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HomeMy WebLinkAboutMINUTES-1990-01-27-1990�1 1 1 CITY COUNCIL January 27, 1990 A SPECIAL MEETING of the City Council was held on Saturday morning, January 27, 1990, at 9:12 am in accordance with the Mayor's Call of January 8, 1990, for the purpose of reviewing the proposed 1990-91 City Budget. ROLL CALL - PRESENT: A quorum being present. ABSENT: Aldermen Nelson Alderman Davis Alderman Brady Alderman Korshak Alderman Morton Alderman Washington Alderman Wold Alderman Wollin TARDY: Aldermen Paden and Esch PRESIDING: Mayor Joan W. Barr Alderman Collens Alderman Rainey Alderman Lanyon. Alderman Feldman Alderman Warshaw Alderman Rudy Alderman Juliar Alderman Drummer Docket 1-1A-90: Proposed 1990-91 Budget - Consideration of the Proposed Budget for the City of Evanston for the fiscal year 1990-91. A copy of the City Manager's recommended Budget was distributed on December 29, 1989. Budget review sessions have been scheduled for January 13, 20, 27, 1990 at 9:00 am and a Public Bearing on the Budget is scheduled for February 5, 1990 at 7:30 pm. Mayor Barr announced that because the Council was going to consider the Community Development Block Grant Program Budget that morning, citizen comment would be moved to the beginning of the meeting. CITIZEN COMMENT: Beverly Williams, 637 Sherman, Chairman of the CEDA Neighbors at Work (NAW) Advisory Board, urged the City Council to support the level of funding recommended by the Committee, saying that this is an important service to low-income minority young adults; said the group had.worked very hard to make this model program work; reported that HUD had given them an award in 1988. Eldridge Scales, 1319 Emerson, urged Council to continue full funding for ECDC; spoke in behalf of the ECDC Storefront Facade Renovation Program. Albert Bowie, 1320 Pitner, commended the City for the great job it was doing; urged Council to continue funding the work of ECDC at the level recommended by the Committee. Pamela Walker, Director of ECDC, called the Council's attention to the packets which had been distributed to Council members the night before; spoke against cutting any funds to ECDC; said that the cuts suggested to the Small Business Entreprenuer Training Program would have a significant impact on the program; suggested that the recommended funding cuts were based on misconceptions; (At this time Alderman Paden was present.) detailed how the Facade Program worked; said reports of excessive fund balances in ECDC programs were inaccurate; defended the recommendation to renovate the facade at 1817 Church Street, saying that if it was not repaired the building would have to be sold or demolished. UZ -2- January 27, 1990 Art Newman, 1738 Chicago, a member of the Housing Commission, spoke in favor of the resolution the Housing Commission had sent to Council saying that they would transfer $100,000 in interest income if Council would agree to fully fund the Housing Rehab Program out of the CD budget; detailed why a fully -funded Housing Rehab Program would be desirable; suggested that a City of this size should be able to come up with between $200,000 and $300,000 of funding for housing rehabilitation every year; said it's a misconception that the need for rehab doesn't exist; said that the Housing Commission had developed an effective program to market the housing rehab funds; urged Council to take advantage of the Housing Commission proposal. Docket 14-lA-90: Resolution 4-R-90 - Approval of 1990-91 CDBG Program Final Statement - Consideration of proposed Resolution 4-R-90, by which the City Council would approve the 1990-91 Community Development Block Grant Program Application to the U.S. Department of Housing &. Urban Development. Alderman Collens, ECDC Director Pamela Walker, City Manager Asprooth, Aldermen Warshaw, Chris Yonker (Coordinator of the CDBG PRogram), Aldermen Horton and Rainey discussed several allocations in the proposed ECDC budget,, including funds for the facade renovation of 1817 Church Street, funds allocated for the Emerson and Simpson Street facade renovation programs, the current balance in the loan fund, applications that would affect that balance, clarifying that the funding available for the 1817 Church Street facade had been reallocated from 1986 unspent funds. Alderman Rainey requested a memo explaining that reallocation. Alderman Brady and City Manager Asprooth discussed the mechanics of relocation and the possibility of borrowing funds from the Revolving Loan Fund. Alderman Wold questioned the statement made in Citizen Comment concerning possible demolition of 1817 Church Street. City Manager Asprooth said that had not been his understanding either. Alderman Drummer urged Council to support the recommendations made by the CDBG Committee concerning funding. He said that the allocation for housing in the budget was already $500,000 (although not to rehab); he also pointed out that during the last several years the Council had changed the direction of ECDC. He wondered why some people were questioning the need for the facade renovation program. He said it had a successful program. He also stated that taking money away from the Small Business Incubator would really impact its ability to function.. He said that the Committee had a constantly shrinking amount of dollars available to them and now Council was asking that more be cut from allocations. Alderman Juliar, Chair of the CDBG Committee, confirmed that it was not his understanding that the 1817 Church building was being considered for demolition. Alderman Feldman said that the issue should not be defined as giving to the minority community or taking away from it. No agency has a right to any funds. The community that ECDC was established to serve has a right to the funds. Whether the funds go to ECDC or to housing rehab, they still go to the same community. He stated his support for the facade program, but said he differed in how it was executed. He said he questioned why the City needed to fix leaky windows or tuckpoint a facade on a commercial or profit -making enterprise. He also questioned whether some of the facades could be deferred and wondered whether it was necessary to deal with certain buildings now. Ile suggested that there needed to be refinement to the program and that choices needed to be made and parameters set for the way in which we choose to spend our money. Ile suggested that facades belonging to commercial institutions should be rehabbed by the owner obtaining a bank loan. Alderman Collens asked several questions about the 1817 Church Street facade. City Manager Asprooth clarified that the funds designated for this rehabilitation were reallocated from the 1986 Grant Year and the reallocation was approved in August of 1989. Mr. Yonker said that the scope of the work included tuckpointing, new windows, doors, lighting and an awning. He also clarified for Alderman Collens the major problems within the building that needed attention. (At this time, Alderman Esch was present.) Alderman Collens suggested that perhaps the major structural items could be done immediately and the cosmetic work be postponed, thus saving some dollars that might be applied toward housing rehab. 1 I- F� 19Z 33 -3- January 27, 1990 Alderman Rainey took exception to the Housing Commission's letter which suggested that $128,000 could be found in the Community Development Budget for housing rehab. She said that there was already a $279,469 committed to housing in that budget. She suggested that there were other places where money could be found to fund the rehab program. She questioned the suggestion to borrow from Park Improvements, saying that that would be taking money from neighborhood revitalization. She said you need more than decent housing to make decent neighborhoods. She questioned the suggestion to use of the float, saying that it is dangerous to include funds that has to be repaid. She said she didn't want agencies relying on the CD budget to be stripped of any further funds this year, but suggested that certain agencies needed to straighten out their act or their show was over. Council has to take the responsibility for scrutinizing several of these groups this year. However, she said you can't destroy a program at the 23rd hour and suggested that some of the money in the Parking Fund should be used for housing rehab. She suggested taking $27,000 from the facade rehab program, $250,000 from the Parking Fund, and adding in the program income. That combination would give the housing rehab program $451,000 to work with in the next budget year. Alderman Warshaw agreed with Alderman Rainey that you can't destroy a program on a moment's notice and suggested that failure to fund the housing rehab program at a high level would have exactly that impact. She said that the City finally has a program that works and the community is coming in to apply for loans. If the City cuts off the funding and people can't get money, they will allow their housing to deteriorate. She questioned how we could enforce our Codes and questioned whether the City could allow people to live in dangerous or unsanitary conditions. Alderman Paden agreed with Alderman Feldman that housing is more important than facades and she stressed that jobs are more important than housing. She suggested that the City Council has changed ECDC's mission over the last several years and appears to be working toward the elimination of that agency. She said that if the facades look better that is because ECDC is doing its job and that they need more than $50,000 for facade rehab. She suggested that the money come out of the Parking Fund. Alderman Brady said she had put together a suggestion for funding the Housing Rehab Program. She said she felt most of the money should come out of the CD Program. Alderman Brady moved to use $100,000 of interest from the Special Housing Fund; to use the $27,800 allocated for the facade improvement at 1817 Church Street and place that renovation in the Capital Improvements Plan; to use $30,000 in interest income that ECDC gets from former rehab loans; taking $30.000 out of the City_ Facade Program; and taking $40,000 out of other than CD Funds. Seconded by Alderman Davis. Alderman Morton said that Alderman Paden had said much of what she was going to say. She pleaded with the City Council not to take money from the 1817 Church Street Facade Program, saying that the appearance of the building was bad for business. She said that she opposed taking money from ECDC under any circumstances. In response to a question from Alderman Morton about the City Facade Program, City Manager Asprooth replied that the City Facade Program had a balance of $163,000, $45,000 of which had been reserved for projects pending or approved but not. completed, leaving $118,000 available for facade improvement. City Manager Asprooth and Alderman Morton also discussed the ECDC Facade Program, referring to Budget Memo #19. Pamela Walker clarified that the figures in the memo do not reflect the outstanding invoices for projects just completed. Alderman Juliar explained how the ECDC Housing Rehab Program had been consolidated with the City Housing Rehab Program to save administrative expenses. He said ECDC was still doing the marketing and making recommendations. He said he felt the program was functioning very well. He said ECDC was getting to a point where they would not be an effective organization if the Council cut their funding any further. Alderman Drummer agreed with Alderman Juliar and several previous speakers. He also said that he felt strongly that the 1817 facade renovation should be considered part of the Capital Improvements Program since the building is a City building. He said that one third of the CD Budget was already going to housing and if money was taken from other CD programs it would be very disrupti.ve.to those programs. He said he could not support Alderman Brady's amendment to the program because it took too much money from ECDC. 75Z M W I -4- January 27, 1990 Alderman Rainey said she would like to amend Alderman Brady's motion, allowing ECDC to keep their $30,000 and the City Facade,Program to keep their $30,000; instead she said she would like to take $110,000 (that had been placed in the Parking Fund), from the sale of land at 1800 Sherman. Alderman Collens did not agree with Alderman Rainey's amendment, saying it was a separate question. Alderman Collens and City Manager Asprooth discussed several alternative ways of funding housing rehab. Alderman Brady amended her motion to create a dousing Rehab Fund using money from the following sources: $71,855, as recommended by the Committee for housing rehab; $27,800 currently allocated to the Facade Program for 1817 Church Street (and placing, that facade renovation in the Capital Improvements Budget); $100,000 from special housing fund interest; $30.000 from the City Facade Program; $20,000 from the Neighbors at Work Program; and taking $50.000 from funding outside the CD Budget. Seconded by Alderman Davis. Discussion of Alderman Brady's amendment by Alderman Davis, City Manager Asprooth, Aldermen Warshaw, Wold and Rainey concerning the following: it is appropriate to put the $27,800 in the Capital Improvement Program; discussing the balances in the various ECDC Facade Programs; discussing the rationale for both programs, which is to create an incentive for economic re -investment in an area; supporting the amendment in either form, because everyone needs to compromise a little; reluctantly agreeing to take some funding from the Neighbors at Work Program; suggesting that the Neighbors at Work Program had already been cut substantially before the budget was put together; suggesting it was not fiscally responsible to make further cuts in the Neighbors at Work Program; suggesting that the quarterly reports did not adequately explain the scope of the work in the Neighbors at Work Painting and Minor Repairs Program. Alderman Rainey requested staff to prepare comments about what a $20,000 in reduction would do to the Neighbors at Work Program. At this time Mayor Barr called a five minute recess. Alderman Brady moved to amend her motion to fund the Housing Rehab Program: allocate $120.000 from the Special Housing Fund; move $10,000 from the ECDC Facade Program, move $10.000 from Neighbors at Work Program and move $10,000 from the City Facade Program, and add them to the funds already allocated to the Rehab Program. Alderman Morton expressed her disapproval about the compromise and said that she could not support taking $10,000 each from ECDC or Neighbors at Work. Pat Vance, Director of Neighbors at Work said the allocation was really a reduction of $57,000 because the CD Committee had originally reduced Neighbors at Work request for funding by $47,000 and another $10,000 reduction would have a significant impact on the program. Aldermen Feldman, Paden, Washington, Davis, Juliar, City Manager Asprooth, Aldermen Rudy and Drummer discussed their views on how Alderman Brady's latest amendments would affect various programs within the CD Budget. Alderman Brady once again adjusted her motion to fund the Housing Rehab Program by - the following method: to use $71.855 already allocated from CD Funds; $27,800 from the 1817 Church Street Facade Improvement Program (transferring that to the Capital Improvement Program); $120,000 from Special Housing Fund interest and $50.000 from funding outside the CD program. City Manager Asprooth suggested that her motion should be amended to include the program income assumption that is included in the CD Budget. Alderman Brady amended her motion to change $120,000 to $125,000. City Manager Asprooth clarified that he would recommend that the 1817 Church Street Facade Improvement be funded by CD funds in the Capital Improvement Program. In response to a question from Alderman Morton, City Manager Asprooth said there were no unprogrammed non -CD funds available in the Capital Improvement Program to reimburse ECDC for roof repairs that had been made with CD Funds. -5- January 27, 1990 d c 1 1 Alderman Esch said that the 4th Ward supported Alderman Brady's amendment and she called the question. Seconded by Alderman Paden. Motion carried. No nays. Vote on Alderman Brady's amended motion carried. Alderman Collens moved that the money allocated for the Planning position in the CDBG Budget, be moved to fund a Fair Housing position. Seconded by Alderman Wold. Discussion by Aldermen Feldman, Brady, Collens and Rainey concerning the following: supporting the retention of the CD Planning position because of the help that a staff can give funded agencies; suggesting that it was not staff job to work with the agencies, but rather a Boards and Commissions job; said we've already let the agencies know that there will be extra attention paid to them, but extra attention doesn't always mean more people; we should respect the City Manager's recommendations. In response to a question from Alderman Rainey, City Manager Asprooth clarified that the position proposed to be eliminated was that of a Planning Aide and that position was currently filled. He said that the position that was vacant was that of a Planner, but that if the position was eliminated, things could be worked out to avoid a layoff. Alderman Rainey stressed that this was not a vacant position and said that a current CD staff member currently devotes 85% of his/her time to one of the organizations. She suggested this would have to stop if this position was eliminated, because the staff would be unable to handle the work load required by the CD program. She urged Council not to cut the staff position because it is needed. She suggested that funds should be allocated to a Fair Housing or a Property Maintenance position from another fund. Vote on Alderman Collens amendment. Motion failed. Roll call vote to approve the Community Development Block Grant as amended. Voting aye - Davis, Brady, Esch, Korshak, Morton, Washington, Wold, Wollin, Collens, Rainey, Lanyon, Feldman, Rudy, Juliar, Paden, Drummer. Voting nay - Warshaw. Motion carried. (16-1) After a brief discussion among Alderman Wold, City Manager Asprooth, Mayor Barr and Alderman Collens, Alderman Wold moved to continue the meeting until 12:30 pm and to schedule an additional Saturday meeting if needed. Seconded by Alderman Morton. Motion carried. No nays. Alderman Rudy moved that Council resolve the purpose of further discussion of the Alderman Brady. Motion carried. No nays. The Council so met at 11:53 am. itself into a Committee of the Whole for Droposed 1990-91 Budget. Seconded by City Manager Asprooth called Council's attention to the Budget Memoranda that had been passed out since the Council's last meeting —Memoranda #2, #4, #6-19. City Manager Asprooth gave an overview of the Department of Health and Human Services Budget including the Department of Public Health, the Commission on Aging, the Mental Health Board, the Emergency Assistance Program, the Youth Advocacy Program and community purchased services. He said that the staffing of 51.2 FTEs was up slightly because of the addition of three youth advocates as City -employees rather than as contractual employees. He said that another change was the inclusion of an Emergency Services & Disaster Grant (which the City has received before) in the budget for emergency assistance. He said that also included in the budget was the proposed increase in the Township Grant to Emergency Assistance. He said that he would continue to monitor staff needs in those programs. He then turned to a brief review of the Sewer Fund and said that the City would be expending $3.6 million for long-term sewer improvements which would show up as a 44% increase in expenditures, but would not result in a rate or tax increase. Alderman Brady moved to add $11,954 back into the budget to support outdoor ice rinks. Seconded by Alderman Wold. Motion carried. No nays. 95Z �b -6- January 27, 1990 Alderman Korshak called Council's attention to Budget Memo #10 discussing the Police Pension Fund. He expressed his continued concern about the City- underfunding the Pension Fund and suggested that we could not leave the burden of fully funding the Pension Fund to successive generations or Councils. He suggested that the more money that the Fund had, the more income it would generate. City Manager Asprooth said that while the dollar amount of unfunded liability had increased over the last five years, so had the dollar amount of funded assets. He pointed out that none of the figures had been discounted for inflation. He said it was important to note that the percentage of liability that is funded had grown from 34% to 46% and that the law measures the percentage funded. Alderman Korshak pointed out that, while it had been hoped the fund would grow to 15.28; it had only grown to 13.46. He said that sometime during the budget process he would propose that a major infusion of funds be added to the Police Pension Fund. Alderman Esch questioned whether the City Council was ever going to consider the City Manager's proposal to pursue an appeal upholding the Fire Bargaining Unit Personnel. City Manager Asprooth pointed out that he had sent a memorandum to the Council on this matter and felt that it was more appropriate for a Closed Session discussion. Alderman Collens and City Manager Asprooth discussed the status of Police Pension Fund litigation against the City and the City Manager clarified that the litigation concerned one levy from 1986 or 1987. Alderman Collens pointed out that that issue was not unrelated to what they were discussing. Alderman Korshak pointed out that no matter what the court decides, it has no bearing on our obligation to fully fund the Pension Fund by 2020. Alderman Lanyon thanked the City Manager for the budget memo concerning emergency medical service collection procedures and expressed his concern that there was a large amount of revenue from various areas, in the uncollected category. He asked for a description of these sources, collection rates in each area, the method used, and what enforcement authority we have and what attempts have been made to improve collections. He also asked how often the City utilizes collection services and in what areas. Alderman Rudy requested a memorandum concerning the projections that the City has made in order to comply with the law that the Police Pension Fund be fully funded by 2020. City Manager Asprooth said he could provide the theory and projections made developed in the Budget Policy by the Budget Policy Committee.. Alderman Rainey moved that $300,000 be transferred from the Parking Fund to the General Fund from the revenues generated by the sale of 1800 Sherman Avenue and that the tax levy be reduced by $200,000. Seconded by Alderman Feldman. Alderman Rainey explained that this would provide for $300,000 of expenditures, $200,000 of which are already in the proposed budget. Therefore it would allow for a reduction in the levy of $200,000. She explained that she would like to see the money used in the following way: $100,000 to pay for all of the one-time expenditures listed in Budget Memorandum #1; $30,000 for the Commonwealth Edison Consultant's Study; $5,000 for the Arts Council (of which $2,000 would be allocated to printing and $3,000 of which would be allocated to the Black Artists Agreement); $50,000 to fund the Housing Rehab Program from "other sources"; and $11,950 to cover the cost of ice rinks; using $100,000 to replace $100,000 in the General Contingency Fund, thereby reducing the amount needed to be levied by $100,000. These changes would result in a total expenditure of $296,954. Alderman Wold requested that this proposal in the form of a memo. Alderman Wold moved that the Council convene into a regular meeting. Seconded by Alderman,Morton. Motion carried. No nays. Mayor Barr reminded the Council that there should have been a public declaration of conflict of interest that any Alderman might have related to the Community Development Block Grant Budget. 999 -7- January 27, 1990 311 Alderman Morton announced that she was voting on the entire CDBG Budget except for that related to Family Counseling, because she is a board member of that group. Alderman Korshak indicated he was voting on the entire CDBG Budget except that portion related to the YWCA because his wife is a board member of that group. Alderman Esch announced that she would not be voting on the portion of the CDBG Budget related to the YWCA, because she is a board member of that group. Mayor Barr asked for a re -vote on the motion to approve the Community Development Block Grant Budget. Motion carried. There being no further business, the Council adjourned at 12:31 pm. KIRSTEN F. DAVIS CITY CLERK 1 1 1 1 I M