ر TY OF AUST FOUNDED ... Austin City Council MINUTES For September 03, 1987 Council Chambers, 307 West Second Street, Austin, Texas Memorandum To: Mayor Cooksey called to order the meeting of the Council, noting the presence of all Councilmembers. EXECUTIVE SESSION Mayor Cooksey announced Council would enter into executive session pursuant to Article 6252-17, Texas Revised Civil Statutes Annotated, to discuss matters of land acquisition, litigation, and for personnel matters. No final action, decision or vote by the City Council will be taken on any subject or matter unless specifically listed on the agenda for this meeting. 1. Pending Litigation - Section 2, Paragraph e a. City of Austin v. Houston Lighting and Power RECESS Council recessed its meeting at 1:40 for executive session and resumed its recessed meeting at 2:10 p.m. AGREEMENT IN PRINCIPLE, SOUTH TEXAS NUCLEAR PROJECT Mayor Frank Cooksey gave the following statement found on the next seven pages concerning agreement in principle to sale of the City of Austin's 16% share in the South Texas Nuclear Project. A press conference followed, Motion .i The Council, on Councilmember Carl-Mitchell's motion, Councilmember Humphrey's second, approved the Agreement in Principle with Houston Lighting and Power. (7-0 Vote) Council Memo 2 Press Statement South Texas Nuclear Project Mayor Frank C. Cooksey : September 3, 1987 9/3/87 i ! For a number of years the City of Austin has been attempting to sell or trade its 16% share of the South Texas Nuclear Project and to be removed from any further obligation, financial or otherwise, connected with that project. We have attempted to accomplish these objectives in a way that reasonably recognizes the value of our investment in the project, gives Austin the same amount of power which we wished to obtain from the South Texas Nuclear Project and settles all current legal controversies between the City of Austin and Houston Lighting and Power Company. Through a long period of negotiation during the last two years, including very recent negotiations related to our lawsuit against Houston Lighting and Power Company, we have finally achieved agreement with HL&P on a conceptual framework for settling all outstanding claims and disputes between us and removing Austin as a participant in the South Texas Nuclear Project. This is an agreement which accomplishes major goals for both parties. This agreement upon a conceptual framework is only the first step toward a final settlement, but this step is a major breakthrough in our negotiations. The next step in the process includes negotiation and Council Memo 3 9/3/87 agreement upon definitive documents, which will spell out the detailed terms of the agreement. Following agreement on the definitive documents, the settlement will need approval of regulatory authorities and action by our partners in the South Texas Nuclear Project. The proposal for a conceptual framework was unanimously agreed upon and signed by each member of the City Council prior to submission to HL&P and has been accepted by the Chief Executive Officer of HL&P. I wish to thank the representatives of HL&P for entering into good faith negotiations and hard bargaining with the City of Austin in order to accomplish agreement on this conceptual framework. Each member of our City Council and our city staff negotiating team deserves commendation for their steadfast efforts to achieve this goal, as well. The terms of the agreement on a conceptual framework for settlement are as follows: (Read terms of settlement) This agreement will not result in surrendering our trial date in the litigation now pending in Dallas. Preparation for that litigation will continue in due course until a final agreement is reached and the definitive documents have been approved and signed by both parties. Council Memo 4 AGREEMENT IN PRINCIPLE 9/3/87 Houston Lighting & Power Company ("HL&P") and the City of Austin ("Austin") hereby set forth the terms of their agreement in principle, as follows: 1. The City of Austin would convey its 400 MW interest in STP, together with nuclear fuel and related property, to HL&F in exchange for a 400 MW interest in HL&P's Limestone lignite plant, which has been completed and placed in service. This conveyance would result in Austin having an undivided proportionate interest in the land, capital equipment, and fixed personal property in Limestone. (a) A 200 MW interest in Unit 1 of Limestone would be conveyed on June 1, 1988. (b) A 200 MW interest in Unit 2 of Limestone would be conveyed on January 1, 1990. (c) HL&P would operate each unit in accordance with a detailed Operating Agreement to be mutually agreed upon as part of a final definitive agreement. 2. HL&P would (a) assume Austin's STP obligation for to-go construction and fuel costs effective September 1, 1987, (b) pay Austin $19.7 million for a portion of construction costs incurred during negotiations and (c) purchase Austin's nuclear fuel for $30 million. 3. 4. HL&P would assume Austin's obligation for continuing capital improvements and decommissioning for its 161 STP interest. Austin would assume responsibility for its portion of the capital improvements and fuel, operating and maintenance expenses (including indirect costs) at the Limestone plant, as established by annual audit conducted by the City of Austin through a mutually agreed upon auditing firm of excellent national reputation for accuracy and fairness. All records bearing on cost would be available and be fully indexed and described to the auditors for inspection. dispute concerning the annual audit would be submitted to arbitration under the terms of the arbitration clause, with interest at prime rate accruing during the pendency of arbitration on sums due to either of the parties under the audit, if such audit is upheld. Any 1 09/02 18:29 -1- 7402187 #04 Council Memo 5 9/3/87 5. HL&P would reimburse Austin for its actual reasonable litigation expenses in pursuing its claims against HL&P and Austin would reimburse HL&P for disputed Brown & Root legal costs. (Currently estimated as approximately $12.0 million in Austin legal costs and $1.0 million in HL&P disputed Brown & Root legal costs.) 6. 7. ខ. HL&P and Austin would dismiss all litigation and other claims currently pending against one another and enter into mutual covenants necessary to effectuate the terms of this agreement. The present purchased power contract between Austin and HL&P would be reduced to 500 megawatts effective January 1, 1987. Such reduction shall result in 1987 payments to Austin by HL&P of $7.0 million in excess of the payments made and to be made by HL&P during 1987 based on the assumption that such contract provided for a 300 megawatt requirement. All claims arising out of performance thereunder prior to January 1, 1987 would be released. The settlement would be contingent upon approval by the Public Utility Commission (PUC) and the Nuclear Regulatory Commission, by final orders rendered on or before December 1, 1987. It would be necessary that the PUC final order (1) approve the amendments of certificates of public convenience and necessity, (2) contain an unqualified ultimate finding that the transfers of ownership herein proposed are in the public interest, (3) approve the transfer of Limestone investment dollars to the 168 interest in STP, and (4) contain no findings, conclusions, reservations or observations by a majority of the Commission that raise reasonable doubt that the transfers would result in rate treatment to HL&P less favorable than the rate treatment of HL&P prior to the transfer of interests. 9. The settlement would be contingent upon customary closing conditions, including favorable actions and approvals by the Boards of Directors of HII and HL&P and the City Council of Austin. No contract obligation, express or implied, would come into existence until the formal execution of definitive documentation, including but not limited to, the Operating Agreement for the Limestone plant. 10. The settlement would be contingent upon the following: (a) Austin would have the right to its net ownership share, 200/720 of the available capability of the unit, firm, at all times the unit is on line. 09/02 18:30 -2- 7402187 #05 Council Memo 6 9/3/87 Austin would have the right to use its share of each unit as responsive spinning reserve in accordance with ERCOT guides and would have the right to full dispatchability of its share of each unit. Details of these uses would be in accordance with the Operating Agreement. (৮) HL&P will deliver power and energy to Austin without wheeling or line loss charges by HL&P. Austin will assume responsibility for claims for : line losses and wheeling charges asserted by third parties. (c) Neither unit of Limestone would be taken out of service for reasons other than ordinary and necessary maintenance without the consent of both owners, which consent would not be unreasonably withheld. 11. HL&P would provide Austin a proportionate share of the benefits of the warranties and performance guarantees it has received from its contractors and suppliers. Austin, prior to signing definitive documents, would be allowed to use experts to inspect all operational records of the plant and the plans and specifications and as-built plans for the plant, as well as conduct an on-site inspection of the plant. HL&P is obligated to provide Austin with a written list of all presently known defects or operational problems at Limestone 10 days following execution of this agreement in principle, and would supplement such list 10 days prior to signing of definitive documents and to execute an affidavit at closing stating that such disclosures have been made. Disclosures concerning matters actually or potentially in litigation would be treated so as to preserve any relevant legal privileges. The definitive documentation would provide that, upon final closing, Austin's acquisition of its share of Limestone would not be based in any respect upon any warranties or representations by KLEP as to the plant, its equipment, capabilities, defects or other characteristics, other than those shared benefits of warranties and performance guarantees provided by contractors and suppliers of HL&P, described above. 12. HL&P Wwould endeavor to comply, in good faith, with all state and federal regulatory requirements, including air and water quality and solid and hazardous waste disposal requirements, in the operation of Limestone, and use appropriate equipment to maintain ambient air quality standards, or better, required by federal and state law. Austin may refuse to pay its share 09/02 18:31 -3- 7402187 #06 i Council Memo 7 9/3/87 400/1440) of any fines or penalties imposed as a result of any enforcement action prosecuted by a state or federal regulatory agency for a violation of air or water quality or solid waste disposal regulations related to the operations of Limestone. However, LEP could seek to have Austin pay its share of such fines, either through Austin's consent or through arbitration, if such fines or penalties were imposed in spite of HL&P's adherence, in good faith, to the then prevailing interpretation of legal standards and requirements or a good faith effort to achieve compliance with law and regulations for which there was no generally accepted prevailing interpretation of legal standards and requirements. In addition, HL&P would hold Austin harmless from any legal liability resulting from the operation of Limestone by HL&P, without Austin's consent, in violation of any valid order of a state or federal regulatory agency respecting air or water quality or waste disposal, unless: (1) such agency had issued a variance or indulgence permitting the temporary continuation of the violation pending efforts to correct the problem, or (2) legal compliance with such order was not required until a final administrative and/or judicial determination. 13. HL&P would indemnify Austin and hold it harmless from any damages which may result from Austin's ownership of its 16 share in STP. 14. HL&P would operate Limestone Units 1 & 2 in good faith to the benefit of all owners of Limestone, and will not act in an arbitrary and capricious manner to the detriment of any owner. HL&P will notify Austin of all material information regarding or affecting operation of Limestone within a reasonable time upon receipt of such information. Except for detrimental results occurring from actions by HL&P or Austin undertaken in bad faith, or carried out in an arbitrary and capricious manner, all benefits, burdens, losses and liabilities resulting from ownership or operation of. Limestone would be shared on the basis of Austin bearing 400/1440 and HL&P bearing 1040/1440 thereof, unless otherwise provided in this agreement in principle. 15. Austin would refrain officially from: (a). any negative actions related to the (b) licensability and public reputation and integrity of STP; any negative actions related to the quality, safety, engineering, and construction of STP; and 09/02 18:31 - 4 - 7402187 #07 Council Memo 8 9/3/87 (c) any negative actions related to the character and competence of HL&P and other owners of STP. 16. Austin would neither aid nor assist intervenors in any STP proceedings, including NRC and PUC proceedings. 17. There would be no public release of information about this proposal without an agreement between HL&P and Austin as to the manner and timing of the release. 18. All disputes between Austin and HL&P concerning interpretation and performance under this contract would be subject to mandatory and binding arbitration. The arbitration clause will be drafted as a part of the definitive documents and its mutual acceptability is crucial to the consummation of this agreement. 19. Within two weeks of the approval by HL&P and Austin of this conceptual framework for settlement, San Antonio and CP&L would have to indicate to HL&P their intention not to request withdrawal from STP. The contract would be contingent upon San Antonio and Central Power and Light Company unconditionally waiving their rights of first refusal within four weeks after the execution and approval of definitive documentation. The undersigned hereby execute this Agreement in Principle to evidence their approved appro of the terms hereof this 3rd day of September, 1987. HOUSTON LIGHTING & POWER COMPANY CITY OF AUSTIN By Don D. Jordan Chief Executive Officer By Frank C. Cooksey Smoot Carl-Mitchell Sally Shipman Michael Max Nofziger John Trevino, Jr. Charles E. Urdy George Humphrey -5- 09/02 18:32 7402187 #08 OF 08 Council Memo 9 9/3/87 Council held a press conference following the signing of the Agreement in Principle. RECESS Council recessed its meeting from 3:00 p.m. to 3:25 p.m. MINUTES APPROVED The Council, on Councilmember Carl-Mitchell's motion, Councilmember Humphrey's second, approved minutes for special meetings of August 24, 25, 26 & 27, 1987. (4-0 Vote, Councilmembers Urdy and Shipman and Mayor Pro Tem Trevino out of the room) CITIZEN COMMUNICATIONS Mr. David Kirkland discussed City of Austin Fire Code. Ms. Linda L. Wiles discussed permits granted to American Cab Company. Mr. Dan Harrison, Ms. Nina Butts, Mr. Paul Robbins and Mr. Jeffrey A. Hunt did not appear. OLD BUSINESS - ORDINANCES The Council, on Councilmember Humphrey's motion, Councilmember Carl-Mitchell's second, approved the following ordinances as follows, all in one consent motion. (5-0 Vote, Councilmember Urdy and Mayor Pro Tem Trevino out of the room, unless otherwise stated.) Southern Union Gas Company Franchise Passed through second reading of an ordinance amending Ordinance No. 860918-T granting a franchise to Southern Union Gas Company. (4-0 Vote, Councilmember Urdy and Mayor Pro Tem Trevino out of the room, Councilmember Shipman abstained.) Austin 150 Commission Passed through second/third reading of an ordinance creating the Austin 150 Commission. Item Postponed Postponed to October 15, 1987 is consideration of second/third readings of an ordinance amending the Water and Wastewater Service Area Ordinance (810820-B) to include the Uplands. Zoning Ordinances Passed through second/third readings of ordinances amending Chapter 13-2A of the Austin City Code (Zoning Ordinance) to cover the following changes: Council Memo 10 9/3/87 (1) AARON P. and S. H. 71 West STELLA GARDNER C14-85-288.196 From "I-SF-2" to "GO" First reading on June 18, 1986, (7-0). Conditions have been met as follow: Restrictive Covenant incorporating conditions imposed by Council has been executed. (2) JOHN N. NESS C14-85-288.190 6908 Old Bee Caves Road From "I-RR" to "CS" First reading on June 18, 1986, (7-0). Conditions have been met as follows: Restrictive Covenant incorporating conditions imposed by Council has been executed. (3) L.H.C. JOINT VENTURE By Thomas J. O'Meara, Jr. C14-85-288.56 S. H. 71 West From "I-RR" to "GR" & "LR" First Reading on June 18, 1986, (7-0). Conditions have been met as follows: Restrictive Covenant incorporating conditions imposed by Council has been executed. CONSENT RESOLUTIONS The Council, on Mayor Pro Tem Trevino's motion, Councilmember Humphrey's second, adopted the following resolutions in one consent motion: (7-0 Vote) Capital Improvements Program Approved acquisition of a 0.3650 acre (15,898.45 S.F.) tract of land for the purpose of U.S. Highway 183 right-of-way. C.I.P.No. 85/62-02. Marvin K. Collie, et al, owner) Approved acquisition of 0.11 acre of land for street purposes on the Industrial Street (North) United Drive Project. (Nagel Manufacturing and Supply Company) C.I.P. No. 85/62-62. --- ------- Authorized the filing of Eminent Domain Proceedings to acquire: a. A 3,164 square foot tract of land and a 2,040 square foot tract of land in fee simple out of the James M. Mitchell Survey No. 17 in Travis County Texas from Larry Peel for the Spicewood Springs Road, Phase II Project. C.I.P. No.73/62-31. Council Memo 11 9/3/87 Capital Improvements Program - Continued Authorized and approved of the development of a professional services agreement for engineering services required for the planning, design and construction of Water and Wastewater Utility Adjustments for Phase I of the Highway 183 from Loop 1 to Southern Pacific Railroad Project. C.I.P. Nos. 83/22-05 and 83/23-05. Authorized and approved of an agreement with Southwestern Bell Telephone Company for the adjustment of their facilities from a private utility easement located within the new right-of-way for Brodie Lane Phase II. C.I.P. No. 79/62-14. --------- -------- Approved of the following change orders: a. In the amount of $34,506.20 to Garney Companies, Inc., for the South IH 35 Transmission Main Contract. (1.66% increase of the original amount of $2,075,421.80) C.I.P. Nos. 85/22-64, 87/22-39 and 85/62-56. b. In the amount of $41,143.84 to Chasco Contracting for the East Bouldin Creek Lower Channel By-Pass, Phase 1. (5.40% increase of the original amount of $761,903.00Total change orders to date equal 20.928. Contracts Approved Approved the following contracts: a. : b. NELLOOR 25495 Whitesell Street Hayward, California SIEMENS ENERGY & AUTOMATION, INC. 12200 Northwest Fwy., Suite 200 Houston, Texas - Eight (8) Pulse Oximeters, Brackenridge Hospital Twelve (12) Month Supply Agreement Total $46,596.00 BH7-081 - Two (2) Vacuum Pumps for the main condenser on the #4 Unit at the Holly Power Plant, Electric Utility Department Total $79,600.00 87-0356-CM c. PAN TECH ENGINEERING 804 Park Two Drive Sugarland, Texas - Two (2) Boiler Gas Oxygen Analyzers for the Decker Power Plant, Electric Utility Department Total $49,350.00 87-0372-CM Council Memo Pipe Line License Agreement 12 9/3/87 Approved entering into a pipe line license agreement with the Missouri-Kansas-Texas Railroad right-of-way to interconnect the Green and Davis Water Treatment Plants. Public Hearings Set Set public hearings on the following: a. An appeal of the Building Standards Commission's order of repair on the historic landmark structures located at 1801 Nelms Drive: September 17, 1987 at 3:00P.M. b. Amending Chapter 13-13 of the Austin City Code (Sign Ordinance): September 17, 1987 at 4:00 Ρ.Μ. c. Establishing the fee to be paid for sign operating permits authorized under Section 515 of Chapter 13-13 of the Code of the City of Austin, 1981: September 17, 1987 at 4:30 p.m. INTERLOCAL AGREEMENTS The Council, on Councilmember Carl-Mitchell's motion, Councilmember Nofziger's second, adopted a resolution approving of Interlocal Agreements with the cities of Georgetown, Round Rock, and Pflugerville, Williamson County and Travis County, and the Capital Metropolitan Transportation Authority for the purchase of abandoned Missour-Kansas-Texas Railroad property between Austin and Georgetown. (4-0 Vote, Councilmembers Urdy, Humphrey and Mayor Pro Tem Trevino out of the room) WAIVER TO COMPREHENSIVE WATERSHEDS ORDINANCE The Council, on Councilmember Carl-Mitchell's motion, Councilmember Humphrey's second, waived the requirement for three readings and finally passed an ordinance granting Comprehensive Watersheds Ordinance waiver extensions to Legend Oaks. (5-2 Vote, Mayor Cooksey and Councilmember Nofziger voted No.) Withdrawn was a waiver for the Jenkins Tract. PROFESSIONAL SERVICES CONTRACT The Council, on Councilmember Shipman's motion, Mayor Pro Tem Trevino's second, adopted a resolution extending the Professional Services Contract for land acquisition services for CIP projects on a temporary basis with the three following acquisition firms: (7-0 Vote) a. Trans-Texas Land Services b. Texas Field Services c. S.A. Garza Engineers, Inc. Council Memo CAPITAL IMPROVEMENTS PROGRAM 13 9/3/87 adopted a resolution The Council, on Councilmember Carl-Mitchell's motion, Councilmember Urdy's second, waived the requirement for three readings and finally passed an ordinance approving the following change order: a. In the amount of $1,160,540.00 to S.A. Healy Company for the Govalle Wastewater Services Area Interception and Diversion System. (4.69% increase of the original contract amount of $24,755,000.00) C.I.P. No. 86/23-10 (5-1 Vote, Councilmember Humphrey voted No, Mayor Pro Tem Trevino out of the room.) CONTRACT AMENDMENTS The Council, on Councilmember Carl-Mitchell's motion, Mayor Pro Tem Trevino's second, adopted a resolution to approve the following contract amendments: a. b. Increase the contract with Shared Medical Systems (SMS) by $93,000.00 plus expenses. Increase the contract with Arthur Anderson & Company by $171,000.00 plus expenses for a total estimated contract award of $1,073,000.00 plus expenses to SMS and a total estimated contract award of $1,232,000.00 plus expenses to Arthur Anderson & Company. c. Provide a contingency of $70,000.00 to cover any additional expenses not presently anticipated ($45,000.00 for Arthur Anderson & Company and $25,000.00 for SMS) ITEM POSTPONED Postponed until September 17, 1987 is consideration of authorizing the execution of contracts for implementation of the 13th Year Community Development Block Grant (CDBG) Program. PUBLIC HEARING - APPEAL Mayor Cooksey opened the public hearing set for 3:30 p.m. on an appeal from Mr. G. Wayne Dykes of Page Southerland Page on the denial of the Site Development Permit Application No. 87-07-4969 for the Page Southerland Page Employee Parking Lot and Retaining Wall Reconstruction, PSP #187340. Speaker cards are on file in the City Clerks office for those who spoke. 1 i Council Memo 14 9/3/87 Motion The Council, on Councilmember Shipman's motion, Councilmember Humphrey's second, closed the public hearing, and upheld the appeal. (6-0 Vote, Mayor Pro Tem Trevino out of the room) PUBLIC HEARING - VACATION OF STREETS Mayor Cooksey opened the public hearing set for 3:45 p.m. on vacating a portion of 9th Street and Congress Avenue right-of-way and 9th and Colorado Streets right-of-way. (Request submitted by Sue P. Edwards on behalf of First RepublicBank Austin) Speakers cards are on file in City Clerk's office. Motion The Council, on Councilmember Shipman's motion, Councilmember Urdy's second, closed the public hearing, waived the requirement for three readings and finally passed an ordinance vacating a portion of 9th Street and Congress Avenue right-of-way and 9th and Colorado Streets right-of-way. (6-0 Vote, Mayor Pro Tem Trevino out of the room.) PUBLIC HEARING POSTPONED - STREET VACATION Postponed until October 1, 1987 at 4:30 p.m. is a public hearing to consider vacating the following; and passage of ordinance. a. A portion of East Seventh Street right-of-way, 2700 Block. (Request submitted by Mario Rocha) PUBLIC HEARING - TIPS WAREHOUSE Mayor Cooksey opened the public hearing on Tips Warehouse. Speaker cards are on file in City Clerk's office. A public hearing on C.O.P.'s will be held October 15, 1987 at 6 p.m., on Councilmember Carl-Mitchell's motion, and seconded by Councilmember Humphrey, 7-0 Vote. The Tips Warehouse will be discussed once more on September 24, 1987. EXECUTIVE SESSION 1 Mayor Cooksey announced Council would enter into executive session pursuant to Article 6252-17, Texas Revised Civil Statutes Annotated, to discuss matters of land acquisition, litigation, and for personnel matters. No final action, decision or vote by the City Council will be taken on any subject or matter unless specifically listed on the agenda for this meeting. - 1. Pending Litigation Section 2, Paragraph e d. (on the agenda) 2. Land Acquisition - a. Aviation Issues Water Treatment Plant #4 Section 2, Paragraph f Council Memo RECESS 15 9/3/87 Council recessed for executive session at 6:31 p.m. and resumed their recessed meeting at 7:35 p.m. EXECUTIVE SESSION Mayor Cooksey announced that Council would go into Executive Session pursuant to Article 6252-17, Texas Revised Civil Statutes Annotated, to discuss matters of land acquisition, litigation, and for personnel matters. No final action, decision or vote by the City Council will be taken on any subject or matter unless specifically listed on the agenda for this meeting. RECESS 1. Pending Litigation - Section 2, Paragraph e a. City of Austin v. Houston Lighting and Power Council recessed its meeting for executive session at 7:36 p.m. and resumed its recessed meeting at 7:50 p.m. RECESS FOR SPECIAL CALLED MEETING The Council recessed its meeting at 7:52 p.m. for a Special Called Meeting and resumed its recessed regular meeting at 8:29 p.m. PUBLIC HEARING ON PROPERTY TAX SET The Council, on Councilmember Carl-Mitchell's motion, Mayor Pro Tem Trevino's second, adopted a resolution to set a public hearing on Monday, September 21, 1987 at 6:00p.m. to consider taking a record vote on a proposal to increase the property tax rate by 8% over the effective rate calculated pursuant to the State Property Tax Code. Vote on the property tax will be taken on September 24, 1987. 1987-88 FINANCIAL PLAN Council had before them for consideration the third reading of the 1987-88 Financial Plan. Motion Councilmember Carl-Mitchell made a motion, seconded by Councilmember Shipman to adopt the Capital Outlay Reduction List and add $145,524 to the cuts list. Motion passed by a vote of 7-0. (The list is on file in the City Clerk's office.) Council Memo (Budget Cuts) 16 Motion - FAILED 9/3/87 Councilmember Humphrey made a motion, seconded by Councilmember Nofziger to make cuts totaling $5,638,000, including reducing PARD maintenance mowing to $100,000; eliminate part of the computer mapping program from $500K to $300K; reduce City employee pension contributions by.8% saving $750K; eliminate some preventive dental services for $100K; AustinPlan fiscal analysis by $50K; reduce roadway overlay program by $100K; General Fund department cuts excluding EDIT, Health, APD, Library and Municipal Court by 1%; additional capital cuts of $100K; eliminate an additional 75 vacant positions for $1,875,000 decrease; and a 2% salary reduction for Councilmembers, and those over $40,000 for $313K. Motion FAILED by a vote of 2-5 with Councilmembers Urdy, Shipman and Carl-Mitchell, Mayor Pro Tem Trevino and Mayor Cooksey voting NO. (Employee Pension Reduction) Motion Mayor Cooksey made a motion, seconded by Councilmember Humphrey to reduce City of Austin contributions to employee pension plan by 8/10s of one percent. Motion passed by a vote of 7-0. (Vehicle Replacement) Motion - FAILED Councilmember Cooksey made a motion, seconded by Councilmember Humphrey to reduce funding of vehicle replacement in General Services by $750,000. Motion FAILED by a vote of 3-4 with Councilmember CarlMitchell, Shipman and Urdy and Mayor Pro Tem Trevino voting NO) (Vehicle Fund) Motion The Council on Mayor Cooksey's motion, Councilmember Nofziger's second, reduced the General Services vehicle fund by $400,000, but no reduction in emergency vehicle funding. (7-0 Vote) (Arts Funding) Motion The Council, on Councilmember Shipman's motion, Councilmember Nofziger's second, adopted the Arts Commission recommendation for funding with several minor adjustments, these are adjustments to several groups to correct some minor inequities to underfunded groups; and further that all arts groups be funded at 95% of the Arts Commission recommendation and stipulate that if the City of Austin revenues approach the projected $868,000 designated for the arts that the arts groups receive the full 100% of the Arts Commission funding recommendation; funding is as follows: (7-0 Vote) (SEE FOLLOWING TWO PAGES) Council Memo 17 9/3/87 Austin Circle of Theatres $ 19,950 La Pena 19,155 Austin Writers League 11,875 Austin Visual Arts Association 14,250 Dance Umbrella 13,818 Austin Lawyers & Accountants for the Arts 6,650 Music Umbrella 10,000 Austin on Tap 5,266 Roy Lozano's Ballet Folklorico 15,532 DU- Prechter/Bustamante 631 DU- Gregg/Alpert 926 DU - Heloise Gold 696 DU Sally Jacque 322 DU- Ricardo Garcia 1,580 DU - Kay Braden 1,226 Texas National Dance Company 5,838 Sharir Dance Company 11,600 DU Prechter/Lobdel 641 Austin Contemporary Dance Company 1,313 Texas Youth Ballet 677 Deborah Hay 9,800 Ballet East 10,000 Texas Folklife Resources 10,784 People's History In Texas 1,340 TC Susan Bright 1,993 AWL Texas Fine Literature Association 1,580 Texas Circuit 8,159 AWL - Hedwig Gorski-Garner - 700 Austin Symphony 50,691 Laguna Gloria 132,369 Zachary Scott Theatre 33,642- Paramount Theatre 42.085 Ballet Austin 40,477. Capitol City Playhouse 16,077 ACTV - Deby Childress 809 Austin Film Society 1,548 ACTV - Abe Cortez 1,550 BAA - Hartzog and Congo 940 WIW - Liatris Media 1,630 ACTV - Steve Lidenbaum 2261 ACTV Robert Rodd 2,055 Austin Arts Umbrella 3,819 Women and Their Work 27,685 Austin Children's Museum 12,411 Mexic-Arte 24,855 WTW-DU- BAA 2,387 Council Memo 18 9/3/87 Black Arts Alliance DU- ACOT BAA- La Pena - AVAA 29,735 2,864 575 Academia De Danza 10,488 LUCHA 5,000 Austin Chamber Music Center 1,601 Austin Federation of Musicians 16,659 MU - Pinnacle Brass Quintet 261 TFR- Santa Cecelia Mariachi 4,905 MU - Creative Opportunity Orchestra 4,385 Austin Civic Orchestra Society 2,942 Austin Lyric Opera 8,408 Austin Symphonic Band 1,242 Austin Civic Chorus 959 MU - Chamber Soloists of Austin 1,331 Texas Music Museum 2,375 Austin Choral Union 5,024 MU - Austin Boys Choir 1,260 BAA Scintilla Productions 4,905 ACOT - Austin Shakespeare Festival 3,354 Shakespeare Encounter 3,367 Live Oak Productions 6,424 Big State Productions 5,826 Different Stages 5,042 ACOT - Word of Mouth Women's Theatre 4,466 ACOT Mario Lorenz 3,027 ACOT - Oliver & Helen Handley 1,011 FNDIN for Remembrance of Holocaust 356 ACOT Soma Theatre 712 ACOT Friends of the Summer Musical 311 AVAA Fidencio Duran 2,008 AVAA - Laurel Butler 3,714 AVAA - Arts Warehouse 1,027 AVAA - Seibert, Adie, Bresette, Manghan 6,401 Texas Photographic Society 4,927 Laurie Gant 3,489 Friends of Elisabet Ney Museum 950 AVAA - AMOR 2,055 AVAA - Artistas Indigenas 2,055 AVAA - Shirley. Lewis TOTAL----------- 1,104 $749,034 Council Memo PARAMOUNT THEATER 19 1987-88 9/3/87 APPROVED FACILITY USES DAYS 8/10/87 Austin Symphony Orchestra (Kinderconcerts) 1 1,000 Ballet Austin 3 3,000 Mexic-Arte 2 2,000 Texas National Dance 1 1,000 Santa Cecelia Mariachi 1 1,000 • Creative Opportunity Orchestra 1 1,000 Roy Lozano's Ballet Folklorico 2 2,000 Austin On Tap 1 1,000 Dance Umbrella/ACOT 1 1,000 Sharir Dance Company 1 1,000 14 14,000 CAPITOL CITY PLAYHOUSE Texas National Dance (children's program) 2 900 Sharir dance Company 4 1,800 Academia de Danza • Gregg/ Alpert Recital Dance Umbrella (workouts) 2 900 2 900 2 900 DU/ BAA WIW 1 450 1/2 Open Day 154 134 6,004 ARTS WAREHOUSE AVAA - as requested Women And Their Work 60 350 30 175 90 525 • Different Stages 3 1,350 Producers may make decision on location in lieu of Austin Fifth Street Theater closing LIVE OAK THEATER Deborah Hay Dance Company 3 1,287 TOTAL 123.5 23,166 ! C Council Memo (Austin Choral Union) 20 Motion - WITHDRAWN 9/3/87 Mayor Cooksey made a motion, seconded by Councilmember CarlMitchell to indrease Austin Choral Union funding by $5,000 and take that money from the contingency fund. The motion was WITHDRAWN. (Golf Surcharge) Motion The Council, on Councilmember Shipman's motion, added a $1.00 surcharge to all rounds of golf with the proceeds directed toward the lease with the University of Texas for buying the Municipal Golf Course. (7-0 Vote) (Rosewood Pharmacy) Motion Councilmember Shipman made a motion, seconded by Councilmember Urdy requesting the proposal in the Health Department's budget for the City to be in the pharmaceutical business at the Rosewood Center be deferred for thirty days to allow the Health Department to meet with the Pharmaceutical Association and allow them to present some alternative proposals for Council consideration, which would put us at the first of October which is before we could set up a pharmacy, and request the Health Department report back to Council the specific need for the pharmacy, break out the cost for the pharmacy, space allocation planned and what the dollar amount will be to actually establish a full-fledged pharmacy at Rosewood and I would like to ask that the next 30 days be spent in discussion with the pharmaceutical association. (5-2 Vote, Mayor Cooksey and Councilmember Carl-Mitchell voted No.) (Permitting Stations) Motion - WITHDRAWN Councilmember Shipman made a motion, seconded by Councilmember Humphrey to close two leased permitting sub-stations and consolidate them in the Annex. The motion as withdrawn. (Consultant Contracts) Motion - WITHDRAWN Councilmember Shipman made a motion, seconded by Councilmember Nofziger to reduce the $1.1-million in consultant contracts allocated in the General Fund by $650,000 so that amount of money can be added to the proposed tax cut. Motion withdrawn for further information. (Elec. Utility Budget re STNP) Motion The Council, on Councilmember Nofziger's motion, Councilmember Shipman's second, deleted $25.5-million from the Electric Utility budget for decommissioning South Texas Nuclear Project. (7-0 Vote) RECESS Council recessed its meeting from 9:55 p.m. to 10:37 p.m. Council Memo (Social Service Funding) 21 Motion 9/3/87 The Council, on Mayor Pro Tem Trevino's motion, Councilmember Carl-Mitchell's second, approved the following Social Service funding: (7-0 Vote) Social Services Funding Fiscal Year 1987-88 FY 87 FY 88 REQUEST $ 105,000 FY 88 FUNDED $ 85,790 AGENCIES ALLOCATION American Institute for Learning $ 85,790 Association for Retarded Citizens-Austin 23,212 29,367 23,212 Austin Area Urban League 42,511 46,090 42,511 Austin Child Guidance and Evaluation Center 145,128 159,636 145,128 Austin Community Nursery 100,000 105,000 105,000 Austin Families 19,200 23,040 18,900 Austin Family House 41,000 70,000 41,000 Austin Rape Crisis Center 69,217 70,707 69,217 Austin Rehabilitation Center 95,000 115,000 95,000 Austin Resource Center for Independent Living (ARCIL) 30,394 32,201 30,394 Austin Tenants' Council 57,874 57,874 57,874 Caritas Center for Battered Women Austin/Travis County MHMR Austin/Travis County Refugee Services (Sponsor Coord.) Austin/Travis County Shelter for Infants and Children stin Wilderness Counseling hastin Women's Center Big Brothers/Big Sisters Blackland Community Development Corporation Capital Area Easter Seal Rehabilitation Center Capital Area Food Bank Center for Development of Non-Formal Education Central East Austin Community Organization 1,200,000 1,325,000 1,200,000 48,169 48,169 35,000 33,000 33,000 33,000 17,745 18,630 17,745 52,496 56,394 52,496 84,526 91,752 84,526 10,800 14,400 10,800 246,000 270,600 246,000 58,500 61,500 61,500 98,950 108,845 108,845 70,564 97,620 90,000 61,697 84,300 61,697 36,050 47,959 36,050 Child and Family Services Child Assault Prevention Project 51,123 53,679 51,123 25,000 32,616 25,000 Child, Incorporated Community Advocates for Teens and Parents Community Bound Development Assistance for Rehabilitation Extend-A-Care Gents Club Greater Austin Council on Alcoholism 362,200 362,200 362,200 30,000 107,125 42,000 21,322 25,000 -0- 73,152 76,809 73,152 39,320 41,286 39,320 43,216 -0- -0- 33,600 40,000 33,600 Holy Cross Hospital 10,000 17,549 10,000 Legal Aid 188,934 198,381 188,934 Middle Earth 51,000 63,520 61,000 Open Door (Project Normalization) 33,471 41,795 36,844 Parents Anonymous 20,627 24,000 -0- Pebble Project 15,000 15,000 15,000 People's Community Clinic 150,000 175,508 150,000 Canned Parenthood 35,000 40,000 35,000 Salvation Army 12,256 97,756 90,000 Seniors' Sitter Service 15,000 16,000 15,000 Services for the Elderly 71,044 86,656 71,044 Council Memo 22 9/3/87 South Austin Neighborhood Youth Bureau South Austin Youth Services Teenage Parent Council Travis County Adult Literacy Council United Action for the Elderly United Cerebral Palsy University Y: a. Austin Community Gardens b. Women's Counseling and Resource Center c. AWARE Vaughn House Volunteer Center Youth Advocacy Youth Employment Service New Agency Applicants Austin Community YWCA Communities In Schools-Austin, Inc. Community Welfare Association Comprehensive Adolescent Treatment Services, Inc. Ebenezer Child Development Center 32,946 42,010 36,000 40,000 64,483 40,000 18,000 23,810 18,000 18,500 35,750 18,500 116,334 125,640 122,150 40,706 44,775 40,706 43,265 60,848 43,265 31,092 45,446 31,092 25,103 26,358 25,103 85,444 89,760 85,444 27,883 33,272 27,883 29,308 29,308 29,308 124,892 126,221 124,892 -0- 22,150 Family Eldercare, Inc. Family Recess, Inc. vis County Council for the Deaf Opportunities Enrichment Contingency; EHVP, Project HELP 162,000 Homeless Allocation (Includes FY 87 Rollover $65,400) 166,000 Teen Pregnancy Prevention RFP -0- -0- -0- -0- -0- -0- -0- -0- 67,505 14,400 -0- -0- -0- 39,314 -0- 25,000 5,218 -0- -0- 14,000 -0- 31,306 -0- 64,229 43,216 (Contingency) 34,500 250,000 (Needs 15,000 Assessment) $5,617,767 $5,035,961 $4,970,561 Friendly Amendment to Social Service Funding -FAILED Mayor Cooksey made a motion to amend the Social Service funding by adding $21,322 for Community Bound. Councilmember Nofziger seconded the motion which FAILED by a vote of 2-3-0, Mayor Pro Tem Trevino, Councilmembers Carl-Mitchell and Shipman voted No, Councilmembers Urdy and Humphrey abstained. - (Cablevision) Motion ---- The Council, on Councilmember Shipman's motion, Councilmember Nofziger's second, adopted a resolution as follows: Should present settlement dispute negotiations with Austin Cablevision be resolved in such a manner that the City is re-imbursed any or all its legal fees which were allocated from 1987 General Fund, thes funds, up to $200,000 will be distributed toward MHMR and other social service funding and the balance of the funds shall be allocated to the Arts. (7-0 Vote) : Council Memo (Compensation Study) 23 Motion - FAILED 9/3/87 Mayor Cooksey made a motion, seconded by Councilmember Humphrey for exempt positions only implement the Compensation Study and make reduction to maximum hourly rate of the new structure for employees earning above the rate and above $30,000 for a savings of $1,482,445. (3-4 Vote, Mayor Pro Tem Trevino, Councilmembers Carl-Mitchell, Shipman and Urdy voted No) (Deputy Dir. Resource Mgmt) Motion The Council, on Councilmember Nofziger's motion, Councilmember Humphrey's second, deleted the deputy director position for Resource Management. (5-2 Vote, Mayor Pro Tem Trevino and Mayor Cooksey voted No.) (AustinPlan) Motion - DIED FOR LACK OF SECOND Councilmember Humphrey made a motion to reduce the AustinPlan Economic and Fiscal Analysis by $50,000. Motion DIED for lack of second. (Roadway Changes) Motion The Council, on Councilmember Carl-Mitchell's motion, seconded by Mayor Pro Tem Trevino, approved certain amendments to roadway section of C.I.P. (7-0 Vote) as follows: Jim Smith, Director of Transportation and Public Services Department, stated: "The proposal you have in your Capital Improvements Book has to be amended to accommodate some of the directions you have already given us. A memo has been sent to you detailing what is in your book and what we are recommending you change. We have approximately $69,000,000 to spend on street & drainage improvement projects. That called for us to make recommendations on deferral of approximately $45,000,000 worth of projects. In your book is a list of deferrals and we provided you a memo on that." He referred to the first attachment which are recommended projects and the second attachment which shows that after the committed projects there was approximately another $24,000,000 available to cover the rest of the projects. "On Attachment 2 the projects were prioritized 1-14 which we were able to fund. The rest of them had to be deferred. If you turn to Attachment 3 we are proposing we amend what is in your current CIP budget book to accommodate several changes that you have directed us to make. One of them is Grove Boulevard. We have met with ACC and have worked out an arrangement whereby cash flowing $600,000 next year we will be able to initiate the Grove Boulevard project. We also had to change in around to accommodate your direction on Parmer Lane. To acquire the right-of-way on Parmer Lane we had to cash flow some money for next year. For the Parmer Lane line we have budgeted $3.1-million. That is the low end. It could go higher depending on what some of the settlements are. The maximum it can go to is about $6,000,000. Depending on the ultimate cost of Parmer Lane, Brodie may have to be knocked off the list which is the object we have as the lowest priority on that list. The other thing amended and added into your list is $160,000 for Tony Berger because that is going to give us access into the St. Elmo Service Yard which will be completed shortly 1 ! i 24 Council Memo 9/3/87 To comply with the site plan requirements we have to provide that access. Otherwise, what is contained in your C.I.P. book is what is recommended, with those three exceptions." (Adoption of C.I.P.) Motion The Council, on Councilmember Carl-Mitchell's motion, Councilmember Shipman's second, adopted the Capital Improvement Project budget as amended by Council. (7-0 Vote) (Adoption of Budget) Motion The Council, on Mayor Pro Tem Trevino's motion, Councilmember Carl-Mitchell's second adopted the Operating Budget for FY 1987-88 as presented by the City Manager, incorporating all amendments adopted by the City Council on the First, Second and Third Readings of the Ordinance. (6-1 Vote, Councilmember Humphrey voted No.) (Historic Property Tax) Motion The Council, on Mayor Pro Tem Trevino's motion, Councilmember Shipman's second approved the Historic Property Tax Exemptions as presented in the budget. (7-0 Vote) (Historic Property Tax) Motion The Council, on Mayor Pro Tem Trevino's motion, Councilmember Humphrey's second, approved fees, rates and charges as amended. (7-0 Vote) (Sales Tax Gas & Elec. Rates) Motion The Council, on Mayor Pro Tem Trevino's motion, Councilmember Carl-Mitchell's second, approved reimposing the sales tax on gas and electricity for residential use. (6-1 Vote, Councilmember Humphrey voted No.) PUBLIC HEARING ON TAX RATE SET The Council, on Councilmember Carl-Mitchell's motion, Mayor Pro Tem Trevino's second, adopted a resolution to set a public hearing to consider taking a record vote on a proposal to increase the property tax rate by 8% over the effective rate calculated pursuant to the State Property Tax Code for: September 21, 1987 at 6:00P.M.(7-0 Vote) Council will vote on the tax rate on September 24, 1987. ADJOURNMENT - Council adjourned its meeting at 12 Midnight.