City Council Ron Mullen Mayor John Treviño, Jr. Mayor Pro Tem Council Members Mark Rose Roger Duncan Sally Shipman Mark E. Spaeth Charles E. Urdy Jorge Carrasco City Manager Elden Aldridge City Clerk FOUNDED 1829 Austin City Council MINUTES For - June 20, 1984 7:30 Ρ.Μ. SPECIAL CALLED MEETING Council Chambers, 307 West Second Street, Austin, Texas Memorandum To: Councilmember Urdy called to order the meeting of the Council scheduled for 7:30 P.M., for the purpose of a public hearing on the 1984-90 C.I.P. and 1984 Bond Program. Councilmember Urdy also noted the absence of Mayor Mullen and Mayor Pro Tem Trevino. The City Manager reviewed his recommendations on the 1984-90 Capital Improvements Program. The recommended bond program includes the following: General Government Electric Utility Total $ 273.3 million 123.8 million $397.1 million. THREE-YEAR GENERAL GOVERNMENT BOND PROGRAM The Recommended 1984 General Obligation Bond Program totals $273.3 million. • • • Program Category Health/Safety Transportation/ Roadways Recreation/Cultural General Government Total Recommended Bond Amount (Millions) Percent Of Program $ 22.8 229.5 14.2 6.8 $ 273.3 8.3% 84.0% 5.2% 2.5% Council Memo 2 June 20, 1984 ONE-YEAR ELECTRIC UTILITY BOND PROGRAM A total of $123.8 million is recommended for Electric Utility improvements: Program Category Recommended Bond Amount (Millions) Percent Of Program Generation Transmission $ 80.5 39.7 65% 32% Distribution and Streetlighting 3.6 3% Total $ 123.8 BOND PROGRAM OBJECTIVES The Recommended 1984 Bond Program was developed to achieve seven key objectives: 1. Continue and complete projects funded in earlier bond programs. 2. Maintain and repair existing facilities particularly for the central city. 3. Control the program's impact on the operating budget. 4. Conform with Council goals and policies, and other existing facility plans. 5. Continue to meet the basic health and safety standards of our city. 6. Accommodate the annexation plan. 7. Establish transportation, fire, and utilities as forming the emphasis for funding needs in the community. GENERAL GOVERMENT PROGRAM HIGHLIGHTS Health/Safety Fire Police - - - $22.8 million $14.9 million $2 million EMS $.6 million Hospital - $5.3 million Transportation Public Works Roadways - - $229.5 million $219.5 million $47 million Council Memo 3 June 20, 1984 + $49 million $10 million Drainage Traffic Signalization Recreation/Culture - $14.2 million - $13.5 million Parks and Recreation Library $.7 million - Other Cultural Facilities The City has been approached by the art museum for possible funding for the Laguna Gloria Art Museum at capital cost of $12.2 million. Governmental Support - $6.8 million The Municipal Facilities Plan recommended that the City be organized into four service zones. The recommended bond program continues the implementation of this plan by funding the following facilities at the South Service Center: Radio Shop VES Garage Central Stores Facility Street and Bridge Facility . Construction Inspection Field Offices An analysis has been completed on the cost savings of reloeating the existing Central Stores Facilities from the central elty to the various service zones. The capital costs of these facilities will be offset in twelve years by related cost savings. TAX RATE IMPACT GENERAL OBLIGATION BONDS - Recommended Bond Program - Projected Tax Impact on Average Homeowner Fiscal Year Debt Service Tax Bill 1983-84 $.23 $138 1984-85 .26 187 1985-86 .30 216 Increase/Decrease Tax Bill $-0- 49.00 29.00 Though an impact will be felt by the Austin taxpayer as a result of this bond program it is important to acknowledge the cost savings, cost avoidance and service improvements this program produces. These positive impacts range from less traffic congestion and less increase in facility maintenance costs to providing additional fire protection for our growing community. This program represents an investment in Austin's future and the continuation of our excellent quality of life. Council Memo UTILITIES PROGRAM HIGHLIGHTS Electric - $123.8 million 4 June 20, 1984 : The recommended one-year bond program is based on the Electric Utility Department Transmission and Generation Plan. The Generation Plan addresses the necessity of providing new capacity to meet anticipated demands while the Transmission Plan addresses the reliability of the system for the remainder of this decade. The Generation Plan provides maximum operation flexibility for the City's electric system by primarily balancing western coal fired generation with small gas peaking units. The recommended one-year bond program provides phased funding for the Generation Plan in the amount of $41.5 million. The initial phase involves: • • • site selection study for western coal fired generation. preliminary environmental studies. site acquisition. purchase of initial increment of gas-fired units. This phased approach will enable the Electric Utility to initiate planning for a power plant site and to meet possible short-term -term capacity shortages. ity shortages. It also provides an opportunity for the City to continue to explore disposition of our interest in the South Texas Project. Should disposition be achieved, these costs could be recovered. A significant part of the one-year program are transmission improvements. These projects are critical due to the record pace at which the electric system has grown in the past two years. In order to determine the economic feasibility of a privately owned and operated Resource Recovery Generating Plant, a request for proposals will be issued and evaluated during the next year. This analysis will indicate whether this approach will prove to be more economical than a public financed facility. The balance of the Electric Utility bond program is for other equipment and improvements. Council Memo ELECTRIC UTILITY RATE IMPACT 5 June 20, 1984 The incremental rate increase impact associated with the one-year recommended bond program for the electric utility ratepayer will range from 1.5 percent to 2 percent in 1984-85. A 1.5 percent increase will increase the annual average residential bill approximately $12.92. A 2 percent increase will cost an additional $17.22 per year. OTHER RECOMMENDATIONS Public Events Facilities - Funding for a new civic center will be made at completion of the feasibility study. Aviation - Interim improvements to the existing airport are proposed to be funded through a combination of current reve- nues, federal funds and other short-term financing. Transit - Further improvements to the Transit System will await development of the Austin Area Rapid Transit Authority. Water and Wastewater - A recommended Water and Wastewater bond program will be transmitted in the near future. CONCLUSION In developing this recommended program, the total capital needs of the City were carefully reviewed , evaluated, and prioritized . Also all project costs were adjusted to account for inflation. Electric Utility improvements were also adjusted to pre-fund reserve requirements. In order to minimize the impact on the ratepayer and meet critical needs it was necessary to move several projects into the later years of the six-year CIP: Program Departmental Request 1.25 billion General Government $440.0 million Electric City Manager Recommendation $273.3 million 123.8 million In finalizing the recommended program, I worked closely with all departments to identify the City's most critical needs. This pro- cess ensured the formulation of a financially responsible program I will which meets the most pressing capital needs of the City. transmit to Council, within two weeks, a status report on our current CIP activities as well as recommendations for improving the City's construction management capabilities . Councilmember Spaeth said that the Bond Program was awesome, impressive, and necessary. Council Memo 6 June 20, 1984 Paul Jacobs, Retired Senior Citizens of Austin, wants the Council to consider two budget items they think is of vital interest of seniors. First, don't delay the work on renovating the Old Bakery. Jacobs also asked Council to allocate funds to build a new Senior Center in the South section of the City. Kathy Lowry, Vice-president of Education of Laguna Gloria Art Museum Board of Trustees, requested a cultural arts facility in Austin. Jo Lynn Hoffman supports a downtown facility for Laguna Gloria Art Museum." Martha Hartzog says we need a downtown Art Museum. She says it is just as important as it is to have basic services such as transportation and Water & Wastewater, T. Galleon, President of the Advisory Board at the Senior Activity Center, told the Council the City needed Stand Alone Senior Citizen Centers. Ponta La Garza, supports the downtown Laguna Gloria Musuem. Frank Buck, President of the South Hampton Neighborhood Association, encouraged the City Council to include $150,000.00 in the bond package for the development of Longview Park. Roy Boer, Pastor of Christ Lutheran Church, supports a South Austin Senior Citizens Center. Dan Lowder, Advisory Board Memeber of the Senior Activity Center, also supports more Senior Citizen Centers. Patrick Keller, Member of Adaptive Programs Advisory Board for Parks & Recreation, would like new buildings to be accessible to handicapped citizens. Rosalinda Salinas, President of the Fairview Estates Neighborhood Association, wants more undeveloped property for parks and greenbelt. Max Nofziger addressed the Council about the electric generation. Jack Goodman, President of Cooper Lane Neighborhood Association, appeared before Council and requested more recreational facilities in Far South Austin. Brooks Kassem, President of the South River City Citizens, requests that Council not spend the money that Parks & Recreation has asked for Stacy Park. She suggested that the money be used elsewhere. Harry Nolen, Ex-Councilmember, told Council that Austin did not need a new civic center. Nolen said that the hotels have large enough facilities. Council Memo 7 June 20, 1984 Doug Aldridge, Member of the South Hampton Neighborhood Association, asked Council for more City parks in South Austin. Will Rogers, Member of the Southwood Neighborhood Association, addressed the Council for drainage projects and sidewalks in his area. Jesse Aguleta, Chairman of the South Austin Neighborhood Advisory Board, stated that parkland is needed now in South Austin. Glenn Rosalez, Vice-President of the SouthWest Austin Neighborhood Association, says that Ben White improvements are needed. In addition, Garrison Park, Longview Park and Bouldin Park need improvements. Delores Delgado said that her concern was the need for more parks in South Austin. Motion The Council, on Councilmember Duncan's Motion, and Councilmember Rose's second, closed the public hearing. ADJOURNMENT The Council adjourned its Special Called Meeting at 9:15 P.M. :: :