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39. Regular Meeting November 10, 2003 Narvaiz stated she is not interested in a contractual agreement. feels these agreements are provided in the CIP for services. Mr. Thomaides stated he feels having a discussion regarding Subareas D and E is harmful to the City. He stated he feels it creates a false impression to some that the Council would consider this area for disannexation. He also stated he opposes the discussion of disannexation, but is willing to review the Service Plans. Mr. Montoya stated he agrees with Mr. Thomaides and feels the Service Plans should be reviewed. Council agreed by consensus to hold a Workshop on Tuesday, November 25, 2003, from 6:00 p.m. to 10:00 p.m. Ms. Narvaiz requested Staff provide the cost of the services the residents of this area are requesting, if they had to pay for the services themselves. She also stated she wanted to know the cost for basic services. She stated she wanted a comparison of neighborhoods which were annexed and the time frame in which they received their services. Mr. Taylor stated he could not support having the residents of Subareas D and E paying for th~ir own services. Page 8 She Mayor Habingreither introduced a discussion regarding the campaign flyer investigation. Mr. O'Leary stated in the May, 2002 Election a racist campaign flyer was circulated. He stated the Council requested an investigation and requested Staff to contact the Department of Justice, Attorney General's Office and local Law Enforcement. He stated none of the agencies were able to investigate the matter. He also stated in November, 2002, the Council approved funds to hire an investigator. He stated in January, 2003, an investigator was hired and then resigned. He also stated in March, 2003, another investigator was hired. He was paid $7,500.00. He also investigated the racist e-mail, which occurred during the May, 2003 Election. Mr. O'Leary stated Council did not direct additional funding for additional investigation. Mr. Mihalkanin inquired as to the response from the Department of Justice. Mr. Mark Taylor stated the Department of Justice assigned an investigator, who looked for evidence of someone's trying to intimidate voters by encouraging them not to go to the polls and vote. He stated the DOJ did not formally respond, but they indicated the flyer did not violate any federal laws. He also stated the investigator indicated they found it made more voters turn out to vote. Mr. Mihalkanin inquired as to the results of the response from the State Government. Mr. Mark Taylor stated the Texas Rangers stated they were not interested in investigating unless the Hays County District Attorney requested them to do so. Ms. Narvaiz stated she feels the flyer was immoral and with the current budget situation she is not willing to place the City in a situation, for other legal action, just because there is a desire to know who did the circulation. Mayor Habingreither stated after the letter in the San Marcos Daily Record, he is willing to take a polygraph test to prove his innocence. Ms. Narvaiz stated she supports the City Manager's decision of not asking for additional funding. Mr. Thomaides stated with the tight budget, he feels this is not worth pursuing. He also stated he feels this is harmful to the Economic Development of the City. Mr. Mihalkanin stated in June, 2002, Council wanted to pursue the investigation. He stated Council has been faced with disinterested agencies. He stated he feels there is no lack of effort by Council. Mr. Montoya stated he feels the City has exhausted all avenues, and there is no point in continuing to investigate. Mr. Taylor stated he