City Council Work Session Transcript – 2/13/2024 Title: ATXN-1 (24hr) Channel: 1 - ATXN-1 Recorded On: 2/13/2024 6:00:00 AM Original Air Date: 2/13/2024 Transcript Generated by SnapStream ================================== Please note that the following transcript is for reference purposes and does not constitute the official record of actions taken during the meeting. For the official record of actions of the meeting, please refer to the Approved Minutes. [8:59:31 AM] We are a-t-x-n the City of Austin's Government Access Channel good morning everybody. I'll call to order the meeting of the Austin city council for a work session of the city council. It's February 13th, 2024. It's 9:00 in the morning. We are [9:00:31 AM] 9:00 in the morning. We are meeting at city council chambers, which are located in Austin city hall at 301 west second street in Austin. Ann. We have a quorum of the Austin city council. Present members. WHA I'm going to do, unless there's some objection, is we will start with items that are items, council items of interest, which are items that have been pulled for discussion this morning. The order I would go in is item 25 of item 43. And then item 14 and once we've completed those, then we will go to briefings. Those are labeled on the agenda as items b1, which is an update on shelters and permanent supportive housing. And item b2, which is the Austin convention center. Potential development opportunity. With that, we will go to item number 25. That item was pulled by mayor pro tem pool . And so I'll recognize mayor pro tem pool. >> Thanks, mayor so much. And I [9:01:32 AM] >> Thanks, mayor so much. And I pulled this to talk about my amendment and to bring up some direction that I wanted to offer regarding bond advisory task force process. And I see that our, our cfo, Mr. Vannino, is here with us today. Thanks. I noticed that council member Ryan alter has incorporated the changes that I wanted to make with regard to expanding bonds beyond general obligation to include revenue bonds and including grants that has been incorporated into the new version. Thanks very much. Along with other amendments from the dais, I thank you for that. And as for the bond advisory task force, city manager, I'd like to ask you to bring us more information on that process. As I mentioned in my message board post, the process is specific to geo bonds, and I'd like to, to, talk about the bond advisory task force issue two. And so [9:02:34 AM] task force issue two. And so I've talked with Ed and he's ready to confirm that he and director snow are working on a memo. Could you kind of lay that out for us, please? >> Sure. >> Yeah. James snow, our capital delivery office director, and I have already had conversations about providing information to council about what a typical bond program development cycle would look like. The task force community input, etc. So that's already in the works and something we were planning on presenting to council that, you know, may help us think through the, the resolution before us. I mean, that won't be coming before Thursday, but we've been we'll be working on that. >> That's great. And I think it's really important for us to remain talk about and focus on the bond advisory task force, because that allows us to have the input of the citizens in a really important Burt, effort, which is crafting bond proposals. So city manager and mayor, I don't think I need to bring any direction because it [9:03:34 AM] bring any direction because it sounds like, the staff at the city manager's direction is already on top of that. Right >> Thank you. And let me. But I might want to follow up and make sure I understand what's going to be in the memo. So, first of all, just my experience of what we do on bond elections. Usually we have, you know 16 to 18 month process. That's at least a year process on something. I'm not sure exactly what the author contemplates with regard to this item. Being on a ballot sooner than that. But I would I would appreciate in whatever the memo does is that it also include information related to that, because if we're going to bring something in a in a very rapid fashion that is out of sync with the way we've done it in the past, I think the council and the public ought to be aware of that. And then and, and then my, my other question is, related to when either the memo will also [9:04:36 AM] when either the memo will also talk in terms of the ability of the city to manage bond capacity , because it was just recently in fact, since the interim city manager came on, that there was a recognition that we had so many bond elections in such a rapid fashion that we weren't able to get the cip projects done in a way that was organized well. And so this, Mr. Snow's office was part of that. Will this memo that you're talking about will it also, speak to the ability to manage any new bonds and how how we would appropriately as a council, go about measuring our capacity to do that? >> Yeah, we can absolutely include that. We've made several presentations to the audit finance committee, both myself on the on the finance side, the bond capacity side and director snow's also made presentations to, the audit finance committee [9:05:38 AM] to, the audit finance committee about the amount of bonds we have and the plan for getting those spent down. So we have that information. Happy to include it in the memo. >> Do you ever, as part of that, take into account things such as, the capacity for the work to be done out in the community in other words, the, the, the workforce that we will need in order to meet, what we've told the public we're going to do for basically a decade now where we're now up to, several billion dollars in, in need that they've approved. Do you look at that as well? >> We haven't traditionally, but we absolutely have been talking about it recently with all the work going on at the airport with the authorized but unissued bonds, cap and stitch, the project connect. We have a lot of capital work happening in the city right now, so we absolutely are concerned about the capacity of the of the construction workforce to deliver that. And so we have been having discussions about that. And I think we will need to consider [9:06:38 AM] think we will need to consider it going ahead just in the historically, it's not been an issue. I think it is an issue now. >> And mayor, what I would add also that, and not to be critical of the past, but I've asked the staff to be to develop the ask the professional staff to do the critical work that needs to get done. So we understand what programs are going to cost, what type of bonded indebtedness we need to take on the capacity of us to be able to pay off that debt, and as well as what you just asked, which is to ensure that we've got the capacity and the community to be LE to get that work done. Right now, we have about maybe wrong with this number, but it's about $1.7 billion of unissued debt, and that's because we just don't have the physical capacity as an organization to take on that debt and get it done in a in a way that meets the community interest as well as the needs of the public. And those are all things that will include in this communication for the council to debate and discuss. >> Great. >> Just two more quick things that one would be, that I would I think everybody would be interested in, but I'm certainly interested in is what happens in terms of how we prioritize [9:07:40 AM] terms of how we prioritize things in Mr. Snow's office and department. When we when the public's been told you're going to get something over a long period of time, and then in a very rapid fashion, we drop another, bond election on that, how would we go about prioritizing, particularly with the conversation we're having right now? You know, for example, the affordable housing, has been a priority of the council. We've this council has done great work. I think in the last, 13, 18 months on on moving things in that direction. But how does the prioritization occur? And I'm asking you to answer now, but that would something that I'd also be interested in. And then the last thing I'll say is, is we ain't the only game in town. Occ has had a bond election. We've got, you know, aid had a bond election, those kinds of things. How that would play in the overall ball approach that we might have. I would ask that that be part of that, that [9:08:40 AM] that be part of that, that direction and memo as well. Manager councilmember Ryan alter , thank you very much. >> I appreciate the conversation. One also request as we go through this memo that is going to be coming out, if you could include our financial policies as it relates to our, debt to assessed property tax ratio. So my understanding is that the state cap of that is a 10% cap. We have set a financial policy of 2, but that we currently find ourselves under 1. So we are well, within our own financial policy. And so I think it'd be helpful for us to include that information as well. I also kind of want to look back, and I don't know if this is necessarily a question for you, or not, but as we look at the bond advisory task force question, you know, looking back [9:09:41 AM] question, you know, looking back in 2016 when we had our mill mobility bond, we didn't have that task force because we had the plans in place. And we went forward with the bond package in 2020 when we had, a separate mobility bond. Same story. No bond task force. We moved forward there. And in 2022, with the affordable housing bond. So what what we're talking about today, I don't believe is, is, something that we haven't done many times, a bond advisory task force. I think is incredibly valuable for the what we're looking to do in 2026 as it relates to a comprehensive package. But I think we have seen when we do individual, bonds that we have done, have not used that process that, that correct. From your recollection. >> That's correct. In 2012, we did a bond election advisory task force. Also in 2018, those are multi proposition bonds with mobility projects, parks projects, library projects, public safety projects. And so [9:10:41 AM] public safety projects. And so there is you know, that tug of war about you know we only have so much bonding capacity. How mucho we want to spend in those additional buckets. That dynamic kind of goes away when it's an affordable housing bond. And Wright there's not a whole lot of that that tug of war and making decisions about which which things do we want to prioritize. And that really was the focus of the memo was, you know, staffs discussion about looking forward to a 2026 bond cycle that's timing wise. And we'll get this in the memo. But that's what director snow is saying when he starts to see when some of these buckets are going to run out of money. 2026 bond program would work nicely in that from that perspective. And I know he's envisioning a longer and very in-depth process to get us there. >> Yes. And as we look at the question of issuing bonds and prioritization, there is no reason why a bond package passed in 2022, for instance, can't, if we're ready to spend some of those or we're ready to do some of the projects within that [9:11:43 AM] of the projects within that bond, we don't have to wait for all the 2020 bonds to be issued to then do 2022. We can issue them concurrently. Is that correct? >> We can issue them concurrently as they're ready. >> So I think that's kind of the same story here. If we are talking in the future and today, we're not, dedicating ourselves or Shea on Thursday to any, bond in 24. We're asking the question of what might be appropriate for such a mechanism. But these are going to be projects that are in all likelihood different from our mobility bonds, from our affordable housing bonds. And so they can run concurrently. There's no reason why we have to say, well, we can only do affordable housing bonds. We can only do mobility bonds. We can we can be, a full purpose city. So I think that is helpful in looking at I don't know if that faorors into to the information you're going to be providing, but just, want to make that note. And I think, oh, I think there's one last and this is [9:12:46 AM] there's one last and this is sorry, not a question for you, but just as we talk about, process, you know, the advisory task force process is a very valuable tool to solicit public information. That's why. And as we talk more about the substance of item 25, you know, going to the joint sustainability committee where the public has the opportunity to weigh in and have that public process. And I would just note that this is a lengthier time process and a more, inclusive public process than we saw. Let's say, for the affordable affordable housing bond in 2022. So I'm really excited about that kicking that process off today. And on Thursday. And I'm happy to have a further discussion. >> Thank you. Council member. Council member Fuentes then mayor pro tem, thank you. >> Thank you, councilmember alter, for bringing this forward. I think it's really important that we as council, as a policy making body, have this information available so that we can be making these decisions in the best interests of the future off our city. We know that we've had two severe weather events in the last three years, and [9:13:48 AM] the last three years, and knowing that this bond proposition is instrumental in us being able to have a more resilient community, especially as it comes to our water, our energy and our air quality. You know, we are just a few days ago, we were having a conversation at campo regarding us veerilose to being in nonattainment in our air quality . So having this information, us being able to make a plans and put into motion policies that get our city in a better footing as we deal with these large scale infrastructure construction projects that will be happening over the next state over the next decade. In Austin is important. So I really appreciate your leadership. Councilmember alter. And I think back to the council of 2020, when they put forward that mobility bond, and there was a lot of naysayers on the process and how that went through. And, you know, that bond helps communities like mine on the east side who finally got much needed funding to bring improvements to Ross road and Peirce lane. So I appreciate, you know, that we're having this [9:14:49 AM] you know, that we're having this conversation and that we are going to get access to this information and that we're able to provide guidance to our city administrators about how we would like to move forward with either a 2024 bond election or perhaps a future one. >> Thank you. Council mayor pro tem, mayor, I guess I would just close to also offer the importance in the conversation of including our governmental partners, and allowing them the opportunity and the time necessary to think through what their plans are for our future infrastructure projects in ways that can can, augment and enhance the work that the city of Austin is doing. >> We talk a lot about how how we don't want to be. We're not the only game in town. And, mayor, I think you mentioned that, the other entities are also doing important work and need to be part of the conversation as well, so that [9:15:49 AM] conversation as well, so that the financial burden doesn't fall solely on the shoulders, tirz and on the wallets of the city taxpayers. Right. So the task force is really important to bring all of those voices to the table and give us time to, piece through them and thread through them and find the right balances, which I know we will. I know we'll get there. >> Thank you. Mayor pro tem, any other on item 25? Great. Thank you. Good discussion. Oh I'm sorry, councilmember Allison alter, I apologize. >> No problem. Good morning everyone. Can you hear me? Okay. Yes. >> Very well, thank you. >> Well, first of all, I just want to say I think it's really, really important that we make climate and resilience related investment. And I have long, supported these approaches as I'm understanding my colleague Ryan alter, who brought this forward, this is initiating a conversation. So that we can accelerate the investments that [9:16:50 AM] accelerate the investments that are very much needed. A bond is one mechanism that is offered as a way forward. But there are many, many other investors that we need to be making and looking at. And changes that we can be doing that would, advance this if, if a bond does not prove to be the best way forward? I think that this is worth definitely worth exploring. We absolutely need to do more than have these plans on a shelf. And there is much more for us to be doing. I do also have a couple questions, on the resolution that that I would like to raise. Yes. First, I appreciate you adopting my amendments into your draft. Council member Ryan alter. I would ask that, we not add such as a combined inventory of plan recommendations into the middle of my be it resolve that had to [9:17:51 AM] of my be it resolve that had to do with the inner departmental coordination. This, be it resolved derives from prior attempts, both in the emergency climate emergency resolution, which I authored, and the climate equity plan resolution implementation resolution that I authored. We really, really need to have interdepartmental, leadership at the highest level, focused and sustained looking at climate issues. While I believe a combined inventory of the plan recommendations would be valuable, I don't think it is the same thing. I'm going to try and propose some other, wording to it. My best attempt at this point would be to remove that clause in my initial, be it resolved, and add a sentence at the end, something to the effect of these actions should reflect prior direction on leadership organization, and may also include a combined inventory of plan recommendations. But we will put something together and [9:18:52 AM] will put something together and post that to the message board. And, I also wanted to say that I appreciate, council member Ellis adding the long range plan for part into this. I had assumed that was included in the climate equity plan, but I appreciate it being called out. And then I did have a question. I'm not totally sure I'm fully understanding. Council member vela's amendment with respect to priority, using the capital improvements and programs that would maximize the potential inflation reduction act tax reduction act tax credits. It's the second part of that, be it for the resolve that I'm not totally sure th I I'm understanding where it says develop a mechanism for reinvest payment or reimbursement from such credits into similarly climate focused capital improvements and programs, where appropriate. Right. So could you please explain a little bit more the second half? Obviously we I understand what prioritizing things that can bring down that money. But the second half I was not fully certain what you were [9:19:52 AM] not fully certain what you were trying to get at, councilmember villa. >> Thank you. Mayor. The idea would be again, as an example, let's say we spend $100 million on, on a program that the Ira will reimburse us, $50 million. And my understanding is that instead of when state and local governments do this under the Ira, they get cash, they get direct cash transfers, not tax credits. So the idea would be, let's say we do $100 million project, we get $50 million from the federal government. Then the that $50 million again, where appropriate, should be redirected toward similar kind of goals. You know, that that basically like if we're trying to do something on renewable energy or if we're trying to do something on on, on, demand response or whatever the case may be, that, that that's kind of additional leverage to really make, to grow the program to and again, where appropriate, we threw that into just the idea being that, that we could either [9:20:53 AM] being that, that we could either take the reimbursement and hold it, or we could get an additional investment in whatever particular area we're looking at. >> Okay. So that that is money that would be coming in through the Ira, through the new processes that allow us to benefit instead of tax credits. Since we don't pay taxes. You're saying to create a mechanism. So we would decide whether that money should be reinvested in other climate initiatives or just be put? >> That's right. And again, the idea would be that, again, if we spend $100 million on, like I said, renewable energy, and we get $50 million, that could be $150 million investment as opposed to $100 million investment. But, again, where appropriate, thank you. >> Well, I am very interested in seeing, where this process, that my colleague, councilmember alter, where this process leads [9:21:53 AM] alter, where this process leads us. I think there are some enormous opportunities, for investment that we need to take advantage of. And I look forward to the conversation. Ann, I think that we absolutely need to be asking our new city manager to really be, zero in on on sustainability and resilience issues. And so I think this is a very interesting way to begin that process of emphasizing that , that, goal. Thank you. >> Thank you, councilmember. Councilmember Ellis, thank you. >> I appreciate all the conversation that's been going on this morning. And appreciate councilmember Ryan alter's leadership on this issue. As we were developing the 2020 mobility bond, which I sponsored, one of the main conversations was that we had these city plans that had ample stakeholder input throughout many, many years. And just knew that we weren't going to be able to hit the deadlines that were subscribed in those. And so we wanted to make sure in that we were very careful about [9:22:55 AM] were very careful about balancing those pre-approved plans with any new projects that may come down the line, project connect being one of them, and trying to understand the interplay between the tax referendum, election money for project connect and where things were very, very definitely in the city's purview and on city right of way. And so I look forward to the conversation. And I think there's a lot of great questions being addressed today. And I know that it will be a very robust discussion between us on the dais and our community stakeholders as we move throughout this process. And we've always got to balance the priorities of how to how do we make sure that the bonds voters have already approved are being delivered into the comties that have expected them? Some of them, including 51st street. I think has been in the works since 2012, or maybe even 2006. You know, something that just needs to happen for the community as well as understanding. We're still in mid-february and we don't know what the next couple of weeks is going to hold for our community. And we've we've got to continually balance looking behind us and doing better and looking ahead of us and trying [9:23:56 AM] looking ahead of us and trying to be prepared for the worst of it, which we know, you know, these winter storms just keep getting more creative. They keep throwing different, problems at us that we need to address as a community. But I think this conversation is robust. I think it's going to be really detailed as we move forward and everyone's trying to do the best to balance the priorities of the community. Great >> Thank you. All right council, we will go now to item number 43. And I have a I was the one that pulled that. So I guess I'll recognize myself. Although sometimes I look in the mirror and it's not recognizable. That being said, do you have somebody I can ask a few questions of this? >> I see Robert. Hi. >> Good morning, Robert king. I'm administrator of the downtown Austin community court. Great. >> Thank you very much. I appreciate you being here. I [9:24:56 AM] appreciate you being here. I want to ask some questions just where we flesh out because we've been talking about this and kind of generalities for a while, but I want to I want to make sure I understand. And before we vote to go forward on on some of it, how many beds are we actually talking about? Our our portion of this, paying for 25, 25. So our 2 million added to the others money. I as I understand it, what did we now consider to be the Ronald McDonald house? There would be other there would be our 2 million and another $2 million. And that would be for 25 beds. So 4 million for the 25 beds. >> So our our funding would go to the, standing up the therapeutic respite program at the 15th street,onald McDonald house for 25 beds. The other funders in this program, which includes Travis county and central health, central health's funding is primarily or solely [9:25:59 AM] funding is primarily or solely for the psychiatric emergency services through integral care expanding the operations there, which are okay. Correct. And Travis county's funding will be spread across both of those and so it's not the full $2 million from Travis county being allocated. >> So our 2 million plus some some. But you're not sure. And it's okay if you do. You know how much of that gets us 20? I'm trying to do the math on how we get to 25 beds. Yeah >> Yes. So what has been proposed from, Travis county, it looks like about. Excuse me . [9:27:03 AM] . It's about 1.2 million from Travis county. That's what we're looking at right now. Okay, so >> So 3.2 million for 25 beds. Yes sir. In the calculation of the interlocal agreement or the agreement with with all of the others, are we getting any credit for the value of the land? >> So the value of the land and the, was not factored into the overall cost to stand up the diversion pilot that was viewed as an asset that currently exists for services to be provided on site. >> But if we as a city wanted to utilize that land for any variety of things, that would it would have a value to the city. Is that correct? >> That that is true. Through our discussions with the office of real estate, that value is proposed anywhere between. 285,000 to $350,000 per year value at least. >> Okay, great. Thank you. Are [9:28:04 AM] >> Okay, great. Thank you. Are there going to be other entities other than the ones that I guess Austin and city of Austin and Travis county, that would be able to refer clients to the diversion center. And I'm thinking of hospitals. I'm thinking about our emergency medical services. Folks like, can they make referrals to this? The way it's contemplated, the way it's contemplated? >> Yes. There'll be a number of inputs into the system, primarily through city of Austin partners and Travis county. So referrals to this program would come from law enforcement, from emergency medical services, as well as as diversions from the jail, as well frentral booking to a individual to up to 25, up to 25. Okay >> Do you know what the mix of beds will be in? In other words, will they be, just city referrals or how that will get, how we'll utilize, I mean, how many referrals do does this get [9:29:05 AM] many referrals do does this get this group get? How many does that get to get to the 25. >> Sure. So that specific has not been delineated. There will be a a criteria for that will be established with all the partners. But that has not been. So there's not we're not going to say right now there are 15 beds for the city, ten beds for all other partners. It's really meeting the needs of the community. And those individuals who would qualify for the up to 90 days of the therapeutic respite program of intensive inpatient psychiatric care. >> And will the that leads me to the question of will there be, involuntary commitments as part of that? >> It could yes. That that could be an input into this. So there will be but we don't know right now. We don't know from, from the standpoint that when beds do become available, if there is someone who is in need of this type of service and there is an involuntary, commitment through [9:30:08 AM] involuntary, commitment through central booking, through the criminal justice process, then that would be a referral. But there's also voluntary sherry referrals as well. So prior to criminal justice involvement or prior to someone being charged with a crime, it would be similar to how the sobering center is currently being operated, where individuals will be offered voluntary access to participate in this program to address the need, their needs that led them to the, the situation that they are currently in. >> All right. So but that's I guess what I'm trying to figure out is we don't know any of those things. As we're getting ready to do that, though, we don't know how many beds will be wed for that. Let me ask it this way. What is the anticipated need for, let's say, involuntary commitments? >> Sure. So a lot of those, that information Ann came from the Travis county forensic mental [9:31:10 AM] Travis county forensic mental health report. This terkowski report. >> I know that report. >> And. So that that report on the diversion center is different than what this diversion center is, right. So that that report showed the overall community need or the overall need of. >> But the recommendation for a diversion center is different. The stokowski report that you're referring to that made a recommendation regarding diversion center that is different from what is being pushed, pushed forward right now, there were there are a number of recommendations in there in the Schakowsky report, one of which was to utilize existing resources to stand up a , a but a different type, type of diversion center, a diversion center. >> It was referenced in the report that there's not a one size fits all. And so looking at what resources exist in the community and so one of the resources that was identified primarily in the report was a [9:32:11 AM] primarily in the report was a facility that is co-located with the central booking complex. So there would be no wrong door approach. Okay >> I interrupted you, but what what was the report? Remind me what the report said in terms of the need. So >> So. >> I don't. >> So in the sample size, there were approximately 2231 potential individuals that were identified in that sample. >> So this addresses roughly a 10th, a 10th. >> This is. Yes >> Where do the clients where will they go when they're exited from this facility? >> That that will be one of the focuses for the funding that the city is contributing to this, to make sure that there is a successful exit strategy for [9:33:11 AM] successful exit strategy for that individual. And so some individuals may be reunited with family members, some may be housed Ed prior to into this program, some individuals may be experiencing homelessness. So we're working with our city partners like the homeless strategy office, to look at what are possible exit avenues. It may be, utilizing some of existing city shelter space and it also could be, utilizing existing resources that exist in the homeless strategy, homeless system, homelessness response system. And so it could be permanent housing or rapid rehousing programs. >> So a number of my questions we don't know. And that's a that that's also the answer just there. And tt't's not a I'm not not criticizing you. It's just I'm trying to figure out how we get to these answers. When we're talking about this amount of money, and so let me ask this. What what is anticipated is [9:34:14 AM] What what is anticipated is going to be, the ability for the city to be involved in the planning process to get answers to those kinds of things so that we know, for example, how people are going to be exited. Since we're going to need to have additional resources on the other end of this. >> So part of this program is to have a coordinating or executive committee that consists of all of the funders that will be at the table to make those decisions, work on those systems. To make sure that there's alignment to get individuals into the program and successfully get individuals out of the program into a location where they can maintain the progress that was made in that 90 day intensive treatment program. >> Okay. >> What is the realistic projection for when a full diversion center that this is the pilot for would be. Completed? That is another unanswered, unknown right now. [9:35:14 AM] unanswered, unknown right now. Yes. Mayor a couple of things that I think that in terms of your the questions you asked, Robert mentioned that we will have some clients or individuals that come from the central booking, that that as part of the consideration negotiation, that's part of the jail that we just did, we just negotiated a contract where we increased the funding of 2.9 million for, for the prisoners that are held there. >> So we, in effect, would be paying twice. We paid for the for that contract that we approved. And then those individuals will be referred to this center, which will be paying for again, those are the kinds of questions I think we're going to want to get a deeper understanding of as we negotiate this contract. In addition, I think we want to know the long tum future. And while the governance process is mentioned, as Robert just mentioned, this committee, I think there needs to be some we're going to argue for it to be a little bit more robust, something akin to a joint venture, so that we are if we're going to be a funder, we're going to be a decision maker. And so we'll have to sort [9:36:15 AM] maker. And so we'll have to sort through those things in terms of what the detail that you just asked in terms of the long terme future and then how this is going to facilitate. And certainly if this this facility is our facility and there has been no credit given to us at all on this one, and we'll want to talk about that as well. >> So councilmember Fuentes, thank you. >> And you know, I guess one, I just want to reiterate, I'm fully supportive of us of the city joining this partnership in bringing a mental health diversion center to our to Austin. It certainly needed I had the opportunity to tour the Harris center and Harris county to view Houston's mental health diversion and have seen the great impact that it has had within their community. I'm disappointed to hear that the building in which this mental health pilot program will be operating out of is not considered, or not part of the value that the city is bringing. You know, we want to be partners in this joint initiative, but our assets that are actively being utilized for this pilot program need to be counted. And so I would like to see that reflected in the partnership moving forward. And also the amount of questions that were [9:37:16 AM] amount of questions that were asked that we don't have an answer for is alarming. You know, the city is putting up to 2 million for the mental health diversion center with very little information. Ocean and I again, I'm supportive of us moving forward. But we have to get this information. We need to have a better understanding of how this pilot program will work and the outcomes that will achieve as part of it. I want it to be successful. I know there's a great need in our community. But we deserve this information. And so I would like to invite our county partners to join us at either at a public health committee where we can have a deeper dive on the mental health diversion center, or at a future work session. But if we are partners in this, we it's incumbent that we have this information. And so I do want to set that expectation is that we deserve this, information moving forward. Thank you. >> Thank you, councilmember. Councilmember Ryan alter, I was just curious since today we're authorizing the negotiate action, what you or the manager timeline expect us to be able to come [9:38:18 AM] expect us to be able to come back. >> And I think hopefully when you do, we will have hopefully more answers. But just curious what the timeline looks like. >> Well, it would be difficult to tell until we sit down at the table and sort out through our list of issues that we want to be, make sure that it's incorporated in the in the agreement. The interlocal and satisfactory answers, and and so we'll have to just sort through that. It may be weeks. It could be a couple of months. It just depends on how quickly we can move it. Move. Okay. >> And I and I don't know if this is contemplated at this stage of the game or not, but, you know, if we are if this is a successful as we all want it to be, you know, that has a huge fiscal knell net benefit on the jail side of things, which we partially fund, but is a large expense of the county. And so, you know, I'd like to have us think about where that credit, as it were. You know, this is about more than dollars. It's about people. But when we do it right, we can save money. And there is a fiscal benefit to be had. So just, you know, I'm not [9:39:20 AM] had. So just, you know, I'm not sure how we think about that. >> I think that's a very good point, councilmember. We'll certainly want to incorporate it. Well, the other thing we just want to say is that, the Robert, mentioned how what this funding is for some of it is for housing. That's clearly our lane . That's a lane that we have some of this is for health services. That's not our lane. That's central health's lane. And so we just need to understand how that number was derived, where we landed on a number where we're paying for both of those things. Now part of that is will be the detail. As I've said, and I think I'd want to continue to urge you, is that we have other, other priorities that we're going to need to fund at some point in theututure. We need to get out of the health care lane, and we need central health to step into that health care lane, because that is part and parcel of their responsibility. When we approve. The district back in 2004. >> Thank you, council member. Thank you. Manager anything else on item number 43? Yes. Councilmember harper-madison. Mr. Mayor, I would just like to know if this has any any connection to or could it have [9:40:20 AM] connection to or could it have any connection to all the work that you've done with ash? Well, yes, it could, it currently does not appear to. And that's part of the reason I was asking some of the questions I was asking. Especially when the stokowski report was first mentioned. And so, and for those that don't know what councilmember harper-madison is making reference to is that the Austin state hospital, is getting ready to I want to say, reopen, but it's really a new opening. It's an opening of a new facility. And as part of that, there's the stokowski report, that is referenced originally talked in terms of being able to do some diversion from the hospital and so there has been there have been ongoing discussions, and we're continuing with those where we might be able to do some sort of what is being referred to as therapeutic housing that would be on both [9:41:21 AM] housing that would be on both sides of the equation. Ann for example, someone that is in the hospital for a critical situation, in a crisis situation , competency is restored. They're not cured, but the competency is restored and they don't need to be in the hospital for what is critical care. But they don't have a place to go. So if we could have therapeutic housing that would allow them a place to go so they don't end up on the street. Another crisis situation, maybe even exacerbating their mental health situn. But your question, the front side is also a key part of that. There are people that may not need to be in the hospital. If we had the ability to divert them from that need by providing some form of, again, potentially therapeutic housing or something of that sort. So that they could be cared for while we find them permanent [9:42:21 AM] while we find them permanent supportive housing and, and wraparound services and those sorts of things. So we currently have ongoing discussions about that. This this diversion center, there seems to be a desire to keep it separated and focus more predominantly on diversion from the jail siion as opposed to diverting from the hospital. So there they're related, but yet there's some desire to it seems to keep them separated. I hope that answers your question. >> It did. Thank you, I appreciate it. I just know that, you know, after having read some of the things that you said initially when you were initiated, that process around the brain health institute, it just really caught my attention about some of the preventative methods. Just thinking through, you know, our indigent health care cost and subsequently how that affects homelessness. I do have a question. You said, up to 90 days intensive inpatient care . I. Happen to know that that [9:43:23 AM] . I. Happen to know that that could be very costly. And I'm just curious when you said manager, get out of the health care lane, is that what you were making reference to? >> Well, I mean, I think there first of all, let me just state we know there's a need, right? There's no there's no dispute on that. These individuals don't need to be with the general, prison population, right. Or jail population. But to the degree that the issues that they, that they experience are behavioral health issues and or substance abuse issues, those are health health care matters. And there's an agency that's that should be in charge of the health care matters. And, and we want to we want to work with that because I think they they need the degree we can address those, those those individuals can then who are experiencing either homelessness or these kinds of issues can get into permanent supportive housing or transitional housing, as the case may be appropriate. And that's what where Robert will be working with our housing department to make sure how we line those, the city resources up, to be able to have these individuals leave this, this treatment into a stable home [9:44:23 AM] treatment into a stable home environment. And so I think the partnership is important. I think we have to define our lanes and what my preference is. But of course, this is a policy question. Is that on issues of health care, we would ask we would ask our partner at central health to engage in this. It's my understanding they're contributing a million and a half dollars to this because of the way their fiscal year works. We have the same fiscal year, but we have 2 million that we put aside. And so those are the kinds of things we want to just better understand as we do this negotiation and get to the details. >> Councilmember vela and then councilmember Ron alter, did you have your hand up again? Oh, that was before. Okay. Very good. Councilmember vela. >> Just a quick question. I heard it. I just didn't quite catch the value of the real estate that the city is going to be providing. And again, we're talking about the former Ronald McDonald house there on about what, 15th. And is that San Jacinto, I think, what is the value the market value of, of that building? >> We estimate the fair market [9:45:25 AM] >> We estimate the fair market rent on that property would be about $300,000 a year, about 300,000. >> Okay. Thank you very much. >> Thank you. >> Thank you, thank you. Sir. Anybody? Anybody have anything else on item 43? Good discussion . Thank you all. I appreciate your answering the questions. Members, the next item that's pulled is item 14. But, it's my understanding that council member Alison alter has another question on item number 25. So without objection, I'll go back to 25 and recognize councilmember Allison alter, and then I'll go to item 14. Thank you. >> Councilmember Ryan alter, I noticed in your, version two red line, you included the food plan and a whereas and then got rid of the adopted, beforelan in another section. I would just like to understand, since we are not in the same quorum and I can't talk with you, I'd like to understand your rationale for [9:46:27 AM] understand your rationale for incorporating the food plan, which is underway. In that manner, as opposed to the way that I had proposed it, because I think there are some other elements, that may not be in there, but I'd like to understand your rationale. So then I can, think about whether I want to further amend version two. >> And just so I'm clear, you are referring to the change on page four, line 94. So I had in my amendment, to be it further resolved related to the food plan, it looks like you tried to incorporate them by adding a whereas, about line 39 related to the food plan. >> And then you added the food plan to the list. On page four, line 94. Shaw. But my original, language was more extensive because the food plan has not been adopted yet. And so I wanted to call out, certain elements that are really, lined up. Well for the kind of investments that you're talking [9:47:28 AM] investments that you're talking about here. And I don't know whether that plan will be adopted before we get your plan back. So I thought it was important to really highlight some of those things, but I wanted to understand your rationale for the way that you did it. So that I can best respond with further amendments if needed. >> Got it. >> So that that came after talking with staff about making sure that they they were not asked to provide any recommendations on plan on elements that weren't completed yet since the food plan is still underway. If there were items in there that they could, look to and make an evaluation of, they would do so. But if there were other, you know, if part of it was still in draft status, then that would would not come into play at this stage. And so that's why we scratched, adopted. But it was at the request of staff to do it this way. I'm happy to, to identify [9:48:29 AM] way. I'm happy to, to identify the specific elements that, that you had. Brought forward as, as more important or ones we want to focus on. I think that's, reasonable, but that was just why it was formatted this way. Because after meeting with staff . >> Okay, because I had met with staff to formulate my, amendments as well. And I understand why in that, in that list, you need to delete adopted to do that. But there were some, you know, very specific things. You know, we need to acquire land use, for the farmland preservation, etc, which I think is a very well established, strategy that is being put forward. And there's a lot of things that were we to go forward with the bond, you would really want to have, included in that. There's also, investments that are put forward in other reports that haveome forward, like the 2022 state of the food system report and the supply chain vulnerability assessment and the central Texas food [9:49:30 AM] and the central Texas food system dashboard. I ll have my staff try and work, again with the staff that we were working with and make sure that we accomplish this. But I think we may need to still incorporate it in some additional, additional ways. Precisely because it is not an adopted plan. And we want to make sure that they are paying attention to it and that it doesn't get short shrift. Because of the timing, that sounds great. >> And just so you know, we were talking with the sustainability office with Zach. So, I don't know if that's who you're also talking to, but that way you are free to talk to staff, and we are free to talk to staff. We just can't talk to each other. So but I think that that's very reasonable and I'm happy to, to take a look at whatever proposed language you have and, and figure out where that fits best. >> Thank you. And it's not to prioritize food above everything else. I just because of the status of the food plan, which you know, so many of us who have been on the on the dais have [9:50:31 AM] been on the on the dais have contributed to and people are working really hard on it. And, want to make sure that we are we are addressing those needs and they don't they don't, get not included just because of the timing issue here. >> I agree, and I and I think we're going to have a pretty great opportunity at the housing and planning committee to talk about food in our greater context. >> The agrihood, which I had never heard of before. So I'm looking forward to telling my secret to learning about that. I am I'm giving a little preview, a sneak peek. But no, I appreciate that, and I just I should also take a note. I meant to thank my co-sponsors earlier, but, council member Ellis, council member. Fuentes. Council member vela and Velasquez. I really appreciate you all joining in on this critical need and look for to continuing the conversation. Thank you. >> Council member. Thank you, councilmember Allison alter, to, that will take us now to item number 14, item 14 was pulled by councilmember Fuentes for discussion today. So I'll recognize councilmember Fuentes. >> Thank you. Colleagues, before you, and I believe will be [9:51:32 AM] you, and I believe will be posting these motion sheets to the message board. So councilmember alter and councilmember Kelly, for you to view because I don't think they've been submitted to Katy just yet because we wanted to have a discussion on the proposed amendment language in case there are any tweaks from the dais, we want to be sure to include that. So what we have before us with item 14 is updating our climate equity plan, and the recommendations that were initiated last fall, and it included recommendations from our planning commission and our joint sustainabilitycommission. So today's item is focused on actually updating the climate equity plan. My motions add some language to that update to the climate equity plan. There are really focused on the city's role as a major employer and how the city can moving forward, adopt policies with telework that move the needle on us meeting our climate equity goals. So the first one includes some language that, that, you know, moving forward, city of Austin and telework and remote work policies contribute to the [9:52:32 AM] work policies contribute to the goal. And that we encourage no less than 85% of eligible city of Austin employees to participate in telework. And I want to acknowledge that not all employees have an option. And being able to work from home, there is a disparity. And so I want to thank our emergency first responders, our public works and transportation personnel who don't have that choice. And we understand that. And we want to recognize the hard work that they do day in and day out for our city. So this the first amendment is on updating the climate equity goal to encourage the city of Austin to also adopt telework policies. The second one is asking for the city manager to report, on a semiannual basis, this the impact of the telework policy implementation and. And and there's a number of questions there that I would like to ask if there's someone from hr available. I do have some questions. >> I thought I saw Rebecca earlier and also we have Zach here as well who can help answer [9:53:33 AM] here as well who can help answer some of these questions. >> Perfect. >> Thank you. Director Kennedy. So the questions I have is do we know the total number and percentage of telework eligible employees? >> What we have is we do have some data. Let me pull this up real fast. We do have some preliminary numbers that we when we were initially looking at the policy, how many employees that we had that would, be eligible, like you said, we do have a subset of our population that just their job does not lend towards teleworking. What we have found is probably around 7500 of our employees are eligible to telework. And we established our policy with that in mind. >> And what is the current status of implementing the flexible work arrangement policy as laid out by hr back in December? >> It did go into effect January 1st. However, it did have a exception process that we are in the middle of working through [9:54:34 AM] the middle of working through the number of exceptions that were received that were received by our employees. That went through a workforce governance committee that is looking at all of the information Ann, and with the hopes of having the review done by the end of February. And then we would have a full implementation. We're thinking by the end of March, and do we have a sense currently of how many employees. >> So we know 7500 are eligible for telework? Do we know how many of those are currently in a in a telework arrangement out of we would have to look at more of that data. >> What we looked at was of those 7500, they're all eligible for telework, up to the 50% policy that we have in place. There are certain titles that were exempted based on industry standard and that was ally centered around our call centers, our it professionals. That may work more telework than that 50% standard. And the exception process is also looking at those requests from individuals that that submitted those. And so we will have more of that information. Probably [9:55:35 AM] of that information. Probably towards the March, April time frame. Thank you. Great. >> Got it. >> All right. Thank you. >> I feel compelled to say happy Valentine's day. >> Yes, I'm in the I'm in the spirit. >> You are definitely in the spirit. And thanks for the reminder. We'll see about acting on that. She doesn't watch work sessions, so I'm okay. Yeah. All right. Anything else on items of interest from council? Yes, councilmember alter, I have 1 or 2 questions for, Mr. Mills on item 12. >> If we have a moment. >> Okay. And I and I think this is for you, and it might be for Ed. >> I'm just curious, as if we approve this, contract for the legal services ipefully we will return to the table and have the negotiation. If we [9:56:36 AM] have the negotiation. If we don't, does this money get spent? Is part of it a retainer just that will be a question. >> I can answer the question. Thank you. So we, we always do an up to an amount when we have outside counsel, and this is no different if we don't spend the money, if they don't do the work, we certainly will not pay them. It's not a got it flat fee. Okay >> And so if they do come to the table, then just in terms of understanding of process, we that's governed by 143. And that's a whole that sets forth the, the process for, you know, our negotiators, their negotiators, and the public process is that correct? >> So the so, yes. Well, I think I answered the meet and confer statute allows to modify anything and everything in 143. And so that's the process. Yes. So if we've been out of contract for over a year, there are pieces that will be kind of [9:57:36 AM] pieces that will be kind of reopened and rediscussed through the different articles, but that is the that will be the process. >> Yeah, I didn't I, I didn't ask it properly, but you covered it. >> I was curious if being out of contract changes the process at all. When we meet and confer, if we come from a contract. But it sounds like it doesn't really change anything, just be the starting point and typically out of a contract, you look at the last contract and that will shorten, hopefully shorten the timeline. Okay. Thank you very much. Thank you. >> Council member. Yes. Council member Ellis, I just wanted to flag I know the agenda office sent it out. >> I had some contextual questions around item 34, but they have distribute, did some backup from the city auditor. Just because I'm not on that committee wanted to understand that P process. But there is information that's been sent out by the agenda office on that item. >> Great. >> Thank you. >> With that, members, we will go to briefings. And, the first briefing will be item b1 and, Mr. Gray, it's my understanding [9:58:38 AM] Mr. Gray, it's my understanding you're going to make that presentation. >> Awesome. Good morning, Mr. Mayor. And city council. Thank you for giving us the opportunity to provide you with a briefing on how we are building our emergency shelter and permanent supportive housing system to respond to the needs of our homeless community as it exists today. My name is David gray. I'm the homeless strategy officer for the city of Austin. I'm going to begin today's presentation, Ann. And then I'm going to hand it over to Mr. Jamie may, who is an officer with the housing department. Before we dive in, as a native new orleanian, I'd be remiss if I didn't say happy mardi gras. Hopefully all I see. Council member harper-madison is in the mardi gras spirit. I am staying off of social media because I cannot stand to watch all my friends and family have all that good fun today. But we're going to have some good fun today here in council work session, so [9:59:39 AM] in council work session, so thank you for your time. So just kind of diving in, we're going to cover two key topics today. The first will be an overview of how our team is working to increase our emergency shelter opportunities for our residents experiencing homelessness. And then I'll turn it over to Jamie may, who will talk about the pipeline for new, permanent, supportive housing. I do want to be clear that we are moving full speed ahead, in partnership together to build our entire system infrastructure. The fact of the matter is, we don't have the luxury of choosing if we want to go all in on more shelter or all in on more housing. We need both. And I'm really proud of the fact that we're making strides in closing gaps in our system. Just to give you some context for today, I want to start off with some system data. And this is in terms of what we're seeing system wide. A lot of this information comes from echo. So the October 2023 estimate of, persons experiencing homelessness in our city sat right around. 6600 people. Of those, 153 were in shelter and [10:00:40 AM] those, 153 were in shelter and 5500 are unsheltered. Living on our streets, living in our parks and waterways, or wherever they're able to safely and camp. We do have some data pointing to housing move ins from our system. And so from October 2022 through September of 2023, we saw over 1400 move ins into rapid rehousing opportunities, which is 1 to 2 years of rental assistance coupled with supportive services. And then we saw over 200 move ins into permanent supportive housing opportunities, which, as the name implies, is truly permanent, supportive housing. As of January of this year, our system capacity is just north of 1000 permanent shelter beds. So that 1000 count does not include the 300 temporary beds that are in operation at the marshaling yard. We have over 1700 units of permanent supportive housing, and then you can see our system capacity for other types of [10:01:40 AM] capacity for other types of housing that we have in our system. But our focus today is going to be on those first two, investments. So our shelter system capacity, this is what it looks like today. We currently stand at a total of 1375 shelter beds across all of our operators. The operators at the top with the gray highlights. Those are city ow and city funded facilities. And this 1300 count includes the marshaling yard, which is our temporary shelter. The shelters mentioned in the bottom of this list are shelters that are not city owned. However, we do work in partnership with all of these operators to ensure that our system is growing and scaling effectively. We still have some wao go, though, right? We do have some permanent shelter beds in development. Over at camp Esperanza, which is a site managed by the other ones foundation, there in the midst of their phase two expansion, which will add an additional 115 beds to their system, and then [10:02:41 AM] beds to their system, and then down at the eighth street shelter, just down the street, we are in the process of working with urban alchemy to get to our 150 bed count. So we have 85 more beds to go when these two phases are complete, this will add an additional 200 permanent shelter beds to our system. Now, you might recall in July of last year we talked about our gaps in our system and what our additional need for emergency shelter look like. Today we stand at a need of 615, beds that we need to deliver by the end of 2025. I do want to note, and this is particularly important, that that gap count does not include the temporary beds that we have at the marshaling yard. It also does not include the phase three beds that will be developed by the other one's foundation. Last week you probably saw the announcement from txdot that they closed on a land purchase on a piece of land adjacent to the camp Esperanza site. We anticipate that an additional [10:03:42 AM] anticipate that an additional 225 shelter beds could be delivered there, but we are working with the other ones. Foundation Ann and txdot to finalize that estimate. However, once we get those beds online, coupled with the marshaling yardbeds, you see that we're making great strides in closing the gap. I also want to note that when we last presented this data to you in July of last year, our gap was 717 beds. So again, we are making progress to close this gap, and I'm really proud of that fact. I'm also proud of the fact that today we are providing more shelter opportunities for our community than we haven history, and that's what this chart shows you is the number of shelter client count. It's at record levels. And this is despite the fact that we temporarily lost the Salvation Army shelter, which we've now reopened as our eighth street shelter. This data also includes data for the marshaling yard capacity increase. What's not accounted for in this chart is the 65 beds that are currently online at eig street. And that's just because of the timeline for which this data was produced. So you can [10:04:43 AM] data was produced. So you can look at this chart, maybe add about 65 more beds to that. And that's the number of clients that we're actually serving today. I do want to note that we do this work in addition to our other shelter operations that we run, such as cold weather shelter. Again in January, we served a record number of 654 clients in one night at our emergency shelter operations that work could not have been done without partnership with our other city agencies. Other public agencies like cat, metro and our community of support, Austin mutual aid and sunrise, and other organizations that were instrumental in helping us get people off the streets during that cold weather event and into shelters. I want to thank them for them, for their support and helping us with our emergency shelter operations. So the emergency shelter by the numbers, Wright just to kind of break it down and get a little bit more into the weeds, in the last fiscal year, we had 3324 clients who used shelter services in our system, our shelter bed utilization rate is [10:05:44 AM] shelter bed utilization rate is 90. What that means is that our shelters are nearly full all the time. Last week we talked about the marshaling yard and how the marshaling yards been at or near its 300 person capacity for a couple of months. And we're seeing that across our system that our shelters are full, which is why we're charging ahead with trying to bring more shelter beds online and into operations. The average number of days that our clients are spending in shelter sits at 126 days, and nearly half of our clients are clients who meet the definition for chronically homeless. This is in large part individuals who have been homeless for. At least the last 12 consecutive months with a disabling condition or they've had multiple instances of homelessness within the last four years that have totaled up to 12 consecutive months. And they have a disabling condition. Now, I pride myself on our system outcomes. What I really want to know is not just are people coming in and using the beds, but are the beds successfully helping people in [10:06:44 AM] successfully helping people in their homelessness? And with this chart shows, is that we are moving in a positive direction. Currently, 60% of all of our exits from our shelter system system wide are positive, and I'm proud of that fact. 37% of our clients are exiting into a rapid rehousing opportunity. 3% are exiting into a permanent supportive housing opportunity and I do expect that slice of the pie to grow significantly as we bring more permanent supportive housing units online. Jamie will talk about those units in just a second. And 20% of our exits are what we call additional positive shelter exits. That could be somebody exiting into another housing opportunity. Maybe reuniting with family, being sexually successfully diverted, etc. Now what? This also means is that we still have folks who aren't exiting successfully. And so our team is now moving forward with really trying to understand why we have unsuccessful outcomes, what's causing unsuccessful outcomes. Anecdotally, I could tell you that there's a number of factors that contribute to [10:07:45 AM] of factors that contribute to this. Some of this is the inability to have adequate case management support for folks in shelter. Our partners are trying to hire case managers. But it is a workforce challenge. A lot of folks who do this work get burned out or they move on to other opportunities that pay better. But we continue to invest in our workforce and making sure we can connect people with case management support. We have some folks who just decide that the shelter opportunity that they've been provided is not the right opportunity for them, and they make the conscious decision to leave shelter and return back to the street. And then there's 18% of our exits that we don't know. And as you might recall from, last week's public health committee presentation, when we talked about this population a little bit, these are folks who leave shelter and we don't have the opportunity to do an exit interview, so we don't know where they go. I will say that when folks leave shelter unsuccessfully or for an unknown reason, unknown reason, most of the time they're still connected to a service provider if they have one. So even though they're not housed, they're still receiving case management. If they have a case manager there, [10:08:46 AM] they have a case manager there, they're still going to sunrise to get connected with navigation services. They're still engaging with my street outreach team. And so as we engage with folks and learn about where they are, we do update the data. The last two slides that I'll touch on before I kick it over to Jamie is, wanting to put into context our system performance as it compares to our N national peers. And so what you see is the dark blue line that looks at the outcomes for austin-travis county. The light blue lines that look at outcomes for other major cities that have a hud designated continuum of care. And this is hud data that we're looking at. And so when you look at exits for clients that are leaving any form of system investment, that's not permanent supportive housing. So this is emergency shelter, safe havens, transitional housing as well as rapid rehousing. Our system is performing better than our peer cities. More than 50% of our clients are having positive, successful exits, while the national average for major American cities just sits right around 30. And so I'm proud of [10:09:48 AM] around 30. And so I'm proud of is work because it shows that we're doing the good work and that our system is having better outcomes for austinites than what the national arage is able to produce for other people in the same situation. I will be honest. I'm also frustrated by this because my goal is always to get to 100. And so we're even though we're doing better than our national average ternational peers, we're not settling for this figure. Our goal is to continue to perform better each and every year and have our trend line continue to go up and up. When we look at permanent supportive housing. And this is why it's really important that we make investments across the entire system. Our permanent supportive housing measures and exits are also better than the national average. You can see in the dark blue line are positive exits from permanent supportive housing is 98. With that basically means is everybody who goes into permanent supportive housing has a positive outcome. This intervention works, which is why we're leaning more into it. And Jamie will touch on that on the next slide. I'm also happy that our 98% is better [10:10:49 AM] happy that our 98% is better than the national average of 96. So again, we're seeing great outcomes when it comes to this measure. Now our goal for the homeless strategy office is to get our shelter numbers and everything up to this measure. But our other goal is to support our housing department at Travis county and others in the production of more permanent supportive housing units in our system. So I'll invite my colleague, Jamie may, to take over the presentation, and he'll talk to you a little, a little bit about the projects that we have in our permanent, permanent supportive housing pipeline. So, Jamie, thank you. >> David. Good morning. My name is Jamie may. I'm the housing and community development officer in the housing department. And happy mardi gras . As David mentioned, permanent supportive housing is one intervention in our portfolio. However, it is, clearly one of the most successful and, one of the most intensive. I'd like to start by just defining that a bit. Permanent supportive using, permanent, meaning that it is not time limited. [10:11:49 AM] it is not time limited. Individuals in these units can stay as long as they have a lease. Supportive. These individuals have wraparound services that provide them the emotional, physical and mental health care that they need in order to be successful. And it is housing. They have a lease. This is a, this is where they live. They they keep their stuff there. And this is where they invite their family. They receive mail. It is a housing unit, just like anybody else's. As you can see from this slide, in 2019 we had approx 50 units come online for permanent supportive housing. That was the terrace at oak springs development. That's 50 units dedicated to the continuum of care. For permanent supportive housing. Over the years, we have invested slightly or we have invested in these developments and our inventory has grown slightly. To where it is now at 100, almost 200 units. However in this calendar year, we do expect that number to triple to as much as 600 units in the following candndar year. We expect an additional 400 units to come online, and in the [10:12:50 AM] to come online, and in the following calendayeyear, we expect another 200 plus units. And we do expect that to 2026 calendar year to increase. As more developments come online and more developments come to for financing. Now what do these numbers actually mean? First, in our current inventory, as I mentioned, terrace, oak springs, elysium grand, these are developments that we have online today that are currently occupied with individuals, with permanent supportive housing. You can see the units column shows how many units are occupied by individual and needing those permanent supportive units. We have about 126 the cost units are those units that are dedicated to the continuum of care. Those individuals could either require permanent supportive housing or rapid rehousing, depending on the intervention needed. However, they do all receive the services as required and the third column that I like to point out is the vouchers. The hakka vouchers. We are very happy and proud to be partnering with hakka on multiple projects [10:13:51 AM] with hakka on multiple projects throughout the city. Hawkins. Vouchers provide the third leg of the stool, if you will, in permanent supportive housing. You have three legs. The first is capital, which we provide either through our rental housing development assistance program or through our acquisition and development program. The third, the second leg is services, which is managed by the housing services office. And then the third is the operating subsidy or vouchers. In the past years, we have relied on hakka to provide those vouchers. And we've known that that is not a, a complete subsidy that we need in order to provide for the entire population. So we have created our local housing voucher program. These are awarded by Austin housing finance corporation and funded through the housing trust fund. I also just point out that the two, facilities that are highlighted in red are partnerships from the Austin housing finance corporation, the Austin housing finance corporation is the ground lessor and a general partner in both of these [10:14:51 AM] partner in both of these developments, and we are able to provide five units to the continuum of care on both of these developments. Now, that's not a lot, but in this next slide, you'll see that we have increased our investment and increased our activities. The balconies, terrace, pecan gardens, bungalows at century park. Those are our hotel conversion activities. We have purchased hotels from the market, and we are now converting them to housing units. Again. These are are fully leased. For the individuals receiving permanent supportive care as you can see that these, property options are either chronic and veterans or chronic. And 55 and up. So it's a specific population targeted. You can also see that the local housing vouchers for, pecan gardens is 28. So we've provided 28 vouchers for, pecan gardens and 51 vouchers for a sparrow at Rutland. I'd like to say that a sparrow Rutland recently had its grand opening. I believe it was last week. This is 171 permanent [10:15:52 AM] last week. This is 171 permanent supportive housing units, provided in district four. And it is a beautiful facility. I definitely invite all of you to come out and see it. Finally, I would also like to point out, community first village, that is a property that is in the county. So we are looking at also at county facilities as well. However, we do not provide any financing, support or vouchers for those, for those facilities. Excuse me. In 2025, we expect another 400 units to come online again. Burleson village is in the county. Katy lofts, royal gardens, Karen point, these are all facilities that we have invested through our rental housing development assistance program with multiple millions of dollars, and with our local housing voucher program, as you can see, through 400 units coming on in 2025, followed by an additional 245 units in 2026. Seabrook square recently had their groundbreaking. This is, on the corner of, Maner and M Franklin. It is two phase development. The first phase is 240 units of, [10:16:54 AM] first phase is 240 units of, family, multifamily developments. The second phase is 60 units of permanent supportive housing. We've provided 48 local vouchers for that. And we're very excited to see that come online. The last, item on this list is the Ralls. And that is 100 units of permanent supportive housing, where we are a partner. It is essentially a phase two to a property that we acquired from the housing authority of Travis county. In summation, we would like we are very excited to see the almost 1000 units come online in our in our pipeline. As they develop out. And I'd just like to highlight a few of these developments, very icickly. First, here is a picture of bungalows at century park. This is located at mopac just north of the domain. It is 60 units of permanent supportive housing. Managed with our partnership with integral care. They are we have provided general obligation bonds as well as arpa dollars as well as 50 project based voucher from hakka and a health services contract from Austin public health. As [10:17:55 AM] from Austin public health. As Rutland again, this opened up last week with 171 units fully occupied. It is 100% affordable in partnership with caritas of Austin and the Vecino group. We are excited that this is online. And again, I do invite you all to come out and see it. Pecan gardens is our third hotel. This is family elder care, managing it for us. It is 78 units of permanent supportive housing. It is 50 project based vouchers from hakka and 24 local housing vouchers from the city of Austin. We've also provided a public health services contract from Austin public health. And this one should be coming online in the next several months. I'd probably say late summer. And then finally, foundation communities brought a hotel to us. This was balconies terrace. This is 120 units located near the intersection of mopac and 360. It is a $16 million, acquisition for using general obligation bonds. And community [10:18:57 AM] obligation bonds. And community development block grant funds. We have secured 25 project based vouchers and, 25 vash vouchers from hakka and a public health services contract from Austin public health. This one should also be coming online later this year. So the major takeaways we are serving a record number of clients in our homeless shelters. Austin's homeless response system outperforms the national average for major cities and we expect a 300% growth in permanent supportive housing units. This calendar year. The pipeline has more than 1000 units, and in that number should continue to go up, as we approve more loans and more financing for more developments. Next steps. The housing, the homeless strategy office will continue transitioning site operations of the bridge shelters in March and exploring additional shelter opportunities to close the gaps. Required to [10:19:57 AM] to close the gaps. Required to find those 600 beds. It will also be releasing a solicitation for landlord incentives later in the spring. Early summer of 2024. The housing department, my team will be continue supporting, continue providing ongoing support for permanent supportive housing and community of care developments through our rental Hsing development assistance programs. We will be monitoring local housing voucher programs for improvements and identifying ways to improve that program and possibly grow it. And we will finally be exploring new partnerships for permanent supportive housing developments, such as the partnership we were able to enjoy with caritas and Vecino. For a sparrow. And with that, I'd be happy to answer any questions. >> Thank you. Councilmember Ryan alter and then, council member harper-madison and councilmember vela and Fuentes. >> This is, excellent data and information. I really appreciate you all putting it together. My first question, Ryan, I'll start with, Mr. May I'm curious how [10:20:58 AM] with, Mr. May I'm curious how many of these projects it's. And you don't have to give an exact number, but just generally we are relying on arpa funds that is, >> An exact number is going to be difficult to come up with. However, I can say that we have worked with Travis county, to deploy their arpa funds. We have used our arpa dollars, on on our hotel acquisitions. The majority of our Erp dollars have been, distributed through the homeless strategy office. So I think David would be able to answer more about that. >> Okay. >> The reason I'm asking is I'm curious if the future projects are projects that are funded more outside of arpa. And so we don't have to think of this surge as fully reliant on arpa, that we have kind of figured out other funding mechanisms or, or are we seeing this this massive surge because of the arpa dollars? >> Good. >> Councilmember. That's a [10:22:00 AM] >> Councilmember. That's a fantastic question. So we currently have about 12 projects that are receiving funding through our social services contracts. And some of those are arpa funded. We have informed some of those providers that we've been able to restructure our staffing so they can continue to draw down on those fundings for an additional fiscal year. We're currently in the process of working with the financial services department, as well as the city manager's office, to think about what ongoing support looks like beyond this current fiscal year, and we'll be bringing that information to council as part of the city's fy 25 budget proposal. >> Great. >> How do I know? So a couple of years ago, there was a model that was developed that was kind of a comprehensive look at what our ter needs are, what our needs are just what the whole, system should look like. Our our where does this fit in? If we achieve these numbers? Is that 600 number from the model, or [10:23:02 AM] 600 number from the model, or are we right sized at that approach? Sure >> So I'll start with that. So the Barbara poppy report included some figures that spoke to the gaps inur emergency shelter system. And so the slide that we presented that day took that model, but we also tweaked the numbers because that report was conducted in the early 2020s. And so we know that the needs have changed since then. So the number that you saw today is based off of that model with, with, a little bit of inflation, right, to account for the needs in our community today, we truly believe that if we can deliver these 600 units that will close our shelter gap, some people are able to resolve their homelessness in shelters. Others will need to move on to rapid rehousing and psh. And so that's why we're working together to make sure that we bring these additional psa units online. >> Great. And as we look at the financing piece again, are of these projects not utilizing [10:24:02 AM] of these projects not utilizing tax credits. >> Thank you. Yes. Actually, several of them are, tax credits are a little tricky with the permanent supportive housing developments because they are not able to carry as much debt. Right. They do have the operating subsidies required as well as the services subsidy. Several of the Travis county collaborative or cip projects are following a debt and equity model. And partnering with a market developer to provide some of that equity. Okay great. >> Well, thank you for your work. And I think the last thing of note, and if I feel like we keep saying the word county around here, but a big part of this is because the county came to the table with their arpa dollars and were willing to invest. And so as we look forward Eid, this is not a city of Austin only problem. This is a regional challenge. And so our ability to continue that good work with the county and have them continue to invest is the only way we're going to be successful is if everybody is contributing. So I appreciate the contributions they've made [10:25:04 AM] the contributions they've made and hope to see it continue. >> Thank you. Thank you. >> Council member, council member harper-madison followed by council member vela. >> Thank you mayor. I appreciate it. Thank you. Council member alter, you asked two of my questions already and then I'd follow it up by saying I didn't quite catch whether or not you all addressed, service cost and whether or not we have funding for those. Yes ma'am. >> So there was some funding for services that was directly appropriated in the current year's fiscal current fiscal year. City budget. We also have some money from prior years that we are going to be, making available to new units that are coming online. So my team right now is working on a scope for an additional request for proposals that we look at launching right around maybe late spring, early summer, and that will be an rfp for our providers to help offset the cost of ongoing service expenses. >> Got it. And you feel like that's sufficient, you know, or is there a gap? [10:26:05 AM] is there a gap? >> It's kind of what we have to work with today. Part of the analysis that we're doing with the financial services department and the city manager's office and my new finance unit is trying to understand what the gap really is. And then bring forth a recommendation on for us to bring forth a recommendation to the city manager's office for their consideration. Ann and as a city to bring forth that recommendation to council. That could speak towards what it might cost for the city to help close the gap. >> Thank you. I appreciate that. I look forward to that recommendation. Yes, ma'am. Another question I had was, Mr. Mayor, you said something about we purchased property from the housing authority, and I'm just curious what that looks like. So the housing authority of Travis county developed a property called city view apartments. >> It's,. I believe it's just west of Mabel Davis park. Okay. And, there was enough property, as part of that acquisition, to develop a phase two. They were, looking to sell. We were looking [10:27:06 AM] looking to sell. We were looking to buy. So we have occupied that property now, as a senior facility and in partnership with , Sally Gaskins, we are developing phase two, known as the Ralls. Awesome >> Thank you. And just out of curiosity, is there any hud implication involved with that property? >> I'm not sure if the city view if the original city views Laura still stand. However, I know that the Ralls is pursuing tax credits. Okay >> And then O on, we talked about a service contract with Austin public health. I'm curious what what that means. Yes, ma'am. >> So prior to the homeless strategy office becoming its own office, a lot of these service contracts were maned by Austin public health. So it's part of the three legged stool that Jamie had referenced, that first leg being the capital stack, the second leg being the vouchers and the third leg being the services funding. And that's the asset mix that really makes these units work. Those Austin public health administered services contracts are now transitioning to my office as [10:28:06 AM] transitioning to my office as part of our standalone office. >> Thank you very much. And then, I heard mention of landlord incentives. >> So that's another program. That's another request for proposal that our office will be releasing later this year. So the intent behind the landlord incentives is to gauge what private property owners who own apartments or other buildings, other units that they would be willing to make available to individuals experiencing homelessness. And so these in turn, will become rapid rehousing, or psa units at apartment complexes or other types of properties. The way that the landlord incentives works is that it offsets the operating costs for the private property owner. It does things like provides first and last month's rent, security deposits. It pays for any damages that might be caused to the unit and it also ensures that the clients who are placed in those units have a case manager that is showing up at least once a week on site to work with the client and ultimately help them [10:29:07 AM] and ultimately help them transition out of the unit. If it's a rapid rehousing unit or provide the ongoing support if it's a permanent supportive housing unit. >> I think, oh, and then the last question is our partnership with family elder care. >> Yes. >> I'm just curious about how that works. It was a I think it was pecan gardens. >> Yeah. Pecan gardens, that facility is owned by the city of Austin. Okay and we have contra with family elder care to manage it for us. >> Got it. Thank you. Appreciate it. >> Thank you. >> Council member, council member vela and then council member Fuentes. >> Thank you. Mayor. One of the slides mentioned that the transitioning the bridge shelters, to, that caught my attention. What is the plan there with the bridge shelter? And again, we're talking about the north, and south. >> Yes, sir. So we're talking about our north bridge and south bridge shelters. You might [10:30:07 AM] bridge shelters. You might recall, last month, council gave staff the ability to negotiate and execute new service contracts for northbridge and southbridge. South bridge is currently operated by the Austin area urban league north bridge is currently operated by the city of Austin. We're trying to get out the operation build, business. So through that solicitation, family endeavors was selected as the operator for north bridge, urban league was selected as the operator for south bridge. And so we're just in the process of buttoning up those services contracts. And then for north bridge, transitioning the operations from, my team, who's there every day over to endeavor staff. >> Okay. So they're staying as bridge shelters. It's just the operations are, are transitioning from, directly city operated to now endeavor's operated. Yes, sir. >> And with what this does kind of organizationally, is it it helps my staff have some additional capacity to find more opportunities to grow our shelter system. So right now, we [10:31:08 AM] shelter system. So right now, we spend a lot of time every literally every day, including holidays, operating that facility. We want to shift so that we could focus more time on growing our system. >> But over the long terme or let's say over the medium tum, though, those will continue to be bridge shelters. Yes sir. Stop out of unsheltered homelessness to a bridge shelter where folks are kind of stabilized and then ultimately be transitioned, hopefully into permanent supportive housing. >> Yes, sir. We have no intention to change how that those shelters operate. So those shelters will both continue to serve as bridge shelters. They're connected to our heel, which is our housing focused encampment assistance link program. That's how they're going to continue to function moving forward. Thank you. >> Yeah. >> Thank you. Council member, councilman Fuentes. >> Thank you. Great questions. Very incredible information. And ank you for your presentation. I really appreciate the holistic, comprehensive, overview of where we're at and our homelessness response system . One thing that I wanted to ask you is, you know, how I'm thrilled to hear that we have [10:32:09 AM] thrilled to hear that we have such an incredible increase in our permanent supportive housing units that are coming online this year. I think you mentioned an additional 300 coming online this year. And then, 600% plus increase by 2026. Can you just share with us how long those permanent supportive housing units were in the works and the length of time it's taken us to get to this point? >> Sure. So espero Ed Rutland is probably the best example. We started having conversations about that in January. In 2019, I believe it was January of 2020, December 2019, at that time, we applied for in that year, we applied for a 9% tax credit because that is the biggest bang for your buck. We were unsuccessful. So we transitioned to a 4% tax credit building the capital stack. And, now we are approximately four years later, with the grand opening. It does take a while, not only to build the capital stack, but also to construct out [10:33:11 AM] stack, but also to construct out the facility itself. Yeah thank you for that. >> I mean, I just think it's important to share with the community because I know they've been hearing for the last few years the significant investment that the city and the county has made. But you can see how long it takes for us to get these permanent supportive housing units built, produce and available for our community. So this certainly has been years in the making, and we are just now seeing the progress. Tanner, progress in motion. One thing I want to highlight for my colleagues was part of our conversation that we had our public health committee meeting last week was regarding the operation of the marshaling yard . Director gray, do you want to talk about how that decision on whether or not to continue operating the marshaling yard, when that will come before council? Because that is a conversation that we still need to have regarding the temporary shelter. >> Yes, ma'am. So our current contract with family endeavors is to operate the marshaling yard for a time of one year. And the marshaling yard is arpa ended. And so under the current plan, we would begin to mobilize in the marshaling yard around [10:34:12 AM] in the marshaling yard around may. And that would be to ensure that we're not just exiting 300 clients back to the street, but rather we're exiting people positively into housing opportunities. That being said, as you saw in the presentation today, we still have a pretty wide gap in terms of our emergency shelter needs and so we do intend to come back to council at some point in the near future to have that conversation about what ongoing operations at the marshaling yard could look like, and whether or not that's something that council is going to give us the authority to appropriate funds towards. And so is it reasonable for council to expect a recommendation coming from the city manager? >> Yes. Council member I think it's, first of all, I want to thank David and Jamie for really an outstanding presentation on the cooperation between these two departments of this office and the department. That is really astounding. And I think that's the kind of teamwork that we need to be doing in this organization to continue to succeed. And I think with respect to the marshaling yard, because of that deficit of shelter beds and because we are going to have events that will happen or whether it's this [10:35:14 AM] happen or whether it's this summer when we have, incredibly, hot weather or will we have another winter event next, toward the end of this year or next year, you're going to want to have shelter beds in place so that we can have places for those individuals to be. And if we increase the gap, that is that we have less shelter beds as a result of a decision not to continue the marshaling yard, then I think it will put us in jeopardy. I know that this winter we, we put into motion the use of recreation centers. The community at least in one community. They sent us notes saying they they, they they, they worried about us doing that. But we had T to have extended use of those centers. So that those individuals wouldn't be turned out in that extreme cold. So I think we'll want to bring back that discussion with you, that discussion, how it's going to be funded, how we would carry it forward and continue to work on where we might develop future shelter opportunities. And that's that's what we owe the council, and we intend to do that, later this year. Thank you. >> And final question on my end was the rapid rehousing portion. You mentioned how critical that is in our ecosystem. And I think one of the slides show that [10:36:16 AM] one of the slides show that there had been a slight decrease in the amount of rapid rehousing units, in our system capacity. Would you mind elaborating a little bit on that? Was there a decrease? Or perhaps that might be my slide. >> Yeah, I might have to go back and look at the slide deck again. If you can pull that back up so you can point us to the slide. I don't know if we had specific data on on rapid rehousing. What I can say is that we currently fund rapid rehousing to the tune of about $6.4 million. On the services side, and part of our landlord incentive program will be designed to bring more rapid rehousing units online. But let's see it slide three, slide three. Sorry all the way back. One, two, three. So with this slide shows is as of January 2024, we had 1100 rapid rehousing units. I can give up my team to look into the history [10:37:17 AM] my team to look into the history of rapid rehousing units and how that's evolved over time. But I can't speak to right now whether or not that's actually declined. >> I'm sorry. I know you mentioned the landlord incentives that y'all are working on, so perhaps that'll help with our capacity. >> Yes, ma'am. Thank you, thank you. >> Council member. Those are all the questions we have on this item. I what I think the questions reveal, which is that, this is really good work and everybody, you know, manager. The specific staff you have working on this, the two of you all. Thank you all very much. Because, we can see the difference. And then this report highlights that difference. So thank you all very much. And thank you, manager. Thank you all. Members that will take us to item B two, which relates to the Austin convention center and potential development opportunity. >> Let me call on, Rolando Fernandez. This is a routine item to take about five minutes. And I think Trish is also going [10:38:21 AM] And I think Trish is also going to help, but I think Rolando has got, got point on this. >> Good morning, city manager. Mayor, mayor pro tem, council members. My name is Tricia Tatro . I'm the director of the convention center. I'm joined this morning by a portion of my executive team and the larger city team working on this overall expansion project. But deputy director Rolando Fernandez and assistant director Katy zamesnik, I'm also joined by deputy cfo for the city, Kim Olivares, as well as our public private partnership consultants that are working with us on this project. Jen boss and Jay brown of Hyatt brown, I want to thank you for your time today. We're going to discuss a potential commercial development opportunity that will be made possible by the redevelopment and expansion of the Austin convention center. I'm going to turn the floor over to deputy director Rolando Fernandez, who's going to lead us through the presentation, and then we're happy to answer any questions after that. [10:39:22 AM] after that. >> Thank you. Tricia. Good morning, mayor council city manager. I think I have 4.5 minutes now. So I'm going to transition into the summary slide really quickly and kind of talk, kind of lay out the foundation of what we want to talk to you about today. And then towards the end, reiterate our recommendation and ask answer any questions that y'all may have. Again, I'm Rolando Fernandez with the Austin convention center. We're going to talk about the overview of this project, why we're here in front of you today, what we want you to understand from this project, we're going to present our recommendation to you all in terms of how we want to move forward and then support that recommendation with the information that's driving the recommended action. So the schedule marketing and 40 year financial fiscal impact, the communication plan that's supported, how we got to our recommendation, along with the market analysis and the fiscal impact and then next steps. Last year, council approved several significant contracts for the convention center redevelopment project. Both the design firm, the construction manager and [10:40:23 AM] the construction manager and also the staff augmentation project team. Prior to that. Now we've been talking about as we embark on this significant oject, it lays the foundation to incorporate a potential public private partnership. We're looking to reimagine the six city blocks that we have here and discover where we can put this potential Petrie project on on site. Not only that, we've also received council direction previously through the form of the 2019 pum district resolution that specifically noted leverage p3 opportunity to support the cost, the funding of the convention center redevelopment project. In addition to that, we were also looking at potential goals through this opportunity. First and foremost is to support convention center activities as you embark on a journey to the convention center. Today you would see that it's activated through events days where it's there are no events going on. It's pretty quiet space. So we want to look at changing that scenario around and making it a [10:41:23 AM] scenario around and making it a place for all folks to come in regardless of whether or not there's an event. And the convention center. We also want to provide opportunities to support council priorities along with community priorities. Finally, we want to ensure that this project provides revenue. As I mentioned before, going back to the resolution to support the cost of the redevelopment project forhehe convention center to support council and community priorities, as well. Our recommendation Ann. As we looked at the market analysis, as we looked at the feedback that we received from mayor and council and the community, we believe that the direction to move forward in this project is to develop an rfq that aims to support secure, the ability to bring on board a developer to support either a hotel or multifamily as the potential development opportunity on site. And in addition to activating the ground floor, uses again, this is supported by the market analysis that we've conducted. It also supports the ability to [10:42:24 AM] It also supports the ability to implement some of the council and community interest that we've heard. Thus far. It achieves other significant goals that we've been embarking on through the redevelopment project for the convention center, and we can align with this potential development opportunity. Those include activating the district area, provide some green space, and ensure that not only the convention center, but this development opportunity is sustainable. Long terme. We also want to achieve the potential to support local realtors, realtors, realtors, retailers. Excuse me? Restaurants entrepreneurs, small businesses and cultural arts. We believe that having this specific direction in the request for qualifications will provide the opportunity for interested developers to be able to respond to the solicitation as we embark on this effort, we also want to continue looking at providing, workforce housing into the configuration of the multifamily development. Our goal is after this conversation is to finalize [10:43:25 AM] this conversation is to finalize the request for qualifications and release that early next month. So early march.o I've talked about the recommendation. You know, I foreshadowed some of the information that is supporting this recommendation. So we want to go into the details of that information, specifically the schedule, the market analysis, the feedback that we receive from council and the community. And then we'll come back and talk about the next steps again, thank you Rolando. >> Good morning everyone. My name is Jennifer Bos with Hyatt brown, the consulting firm that Tricia mentioned. And and again, thank you for your time and the opportunity to present these these findings with you. I'd like to talk a bit about the project schedule and the process that we have have developed building on much of the planning that's been completed for the convention center itself, we began with a market analysis to determine what usesould be viable at the site, given current market conditions. Our next major step has been engagement, first with council [10:44:26 AM] engagement, first with council and then with key stakeholders and the community at large, which we'll touch on in a few moments. We're here today to share that feedback and discuss this direction for the project that Rolando has described and the feedback that we have heard is largely informing the process for that developer partner solicitation. What is unique about this project is that we're leveraging a Progressive approach, given the integrated nature of the convention center and the commercial development projects there, respective architects must collaborate effectively and closely. As such, we won't be selecting a development partner based on, a specific value or a final design line, but instead we'll select a highly qualified team with the ability to deliver the project. That has clearly demonstrated experience and has provided an attractive and desirable notion knell concept and financial strategy. We would then return to council, in July. The session on July 18th to seek approval of [10:45:28 AM] on July 18th to seek approval of that selected development team. Our goal is for the commercial project to begin construction during the convention center development, so as not to disrupt the operations of theconvention center once it's completed. It's critical to note that while we have already launched engagement with the community, key stakeholders, and with you all, this this is not the end of the road in terms of engagement. One of the other critical components about this Progressive approach that you can see in that project schedule diagram is that after a developer is selected, they will continue to lead that engagement as they further refine the concept alongside the convention center department and its architect and builder for the convention center itself. What is critical to note and something that we want to reiterate here, is that the alignment of the design and construction of the potential development opportunity, the commercial development opportunity, has to has to be closely worked together with the [10:46:31 AM] closely worked together with the convention center project schedule. What we don't want to have is any sort of misaligned moment that would negatively impact the convention center's delivery, because there is too much riding on that project for that to happen. So you can see some of the key points that we have identified here, the alignment of those those designs and builders allows for collaboration to maintain that overall schedule, but also from an experiential standpoint, creating a unifirban design for the entire property, whether the ground floor is, underneath the convention center or it's underneath a commercial development, and then, as I mentioned already, avoiding disruption in the newly expanded convention center is critical as well. So as we've thought about how we then move forward, I mentioned that we completed a market analysis and the market analysis determined that hotel and multifamily uses are the most viable at this site, given [10:47:32 AM] most viable at this site, given market conditions. Hence the recommendation that Rolando shared. Just. As a little bit of background prior to the 2019 demand levels, and have demonstrated stable room rates, multifamily, despite the fact thathere is a lot coming out of the ground, has shown stable absorption or leasing of units. And rent growth has not continued to grow the way that it had in the past, but it has flattened and is still highly stable and thus a viable use. We did explore, workforce housing, setting aside a portion of units , if there were to be a multifamily development as workforce units, namely those at 80% of median family income, and found that that may be feasible, but it would require pretty much all of the land value that the project generates to be dedicated to those units to, the a subsidy essentially, for having those lower rental rates. And what that means is that that there is a trade off between [10:48:34 AM] there is a trade off between what can then happen at the ground floor, because that that land value is critical to be able to subsidize some activity at the ground level, where we've heard loud and clear from community council and just about everyone else, that it is important to have activation, important to have a dynamic and vibrant space, and specifically one that helps to support entrepreneurs, small business, etc. So that's something that that we've been thinking about a lot with regard to the other two uses on the slide here, office and affordable housing, those have been deemed to be infeasible. Office is in a challenging state across the country in Austin is no different. We're seeing a lot of inventory changes, work habits that have not yet flushed themselves out, rents that are compressing not just in Austin, but across the country. So building speculative office here is not the best option. And then the other use that we took a pretty close look at was affordable housing, because we recognize that this is a critical issue in Austin as it is in many cities across the [10:49:35 AM] is in many cities across the country. We after numerous discussions with the housing finance corp. Housing authority, housing department, Ed and others, we found that affordable housing is not viable at this location. In the world of affordable housing and you all may know this, especially after the last conversation that we just heard, the primary challenge is to fill a gap in development costs and operating costs and building high expense of, excuse me, expensive, high rise housing only contributes to that gap. As an example, the cost to build a single high rise unit is approximately 42% greater than building a mid-rise or 3 to 4 story unit. Additionally, when you have high rise units, if there is to be any parking, oftentimes that is structured parking, which has a significant cost in and of itself and where the rubber mes the road with those costs is that the subsidies, again, that you all were just talking about in the previous briefing, are not going to be available. [10:50:36 AM] are not going to be available. All, in all likelihood, for a project like this after our discussions with, all of the city agencies that I mentioned, what we learned is that both federal low income housing tax credits, which are critical to fill those gaps in affordable housing projects, as well as city subsidies such as from the, rental development assistance program, are are not likely going to be deployed for a project like this because it is more expensive to build when those agencies federal and local alike, are deciding where to allocate those precious dollar Lucas, they can be much more effectively deployed on projects that are just less costly to build and so with that in mind, it makes affordable housing at the site very, very challenging to achieve. So moving forward, then we took a look at what the fiscal impact would be for those two uses that were deemed to be most feae. And you can see that the project can generate [10:51:36 AM] that the project can generate significant tax revenue regardless of whether a hotel with ground floor activities or apartments with ground floor activities is pursued. Though so as as you can see here, the hotel is anticipated to be more lucrative. Additionally, the hotel would be more complementary to the convention centers operations. It's also important to note here, in the hotel tax line item that you see on the slide that presently 30% ofotel taxes are dedicated to, historic preservation, culture and arts programs across the city. And so as we think about the 315 million that is approximated here, over a 40 year period, that could translate into approximately $95 million, that would be deployed specifically for arts, culture, historic preservation, not just at this site, but citywide. As I mentioned earlier, that we had a robust communication strategy, [10:52:39 AM] robust communication strategy, and we'd like to touch on that briefly here. We have had inclusive engagement, leading up to the rfq that's been led by our partners at adisa communication. As I mentioned, that we had engaged with city agencies as well as city council members to understand preferences and concerns about the project. We also then met externally with stakeholders in over 15 Ann one on one and group interviews, and those groups ranged from nearby hotels, chambers of commerce, atp, which will have integrated Ann at this site as well. Community development organizations and others. We also held an open house at the Blackshear school on January 17th and, at the same time hosted an online survey for three weeks, which closed in late January, which was shared with an extensive list of community leaders, neighborhood associations and industry organizations. And what we've heard from this, these various outlets of communication, first [10:53:40 AM] outlets of communication, first from council, largely a commitment to comply with your previous direction related to worker protection, sustainability and support for women and minority owned businesses. We also heard the importance of continued inclusive community engagement activities, which was definitely already a part of plan. And with regard to the development and the us T that might be contemplated, we heard a desire to include local retailers and restaurants and also finding ways to support entrepreneurs and small busses at the site. This was then married with a desire for active ground floor uses that promote vibrancy around the convention center. And finally, we heard an interest in further exploring workforce housing and seeing if that could happen at the site, which we've continued to do. Community feedback from the survey, the stakeholder interviews and the public meeting was fairly well aligned with council's commitments, [10:54:40 AM] with council's commitments, centering around the seven themes that you can see here. So spanning from economic impact anb creation to urban activation, mixed use development, Burt communication, and continued transparency regarding this project, as well as support for local businesses. So with that, I will turn it back over to Rolando to discuss next steps. >> Thank you Joe, I appreciate that. So we're here today to provide an update to you on our recommendation moving forward. I want to hear your questions, your comments, your input, your feedback. As we work through the rest of the month, we'll be finalizing the rfq. We are partnering with the Austin economic development corporation to issue that rfq. We'll have that on the street for a few months. We want to come back to you council on July 18th with the staff recommdation for a developer work through that development agreement for the next few months. After that, come back to council for approval of that agreement, and then begin working in alignment with our convention center redevelopment project. In terms [10:55:40 AM] redevelopment project. In terms of design and also understanding what is what is feasible in terms of the what I call the anchor development. The main development out in alignment with the rest of the project on site. As Jen mentioned earlier, this this won't be the first or the last communication that we have with you all. We envision again, those two council actions in July and a few months after that, along with additional conversations throughout the project as we get more into details about the feasibility, what is achievable in terms of the anchor development, and also the first floor development, as well. >> All right. Thanks. Let me ask a question right off the bat with regard to the hotel, when you've done your stakeholders or however you characterize that, your your visiting with different people, I'm assuming that you've visited with the folks that own the hotels in the downtown area, the, that we've just had, you know, they're [10:56:40 AM] just had, you know, they're moving forward on the tpid. We've had a lot of work, some good work from, a couple of council members to deal with that tpid and address that tpid and all. So we've got them as partners and a whole lot that we're getting ready to do, including with the idea of closing the convention center for multiple years. What's the reaction of the hotel owners in our downtown when we talk about perhaps building competition with them? >> So I speak, specifically about the feedback thus far, and then I'll let our director, you know, also share some information. There's been additional conversations outside of this engagement effort. Mayor, there's been updates regarding the convention center redevelopment project along with this, this development that we have available. So there's been from my understanding, it's been well received. We see that there's going to be increased, increased capacity as we build the convention center. You know, double in size. We're going to [10:57:41 AM] double in size. We're going to attract a lot more significant events. And in the size of attendees that will support not only the current market of hotels, but also an expanded market, not only with this potential hotel or other hotels that may, you know, develop over the coming years as we construct the convention center. So that's the feedback that that we've received during the our sessions , feedback that we received as part of the regular conversations that our department has with the hotel industry. And I'll let Tricia add to that. >> Okay. >> Yes, mayor. During the engagement process, we did meet with several of the different, different hotels in the downtown area, made sure that we had a wide variety of brands and properties that we spoke to and were part of the engagement process. Overwhelmingly, there was no concern there. There was very little concern, and we heard very little feedback about any fear of competition. So I believe that there's enough room in the market for another hotel within this property. Okay. >> Now remind me, if you will, [10:58:43 AM] >> Now remind me, if you will, on the convention, the what I still refer to as the convention center hotel. Of course, the Hilton remind me when the transition is supposed to occur. With that property. Back to the city. An then my follow up question is going to be, what analysis has been done about the impact of the city building another hotel? Knell on that hotel. >> So I believe that the city that the Hilton property will transition in 2020, 2034.so 2034 would be that case. And we have not done any specific direct, study as to how a potential hotel development on this property would impact that. But we did speak with Hilton as a stakeholder, and the board as well. Through that conversation, they were they were part of the conversation. They were part of the conversation. Yes. >> Can I, mayor maybe perhaps [10:59:43 AM] >> Can I, mayor maybe perhaps also, I've not done a good job to explain sort of the agreement that we would look for with this new hotel, if that's the direction that we go in. This would not be a hotel like the Hilton where the city owns it. This would be a hotel that owners would come in and develop that and would we would ground lease the space where they're operating at, back to support again, as I mentioned earlier, operations for the convention center in terms of paying some of the costs for the redevelopment, supporting the first floor development options that we look at as part of the feedback that we receive from council in the community. So it'd be a different sort of agreement set up than what we have with the Hilton. >> Yeah, and I appreciate that clarification, but it's still the city being involved in the creation of competition in both with the private industry and maybe with ourselves. And that's why I would just like to have additional clarification. But I think you answered the question and I hope you'll if there's a if there's additional thought about that feedback that you've received, you'll share with, with me and the council because I think it's, it's an important [11:00:45 AM] I think it's, it's an important part of our consideration. Thank you. Council member harper- madison then followed by council member qadri. >> Thank you, Mr. Mayor. So my office has provided some feedback on activating, the ground floors of the convention center and the public plaza to small vendor spaces for local artists and businesses. Ideally cooperatively or community run, real similar to pikes peak in Seattle. Does this rfq allow for that opportunity. >> It will. Council member it'll be in the format that allows for any creative ideas that can supported, that can support itself. Or if we sk to invest some monies to support that kind of activity, it will. So it's not closing the door on any option that can be made feasible on that first floor development opportunity. >> You said any option that could be made feasible, well, just, we're in an asterisk. >> What we're looking at, we're looking at everything in terms [11:01:46 AM] looking at everything in terms of the potential ideas that the developer might bring on board in terms of what can happen in the first floor. And so certainly we'll look at, you know, specific ideas that the mayor and council have provided to us that support, this example or supporting small minority business owners or, creating incubator space. And so we will look at all of that and ensure that these things are feasible, not for not only in the short tum, but obviously in the long terme as well. >> I think you're picking up what I'mroropping down. When you said incubator space specifically like that's the along the lines of what I'm thinking. And just to expand and Mr. Manager, just to expand on what I'm kind of getting at here , I'd like to paint for my colleagues a picture of what this space could become. Especially if we consider it not solely the ground floor of our convention center, but also as the terminus of our green line. I have a lot of considerations around, transit investment that will reconnect many displaced communities and new residents to our urban core. I think it's really exciting, to think about [11:02:47 AM] really exciting, to think about the possibilities here and recognize that this is you know, one of those evergreen investments, that we as a city could participate in. So imagine if you're a resident, a Mainer, or far northeast Austin or central Austin and you run a business, perhaps selling flowers or widgets or whatever. The thing is, an and because you can ride the green line into downtown, now there's the small, affordable space as a stall or a pop up opportunity for your business. I really appreciate that everybody gets to contribute to what makes Austin special, and I think that's the opportunity that I see here. And so you wake up early, you ride into town, you set up your booth, you introduce visitors and locals. And I really want to put some emphasis on that. I mean, while I can appreciate that we are attempting to accommodate and make comfortable our visitors, you know, I hope very much that our convention center is also, a destination space for locals. And so visitors and locals alike to experience, what they may not [11:03:47 AM] experience, what they may not otherwise experience. And so I just want to put some emphasis on my concern and, and interest in seeing that we really fully take advantage of the opportunity. There >> Thanks. >> Councilmember. Councilmember qadri, followed by councilmember Ellis. Great. >> Thank you. Mayor. And I hate that I have to go after councilmember harper-madison because I couldn't have said it better. And I was lng at my notes and you said half the things that I was going to say. But I just want to echo and retweet and like all the things that you said, you know, I think this convention center is a public entity. And it's not just for the tourists, and it's just not for visitors that are coming in for a particular, convention. Austin residents deserve space. And, a public space to showcase, everything that Austin has to offer and all their unique, talents and all that. So I think you know, I believe we as a council to have vision and ambition for something for our future generations. And I'm just really excited about what this development can, can, can become, so with that, I think I [11:04:49 AM] become, so with that, I think I have questions, comments, and I guess a little bit of feedback as well. You know, the exploration and workforce housing is a priority for us as a, as a district office. Obviously, the convention center is in district nine. And seeing a 40 year old 40 year financial projection that includes a proposed mix of hotel, multifamily and our workforce housing is really exciting. But my question is, when can we expect the outcome of that exploration? And that and that forecast. >> So we talked about coming back to council for, you know, recommendation of the developer and then taking a few months to work on the developer agreement. I think once we get there, once we get the developer on board, we can start looking at all the different options that are available in front of us. You know, also, you know, concurrently the convention redevelopment project will be moving forward into conceptual. We'll kind of understand the land mass of that project and to see what's available in terms of real estate that can be utilized to support this, p3 project. So [11:05:49 AM] to support this, p3 project. So I think we'll have some understanding of what's feasible when we come back with that. At that master level agreement recommendation on to council. And then continue you on that effort, with understanding that we want to come back and have conversations with you and be able to show you things, with the justification of why things can work and maybe cannot work. And so I would say that over the next coming months, after the July action of, council concerning our recommendation, we'll have more information to share with you all about the options available to us to augment any of that. Jenner. >> Yeah. The only thing that I would add is, is going back to that Progressive development process as well. You know, one of the virtues of it is that not everything has to be set in stone as the developer is selected and so we want them to we've given them priorities. We've heard you all that workforce housing is something to continue to explore. We've heard that small businesses are very important. Local. Austinites, not just in terms of [11:06:50 AM] Austinites, not just in terms of businesses, but also the folks who might come and visit this space are very important. And so those are some of the priorities that will be outlined in that solicitation. And then once the developer is on board, some of those more specific, elements of the development concept can be refined. And of course, it needs to be financially feasible. It needs to support itself because the goal is not for the city to support this commercial development, but, with those those goals in mind, we can work with them to try to find the best combination of uses and outcomes that meet your goals and the community's goals. >> Great. Yeah, we look forward to staying connected and all the updates that are to come and just kind of want to wrap it up. I really do appreciate the presentation. I appreciate y'all's time. And, you know, we just want to respect the current timeline of the project. And we want to make sure that, you know, this is a very high value project. And for us to make the most of it, like, you know, like councilmember harper-madison [11:07:50 AM] councilmember harper-madison harper-madison said, not only for those who visit Austin, but those who live in Austin. So I appreciate the work that everyone's done. The convention center staff, especially Katy and Trish, and I really appreciate your time. >> Thank you. Council member, council member Ellis, then council member, Ryan alter. >> Thank you. Mayor. I echo the sentiments of looking at whether there's a correct blend of hotel, multifamily and workforce style housing. >> Lang. We've talked a lot up here on the dais about the need for making sure that as our downtown expands and we have a lot of workers that those businesses rely on for their day to day services, that we are creating a space where people can live close to where they work, minimizing traffic and trying to stop the, the, the process we're currently seeing where people get priced out of certain parts of town and they have to continue to move further and further away, spend more time in their cars and in traffic, and all the pollution that can come with that. So I'm supportive of seeing where that Wright level might be for those [11:08:51 AM] Wright level might be for those conversations. >> I also want to echo a plug for that first floor engagement, the, you know, walkability, making sure there's space for our local artists, musicians, first time restaurateurs, you know, people who need a smaller footprint to get their business off the ground or to get some exposure in the community. >> I would be support of that . And I know years ago there was a concept drawing that had gone around that incorporated a rooftop garden, and it reminded me of the work that we've done with the central library, which is a beautiful building and trying to better blend in the density of downtown and the busyness of downtown with what the palm park can be and what Waterloo greenway can be. So I think if there's a way to blend in some of the bike, pedestrian and the green space into this planning as it moves forward, I think that would be a great advantage to the community. And I think the current building does it have Leed standard right now? Does it have some level of [11:09:52 AM] now? Does it have some level of our convention center currently is Leed gold perfect? I would hope that we could achieve that or better if there's a higher level. In, in a way to show people who are visiting our community where our values are, how much we care about the environment, and that connected space with the trails and, and open park space. And so I would hope that we'd be able to achieve at least that standard, if not better. And also look at the portions of water forward that we have yet to achieve and implement into our code. I think this would be a great example of making sure we have as much dual plumbing, water reuse water recapture, and some of the other water forward pieces that we so desperately need. You know, this is our our city building. And I want to make sure that as we have that big footprint, that we're looking at the future and, and taking advantage of those opportunities. >> Thank you. Councilmember. Councilmember Ryan alter, I have a question. >> I don't know if it's for miss Tatro or zamesnik. But it's [11:10:52 AM] Tatro or zamesnik. But it's related to the financing or the dollars that this potential development generates can support, whether it's that ground floor space or whatever, that community benefit is. But I just want to, double check because you mentioned also the convention center and my understanding is that the convention center financing is fully complete without any reliance on the p3. So we don't have to think of any of this money being needed to fill out the convention center capital stack. Right. It's that's taken care of this can be fully dedicated to the public purpose. Is that right? So there's been conversations before regarding the financial plan to support the redevelopment of the convention center being fully supported through the bonding capacity of the convention center and cash. >> The convention center. But we envision Eid utilizing some of that revenue produced by the p3 to support paying off the debt. A little earlier or just being able to work through as we move forward with the convention [11:11:54 AM] forward with the convention center redevelopment project, you know, increases in the market conditions regarding construction, work in that nature. And then the second area is to looking at supporting some of that commercial, commercial development in the first floor as well. And so if you can imagine a rainfall of how we would like to use that income produced by the development is trying to support convention center, paying off the debt, supporting the implementation of the council priorities for that first floor community priority for that first floor, and then the residual income would be a conversation down the road in terms of how can that be utilized for the benefit of the city? >> Okay. And I just I think, you know, there's a public expectation that the convention center, whether it's the tax or the bonds that have been approved, there are are fully going to that and that the conversations around this have been that it would fulfill that public purpose first and foremost. So I think as we look at the waterfall, as it were, to me, it seems more appropriate [11:12:54 AM] me, it seems more appropriate that that public purpose is at the top and the convention center, you know, if they are to benefit it would come after the public receives that benefit. Thank you. >> Thank you. Council member. I think that's all of the questions we have on this item. Thank you for that presentation. Thank you. And. Members, I think that concludes the agenda that we have. Excuse me, concludes the agenda we have for this city council work session. With that conclusion, without objection, the city council of Austin, Texas, is adjourned from this regularly scheduled work session. It's 11:13 A.M. Thanks everybody .