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19 REGULAR MEETING MAY 14, 19qn PAGE 6 workshops to do necessary studies. The SMEU Board is recommended that the agreement be extended for at least one additional year. Council directed Mr. Gilley to ask the SMEU Board to consider proceeding with the study if there is a time allocation and the time is such that it can be done, if that is not possible proceed with the one year extension and perform the study during that time. Mr. Bill Freeman, representative from LCRA addressed the Council and stated that LCRA is more than willing to discuss any options in regards to the Agreement. Mr. Freeman did not feel there would be a problem with the Board waiving the annual notification until January. Mayor Morris introduced the City Manager's Report. Mr. Gilley advised the Council that the City staff had started the budget process and had distributed the forms. Mr. Gilley stated that he hoped to present a budget in June or early July and would welcome any comments from the Council as to how they would want the budget formulated. Mr. Gilley stated that the City has an agreement with the Goodman Corporation and also a joint agreement with SWTSU and Hays County to complete a traffic transportation study. He stated that the Staff now had a draft of the study which is currently being reviewed and will be presented to Council. Mr. Gilley also informed the Council that the Employee Group had named Mr. Larry Rayos as the Employee of the Month. Mr. Rayos is the Mail Courier Clerk for the City. Mayor Morris introduced the City Attorney's Report. Mr. Taylor informed the Council that the Ethics Review Commission is reviewing the Ethics Ordinance. Mr. Taylor stated that they will be making recommendations to the City Council for amendments to the Ethics Ordinance in early June or July. Mr. Taylor informed the Council that he had sent out a memo on the status of the Sexually Oriented Businesses Ordinance. Mr. Taylor stated that there were two areas the Council would need to address. The first deals with a recent Federal Supreme Court ruling which puts in question one of the licensing features of our ordinance, the time limit. He stated that there is no strict time limit on the processing of applications. In addition because of a change in State law regarding the regulation of massage establishments the City will need to create an exemption from the City's SOB ordinance for massage establishments that employ only state registered massage therapists. The current state regulations prohibit businesses from even advertising massage services without employees being state licensed. Mr. Taylor stated that he would be bringing the modified ordinance to the Council in June. Mayor Morris introduced for consideration an Executive Session pursuant to Article 6252-l7, Section 2(e), V.A.C.S., to discuss pending litigation (GBRA v. City of Lytle, Et Al), contemplated litigation and matters where the duty of the City Attorney to the City pursuant to the Code of Professional Responsibility of the State Bar of Texas clearly conflicts with Article 6252-l7. Ms. Kissler moved to adjourn into Executive Session at 10:35 p.m. Mr. Hernandez seconded the motion which passed unanimously. Mr. Hart moved the Council reconvene at 11:40 p.m. and Mr. Hernandez seconded the motion, which passed unanimously. The meeting adjourned at 11:50 p.m. on motion made by Mr. Plummer and seconded by Mr. Moore. .'~ orrlS . 71y G. Moore Ma o!:-:~ Tern \ \ v~' ~ Rona / Jart'-~ ' Bill Plummer Counc i 1 Member" CoU;l1c:i.-l ~1e:rnber ,.' /--J ¡¿:~ 4./-~. ' ~ A'. ' ' t::-/' ~1 Ie!:' ' Cou6~j i 1 Membe r j~ r ) /' ¡ tt~, - ".71"" ", t :, ",,' '" ) E:7A ' t?)ì/~ut/ "" ",/1",./¡ 7) /, I.' v', / f/~ '-./ J L-/ J is K. Womack City Secretary