USIT FOUNDED 3849 Austin City Council MINUTES For SPECIAL CALLED MEETING Council Chambers, 307 West Second Street, Austin, Texas July 18, 1989 - 12:00 NOON' Mayor Cooke called to order the meeting of the Council, noting the presence of all Councilmembers BUDGET WORKSESSION A worksession was held by the Council, with Mayor Cooke highlighting the budget meetings held so far concerning the 1989-90 budget proposals. Mayor Cooke distributed copies of proposed Budget Review Schedule, copy of which is attached as Amendment A. Councilmembers commented on and asked questions about several department budgets. Discussion was also held on a budget savings incentive program with departments being able to use a percentage of their savings as they wish. City Manager Barnett said she also has ideas for incentives in the benefits package. City Manager Barnett talked about refinancing and/or refunding debt. She recommended this be done when the market is at its best. The Councilmembers agreed with her. RECESS Council recessed its meeting from 2:30 to 6:04 P.Μ. FY 1989-90 (15TH YEAR) CDBG Mayor Cooke announced Council would discuss adoption of general topic areas and funding allocations for the FY 1989-90 (15th Year) Community Development Block Grant Program. Motion Councilmember Nofziger made a motion, seconded by Mayor Cooke "to adopt the City Manager's recommendations with this exception, from the $800,000.00 set aside for Corridor Capital Improvements, we take $700,000.00 of that, leaving $100,000.00, and the $700,000.00, let's split between the Acquisitionand Rehabilitation, add $350,000.00 to that and add the other $350,000.00 to Child Care Facilities Development." Substitute Motion Mayor Pro Tem Shipman made a motion, seconded by Councilmember Urdy to adopt the City Manager's recommendations with the following : Council Memo 2 7/18/89 changes: "Under Housing Acquisition/Rehabilitation $700,000.00, including the Prospect Hill area as part of the Target Area; under Economic Development, Community Economic Development, $400,000.00 and Minority Procurement Assistance, $200,000.00. Under Public Works and Community Facilities, Corridor Capital Improvements $100,000.00 for the parking lot on 11th Street. This also includes, as recommended by the City Manager, a child care facilities development at $463,000.00 and child care accreditation as recommended by the City Manager." Friendly Amendment - Accepted Councilmember Carl-Mitchell offered the following friendly amendment "that in any of the community economic development programs that: 1. Job Creation and Retention Contracts developed for CDBG-funded economic development activities must continue to have specific performance and reporting requirements for job creation and retention. - 2. CDBG Performance Audit Requests for Proposals (RFPS) for CDBG funded economic development activities will be developed after the preliminary findings of the CDBG Performance Audit have been received. Further, should the audit reveal that an organization has not adequately performed its responsibilities, the organization would either not be allowed to participate in the 15th Year CDBG Program or placed on a performance probation for one year to allow for monitored improvement in its performance. 3. Perfomance - - Based Contracts The City should continue to use performance-based contracts for payment of performance in CDBG-funded economic development programs. 4. Duplication of Service - To avoid duplication of service, no more than one organization will be approved to serve a particular area with a particular CDBG-funded program. Areas will not be artificially divided to accommodate more than one organization. 5. Loan Programs- The City of Austin, not a CBO, will administer any new CDBG-funded loan programs for economic development activities. Mayor Pro Tem Shipman accepted the friendly amendment. Friendly Amendment - Not Accepted Mayor Cooke stated: I also think, if there are CBO's, their funding should not be from just one source of money or this money, I think if they are going to participate they ought to have multiple Council Memo 3 7/18/89 sources of money and I think that ought to be a consideration. I feel like it should be somthing like 60%. No more than 60% of their funding should come from CDBG or something like that. Mayor Pro Tem Shipman did not accept the friendly amendment. "Because I don't think that can be accomplished at this time. I think that is a goal to work toward, and I will be happy to speak to the motion later." After further discussion, the Substitute Motion was approved. Roll Call on Substitute Motion 4-3 Vote, Mayor Cooke, Councilmembers Barnstone and Nofziger voted No. (See Attachment B) ADJOURNMENT Council adjourned its meeting at 7:10 P.M. Council Memo 4 7/18/89 ATTACHMENT A Tuesday, August 1 10:00-12:00 Noon Town Lake Center Wednesday, August 9 10:30-12:00 Noon 1:30 - 4:00 p.m. Town Lake Center Tuesday, August 15 6:00 p.m. 8:00 p.m. Town Lake Center Wednesday, August 16 10:30-12:00 Noon 1:30 - 4:00 p.m. Town Lake Center Thursday, August 17 6:00 p.m. Council Chambers Monday, August 21 10:30-12:00 Noon 1:30 - 4:00 p.m. Town Lake Center Tuesday, August 22 10:30-12:00 Noon 1:30 - 4:00 p.m. Town Lake Center Thursday, August 24 6:00 p.m. Thursday, August 31 1:00 p.m. Council Chambers PROPOSED CITY COUNCIL BUDGET REVIEW SCHEDULE 1989-90 BUDGET August 1989 City Manager's Budget Presentation to Council: -Operating Budget -Capital Budget -Policy Budget Council Budget Worksession Joint Hearing with Travis County Commissioners Public Hearing: Social Service Contracts Public Hearing: Arts Council Budget Worksession Public Hearing: CIP and Operating Budget Council Budget Worksession Council Budget Worksession Public Hearing: CIP and Operating Budget Adopt Capital Budget (Begin preparation for September G.O. Bond Sale) CITY COUNCIL MEETING CANCELED Council Budget Worksession C Council Memo 5 7/18/89 ATTACHMENT A PROPOSED CITY COUNCIL BUDGET REVIEW SCHEDULE 1989-90 BUDGET September 1989 Monday, September 11 6:00 p.m. Town Lake Center Tuesday, September 12 Town Lake Center Wednesday, September 13 Thursday, September 14 Council Chambers Thursday, September 28 October 1, 1989 Public Hearing: Electric & Water/Wastewater Rates, Cost Allocation and Rate Design First reading: Adopt Operating Budget Second reading: Adopt Operating Budget Third reading: Adopt Operating Budget CITY COUNCIL MEETING CANCELED Fiscal Year Begins - Council Memo 6 7/18/89 ATTACHMENT B 15TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM COUNCIL ALLOCATIONS HOUSING Standard Rehabilitation Architectural Barrier Removal Emergency Repair Program Public Housing Improvements Acquisition Rehabilitation APPROVED JULY 18, 1989 COUNCIL ALLOCATIONS 500,000 (21.0%) 315,000 (13.2%) 320,000 (13.4%) Rental Repair and Technical Assistance Eberhart Lane (Infrastructure for Sec. 202) Volunteer Housing Repair Total ECONOMIC DEVELOPMENT Capital Improvement Business Loan Program Community Economic Development Minority Procurement Assistance Operation Impact Total PUBLIC WORKS AND COMMUNITY FACILITIES Child Care Facilities Development Corridor Capital Improvements for Parking Lot A on East 11th Street Total PUBLIC SERVICES Child Care Accreditation 250,000 (10.5%) 700,000 (29.4%)* 160,000 (6.7%) 40,000 (1.7%) 100,000 (4.2%) 2,385,000 (48.4%) 400,000 (33.3%) 400,000 (33.3%)** 200,000 (16.7%) 200,000 (16.7%) 1,200,000 (24.4%) 463,000 (82.2%) 100,000 (17.8%) 563,000 (11.4%) Total PLANNING/ADMINISTRATION Planning and Administration TOTAL 15TH YEAR ENTITLEMENT 40,000 (100%) 40,000 (0.8%) 739,000 (15.0%) $4,927,000 (100%) *Council identified Prospect Hill as a target area for this program. (No dollar amount specified). **Council imposed conditions for the Community Economic Development Program as described in Attachment A. 7/20/89 Council Memo 7 7/18/89 ATTACHMENT B 15TH YEAR CDBG COMMUNITY ECONOMIC DEVELOPMENT PROGRAM CONTRACTING POLICIES FOR COMMUNITY-BASED ORGANIZATIONS 1. 2. 3. 4. 5. Job Creation and Retention Contracts developed for CDBG-funded economic development activities must continue to have specific performance and reporting requirements for job creation and retention. CDBG Performance Audit - Requests for Proposals (RFPS) for CDBG-funded economic development activities will be developed after the preliminary findings of the CDBG Performance Audit have been received. Further, should the audit reveal that an organization has not adequately performed its responsibilities, the organization would either not be allowed to participate in the 15th Year CDBG Program or placed on a performance probation for one year to allow for monitored improvement in its performance. Performance-Based Contracts - The City should continue to use performance-based contracts for payment of performance in CDBG-funded economic development programs. Duplication of Service - To avoid duplication of service, no more than one organization will be approved to serve a particular area with a particular CDBG-funded program. Areas will not be artificially divided to accommodate more than one organization. Loan Programs - The City of Austin, not a Community Based Organization (CBO), will administer any new CDBG-funded loan programs for economic development.