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, please contact the City Clerk at 974-2210.
good morning. I'm austin mayor legal, lee leffingwell, and we'll begin today with the invocation from -- let's see. They didn't put the pastor's name. Pastor james lee. Thank you very much. Please rise.
I want to say good morning and thank you for the privilege of being able to serve. We want to recognize the mayor, the council members and the staff for the work that you're doing, arduous task, but you're called and equipped to do it. And so let us pray. Almighty god, we recognize that we live, we move and have our being because of you. We're indeed thankful for the austin city council. As they deliberate over important matters regarding the well-being of our great city, we pray that you would grant them wisdom, knowledge, creativity and courage. Grant them the capacity to steward resources with compassion and forward thinking, and grant them the capacity to consider the implications of their decisions upon all their constituents. Finally we pray your blessings upon all who enter these halls and who work to make today's meeting successful. In your glorious name we pray. Amen. thank you. Please be seated. A quorum is present so I'll call this meeting of austin city council to order, on thursday june 9, 2011 at 105 a.m. We're meeting at 301 west 2nd street, city council chambers, austin rkz texas. To begin with the changes and corrections to today's agenda, the first item is 5 will be postponed until june 23rd, 2011. 16, add the sentence "recommended by the water and wastewater " 39, add mayor pro tem martinez as a co-sponsor. 43 is postponed until june 23, 2011. We have no morning briefings today, so our time-certain 00 noon citizens communications. we'll take up 00 p.m. our public hearings. 30, live music and proclamations. The musician for today is mike milligan. So the consent agenda for 1 through 44, and item 38 will remain on the consent agenda, but I'm going to read it into the record at our boards and commission nominations and waivers. The first is to the austin music commission, brad spees, is mayor leffingwell's appointment to the nomination, and to the mb and wbe small adviser and procurement program, regina adams is riley's recommendation, and tony tipton is council member cole's nomination. There are no waivers requested for today. Items pulled off the consent 8 is pulled by council member morrison. 9 will be a discussion item. A number of speakers signed up to speak on that item. 11 will be pulled off consent for a brief presentation by the law department. 14 will also be pulled off for presentation by the law department. Items 12 and 13 are pulled by council member morrison to be discussed after discussing these items in executive session, and item 41 is pulled off the consent agenda by council member morrison. I would also add that item 9, at the request of council member cole, will be discussed in executive session after we hear from all of our speakers. We have no additional items pulled for speakers, but we do have several folks signed up, one speaker. 37, hondo powell is neutral. Does not wish to speak but ready to answer questions. Assuming there are no questions there. 40, tom evans is for and wishes to speak. Tom evans? evans, this is on consent approval so you're welcome to try to talk us out of it. You have three minutes.
Okay. Thank you, mayor leffingwell. Good morning, good morning council members. My name is tom evans. I'm pleased this morning to present on a proposal that has been supported unanimously by the austin sister city's international committee for your consideration and hopefully approval to create a new sister city relationship between austin, texas and the city of anger, france. I'd like to present -- i have a presentation if it's possible to bring it up on the computer. Someti someti mes that's possible. We'll give it a whirl.
No. 40. i would just add while we're waiting for it to come up on the computer that I've been involved in this -- I should disclose that I'm the associate vice president for global initiatives at edward's university and have been very involved in the creation of a portal communication in angers, france. We send about 60 students per year to angers france and have received the second largest number of students from angers france and through different interactions with different groups, the city of angers, internship opportunities for students and delegations coming to austin have been heavily involved on both sides of that and have come to love this city of angers, and I'd like to talk to you about why I love it and more about the city. It is a beautiful city, about an hour and a half train ride or three-hour drive from paris in the heart of the louir valley, one of the most beautiful parts, but has the most cost of living in france. If you see on a map, if you follow with your eyes from paris southwest you'll see the luar valley and angers in the heart of the valley. Austin and angers will be good sister sters due to cultural diversity and dialogue that's possible, educational centers with large public and private universities in both of our cities, the interest in sustainable development, being beautiful cities with great quality of le at each location. Angers is known in france as la ducier -- the sweet life. We have cities for each of our countries, famous for our hospitality, capital cities, and the music capital centers of our region as well. Here's the main square of the city with the opera house and great shopping. Some facts about angers. It's the 15th largest city in france, again just an hour and a half from paris by train. It's a very young city with 32% of the people less than 30 years old because of the large public and large private universities in the city. And the city is very interested in this, as with austin. The jurisdiction is quite large. You can see here the different aspects that the city is concerned with, and the city is greatly concerned with the sister city relationships and international development as well, and it has been heavily involved in this. It might be of interest to note that they have just completed a tramway project that has involved the crossing of a large river and has been very successful and there may be much to learn from their successes and failures along the way -- or challenges, I'm not sure if they were failures. The economic environment is quite good with people employed in both industry and the service sectors. Small companies, large compani 71 multi-national companies that are quite large, and third in france for exports through the river. Sustainable development is a major aspect of the region. In fact, they have a bike program where -- and that was your time.
Okay. Thank you very much, sir. yeah, I would just add that -- as I started to say a while ago, I've been a part of this plan to make angers a sister city and there have been several visits by the people of angers came over last fall and visited with their sister university, edward's university here in austin. We had a good exchange there. And we signed the documents to begin the process during that visit. So look forward to completing it with a visit to angers later on this year. So thank you very much.
Thank you for your support. so with that, council, I'll entertain a motion to approve the consent agenda. Mayor pro tem moves approval, council member morrison seconds. Any discussion in all in favor say aye.
Mayor leffingwell: aye. Opposed say no. Passes on a vote of 7-0. 8 pulled by council member morrison. thank you, mayor. This is an item that will authorize the city manager to create a new nonprofitder the city that will be applying for some new market tax credits, and after we get an introduction from -- johns, i really just wanted to have a quick discussion about the fact that we also have an organization, a nonprofit in town by the name of people's fund that's been doing a lot of economic development that's also applying for these tax credits working with neighborhood housing and community development, and I just wanted to have a quick discussion about how we're going to be coordinating those efforts, if at all.
Kevin johns, director of economic growth, redevelopment services office. Would you like me to explain what the new market tax credit is or do you want me just to respond to your questions, councilwoman? well, if you could just give a one-sentence description of what the new market tax credit is and our ion of what we're planning to do with it. department of treasury issues economic development funding called new mart tax credits, which are federal tax credits. There will be a $3 billion competition, and we would like to apply for a $65 million allocation to seek to finance city-initiated redevelopment PROJECTS IN OUR TODs.
Morrison: great. Asoned, people fund is also going after this and they do a lot of work with nacd, so I wonder if you could talk about, are we going to be competing with them or is there a way to actually make sure we're coordinating our efforts, should one -- as we apply and should one or both of us be awarded the tax credits?
We will coordinate with them. There's actually several nonprofits that mays well as some private organizations. People find this a great organization, and their focus is a little bift -- people thei is different from ours, there's is from city initiated developments. I can't say we'll be directly competing with them. I just don't know. There is already one organization in the city that does have new market tax credits, so I can assure you we will coordinate with them, see what we can do about trying to have a greater impact for austin. great, and i wonder, city manager, if i could just have you comment on that because since we have various departments involved.
Yes, thank you. I think one of the things that we have talked about with economic growth and redevelopment services office is that there is an interface between what the city will be doing with the city projects as well as integrating small business into those projects, and one of the things that people fund does really well is loans for small businesses and microloans. So we see that there's a real interface between the two. great, i appreciate that, and johns, you mentioned there might be others in the city that are applying.
Yes. so I think however we can work together would be great. So I appreciate that explanation and the commitment to work together, and with that I'd like to move approval of item no. 8.
Thank you very much. excuse me, I was -- motion by council member morrison to approve, second by council member spelman. Any discussion? All in favor say aye.
Mayor leffingwell: aye. Opposed say no. Passes on a vote of 7-0. So council member, we have another quick item to take up before we go to our item 9. Item 11 is pulled for a brief presentation by the law department.
Thank you, mayor. Dana johnson, assistant city attorney for the law department. Item 11 is -- requests that the city council approve a settlement of a large property damage lawsuit. The lawsuit was filed by plaintiff state farm lloyds and homeowners millers and seeks compensation for property damages that came from a fire back in september of 2007. We discussed this case a couple weeks ago in executive session. In summary a austin distribution line fell. It sent 7200 volts through a copper line that was connected to a spigot underneath the line. It caused excessive heat in the millers' home and a fire resulted. State farm lloyds paid over $2 million in damages to the millers under their insurance policy for cleanup, personal property damages, et cetera. In addition, the millers claimed over $400,000 in damages for which they were not compensate the. They brought suit. Their allegations were the austin energy caused the line to fall and caused the house fire. The issues of negligence and causation are in dispute, but the parties have negotiated. The plaintiff parties, the millers and state farm, have agreed to accept contingent upon council approval of 4 million claim in the. The law department has discussed this and we provided our analysis and we recommendation settlement of this $750,000 property claim.
Questions for staff? Entertain questions for item no. 11. Council member riley moves approval, second by mayor pro tem. Is there discussion? All opposed say aye. Opposed say no. Passes on a vote of 7-0. Thank you. So we can also -- item no. 41 Should be short, pulled by council member morrison. thank you, mayor. I think we have a couple of speakers -- they're signed up only to have questions. I don't have questions. I just want to mention, this is the item that is going to be looking at the auditorium shores and butler park and looking for a financing plan on that. And I wanted to ask staff a question about what kind of time frame we might be looking at, what's going to be a doable time frame, what our expectations will be when we might be hear back from you about that.
Mayor and council, I'm rudy garza, city manager. I don't believe our parks director is in the chambers, but I will send something in writing back to the council on where we are with the master plan, once we have the completion of the master plan, which I know is in the works now. I got to believe that will just be -- I hate to speculate, but it can't be more than just a couple of months, but I think she would be best to answer that. More morse where I'm looking for a -- this resolution asks for financing plan options. Are you saying we want to look at -- you want to wait -- it will be after the ma plan is complete.
Correct, because we want to know what we're financing.
Morrison: okay. I want to make a quick comment that this is something that's been tossed around for quite a while so I appreciate all the work that the community has done in trying to raise the questions and getting this to a place where the park can be completed. We passed some bonds to do that -- or we've passed some ballot language to do that some time ago, and certainly don't want to have to go back to the voters to ask them for more. So with that I'll move approval, mayor. motion by council member morrison to a and I'll second and also say that as the sponsor of this item, along with council member morrison, I specifically avoided putting any timelines into it because of the complexity. There are a lot of complex legal issues, a lot of complex funding questions and I think we need to get a little bit into it before we can just -- begin to talk about timelines and see what the degree complexities are. Any further discussion? Council member riley. I wanted to know that there has been one minor change in the last paragraph where we were directing the city manager for options for increasing park vicinities of any project and in the current version we've inserted the word available parking because we discussed in the work session. I would just note -- my understanding is we have about 910 spaces available at -- nine or ten spaces -- and about 310 spaces available in the energy center, which are not made available at the palmer event centers. I hope we'll be exploring options for making use of those existing parking structures. that change is included in the latest version, yellow sheet version, and as previously discussed, what that means is that -- what the council member said -- what it means is what he said, but it also means it does not preclude looking at additional required parking at the same time. So we just want to make that clear in case that question comes up. Because we did have a discussion on it. Anything further? All in favor say aye.
Mayor leffingwell: aye. Any opposed say no. Passes on a vote of 7-0. And I would add that jeff jack and larry achers had signed up in favor not wishing to speak but willing to answer questions, and there were none. So thank you. 9, and unless any council members want to have something to say before we begin, we can go directly to our speakers. Okay. We'll have a brief presentation by the staff before we go speakers.
Thank you. Good morning, mayor and council. Rodney gonzales, deputy director for the city's economic growth and development services office. We're here today for the second discussion of the formula one u.s. grand prix. At the initial briefing held on tuesday, june 7, staff outlined the request made by the circuit event local organizing committee, which involves the city's participation in the texas major events trust fund as an endorsing municipality. Council, at that briefing you asked us to do sefl several things, and I wanted to take the opportunity to brief you on the status of those items before we proceed with the remaining discussion items. First, you asked us to seek an outside party to review the economic impact study that will be submitted by the local organizing committee. We have since hired john hockinyose of texas perspectives to conduct that review. On june 17 a team of city staff including leslie browder, greg canal i, jeff canli and myself together with john hocken yost and his colleague will scrub and critique the impact study. At that meeting we will pose questions to don hoyt of texas trust funds that are aimed at understanding the assumptions, the inputs and the outputs for the economic impact study. If either the assumptions, the inputs or the outputs do not make sense or cannot be justified, we will bring hoyt's attention. At the conclusion of this critique john will prepare and deliver to the city a report outlining his findings. Second, you asked that the city staff develop an estimate of city cost to support the formula one event. We have requested the fire, parks, ems, police, airport, transportation and solid waste services department to develop an estimate of their cost. Because the site of the event is located out of the city limits these departments need a somewhat longer amount of time to develop their estimates. We intend to get the total cost estimate prior june 23. Third, you asked us to assess the annexation of the circuit of the americas facility. We are looking at that annexation process and will get that information to you as soon as possible. Fourth, you asked steve sexton, president of circuit of the americas formula one to provide information on the number and types of jobs to be created by the circuit of the americas facility and attendance figures for previous formula one events. Steve sexton will provide that information to you during public comment. We are making all efforts to respond to your questions. We understand the time constraint that this project poses and we respect will be provide the answers to those questions that you have posed. Moving on to the other discussion items for today, we will review the local organizing committee request. We will then move on to discuss the agreements required, including the legal consideraons for entering into an introl intr local agreement between the city and the state. We will consider an event supports contract between the city and formula one management. We will then discuss next steps and then turn this item back over to the mayor to administer public comments. As mentioned at tuesday's briefing the city has received a request from circa events localizing committee pertaining to the formula one racing committee. The circuit events local organizing committee is a nonprofit organization that was created to coordinate the hosting of the formula one u.s. grand prix. This loc will act on the interest for the city, for the purposes of interacting with the texas comptroller as authorized by the major events trust fund statute. The creation of a local organizing committee is more typical than not when local cities utilize the city's od to act as an intermediary between the city and the texas comptroller. The loc is comprised of a five member board and the loc must comply with the state's open meetings and public records act. Loc board members include same bryant, president of bryant wealth investment group, ann smoalg, president of hm international, stephanie richmond, owner of richmond international connections, ford smith, president and owner of texas , and wayne hullings worth, attorney for armbrust & brown. The local organizing committee is requesting the city enter into an events support contract to participate in the major events trust fund as an endorsing municipality. Specifically, the events support contract can allow the loc can act on the city's behalf to do the contract for and submit the economic impact study and relevant market area data to the texas comptroller. Submit the initial $4 million contribution to the trust fund on the city's behalf for year one. On an annual basis the loc will submit the audited financial statements, attendance figures for the event and the economic impact analysis for the event. The loc will provide an annual performance fund as required by the state statute. The loc will be reimbursed its 4 million contribution in allowable expenses, which will then be submitted to the texas comptroller. Lastly, the loc has offered a seat on its board for a city appointee. And now I'll turn the presentation over to sabina romero, who will review the legal considerations for the interlocal agreement and the event support contract.
Thank you. Sabina row romero, city legal department. These next two slides represent information we presented on tuesday. These versions have additional information intended for to further reflect what the statute requires of the city and the parties and how the agreements can address concerns raised by council. The slides do include citationses for purposes of reviewing the statutory guidelines which staff has based each bullet and the slides contain an asterisk or two to highlight council concerns. This first slide addresses legal considerations for a major events trust fund interlocal agreement between the city and the state. The metf statute does require an interlocal agreement between the endorsed municipality, the decide, and the state, in order to access funds before the state. The interlocal agreement will include establishment of the major events trust fund, a provision allowing f abscess accessed before and after the event, a provision to allow funds to be made available to pay costs in years, a term of up to ten years with renewal should performance-based criteria be met or automatic termination should the event not occur. And it will include terms regarding repayment of the state's initial contribution. In addition to the interlocal agreement the city will also be providing the state with a formal request letter, the site selection's organization confirmationler, a court of the support -- letter, a support contract and the impact study. This next slide addresses the legal considerations for an event support contract between the city and the site selection organization. The major events trust fund statute requires an event support contract between the endorsing municipality, which is the city, and the site selection organization, which is formula one management limited. The event support contract will include some of the it will allow for the local organizing committee to act on the city's behalf, and it will allow local full-throttle productions to act on formula one management's behalf. It will describe and prioritize the city and loc's financial obligations that will be eligible for reimbursement. And it will include a description of the local organizing committee's performance bond obligations. Those obligations will be for the state's 25 million and the city's 4 million obligation. And finally, a term of up to ten years with renewal should performance-based criteria be met or automatic termination should the event not occur. The city will be basing the event support contract upon the many other event support contracts we've done with the state in the past. Thank you. Questi questi ons for staff? Council member spelman. just a quick one, sabina. You're suggesting you're going to put the other contract, which will automatically terminate if the event does not occur, and which will not be renewed if the performances-based criteria are not met after a ten-year period. Is that right?
Ongoing, on an ongoing basis.
Spelman: okay. So that was my question. If the performed-based criteria are not met in year three, say, what happens then?
We would like to build into the contract performance criteria so if the event is not having the incremental tax return that was anticipated, the city has the option to be removed from the contract. thank you very much. That's exactly what I wanted to know.
Flush. any other questions before we go to speakers?
Mayor, before we conclude the introduction I want to reiterate that on june 23 there will be the council consideration for the two agreements, the interlocal agreement and the event support contract. Thank you.
Mayor leffingwell: okay. Thank you, and I'll reiterate that council will not take action on this item today. There will be no action taken until june 23. So with that we'll go to speakers and we will arrange those who are for to speak first, followed by those who are against. So the first speaker is steve sexton. Steve sexton is for. And you have three minutes. You don't have to run. We don't start your time till you get here.
Mayor, I believe I have some time donate fod me because we have a video -- for me because we have a video here.
It doesn't show here. Those who donate time to sexton could give me their -- okay. I updated mine. Ron cunningham in the chamber? Okay. Mike craddock. So you have nine minutes.
Thank you, mayor pro tem and council members. First let me introduce myself. Steve sexton, I'm the president of circa of the americas. I want to give you a brief background, we're not here to talk about me so I want to talk about the project. I moved here from louieville conduct after running the kentucky derby. After having won the kentucky derby and the thoroughbred championships a couple times, each of those events host from 80 to 100,000 people, in the derby's case 150,000 on oaks day, 150 on derby day. I'm looking forward to building the project here and making a great thing for the city and a true international event. Part of that is being able to hire over 300 full-time equivalent people on the staff, for year-round use of the facility, and a 4,000 plus people on the major event days just like we did in the case of the derby and the kentucky oaks. So I have a video here I'd like to play to give kind of an overview what the project is, but before I say that I'd like to clarify one thing. I've read a little bit of the media coverage, and what -- what I can given the task at hand. I think there's a little bit of confusion at stake, and that is that our partnership, who is investing millions in this project, has expressed and is willing to and will put in the $4 million. This is not an expense of the city. This is an expense to the partnership. So I think there's been confusion about that and i wanted to clarify that and make it very, very clear. So with that I'd like to go ahead and roll the video so you can know what we're talking about. [Playing video]
the pinnacle of racing championships, formula one and modo gp, are events held in the world's premiere destinations, creating week long festivals wherever they go and now they'll go full throttle in austin, texas, at a new facility designed to provide one of the greatest fan experiences in the world. Circuit of the americas. 4 miles long and an elevation change of 133 feet, it will be one of the most challenging courses in the world for drivers and one of the most exciting for spectators. It has been designed for any and all classes of racing, from motor power to human power. But it's much more than a racetrack. It's a world-class destination for performance, education and business. And it's poised to have a major impact on the local economy and the entire region. With features that extend well beyond the pit lane. Blapg [ â™ªâ™ª music playing â™ªâ™ª ] austin, texas is perfectly situated between both american coasts, canada and central america. It is home to thinkers and innovators, to entertainers and philanthropists, to one of the country's most vital technology hubs and to the friendly most welcoming folks in the state of texas. And soon they'll be welcoming the world. Starting with the 2 international events, this pinnacle of motors. [ â™ªâ™ª Music playing â™ªâ™ª ] formula one is the world's most watched sport on television annually, boasting over 600 million viewers. Each season consists of 20 races held all over the world known as the formula one championship. Each vehicle is a modern masterpiece of technical innovation. More fighter jet than mere car. It is the zenith of mind-boggling performance where technology meets glamor. And then there's modo gp. The world's premiere motorcycle championship, an 18 race series spanning four continents and attracting the boldest, of most audacious drivers alive. Stunning maneuvers, adrenaline pumping displays of bravery. Circuit of the americas the is the united states new home for the world championships, bringing the world to us and austin to the world. Circuit of the americas. [ â™ªâ™ª Music playing â™ªâ™ª ] [end of video]
so, mayor, and council members, what you see is truly a world-class project that is capable of hosting international events, but more importantly a facility that we plan to use 12 months a year, 365 days a year. It's important just as we did at churchill downs to be an upstanding and very positive member of the community, and so I think you'll see a lot of integration of community activities out there, with a trauma medical facilities, the parking lots. A lot of those capabilities of facilities are of great use to local authorities. For example at churchill we had the police and fire departments use a lot of our facilities for training purposes, for driving purposes, and for a variety of different events, including the police banquet on a foundation that i personally served on. So we ask for your supports as we move forth. The city has been great to deal with thus far in terms of all the details that go into a project of this magnitude and I'm certainly open to questions. Thank you. thank you. Next speaker is richard suttle. Several people donated time. Laura collins. Is laura here? Okay. Tim jamail. Ashley kegly. Ashley kegly. Okay. Jed buoy. So you have up to 15 minutes.
Thank you, mayor, members of the council. My name is richard suttle. I'm here on behalf of the project today known as the circuit of the americas, which would be the home of the formula one united states grand prix. The video described a lot of the -- what formula one is. It's hard to imagine that austin has been chosen as a -- while it's an honor, it's also a sign of our success in the world to be selected for a united states grand prix race. It's truly a global event. It's third only behind the olympics and the world cup soccer and it's the most watched sport annually on tv worldwide, even though we don't do a lot in the united states, but hopefully that will change. It is watched a lot on tv in the united states, and we're going to see if we can enhance the popularity of it. It's -- again, it's broadcast in 187 countries, over half a billion people watch each race on tv, and the sponsorships and all the things that come with it are really -- really showcase the city. So it's -- I think from an event standpoint it's a great event to have in our community. What we're here today to ask is that the city take advantage of a state program called the major trust fund, which was a program that was set up to secure and put on these types of global events, and the very first thing that I want to make very clear, I'm going to pause because there's just been so much misinformation about this. We're not asking the city of austin to put any of its money into it that it has now. This is an event -- this is a process that we want to set up and reach an agreement with the city to where it pays for itself. The first year we're not asking the city to pay anything to go into the trust fund. The partnership is fronting the first money that goes into it to trigger the trust fund. In years 2 through 9 it is performance-based. The only thing that would go back into the trust fund and trigger the state match would be the incremental increases in the revenue that we derive in our city as a result of the event. So in a sense -- not even in a sense. It's -- we want to enter into a agreement that is a no-risk, no-cost deal to the city. It is paid for only by revenues that come because of the event. I don't know that I could be any clearer on that, but that is the goal, and as the process unfolds and the economic study is done and everybody gets to look at the economic study and everybody gets to analyze it and see where it's off, but the only amount of money that can go into this trust fund is the incremental increase because of the event, and the city is in control of that analysis and how much in the end you choose how much goes into that. And that's -- that is the goal of the agreement that we want to reach, because this thing is going to have a lot of potential. We anticipate that the economic report that will come out, we're hoping that it's wildly successful. We're hoping that it's -- it shows a great benefit to the city, but we're also making sure that it is conservative and make sure that the city is not at risk and this does not cost the citizens of austin any money. It's funded by money generated by the event. I don't know how I can be any more clear on that point. The other thing that this event does is it enables the partnership to create the facility known as the circuit of the americas, and the circuit of the americas is the facility just two miles from the airport in the desired development zone in an area of our county that we've always wanted development to go, and i think that this will enhance that and will really make us go into that area like we've always talked about we want to. What the circuit of the americas also does is it brings up opportunities for the school districts and the colleges and the universities in our area. For instance, the del valle school district, this changes this piece of property from a thousand acres of potentially single-family homes to a thousand acres of a commercial development that will be highly valued on the appraisal and makes a huge value swing and a revenue swing for the del valle school district. In addition to the cash it enables us to do partnerships, which we've already been talking to with del valle school district, to get kids involved in math and science and technology that translates into something they could actually put their hands on with the events and the things that could go on at this -- at this facility. We've also got programs in the wo huston-tillotson and acc and texas a&m and all the colleges and universities have -- I think -- I don't know if it's in your packet, but we can certainly get them to you. There are letters expressing the interest in doing programs here because there's testing and research capabilities. And in addition to the education component of this we have the ability to attract businesses that are naturals for our city, and that is research and development companies that are researching alternative fuels, researching automotive technology for the future. A lot of the technology that comes out of formula one racing eventually ends up into the cars that we drive, and we've already been approached, and I think your chamber would tell you, we've been approached by companies that are now saying we want to locate in austin in and around this track for the research and the commercialization capabilities that in the end will end up with jobs for our folks. So between the educational component and the commercialization component of an area in our desired development zone, just the mir construction of the -- mere construction of the circuit of the americas is quite a feat. This is a facility that, you saw the pictures on there, it's 250, $350 million build. More of a racetrack, it's areas where law enforcement and emergency service providers can train and practice. It's a place we can host conferences coming to the city. It enhances our conference it provides a track where we can do more than motto sports racing but also the possibility to do running races and charitable races and bicycle races, school response erdz. The universities have an educational program where they get together every year and the engineering students build cars they can race, whether they're electric or solar or whatever, it provides an enormous capability providing of providing those services. And the construction alone right now out there i believe it's 17 texas companies are working on this project as we speak. There's over a thousand people currently working on it now, and overall, get back to the theme, if it -- if we can reach an agreement, and our goal is to reach an agreement with the city, it is a no-cost proposition to our city to get this facility in the united states grand prix event. That's what our goal is and I'll be happy to answer any questions that you might have. Questi questi ons? And you're emphasizing there's no cost to the city but there also is an upside potential?
The upside potential is the -- the numbers are so big that it's hard to talk about. But if you look at other cities around the world that hold these events, the exposure, the attraction, the revenue that's generated by people that come from all over the world to see this race, the people that come from all over our country to see this race, we think that it will be -- we think it will be hugely successful. But what we're willing to make sure is if it's not, it's at no cost to the city.
Spelman: mayor? council member spelman. suttle, you're framing this as a call back. The call back is the business locates, it pays its taxes as usual but if it meets its performance standards it will give them some measure of the taxes back. That's the way it works. We get the taxes first until we can verify that performance measures have been met. That seems to be the way you're talking about it here because formula one is putting up the first circuit or the loc -- or somebody is putting up the first $4 million of that first year. You'd be staging the event. We would get whatever tax benefits there were over that first he want, and then -- event, and then if performs standards are met we would verify we received whatever taxes we needed in order to justify 4 million bucks, then we could put up the 4 million bucks for the second event, is that correct?
But it's important. The $4 million is just an estimate that was arrived at for the first one. Years 2 through 9 it is what it is. If the incremental increase is only 2 million, that's all that can go into the trust fund. If it's 6 million, I guess you could put that in and that would trigger an additional state amount, but it -- it is what it is. It's not 4 million year after year after year.
Spelman: okay. That would be -- it is what it is is I guess the question, because if samsung meets its performance targets, we know that pretty clearly because if it's a property tax benefit we can verify that they're actually occupying the property and paying property taxes. If it is a benefit associated with sales, we know how much they sold, we know how much goods they produced. All that stuff is easily documentable. We're dealing here with an event, which is going to be harder to document how much of the sales tax increment is actually due to the event and how much of it would have happened in the absence of the event. So it can be a little bit more difficult for us to do that. And a lot of this depends on how persuasive the economic study that don hoyt is working on now is and how persuasive the periodic, i guess annual economic study verifying what happened in each event, how persuasive that is as well. I wonder if you could speak to how it is that we could verify that we're going to actually make 4 million or 2 million or some other number based on an economic study, given it's going to be harder to count -- hearter to attribute sales tax revenues to a particular event than it is to attribute it to a particular industrial location.
Well, as I understand it, the economic -- the economists all do and i don't, but as it's been explained to me, there's a s out there, including the ones in the comptroller's office, that they have formulas, s that tell them -- as you can imagine, it's not an exact science.
Certainly not. s too but I can tell you how inexactly it sometimes is.
Exactly. And I encourage -- as we reach for that agreement we account for that uncertainty because it's not a science. We know in june of 2012 the extra $50 that was spent spelled out in the -- do we know that that's a race fan or do we know that that's somebody bringing their child to summer school? We don't know that, but apparently the smart people, much smarter than I am, and all the programs, they can get a good estimate of that, and that is something that will be stitched into the agreement to make sure that that happens. Now, obviously if we have a record of junes and it's within a range and then we have a june where there is a race and there's a big spike, then certainly we could all agree, reasonable minds could agree that a large part of that spike is probably because of the event. some research designs are going to be more persuasive than others. When can we expect to see that first study? You were suggesting making the end of this week. That seemed a little bit optimistic.
And that probably is optimistic. But what we have done is the local organizing committee has engaged the services of don hoyt, and don hoyt is the economist that the city uses on all of their other trust fund events that they participate in now. I think there's 18 of them. And don hoyt has got a lot of experience in doing this. And we picked don hoyt because, one, we think he's the most conservative of the group, and two, it's because you guys have always used and it's always worked well for you in the past. When it will be done I'm not sure. We are -- we're telling him it's got to be done quick because it's going to have to go through a review process both at the city and then I'm sure that there are people in the public that are going to want to review it, and that is we welcome that review. if -- I have no idea how long it takes don hoyt to produce these things. I understand that -- I read a couple of his studies that he produced for us before. I have a sense for what's involved, and it looks like it could get fairly involved. If he cannot produce it more than a few -- more than at least a week before the 23rd of june, is there a problem from your client's point of view if we postponed action on our activity on the 23rd of june to give us time to read that study?
It would depend on when that is postponed to, because the timing of this is, we were unable to bring this to you more than a year in advance under the statute, so we're right at the year now. The study gets done and the comptroller has 30 days to look at it, verify it and determine what the numbers are. Because in addition to you looking at it the comptroller's office will be looking at it also. And then the fund is funded and then the money starts going out. On the back end of that is a contractual obligation that the partnership has with formula one that the sanction fee 2012 season is due in july. And part of our proposal is going to be that part of the trust fund funds be used for sanction fee. So it depends on when it gets postponed to, but the back end date is we need to have it, whatever the fund is, funded in july.
Spelman: okay. So sometime in july would be a necessity and we could talk about the exact date in july?
Earlier is better because --
spelman: I understand. Well, and the earlier we can get don to produce that study, the better it's going to be for all.
I understand. second issue, and this is a very quick point, we're going to get one study from don, which is prospective. We haven't run the event yet and this is going to be based on your best guess when the event does take place in, I guess it's june 2012. We'll also get a postmortem on the event from june 2012, sometime in july or august, I suppose, and that -- because you'll actually have the benefit of having an event, that means you'll have a lot more information to do the postmortem than we have prospectively. That means that the design for that study can be different from the design for don hoyt's current study. Is that right?
That's correct. The study actually will be done year after year after year. Every year we're going to get a new look at this to determine the financial health -- in addition to hoyt's prospective study, which we should be getting as soon as he can produce it, will we also get a research design or some sort of a proposal for what that postmortem study is going to look like a year from now?
I'm certain we could. if you could, that would make it a lot easier to get a sense for what kind of information will be available to us in june or july or august of 2012 to verify that, in fact, you have met your performance standards and that it does make sense for the city to participate in this trust fund.
And again, we want this to make sure it -- it only makes sense for you to participating if you're benefiting. absolutely accurate, mr. suttle. I could not agree more.
That is our position as well.
Spelman: thank you. mayor, I just have a question -- and i would just add that the only meeting we have in july is july 28, just for everybody's planning purposes. Council member cole. again, I wanted to follow up on the timing of the information and make sure that we were clear. It's my understanding that the statute says no more than a year but not less than three months. So I'm confused about your deadline when you talk about july in the sanctioning fee.
Because the fund is the statutory framework for doing the fund. It's one year and three months. That's correct. The contract to bring this worldwide event states that the sanction fee has to be paid in july. So it's separate from the statute -- the sanction fee is not spoken to in the statute. The sanction fee is a -- is a reimbursable expense that is eligible to be reimbursed you said the mainly events -- under the major events trust fund. In other words, the sanction fee is an eligible expense to come out of the trust fund. The trust fund has to be formed before that expense can come out. That expense is a contractual obligation between my clients and formula one that has to be paid in july.
Cole: okay. Because I guess I'm getting at the concern for additional information that council member spelman was putting forth, because it's my understanding that we will sign, essentially -- seal the deal if we decide to, on june 23. So if we have the subsequent information in july and august is not available before june 23. Am I correct about that?
No, I'm confused, because -- well, I don't want to be corrected about that so I'm imlad -- correct about that so spell it out.
Before the 23rd we're asking that you initiate the process for year one and subsequent years, to initiate the major events trust fund. In year 1 you're going to be counting on an economic study that's going to be reviewed by your staff, the public and the comptroller's office, and everybody is going to have to agree that the numbers are about right. On the 23rd you're going to be asked for ask for year one and following years but in year one we are funding the first money in that. so are we only signing a contract for one year?
No, the first year, though, you absolutely have no risk because we are funding the amount of money it takes to trigger the trust fund. -- The partnership is funding. So there's no risk to the city year one. Year two, another study is done and it determines -- an all agree on -- eventually we all agree on what the incremental increase was that was eligible to go back into the trust fund. so we're signing for 1 through 10, but after 2 through 10 there are performance-based criteria that you're saying will kick in and that's supposed to protect the city?
Cole: okay. But we are signing for those subsequent years and so we need to know as much information up front as we can, and there is some information that we will not have before the june 23 date, even if that information is -- or we just won't have it, is what you're saying.
Well, you won't have -- you won't have any actual information about the event because obviously it hasn't occurred. right, but -- well, I think you understand my concern. Thank you, mayor. council member morrison.
Morrison: thank you. I have a couple of questions, richard. First of all, we've been talking about $4 million, and really, the -- am i correct to understand that that $4 million is the target because you said that it triggers the trust fund, but really it triggers the amount that covers the sanction fee that is what you're looking --
it's actually -- when this was all looked at a couple years ago and there were some preliminary analyses done, it appeared that a very conservative guess was the maximum that the state could put in and feel good about it, and it's a set amount that was appropriated, that that dollar figure was figured that that's safe. 25 Million from the state is safe based on what they have looked at in the last few years. If you back into the [inaudible] formula, that backs into roughly $4 million that take takes to trigger it. Because it's a match. The city puts in x, and it's -- what's available in the state appropriation year one is 25 because that's what they consider to be a safe number. The 4 million is what triggers that. After that it is purely performance-based. and the 25 million does happen to be the sanction fee; is that correct? Or is that a private number --
that's a private number, but I can tell you it's in the range.
Okay. And would we expect that sanction fee to stay fixed or it may change over ten years?
Based on what I've read about formula with that, that sanction fee is probably not fixed. But again, the trust fund is not liable for that sanction fee, nor is the city. That is purely a partnership expense. a partnership expense that can be reimbursed from the trust fund?
Morrison: okay. And then I want to go back to one other thing. When we're talking about the 4 million, that's just the estimate for the first year -- or that's the target number for the first year based on some of those estimates. And if the incremental tax does not generate 4 million, then 4 million doesn't go in, but if it generates 6 million, 10 million, 20 million, that all goes in, if it's over 4 million.
It could. The city can choose to put whatever it thinks the incremental increases is in, or less. We can't put more in. I wish we could. I wish we all could put in a dollar and get 4 back but it's eligible revenues. and where is it -- is it in our contract, then, for instance, if there's a maximum that we would ever put in or --
there could be.
Morrison: okay. Thank you. and I'm sure this is obvious to everybody, but the relationship between 4 million and 25 million is simply based on the ratio of the amount of sales tax the state gets, which is 6 and a quarter versus the amount that the city gets, which is 1.
Correct. so four times 6.5 is 45,000.
I took every math class twice, so -- [laughter] --
mayor leffingwell: okay.
And then the other additional revenues that are eligible to go into the trust fund in addition to sales tax are the hotel taxes, the alcohol tax and the rent car tax generated by the event.
Mayor leffingwell: okay. Thank you.
Thank you. next speaker is david herpdz. David hernandez, and you ha -- david hernandez. David is 4.
Good morning, and thank you for the opportunity to speak to you today. My name is david j. Hernandez. I'm a long time resident and businessman of austin. I've enjoyed living, working, volunteering, being part of this great community for about 11 years. Formula one, while a foreign concept for some, is actually what the united states of america, texas and austin are all about. People from all over the world, from every culture, from every background that speaks every language coming together in one location. We welcome the world to formula one -- I'm sorry, we welcome the world with open arms. As you likely know, formula one is the most watched sport on earth with over 520 million viewers, more than football, soccer or nascar. To have 300,000 global visitors descend on our great state should be considered a great privilege and an honor as we play host to the race next year. As with any great initiative it takes money to make money. We've all felt difficult economic times however, speaking for the community, we can't wake for that weekend to arrive. Clientele means business. The magnitude of this event will put austin on a global map and encourage further investment in our town. I understand this is difficult for some people to grasp. The track won't silt idle. It will be used for other racing. Who knows, maybe we can a portion of acl so zilker park grounds are not destroyed. Maybe we can have large bands from "south by southwest" play there. Becomes it becomes a venue of education for our children, what they can learn about car safety and why they can't text and talk while they drive, which is a huge epidemic in this nation. In addition to concerts it could be used for worldwide fashion events which would finally put austin on the worldwide fashion scene and perhaps one day soon we can say, austin, milan, paris, london and new york in the same breath. Lastly, the facility would be ideal for human powered events such as charity walks, marathons and bicycle races. Maybe we can think about tour d austin. In closing, as an austin citizen and fan for over 21 years I hope I have communicated my enthusiasm, my passion and the benefits to this city I love so much. Thank you for your time, a again my name is david j. Hernandez. God bless texas and thank you members of the council in advance for your vote to help move this process to the next step. Have a fantastic day. thank you. Daniel grosser. Daniel you have three minutes.
Good morning, mayor, and city council. The only time I'm in front of a mike is care yoke I and I -- karaoke and I promise i wong sing. I'll go through -- basically my name is dan grosser. I'm a producinger with f 2 films. We have heard so far from people who have been in industries, going to be involved with formula one with the race, construction, services. I'd like to express support for formula one and other events coming to the facility. On behalf of musicians, graphic designers, support designers, support crew and other talented members of the local creative community. I've lived in austin for about four years but I've been coming out here for acl, "south by southwest," and in my previous life i was a air space engineer. I was a rocket scientist, in actuality, and I've lived in a lot of cities and one thing we have in artist is a great creative artistic vibe, which I didn't see in a lot of cities I lived in. One way that this creative vibe can diminish or disappear is if the creafts in creatives in our community don't get paid, don't have opportunities. Formula one coming to town, movement oda gp, and other events will be operating that facility. They present the potential to create a large number of opportunities for people working in the creative sector. So how do people in creative community benefit from all of this? Well, I work for f 2 films for a film production company and we're putting together a marketing program for a large company I won't mention that's going to have involvement with formula one, and part of this marketing program will involve the web series so we're going to employee actors, musicians, crew, all kinds of people as with "south by southwest," rot rally, we bring an influx of visitors from out of town, we bring their money and their spending, a lot of people will be coming here for formula one. They want to see what this live music capital of the world is about, we have plenty of musicians and artists who will answer that question. The bottom line, formula one and other he wants coming this facility, certainly the americas, will create a lot of economic opportunities for not only people in the construction industry, service industry, but also in the creative community. People like myself. So I understand we're in tough economic times and i think the way we get out of this situation is to create jobs, to bring jobs, to bring outside revenue. So I ask -- so I ask the austin city council -- thank you for your support in bringing it to austin. I don't know if you can tell but I'm a big race fan. Nobl help create employment but it will create a lot of fun things to do here in town. So thank you very much. thank you. Benjamin pidolski. [One moment, please, for ]
welcome. You have three minutes.
Thank you, council. Today you will hear all kinds about stock, major events trust fund and why you should or should not apply for the rewait in connection with the formula one grand preto be held in our city next year. Letny clarify what this fund does for the state and cities who host events like this. The fund a revolving loan for events leak rodeo, basketball, nfl football and champ car racing. Yes, you heard me right, car racing this sloan paid back in frul sales tax proceeds -- paid back in full from sales tax proceeds. Monthly sales taxes paid to the stay will show a large spike. They take the money loaned to the promoters from these increased sales tax proceeds and any excess goes into the state's general fund. It's a simple bank deal, loan money out, loan is repaid with interest from the excess sales taxes and the fund waits for the next applicant to draw from it it. It. It f the event never happened there would be no excess sales taxes and no new glut of money floating around our state. The primary argument against f1 getting this fund sergeant state and city can't afford it. The real truth is, we can't afford not do it. The state's numbers are easy to ridicule but they can only scratch the surface of the economic impact of events such as these. Fan a spends money at establishment b and the state collects the sales tax. That is the easy part for the state to see. There is a spike -- what the rest of the equation is, is that establishment b pays state franchise taxe quarterly basis. The state see as small rise in franchise taxes and then establishment b buys something from establishment c with monies they got from fan a. And they pay sales tax to the state. Franchise taxes are recognized from that establishment and it goes on and on and on. It's taxed again and again and again. The state gets that tax for budget item, things like teachers, schools, public safety and roads. So you see how it can be difficult to nail down the exhibition impact to the initial sales tax. There is no doubt it has impact. Jobs are created, money is spent, economic growth continues. The question is, should the state use our money in this fashion? Only attendees of the events have donated. Myself and 150 to 200,000 of my closest friend willing descend on austin and spend an average of $1,357 a day stores, restaurants and hotels, so please, give this opportunity a chance, apply for the fund and see what comes from it.
Austin has choice --
thank you, that was your time. Bob lander. And bob lander has three minutes.
Good morning, mayor, council. Thank you this morning. I'm slightly biased, as you all know. It is no surprise that the visitor industry thinks this is a good deal for austin. I really want to talk about a couple of quick things and answer any questions you might have heard out there as far as viability goes, what we're hearing as far as what we might produce, et cetera,est, what our stre have been and the other cities we talk to who now participate with races in other places but as far as the trust fund goes, let me address that for a second. We've been using the small events trust fun for several years it hasn't been brought up but it is interesting to note that prior to three or four years ago this legislation was curiously crafted in that only the cities of houston, the met metroplex and san antonio were eligible, vis-a-vis, their population. And with the help of our legislative team, we went to the legislature and asked them to change it with help, we did get them to change it and we've used it 18 to 20 times on these events and it has come in on the money every time. The process at the comptroller's office we found to be extremely sound on the back end so the process is in place to do it, as you call it, the post mortem, thank you. And it is right on, every time it is paid back in excess of what we thought it would and this is one of the few events we would invest in in the city. And we invest in a lot of events, incurred expenses. This is one event in using the trust fund we can recoup our expenses for the event. As far as the feedback we have gotten across the world, the interest through our office, through our efforts on the ground, all across the world have been astronomically changed since this announcement happened. We think it will change the face of how we market the city. I think, you know, one thing we did not mention is that when fan a spends that money, and leaves the tax dollars, he then goes home as we all like to say, and that's the important thing to note. The economic analysis that we're, you know, we can all be skeptical, understand that, but sometimes, you know, your eyes spin because of the numbers in phoenix, they had a situation they're doing an economic analysis on the raceway in 2005. They did one, people said this can't be right, it is 150,000 attendees and the economic impact, this was done by the track, 473 million, so they said, no, this is being redone so they had the arizona state university do it, they came back, actually was 475 million. So we think this is a great partnership, would be happy to answer any questions you all might haves too what we're hearing out there in the tourism world.
Thank you. Next speaker is matthew payne. And welcome. You have three minutes.
Thank you. Mayor and council, good morning, my name is matthew payne, the executive director of the austin sports commission. We were a division of the convention and visitor's bureau and we serve the same purpose, to market the city of austin and boost the local economy by attracting visitors to our city. Specifically, our mission is to recruit, retain and sporting events to austin. Our office utilized the events trust fund as we've mentioned here before, similar to the major events trust fund and we have been doing so since 2008. We deal with smaller numbers than the major fund, but the principals and process of the two are very similar and have the same desired effect. lander mentioned, the reason our office has the and the to apply for this funding is because we noticed that competing cities throughout the state, houston, dallas and san antonio, were already utilizing the fund to attract sporting events to their area. Back in 2004, houston got the major league all-star game, san antonio received the final four, both of which were alwaysing the fund process of this trust fund. Since 2003, they and other cities in texas have used it countless time tops lure high profile events to their city. However, what we discovered is that during this early period of the trust fund, austin was not eligible to use the fund because of the population limit. You had to be a city of one million people to actually apply for the trust fund, so seven, our office lobbied to change the language want to set that population limit to a lower number, allowing cities like austin to take advantage of this funding source. And with the help of the city and local state representatives, we were able to get that done and starting in 2008 we've been able to out lills the event trust fund -- utilize the event trust fund for 20 different sporting events. This it could have been in any city in the country but they chose austin for their sporting event. We hosted the usa boy's volleyball national championships which down in 8 million in direct spending impact. Just in the past six months 2011 austin has hosted the ncaa swimming and diving nationals, usa football, team usa verses the world football championships at chapparal stadium, and the taekwondo open national championship. The trust fund has brought over 76,000 visitors and over $58 million to the city just in hotel expenditure, food and beverage entertainment and shopping expenditures. The local tax gain has been over 1.3 million on these events. Just like the arrangement being discussed today, every dollar the city has put to activate this fund goes directly back to the city 100%.
Thank you very much. Julie hart. Welcome, you have three minutes.
Thank you, mayor and council. I won't take much time. I'm in support of bringing formula one and I hope the council will be in consideration of entering into this sport eagreement, the major events trust fund. I'm obviously from the hospitality industry, we see this as a huge opportunity, but the finance part of me listens to the questions you all have and I thing that I've heard and we're concerned what is this incremental $4 million that is going to go to the state, because ideal three will come to the city. The by eat it of the event -- the beauty of the event trust fund, it does come back to the city. The city can apply tore reimbursable expenses to host this event so just like having general fund money held in escrow by the state. Just wanted to make that point, encourage you all to do this. Understand it is a no-risk, no-cost opportunity for us and hope we will move forward with it. Thank you.
Vance macundo. Welcome. You have three minutes.
Good morning, mayor and council members. My name is vance macundo. I'm a 30-year resident of dale valley texas. I against you could say the track in my backyard. I started off wonder going this track, what was going to happen. Got a real interest in it. Started sharing information with my neighbors about what was going on, explored information with the owners and the principals involved and we've got a lot of positive response. We are looking forward to having road improvements, there is a lot of things we need out there, infrastructure, so we're hoping that you vote on this and approve it and appreciate your time. Thank you.
Matt sager. Donate to who? Anyone that wants to. Okay.
Herbierto sanchez. Not in the chamber? Timothy wood. You have three minutes, unless you want matt sager's time.
I believe matt arranged to donate that to somebody else.
I'll wait for somebody to claim it, then.
I'm not a best owner or an economist or a rocket scientist grocer but thankfully it doesn't take one to understand the obvious economic benefits formula one will bring to the city and travis county and central texas and the whole state. All you really need do, I know this isn't practical for everybody, but if you've ever been to a formula one event in one of the other cities you can tell that most of these cities are like austin, they're vibrant communities that embrace the arts and music and having people visit them and intertaken them. A entertain them.and austin is like that. If you bring formula one to austin, you're going to see festivals associated with grand prix week and more vie brance in the community. It is not going to hurt the community, it is going to enhanses the community. I want to express my support for floor one and ask for your support, as well.
Thank you. Michael verweda. Scooter . Is scooter in the chamber? Okay, so michael, you have up to six minutes.
I'm the owner of zinger hard warp and general merchant. I'm here for the retail aspect formula one, there won't be a justin boots or cowboy hat left on the shelf once the europeans leave. Retail, when it comes to this is emotional, it is hard to judge it but there is a pent-up demand for formula one products, merchandise, texas products from all of the people who are going to be coming. It won't be just the one week, it will be an on going basis. Once they get exposed to it, online sales, mail sales, all of that is going to be huge, it is going to be very difficult for us to be able to turn that down because, if you've gone to monaco, gone to montreal, gone anywhere else, these people spend an immense amount of money in the retail sector. I'll go ahead and turn over the floor to someone else. Appreciate it.
Sandra sondreger. So sandra, matt is donating three minutes so you have up to six minutes.
Thank you, matt and good morning, everyone. My name is sandra sandreger, I'm a realtor here in town and also the owner of a performance driving school that I fun harris hill road not far from here. On a truck much like my staff of instructors teach ordinary drivers at speed and a safe environment, this new track create as wonderful opportunity for me and my students, should they lease the track to us for that purpose, so hopefully I can help out with all the stupid drivers on the road. I can't express to you the draw that this event has drown to austin. When they announced this event, I'm part of the national car club, as well, my e-mail inbox blew up, I couldn't get to them fall one day. If I could have put everybody who asked in my house for that weekend coming up, my house would be filled 10 times over. I live in hyde park, I can't put that many people in my house unless I stacked them like cord wood. I've already booked 14 rooms for my friends in advance so they will have a place to stay. I've also attended seven other races around the world. I think the scope 246 event is going to be unimaginable to everyone here until you actually see it in terms of the financial and economic impact to this town. I think it is going to be huge. I've been to, I went to the shanghai inaugural race, I can tell you there will probably be traffic snafus but not anything you can't get through it can't be as bad as shanghai. F1 also brings other races. I realize the financial impact of this is something you're mulling over quite a bid by the in terms of whether you actually approve this money to go to formula one, and if you get formula one, you also get moto-gp, als and host of other events as a package. And I think that's important to remember, because while the city of austin may, and the state, with the major events trust fund, it may be a wash for formula one, I kind of doubt it, I think it is going to be better than that, but when you get that, you also get all these other events. The formula one race will be on the same scope as south by southwest, the moto event will be on the level of acl and i don't think we can afford to turn away two or three more ACLs. My notes went black here. There's been some discussion about money available for teachers. The money that is going from the major events trust fund was never available to teachers to begin with and I think some people have missed that point. And I think it's important to put this into perspective, too. The 25 million they're talking about for major events trust 2% of the entire state budget. To put this in perspective on apersonal weather, if you make 50-k a area, you take a dollar out of your monthly budget and you get that back. We have the opportunity to bam bigger and better city than we are now. I feel strongly if this was a huge music venue being built there wouldn't be any public out free. It is about cars and how it dun fit their vision 6 tune but we have our opportunity to create our vision of austin and I would like to see a center of innovation and learning and technological advancement. If we get formula one here, we will get automotive industry people here, I talked to some people from the international part of the chamber of commerce a couple weeks ago and they said their phone has been ringing off the hook, people wanting to know how do we get land close to this, how do we get in, where do we go. Thing is a great opportunity for austin and I hope we seize it with both hands. Thank you very much.
Thank you. Ken adams. Donating time. Glen nordel is glen in the chamber? Okay. So you have three minutes, ken.
Good morning and thank you for this opportunity. I'm the executive director of a nonprofit based here in austin, it is called "your ride is here" and we fund transportation to texasians fighting cancer, make sure they get home to the treatment and back. Without the support of a lot of local businesses, individuals, private companies, we wouldn't be able to fund those rides. It's very, very difficult so we rely on the generosity of others as a community based program. We've heard a lot about business revenue, the generation that the funds would do, the track, all of 9 good things that happen. Without those good things and those opportunities, those don't trickle down to the rest of the organizations in austin, those who rely on others. So I hope that you consider that second tier that's just below the business owner, just below the corporation, all of those things that they're going to benefit from will eventually trickle down to everyone else and we really need that support. So please consider those folks, as well. Thank you.
Thank you. Lance stump. Welcome, you have three minutes.
Thank you. I'm the sitting president of the hotel lodging association. And we both endorse formula one racing as well as the moto-gp from. Our employee base to the tax revenue that it is going to generate for the city. We look forward to the international traveler coming in who generally has a longer stay than most north america travelers, so that definitely keeps heads in beds and that's what we look for. We're 100% behind the acbb and what they're doing to help promote this. Thank you.
Allan peas. In the chamber? Not seeing him. Oh, there he is.
You have three minutes.
Turn the timer off.
We have a timer.
I'm 100% in favor of formula one coming to austin, texas. But there are several reservations which I have, and I'm going to address in that three minutes right here. I'm a resident of austin for the last 10 years, he work in the motor sports industry, I've conducted over 500 events. We have three things to look at in this. Weather, public safety, and traffic are going to be big problems, no matter what we do. Can't change the weather, can't do anything about the traffic, the roads that are there are the roads that will be there. The cost to the city, we just heard from the general manager of the hyatt regency, I think that is an excellent hotel, actually I stay there sometimes myself. Incremental tax which the city will receive on top of anything else assumes that there will be money coming into the city that would not otherwise come into the city. The w, prince, today, is sold out 100%. There are no rental cars available at the airport. In other words, we're working very toward capacity right now. We're going to follow montreal, which is tough. That's this sunday. And montreal is probably the most popular circuit on the race. So what I'm going to ask is that the city council work with formula one to make this happen in a fashion that will reflect well upon the city of austin because if it's not done right in the first year, the second year people are going to watch it 500,000 people are going to watch it on tv. So we have a lot on the line right here. I DON'T HAVE A Ph.D. LIKE Councilman spellman, but i respect councilman spelman but i have experience on a much smaller scale than this because this is a huge, huge scale. At the moment I'm working an event in monterey, there are six companies besides mine working for one manufacturer on that event. There will certainly be people coming to austin, but try to remember there are only 22,000 hotel rooms in the city of austin, 35,000 hotel rooms in the county of traf industrials. Where are these -- of tra vis. Where are these people going to stay? If the city doesn't work together with formula one to work this out, they're going to stay everywhere, in addition to here. We really need to get on top of this as quickly as possible. I'm done.
All right. Jake hambrick. Welcome, you have three minute nice won't use it but good morning.
I want to thack time to say I'm in favor of the racetrack coming to austin. The master student in yearing at texas state, f1 teams have come to the engineering department where I'm in school there, and used us as a resource, they plan on using us as a resource for technology advancements and everything else. I'm also an entrepreneur and homebuilders. Ed like to get your card, as a matter of fact. And I'm looking to all the opportunities this will (as far as construction and development in the area. There is a problem with traffic and everything else but there is roads that can be built and a lot of things that can be done stimulate the economy and that is really all I'm here to say and I appreciate it.
Thank you. Greg chanen. Rosa. In the chamber?
Good morning. I'm here for obvious reasons. I'm very excited about the possibility or the coming track for run eying vents. And we -- running events. We know this town is also a very active community and the track being just a little bit longer than the 5k will allow as you great venue to host fundraising 5-Ks, I'M EXCITED ABOUT IT, I Think it will be fun to run on and good for the community and the endurance community for cycling events and running events and I want to show my support today.
Thank you. Sonny morgan. Welcome. You have three minutes.
My name sonny morgan, I'm a homeowner here in the fine city of austin and also the owner of bentley of austin, rolls-royce of austin, those are pretty strong bands and I took a lot of time to decide, because I had the opportunity to come here, and took an opportunity to decide what town I wanted to be in. And I picked austin, texas, because of the aggressive, the forward thinking part of our city. I brought you all, and I don't know if you've had a chance to see any of these but I brought economic impact studies on other steed ways. Here is one done by the university of north texas on texas motor speedway. And I'm just going to read one of the little paragraphs out of here, it says the study finds that texas motor speedway boosted regional economic activity by 87 million, 179,000, 360, those are hard numbers to read in 199 23r-8 racetrack operation and supported 5300 jobs, paying 122 million in earnings, in addition expenditures by speedway visitors from outside the region are estimated at 22,000,985, further increasing the total economic activity. This study was done in 2000. Since then they have irl there, another nascar race, they've got a full-time racing school there. It goes on and on and on. 365 Days a year that track is open. You can go there any time, they have swat meets, everything I you can think of under the zonal and this was done in 2000. There is an economic study, it is over we will. Ing that was done -- overwhelming that was continue to by the north carolina motor industry in 2005 done by the university of carolina. And it's got staggering numbers and it goes through a bunch of stuff. This was common 2005, and I hope that you guys can read this because it is unbelievable the numbers that are in here. Formula one, I couldn't find a lot on feasibility in the united states because that is not one, but did I find one in bahrain, and you need read this too. It is unbelievable the dollar amount that's generated out of these races. We're looking forward to this track. It's going to be a great thing for austin, texas it will put austin, texas on the world map, which I think we're ready for it. I really do. And I do appreciate you listening. Who do I give these to?
Thank you. Next speaker is dilum. Welcome. You have three minutes.
Mayor, councilors, I want to thank you for having me voice my opinion about this. I'm a retired businessman here in town. Now I'm also a president of a large foundation here in town, as well. So prior to that, I also started the first electric car company here in austin which I tried to give back to austin but was one of those difficult things to work through, so during those tough times, we also donated a large portion of property in dale valley for a meditation center and a lot of people would say you will be the first one opposing all that happening but that is not the case here, I'm supporting this because it is just amazi f1 can do for austin so I'm here 20 support f1 and whatever they plan to do for formula one. Thanks.
Thank you. Andy martinez. Welcome, andy, you have three minutes.
Mr. mayor, city council. How are you this afternoon? I guess it's still morning, i guess. I'm here to express my support, the chamber support for this initiative. I guess comes as no surprise the chamber of commerce is very, very focused on job creation, economic development and education, and with the circuit of the americas being proposed as it is being proposed, I think it will have a tremendous effect on all three areas. I think it will be great for the city, great for economic development, already discussions going on with dale valley and the university of texas in how they can use the facility to encourage students to take more stem courses and work with them on how to become more engaged in the community. There's, formula one is one event that is going to take place there and this tremendous opportunity for us to use that facility for other venues and destination points for visitors to the area. I had the opportunity last week of being in washington, d.c. Working with some chambers from across the country, every one of them as soon as they found out i was from austin wanted to come and say how did you do that? How did you get that? That's awesome. If you guys don't want it, we'll take it so we are very, very proud and pleased to see that formula one and the circuit of the americas is coming to austin, texas. We all know the wonderful quality 6 life that austin provides to the community, to the population, and to all the residents in the area, I think this will add to that. I had the opportunity to bring some folks from mexico a couple of, few weeks ago, and as soon as they heard formula one coming to the area, their inten in a went up and said -- their antenna went up and they said, wow, how do I get there. Form is huge in mexico. Tremendous impact, great visibility for the city, it generates a lot of positive things for the community. A lot of growth and opportunity for the community. Once again, the chamber is very much in support of this initiative, and we're here to help. Thank you very much for your time.
Thank you. Andrew crane has also signed up, willing to answer questions, but not wishing to speak. And the following are also signed up for but not wishing to speak: Mike, braden, ali, leoni, sandra west, aaron white, april watanabi, jeff pawn, david linsted, julia hilder, luke donaldson, jessica englehart. Laura coons, virginia, susan, jessica ferar, ryan orandorf, steve lenier, jenny, greg barton, sebastian, rogelio, juan, jessica gomez, russell, artieda, paula, armando, shelly, fernando -- [names read] [reading names] we have a few minutes remaining, we will start with those signed up against. We won't be able to finish them before we have to break for citizen's communications and part of our executive session. Before we come back and finish this. The first speaker is richard victoran. Donating time is jeff jack. Lamp reacres. Larry acres. Larry is not in the chamber. Steve koch. Okay, larry acres we've got. Steve koch. Okay. Stephanie collins. Stephanie collins has to be in the chamber to donate time. If she shows up, I'll give you the additional three, but right now you have 12 minutes. What's your name?
Donates time richard and now you have 15, which is the maximum.
Mayo I'll try not use it will. Mayor, still council, city manager, city attorney, I'm friending our formula one incentive study today, audits in the public interest. Flip the slide please. Thank you. $290 Million over 10 years, a total subsidy to formula one for the major events trust fund will be over one quarter of a million dollars. 250 Million from the state of texas paid directly to the formula one world championship in london, england, and at 120 annual lots -- at 10 annual lots. Formula one is a sport largely for the very affluent with FINANCE IN RED Mc[l0combs and bernie ecclestone, once thought to be the richest man in England. Start with a certification learn. A little over a year ago before anyone knew formula one was come coming to austin or texas, formula one account certified that formula one management in england would receive 25 million a year for 10 years for formula one. We believe a certification was con contrary to law. She issued a certification on may 10, 2010, senator wattson's bill 1515 states that an metf certification cannot be issuednal sponsoring city makes a request to access the major events trust fund so as the statesman reported, we kind of have the cart before the horse. Next slide, please. The controller's economic and physical estimate of formula one, the estimate was prepared by roberd wooled, manager for the local government assistance division. Notably, this estimate has been don hoyt, the consultant retained by formula one-to-the independence economic impact study upon which down sill will base -- council will base I had decision. He manage teds to domestic managed it through severallegislative changes since its inception in 1999 it might be use 68 to look at estimate. A tiny print up but what the comptroller has done add up all the economic activity from the event, lodging, alcohol, food, tips, entertainment, retail, other ticket sales, to come to a total number. Then in that midsection she has done her economic estimate 6 direct and indirect and the physical impact. In the bottom right corner you will see $29 million. That is where she gets the 25 from the state and the four from austin. Also significant on here sull see 130,000 fans, 75% coming comingfrom out 6 state, 97,000. Next slide, please. What we know about the estimate, through open records requests we were able to obtain the data and calculations used to produce the estimate. Notably, the estimate was produced after the comp troller issued her certification letter promising bernie ecclestone 25 million a year. We found gross error in the estimate. By fiscal calculation, I mean the estimate of the tax out flow. We believe the estimate was forced, perhaps even falsified to produce an amount sufficient to match the 25 million promised to mr. ecclestone. The estimate was not independencely produce bid but we will let you form your own conclusions. Next slide, please. What you see on the ride is the feeder data which we did our forensic work on. The estimate assumes, for instance that each and every out 6 state visitor, 97,500 will pie a hotel room alone. This is true, this is the hospitality visitor, a behavior, visitor may be one a room, hospitality is north of two. For instance, if a family of four attend, they will rent four rooms, that is what the controllers assume in the estimate. That is one thing she used to puff it up. This inflated the economic 20 million and the occupancy tax revenues by 2.5 million. It assumes every visitor will pay a 10% tip on the hotel charge this yomp stated the economic estimate by 4 million and the tax consequence by $4 million. This is a double error. It applies to tax which does not exist upon an economic behavior which rarely exists, if at all. There is objective area, throughout the calculation the comptroller scries sales tax rev for gratuities, they are absolutely not subject to sales tax in texas this overstated sales tax revenues by over a million dollars. More objective area. Mysteriously, food, drink, shopping entertainment used a 4.5 day stay. The calculation at the top right shows the average stay to be 457 days and this inflated tax revenues almost two million. Another error in tax revenues, it may be a raw plug in her estimate. 7 of the combined tax estimate does not exist because it was exaggerated or there was an error in the calculation or the tax calculation was in error. Next slide, please. Error and exaggeration in controller's estimate attendance. It likely yomp states the out of state attendance. The additional economic activity and results retail tax tate from out of state visitors, otherwise it was just, texans paying for the track. Formula one's own litture reports that englandary silver stone race attracted only 3% out of country. It texas experiences the same results of england it will extinguish the major events trust fund. Error attributable to the controller not properly limiting the incentive increase to the economic sift. The major events trust fund restricts incentive to the increase in the economic activity from the event. You've heard the every muchs attorney richard suttle state it is only for the incremental increase and the city's represents from the economic development department. Austin's tourism and hospitality econ is variously 67% utilize. We own those revenues. The most fundamental revenue cat collation, she awands the f1, part of the economic activity, part of the tourism and hospital tally which is utilized and we collect taxes. Because of its size, f1 will completely displace the existing lodging economy and specific portions are the restaurant and entertainment economy. No one by f1 fans will be larging in abi that week. It is not based on the delta, as the law requires thisser report thiser report caused 19 million to be yomp stated but the exact amount requires needs adecisional analysis not within the scope of this study. They've never found significant impact for major sporting events. I'm not talking about the sporting economy at large, I'm talking about a one 46 time sporting event. They look at the tax receipts before that month, year before and the year after. They find barely a blip. Also note the for subject retail taxes, which austin receives from approximately 65% of the economy will now be directed to formula one in this case via the hosting, not the city revenues. The economic impact study g does not replace the displaced economic activity and he has erred as well. The controller's estimate is not conservative and it is not safe. Will f1 cause austin to incur uncompensated public expense? With 97,000 out of state visitors there is absolutely no circumstance they won't cause more operating expense. The water utility and infrastructure. We take note with the fiscal note attach tight jen dah item. It is -- agenda item it notes there is no impact, and we believe they were saying "not". You know, monday when I asked about the accuracy of the fiscal note, deputy dir gonzales contradicted, he said the information would not be available until the june 23 council meeting. You know, I against the one thing I would say is we need to slow to down, and the enhanced process for economic development. Will you flip the slide, please? During the council work session on tuesday, staff from the city attorney's office stated enhance product says only implied to chap term 380 agreements. If one looks in the scoring matrix it looks at tax financing. It is in chapter 311, not 380. Furthermore we can see no language want in the adjacent ordinance that state has is restricted to chapter 380 agreements. We believe it should provide economic proposals. Closing comments, I'm scheduled to lay out the forensic analysis to the city auditor's integrity on moorch of next week. For your assurance, city staff will be verifying the problems we found in her work. As a bit of third party very any indication as the value to an f-1 race in. Now, our research disclosed indianapolis stopped bidding at 10 million in 2007. Montreal and canada, their local and pry provenn shall support is the same amount, but the government kicks in another knife we know f1 is worth two to three times the amounts such cities say it is worth. F1 is a sport now derives more income from public comps than -- coffers than from any other revenue source. We think it is challenges, it has a history of problems garnering consistent span support. In terms of host cities, 24e6' moved around. Dallas had an event in 1996 and it lasted one year. That concludes my comments.
Council member spelman.
You have a written report on the forensic analysis of the controller's report?
I can give you a summary of the work, yes. That is what I will lay out to the city auditor on monday. It is some excel spread sheets that need to bed up, but yes.
I would like to take a look at them when airplane ready to present them to the auditor. I suspect the rest of us would like to take a look at them, as well.
I'll send it to you, e-mail.
Okay. Council, without objection, we will now table this public comment period and go to our citizen communication. Which is set for 12 noon, and just for your information, gale through the -- we'll go through the citizen's communication period, then gel into executive session. I plan to only do part of it so we can get back out here as soon as possible to resume this public comment period. Again, no action on this item. I would estimate we won't resume the public comment period until 1:30 or 2:00. So if we could hold down the talk until you eximmaterial the chambers, -- exit the chambers we can go ahead with the citizen as communication part of our meeting. Carolannerose kennedy. Carolannerose kennedy. Not in the chambers. So we go to paul robbins. Topic is city issues. And again, can we hold down the robbins can speak, until you get ops the chambers.
Citizens of austin, city council, I'm paul robins, an environmental activist and consumer at very cat, I've -- advocate. I've written a report on the city's programs, it is titled "read it and weak", the available on www environmented info there are four demand side management programs at the water conservation division 6 the city operates on a daily basis in case of irrigation audits, the savings estimate by the water conservation division is flawed it compares years with each other inconsistently and does not specifically adjust for variations in temperature, rainfall or water restrictions. More importantly, the savings did not match bills. For my sample you would have to save 92% of consumption, a program participants, to match the utility's estimated savings. Another key problem is that the program savings will only last three years, but if you look at the savings in the monthly reports the way it is written, would be believe that savings would last indefinitely. The next program, thanks, regarding toilet rebates and toilet giveaways, there is a lack of financial balance. Residential water customers paid $13 collectively in the last two years for benefits largely going to recipients. There is also no alternative financing method for all apartments and commercial customers that will make the cost less ownerrous for both participants and rate payers. And there is no great effort to recycle the used units. There is a recycling rate before 5%. Next slide. The commercial program is the most cost effective, by while this sector uses one-third of the utilities consumptions, there's not one dedicated staff person, not even one, to run this program and there's no pro active effort to seek out new participants. Next slide. The utility has done a reasonable job of promoting efficient clothes washers in homes but has ignored the commercial sector, all but ignored it. The council approve administration mum code on commercial rebates four years ago that was never implemented. There is not even a billing analysis to estimate potential savings. Next slide. One final thing, there is a political ad out currently that hints that austin will not have enough water to fight fires if water treatment plant is not built, however, fire protection 02 of 1% of system use. Water main leaks accounted for over 8 pses. It will take -- [beeping]
263 years under current rates of replacements --
thank you, your time is expired. [Applause] debby fleming. Topic is norwood dog park. You have three minutes.
Good afternoon. Thank you for this opportunity to speak on behalf of the norwood dog park. I'm a life long austinite. I enjoy all the parks here. 6% Two dogs and I've just, am hoping that you would reconsider what I understand from going to some of the public meetings, you're not considering keeping the leash, or excuse me, not keeping a fenced park as part of the redevelopment of the norwood area, I would hope you could find a way to continue to keep that in that little section which is down below. Because we don't really have a facility like that in austin. By to many parks all over the city. The other place where many of the dogs over at the auditorium shores, they run all amok, and get in the way of runners and walkers, and I think that norwood is kind of special, where they're in a fenced-in area and in large part the volunteers do a pretty good job of taking care of things. I don't think the city puts a whole lot of money in it. Similar spell better for the beautiful view that with -- simple is better for the beautiful woo view that would be part of the norwood home and restoration of that. I think you have some good ideas on that front but I think for that lower section where there is not a lot of options, I think keeping the fenced-in dog park would be special the city because we don't have another place to go right now in a central location. Than for your time.
Thank you. Council member shade. Question for --
actually, I see somebody for parks and I was going to ask that she might come forward and I appreciate your comments on this, this is an area I've been following. And it it's complicated because of the original plans for the folks involved with restoration of norwood and I fully recognize that there is a special aspect to this, fenced in areas. There is another fenced-of in area dog park not far from my house, but could you come forward and they will me what is actually happening with the plans and is there anyway to prevent this from being closed, at least until there would be another comparable site opened? To often we're closing sites before we are another ole terntive. I don't know -- alternative. I don't know if there is a plan to work this out but maybe you could speak to that.
The parks departments.
Plan what is so ever to close this dog park at this time. The exercise that we're involved in with the public is a visioning for the entire park which includes both the area where the dog park is the house that's located there, as well as the rest of the site. We don't have funding at this time to do any construction and have no plan what is so ever to close the dog park, so we're doing a visioning and I would really like to ask marty stump, our park development manager, to kind of answer the question wouldn't we're doing with the visioning program.
Marty stump, park development coordinator with the parks department. Council member, yes, to answer your question, the vision planning that we're doing for the norwood site is looking at alternative uses, they're looking to the future as that park site offers connectivity to the future boardwalk and to the neighborhood as a park in general. We recognize that the off leash area is very popular, it is very popular because it is a fenced area which is unlike other facilities that we have. We've heard loud and clear from stakeholders they would love to see whatever opportunities there are to keep an off-leash component at the site. We're concurrently looking at alternative sites or future sites to be developed throughout the system that would offer a fenced off-leash area. It is challenging, as you may know, to locate a facility central to the city but we are sites we're looking at. We're launching a broad, city wide visioning process for off-leash areas in general. It as related to the norwood site, we have another public meeting coming up late in july. July 20 that we will be demonstrating some plans for the site and than planning and that site, it is likely that alternative park uses, special uses within the park will be considered. One of those uses may include a reduced size but more intensively designed or developed off-leash area within the park so that is remaining within our thinking at this time. some perspective on how we edged up with this fenced off-leash area.
Yes. As we commented here, I think the last council member meet wig was asked the same question, the site was established as a temporary facility on the norwood side, I believe, in the history that there was an attempt to have an off-leash area in big stacey narc did not work south well there were pedestrian and dog conflicts so the norwood site was seen as a viable alternative. It was established I believe in 1994 with the caveat it would be a two to five-year facility and in such time the department had a plan for redesign of the park and funding for the development 2456 work. And so we are really here today many years later finally getting through that planning phase that opportunity to revision the park. And again, our director in the department has committed to not closing the norwood site until we have addition fall sillties online that pro -- facilities online that provide that same service.
From the citizens perspective, is that new information to you or is that something you've heard before? You can come -- I'm sorry.
You want to come up to the mic to answer that question.
Is that new information to you?
I felt that in the last public meeting that I did hear that, but I just am not feeling that, I guess maybe when we hear more specifics about where the new fenced in park would be.
One of the -- I think it is really important because obviously, confirmation and communication, especially when it changes overtime is something we deal with here all the time. Unfortunately. And it's because citizens change and staff people change and priorities, even if stakeholders change yomp time, one of the things that I under stood there was a discussion about, mable davis, is that another area.
I've not heard.
Maybe staff can talk about that too while we're hear in an open session. Thanks.
Council member, I do on the topic of mable davis, one of the sites we're looking at an additional facility for. I do know that a meeting is scheduled for mable davis and yet creek park, itemmified as alternative locations. I don't that in front of me but I understand a public meeting has been scupsed.
They are located within a mile or two of where we are. Okay. We're confirming norwood dog park will not be closed until there is an alternative site that is open and ready to go so we won't nobody a situation where there is a period of time where there's not a suitable alternative. I kind of like the thought of mable davis because it is so much bigger than what we currently. Have I recognize talking with people with the visioning plan for the house is there a lot of complications associated with having the access to the river, as well, or to the lake so again, I thank you very much for being able to clarify that. And I hope that from citizen communication standpoint this is more clear than what you experienced this past week. Thank you all very much.
Council member morrison.
I have one more follow-up question for staff, and I'm not sure, I just missed it, but i understand the whole issue of looking for opportunities for fenced in off-leash areas around the city in different areas, do you have an overall time line for that. I know you're looking at a couple specific ones right now, but might we expect to get some finalized plans?
Yet creek and mable davis are the two you mentioned already. We do work with the off-leash advisory council, and they have adopted in, I think it was last may, a plan. And that plan basically is responsive to requests for new parks. The department after hearing so much feedback on this project, as well as just in general a desire for more facilities for dogs is now looking at maybe implementing another step on top of that program. We don't have a master plan for dog facilities in the city, it tends to be more of a reaction to a request from citizens.
The ory counsel sile, they did put together a plan for a new off leash area.
They have a policy manual that describes evaluation criteria, and development it doesn't specifically lay out new sites. That's a cooperation between either citizens that would like to have a dog park as component within a park, might bring a request forward to the parks department or if we see an tune for a good site we would take it to the off leash economy and they help act as our citizen liaison to threat process.
The -- to vet that process.
They've done the major part of their work and now they're just working with you as specific park suggestions come up.
Thank you that helps.
Thank you. laura pressley. Fluoride topic. And you have three minutes.
Thank you. I want to say how much we appreciate the health and human services community allowed ups to hold a technical health discussion where experts reviewed the large body of evidence indicating the negative health effects of tap water with fluoride in it. So thank you for that on main 18. In this communication I want to sum up the main points that came out of that discussion and that were raised. Next slide. Orderly administration termed fluoride reduces thyroid function and that is anker refutable fact. Fluoride was given as a MEDICATION IN THE 1950s TO Reduce thyroid activity. No argument about that. No question. Hypothyroidism is rampant in the united states. Women are affected more than men. Men are affected also, and the symptoms include cold intolerance, lethargic kind of feelings, and weight gain and memory issues. And I have direct experience with this, I cured my hypothyroidism by completely removing fluoride from my diet. I'm off of medication. I was on medication for eight years and I'm completely cured and don't take any more. It is very difficult to remove fluoride completely from your diet but I did. Okay, next. I would like to go through chemistry of why flew ride affected -- why circuit of the fluoride affects your thyroid. Iodine and fluoride are in the same column on the period I can table and as a chemist, it is easy to see the reactivity. When your body doesn't get the iodine it needs it looks to the best thing in the environment is fluoride and takes that instead and doesn't work right. That is anker refutable fact. Very simple. Next. Anotherer refutable fact, the fluoride in austin's tap w5u9er, there is no dose control in one large glass of tap water, a large machine and child get same amou of fluoride. That makes absolutely no sense. The city is medicating with us no control 6 how much dose a child gets verses an adult. That makes no sense. Given that there are scientific evidence for hypothyroidism, people sensitive it, iq issues that fluoride causes in children at higher doses, bone issues and fluoosis. Again, the city administration terming a dose of medication with no limits tore weight, size. The last one construction skip to the next two slides.
Your time has expired.
I hear you. We want to know what are the next steps the council is going to take on this. That's a question.
To the best of my knowledge, there were no next steps in play at this time. Well, okay. Council member shade.
Actually, what we talked about at our last public health committee meeting, we wanted to talk to, we want to have a discussion item them our next meeting after she had an opportunity to watch the video she had to miss.
You're talking about a sub committee.
No, the sub committee will take this up for discussion but we haven't had a chance yet because we haven't had a meeting that wasn't revolving around the social service contract. The next meeting, maybe the 21st, I THINK, BUT IT WILL BE A discussion item at that one or the following meeting after she has had a chance to look at what mayor pro t already got watch.
Thank you, we appreciate that. Thank you.
Council member spelman you.
May have mentioned this earlier in your scwution and i missed it. -- Your discussion and I missed it, what percent and of the people in the united states and in austin have hypothyroidism?
At least five to 10%.
Ronnie reeferseed. Topics are peace, freedom and fluoride.
Thank you. And this is ronnie reeferseed. Singing hallelujah. We all share this moment in time when he schemers at the top like the build-a-burgers, including governor, right now are excluding their myriad of evil schemes to manage the on going spasm of procreation through various platforms to kill us all and it is filled now the so-called president peace prizes very own science gar books for he can aileds including ecoscience where he has death hastening taxics such as fluoride in our water, ticking time bombs of death, further poisoned food and water,est, consciously and deliberately killing people. I understand this is hard to grasp but you're going to have to phase the fact those help solve the big issue we joyfully have a chance to lead forward for life enthusiasts like me, look up with a search page, type in john holden, science czar, various schemes to lessen human pop thrietion protect and conserve natural resources for the elite who will somehow survive. The on going onslaught through g asparteme. And fluoride. We got together with the facts and decided to stop buying flurodated toxic sludge. They say no, heck no, no more fluoride toxic slunl in our water. Wake up, schemers, we're on to you now. We can save our own world, remember the slimy, verbal hogwash that spewed in the pie hole 6 miss randy shade in the dog and pony show they just ran about the fluoride here, given the truly evil, gave well over an hour to spread it sharing the facts about this serious issue were given the usual 180 second allotment of our time. Hmm, let me see, informed concerned citizens, 180 seconds apiece, hmm, deincentive and lang well over an hour of undocuments hogwash and serve tied to the fluoride toxic sludge group has been in well over 50 years now. Now is the time say heck no to fluoride water. To learn more, visit fluoridefreeaustin or com, a boundy of up to date film as links to more information. Listen locally 91 fm for alex joans. Remove the schemers by voting them out, we're winning.
Next speaker is sandra martin. Not here. John ford. John ford. Topic, I'm not sure I understand about why council members need four to stop fluoride water. Explain it to us.
I don't know what the word "four" is in there. That's a typo or something. My name is john ford, I have a nickname mike, my friends know me by. Like everyone in austin, I drink the water. It contains fluoride so I get fluoride that I don't want. And that's every day. Fluoride is a powerful chemical and it adversely affects numerous body parts, including kidneys, bones, and thyroid. My thyroid no longer functions to keep my body warm. My doctor has supplied a daily dose of levothuroxin for me and tells me I'm going to have to take it for the rest of my life. My doctors and my dentist all tell me, avoid fluoride. Its' in my water, my city water. I can't avoid it. I'm being medicated by my city without my consent. I would like it to stop. I spent $849 installing and a filter on my drinking spigot. It removes only 75% of the fluoride. And it does not protect me from doses of fluoride that I have to be a cosh when I bathe -- absorb when I bathe. That require as whole house filter and they cost $10,000. Now, there are thousands of people in austin trying to avoid these harms. There are hundreds of thousands more that don't even know they should be trying to avoid these harms that fluoride does to us. They're unaware they need the protection, need to protect themselves. The city of austin has been putting this dose of fluoride into our water every day for 38 years. Think of that. 365 Times 38 that is the number much individual doses, somebody living here that 38 years would have already consumed. And the real breaker is that 50% of what you consume disappears each day. The other 50% stays in your body. It's cumulative. It's bad for you. Now, fluoride harms infants to an even greater extent it lowers their iq. There are 25 studies that confirm that. Please stop dosing us. Please stop dosing us without our consent it costs nothing to turn off the fluoride. You could do it today.
Thank you, john. Ariana barr. Top sixty norwood dog park. Welcome, you have three minutes.
Thank you for letting me speak. According to marty stump at the last pull meeting the park the department will not preserve the norwood dog park as part of the renovation of the norwood estate. They stay was never intended to be permanent and should be been dismantled years ago but it doesn't and the people of austin have transformed it to one of the best dog parks in the city. Neighbors enabled them to nil where the parks department wouldn't, laying rye down protect the guest and flower boxes and installed gates for people who cannot chase down their dogs. People t from all over the city, it is about community, diversity, nature and happy dogs. You think the parks department would be excited to have a dedicated group of citizens to have a park and treat the patrons with respect but this hasn't been the case. The department says the donated plastic chairs are ugly, dogs are destructive to the grates and tree and foal I can't believe block the view of the lake. But all of these problems can be fixed with minimal funding. The dog park has come so far and has potential, attractive park berms can be found for less than $150. A low cost high drainage paving stone is used at dog parks across the dry pr mud from forming around water features and would be wear resistant if they used the money eastern marks for an irrigation system instead of sending it on an architectureral consultation. The only thing the trees are blocking isive-35 which is not that pleasing. It is clear our concerns are not the park department's concerns. What would allow the park to coexist, their refusal to work with volunteers to maintain the park where it is is bizarre. They claim they will open another dog mark to meet our needs, considering we've been working to meet our own needs w0u9 their help for years. Adjacent to public areas where you congregate. We've been met with a "we'll see". And given their history it is hard to believe the few promises 24e6 made. We're grateful for your interest and concern but right now we need your help. You have the ability to make this right. Financially and structural listenly and in terms of public function, the norwood dog park belongs where it is we live in a city where the people's voice matters and demand that the dog park stays. Thank you for your time and thank you for your help.
Thank you. Kathryn barr. Same topic. -- Katherine van. Same topic.
Thank you for taking an interest in the dog park, it is very meaningful to us that you are doing so thank you all for your time I wanted to echo the previous speaker. I think everybody understands how important this dog park is. It's safe for small dogs, my dog is about 15-pounds, he's a rescue, I can't -- I'm afraid to let him run loose with potentially agrees dogs, it is very important to have this place. The only such space in austin. Even though clarksville is not that way, I've tried that, it is a little bit scary. So, and so there was a little bit, before the previous speaker, some interaction with the parks department which i welcome and I was very happy about, and I help to that we can all work together to come to some resolution about this and i hope that what they've said can be counted on in the future. Frankly, what I think you're picking up from some of the people from dog park is a skepticism and it is frankly lack of trust there. And it is to do with the way that the citizen input meetings have gone in the past. It was said they didn't have any idea what to do with the park, all options were open but it became clear in our treatment and so on in the ways that the comments were received that the dog park was already off the table. Before the comments started to come in. And the explanation is that it was never intended to be that. A visioning process to me sounds like something about the future, not about the past. So there's, it feel as bit disingenuous, the whole community participation model, how it is being deployed feels disingenuous in this case and i hope to ask your help to remain, help us all remain village lent about the progress press of this project and how to keep it on track and how to keep the promises and overtours in place. Thank you so much.
Thank you. Laura cox on the topic of fluoride. Is laura cox in the chamber? Not in the chamber. So those are all the speakers we have signed up to speak. So council, without objection, we will bea into closed session and take up several items, potentially. 01 on the government code, the city council will quult legal council regarding the following five items, item 9 related to issues of the "formula 1 united states grand prix". Item 12 to discuss services agreement with andrew kerr. Imdomain cases. Item 3 relating to board wake. Item 47 to discuss legal issues related to a construction contract claim by the city of austin against mw builders, inc. Item 48, to discuss legal issues related to city council and employees is there any objection to going into closed session on the items announced? Hearing none, the council will now go into executive session. We will very likel cover all five items to get back out here in conversation of the people signed up to speak on the recently tabled items. We're in recess. [Gavel pounding] wear out of closed session, we took up legal issues related to 9, 12, 14, 48 and 47. Council, before we we resume our public comment period on eat em9 it's been suggested to me we can dispose of all of our zoning in approximately three minutes. If there is no objection, we can go ahead down that. guernsey guaranteed me that it would be three minutes.
Thank you, mayon and council. The first item we can offer for consent is item number 49.
Staff why qs a postponement of this item to june 39 meeting. Item number 39. East yeager lane [reading] it was recommended by the zoning and platting commission than is ready for consent and approval for all three readings. Case number 41. [Reading] to zone the property to single family residents, standard lot on neighborhood plan or sf-2-mp, combined district zoning. Planning commission recommendation was to grant the combined district zoning and this is ready for consent approval on all three readings. Item number 52. [Reading] staff is requesting a postponement of this item to your august 18 agenda. Item number 53 [reading] the planning commission recommendation was to grant the cs-mu-co combined district zoning can conditions. This is ready for consent approval for first reading only. Staff would be ready to probably bring back items 53, possibly, on your june 23 agenda. Item number 54: [Reading] this is to rezone the property to general commercial services mixed use conditional overlay. The planning commission recommendtation was to grant the cs-mu-co combined district zoning with conditions and this is ready for consent approval on a first reading only. We will bring back that item on your june 23 agenda for second and third reading consideration. Item number 55: [Reading] the applicant has requested a postponement of this item until the august 18 meeting that concludes the item at this time.
The agenda, postpone until yuen 23-rbgs close the public hearing and approve on all three readings items 50 and 51, postpone item number 52 until august 18, to close the public measuring and approve on first reading only items 53 and 54 and to postpone item 55 until august 18. Entertain a motion for approval.
Any discussion? All those in favor, please say aye. [Chorus of ayes]
opposed say no. Passes on a vote 7-0.
Thank you, mayor and council. Without objection, we will take item 9 off 9 table and resume with our public comment period. And next speaker, we're now hearing from people who are opposed to the item, the next speaker is sara spites. Correct me if I'm saying that wrong.
No, you said it right.
Okay. So you have three minutes.
Okay. I'm sara spikes, I live in austin. I've been here since '63, i think. I just retired but for the last 35 years I have worked in government, either working for elected state officials or working for businesses lobbying officials here than washington. So I have a lot of experience in reading legislation and in public policy. I own about 12-acres at elroy so I have every reason in the world want this operation to be a grand success. However, I am here today because I don't believe the city should get involved in this. And I'm going to explain why. Number one, it's too much money. It's asking to you go too far. You've never done this before this is beyond the limits you've ever done and it is just, it's, to me, it isn't a proper relationship with the business. Secondly, you know, you all are not responsible for the fact that they started ahead of having your financing lined up. That was a business decision. And that's not what you have to look at. You have to look at what's in the best interest of the taxpayers. And mayor, I really appreciate the efforts you've made to make sure that the interests of the city is protected, the money is protected through bonds and agreements and all that kind of thing and you're wanding to enforce performance measures, but I know this legislation and this stat tutted, I have trade now many, many times. I don't think youcle. The statute says the only thing you can in this contact for -- end this contract for is if f1 doesn't come. So I just think, when I look at that statute, it is written very much in favor of the event that is coming and it gives the comp troller all the authority. In the case of how much money did you bring in this year, whatever year you're looking at, you get to submit, you submit an economic analysis of how much money you think you brought in. But the statute says the comptroller makes the decision. And by the way, this is the msa. She sets the msa, the statute says that, and she determines how much tax revenue she thinks that msa brought in and that's what you are signing up for is the whole msa. Now, my question is, like council member martinez said yesterday, h elroy? You know, they're going to make money, bass drop, san marcus, west lake hills why only austin? I think you ought to go out and I think you ought to ask these folks to get them first to share in the responsibility of this. Also, let me, I'll just move right on. Formula one is a risky business. The best analysis going on right now, just came out 6 formula money which represents the interest -- [beeping] the hosting fees were anticipated to go up 100%. Think of the pressure over the next 10 years, think of the pressure that is going put on your --
thank you, sara.
You bet. Any questions?
Council member morrison.
I have a question. I think it is probably not for you, sir, though we might need your help. You said something in terms of figuring out how much money the city has to put in, it is based was.
That's the way I read the statute, yes.
All right, thank you.
Any other questions?
Alsadonia. Not here. Uean. You have three minutes.
Good afternoon, mayor. City council members. Like everybody else, we had the greatest expectations for this project, but we're not in favor of this item at this point because we think that f1 should respect and honor the community values of supporting local minority business contractors and suppliers and include us in the development. Today date, only $250,000 has been awarded to minority contractors that we know of 05%pation then a won't even release the napms 6 the companies that have been -- the names of the companies that have been used. We would like to know the participation of the $13 million used to invest in the water and waste water service out there. In conclusion, this information is still not available and our colleagues with the austin black contractors association, as well as us, have some real concerns about this project and we're here to help, we would like to be able to help and we're available to meet with you off line any time. Thank you very much.
Thank you. Is there a staff member, this has been brought up twice today so I want to clear it up about the money invested in the water, waste water. Can somebody from staff explain to us how that works. City manager. If we need to get somebody out here, we can hold off.
I'm going to suggest that we call rudy garza and we will get him here in a few minutes. Thank you. okay, neck meantime, we will go to the next speaker, susan moffitt. Welcome, and you have three minutes.
Hi, I'm susan moffitt. Before I started I wanted to say since south bay, southwest has been thrown around so much this morning, I'm married to, it my husband started that organization on a shoe string with three other guys in a room that was about three people on the dais, nasty orange shag carpeting no windows, we did not get a $4 million hand out up front from the city or $20 million from the state. We have brought all of the fabulous economic benefits the people were discussing this morning. So I said to my husband on the way down here, since you guys are in the business of handing out money after the fact that he should quickly, while you're still feeling generous, apply for the $4 million sanction fee for south by south west and perhaps we can make it metro active for the 25 years we as local business have contributed to this community. But I'm not bitter. Okay. I'm also a former legislative researcher and a parent 56 teenaged boy so I'm used to smelly things and this is smelly. Our question here is not whether this is going to bring economic benefits to the community or whether you like cars are you don't like cars, the question is whether this is a good financial risk for our public dollars. These are our tax dollars. The governing law for the major events trust fund requires that our funds be mingled with the state and that the payment to f1 must come proportionally from each fund contributor, so under 4 million of our $4 million payment has to go straight to f1. Now, you might be able to be okay with this if we could get that 4 million back but you've got to understand there is no statutory guarantee of reimbursement for the city. To possibly get the full 4 million you would have to put $4 million of allowable expenses written into this contract we haven't even negotiated that is due in two weeks, and if you get that far, the comptroller still isn't required to reimburse you. The statute specifically state it is does not guarantee any obligation impollsed on the city related to this event. I assume you know if you try to sue the state, you get an act of the legislature, I write them, very few get approved. Say there is still money left over in the fund after the loc puts in for all its expenses which we heard they were going to did we have less than 4 million in the pot and it is mingled. Anything that we get this' left in there, we can only be 8% because it is con I think it on the proing -- contingent on the proportion of your initial give. Say by some miles per hourcle the loc didn't put in for any expenses, f1 didn't make a side deal wi state so say we want this to keep pace with the ever-increasing fee, the most you could get back 455,000 dmplet I have many steady tore concerns, and if anyone has any question, I would be happy to answer them.
What is your --
mayor council member cole.
Thank you. What is your next concern?
It will be prepared by the local organizing committee, same people asking for the money and that is not even done yet. The state comptroller, who holds all the authority in this deal, didn't even do her own economic impact study before making this promise to f1. In fact, the representative says we chose 4 million from the city because that would get us to the $25 million figure at the state. City staff still doesn't know how much to is going to cost us to host the event and the $4 million the promoters are saying they will funnel will not be reimbursable to the city, only to f1. The performance bond they're talking about doesn't cover the city for expenses either. So it's a mess. It's our local tax money. And to correct one piece of misinformation, the fund money can be used for other purposes if our legislature makes that decision this was not delivered on tablets from god, it is in the fund because they made those decisions and it can be undone by the same act so that money our tax money, city and local and we should have a say in how we're using it and I don't think this city sill should could lewd with rick perry for a $250 million give away at a time we were slashing basic services statewide, including our teachers and our schools right here in austin. Those are my concerns.
Thank you. And we have received your e-mail and the law department is work oong response right now.
I'll be very interested to hear it. Thank you very much. garza, you want to now answer that question about the water, waste water financing? So we can put that issue to rest. It's been raised a couple times here today.
Rudy garza, assistant city manager. The first part that I will answer is regarding specifically to the financing of the water waste water service extension request. If you recall, we had some discussion because when this project started was actually a single family development with a prior developer. City had already proceeded and was contracting with that developer for a water, waste water service extension through our normal process that's approved by our ordinance. In that time frame, the developer then sold the property to the new developer. We then renegotiated and had a very similar service extension request that we are reimbursing the devel cover the cost, estimated cost is $5 million for water, $8 million for waste water. That infrastructure serves the track and the facility but it also provides the additional capacity that our system requires and needs to serve that entire area, which, again, then qualifies for reimbursement ordinance. And as any other development, we will be reimbursing them up to $13 million for the water and waste water infrastructure.
Has the city paid full throttle $13 million for water and waste water service?
We've not paid one dollar and that is not the way the system works. They front it. We have to inspect it. Then if it meets all of our specks and requirements, we own it and we will reimburse them.
They would havefied put it in, and then the city will reimburse them for the money they've already exexpected over time, if it meets all the standards.
That's correct, just like any other extension request.
Mayor. council a follow-up. Is that the total cost of providing the pipes to connect this tract to the system? Or is the $13 million to reimburst them for connecting to the system, or is the $13 million to reimburse them for increases in pipe sizes so that we can actually connect through their system to the entire region?
I'll try to answer that correctly and make sure I got it. Maybe I'll answer it this way: Do we not reimburse for internals so their' internal infrastructure is not part of our ordinance. This is simply for the backbone.
All they're doing is connecting to the system, they're completely up for that, that is all their expense.
The only reason we're reimbursing them for anything is we're requiring them to put down larger pipes so we can connect our water and waste water system through their property to adjacent land which will be presumably developed at some point.
Absolutely. That is typical and normal of all our process.
I have a quick question.
Council member cole.
I want to make sure this is clear about the fact this is going to serve new homeowners in the area in addition to f1. That's correct?
This is an up front investment to do that.
It is part of our standard process, part of our ser process requires they are agreeable to annexation.
And if we are to annex them, we would have to provide debt service as part of the process. Thank you. Brian rogers. Donating time is jeffrey hodges. Okay. Linda curtis? Linda curtis in the chamber? Not in the chamber. James rogers, so you have nine minutes.
Thank you. Brian rogers with changeaustin.org. I will go into my power point. Welcome to texas but pay your own way. This is from the ergo's power point, it says the state 25 times the calculated amount 6 incremental local taxes. Are you sure that's the way works? That the local gets to calculate and then the state does the one wag to 6.25. That's the question. The city's expectation is the state provides 6.25 to our one. See the little blue? That's our city limits. But the reality is, the city must provide one to the state's 6.25. I have drawn this boundary line that the comptroller and celoc, the local organizing committee are going to get to draw, not the city of austin. They have 37,000 hotel rooms if they were all vacant. Austin has 21,000, we can't get to 97,000 hotel rooms unless we go all the way to dallas. That is a geographic area that the comp troller is going to draw, yet we're stuck with a little bitty area. If you go to the comptroller and say we only had a million dollar increment, they're going to go, I'm sorry you're married to the 6.25 to one. We're putting up 25, you're married to $4 million, I don't care what you say. Okay, the state is committed to 25 million a year. They're going to conjure a boundary to get it. The city is obligated to 4 million, whet it is increment or not it doesn't have the geographic area for pay back. No other city pitches in. They all get a free ride. Austin is to carry the burden. Let's see how this works. We need 97,500 rooms. These are the comptroller's numbers. To the website, plug in the city you wan and the month. How many hotel rooms do we have? 201 Hotels, a capacity of 21,345 rooms as of march. Okay. 21,000 Rooms, that includes luxury, standard, extended stay, bread and breakfast, crack motels and the general flea bags. We have he a general occupancy of 65%, that means 13,000 rooms will not be available. That leaves 7,000 rooms available for the formula one increment. The comp troller says we need 97,000 so when you put that ratio of 7 pps we come up way short of our hotel increment. Where is it going to come from? The state is going you go, i don't care where it comes from, you signed up for. It okay. And here's how the market area is determined, this is administration code, the requester shall submit the impact report and propose the desired area. That's celoc. We're going to relinquish or droll celoc. The comptroller makes the final determination. The city does not get to pick its market area. It will be imposed on us if you sign up for this program. Okay? Do not give authority to celoc. Celoc is granted power by the city of austin to carry out the contract negotiations dhow not rep the taxpayer. They become the requester with its own agenda. This is f1 negotiating with its stuff. Don hoyt is paid by celoc and writes the report for the market area t detriment of austin. Celoc has an enormous conflict of interest it was formed by richard suttle, their attorney. We do not hand over power to them. We can directly negotiate with the state. We don't need celoc as an interimmediate area. And they will find tout is a great deal and run their market study all the way to dale throes get their geographic area. -- To dallas. And this is what we think we will be able to report it works the other way and no other city helps. Are you going to be able to get $4 million of delta out of those 7,000 hotel rooms? I think not. Okay. What about, here is an identical kind of study. 2003, For the british formula one, 116,000 visitors. Not only did it have f1, the formula three, the historic car race, practice and qualifying sessions, the race was all day, additional entertainment. Ours is 130,000. They say 75% of the people are l going to come from out 6 state. Well, what happened in I think large? 97% Came from britain. 30E7b8% cam from overseas so this whole something predicated on new money, like the domain. 100% New shoppers, right? 75% New people coming to texas. That's not the way it is going to work. People are going to wake up in dallas, houston, san antonio, hop in their cadillac he is ska laid mixing drinks, drive up for the day go to the race and go home and not going to fill any of our coffers. But the comptroller is bound, they can draw the lines and they will dip into our background economy to try to get it british grant prix $52 million impact. The comptroller says that is $300 million if the race were held in austin. Larger windfall in an entire season. That is not true. These are garbage numbers. Think about it, 130,000 people here for the weekend is no better than a couple of games. These numbers are fiction. What is the deal with formula one? Exists, race -- economist, race fees are the biggest sale of revenue, bigger than television rights. That tells you our business model is tax subsidies. F1's greatest revenue is tax is undes. They're declining business. Like cabella's, the business model is tax subsidies. And they're coming to us like we're a bunch of hay seeds and say we want your money. I wanted to add few more things until I get the beep. Don't cram this down our throats with a timing. There is no rush. What is going on, the same thing happens with the domain, the developer needed to get to a convention in vowing they had to have the deal -- las vegas so they had to have the deal signed. Council was supposed to sign the deal before they read them. And equipment prices going up, hurry, and then a week later lehman brothers chance collapses and wall street collapses. Now it is hour re, hurry, hurry, we need to get the deal done. Let's slow down. It is a fake dead line, this get it done by the 23rd we don't need to get done which the 23rd. Let's look at the documents, let's give us time this hoyt fell slow going to come up -- fellow is going to come up with an economic analysis and then john, mother booster on the city's -- another booster on the golden rolodex, we need people to shoot holes in it and at the end of the day it holds its integrity, then make decision but please, not before. Let's have a nice, long process. I know they're saying that we were told that it's free money with no risk, the city yao would not be at risk of any money and we do not do economic development deals outside the city limits. Well, this is an economic development deal and I was part of a question that had a whole pathway on how these deals were supposed to be done. A public hearing, six days before all the information had to be up and now we're getting railroaded, I'm asking you all to slow down. Thank you.
Roy waly. You have three minutes.
My name is roy waley, vice chair of the austin sierra club there whereby a lot more people in the room this afternoon if we had gone first and the applicant had been asked to wait to come back after lunch. I want to start out by saying happy anniversary. This week is the anniversary of the all-night barton springs up rising. 21 Years ago. I bring that up because it is apropos in two ways, one, it shows when the people of austin get together and find out there is a bad deal going on, they can stand together and change the course of history in austin. The second has to do with a documentary that was done called "the unforeseen", and the big thing, the lesson out of that was that there are always unforeseen consequences and there will be unforeseen consequences for this. And one of the problems with, one of the things on the unforeseen it it took what you all are doing once again, which is looking at one piece of the puzzle and not seeing the whole puzzle, the whole picture, the what the unforeseen consequences what what it could be this goes what will follow with the race. What will happen at the business park out there. And what sort of business will we be bringing in from there. There is an opportunity to make it a true green business, but once again, we're hear going goals without getting too many promises. We hear about wonderful goals but no promises. We keep hearing that f1 will have the eyes of the world on austin. They already are. They're already there. And part of it is because we have shown ourselves to be a leader in green technology. We are bringing, we will be the leader of green technologies that take us into the absolutely necessary green economy and green energy and that's what we should be investing in. That is where we should be putting it. If we put this much time and effort, that's what we would continue to be known for, f1 absolutely flies in the face of that. Also, some of the other ancillary uses of the site that I've heard from some of the f1 folks is that we'll have a hotel and convention center out there we've spent millions of dollars promoting ourselves as a green leader and this will be money thrown away. We spent millions of dollars on our own convention center and now we will look at incentivizing competition against our own investments. rogers said about the hurry, hour re, we have to do it now.
This car event has a little bit of a usedded car smell to it to me.
Thank you. mayor, I want to finish because I've been sitting here all morning.
Your time is expired. Time.
Time exfired for a lot of people this morning and that is the reason their not here now. waley, what did you want to say?
Thank you, council member cole.
I would just say that it's like my old daddy used to say, if a deal looks too good to be true, it probably is. And this car event has that feel of act now, hurry now, these prices won't last, this deal only good through this weekend, friday, friday, friday.
Can I ask you to donate, to rogers to come up because I have specific questions for both of you. First of all, did you hear miss moffitt's testimony.
She was outstanding. And I believe that that is once very important to know that we are putting the horse before the cart.
I understand -- but my real question for both of youifies and you don't have to answer it now, one thing to say, we don't want this, citizens that are entitled to say that, there is another thing to say that this is just a bad deal for the city. And what I want to ask you tool do is to write ups an e-mail and say, because I think you've already said this is a bad deal for the city, what, if anything, would make it a good deal for the city. Or who do we need to talk-to-fix that. And I don't remember your background. I know roy's background, but you both served on committees, so i guess I'm saying if we don't want to late good deal go because just two weeks ago, i sat and listened to a room full of people about social service contracts and one lady stood up from a center and said, we don't have enough money or beds for a 3-year-old with a broken back. And so if there is upside to this deal, I don't want to hear about, we just don't want it because we have some real costs but we are on a short time and so I need you to be a part of the solution. Can you do that?
Yeah. Let me add one thing then. If we predicate this old deal on out of staters, if we counted them and said, okay, this is really all about is it new money, because we don't want to be taxing texans and sending the money overseas, so can we actually determine the number of premarket out of state. I will go along with that and call it free money, well, will the formula one people allow that? Will they go along if we final tout is only 15%.
I'm going did you do it now think about it and the long version I know you're going to do that send that to council member 25%. I'm kidding, send it to us both. Anyway, I think you all can appreciate what I'm asking you to do.
And briefly respond for the sierra club, council member, we have been reaching out to the f1 promoters, and if there is a way to truly green this event, not green wash it but truly green this event, and the benefits flow the way that they are promised, we would probably take different look at that. But we've -- like I say, we hear a lot about goals now with promise.
Fix, it because this is in a desired development zone, you committed this is where you want the growth to go maybe not this type of growth but don't come tell me we don't want it in the desired development zone. You see what I'm saying.
A brief example, they worked out a deal with the city in pflugerville but one thing they did was up front make prom mimeses and they were getting some tax breaks there but they are putting money directly back into the schools in forms of education so that people can come out 6 high school and go to work immediately.
Let's look at that time and talk about it.
We need to see those kind of things and not happy talk.
Thank you very much and thank you all of you.
Council member morrison.
I would want to follow-up on this discussion because it is a point I wanted to make and i think it fit well here that lot of concerns that people are bringing up and one of them is about the estimates and incremental tax values and whether it is real or not. And one of the things I found in the statute and I can't possibly give the section number, but it says,s aread it, it suggests that in fact, the endorsing municipality can guarantee its obligations opposed to or in addition to tax revenue by pledging sur charges from user fees, including parking or particularities charges in connection with the event so it sounds to me like we have the possibility of, instead of or in addition to doing all the tax increment that we're talking about that there could be just an approach of having a surcharge put on the folks that are going to the event that would then go into the fund and we would be done, and all the tax increment, whatever it is, would come free and clear to the city of austin. So I guess that could help clear up some of that issue, and i wonder if I could ask the city manager to look into whether that's a possibility and consider that in a discussion.
Like having a cover charge, you charge everybody who goes there and they can pay for it will pay for itself by the attendance.
Then does pay for itself, yeah, great. That would be preferable.
Thank you. lehman will have some other comments.
Council member shade.
This is a question for staff really but because it is related to that same discussion, I'm curious about how the expenses are also counted. What the allowable expenses are. How do they know whether it is associated with the specific event verses associated events that may become part of it.
Did you direct your do we staff or the city manager?
Yes, because there is a lot of issue with the measurement not only of the rev but the expenses and I haven't heard anybody talk about it and they just reminded me. I don't know if this is the appropriate time ask the question but could you address that.
The state code and state statute and associated code gives the general description for an eligible expense that can be reimbursed is that the meat of your question?
Yes, but how you do associate it with expenses directly tied to the event, or not in.
I think the city two rely on experience with prior event funds for a familiarity it what is an acceptable related extense. It is a discussion we can continue account comptroller, especially in the drafting phase of this process.
How do do we our expenses now for events that cost, I mean, we have, I mean, we just were talkabout south by southwest so i will use that as an example, but extra security requirements, some things associatessed with official event or off-shoot events. How do we know, how much did that event cost the city in extra security, police?
I think the city manager would like to weigh in on that point.
We do that in a number of different ways. Some events we wave fees wasn't know what those fees are and we wave overtime hours and we calculate what those our. In other events --
that means weed a charge to the organization but that double mean we wayed the expense for the bill for officers to be working.
No, we comped that in terms of our budget in terms of overtime so we calculating that for police, fire, ems, right now.
And one of the points brought up earliar that rodney said. You're going to be doing that.
We will be.
Will you be doing that so we have a sense of that compares to football games.
We have that information, we are calculating that and we're also putting together acl, south by southwest, all of the different events we have had and we will indicate whether or not those were fees paid by the event themselves or fees that we had to absorb as the city or agreed to absorb a as the city so you will see all the different fees.
In this snar joe, I think it was somebody talking, I think julie hart, about an escrow account so we have a place to go to get reimbursed but the other, it comes straight from the general fund.
Is that associated only in the city limits?
Yes, it is.
Next speaker is bill munch. Not in the chamber. Chris lehman. And you have three minutes.
Can I get three more from mr. robins.
Paul, are you signed up? Okay. You have six minutes.
Thank you very much. Thank you again for serving this community and your roll. My name chris lehman, I was chairman of the austin regional group for six years, I'm not any more. Based on what I learned in those 40 articles I wrote over six years, I wrote one as soon as i heard about f1 because I drove a fast car when I was a teenager and I was nuts about speed. I dime become aware of the under intended consequences in the fact those sometimes far outweigh the intentions. I think there are serious inintended consequences that will dwarf any intended benefits. First of all, I think it is absolutely true when you cam pair the year before to the year after and look at that special event that occurred in the middle, you hardly sigh any increase at all, nowhereny the totally fictitious financial benefits that have been late out before so you far. What we can count on because there are over 1700 study yis the epa analyzed and derifed expectation force ground level ozone pollution, that we are going to suffer diseases and deaths. We were going to increase our risk and expose ourselveses toach higher ground level ozone peak day which is going to impair our health, it's going to kill some people, and it will eventually make it harder for us to expand our job market. We will have fore fit year around full- -- forfeit year around full time jobs with benefits in exchange for one weekend ayear because it is going to create our peak ozone days. Nationally, we're sort of betraying the rest of the country here by bringing a race league that promotes the worse cars made in the world from the polluting point of view. We will be outsourcing jobs with the increasing consumption for oil and gasoline, but we're also going to outsource because the car manufacturers that participate in f1 don't have a big manufacturing presence in but they're going to bite into our car sales that we are certainly enjoying a regrowth right now with gm and ford leading the way with some outstanding cars right now. A volt that got 291-mile as one gallon 6 gas. That's awesome. I was real proud of my ford hybrid, but that's increldzable. S -- incredible. I absolutely, I know we want to work towards a solution because the city does want more revenue. My concern is not only will we get more revenue with you we're going to get serious downsides, more cash waltties and I was -- casualties. I was an emt and I didn't have to finish the disclose realize the biggest difference is in prevention. We got to cases so horrible all we could do is paliative care for a child's entire life. Environmental dlzs that impact t womb and impair them so they can never achieve adult status. And people that suffer from premature death. We cannot give away tax revenue as if they're getting a huge privilege. They're entering a market where we're the only city in the country willing to do this. There is no bidding war for. This for us to give up the revenue and face the real expenses and the real downside crazy. Worst, even if we got someone tolls pay the 4 million every year, how do we justify triggering the $250 million we need desperately for our own schools that the state is going for now send to billionaires instead of the school districts throughout the state, including our own. I recommend against the local organizing committee to do anything. We spend massive amounts of our budget on public safety. Here we can save lives and prevent diseases by spending no money. Don't have a part of this. Don't let it happen. If it really requires our endorsement, avoiding it is the best thing we can do. Y why focus on the money fast we have no independent thought or independence resources of our own. This is a very massive process. They tell us what they want us to know and it is up to unpaid volunteers to counsel term act this. It is horrifying. I imagine, paint this rosy picture, f1 has already failed all over the u.s. All those cities aren't looking for it, they don't want it again. There are reasons for it. I looked up indianapolis because they had formula one for several years, they were the last u.s. City to have it. They stopped it four years ago. Their biggest ought troy lated employer -- auto related employer, it is most famous for costing their whole city millions in toxic clean up. It is a dirty industry. Would we jump all over an oil refinery in it was wanting to come here. F1 in austin's peak ground level ozon bring twhrg is 130,000 fans, driving to the same event is likely going to create our new peak ozone days, a than plan to have four or five more racing events every year. Some are concerns the subdivision will be worse because housing dem is going to occur it just goes further out, makes those houses that would have been closer in, further out, increasing whatever that pollution footprint would have been. This is not an improvement on a carbon footprint. Epa came out with the hazards of ozone.
Thank you, chris. Next speaker is pam thompson. Pam, you have three minutes.
Okay. Thanks, mayor. Okay. Our carbon footprint in june for austin and the surrounding area is going to be 86 because we have the rally and adds f1 to the fix. Green city initiatives I guess is going to be a memory. Our economic studies in a month by month basis is problematic. The costs are injured in the city limits and not in the etj. I would like for you to realize there are going to be serious problems here. International statements made concerning the race that do not reflect all the parties is f1 now speaking for the city council in that contract. They announced when we would be allowed to speak at their presentation it wasn't told us to by our city leaders or staff. The race car driver stopped the bahrain race and they were involved in the contract yet they were not consulted before ecclestone made his announcement the race would go on. That race has been canceled. Okay, so -- also, f1 said we anticipate earnings. To me that sound as lot like the banking fiasco. If it is such a good opportunity why do we have to pay up front for it? The city council members asking questions about info after the pact pattern so far so why you do effect to change. A couple of examples, the housing development turns into the f1 racetrack there was no input from impacted community. When we dime address the water pipe to f1, we were told we were off topic and told it was a housing development on the books who is going to build houses notion a racetrack notion a water pipe. I don't want to live next to a racetrack. You made larger pipes for housing. That is sort of a no-brainer. Presented study on domino effect of pipelines that run under the site in case of explosion or wreck on the track. F1 rerouted the types. Have thank you they passed ininspection? F1 spokesman promised economic impact state to the citizen's meeting it didn't happen. The spokes man was a wells far go employee and f1 has financial arrangements at that bank. He was told, and I was told that no vote was taken only the pros and con bs at the school board meetings. Have you asked or you do care what their position is? Legislation without representation, the etj, you can't protect effect the locals from zoning but you can certainly inflict and then profit. We hope. We hope you will at least profit. If you're going to do the dirtium infrastructure, the ems in the area don't support an event of this side. The senator watson voted against this and said we can use the money elsewhere. I really hope you will follow suit on that. The environment, the use of materials, the airport flight overlay exception, fema aprop proved, formula one possible, further environmental disaster money set aside --
thank you, pam. That was your time, which has expired.
Fuel mix for the cars is illegal for this country, so is the asphalt. What are you thinking of?
Next speaker --
I have a brief don't know pam, I wanted to ask you to try to get --
council member cole.
I'm sorry. Try get with the economic development department because the formula one track is surrounded by vacant land, far, far east, so in fact, we're probably going to have some challenges even being able to annex because one of the requirements is you be contiguous to the existing city part of all our discussions about moving the city east and desired development zone and legislation we tried to do because we couldn't afford to put in the infrastructure is because that land is actually very vai cant so I wanted you to know that it is possible that many homes will go in the area. So I would just like you to see this map. Thank you.
Yes, ma'am, I hope you will pay attention to the fact that the racetrack is going to inhibit the growth of homes adjacent to it.
Next speaker is john bush. Donating time is laura presley. You have three minutes. Good afternoon, council, my name john bush. Country director texans for accountable government, I would see how this compares to the vision statement the austin city council touts, the comprehensive vision plan state, beacon of social equity, economic OPPORTUNITY, THE THREE Es FROM International program agenda 21. With the environment it's been without up before, there is going to be a major environment impact on the building, construction, bringing in all the large construction equipment which use as lot of deals he will fuel and pollutes on the backside 6 the vehicles, but then if you look at the carbon footprint, you know you supply to global warming, the carbon footprints of these vehicles, around 20 cars emit 20,131 cars of carbon so austin tries to pride itself as a bee beacon of environmental sustainability and here we are incentivizing this big carbon out out take place. When it comes to the economic aspect, they say economic opportunity, it sounds like a lot of opportunity for leeches to come and suck off the public troughs. You need to may attention to the marketplace. Again, if this was such a big business plan and such a high demand for f1 racing in austin there would be no need to incentivize this circuit of the americas, we wouldn't need to give them $4 million a year, they would be able to come here by themselves without it. We hear from the moto blogger earlier that stlelz is not a big market for f1 so you're trying to do like field of dreams, if you build it the market will all the sudden appear. We've seen other communities that weren't the case. When it comes to equity there were hundreds of homes in the area, we heard the gentleman speaking and we fail and anything throact notice when we have this massive incentivized development occurring it raises property tax rates for homes in the community, further driving people to the ops of austin. We see it happening on the east side. Addition three seems like there is inequity and influence on the city council. The little guy doesn't have the ability to throw together 15,000 plus, can't drive people to the poles in limos so often the voice of the little guys, don't want these big development interests, big business plans to come to austin, our voices fall by the wayside so I hope that you will stand up for the three Es THE CITY CLAIMS TO PRIDE Itself in, environment, economy, and we have an insensitive of a public subsidy, big incentive package flying in the face of what the city tries to pride itself in. No need to move forward on this, it is a phoney date, june 23. A lot of community investment and they have a lot of great information, a lot of presentations prepared so we can find better way to get around this than shelling out money better spent in other areas. Thank you.
Todd rabluski. You have three minutes.
Good afternoon, council member, mayor. Make couple of comments and i would like to offer some alternative solutions to this. You know, they've been saying that formula one is going to bring, you know, eyes towards austin and in some instance it is already has. An frarl bloomberg news week and the headline reads "texas pax payers finance formula one auto races as schools dismiss teachers". And angelo comments that was a false choice but we found out on may 25 in the legislature when our state senator watson stood up and established two things that number one, that is not free money. This is $25 million of appropriated money, and it was appropriated in 2009, shortly after the, you know, the economic bust and we were nay quite a different situation now. There is parents and teachers up there and they're fighting more their jobs and their kids. Shouldn't they sacrifice a little along rest of us. And I'll tell you how they can do that in a minute. But what kurt wattson did was tay stand up and say could we reappropriate this money. And the answer you can, absolutely. What he determined was the best glass money could go is med died receive a 60% federal match to bring the total amount to $40 million. And unfortunately, that request was voted down by the senate. And so, my comment is that ultimately, you guys were the last gate keepers of those funds. If we don't do this, those funds will sit there, hopefully until the next legislative session where they can be reappropriated to 6 that has a little more need. Now, the events trust fund, legislation started as a sales tax rebate only for the olympics and I think it was the pan-american games and each legislative session it's growing, growing, being amended. And so originally they were only eligible to receive their sales tax back which left the hotels, alcohol and car rental for the state's and the cities, it seemed like a more equitable share of the rev where we could really tangibly see this is what we're going to get out of it. Now it is 100% of five different tax items would is going to be left over for us? That's the part that I don't get. Please don't support this. If anybody has any questions about my solution --
next speaker is chris. I'm sorry, your time is expired. Council member shade.
I'll ask you for your continued -- just to finish your thought. You asked so nicely I kohn resist. I'm interested.
Thank you very much. There's different tiers of these events programs. You don't have to go into a 10-year contract. We could do a one-off like do they with the super bowl. You don't have to go into a 10-year contract. We could do a one-year, try it before you buy it why get married with somebody that justs in and said marry me knew or I'm leaving.
Council member shade has the floor. Mayor pro tem.
This is a one year interlocal agreement. We would have to renew it each and every year so in essence it is a one-year deal.
And the other solution would be what is call as special events trust fund which requires no local contribution and eligible to receive 50% of the taxes attributable to the event. They would make that are sacrifice along rest of us and they would not have to be involved. Thank you very much. Those are all the speakers we have signed up against. We have one speaker signed up neutral, debby russell.
I'm not neutral,s will that must be a mistake, and stephanie collins is back in the chamber. [One moment please for change in captioners]
this is not free money, this is real money. In the 2009 legislation that was pushed through contains a safeguard. It says the local entity can say no. We can turn it down. We're the gatekeepers. I think the senator is challenging us to do just that. We're not in a hurry. If f1 stays here without the kickbacks, austin taxpayer win. And if not, we're not worse off than before. We need to get through the budget first. We need to get a lot of studies done. We need a lot of outside analysis of the studies. That will take months, we have until march 20, 2012, let's take our time. Thank you. those are the speakers signed up to speak. I will make one comment. There is no money planned for this event and will be none planned because the city is not allocating money for the formula one event. So robert wood and michael esparza are also signed up neutral. They will answer questions but don't wish to speak. Those are all the folks we have signed up today on item nine. As I said earlier, we're not taking action on this item. So unless councilmembers have comments or some discussions, we can go to the next.
Mayor I have comments.
Mayor leffingwell: Councilmember cole. y'all might come up to the mic, just in case. It is important when we tell the public this is a proposed or potential deal we may execute that will have no risk and no cost to the city, that we actually execute legal documents to make that true. I will try to tell you what my concerns are and what I would like to see in a draft that comes back to council there may be multiple drafts that we're asking for. I understand that these are many things that need to be points of negotiation. First, we have heard a lot of testimony about the $4 million and the four mid- that is being put up-front. I think it would be -- the $4 million and the $4 million that were being put up-front. I think it would be clearer if we would have the partnership guarantee that $4 million in years two through six. We can explore the bonding issue in connection with that, but the options of it ever being city money that I think should be taken off the . Second, is the local organizing committee. I heard the names of many that were mentioned. I know some of them. I'm sure they're fine individuals. I know in the statutes they're given the authority to act on behalf of the city and no one at the city had anything to do with selecting them. So I would like to have a situation where we have first and foremost, management represented on the committee management of the city manager designated but also a council appointee. That would be one potential council appointee and that that be a part of the discussion we talk about expenses and us not knowing what the expenses are. We are going to eventually get some hard numbers. And we know that if the local organizing committee is working is behalf of the committee, they may have expenses and separately, the city may have expenses. Because of that, it is imperative we have a local organizing committee that we have confidence in and the public has confidence in, in some type of process to make that happen. There has been a lot of discussions about the increment and how it is calculated and how we know and about the new taxation revenues that come from these. And recognizing there are a lot of potential taxations from the city of austin for this event, including the sales tax, hotel occupancy tax, motor vehicle tax. So one solution to that is to make sure that we have our auditor or an external auditor actually along with the controller or comptroller, actually audit their numbers. That should be a point of negotiation. The idea is that we don't have to take their word for it, but we need to get somebody that is independently, that we select to do that. Finally, I think it is a legitimate debate when you talk about some taxes we already have the authority to collect and the increment we will receive on those taxes and whether or not that is or is not city money as opposed to potentially new taxes that we don't currently collect. Let's start with new taxes. I would like to give awe priority to requesting new taxation authority, such as, as councilmember morrison already mentioned, potential user fees or ticket sale prices or that type of thing. Also as we talked about in the work session, I'm not sure about all the implications of eCOMMERCE BECAUSE I EXPECT That much of this revenue will be purchased outside of austin and even outside of the country. But understanding the intricacies for the point of origin sales tax or user fee, I think would be one place to start. Second, I do not think or do not know whether or not alcohol beverage taxes at the actual venue, if we have not annexed it, is actually taxable. I ask that question, but i haven't got an answer to it. But I believe the state or the comptroller could authorize us to collect those taxes and that is a point of negotiation, a point to be researched. I suspect that that might be substantial. So I would really like -- those would be new taxes. I know we already have an existing car rental tax. I don't know if it would take legislative action. I suspect that it might, to actually increase that or whether or not we're at our cap. But we can actually have an item that asks formula one to endorse and help us in terms of a potential increase in the car rental tax. Of course, I'll recognize that that doesn't only have to do with this event, but hotel occupancy tax also does not only have to do with this event. Finally, another additional revenue source that we should explore is parking fees. I don't know to what extent they would be amenable to remitting those to us or allowing us to run that facility and actually extract revenue. So I think all of those potential new sources would take away this debate about whether or not increments on our existing taxing authority is actually city money. But, I'm not saying that the contract should not reflect the potential for our increments on our existing taxing authority to be included. I'm simply trying to suggest it is contingent, if we don't reach some of the eligible expenses, or the new taxes are given that authority -- are given first priority. Finally, this is probably most important, I agree with all the speakers that have said, we're on a tight time line. And given that the only thing I know to do about it is to suggest that we have an outside contract lawyer specialist help with this. Because one thing I'm clear about is that it is complicated and formula one has spent a lot more time and a lot more lawyers on it than we have. Bringing an event of this size and magnitude to austin, what do not need to be -- to cheat, I guess is the best way to say that. So -- and especially given that we are really pressed for time. So that would be my preferences. Potential support. I'm not committing. I need to see it in writing. anything else, council? Councilmember shade. one thing I would like to see is a cash flow analysis that gives me a better idea of how this will work. I want to see it graphically. We talked about it. I think it is confuse to this public and confusing to me still about exactly how this -- it is essentially an escrow account, certain expenses are reimbursable. There is some real appeal to that since we dot other events that we don't get to get reimbursed. It comes straight out of the fund. I want to see that explained more clearly than it has been. Secondly, I want to understand if there is an increase -- if this does have an upside, is there a way to do anything to direct some of the revenue upside to certain things within the city? And we have done that in other deals that we have looked at. I want to understand if that is possible in this one as we negotiate this contract. I think most of the other things have already been raised through the other comments that were made. But I also wanted to find out -- I want specifically to have addressed the issue that brian rogers brought up with respect to the ratio and geographic spread there. I think that is really important for us to understand before proceeding. anything else? Councilmember morrison. I want to add to what has already been said. Rodney, when you introduced it this morning, I thought i heard you say that one of the speakers was going to give us -- you referenced that i asked for a rundown on other venues [inaudible] and i thought you said one of the speakers was going to do that for us. And if that happened, it didn't happen in enough detail for me. I wanted to keep that still on the table.
Yes, steve sexton has given job numbers, I didn't hear him give the attendance figures. We will request him to put that in writing. I believe jeff haun is working on that as well.
Morrison: yeah, great. I think attendance numbers will be important. Based on the conversation about the environmental impacts and all, I know roy mentioned some discussion about, you know, the potential for greening this. Chris, when we heard your conversation, it sounded like you didn't think there was much potential for that. I am interested in hearing ideas that might be on the table for that. And another thing that I'm not quite clear on now. I think staff might be able to help put this information together. Just to get real clear on what the authority is that the l.l.c. has to act on? You know, what specifically they can do on behalf of the city. Don't think I'm clear on that. As for the other things, i think I mentioned that the legal department would put together responses to some of the comments. That would be helpful. The issue of the expenses being reimbursed up to $551,000 is different than what we heard before. The point is, there is a lot more information that is still needed for myself and others in the public and I do want to mention that the issue of economic incentive ordinance that we have, I know staff says that it is not applicable here for one reason or another, but for myself, i think that that has really laid out for us the values that we have in terms of evaluating things. And that is basically transparency. I'm for all of us in the community to evaluate information. I'm for public input and a realistic assessment of the cost as well as the benefit. I hope we're all on the same page of working. I have a couple of questions I would like to skiff the applicant. First is the issue that is raised about the makeup of the l.l.c. What I heard proposed was possibly adding another member to the l.l.c. I don't know what the legal implications of that would be. I think councilman coal has proposed -- it is only a proposal -- that the city manager or his representative be on the committee. You have already allowed a city representative to be on the committee as soon as one is appointed, but in addition, councilmember or councilmembers added to the committee. I'm not volunteering myself, .. [Chuckling]
if you are asking me if that is a possibility, the answer is yes. I think that should be something that we discuss. I think it is a definite possibility.
And the other substantive question that I think has been raised is the possibility of a surcharge on ticket prices to be, I suppose, used in lieu of the tax sharing plan that is currently on the table?
I think that is definitely a possibly, that's correct can be discussed. Maybe it is a surcharge, incremental maybe it is planned. that is not something that has to be approved? It is already in the legislation as an alternative?
I think it is. This is part of the conversation we have with the comptroller's office as well to make sure it is eligible revenue. it is something that sounds like it might be a supplemental source of revenue.
All of these will be with the comptroller's office as well. There will be ideas on that. I think it is a good idea to look. finally, the issue of greening up the project. That has been addressed several times in the past. The architect's specific charge was to build a green facility. Do you have a comment on that?
We have a lot of green initiatives going on. Restoring part of black lake, texas a&m looking at the landscape architecture, for landscape strategies. We're open and continue to do that because we think that is important as well, especially on the worldwide stage. I heard something in the past about the structures themselves being built -- green building structures and purview parking area.
We don't want to pave parking that is used five times a year. The excess parking will be grass parking. The architects are charged with doing that. The architecture of the racetrack is simple. Grandstands, building, conference areas. A thousand acres is not a lot of building space mest -- there are conference buildings, et cetera.
There are. We will look at that.
Mayor leffingwell: Councilmember riley. there were air-quality monitors in the area. Talking about the air quality to do monitoring going forward. And the issue of formula one came up. We talked about the possibility of -- whether there could be a way to do air quality monitoring in the area and how would that be done through the stations, temporary, mobile stations, aerial monitoring? Are you aware of any other efforts that monitor air quality impacts?
I'm not aware. That is something we can look at.
I know the staff over at pep talk were talking about air quality and had discussions about that. [Inaudible]
thank you for your consideration and long day.
Mayor leffingwell: Councilmember spelman. we have asked a lot of questions of a lot of different people, I don't know your name, chris laben to come back and give us additional stuff to chew on. I wonder, madam manager, could you stuff how this information will be made available to the public to weigh in on all the information that is assembled here?
Councilmember, as soon as we get all of it together, which I calculate as 21 items that we have been requested to do in the next few days, we will get it out on a website so it will be available for everyone. I suspect there will be substantial interest in the website. Find a way to make it easy to get to.
That is not exactly within my control. But we will make it happen. the fewer levels to find it, the more people can get in on it. More people will have a chance to look at all the information that is available. The easier it will be for us to make a good decision on the support.
I think we can put it on the economic development website. We will entitle it "formula one" so it should be very easy to get to.
Mayor leffingwell: ok. Thanks very much. We will go on to -- see the folks are here to give us a presentation on item 14. Take up item 14, which is a presentation on staff redistricting plan.
Are you waiting on me? we're ready for item 14, if you want to start.
Mayor, I believe they went to get the staff to come back for item 14.
Mayor leffingwell: ah, ok. mayor, council, my name is sidney falk. I am with a law firm. We have been engaged by the city to assist staff with the development of charter amendment language and redistricting draft plans. Council will recall that on april 28th, it passed a resolution calling for the resolution of charter amendments and called for the staff to present within 90 days, within the end of july, a plan for six single-member districts two at-large and the plan. I'm here today to show you the initial draft of four, 621 plans. I want to emphasize that these are just illustrative. Intended to begin the discussion of the design, a plan that ultimately would be chosen by you. So there will be imperfections. There will be areas in the plans that people would like to see fine-tuned. Again, they are illustrative plans to give you a sense of what kinds of drawing options there are and also I think they will illustrate the constraints that we face in drawing a six single-member district plan. Let me remind you that there are a number of legal principles that apply to the development and ultimate preclearance by the department of justice of any plan that should be adopted following a charter amendment the most important of those is the one-person, one-vote requirement that the population of each district, be approximately the same within a 10% tolerance. Since we are starting from scratch, that is, we have an at-large system and no single-member districts at the moment, that of the four basic principles is the most important. You will take into account the other legal principles that i have tried do in the development of the draft plans, with the assistance of staff. Let me just show them to you, make a few comments, in turn, about each of them. The format for this presentation will be to show you the map and that you should have had maps handed out so you should be able to look at them. And I believe there should be tables reflecting the population and demographic it is for each of the districts and each of the plans. There will also be slides showing those. I think the objects of interest will be the plan maps themselves. First plan we designated, example plan a. And there it is. The basic premise that I began with in developing these plans was to develop a strong hispanic district and as strong an african-american district as could be constructed. The african-american population in austin and the hispanic population in austin, for that matter, is substantially dispersed. There are few areas of high concentration, primarily east of the interstate. It is those areas that form the core of the two respective minority districts. Let me begin with district number 1 in the northeast quadrant of the map. This area concludes, in its southern portion, the primary concentrations of african-american populations. So that core element states the beginning point for the development of a district representing the strongest autorelatively strong -- the relatively strongest african-american district that can be drawn. The substantial amount of population, which is reflected in the depiction of that district, as it extends to the north and its very northern terminus crosses the interstate. District 2, in the southeast part of the city represents the core of hispanic concentration in the city and constitutes district on its own. Once those two districts are drawn, I turn to the development of the other districts and began as a practical matter, with district 5, which is in the southwest part of the city. I want to point out that if you go to the farthest, north extent of district 5 where it appears to be a finger connected with district 6 in the northwest, let me point out in fact, that is not a connection. That is one of the conundrums that we face in drawing plans for the western part of the city. That is two points look as if they meet each other. In fact they don't. They are separated literally by f.m. 224. It is not possible to have a connected land bridge to the west. That constrains the drawing of district 5 to the kinds of configurations you see here. That is all of the southwest extreme of the city limit area, building population inward, toward the river and eastward toward the bounds of district 2. Once enough population is garnered for that district to be within a range that would bring it within the 10% balance that is required overall, for all the districts, we basically stop drawing there and begin the development of the next district, which in this plan has been denominated district 4. It includes substantial portion of the new end part of the city, south of the river and extends north of the river on the east side of the central part of the city. And bounded there by districts 1 and 2. The next task is, as a practical matter, to develop districts that define the west and north portions of the city. In this plan, I developed district 3 in the extreme north and built it eastward and when it encountered district one, in south toward the middle of the city, adjusted the boundaries, what is left is district 6, just as easily begin drawing district 6 send -- and what is left of district 3. Sort of the same balancing act. Highway 183 is the boundary between the two for most of their proximity. This plan produces in district 1, african-american total population percentage of 22.09%, switch to the tables. 09% And hispanic total population of 44.39%. It is noteworthy that those percentages change when you look at voting age population, in particular, the hispanic 48% of the total voting age population of that district and african-american portion of that population increases slightly to 22.64%. As a practical matter, this is essentially the limit of the african-american strength that can be built into a single district. I won't say these are [inaudible] it is possible by adjusting boundaries. It is be increased slightly but not substantially. That same demographic is of interest for district 2. District 2 as drawn shows a 67% total hispanic population percentage, which drops to 99, almost 61% in voting age population. In the development of subsequent plans, having created these two core minority districts, I retained them. I didn't try to develop a significant number of variations. The idea was to have an apples-to-apples kind of comparison with respect to the other four districts reflecting variations in the other plans. I turn now to plan b, which is a variation. It begins with the same districts 1 and 2, and substantially the same district 5. There may be some very modest differences in the assignment of district 5 but they're not remarkable. The southern portion of district 4 and the remaining northern portion of district four remain substantially the same as well. The difference here, it is a different way of handling the north and west portions of the city. .. Labeled 3 and shown in blue in the extreme north and west actually collects the entirety of the far north and far west portions of the city. And what is left is shaped into district 6. The core population and demographic numbers for the minority districts 1 and 2 as I said, remain unchanged in this plan. In all of the plans, I might remark, we made an attempt after the initial development of the basic shape of the plan to conform as nearly as we could within the population balance requirement, the boundaries to the austin neighborhood planning area that the council has. Plan c is a slightly different variation on the same theme as plan b. Again, districts 1 and 2 are substantially the same. District 5 is substantially the same but very slightly changed in the center area. Center of the nort boundary with district 6. Here, we are seeing what i would call a horizontal treatment of the inner northern part of the city. That is, district 4 and 6 essentially form a very fat horizontal band across the city. They're contrasted with the variation in plan d, which i will show you, which treats those two districts in the same basic central part of the city as vertical north-south predominantly-shaped districts. I think these four plans form a good basis for beginning the conversation of what kind of districts we may want ultimately to fashion and adopt. They are designed to illustrate the multiple ways that you have to draw, especially the inner city portions, the closed-in portions of the city. The constraint, they illustrate the constraints for the fashioning of districts in the north, west, and the southwest. Let me finally show you, for ease of comparison, all four plans on one slide so you can see more easily the differences between them. Are there any questions? excuse me. Say that again councilmember shade. I'm sorry. Go ahead.
Shade: I have a question.
Mayor leffingwell: Councilmember morrison has a question.
Morrison: thank you. These are interesting. I know there is a lot of information here. Not just visually but all the backup data and everything. I think that councilmember cole and I had an item on the agenda today to start up a task force, a group of folks to start working through the things. We postponed it and will work on it during the next few weeks. The question I have is -- it might not just be for you but it might be for staff as well. Is there a way to start accumulating all this information on line for folks to look at? Because I think it would help start the conversation because I don't think anyone would be [inaudible].
Mayor leffingwell: what? that might be a question for the city manager. I'm sorry. Things are a little distracted up here because I think we are having technical problems. So the question is, all this great information I know that eventually we'll probably have a real significant website, but if we can at least get started by getting this information up, I'm not sure a lot of people knew we would be going into this detail and all. Ok. Great. I think that that would -- i think a lot of people would want to start looking at this and really going through it. A lot more analysis, obviously, there are going to be a lot of questions about these. I know obviously, people will want to compare them to other kinds of breakdowns. One of the things we talked about are breakdowns with regard to how they line up with neighborhoods, neighborhood plan areas. So that is to say that I think this will all be part of the future conversation. .
Mayor leffingwell: Councilmember. one of the questions was one information would be made available to the public and what time to assist the public. Understanding the maps we were drawing and draw maps on their own. I wonder if you would give a progress report on what information you would give to allow them to do that? are you talking to me? I was asking a question to either city manager garza or falk.
I think everything we had previously and this packet can be made available to the public. if I were interested in drawing a competing map or put mying hand to it to see if I could come up with a map that I like better, what information would I need to do that? And what information could be made available to the public to help them do that and perhaps come up with a map that they're happier with, according to the same kind of standards we're looking at these maps for.
Without committing staff to agree to do this, I will say we have been discussing some of the details of exactly that problem, providing not only access to seeing the maps, but finding out useful information. There are a couple of avenues that we can, I think fairly quickly do with the assistance of staff and the city demography. We routinely provide to the files and the demography has his own mapping software what are called digital shape files that describe the plan dimensions and lines and so on so we can reproduce maps that are suitable for loading on the website and public access. The tables that I showed you briefly and quoted from are with the graphics in each of the plan and easily displayed. One of the things that the staff and gemming on raver and I talked about is the possibility of providing access to a map that shows the population and some level of basic demographic breakdown by county election precinct. I will say that all of t maps were drawn on the basis of whole election precincts, except in place yes -- places where we had to split them either to conform better to a neighborhood area or in particular because the population of an entire election precinct was too large to go into one or the other districts in their boundaries. One of the suggestions that the demographer made was to provide a map of all the applicable election precincts and their total populations and the breakdown of the voting age population, relative percentage of hispanics, african-americans and asians, so if somebody who wanted to put together a different election precinct building-block based map would have the ability to do that. one reason that is important and should be at the top of the priority list is because it is relatively low-tech. The shape files, the racial breakdowns by voting precinct, down to even the block level are already available online at the census bureau. And relatively high-tech users have already got access to that stuff. The low-tech users that don't have the software to use the shape files and other relatively high-tech stuff we're talking about might like to play this game. They need it at a higher level of aggregation, in a list format like you talk about listing precincts one after another. That would allow anyone to pretty much put their hand to see and see what they can come up with. And make available the same information at a slightly larger level of aggregation not just voting precinct level but the planning area for those folks to see in the other areas.
I think both of those are imminently possible. They weren't possible for the short time frame I had today.
Spelman: of course not.
That is something we can explore with the demographer. Let me show you one of the things I have to display. Plan a, if you look closely at the red line overlay in the central part of the city, you can see the neighborhood planning area super imposed on this plan. I used the boundaries to try to conform all of the maps to within a feasible bounds. An attempt was made in each of the plans to take the first cut of that. I think those overlays on maps can also be made available by the demographer. I congratulate you for succeeding admirably well. You weren't able to keep all of the neighborhoods together, you had a lot of conflicting objectives and you did a remarkable job, I think to the extent possible of keeping the neighborhood planning areas together. Given the charge of drawing the districts and keeping communities of interest together for the neighborhood planning areas qual fies as an interest. It is either all on one side of the line or the other side of the line.
Thank you. let me remark, there is another and even more low-tech way, if you will, for folks to present ideas. That is to submit comments. Inasmuch detail as is reasonable on specific aspects on one or more of the plan. They might say, for instance, we don't understand why plan a has this neighborhood in this district instead of another district. Give staff and us an opportunity to examine those suggestions without the necessity of having to propose an entire substitute map.
Thank you very much. talking about public process, I want to reiterate some of the things we talked about on tuesday in public work session about this. One is we have started to plan the town hall meeting september to begin to receive public comment and roll out a lot of this stuffer, start -- that would be a pretty good time interval, if we could get the proposed maps up online, somewhere accessible to the public. They would have time to mull this over before they come in to begin this process. Also by then, hopefully the council will have appointed a committee to look at charter revisions of all kinds, including a lot more, that would be the anchor of the town hall meeting and of course other meetings. They could encourage the public participation during their deliberation. So that is one way that we plan. Now that apparently the time restriction is not on us, to be prepared for november 2011, election, which is what was driving the 90-day time line, we will have plenty of time to go through the process to make sure we have public input. I also want to remind folks that the current plan would be to not include a map in the charter amendment with revisions creating the districts, instead, that would be created separately by order. So the one thing, it could change from time to time for events such as -- that of course ideally would be completed by any charter member election. I wanted to kind of go over that ground, talk about what the general plan was already. Councilmember morrison. clarify a question on what you just said. As far as the map being separate from the charter, stow is done by ordinance, did you say it was your preference that that be -- one of the issues is when is that map or ordinance adopted? Before or after the charter? what i meant to say is before that takes place. It is contingent on it passing. I agree with that completely. That would make sure the public has the opportunity to know -- I think that most voters are going to want to know what the district lines look like.
Morrison: agreed. any other comments or question? Does that complete your presentation.
One final comment. Staff asked me to remind you this is the first set of discussion plans to begin the conversation. And that staff of course will -- looking at the plan in more detail and may come back to you with some suggested modifications for your consideration. and we certainly welcome that. Thank you. So before we go on to our remaining two items on the agenda, I would like to take a moment of point of personal privilege, I know it was mentioned a moment ago that councilmember spem was enjoying a birthday cellbrasion -- celebration today, but councilmember spelman is not the only one. Debra thomas up here a minute ago, city attorney also has a birthday. Also in my office, nancy williams, here birthday. We want to recognize all the birthdays today. [Applause] all right. We go to item number 12, pulled by councilmember morrison.
Morrison: thank you.
Mayor leffingwell: Councilman morrison moves approval of item 12. It is approved 7-0. Item 13. Councilmember morrison moves the approval of? 13. Second by spelman. Approved. No. Passes on a vote of 7-0. Now we can go to our 4:00 p.m. Public hearings. Beginning with item 56.
Thank you. Item 56 is to conduct a public hearing and amend the ordinance of the city code to allow city council or land use commission, which is the land use or zoning commission to initiate a single zoning case for multiple noncontiguous properties if they have interim zoning or unzoned and two, waive the zoning application fee for a period of one year from the time of annexation for certain properties where interim zoning does not permit the existing use. This is actually -- this is both commission and you council, to not have to deal with multiple items on your agenda. I recently being we had a green shortage zoning case brought to you that had seven or eight separate cases. So we would be able to bring all of those to you in one single case. It will make the clerk's job a little easier. It will be one item on the agenda instead of seven items on the agenda, which will make the minutes simpler. We would still obey all the notice requirements, posting requirements. Still a staff report done. It will save a little time and energy in that regard. The second part speaks to when we annex properties. Not uncommon to waive the fees for one year after annexation, particularly off the tracks. This formalizes the process. In this case, it would make it more consistent. We will do this for all the properties that would come in that are not consistent with zoning and they would have the initial zoning case weighed. That is not to say a year or several years after rezoning, they would have to go after the normal process. I don't believe you have any speakers signed up for this item. It was brought to you by the planning commission, and request your approval. no citizens have signed up to speak. I move a motion to adopt spem. adopt all three readings.
Mayor leffingwell: Discussion? All in favor signify by saying aye. Opposed, no. Passes on vote of 7-0.
Thank you mayor, council. now at item 57.
Councilmembers, mayor, my name is stephanie jensen. We're hear for a public hearing for the renaming of a street 48 1/2 street to gene johnson. All the requirements have been met and I believe we have four speakers. we do have speakers. Any questions of staff before we begin? All the speakers are in favor. I am assuming I'm the only one on the council who actually remembers gene johnson. Met him at a gas station [inaudible] for many years. Very good automotive mechanic.
I still get my car done there.
Mayor leffingwell: you did?
I still do. Electric, they work on electrics? [Laughter] with that, we will go to the speakers. We have david kenser. Is there a specific order that you wanted to take? If it is all right with david, is that all right with you? Pamela sartillo.
I would like to thank everyone for the consideration of keeping a part of austin history alive. I'm assuming, does everyone have a copy of the bio? You have it to read. johnson has done for the community through the government since 1946. I also really appreciate your time and the speakers that have come with me to support this, if they do not need to speak, if I do not need to speak, that is fine. If it is something like before, if it is quick and approved, we don't want to waste your time as well. Just a little bit about my dad. They have some old timey pictures, you can notice, if you remember. He started out in 1946. A brief overview of the biography was from the navy. He came to austin on 48th street. As he expanded to both corners to 48 1/2 with the u-haul, auto parts and corner of 49th street as well. Through the years, there were all sorts of things that he did for the community that some I didn't learn about until his death. He supported many, many families, helping them out through the years. The community, he was strong in education. He would give so many of the members jobs at one of his locations or pay for their school or loan them money to go to school as far as families go, he had reasonable rental rates on any of his properties and always tried to inspire people to buy homes and later in life, he started m.e. gene johnson realtors. Many people said it was his inspiration or people he mentored that started different businesses. He started with the optimist club sponsoring little league teams. Through today, we're still doing that. We often have people come up and say thank you for the gloves or the shoes or the uniforms that he purchased for the different boys. At that time, it was only boys could play, and he made sure everyone played. And that everyone was given the opportunity to play. They played with a good attitude as well. He was recognized by the texas senate. He was -- the house of representatives honored him on his death. He received many awards as being the top business person with different endeavors. Not just the service station, but also the dealership. One of the things that he always said and it is a motto that you might see if you still go by the station today is service with a smile. And it is something that -- that's his life, honest, dealing with people and looking and dealing with everybody as always the same, with a great heart. Because of, that a community icon, we offer to change the name of the street. thank you. Next speaker is david kenser.
Thank you. Mayor, mayor pro tem, council, my name is david lee kenser. I go by my middle name lee. I am a city employee working in the g.i.s. I am not in that capacity but as his grandson. When I looked at this, i THOUGHT, 48th 1/2 STREET, I Thought we can get rid of a half street. I thought it is a single block, low impact. I thought that particular area, he's had so much impact on the community personally, i can give you three examples, when I was growing up, I was living in a rent house provided by him with my mom, stepdad and brother. Later in the house with a friend. I was afforded employment by air force auto supply and i got to play on the little league team my aunt talked about. Through providing affordable housing, employment to countless other and the community services around the area, he has done quite a bit if the area and I hope you will honor him with the street name change. Thank you. thank you and I also appreciate getting rid of another 1/2 street. Martin circio.
Thank you for letting us be here today. We really appreciate it. I imagine some folks might think it is self-serving or some people might think it is family stuff, but I'm here to share with you something that I think we assemble very important that is part of history and part of austin history that is very, very important. We have a little dvd we want to show. It will take about a minute. What is important about this part of history, in my mind, is that it speaks to an issue OF A MAN IN THE 1940s AND 1950s THAT DID SOMETHING HE Didn't have to do during the time when our culture was having some decision -- division, I would like to show that just for a second.
let's say that your father did a lot for a lot of people. A lot of people don't know johnson did because he never made it known. He helped a lot of people in my neighborhood, especially. Whereas you had people who did not have the best transportation at times. You could depend on him kind of let you slide when you took your vehicles to him. He kept a lot of families functioning that way, in my neighborhood. And, um, we lost a good man. I'm sorry. I've known him --
I think the point I would like to bring forward for all of us. I hope some child asks their pop or dad who is gene johnson. I want to say gene johnson is a person that added history to this great city. If you have questions or anything else, I would be happy to answer them. thank you. Margaret ioki.
Good afternoon. Thank you for your time. I moved to austin in 1971. gene johnson was the first man I met here that measured up to the longstanding kalamazoo image of a texan. Tall, dark, straight talking straight shooting man that wanted those around him to be happy. He did everything he could to make it so. This included his families, neighbors, friends, employees and his community. He hay knack for making people feel good about themselves. He always put forth his best effort and expected and thereby inspired others to do the same. And he made it fun. I never think about gene johnson without smiling. Smiling back, really. It would be nice as I traveled to work down airport boulevard, to have a reminder on an austin street sign to smile, to be kind, to have fun, and to always, always do my best. Gene johnson street sign would do that for me. Thank you. thank you, margaret. And those are all the folks that we have signed up that wish to speak. Also in favor, but not .. George burnett, brook trammel, steven blankenship, grace alvarez, shawn sarcio, and renee ward. With that, I will entertain a motion on item 57. Councilman riley. I will move approval with a comment.
Mayor leffingwell: Councilmember riley moves approval.
I thank the family members for being here and hear their stories. It is nice to see the documentary evidence of everything that your father brought to this place. I really enjoyed the history. I'm working on a project involving this section of airport boulevard between i-35 and lamar. I found that the neighbors around there are fiercely devoted to it and really treasure the tradition along that boulevard. It is so interesting to me to johnson's history. The boulevard, I know, took shape right after world war ii. In fact, down in the history center, the first time I could find airport boulevard mentioned in an austin phone book is 1947, that is when the area was taking shape. Most of the buildings in the area date to the same era, the postwar era. It is interesting to read johnson that moved there, along with his family, in 1946. And opened up that station right there on that corner and had that house right behind there. And so that stretch of airport has changed a bit but still a lot of the buildings that are there and more importantly, wonderful local businesses that people treasure. A part of the challenge that we are working on is how to preserve the local businesses that are there and people treasure and make a better environment so the people can enjoy them on foot or bicycles. As we do that, as we transform -- as we work to transform airport boulevard in a positive way, it is so critical to remember that we're not talking about replacing what was there, we're talking about building upon the very special places and traditions that we have come to know along airport boulevard. So thank you so much for contributing to our understanding of the area. I want to thank you for everything your father and the family brought to that area. So it is a pleasure to be able to do that.
Cole: mayor. [One moment please for change in captioners]
opposed, no, passes on a vote of 7-0. item 58. Thank mayor and council, gregg, planning and development review department. Item 58 is conduct a public hearing and consider an ordinance to add the north lamar neighborhood planning area to the restricted parking area map in accordance with section 12-5-29. This is an item where it would basically require people within this portion of our city, which is just the north lamar planning area, and that's an area gem bounded by braker to the north, rundberg to the south, 35 to the east and north lamar boulevard to the west. Basically to keep them allow them only to park in a driveway area. This has -- is brought as part of our neighborhood process, neighborhood contact team voted on a vote of 6-0 to bring this forward to you. If it does get approved this evening, we would actually [inaudible] a notice to everyone within this neighborhood planning area that's affected by this ordinance, in both english and spanish notifying them of the specifics and penalties of that ordinance. We have no one that signed up, I believe on this item that's in opposition. And I'll pause at this time. If you have any questions, there is a map and backup that illustrates all the neighborhoods in the city that have already opted into this program, and this would be one that's already surrounded to its north, its west and eastbound ris by areas that have the same restriction. -- no citizens signed up to speak in a public hearing. So comments or motion from council is this. move to close the public hearing and move approve on all three readings. second by council member morrison. Discussion? Mayor pro tem. I have one question. Greg, the ordinance that allows to neighborhoods to be opted in, doesn't it stipulate it has to come to council before april -- i want to say 15 or 5 -- greg
there's an ordnance that changed the times. You have to apply, I think in february of the year, and I think we actually changed because this came up several years ago and you pointed out and I think we had an ordinance/amendment to take care of that. so we amended that?
We amended the ordinance, I think about three years ago to address some of the issues and so now they come up at the same time, and because mayor pro tem, some of your comments we formalized the process and changed the procedure. So both parking and mobile food, which is the next item, come up typically at the same time.
Martinez: okay. Thanks. Thanks, mayor. motion on the table? All in favor say aye.
Mayor leffingwell: aye. Opposed say no. Passes on a vote of 7-0. Item 59. 59 this is to conduct a public hearing and consider an ordinance amending the map consideration the areas that would apply to additional regulations applying to mobile food establishments, to include the summit oaks association. This is a neighborhood that is located just north of 183 near riatta terrace parkway, which is its border to the north and west, and west to cow path on its eastern boundary. We do have an individual, a mobile food vendor representative that is signed up. As I understand it, they represent some of the mobile food vendors in the east riverside area, which is not an item that's before you tonight, but to just be clear on what we're doing this evening, staff would suggest that we postpone this item to the 23rd, allow the individual to speak with my staff because they have not spoken to my staff prior to this evening to just make sure that they understand the area in which this applies. So when it comes back on the 23rd everybody is clear on what this amendment exactly does. The individual is here and there are several that are here to speak, but as i understand it, he's representing individuals from the riverside area. Antoll en gary, do you oppose a postponement?
[Inaudible] all right. Come forward and speak, then.
Yes, I would like to postpone to the 23rd.
Mayor leffingwell: okay.
Thank you. so, council, I'll entertain a motion to postpone till june 23.
So moved. council member cole moves -- so moves. Second by council member spelman. Any discussion of that? All in favor say aye.
Aye. Opposed say no. Passes on a vote of 6-0, council member riley off the days.
Thank you, mayor and council. so council, I believe that's all the items we have on our agenda, so without objection we stand -- huh? -- We stand adjourned at 4:38 p.m. Gg greg guernsey
good evening, everyone. and time for proclamations and music at city hall. Every thursday that we have a council meeting we always have live music and we present proclamations as well. And so I'm honored to introduce our live music for this evening, michael j. Milligan. Michael is former front man and band for delta rue with whom he recorded two albums in 2000 and 2003. Since 20005 he's been the lead singer of alter altar boys, louisiana attitude. He's been a singer since the age of 5, a drummer since the age of 18 and a professional musician since 1973, in texas, iowa, colorado and europe. So welcome, michael j. Milligan, and the altar boys. [Applause] [ â™ªâ™ª music playing â™ªâ™ª ] [ â™ªâ™ª singing â™ªâ™ª ] [ â™ªâ™ª music playing â™ªâ™ª ] bar mansion [ â™ªâ™ª music playing â™ªâ™ª ] muse [applause]
way to go, guys. That was awesome. Great job. I hear that we can catch you at maggie may's blue monday blues jam, a tradition that's been going on since 2006?
Do you have a web site or anywhere we can get your music on-line?
You can go to myspace or facebook mike milligan and the alter boys, altarboyz, and you can also go to doc blues records.com.
My bass guitar is leland parks. [Applause] mike brad tatolla on the guitar. I have a proclamation I want to present to you guys, be it known whereas the city of austin is blessed with so many creative musicians whose talents extend to virtually every musical genre and our music scene thrives because audit audiences support newcomers alike and we're pleased to showcase and support our artists. Therefore, i, lee leffingwell, mayor of the city of austin, texas and the live music capital of the world, proclaim june 9, 2011 as mike milligan day in austin, texas. [Applause] actually, we don't have any agenda items so if you-all want to stay around and jam afterwards we can do that. All right. This is a huge honor for me to present this next distinguished service award. I'm going to go ahead and read it and then I'll say a few words about this fine man standing next to me. This distinguished service award is presented to randi moreno for his untiring service and commitment to our citizens during his 31 year tenure as a dedicated employee of the city of austin and the austin fire department. Randi is deserving of public acclaim and recognition. Randi's career has taken him to stations in all parts of town such as the office of emergency management. He's also been an active volunteer serving on the public safety task force as an afd recruiter and as a founding member of the austin hispanic firefighters association. Randy served as president of the austin maybe council, and the austin saltillo sister city association. We will miss his hard work and dedication on the job and in his answer -- in his ancillary positions. We wish him much success as he enters a new stage in life. This certificate is prepared presented with our admiration and presentation for his decades of public service this 9th day of june 2011, and it's signed by mayor lee leffingwell and contains all the council members. And we want to thank randy for all his years of service. [Applause] most of you know -- used to be an -- I used to be an automatic firefighter and one of the -- -- austin firefighter, and one of the first individuals take approached me -- I can't look at this lady, randy's daughter-in-law. She's killing me. He was one of the first individuals that came up to me when I was probably on the job -- I was a cadet for maybe three days and him and frank alvarez both came up to me, and they literally put their arm around mere and said, whatever you need, if you need any help, reach out to us. You know, let us know what you need. We want you to become an austin firefighter. You know, we want to you make it through cadet school and be successful. And he literally has had his arm around me ever since, helping me every step of the way in everything that i did, supporting me when i ran for president of the association, supporting me when I ran for council, and then for re-election. But what you guys don't know and what most people don't know is all of the -- all of the work that randy does day in and day out, including this last legislative session where he and other firefighters teamed up to literally save our firefighters' pension, which was on the brink of collapsing because of the legislature. There are a host of thousands of current and retired firefighters that i personally believe owe this man a great bit of gratitude and debt and will forever owe that to him because of his tireless work. And so randy, I'm honored to call you friend. Congratulations. [Applause]
thank you, mike, mayor pro tem, mayor, council members. I want like everyone here that's in attendance -- i want to thank them, my mother and father and family and brothers and sisters that are here, my son and daughter, my grandchildren that are here. I want to thank them for being here and putting up with the years and time of service I've given. It's a great honor serving the citizens of austin, and of course all my colleagues back here, every day -- or every third day we work together, and it's always been a real pleasure working with city people, with these gentlemen, young men and young women. And I talk about the young men and young women and see the legacy that are behind us, and, you know, the work is still yet to be done, a lot of work, mike. You and I both know that. So it's not that I'm just, you know, leaving the fire service. It's just another chapter in my life and another chapter that's still dedicated to the citizens of austin and to our community. So thank you, everybody, for being here. My friends that are here always to support me, amelia, gary, all the friends I've met through all the days of service. So I appreciate it and it's been a great, great career, and as I said, I'm looking forward for the next -- next opportunities in my life. So thank you. [Applause] McA FEE so we talk all the time around this place about how important small business is to our economy here in austin. We are really a city that's so heavily dependent on small business. I said several times that these two statistics still impress me, that 80% of the businesses in austin have fewer than ten employees, and almost two-thirds of the public sector jobs in the city of austin are with companies with fewer than 100 employees. So I know it's a cliche, but clearly in austin small business is a big business. So the city knows that. We've been working -- we've had a small business development department in our economic growth department for over ten years now that endeavors to find ways to help small businesses start up and to grow and expand, and this is an celebration of our second graduating class and a relatively new partnership we have with the university of texas professional development center. This is our second graduating class from that group, and this is a program that we're very proud of. They offer programs in over 23 different business topics, and have an average of about 7,000 hours of training to about 1500 individuals. So tonight we're going to honor five entrepreneurs who have taken six classes to receive their small business success skills certification, and so with us here tonight I've got five of these. I'm only going to read it one time because they're basically alike. But these are to richard powell, richard? Toi powell, I think they're related, and mike kote, anna estrada, and edward gemar. So congratulations to all of you and I'm going to read your certificate of congratulations, which reads we are pleased to congratulate in this case toi powell, but you all get one just like this, in having successfully completed course work to qualify for the small business success skills certificate. This specialized small business training that helps participants build a core of business skills is offered through a partnership with the city's small business development program and the university of texas at austin. Is there another one? Maybe so -- professional development center. We join ut in recognizing and congratulating this year's class of small business owners on pursuing the education needed to help build strong, viable businesses within our community. This certificate is presented in recognition thereof, this 9th day of june, the year 2011 by the city of -- city council of austin, signed by myself, mayor lee leffingwell. So congratulations, toi. Here's yours. [Applause] did you want to say something?
Thank you, mayor. stay up here just a second. Second.
My name is vicki valdez and I'm the small business administrator for the city of austin. I got to tell you, I'm really proud of this business class. These people, they have taken six classes, so it wasn't like this happened just overnight. They really truly dedicated themselves to the classes that we as a small business development program offer, and if anybody is a business owner out there looking to start a business, we have some wonderful -- the city has some wonderful resources available, and I encourage you to please contact our office or visit our web site. Our small business development program, our phone number is 974-7800. And our web site is austinsmallbiz, that's with a z.org. Before I turn it over, none of this would be possible if it weren't for the support and excitement we get from our mayor, thank you, mayor, and our city council members, and also internal management system of the city of austin. Today we have rosie, in economic growth and development services, and it was her idea to begin with, you know, we should have a program and partner with the university of texas professional development center and host these classes and have this wonderful graduation. So with that I want to point out, rosie, thank you very much, and these are the successes of your idea. And last I'm going to turn it over to kimberly kapella, with the university of texas professional development center so she can say a few words. [Applause]
thank you so much, vicki. I wanted to begin by recognizing one of my esteemed colleagues from the university of texas, aaron gutierrez. Please stand up. Without aaron successful program management, we wouldn't be where we are today, and I wanted to thank vicki and rose i. I was so excited when rosie approached me about two and a half years ago to partner with the city of austin small business development program, and we do consider the partnership an honor as well as getting to be a part of the small business community because it is vital to austin. And last but not least, i wanted to thank mike, toi, richard, anna and edward. Thank you so much for participating and I wish you the best of luck in your business.
All right. [Applause] thank you. Appreciate it. now we're going to address a subject that's very men's health, and the first sentence is kinds of -- kind of disheartening in this proclamation, talking about men have a life expectancy of six years less than women. So our objective here is to do something about that, turn that -- we want to live six years more than women, right? [Laughter] well, it's true. You know, -- I think it is true. I know it's true in my case. I'd almost rather take a beating than go to the doctor. You know, I've got to be forced, you know, on my deathbed, taken there on a gurney or something like that. But that is a big part of addressing health, not just for men but men and women and everybody. So that's what this -- this recognition is about. And the proclamation reads whereas, despite advances in medical technology and research, men continue to live an average of six years less than women, and whereas, as a part of a congressional initiative men's health month is focused on heightening awareness of preventible health problems and encouraging men and boys to be proactive about their health through regular medical checkups. That's the part we don't like, right? Exercise, and positive lifestyle decisions, and whereas, men who are educated about the value of preventive health are more likely to participate in health screenings and to recognize the importance of positive health attitudes and preventative health practices, and whereas we urge all citizens this month, especially our men and boys, to seek regular medical advice and early treatment for disease and injury. Now, therefore, i, lee leffingwell, mayor of the city of austin, texas, do hereby proclaim june 2011 as men's health month in austin, texas. So here to accept this david phillips to talk a little bit more about this subject. [Applause]
well, it's certainly my honor to accept this proclamation, and in my life I usually do the proclaiming, no one listens, but it's good to accept this from the mayor. I thank you very much. It's my honor on behalf of urology austin, which is the company I work for, and all the men and women who participate in the care of men throughout the city, i thank you for the proclamation. This proclamation is just another exasm of our city's -- example of our city's commitment in keeping austin as one of the fittest cities in the state, if not in the country, and i certainly admire the mayor's fitness council and the city's commitment to our community health needs. The purpose of men's health month is to heighten awareness of preventible problems and to encourage early detection of treatable diseases. This proclamation gives health care providers public policy makers and the media, as well as individuals a platform to encourage men and boys to seek medical advice and early treatment about men's health issues. I think most importantly, though, it opens up a conversation about conditions that us men are reluctant to discuss. Sometimes those guys need a little extra reminding, and you know who you are, to do what we need to do, and so i think this is an excellent opportunity to do that. Urology austin is committed to providing the austin community the most ethical and quality urologic care available, be it diseases of the prostate with the di vinci robot, be it modern therapy the operation for radiation and oncology, be it treatment of testicular cancer, which effects young and low men, or low testosterone treatment, or be it treatment of erectile dysfunction with the link to cardiac disease. These are all important diseases to be aware of and urology austin and myself are very pleased to be partnered with the city in this proclamation. Every day is men's health day at urology austin and it's good to see that the city is involved as well. Something that really dovetails very nicely to this is what we're doing at urology this october. We're doing a dash for dads and this is sort of like the komen run which is designed to bring awareness to and to earn money for the study of prostate cancer. On october 22. It would be nice to do it in june but june is hot. So october 22 is the date and it's at camp mabry. com our web site, and if you want to participate, mayor, we expect to see you there at camp mabry, perhaps, october 22. [Laughter] or any of you-all's friends. what are we doing?
5K run, or walk. [Laughter]
mayor lfingwell: yeah.
But most importantly, i think, we all have men in our lives so remind your men in your life to get checked and to do what they need to do. And again, thank you very much. you're very welcome.
Appreciate it. [Applause]
I have to say this because I've always wanted to meet david phillips and given the fact I'm not ever likely to be one of his patients, he has an identical twin brother who is one of the greatest ob-gyn, in town who delivered both of my babies. I don't know who your mother is but she must be so proud to have children who are doing so much for health and wellness in this town. Thank you so much. Nice to meet you. Next I get to present a certificate of congratulations to the lbj student newspaper staff. I know we have a few folks here but I'd like to call up janet elbom to accept. I spend a lot of time with daily texan standards. I love when I get interviewed by high school newspaper staffers and i have to say your program is incredible. I've met several of your graduates in the past and i don't know if you-all are going to be pursuing careers in journalism, but if you are, you're getting phenomenal training, and if you decide to do something different, this training will take you very far. So I just want to applaud you and the program and I'm going to read this certificate of congratulations. The staff of the liberator -- I'm sorry, i can't read this fancy calligraphy that you have here, sorry. This is to recognize the staff of the liberator is deserving of public acclaim and recognition. The lbj student high school newspaper won a high school newspaper gold crown award from the columbia scholastic press organization, an international student press association, all facets of the publication, writing, editing design, content, art and graphics were found to be top quality. We are as pleased as newspaper adviser janet elbomb with the students' accomplishment. They've done austin proud. This is issued on the 9th day of june in the year 2011 and this is signed by the entire council and mayor leffingwell, I want to say congratulations, the teachers and people who make this work and the students who are learning and going to be huge contributors to our community on an going basis, I say thank you and congratulations again. [One moment, please, for [applause] this is for a group of kids from casis school. They did every details. Raised a ton of money to help the new austin pets alive location come alive. I will read the certificate. Then I know some of them will talk about what they have done that is so incredible. This certificate of appreciation presented to the casis 5th grade leadership group. They held a dog walking for paws community dog walk the students worked to promote, set up and put on the event. More than two hundred doing participated. The event raised more than $2,200 for the new austin pets alive cat adoption center. We're pleased to recognize the students for there are community spirit, activism and on behalf of some of our most treasured furry friends. I want to say thank you. This is also signed by the mayor. And the rest of the city council and again, all the parents that are here, congratulations on really getting your kids to do such an exciting project. I know we have ellen jefferson from austin pets alive. But I think we want to let one or a couple of y'all come up and talk about your experience. You want to come forward and tell us about what you did?
I -- it always really bothers me to know that so many animals are killed every day because some shelters can't take them all. And I love animals, and we really wanted to help them. So we put together this dog walk, and ended up being the first official sponsor of the austin pets alive terry town center. [Applause]
[inaudible]. ellen, do you want to say anything, too?
I want to say congratulations to all of you and congratulations to dr. jefferson. And I want to be sure to mention that my aide, nancy williams over here, nancy is a graduate of casis elementary. [Applause] and she has brought her 5th grade school picture here. So if you want to see her afterward, she'll be glad to show it to you. Congratulations, again, guys.
And it's her birthday.
Ah, and it's her birthday, too. one other thing about nancy. I was there on the gr opening at the event. I'm amazed she got out. I thought she would leave with two or three kittens. It was an amazing sight to see her there. Do you want to say a word or two before the photo? jefferson for all you do.
I want to say thank you for putting this together. It is amazing what you did. It will save a lot of lives. I also appreciate [inaudible] and nancy williams for coming to the open house. And the event. It was great. It is a great start to the life of the program. you be in the picture, too. [Applause]
ok. We have one more proclamation before we are through. I am joined here -- we're just gonna wait a minute. That's all right. There is a lot to celebrate over there, good jobs, guys. I'M HERE WITH melanie McAffair with the barr mansion reopening. It is the one year anniversary of the fire. If you are not familiar with barr mansion, it is a lovely space in northeast austin. It was an event facility established in 1981. They made the grounds the first usda certified organic special events facility ever. That is an amazing accomplishment and really melanie has made a lifetime commitment to sustainable living. It is all exemplified at barr mansion. If you haven't had a chance to go out there and be able to enjoy a wonderful event out there, I hope you do in the near future. I understand that barr mansion is now a 08 facility. So none of this comes as much of a surprise if you know melanie because she serves on the zero-waste alliance. And if there is something going on about the environment and the city of austin, you know that melanie is going to be there. So it has been a very big year for melanie because since one year ago the fire today, barr mansion is 100% up and running and running on their full schedule and back to full schedule serving the citizens of austin with a wonderful event space. I would like to mention also that melanie has always been very generous with the space and has done a lot of pro bono hosting of terrific organizations, nonprofit organizations in town. So with that, though, I think that everything that you know about barr mansion, it really is eco entrepreneurial spirit. I am delighted to be here to recognize the great work that melanie does throughout the community and also with great excitement that barr mansion is back up and running after a fire that essentially devastated, right? The ballroom to the ground. I hope you will tell us about it. IT WAS A 1700s BARN IN THE First place and you replaced IT WITH A 1700s BARN. I would like to read the proclamation. Be it known that whereas melanie McAfee and barr mansion embody austin's green philosophies as an organic and green facilitator, barr mansion is certified as the only usda certified organic and zero-waste facility in the nation. Barr mansion suffered a fire when lightning struck the artisan ballroom. The rebuilding process has been a year in the making with the focus on local materials, artists, craftsmen and energy efficiency with the green building program. Whereas with the resurrection of the 1700 dutch framed barn turned ballroom, the venue is bigger and more magnificent than ever, it is a signature venue that is uniquely austin. I lee leffingwell, the mayor of the city of austin do declare this barr mansion and the ballroom open.
Thank you so much. All I can say is that it is definitely great to be back. It has been a long and difficult year, but a fun year of planning the new ballroom. This time around, we definitely went more organic and more local than we ever did before. So this time, all of the doors, the windows, every component of the building was produced by local craftsmen. And from even the door knobs. So every little piece. And I want to thank the community for the support and contributions that they gave to us. We are happy to be back. Thank you so much. [Applause] â™ªâ™ª