE TO BE 16 REQUALIFIED TO GET SERVICE FROM US. AND WE REDUCED FROM 191 TO 136 DAYS THE TIME AT WHICH DELINQUENT ACCOUNTS ARE TURNED OVER TO A COLLECTION AGENCY. THAT ESSENTIALLY SENDS A MESSAGE WE'RE SERIOUS ABOUT COLLECTING OUR BAD DEBTS. WE'LL CONTINUE WORKING ON THIS AND BRING YOU BACK A REPORT AND RECOMMENDATION FOR YOUR APPROVAL TO CONTINUE IMPROVING IN THAT REGARD. WE UNDERSTAND YOUR CONCERN TO BE ESPECIALLY SENSITIVE TO OUR CUSTOMERS THAT HAVE TROUBLE PAYING THEIR BILLS. WE'LL CONTINUE TO KEEP AN EYE ON THAT IS CORRECT BUT WE DO INTEND TO RUN THE BUSINESS AS WELL AS WE CAN IN THAT REGARD. DEBT SERVICE IS ACTUALLY LESS THAN WHAT WE HAD PLANNED TO SPEND, AND MY FIRST REACTION WAS HOW CAN WE MISS DEBT SERVICE. THE REASON WE'RE MISSING IT IS BECAUSE WE USE COMMERCIAL PAPER. WE HAVE NOT ISSUED AS MUCH COMMERCIAL PAPER AS WE HAD ANTICIPATED. THE INTEREST RATES FOR THE COMMERCIAL PAPER WE HAVE FLOATED HAVE BEEN A LITTLE BETTER THAN WHAT WE EXPECTED, AND WE DID DO A REFUNDING THAT SAVED US $1.2 MILLION. SO OVERALL, 6.4 MILLION BETTER OR TO THE GOOD WITH RESPECT TO BAD DEBT. WITH RESPECT TO THE GENERAL MANAGER'S REPORT, WHICH YOU ALSO HAVE A COPY OF, LET ME JUST EMPHASIZE THAT WE ARE ON SCHEDULE WITH RESPECT TO THE SAM HILL PROJECT, WE ARE ON SCHEDULE WITH RESPECT TO THE HOLLY CLOSURE PLAN, WE WILL DO THAT ON TARGET. AND ONE ITEM THAT IS IN THE REPORT HAVING TO DO WITH THE WAY THAT YOU CAN PAY OUR BILLS, WE HAVE OFFERED THE ABILITY TO PAY BILLS USING A CREDIT CARD TO OUR CUSTOMERS FOR SEVERAL YEARS. THAT SERVICE COSTS US $1.5 MILLION, AND OF COURSE IT ONLY BENEFITS THE PEOPLE WHO USE CREDIT CARDS TO PAY THEIR BILLS. WE HAVE STARTED A SERVICE WHERE THE CUSTOMERS USING THEIR CREDIT CARDS TO PAY THEIR BILLS ACTUALLY WILL ALSO BEAR THE EXPENSE TO PAY THEIR BILLS. THEY ARE FULLY APPRISED UP FRONT THAT THIS HAPPENS. I WANTED TO ALERT YOU TO THAT, THAT CHANGE, BECAUSE YOU MAY GET SOME CALLS ON THAT. IT WILL SAVE THE CITY OR THE YOU FILTH ABOUT ONE AND A HALF MILLION DOLLARS -- OR THE UTILITY.

MAYOR GARCIA: IS THAT THE E-MAILS WE'VE BEEN GETTING?

PARDON ME? 17

[INAUDIBLE]

I DIDN'T GET THAT. I'M SORRY.

MAYOR GARCIA: IS THAT THE E-MAILS WE'VE BEEN GETTING? COUNCILMEMBER WYNN ANSWERED THAT QUESTION.

THE NEXT REPORT I THINK IS -- REQUIRES A LOT MORE THAN MY RUNNING THROUGH IT. IT HAS TO DO WITH A GOOD DISCUSSION OF THE DEBT MANAGEMENT FUND. IF YOU ALL HAVE ANY QUESTIONS, WE WOULD BE GLAD TO ENTERTAIN THEM, BUT I WOULD LIKE TO WAIT UNTIL -- UNTIL ROGER IS FINISHED.

MAYOR GARCIA: THE INCOME STATEMENT THAT YOU HAVE THAT SHOWS THE FIGURES WITH A NET INCOME OF 45 MILLION, IS THAT -- THAT'S DONE USING GAAP, GENERAL ACCEPTED ACCOUNTING PRINCIPLES?

ABSOLUTELY.

MAYOR GARCIA: AFTER ALL THE MEETINGS THEY'VE BEEN TAKING HERE LATELY. AND THE ONE THAT SAYS F.Y. 2002 BUDGET TO ACTUAL, THAT USES BUDGETARY FIGURES, CORRECT?

CORRECT.

MAYOR GARCIA: AND THOSE THINGS DON'T COINCIDE ONE WAY OR THE OTHER?

THE BUDGET IS MORE A CASH BASIS. FOR THE PURPOSE OF RUNG THE YEAR TO YEAR. BUT WE ARE REQUIRED TO CONFORM TO GAAP, AND WE DO.

MAYOR GARCIA: OKAY. ALL RIGHT.

GOODMAN: MAYOR, BEFORE WE LEAVE THAT, THE FEE FOR USING THE CREDIT CARD, LET ME ASK, IS THAT CREDIT CARD AND DEBIT CARD OR JUST CREDIT CARD?

THE DEBIT CARD IS A DIFFERENT MATTER. THIS GOES DIRECTLY TO THE ACCOUNT, SO IT DOES NOT AFFECT DEBIT CARD.

GOODMAN: SO THE FEE IS NOT FOR A DEB IT CARD?

FOR A CREDIT CARD.

GOODMAN: I JUST WONDERED BECAUSE A LOT OF DIFFERENT BUSINESSES WILL LET YOU PAY YOUR BILLS THAT WAY AND THE FEES ARE VASTLY DIFFERENT FROM EACH OTHER, AND RELATIVE TO SOME WHERE IT'S ONLY $1.50, I'M ALWAYS FAIRLY SUSPICIOUS AS IT HEADS TOWARD THE OTHER END OF THE SPECTRUM. SO 595 SOUNDS LIKE A LOT TO ME.

I BEG YOUR PARDON? JEFF IS CORRECTING ME THAT THE DEBIT CARDS ARE INCLUDED AS WELL AS CHECKS. IN THE FEE. 18 THE 595 WOULD APPEAR TO BE HIGH GOING IN. HOWEVER, GIVE TEN SIZE OF THE BILLS, IT'S ACTUALLY PRETTY REASONABLE. YOU PAID A 595 FEE FOR A SMALL TRANSACTION, IT WOULD BE PROHIBITIVE. BUT THE WAY THE NUMBERS RUN OUT, IT'S A REASONABLE FEE. NOW, IF YOU HAVEN'T PAID IT, IT'S NOT REASONABLE IN THE PAST.

GOODMAN: THAT'S A FLAT FEE, RIGHT?

YES, MA'AM.

GOODMAN: THEN IT'S NOT REASONABLE. IT'S HIGH.

MAYOR GARCIA: OTHER QUESTIONS OF ROGER?

MAYOR AND COUNCIL, YOU HAVE HAD SOME QUESTIONS RECENTLY ABOUT OUR DEBT MANAGEMENT FUND AND HOW THAT WAS ESTABLISHED AND THE USES OF THAT FUND AND HOW WE INTEND TO USE IT IN FUTURE, AND I WOULD LIKE TO REVIEW THAT FOR YOU AT THIS TIME. THE DEBT MANAGEMENT FUND WAS ESTABLISHED IN DECEMBER OF 199 6 BY A CITY COUNCIL RESOLUTION, AND IN RESPONSE TO DEREGULATION AT THAT TIME AND AS PART OF THAT YOU CREATED THE DEBT MANAGEMENT FUND. IN 1996, THE PURPOSE OF THE FUND WAS TO DIRECT EXCESS CASH TO ACCUMULATE FOR DEBT DEFEASANCE. THE COUNCIL IN 1999 REVISED THE USE OF THE DEBT MANAGEMENT FUND AND EXPANDED ITS USE BEYOND DEBT DEFEASANCE SO THAT IT COULD BE USED STRATEGICALLY TO IMPROVE OUR COME PETER TO'S POSITION. ADDITIONAL USES -- AGAIN THE FUNDING SOURCES ARE OPERATING CHARACTER AND THE INTEREST EARNED ON THE DEBT MANAGEMENT FUND T USES OF THE FUND UNDER THE 1999 RESOLUTION WERE, FIRST, TO FUND CAPITAL NEEDS WITH CASH RATHER THAN DEBTS, SO WE CAN AVOID INTEREST PAYMENTS IF OUR RATEPAYERS AS MUCH AS POSSIBLE. TO REDUCE THE OUTSTANDING DEBT THAT WE HAVE, AND TO IMPROVE OUR DEBT TO CAPITAL RATIO. WE ALSO ARE AUTHORIZED TO ABSORB REVENUE REDUCTIONS FROM LOSS OF CUSTOMERS. WE HAVE NOT HAD TO DO THAT YET, BUT THAT IS ONE OF THE USES FOR THAT FUND THAT IS DESIGNATED. AND THEN RATE REDUCTIONS AND RATE REDUCTIONS ARE DONE PRIMARILY BY REDUCING YOUR OUTSTANDING DEBT AND THUS REDUCING YOUR ANNUAL DEBT PAYMENTS AND PASSING THAT THROUGH AS RATE REDUCTION. FINALLY THE FUND IS AUTHORIZE TO PURCHASE NEW COMPETITIVE TECHNOLOGIES. YESTERDAY WE HAD THE DEDICATION OF THE FIRST FUEL CELL IN CENTRAL TEXAS AREA. 19 FUEL CELLS, MICRO TURBINES, OTHER DISTRIBUTED GENERATION TECHNOLOGIES ARE STARTING TO MOVE INTO OUR MARKET, AND IN THE FUTURE WE SEE THAT WE MAY NEED FUNDS TO PARTICIPATE IN THOSE NEW TECHNOLOGISTS. AS FAR AS THE FUND ITSELF IS CONCERNED -- TECHNOLOGIES. THE FUND STARTED WITH $103 MILLION IN 1997, PEAKED AT 121 MILLION AND BY 2003 IT'S EXPECTED TO END AT $171 MILLION. WHAT DID WE SPEND THE MONEY ON? SINCE ITS CREATION IN 1996, THE DEBT MANAGEMENT FUND HAS PROVIDED $49 MILLION IN FUNDING FOR COMPETITIVE PURPOSES. FIRST, WE DID CASH FUNDING IN LIEU OF DEBT FOR THE SAM HILL PEAKING UNIT SPENDING $36.8 MILLION. OVER THE LIFE OF BONDS IF WE HAD ISSUED IT PROBABLY WOULD HAVE SAVED RATEPAYERS ANOTHER 30 MILLION IN INTEREST. IN MARCH OF 2002, WE DEFEESED 2.2 MILLION IN DEBT. AND IN SEPTEMBER OF 2001 THE COUNCIL AUTHORIZED TRANSFERRING $10 MILLION OUT OF THIS FUND TO THE HOLLY REPAIR AND REPLACEMENT FUND. AND WE LOOK AT FUTURE TRANSFERS TO THAT FUND FROM THIS FUND IN THE FUTURE. SO THAT IS HOW SO FAR WE HAVE SPENT 49 MILLION FROM THAT FUND. HOW DO WE INTEND TO USE IT IN THE FUTURE? WE AT THE UTILITY HAVE COME TO VIEW THIS FUND IN ADDITION TO IMPROVING OUR COMPETITIVE POSITION AS A CONTINGENCY FUND FOR UNEXPECTED EMERGENCIES, TO ADDRESS REVENUE SHORTFALLS OR EMERGENCY POWER PURCHASING NEEDS. I'M GOING TO GO INTO THAT IN DETAIL IN A MOMENT AS TO WHAT WE'RE FACING NATIONALLY NOW IN THE ELECTRIC INDUSTRY. SECONDLY, WE INTEND TO CONTINUE TO REDUCE THE BOND DEBT TO ALLOW FOR RATE DECREASE OR RATE STABILIZATION FROM THIS FUND. AND AS WE HAVE DONE IN THE PAST, TO PAY CASH WHEN WE CAN FOR NEW GENERATION RATHER THAN INCURRING NEW DEBT. NOW, WHY ARE WE STARTING TO LOOK AT THIS AS A CONTINGENCY FUND? A COUPLE OF THINGS HAVE HAPPENED IN THE ELECTRIC UTILITY MARKET AND I WANT TO USE TWO EXAMPLES OF OTHER UTILITIES TO GIVE ILLUSTRATION OF HOW VOLATILE THE MARKET PLACES IS IN TERMS OF WHOLESALE POWER THESE DAYS. FIRST, SACRAMENTO MUNICIPAL UTILITY DISTRICT IN SACRAMENTO, CALIFORNIA, THEY ARE A LITTLE LARGER UTILITY THAN WE ARE. 20 THEY HAD ESTABLISHED A 100 MILLION DOLLAR RATE STABILIZATION FUND. THAT FUND WAS DEPLETED IN ONLY TEN MONTHS BECAUSE OF THE HISTORICALLY HIGH WHOLESALE PRICES ASSOCIATED WITH THE CALIFORNIA ENERGY CRISIS. IN TEN MONTHS, THEY DEPLETED THE FUND, THEY HAD TO IMPLEMENT THEIR FIRST INCREASE IN 11 YEARS, AND NOW THEY'VE ADDED A SURCHARGE TO REBUILD THAT FUND. THE SECOND EXAMPLE, I THINK, IS EVEN CLOSER TO HOME. SEATTLE CITY AND LIGHT. NOW, SEATTLE CITY AND LIGHT IS A MUNICIPAL UTILITY JUST LIKE AUSTIN. IT'S APPROXIMATELY THE SAME SIZE UTILITY AS AUSTIN IS. AND THEY ARE NOT IN DEREGULATION IN OREGON, JUST LIKE WE'RE NOT IN DEREGULATION IN AUSTIN AT THIS TIME. SO IT'S A VERY SIMILAR UTILITY. HOWEVER, THEY HAVE TO GO ON THE WHOLESALE MARKET TO PURCHASE POWER FOR ABOUT 10% OF THEIR POWER NEEDS. THEY SELF-GENERATE 90% OF THEIR NEEDS. BUT IN JUST THAT 10%, WHEN THEY GOT CAUGHT IN THE POWER PRICES THAT SURGED IN THE ENTIRE WESTERN AREA, WESTERN STATES IN 2001, THEY HAD A $590 MILLION BUDGET IMPACT. THEY HAD TO INCREASE THEIR OUTSTANDING DEBT BY 60%. THEIR BONDS WERE DOWNGRADED IN JANUARY OF 2001 AND THEY WERE PLACED ON CREDIT WATCH THREE MONTHS LATER. THEY HAD TO PASS THROUGH RATE INCREASES OF 58% TO THEIR CUSTOMERS, AND IN ADDITION TO THE 58% INCREASE, THEY HAD TO BORROW MONEY FROM THE CITY OF SEATTLE TO KEEP THE UTILITY GOING. LET ME EMPHASIZE THAT AGAIN. INSTEAD OF MONEY BEING TRANSFERRED FROM THE UTILITY TO THE CITY, THE CITY HAD TO TRANSFER MONEY TO THE UTILITY IN ADDITION TO A 58% RATE INCREASE. FOR THESE REASONS, WE WANT TO CONTINUE TO THINK OF THIS AS A CONTINGENCY FUND. NOW, ONE OF THE QUESTIONS I'VE BEEN ASKED IS WELL, COULD THAT HAPPEN IN AUSTIN? WELL, YES IT COULD, EVEN THOUGH WE'RE NOT IN DEREGULATION AND EVEN THOUGH WE'RE IN 100% GENERATION. ONE SCENARIO IS WE HAD ANY OF OUR FACILITIES SUFFER AN OUTAGE, SOME OF YOU MAY RECALL THE SOUTH TEXAS PROJECT WAS OUT FOR THE ENTIRE YEAR OF 1993. USING THAT AS AN EXAMPLE, IF SOUTH TEXAS WENT DOWN FOR ONE SUMMER, AND WE WERE IN A HOT SUMMER SITUATION, ANOTHER 112-DEGREE SUMMER, AND WE HAD A MAJOR OUTAGE, AND THE STATE WAS IN A CONGESTED SITUATION IN TERMS OF TRANSMISSION AND GENERATION, WE COULD HAVE SKYROCKETING WHOLESALE POWER PRICES IF WE HAD TO GO ON 21 THE MARKET TO REPLACE GENERATION FROM SOUTH TEXAS OR DECKER OR FAYETTE, WE COULD EASILY HAVE TO INCUR 55 TO $100 MILLION IN POWER PURCHASE COSTS THROUGH THAT SUMMER. FOR THIS REASON, WE WOULD LIKE TO CONSIDER THE FUND AS A CONTINGENCY FUND. AND IN CONCLUSION, THE DEBT MANAGEMENT FUND HAS BEEN FUNDED AND USED IN ACCORDANCE WITH THE '99 CITY COUNCIL RESOLUTION. IT SHOULD ALSO BE AVAILABLE FOR USE AS AN EMERGENCY CONTINGENCY FUND, AND A RESOLUTION ESTABLISHING THE APPROPRIATE LEVEL OF THAT FUNDING WILL BE BROUGHT BACK TO THE CITY COUNCIL. QUESTIONS?

MAYOR GARCIA: THANK YOU.

GOODMAN: I JUST HAVE ONE, WHICH IS SORT OF AN INDIRECT QUESTION, NOT WHAT YOU ARE TALKING ABOUT, PER SE. ON RATES, DO WE STILL HAVE THE LIFE LINE RATES AND RESIDENTIAL RATES THAT ARE LOWER THAN COST OF SERVICE?

YES. WE STILL HAVE THE LIFE LINE RATES AT 500 [INAUDIBLE]

GOODMAN: I DON'T KNOW HOW LONG PEOPLE'S MEMORIES ARE, BUT I THINK IT'S BEEN A WHILE SINCE WE TOLD THEM MUCH ABOUT THE UTILITY, AND THEY ASSUME THAT WE ARE A KIND OF CORPORATE ENTITY THAT GOUGES ON OCCASION. SO AS WE GET INTO THESE REPORTS, I THINK THAT MAY BE GOING BACK TO SOME BASICS THAT PEOPLE DON'T KNOW AND THEY NEED TO BE TOLD ABOUT.

FUTRELL: IN ONE OF THE FUTURE MONTHLY REPORTS WE CAN DO FOCUS ON THE ASSISTANCE WE PROVIDE CITIZENS OUT OF THE UTILITY LIKE THE LIFE LINE RATES AND OTHER PROGRAMS COULD BE A FOCUS OF ONE OF OUR UP COMING MONTHLY REPORTS THEN.

GOODMAN: AND THE WHOLE COST OF SERVICE CALCULATION AND RESIDENTIAL, HAVING SUBSIDIZED RATES FROM AUSTIN ENERGY.

FUTRELL: ALL RIGHT. OF COURSE THAT GETS BACK TO THE VALUE OF OWNING YOUR OWN UTILITY.

WYNN: MAYOR?

MAYOR GARCIA: COUNCILMEMBER WYNN.

WYNN: SO BACK IN 1996 WAS THE DEBT MANAGEMENT FUND CREATED VIA A RATE INCREASE OR REDUCTION IN TRANSFER TO GENERAL FUND? WHAT WAS THE FINANCIAL ORIGIN OF THE FUND?

THERE WAS NOT A RATE INCREASE. 22 THERE WAS SIMPLY A RESOLUTION PASSED AND SAID THAT EXCESS CASH AT THE END OF THE YEAR WOULD BE TRANSFERRED TO THAT FUND AND THEN INTEREST ON THAT FUND WOULD BE REINVESTED IN THE FUND.

WYNN: SO ESSENTIALLY IT'S SORT OF IN LIEU OF A LARGER POTENTIAL TRANSFER TO THE GENERAL FUND WAS THE ORIGIN OF THE --

MAYOR GARCIA: AND REDUCTION IN EXPENSES. THAT PARTICULAR RESOLUTION PUT IN PLACE A PROCESS TO REDUCES EXPENSES AND MAKE --

WYNN: YEAH.

SLUSHER: COUNCILMEMBER, AT THE TIME, THERE WAS A PROPOSAL TO CUT THE GENERAL FUND TRANSFER MUCH MORE THAN IT WAS CUT, AND IT ENDED UP WITH THE COUNCIL MAJORITY SO THEY PUT FORWARD A PLAN THAT CUT OPERATING EXPENSES AND DID NOT CUT THE GENERAL FUND TRANSFER AS MUCH BECAUSE THAT OF COURSE WOULD BE CUTTING THE GENERAL FUND, AND THAT'S WORKED OUT PRETTY WELL.

WE MAY ALSO HAVE BEEN INFLUENCED BY THE LOOMING PROCESS OF [INAUDIBLE] TO SET A LITTLE CUSHION FOR OURSELVES.

WYNN: AND SO OF THE $49 MILLION THAT HAS BEEN SPENT, AM I READING THIS RIGHT THAT 2.2 MILLION OR ABOUT 4%, FOUR AND A HALF PERCENT, WAS ACTUAL DEBT REDUCTION?

THAT IS CORRECT.

WYNN: UNDERSTAND THE CONCEPT BY PAYING FOR CASH WE'RE NOT HAVING MORE DEBT DEBT, MORE GOOD AND IT'S A LESS EXPENSIVE BUY FOR US, BUT -- OKAY. AND SO THEN AS YOU ALL COME BACK WITH A CONCLUSION OR RECOMMENDATION TO US IN THE FUTURE ABOUT THE -- YOU KNOW, THE ONGOING FUNDING LEVEL OF THE DEBT MANAGEMENT FUND AS A CONTINGENCY FUND, WHICH I CONCUR WITH, BASED ON WHATEVER THAT NUMBER IS, WILL THERE LIKELY ALSO BE THE CHANCE FOR MORE DEBT REDUCTION?

YES. AS YOU MAY RECALL, WE JUST SUCCESSFULLY CHANGED THE BOND COVENANT ON OUR EXISTING BONDS TO FREE UP SOME CASH THAT WE COULD USE FOR DEBT REDUCTION. WE MAY VERY WELL TAKE SOME ADDITIONAL MONEYS OUT OF THIS FUND AND COMBINE IT WITH THAT FOR DEBT REDUCTION AT THE SAME TIME, AND WE WILL BE BRINGING THAT PLAN BACK TO YOU BY THE END OF THE YEAR.

WYNN: AND REMIND ME, DO YOU ALL TALK TO OUR -- TO THE BOND RATING AGENCIES IN ADVANCE OF THAT OR DO YOU COME AND GET OUR -- YOU KNOW, OUR PERMISSION AND THEN YOU GO RUN THAT BY THE -- WHAT IS SORT OF THE LOGISTICS OF OUR ONGOING DISCUSSIONS WITH WALL STREET?

I CAN'T COMMENT AS TO WHETHER WE CAME TO THE COUNCIL BEFORE WE STARTED THE BOND ORDER CONSENT 23 PROJECT. I KNOW WE'VE SENT SOME NOTIFICATION TO COUNCIL.

MAYOR GARCIA: WE TOOK THE PLAN TO NEW YORK AND EXPLAINED IT TO THEM IN '96 AND THAT STARTED THE PROCESS. SO THEY WENT ALONG WITH IT AND DIDN'T DOWN GRADE US OR --

FUTRELL: BUT JOHN, COME AND SHARE, BECAUSE WE STAY IN FAIRLY CONSTANT CONTACT WITH THE BOND RATING AGENCIES AND IN A VARIETY OF WAYS AND FASHIONS.

YES, CITY MANAGER, THAT'S TRUE. WE HAVE BOTH FORMAL AND INFORMAL CONTACT THROUGH PUBLIC FINANCIAL MANAGEMENT, OUR FINANCIAL ADVISORS WHO ARE ABLE TO TALK TO THE AGENCIES ON SORT OF A INFORMAL BASIS AND GET FROM THEM A NOD AS TO HOW THEY WOULD FEEL ABOUT CERTAIN ACTIONS THAT WE WOULD TAKE. FOR EXAMPLE, THE ACTION THAT WE TOOK TO DO AWAY WITH OUR DEBT RESERVE FUND AND REPLACE THAT WITH A SURETY, THEREBY FREEING UP APPROXIMATELY $100 MILLION OF CASH THAT COULD BE USED FOR FURTHER DEBT REDUCTION.

WE WOULD NOT EVER WANT TO SURPRISE A BOND RATING AGENCY. THE DIALOGUE IS ALWAYS CONTINUAL.

WYNN: BASED ON THAT, I CAN ASSUME WHATEVER NUMBER IS BROUGHT FORWARD AS A RECOMMENDATION FOR YOU ALL AS TO BOTH THE ONGOING LEVEL OF THE CONTINGENCY AMOUNT AND THEN THE UTILIZATION OF ANY EXCESS PERHAPS FOR DEBT REDUCTION IS, YOU KNOW, GENERALLY WITHIN AN ACCEPTED PARAMETER BY OUR DISCUSSIONS WITH THE RATING AGENCIES?

YES, SIR, AND THE RECOMMENDATION WOULD HAVE THE FULL SUPPORT OF THE CITY'S FINANCIAL ADVISER WHEN WE DO BRING IT FORWARD. AND WE'VE GONE THROUGH ALL THAT.

WYNN: OKAY. THANK YOU.

MAYOR GARCIA: OTHER QUESTIONS? ONE QUICK QUESTION, ROGER OR JUAN, THE -- YOU SAID YOU ARE GOING TO BRING A RESOLUTION TO THE COUNCIL SO THAT WE CAN SET A POLICY AS REGARDS WHAT LEVEL YOU WANT TO HAVE THE DEBT MANAGEMENT FUND AT?

YES, SIR.

MAYOR GARCIA: I GUESS YOU WILL EXPLAIN TO US LATER WHAT CRITERIA YOU USE TO REACH THAT -- THAT PARTICULAR --

YES, SIR, WE WILL. AND IT'S GOING TO BE DIFFICULT, FRANKLY, BECAUSE THIS IS SUCH A NEW MARKETPLACE OUT THERE AND IN TERMS OF -- AND THE PEOPLE IN CALIFORNIA AND OREGON HAD NO IDEA 24 THEY COULD GET HIT WITH THIS KIND OF MONEY WHEN THE WHOLESALE MARKETPLACE. SO WE'LL BE RESEARCHING THAT AND EXPLAINING IT TO YOU AT THE TIME.

MAYOR GARCIA: OKAY. OKAY. COUNCILMEMBER ALVAREZ.

ALVAREZ: YES. I DON'T KNOW IF THIS WAS PURPOSEFUL OR NOT BECAUSE OF ALL THIS CONSENT FOR COMPETITIVE INFORMATION OR BY COMPETITIVE INFORMATION, BUT WE'VE TALKED ABOUT THE ESTABLISHMENT OF THE DEBT MANAGEMENT FUND AND THAT IT'S BEEN I GUESS IN EXISTENCE FOR SEVERAL YEARS, BUT THERE WASN'T A DISCUSSION OF HOW MUCH DEBT WE'VE BEEN ABLE TO PAY OFF SINCE WE'VE ADOPTED THIS POLICY. IS THAT SOMETHING WE'RE GOING TO DISCUSS IN EXECUTIVE SESSION OR IS THAT SOMETHING WE'RE GOING TO TALK ABOUT?

COUNCILMEMBER, IN ADDITION TO OUR REGULAR DEBT PAYMENTS AND REDUCTION OF DEBT THERE, WE'VE PAID AN ADDITIONAL 2.2 MILLION IN DEBT FROM THIS PARTICULAR FUND. AS I INDICATED, WE IN ALL PROBABILITY WILL BE COMING BACK TO YOU BEFORE THE END OF THE YEAR WITH MORE MONEY COMING OUT OF THIS FUND FOR DEBT REDUCTION.

FUTRELL: BUT I THINK, COUNCILMEMBER, YOU ARE ASKING THE POLICY QUESTION OF WHAT LEVEL OF DEBT DEFEASANCE SHOULD OCCUR WITHIN THE UTILITY AND AS WELL AS WHAT ROGER AND JUAN HAVE TALKED ABOUT, THERE'S BEEN A LOT OF QUESTION ABOUT WHAT LEVEL THIS FUND SHOULD BE KEPT AT. SO YES, WE'RE GOING TO BE COMING BACK TO YOU BOTH PUBLICLY AND PRIVATELY TO TALK THROUGH WHERE YOU SET THAT BAR.

ALVAREZ: BUT BEYOND WHATEVER MONEY WE'VE PUT INTO THE DEBT DEFEASANCE OR DEBT MANAGEMENT FUND, THERE HASN'T BEEN FUNDS IN ADDITION TO THAT THAT WE'VE BEEN USING TO PAY OFF OUR LONG-TERM DEBT OR LONG-TERM LIABILITY?

WELL, OUR ANNUAL DEBT PAYMENT, WE ARE SCHEDULED TO PAY OFF OUR DEBT IN I THINK LESS THAN TEN YEARS, ACCORDING TO OUR CURRENT DEBT SCHEDULE.

FUTRELL: SO THE ANSWER IS QUESTION YES, THERE ARE OTHER FUNDS USED TO PAY OFF DEBT MUCH AND IN THINGS LIKE THE RE--. AND IN FACT, THINGS LIKE THE REFUNDING THAT JUST OCCURRED, THAT WILL ALLOW A SIGNIFICANT PORTION.

116 MILLION WILL BE ALLOCATED TO PAY OFF DEBT.

ALVAREZ: THAT'S AN ITEM WE'RE CONSIDERING TOMORROW?

NO. 25

MAYOR GARCIA: TOMORROW WE DO TWO THINGS. NUMBER ONE, WE SEPARATE WATER FROM ELECTRIC. AND THEN -- FOR REFUNDS. I THINK THIS MECHANISM WORKS SOMETHING LIKE IN LOOKING AT WHEN THE SPECIFIC BOND ISSUES CAN BE PAID OFF, THAT, YOU KNOW, THEY WILL USE MONEY TO PAY THOSE, AND THEN THEY WILL USE OTHER MONEYS TO DO THE REFUNDING AND, YOU KNOW, MAKE SURE THAT IN DOING WHAT THEY DO, THEY COMPLY WITH THE RESOLUTIONS AND THE POLICIES THAT WE PASS.

VERY IMPORTANT TO US ALSO THAT WE FOCUS ON GENERATION DEBT. SO, NOW, TO DO THAT WE NEED TO GET SOME RULINGS FROM THE I.R.S. THAT'S WHY THE PROCESS TAKES SO LONG. SO WHEN A FOCUS ON -- WE'RE GOING TO FOCUS ON REDUCING OUR GENERATION DEBT. [ONE MOMENT, PLEASE, FOR CHANGE IN CAPTIONERS] [12:00 NOON]

(12:02PM)

MAYOR GARCIA: AS PART OF OUR REGULAR MAINTENANCE, PARTICULARLY AS REGARDS THOSE THAT WE DON'T CONTROL OURSELVES, ARE WE SATISFIED THAT THE MAINTENANCE SCHEDULES ARE SUCH THAT THEY WOULD AVOID EITHER ONE OF THOSE PLANS GOING DOWN?

MAYOR, I WOULD ASSURE YOU THAT IT IS THE ONE AREA THAT IS THE HARDEST THING FOR US TO RESOLVE INTO THE BUDGETARY DEBATE THAT WE HAVE INTERNALLY. AND THAT WE WANT TO GIVE A LOT OF CREDENCE TO WHAT OUR EMPLOYEES TELL US HAS TO BE DONE ON A YEAR TO YEAR BASIS BOTH ON TERMS OF GENERATION AND ON TRANSMISSION DISTRIBUTION. THAT RECEIVES TOP PRIORITY. AND FROM OUR CUSTOMERS WE HEAR THE SAME THING. DON'T SCRIMP ON MAINTENANCE OF THE SYSTEM.

MAYOR GARCIA: OF COURSE, YOU CAN HEARD THE PAST FEW DAYS THAT WE'RE GOING TO BE DOING SOME SCRUBBERS ON THE FAYETTE, WHICH IS GOOD GIVEN THE AIR QUALITY ISSUES THAT WE FACE. MAYOR PRO TEM?

GOODMAN: THIS IS IN RELATION TO THE QUESTION THAT COUNCILMEMBER ALVAREZ WANTED TO KNOW ABOUT. BACK WHEN WE DID THAT WORK PLAN, MAYBE ON SOME COMPUTER SOMEWHERE HAS THE CHARTS, THE GRAPHS THAT WE GENERATED BACK THEN THAT HAD TO DO WITH THE LENGTH OF TIME WE WERE IN DEBTOR FOR WHATEVER CAPITAL ITEM, AND AT THE TIME WHERE THE PAYMENTS START COMING DOWN HOW WE WERE ABLE TO LEVERAGE -- I CAN'T REMEMBER THE WORD. I KNOW THE CPA WOULD USE THE WORD, BUT I WON'T USE THE RIGHT ONE. [TECHNICAL DIFFICULTIES - PLEASE STAND BY ]

[ RECESSED INTO EXECUTIVE SESSION AT 12:15 P.M.]

(ADJOURNED)

End of Council Session Closed Caption Log