Music Thank you. Thank you. Thank you. Thank you. Thank you. ¶¶ . ¶¶ ¶¶ Thank you. ¶¶ Thank you. Thank you. Just a second, if people could start making their way to the city. of their seats. All right, thank you. We'll call the September meeting of the General Government and Planning Committee to order. The first item on our agenda is approval of the August 15th committee summary. Could the Chair entertain a motion? Yes, it's approved. Second. Got a motion to second. Is there any discussion on the motion? All those in favor, please say aye. Aye. Any opposed? Thank you, the committee summary is approved. Council members, we're gonna move our agenda items around a little bit. We've got a packed agenda. I think we can get through it all, but there's some things that have some precedent and then there's also a little bit of courtesy. I want to thank the History Museum for being here and bringing such a good turnout. They got their whole board here. And so let's not make them wait for our entire, all of our business. We're going to move them to the top of the agenda. And I think Council Member Plowman has a few remarks. Council Member. Thank you, Chair, and welcome, Lexington History Museum Board. I mean, I'm so excited where you are, where the museum is. With the sense, actually, Council Member Lamb and I kind of together, teamworked on this over the years just to make sure it became a reality that our history museum was back. So I just wanted to say that congrats on everything. The opening was great. The location, if you haven't been there, stop in. And I'm sure we'll hear more about it in the presentation. Thanks for being here. Proceed, please. Good afternoon. I'm Tim Burcham. I'm the consultant to the Lexington History Museum, and we are excited to be here to give you an update on the status of the museum. And wow, what a difference a year makes. We're excited to share the progress that we have made since we appeared before you last year. It's been a long road to get to where we are today from our creation in 1998 by former mayor pam miller to our opening in the old courthouse in 2003 to our permanent closure in the courthouse in 2012 to the temporary relocation to the rankin house in 2020 to the approval of our new strategic plan 21 to 25 and then finally in 2022 your approval of our funding request and thank you very much for that. We've come a long way in one year. Because of your generous support, the Lexington History Museum has regained its footing and is laser focused on reestablishing its physical presence as a major community asset and tourist attraction and is energized by our reimagined future as the recognized and respected leader on Lexington's history. We have a new look and online presence. So here are a few examples of how we're bringing the museum back to life. We have a dynamic and attractive website, the reintroduction of our newsletter, The Bluegrass Historian, and constant and consistent engagement with the community through our social media channels. We have a new fundraising plan that involves a variety of strategies and opportunities for donors to support the museum through our direct mail program, a regular schedule of events such as our LexTalk series, a new online giving portal on our website, special fundraising appeals on social media, and the successful submission of grant proposals to local and state funding sources such as Keeneland, Visit Lex, the Kentucky Humanities Council, and the Kentucky Colonels. With these fundraising efforts, we are slowly rebuilding our philanthropic base of support from contributions, organizations, individuals, and foundations, in addition, of course, to the city funding. It will take time to bring our donors back after practically being invisible to the public for the past 10 years. We have a new corporate sponsorship program that offers businesses a variety of ways to underwrite key parts of the museum from our facility to our exhibits, our newsletters, our LexTalk series, and WikiLeaks, our online history site. To support our fundraising efforts, we have established a new donor recognition program for annual donors and reintroduced the Thomas D. Clark Society to attract and recognize donors who wish to help us build an endowment. And we've installed a new robust fundraising software program that will enable us to maximize our fundraising efforts more effectively and efficiently. And most excitedly, your funding enabled us to partner with the Bluegrass Trust for Historic Preservation to lease the ground level of the Thomas Hunt Morkan House on North Broadway as the new home of the Lexington History Museum. And if that's not exciting enough, your support also enabled us to hire a new full-time executive director, Dr. Amanda Higgins. After a nationwide search, Mandy emerged as the top candidate with a strong educational background in history, including her doctorate from UK. With seven years of professional experience at the Kentucky Historical Society, she brings the type of program management and development experience that we need to become the state of art, the art museum we envision and that Lexington deserves. She joined us in October of last year and hit the ground running to accelerate our evolution and growth. So let me now turn the presentation over to Dr. Higgins. Thank you, Tim, and thank you, council members, for your support and warm welcome home to Lexington. As Tim said, we've been busy. Because of your support, we hired Katrina Dixon as our new collections and exhibit manager, bringing two full-time museum professionals into the organization. Katrina works to preserve our collections and makes them accessible to the public. Before moving to Lexington, she worked for the New York Public Library and the Center for Home Movies as an archivist and metadata manager. Why is it going? Sorry. In January, we updated bylaws and adopted new policies for the organization. Having strong governance with clear expectations allowed us to work with a blue ribbon committee of city leaders to recruit six new board members who joined us July 1st, 2023. This new class is more diverse, younger, and represents a broad cross-section of our county. Katrina, our two interns, and I have spent a lot of time this year evaluating and consolidating our collection storage. When the museum left the old courthouse, the collection was stored in three spots throughout the city, rented office space in Victorian Square, a floor of the Old Pepper Distillery Warehouse, and a closet at the Tates Creek Golf Center. The collection moved from Pepper in Victorian Square into multiple units at Prime Storage in the Adam Rankin House. Today we have full top-level inventory of the collection and our materials are all in climate controlled indoor storage. We continue to evaluate and follow museum best practices for the care of the materials in our collection with the ultimate goal of consolidating the collection into a single secure climate controlled location. In January following our strategic plan we hosted the first meeting of the Lexington History Collective. The collective made is made up of history-minded organizations in the county and meets quarterly to discuss topics relevant to our organizations and missions. We've developed for the first time a shared resource of communication and ideas for the group and continue to rely on each other for peer support and networking as well as shared opportunities for growth exhibitions and programming in the same piece of that we created the history collective with the history collective we formed the lexington history partnership council which will meet two times per year to provide strategic guidance and support of the museum partnership council members include leaders in the business non-profit government education and cultural communities in Lexington. As we evaluated the collection and built museum content, we also spent a significant amount of the year reintroducing ourselves to the city. I've had the pleasure of sharing Lexington's history with students, educators, lifelong learners, and community leaders, and I've been honored to participate in great history-related work going on throughout the city, including working with A Sense of Place, steering committee to celebrate and honor Lexington's black rural hamlets as well as future work with elect with the mayor's 250 commission. All of these things I've mentioned were fulfilling but the most exciting and emotional moments of the last year were just a few weeks ago when we welcomed more than 300 people to our phase to the phase one of the imagined reimagined museum. Having a physical presence where residents and visitors can see and experience our history is an important milestone and I'm grateful to the team, many of them here, who made it happen and the support from so many along the way. While we're proud of what we've been able to accomplish so far, we're not slowing down. In fiscal year 24, we plan to embrace digital access to collections and exhibits through an updated and searchable catalog of our collection, a digital humanities exhibit, and a revamping of our WikiLeaks platform. We will reinvigorate our volunteer program, increase registration and attendance at our LexTalk events, welcome visitors to the museum, and launch a Lexington-based history lesson plan for students, as well as increase our fundraising through non-LFUCG sources. We do all of this to ensure we are prepared for celebrating Lexington's 250th anniversary and working with all of you to offer residents and visitors the high-quality, engaging, historical experience they deserve. And we want to thank you again for your time and for moving us up on the agenda and invite you to our next Lex Talks event, which we'll be screening a documentary, Clay 1613, A Family in Black and White, at 3 p.m. on Saturday, September 30th at the museum. This event is a collaboration between Lex History and the Henry Clay Memorial Foundation, a direct outgrowth of our history collective initiative. Thank you all. We'll take questions. Thank you. That's great information and very fast. Appreciate it. Council members, are there any questions or comments, please log in. Council member Lynch. Thank you, Chair. I just have one question. Your Lexington History Collective, you said it's a group of many organizations that are going to come and connect to bring diverse voices and inclusiveness to the work that you all are doing. And it's looking at the list, and I don't know, I'm not familiar with all the list of organizations, but What demographics will that group of organizations cover and how are they going to be inclusive? Do they represent everybody in Lexington, all demographics, things like that? Yes, we're going to attempt to do that. Our first meeting will be next week of the collective to, or the partnership. The collective is the history-minded groups throughout the city. so that includes anyone who's interested or does history-minded work from the library through African Cemetery No. 2, so racial diversity, class diversity, gender diversity, the Faulkner Morgan Archive is involved. Okay, great. That's what I wanted to get at because I don't know all the groups, as I said. I'm not familiar with all of them, but I want to make sure the Hispanic community, the Asian American community, BIPOC communities, LGBT communities are also included in this group. Their voices are included in this group so they can provide voice. Yes, ma'am. Awesome, thank you. Thank you for what you're doing. Congratulations. Thank you. Councilman Rishihan. Thank you, Chair. I just wanted to say that I was able to attend the afternoon at the museum event right before the grand opening and I really enjoyed the space. I think I learned a lot walking around, it looks lovely. And as an educator, I appreciate an educational space. And there was one section devoted to IBM, and one of the neighborhoods in my district, Idle Hour, has a history of being developed for IBM workers. So it was kind of cool to see some of the connections of not only like the history of Lexington, but some of the businesses that we've had come through as well. So thank you for all of your work, and thank you to the board for all of the hard work that you have put in as well. Thank you, council member. Before I make a couple remarks, Vice Chair Plumman, was there anything else you wanted to add? This has been a pet project for you and hard work. I'm just so glad you're here. It's been a journey, but look at where it is. So, again, congratulations, I'm sure, from all of us. Thank you, and thank you all for the presentation and for all the hard work in getting the History Museum on the right track and really where it ought to be. Some people may not know I have a long history with the History Museum. personally with many of you out there. Jim Dickinson, at one time I volunteered as the general counsel for the History Museum. I actually reviewed and negotiated the lease to put the exhibit in the Tate's Creek Golf Course warehouse. And so a long time working with that and then just you know personally as you Councilmember Lamb, we served together for so long. I know this It's been a passionate item for you. I'm glad you're out there. Amelia and I went to high school together, model in Richmond. Kelly, we've worked at the History Museum together, but Kelly's husband, Jerry, married Langdon and I at First Christian Church, Winchester. And then Mandy is probably the reason that I ended up with a pretty good GPA with the UK History Department because I sit next to her in every class. So you all are great friends, and I'm glad that this is doing so well. I look forward to all that's going to happen. Thank you, Preston. All right. You all have the invitation but not the obligation to stay for the rest of this. Next item on the agenda are our council rules and procedures where we left off from our September meeting. Council Member Baxter, take it away. Thank you, Chair. Just to begin, I have a few housekeeping notes that I want to bring up. My first motion is going to be to remove the seating chart from our current discussion. So that would be section 1.104. So we will be removing that entire section from council rules as they stand now and discussing them at a later date. So moved. There's a motion in a second. Is there any discussion on the motion? Hearing none, all those in favor, please say aye. Aye. Any opposed? Ayes have it. Council Member. Thank you, Chair. My second motion would be to remove the social media best practices from our discussion as well. And this is just based on recommendations from our law department. There are currently some Supreme Court cases being heard, and I don't feel like we are best equipped to make decisions on this matter currently. So moved on removing that. Second. So motion is second. Is there any discussion on the motion? Hearing none, all those in favor, please say aye. Aye. Any opposed? Ayes have it. Council Member, please. Okay, and finally, I will make the motion to approve the council rules as a whole as presented originally, and then we can entertain any amendments. So moved. So the motion on the floor is to accept, as proposed from the subcommittee, the draft in front of us with of course the amendments that were just recently made to start this discussion. There's a motion of second on the floor. Is there discussion on the motion? Councilmember Sheehan. I want to first just thank the committee that worked on this. I think there are there's a lot of good work in here and I appreciate the revisions. I do have a couple amendments to suggest that I would like to go through. So I will give the section numbers. The first one is under section 1.201. This is the council administrator section. I would like to make the amendment to add an item O underneath the section of the responsibilities for the Council Administrator to also include send meeting notices? So moved. There's a motion on the floor to add send meeting notices as subsection O under section 1.201. Is there any discussion on the motion? Council Member Reynolds. Thank you. I just want to clarify. By notices, do you mean sending out about our official meetings when they will be? Public meeting notices. Okay. Thank you. Any other discussion? Hearing none, all those in favor, please say aye. Aye. Any opposed? That motion carries. Okay. And then on Section 2.201, if you go down in the section, there's figure number four. and at the bottom of that figure there is an arrow I don't know how the best way to say this is but it leads to nothing and so we need a bottom of that graph to say to indicate that it's a council meeting where our official votes take place so we need to finish that graphic this would be on page 21 of the document I'm not sure which page it is in our packet. So moved. Second. There's a motion and a second, and for clarity, I believe the graphic as fully complete is shown in red line on page 19. Council Member Sheehan, am I misstating that? But that was the, so then that bottom circle needs to be added to the new figure. That's what I'm making sure I'm stating for you, is that Yeah, because that one was deleted out. This graphic was deleted, but then replaced without its full. Yeah, so that bottom piece needs to be added. All right. Council Member Reynolds, did our sidebar handle your comment you're signed on for there? You still have it? Yes, I just had a question about what was supposed to be underneath. All right. Any other discussion on the motion? All those in favor, please say aye. Aye. Any opposed? All right. Council Member, please proceed. Okay, thank you. And I don't know if this is a clarifying question, but in section 3.104, this is page 21 in the document, there is a list of steps that can be taken for an agenda item at a work session. My question is, does D, when you say remove or defeat, include postpone? Because it looks like this should be an exhaustive list, and I don't see an option for postponing an item in that point. And maybe this is a parliamentarian question. as well. Postpone is not listed as an option. From a parliamentary perspective, during any of the discussions of refer to council committee, refer to administration for action, there could be a motion made to postpone, but that is not in here as part of the exhaustive list. So then I would maybe make and you can suggest language if this isn't appropriate i would make the motion to amend item d to say postpone remove or defeat so moved second we're going to add postpone to subsection d so it would read postpone remove or defeat uh there's a uh michael do you have any issue with that That works, but I got my steps in. Council Member Reynolds, do you have a question? No, that's right before. All right. Okay, and I see my time is up, so I don't see anybody else signed up. Is it okay if I just sign back up? Real quick, let's get a vote on that last. There's a motion to second. All those in favor? Aye. Any opposed? Thank you. That carries. And Council Member Sheehan, please proceed. Actually, three more. So in our discussions of the diversity, equity, and inclusion statement and some of our other documents, we had elected to not use the word citizen in our documents. And citizen is used a few times throughout this document. Some of those are in reference to Citizens Advocate Office, which that title is in our charter. So I don't think that can change without a charter change. But there are a few other places in the document where citizen or citizens is used. So we had elected to use the word resident prior. So I make the motion to change the word citizen to residence throughout the document. Second. This motion is second. Any discussion on the item? All those in favor, please say aye. Aye. Any opposed? Thank you. That carries. Councilmember, the floor is still yours. Okay. Then there are two sections towards the end of the document on page 49. I'll start with the bottom one because it's easier. So under D.401 brand standards, there's a sentence in it that says the full branding guide can be found here. And I assume that that's intended to be a link. But because this could be a printed document, I would suggest, I would make the motion to amend the language to say the full branding guide can be found in our public information office. So moved. Second. There's a motion to second. Let's change the language in the state that was state the section there again, council member. It's D401. It's the very last section. The brand standard section. Looking in the packet, it's on page 52. And the sentence says the full branding guide can be found here. I'm asking to amend that to the full branding guide. can be found in our public information office. Any questions? Vice Mayor Wu. Thank you, Chair. Thank you, Chair. Okay, so then that information, the branding guide itself, would not live in council rules then? Is that what you're suggesting? We would reference it, but the link wouldn't be there. So it's essentially a second document, but it's not within the body of this main document. Yeah. Okay, thank you. Any other questions or comments on the motion? Hearing none, all those in favor please say aye. Aye. Any opposed? That motion carries. Okay and then the last one I think will take a little bit of discussion. It's just a little bit above that. It's section D 2.0.201. It's the taking office section. I have a concern about using the day, the first Sunday in January of the year their term begins for the office to be available. We are appointed the first Monday of the year and there is a situation where we would be appointed on the Monday but the first Jan first Sunday in January wouldn't be until the end of that week so you would be without an office for a week. So I would like to suggest and and I would like to hear your feedback on saying incoming council members will have access to their new office by the Sunday before their term begins, rather than the first Sunday in January. So moved. Do we have a second? I'll second for discussion. Motion and a second. Any discussion? Council Member Baxter. Thank you, Chair. We went round and round on this one for a while, actually. So I think it was our original thought that we wouldn't do something like that because that Sunday may actually be in December before we take office. So maybe we just align it with our first day in office. And I think that would be appropriate, too. I just don't want it to be in a situation where we have taken our oath and we are, you know, have started, but then you don't have access to it. So I will make an amendment to say incoming council members will have access to their office by the first day of their term or by the first. Help me hear people. by the first day of their term. Incoming council members will have access to their new office by the first day of their term. All right, so Council Member Baxter has amended Council Member Sheehan's motion to change that language slightly, seconded by Vice Mayor Wu. Any discussion on the amendment? All those in favor, please say aye. Aye. Any opposed? The amendment carries. So we're now to the underlying motion as amended. Is there any further discussion? All right. All those in favor, please say aye. Aye. Any opposed? That motion carries. Councilman Mishan, you're out of time, but if you have anything else. No, that's all. And I apologize for speaking out of turn when I responded to Council Member Baxter. Thank you. That's it. Thank you. All right. All right, are there any other motions related to the council rules and procedures update on the floor? All right, any discussion on the underlying motion, the approval of the revised rules and procedures as we've amended further here today? Councilmember Plowman. I just have a clarification, thank you Chair. On the seating chart that you want to send it, it's going to come off of this, but it's going to go. I think I heard it was going to go to one of our upcoming cows. Is there a date on that? Can I answer that, Chair? Please. There is, it's in October, I don't have it in front of me, but it's at our October cow, we'll discuss that. Okay, you don't have the date. I can double check. I just wanted to make sure it was going to the cow, the 12th. 12th, yeah. Thank you. Thank you, Chair. All right, now to the underlying motion. If there's no further discussion, all those in favor, please say aye. Aye. Any opposed? That motion carries. We now, Mr. Craven sent an email to all of us that we have a situation now that there is part of the report out today is the public input section of the rules that we did not, that we passed last in August, excuse me, that then would be incorporated into this what we've passed but we've got a situation that it will be record one will be reported out today and then the other will be reported out in our next meeting unless there's a motion to do so differently though I don't think that that's necessarily required but just make that point that when you hear that readout today it will only be the public input section and the other council rules will be read out in October is everybody comfortable with that do you want to move it any faster I'm good all right thank you so done with that item now we're gonna move forward and I highlighted this to our planning folks what we're gonna do miss Miller if you are ready I'd like to move you up to this point in the in the discussion because I want to make sure we get through this and you get the guidance you need and are not delayed in your work anymore. So if you're ready please take the podium and Councilmember Ellinger is there anything that you'd like to add to start this? Thank you. Good afternoon, everyone. I am here to do a presentation on the 2022 disparity study. This presentation was given in November 2022, and I realize that some of you all were not here at that time. So I thank you all for giving me that opportunity to do so today. The disparity study is a result of recommendation number two from the Economic Opportunity Subcommittee from the Racial Justice Equality Committee Report in 2020. Urban County Council approved funds to conduct a disparity study in October 2020. And through the competitive RFP process, the city of Lexington retained BBC research and consulting to conduct this disparity study. There was four other consultant firms a part of the project team. Two of them were here local in Lexington. We have EHI Consultants who was present with us today, Mr. Ed Holmes. They conducted the community engagement along with Abundant Living to collect the anecdotal evidence. holland and knight the legal consultant in davis research who conducted the surveys as a part of the study davis research attempted 3 400 surveys during the study process the purpose of the disparity study was to analyze those businesses who are ready willing and able to do business with lfucg bbc looked at participation availability and disparities and measured the disparity between utilization and availability. They also took an in-depth look at the marketplace conditions regarding the city's contracts and procurements, and to see if there was any barriers that was keeping minority and women-owned businesses from doing business with LFUCG. They also looked at qualitative and anecdotal data information, And that included 37 in-depth interviews being conducted, two virtual public meetings being held, two focus group meetings, and again, those telephone and online surveys. In addition to that, the consultant has provided us with policy and program recommendations to improve the city's enterprise program along with revamping our procurement policies and procedures. And the disparity study is also legally defensible in court. There are 11 components within the disparity study. However, for today's presentation, we are going to concentrate on the four main components, which is the utilization analysis, availability analysis, the disparity study analysis, and the recommendations. So utilization measures the true participation of minority and women owned businesses within the five year study period. BBC analyzed data that was relevant to the procurements and contracts that LFUCG issues. They looked at construction, professional services and goods and other services contracts. They looked at prime contract and subcontract data. The five-year period was July 1, 2016 through June 30, 2021. When it comes to the survey data, they looked at the primary lines of work, race, and gender in order to determine the participation of minority women-owned businesses. Overall utilization. Within that five-year study period, LFUCG, we spent $460 million in contracts. 55 million or 12% was awarded to white women owned and ethnic minority businesses. 8.3% went with white women owned businesses and a total of 3.7% went to ethnic minority businesses. Availability. The availability analysis measures the benchmark of utilization versus the participation of the percentage dollars that was spent with minority and women owned businesses. BBC, they used the custom census data approach. This particular methodology is accepted in federal court. They created a phone book using the Dun & Bradstreet marketplace data. They looked at the business's primary lines of work, their capacity if they were bonded, the number of employees that they had in their business, their vendor role if they were a prime contractor or subcontractor. They also engaged the business's level of interest in doing business with LFECG or any other public entity here in this area. Please note there was approximately 200 businesses that had no interest in doing business with LFUCG or any other public sector entity. They also looked at race and gender in order to determine the availability of minority women-owned businesses. The overall availability showed, out of the $460 million spent, 76 million, or 16.5%, was available to both white women-owned businesses and ethnic minority businesses. 11.9% was spent with white women owned businesses. And 2.3% with black American owned businesses. Utilization versus availability. This particular section here shows the difference between the businesses, they were utilized during that study period versus what was available to them in dollars. So the total amount for the ethnic minority was a little bit over 17.1 million they were utilized. However, 21.3 million was still available. For white women-owned businesses, 38 million and 54.7 million was available to white women-owned businesses. In total utilization for both ethnic minority and white women-owned businesses, 55.1 million was utilized and 76 million was available, which leaves a difference of 20.9 million still available to both minority and women-owned businesses. The disparity study analysis determines if there's a disparity between participation and overall utilization for minority and women-owned businesses. And this particular formula was used. It's dollars received divided by dollars available times 100 equals the disparity study index. 80 or less equals substantial underutilization or disparity. 80 or above equals parity, meaning there's no disparity. So overall, disparity was found for both minority women-owned businesses during that study period of 73. When you look at the individual groups, there was a disparity with white women-owned businesses at 69, black American-owned businesses at 66, and Native American-owned at 20. Contract size. BBC also analyzed the city's contract data based on the size of the particular contract. For large contracts, those contracts, a million or more in construction, $500,000 or more for professional services and goods and other services contracts. For small contracts, it's a million dollars or less in construction, 500,000 or less for professional services and goods and other services contracts. When you look at the large contracts, all individual business groups shows a disparity with the exception of Asian American owned businesses with an index of 140 and Native American owned businesses with an index of 100. For the small contracts, all business groups showed a substantial disparity with the exception of Asian American owned businesses with the index of 124 and black American owned businesses with 102. BBC also analyzed the contract data based on contractors being prime contractors or subcontractors. For prime contracts, all business groups showed a substantial disparity with the exception of Asian American owned businesses. For subcontracts, only Native American owned businesses showed a substantial disparity of 53. Minority and women owned businesses are expected to receive subcontracting dollars because the enterprise program, the outreach that I do through the program encourages prime contractors to meet or exceed the 10% minority and women participation goal that we have in place. BBC also analyzed the data by industry. That includes construction, professional services, goods and other services contracts that we procure. And for construction, both minority and women owned businesses together showed a substantial disparity with the index of 69 for goods and other services, but not for professional services. Also for construction, the individual groups of white women owned, black American owned, and a Native American owned showed substantial disparity. When you also look at goods and other services, there was substantial disparity showed amongst those groups as well. White woman-owned businesses, Asian American-owned, Black American-owned, Hispanic American-owned, and Native American-owned, they all showed substantial disparities. So in order to remedy the disparities found, BBC, they have recommended the following recommendations. recommendations and they break them down into different categories. The categories on my left are race and gender neutral measures which means that all small businesses can participate regardless of their minority and women business status. These include prompt payment. During the study period there were some subcontractors and I received calls myself saying that the subcontractors they're not not getting paid on time. So we may want to include language for subcontractors to be paid on time. In the diverse business management system where I track all the spend dollars with minority and women owned businesses, there is a prompt payment feature in that system now where I can see the contractors being paid on time. Advertising and outreach is the bulk of the enterprise program currently. I send advance notices to the minority women owned businesses when I see the upcoming opportunities. I share the participation goals at pre-bid and pre-proposal conferences as well. For those prime contractors that meet those goals. In addition to that, BBC provided us with a database of almost 500 businesses where we can do additional outreach. Those businesses who are ready and willing and able to do business with us. Subcontracting minimums includes consider allocating a certain percentage amount in our bid or proposal documents for prime contractors to sub out to subcontractors. Also consider unbundling some of the large contracts. Myself and my director, we are currently looking at some of the larger projects that are coming up in the near future to see how we can break those down into smaller bid packages for minority and women-owned businesses to bid on. Small business set-asides is a particular program where an entity can set aside certain contract amounts or dollar amounts that are reserved for small businesses to bid on as primes. Supported services includes maybe having a bonding assistance program. We currently have one, but we may want to expand it. Also hire staff to support the program. Also have a partnership in place with the Kentucky Apex Accelerator. They do all my training event and webinar registration currently, and they also do outreach throughout the state of Kentucky with those particular events and webinars that the program currently has. And also data collection and monitoring. They suggest that we collect more than just data on minority and women-owned subcontractors, but collect data on all subcontractors that are on LFUCG's procurement, and I do track that in the diverse business management software system. So the column on my right are the race and gender conscious measures. These particular measures are specifically based on race. They suggest that we set contract goals, whether it be an overall contracting goal, or to set a contract goal based on the contract, on a contract by contract basis. Also look at establishing price and evaluation preferences, including additional points for evaluation preferences in our bids and proposal documents when it comes to prime contractors responses. So these particular recommendations will require policy or procedure change, maybe changes in the resolution that governs the enterprise program, that's resolution 484-2017, or ordinances being created for the program. There are funds in the procurement's budget to embark on post-implementation to start implementing some of these recommendations. Thank you, Ms. Miller. We're going to have questions next. Council Member Ellinger. Thank you, Chair. Thank you, Ms. Miller. That was going to be, where do we go from here? We've been dealing with this for quite a while now, and I think one of the reasons was, and it was said in there because of legal restraints, if we're going to set some kind of guidelines that we have to have some kind of empirical data to prove that we set that. And I guess I see Mr. Todd back there, Mr. Slayton, could you tell us where we stand on this and going forward how we can address this? So the next step in this process is to start post implementation of the recommendations that BBC made. So there are funds in the budget to start post implementation. We have met with BBC in order to start implementing and piloting some of those measures. And then from there, we'll come back to this committee asking for approval for any of those recommendations that we want to put in place. So you're going to come back to us with the recommendations then, what standards we're going to use going forward, guidelines? Yeah, I mean, really what we would like some direction on is, you know, we want some guidance or some, I guess, some approval to hire our consultant to help with these implementation things. There's the race and gender neutral things are much easier to attack, but we still need their help with, like, the bonding assistance program, maybe possibly dividing up larger contracts. I think if you jumped right into the race-conscious, gender-conscious recommendations, given the Supreme Court action with affirmative action, all that, I think our money is better spent on doing those things that we know we can implement without getting pushed back and being challenged legally on. That's my take on it. And what would that be? And like unbundling larger contracts, providing a, we're looking into a bonding assistance program. There's one of the stumbling blocks to doing business with a government entity, and this is true whether you're looking at the city of Lexington or Louisville or the state. Every company has to provide something called a bid bond, which is typically 5% of their bid price. And they have to provide that when they submit a bid. It's expensive. It's probably an antiquated requirement, but it's still there and it's in the model procurement code, so it's not going to change. We do have the ability to waive that requirement, and we can do that now for minority-owned businesses. The second phase of that is the payment performance bond, which is required on any project over $50,000. That's not going to change. That's an insurance policy that we are obligated to receive when we do a big construction project. And that can be the big stumbling block for a minority-owned business because it's kind of like getting a mortgage or a car loan. It's based on your ability to repay. So companies that have a lot of experience, larger companies, they're going to get a better rate than a newer company or smaller-owned businesses, which are typically going to be minority or women-owned businesses. So we would need some help from BBC to figure out how we could provide assistance on that payment and performance bond. And it might be something where we would use some of our funding or some of our credit power to get people a better rate on their payment and performance bond. So that's just one example of what we would like to do. Well, I'll listen to one of the other council members, but I'm sure there will be probably some motions coming out here moving forward. So thank you all. Thank you. Thank you, council member. Vice Mayor Wu. Thank you, chair. Thank you for that presentation. And if I remember correctly, I think I caught this presentation late last year. It might have been right after the election. I don't remember the exact date. So in the intervening eight or nine months, what have you all been doing to move forward either some of the recommendations? And I guess that speaks to my other question of how many of those recommendations, particularly the race and gender neutral ones, can be implemented without any sort of legislative action from this body? And what all have you all been doing in that sense? And then what specifically would we need to do from a legislative level changing resolutions or ordinances to help implement some of these recommendations? Okay. So there are seven race and gender neutral measures listed. Out of those seven, we currently already do four. We already have the prompt payment. We have that prompt payment feature in the diverse business management system. I can see when the subcontractors are getting paid and if they're getting paid on time. Advertising and outreach, that's a huge component of the enterprise program with what I currently do. unbundling large contracts. Myself and my director, we have looked at upcoming construction projects that are coming out in the near future to see how we can break those down into smaller bids so that the minority women-owned businesses, they can bid on those as prime contractors. In addition to that, the data collection and monitoring, I am collecting all subcontractor data, whether they are minority woman-owned, whether they are certified or non-certified or not. And we have looked at other entity programs as far as a small business set-aside program that is going to take more discussion with a consultant firm when we embark on post-implementation and some guidance from our law department as far as bringing that program together and looking at some more supportive services, such as creating or expanding the current bonding assistance program that the city has. So those other items that haven't sort of gotten started being worked on yet, and you're talking about bringing us sort of a more concrete set of recommendations where we can take action to help implement, correct? What's the timeline on that? When would we expect our report back? Well, we have to engage with BBC and consulting and get started on the recommendations. We haven't started actually doing the work yet. Okay. Was that waiting on some sort of approval from us or anybody else to begin this? After this presentation, yes. Okay. To move forward. So what happened after the last time this presentation was made, the end of last year then? We engage with conversations with BBC to talk about post-implementation and how they can help us. So we do have a draft post-implementation plan in place. So once we move forward, we can get started on those recommendations. Okay. So are you looking for today something from this body to say go? Yes. Okay. Yes, I'm ready to move forward. Okay. Well, short of a motion, I'm saying go. Thank you. Thank you, Chair. Sorry, Council Members. Council Member Reynolds. Thank you, Chair, and thank you, Ms. Miller, for the presentation. I know we've been waiting for it for a while, and I really appreciate it, and I'm looking forward to hopefully being able to make some changes. To me, this isn't the best picture of what's happening. I mean, what's happening isn't obviously where we want to be. We want to have a more diverse set of people that we're working with as a city. Can you remind folks why are white women considered a minority? I wouldn't consider myself a minority, and a lot of times when we're looking at demographics, white women are not considered a minority. So why, when we look at this, are they? Females are considered a minority. When it comes to ethnic minority, they are not. They do not belong to the ethnic minority class unless they are black American-owned females, such as myself. But women are viewed as a minority in the society. Because women over time have not had the same opportunities as men, correct? That's correct. Okay. So when we look at our overall availability and the money that we've spent and where it's gone, the majority is to white women, overwhelmingly. And so, to me, while we are considered a business minority, I think that, I guess I'm a little discouraged by these numbers and think that we have a very long way to go when still the majority of our minority is white. So anyway, I just wanted to say that and that I hope that we'll focus on having a representation of what our city looks like, being represented in who we're contracting with and who we're working with as a city. Those percentages, in my opinion, should match up a lot more. So, and then I did want to say, I remember we had talked about before we did the disparity study in looking at income disparity. We had talked about getting some information and demographics of our employees, not the people that we contract with, but actual demographic information pulling that on our employees, city employees. Do we have that information at all? I wouldn't have that information. I see. CAO Hamilton. Yes, we have that, and we're ready to present, and hopefully we'll be on the October agenda. Okay, great. I look forward to seeing that. Thank you very much. Thank you. That's all I have. Thank you. Thank you. Thank you. Council Member Lynch. Thank you, Chair. And thank you so much, Ms. Miller, for your presentation. Based on your answer to a prior question that Vice Mayor Wu asked, it looks like the majority of the race-gender neutral measures are being done. So from my perspective, that does leave room for addressing the race-gender conscious measures. I don't want those to be discounted and left on the table, especially given the data. So, Mr. Slatton, I think that we need to make room for that work because it's very blatantly obvious that we have to put the work in there. So since we're already doing the majority of the race gender neutral measures and in working with the consultants on what those recommendations will look like, I think we need to add and keep on the table the race gender conscious measures as well. I don't want to, if we ignore those, we just wasted our money for this whole study, in my opinion. So those need to remain a priority. Thank you, Chair. Thank you. Council Member Svigny. Thank you, Chair, for recognizing me, even though I'm not on this committee. Thank you for your presentation. I just have a few questions. I think you basically had about $460 million worth of contract projects or something like that in your study. I'm curious because I did commercial construction work for a little while as well. What's the skew on those? Because I'm sure we have a lot of road projects that are big. We have a lot of sanitary storm sewer projects that are really big, and we probably have construction projects. My guess is it would be interesting to know where the minority partners are playing, like, and if they're playing at the bigger level. And I don't necessarily, so I'm kind of curious what the SKU is to begin with, and if you looked at that. I can ask the consultancy. Yeah. I know they looked at our construction projects, if they were construction related, our sewer construction, our road projects. But as far as giving us a specific number for the minority-owned businesses, I would have to ask them for that. We just have the overall number. Yeah. And my thinking is, like I know on road projects, for instance, like ATS does most all of our road projects, right? So there's like a whole group of things that just get struck out because of the nature of the beast. And I don't know if the same thing exists. I know it seems like we always use the same projects on sanitary and storm sewer. they're the same ones keep coming up so I just want to yeah I just want to I just want to be aware of that situation the the other thing you talked about is on the performance bonds I do think that's the biggest challenge I mean that if you having to do a performance bond it is very expensive and it's basically if you don't have if you're not a big enough scale that you've actually have enough cash in the bank, you can't get a performance bond. So I do think there's also an angle for helping people with the performance bond requirement, somehow working with some sort of another insurance vehicle that we may be able to provide as some sort of mechanism. It's just if you're trying to get more people in the pool to respond to a project that might be just a stretch of a reach for them. That's it. Thank you. Thank you. Council Member James Brown. Thank you, Chair, and thank you, Ms. Miller, for the presentation and your work on this. You might have mentioned it, but can you refresh my memory? How much money do we allocate in this year's budget to implement these recommendations? $120,000. Okay, so how much do you think the consultant, I mean, I know you probably haven't drafted the RFP, but just thinking about the scope of work and what we would be asking them to do, is it something that, is it going to reach the amount that we're going to have to bid it out, or is it something that we can just? I don't, you know, my plan is to, since we had a contract with BBC, all of our contracts have a clause in them for additional work as needed and i think we can piggyback off of that because i it does not i don't think it makes sense to bring in a different consultant to help us with the implementation that bbc recommended um will it take 120 000 i don't think so but i think a good chunk of that would be would be used um for their assistance the other thing that i do want to point out we've had this program in place since i think i think we hired charita's predecessor in 2009 prior to about three years ago we had a person with a very minimal budget enough to do the minority business expo do some outreach about four years ago was when we started talking about a disparity study and the council gave us the funding about four hundred thousand dollars to do that and then this previous year we asked for additional funding to help with some of the implementation long term we're going to need an extra person to do to help manage this program sharita and i sheree spends 100 of her time doing it i try to spend as much of my time doing it but the data collection and the day-to-day activities with keeping track of how much you're spending and where the where that money's going that's a huge expense and it's a huge or it's a huge time consuming expense and we've never had anybody to do it so we're going to have bbc help us with some of these things initially and then we're also going to need some some input from them on what what this position needs to look like personally the work that i do is more like data driven related stuff with how our spend has worked i think we need somebody that can do that work full time and stay on top of it because i mean managing just figuring out what you're you're actually spending on a monthly basis or a yearly basis that's a full-time job right there that we haven't devoted any time to but that's just my two cents on it okay so and then i know you know i you know i hope the questions don't come across like we don't think enough is being done because i think we do recognize all the work that you've been doing and charita and then i also know the the management software that we've invested in recently too that's you know i hope i I think that's helped us gain some ground. So in regards to the policies that need to be amended and changed, are there folks in the division that can help with bringing those policies forward for us to consider to amend to make the program work better? Or is that outside of the work of the consultants? Is that something that we can do, or is that something that you're looking for them to do? That's part of the post-implementation plan. The consultant would help us draft any policies and procedures as well to bring forth to the committee for approval. They will also help us develop policies and program manuals, which I have a program draft, but it needs to be totally overhauled. But they will help us with that, too. Okay. Okay. So with all the things that we talked about today, I think it would be beneficial if we got an update from you all in January on how things are going in regards to the consultant, in regards to other steps that we're taking to implement these recommendations. Is that doable? And I guess it's the committee chair's agenda schedule that could allow that for an update. With my comments, I'll get to that, but I'm along the same thinking process as you, Councilmember. Thank you. So I guess I'll just close by saying, no, I appreciate all the work that's been done. I think it's a lot, but I think a lot of us are kind of watching this and wanting to see what we can do to help move the needle on some of these things, and I think an update sooner than later will be good. So thank you. Thank you, Chair. Thank you. Councilmember Gray. Thank you, Chair. especially thank you since I am here as a visitor during this committee meeting Ms. Miller thank you for your presentation as someone that was not here when the first presentation was made because I am not taking office yet but I just would like to thank you for the work that you're doing as someone that has been in our community basically all my life I have noticed the disparities that we're seeing now that are evidence, that are concrete, that we can all say we have to do better. And it's not a have to, we must do better. Those numbers that we're seeing right now are embarrassing, as far as I'm concerned. Embarrassing, because we do know that we do have individuals out here in our community, in our Commonwealth, who are doing the work. and our city must do a better job at reaching those individuals for these jobs, these bids. I know it was earlier, and by the way, thank you to my fellow colleagues who have already asked the questions, some of the questions that I had. But earlier it was stated that women in general weren't considered minorities or having the ills. Historically, we know that women have been disregarded for numerous things along jobs. So I do understand why they are included, we are included, all women are included. And I'm thankful that we are seeing, like I said, right in front of us, of the work that must be done by this city. So thank you for the work. Colleagues, thank you for asking the right questions. Thank you for digging deep. We have deeper to go, and we must go. So thank you. Council Member Fogle. Thank you, Chair. And I was watching most of it upstairs. Sorry for physically being in this seat a little bit late, and hopefully I won't be redundant. I was wondering if in the recommendations there's a thought for providing training to minority groups to fill out the RFPs. It seems like some of the convoluted places are in the RFP itself. And so I don't know if you all touched on that or not, but Is there any training for the writing of the RFPs so that minority business owners are not left behind and contractors? I do get questions from minority business owners asking for guidance through a bid or a proposal document. I do guide them to an extent, but I can't tell them how to actually complete their bid or how to complete their proposal response. I can tell them how to complete the participation forms that need to be completed, how to complete the good faith efforts documentation that is required with their bid and proposal responses. But when it comes to their actual bid response or their proposal itself, I cannot tell them how to respond or what to do. But I can at least explain what's required in the bid as far as completing the required documents, make sure everything is signed, dated, notarized so that their bid and proposal does not get thrown out. Because it will be deemed non-responsive if not. So I can guide from that extent, but as far as telling them what price to put down or how to respond to it, I can't do that. But we can give some limited guidance on that. Okay, so piggyback off for Council Member Brown when he asked, is there something we can do as far as policy, rewriting RFPs or whatever? Is that something that we can, because I would have loved to seen a black minority contractor build that swimming pool up in Douglas Park. That would have been just cherry on top of the cake. But if they were to get that bid, and I think that's the question, Because what I'm looking at is that the mayor, our mayor of this city, always talk about racial justice, equity, and what this council looks like and what our city looks like. I want these Bs to reflect exactly what she talks about when she's talking about how our city is moving in a direction where everyone is inclusive and has the right and has the ability to get some of these contracts as well as anything else that's going on in the city. Can I just add something? When you were asking about training for RFPs and how to write them, something that we do these how-to-do business with the city classes throughout the year, and something I always tell people is that a lot of our contracts are repetitive, so every two years we bid out the same type of contract. All of that information is public information. And I tell people, if you see something that interests you, call our office, email us, and find out if we've done this type of bid before. Because they can look at all the previous proposals. They can look at all the previous responses. That's all public information. That helps them with, A, how do they price it, and then how did other people respond. So it's kind of like you get to learn from previous bids. And that's something a lot of people don't know. and I like to get that word out that that stuff's available but just wanted to add thank you for your fine job let me smile on that one good thank you council member so miss Miller and thank you for all the work that you're doing Todd thank you thanks to our outside consultant partners mr. Holmes good to see you I think last time we worked together was with the Woodford County Planning Commission good to see you again so when I look at what we're what's in front of us right now you know you see some items to be talked about that would that would require action but are not in front of us like either a new consultant contract or extending existing contracts through the bidding process or blue sheeting, potentially policy changes, potentially a new position in the next budget. So there are several things that this committee can't really do now. So I'm trying to help you with a sort of the action item you're looking for. Are you wanting us to kind of acknowledge the work done and direct you to continue and then bring back some items for us to act on in the future? Yes. Yeah, and I think in the next several weeks, we will have an agreement for the consultant to help us with that. That will be before Council 2, so that will come up shortly. That's great. So with that, I don't think that requires a motion. I think unless there's objection of the committee that it would be the consensus of the committee that we do acknowledge the work. We appreciate it, and we direct you to continue on. And let's shoot right now for a January update, and hopefully we'll have some progress that's been made in between, like consultant contracts and things, and then maybe some hard items to start really evaluating and moving forward with first of the year. Is that comfortable with the committee? Thank you. Thank you very much. Thank you. Next item on the agenda is the ADU annual update. Council Member Brown, do you want to lead us in on that, or just want to let planning get started? We'll let planning get started. And then Vice Chair Plowman, if you would take the chair until I get back. Thanks. Go ahead. All right. Mr. Chair, members of the committee, I'm Chris Taylor, and with me is Autumn Goddardwiss from the Division of Planning. This presentation is an update on a proposed set of revisions to Lexington's accessory dwelling unit ordinance that was passed in October of 2021. But it also looks at some other permit applications that often get commingled with accessory dwelling units, as well as other living arrangements that sort of don't fall neatly under our current regulations. Just quickly over the current ordinance, some of the things that we're going to talk about today, There is an owner occupancy requirement on ADUs that requires that the owner of the property reside in either the main structure or the ADU. There's an 800 square foot cap on the size of an accessory dwelling unit, regardless of whether it's detached or attached, with the exception of any converted basements. It does have a maximum occupancy of two people plus any related children. There is a deed restriction requirement that is put on the property in favor of the urban county government. It's a way of notifying the future property owners when the property is sold that there is an ADU on the property. But this slide was created last year when we did the first update in October to the Planning and Public Safety Committee. And sadly, there's not been a single ADU permitted since this time. So we're still at five ADUs in almost two years. really what we want to talk about is why is Lexington's accessory dwelling unit program not more successful and then we're going to compare that to a couple of other initiatives that the city has taken and how they may be outpacing our accessory dwelling unit program in the future and that is of concern to the planning staff but of the five permitted units that we have four of them were detached conversions and one of them was an addition that was previously permitted by the board of adjustment back in 1995 and that person brought it in to get legal for estate planning purposes. They have a disabled child and they're trying to set their property up in a trust and make sure that there are two legal permitted units on that site. And so that's sort of a unique situation, but the average of these units is just under 500 square feet and they're all either a studio or a one-bedroom unit. Based on the totality of the calls, the emails, the pre-application meetings that we have, One of the biggest first-line hurdles is the restriction on new detached accessory dwelling units. This was a restriction that was placed on this ordinance right at the very end before adoption. I think there was a general concern that we were going to see hundreds of ADUs. And I say that as a concern. I don't think that would have been a staff dream if we had had hundreds of small, affordable units built in the community. there was some fear about what this would mean for neighborhoods and we were able to give some projections on what we thought with the regulations we would see in terms of ADUs over time with the regulations and as they were proposed and forwarded and they've come in quite a bit less than that and even our projections that we gave the council if they had left that provision off probably would not have been met but Autumn's going to go through some of the important other considerations, things that we're constantly seeing we're going to ping pong a little bit back here between policy and some of the regulation changes but so since we've legalized ADUs and we've started having these conversations with residents, some nuances about the way that people want to use their home have really come to light. A lot of the time we'll get a call or we'll see a set of plans and we'll see a second kitchen and that's sort of a ping pong that we think it's an ADU. But sometimes we hear from the applicant that they don't really want an ADU. They want it to be able to fully utilize their property for their own use. They may want a second kitchen for entertaining or they want a separate space for grandparents to live and be able to watch the kids but to have sort of their own private but not totally separated area. Sometimes they want something like a wet bar in their pool house. So we hear a question of almost constantly, does a kitchen constitute a dwelling unit? And this is something that a lot of communities struggle with, when to allow a second kitchen and when that is creating another unit. So we thought that allowing ADUs would address some of those things, the issues that we've had historically regarding second kitchens. But there are, again, nuances to that. So typically the second kitchen is an indicator that the space is going to be used or could become in the future a separate dwelling unit. And if there are, there are building code issues with that and zoning issues with that. So an attached ADU has to meet the building code requirements for a duplex. But if you just have a second kitchen that's within one dwelling unit, that doesn't have any additional building code requirements. It's just a second kitchen. So the zoning ordinance is silent on how many kitchens you can have. ADUs are allowed, but they're heavily restricted, as Chris indicated. And then we also have something called accessory living quarters, which are allowed. They're not defined, except to say that they can't have kitchen facilities and they can't be rented. So you know that we've only had five ADUs since October of 2021. But from January of 2022 until about August, planning has approved 58 second kitchens for a variety of reasons. And when we've been able to determine that they're not creating a second dwelling unit. So each one of those requires a really careful review of what the applicant is intending it to be used for and what a future owner might intend to use it for and whether it could easily be modified into a dwelling unit without meeting all of those building code requirements and things like that. So based on all of that, we're proposing changes to the zoning ordinance to better address the demand for shared multi-generational housing by updating the rules for ADUs, accessory living quarters, and revisiting how we deal with second kitchens. So this is to help us distinguish between an independent dwelling unit and a shared living situation, because we're seeing that that's a product that's highly desirable to a lot of our residents. It's not quite an ADU, but right now it's not allowed, even though it's a little bit less intense than an ADU. So broadly, we want to support intergenerational living arrangements, support opportunities for aging in place, and create additional long-term affordability options. We do see some problems with the current text, and we think that they can be addressed with some relatively minor changes. So one of the things the Planning Commission asked us about when we started this discussion with them was, what's Louisville doing? Because they were aware through the last update to the ordinance that Louisville was in the process of adopting their ADU ordinance, and they had subsequently adopted a short-term rental ordinance. And when we first brought this back for an update to the Planning and Public Safety Committee over a year ago, there was a desire at the time to finish up work that had been started on short-term rentals. And the Council has taken that action. There's a program that's ongoing. We're starting to see what that looks like in practice. But we have some data from Louisville that tells us a little bit about ADUs and then comparing and contrasting those with short-term rentals. Since Louisville adopted their ordinance just before Lexington, they've had 42 approved ADUs. You can see that breakdown by year. And commonly, nationally, the way most communities sort of report out their ADU constructions to look at how many permits per 10,000 people there are, sort of evens the scale across big communities and small. And Louisville's ADU permits sit at around 0.63 ADUs per 10,000. I won't shame any of us with what the West Coast ADU permits per 10,000 look like, but needless to say, it's much higher. But of those units that Louisville permitted, only 24 of those would have been permitted under Lexington's ADU regulations, would have put them at around a 0.38 per 10,000. I'm going to come back to that number, just sort of hold that .38 in your head for a minute. But if you look at short-term rentals in Louisville, they adopted their regulations in 2019. They have 1,300 registered short-term rentals and 877 of those are unhosted. They have very similar regulations to Lexington, but they are currently looking at revising them. So there's just sort of a cycle of review ahead of us. Again, it's that 42 and that 1,300 in eight. and we're looking at similar regulations in Lexington and that's sort of a third rail of what we're talking about here. We have the things that Autumn's talking about and then we have this issue here that we want to talk about as well. So again, this is just touching on I think what we've already talked about that there are some problems with the current zoning ordinance because the definitions are a little bit unclear. That's okay. I think we're, yeah. I missed it. Sorry, I went the wrong direction on the pointer. So we have, in Lexington, we have five ADUs over almost two years. We are sitting at around 0.15 ADUs per 10,000 residents. In one month of short-term rentals, we're already at 12 that have received zoning compliance permits, and this is a few weeks old. We have 40 pending permit applications. We had three at the last month's Board of Adjustment, and there's a roughly 16 plan for the next conditional use hearing through the board of adjustment as well so again when we're talking about scale and trend this is the part of the information that we want to share with you based on what we think is the future may look like for short-term rentals versus accessory dwelling units sorry about that so now we'll get into the the text revisions that are being proposed so first we are proposing a new definition to explicitly define accessory living quarters. The definition would allow for accessory living quarters where there's an open access between the accessory living quarter and the rest of the dwelling unit. So sort of your ADU would be your fully separated unit and an accessory living quarters is something that is contiguous and meant to intermingle. This definition would also clarify that a dwelling unit that has an accessory living quarter is still limited to occupancy by one family. So it's not allowing any additional occupancy. And then within each zone will be striking the language that states that accessory living quarters can't have a kitchen and cannot be rented. We're adding language to the definition of kitchen facilities to further clarify that if a detached structure is going to have a kitchen, it probably is an ADU and should be treated as such. We do have an exception in the last couple lines here for a wet bar in a detached structure that could include a sink and a refrigerator, but only if there are not bathroom facilities with a shared access to that kitchen facility. we kind of figure that if you have to go outside to access a bathroom, it's probably not going to be used as a dwelling unit. So you're not creating that additional dwelling. So our intention with this slide is not to create burdensome requirements for second kitchens and accessory living quarters, but sort of better define the categories of our allowable uses so that we can clearly say what's a dwelling unit, what's a second kitchen, what's a living quarters that's supporting the family that's living in the home. That way staff doesn't have to go through a series of really subjective questions to determine whether or not a second kitchen is creating a new dwelling unit or if it's something that is allowable within one dwelling unit. Then we get into the new changes for ADUs and you'll see that this is largely just deletions. So first we're recommending that ADUs be allowed to be created through new construction for detached ADUs, not just the conversion of an existing detached ADU, or of an existing detached accessory structure. We're also recommending that prefabricated modular manufactured housing be able to be used as an accessory dwelling unit. We see a lot of manufacturers in other states that are sort of developing a product that is an ADU that can just be brought to your property and placed on a foundation. So we think that those could be a valuable option here. Then again, just a whole lot of deletions. We're recommending removing the requirements for owner occupancy and the filing of a deed restriction. Those are just some onerous requirements that a lot of communities start out with and then do away with. And we see that there's value in going that path as well. And then again, the last one is just again that provision for allowing new detached accessory dwelling units. so one of the things that's important to note on these these some of these restrictions here is these are not restrictions that are applicable to short-term rentals which really gets to sort of the crux of the of the point here when we brought an adu ordinance forward we were asked what was going to be the impact and you know there was concern about a huge proliferation of accessory dwelling units which is not proven to be the case but there is an absolute impact of not making changes to our current adu ordinance especially when you compare it in light to the short-term rental ordinance that we have today and that's not to say that the short-term rental ordinance that we have today is not a good ordinance it's it's largely in line with what other communities are doing but our ordinance is not in line with what other communities are doing on accessory dwelling units the impact of not making some of these changes is that we're making it harder for people to do some of the low impact changes to their homes that really have no material impact on our neighborhood. These proposed changes to accessory living quarters and second kitchens, they accommodate lots of people's living situations that don't fall under an ADU, but sometimes it pushes them into one of these categories or to do something that is not necessarily permitted after the fact, and that's not a situation we want to create as an incentive to do something outside of the regulations. Also an impact of not making changes, we continue to make accessory dwelling units difficult to build, and doing that is not going to change our demand for short-term rentals. I think we often get into this debate of you know whether we're you know how do we convert people to short-term rentals or if we if we make ADUs hard they won't do anything. If there's people who are looking to do a profitable short-term rental operation on their property making an ADU hard is not going to change that calculus. Right now the ADUs are prohibitively more difficult from a regulatory standpoint to get created. All we're really doing if someone is looking to drive some additional income from from their property is saying well this one is really hard to do and doesn't make as much but this other one that makes a lot of money is easier to do so there's a policy preference being stated when we have these two options for people to invest in a property we're essentially telling them that this is the one that the city prefers in our housing policy again we also feel like we're missing an opportunity to encourage investment in neighborhoods that supports long-term housing again if we can if we can get the the balance of ADUs and short-term rentals we think in a good place that there's an opportunity to encourage investment for long-term rental or long-term housing in these in these areas instead of doing a conversion to a short-term rental we feel like it's important to note that a whole house conversion to a short-term rental is a full loss of that dwelling unit to that to that area but a whole house with an ADU not just enhances the property value the investment the property but creates additional revenue there as well and then I would say lastly sheriff do I have just a minute more almost finished um that we don't want um i guess the last statement here really is we're we're concerned that we're maintaining a housing policy that's prioritizing a short-term rental which is a commercial use in a residential zone over affordable long-term housing options this is something that is underway with the planning commission right now we've started public outreach with that we are scheduled for an october planning commission public hearing our goal would be to have this to the council by the end of the year for action hopefully after the first of the year when break is over but largely we just want to make sure that the council and the committee is aware that this is out there that it's coming that if you have any questions if you have constituents that would like us to come and meet with them we'd be happy to do that thank you all very much that's a really good update and i think it shows how we continue to evolve in our understanding and use of ADUs and I think I particularly appreciate the look to housing policies and are we truly incentivizing ADUs the way that we intended and do we have reason to be as restrictive now as we thought we did and I think we're making a lot of progress. Vice Mayor Wu. Thank you, Chair. Thank you for your presentation. My question kind of goes to sort of process or thought process of how we, this has been in place about two years, we have a certain amount of data, we know how many applications are coming through, et cetera. Going forward as we make changes, so let's say we implemented a bunch of changes today, how long do you usually like to give it to kind of see if things are working for the better or for the worse before you take that next analysis of step of tweaking? Is it one year? Is it two years? How much data, how much time do you need? With the ordinance as it was adopted, planning staff could have told you within five or ten units what we were going to get. So I don't think a year is plenty, we know. If this ordinance as adopted were to move forward as proposed, I don't think we would come back for at least two years. I think the other efforts would need to be on the permitting and ease of the administrative side of things. We'd be looking at generating programs for pre-approved plans through the building permit office. Things that could expedite permitting, those would be the types of things we would take on for the next couple of years because I think this would largely get national best practices in line on ADUs. Then we could focus on the internal administrative hurdles that are there for it as well. And then hopefully working with builders on the building code side. There are changes in Frankfort that need to be made on the building code to modernize Kentucky's building code for ADUs as well. So I don't see this ordinance as proposed. We could work with it for a good number of years, but I think for any future reform would be needed. Okay. I guess my curiosity on that is always balancing, like, being judicious and giving a good amount of time to see if things are being effective, but also being nimble enough and not waiting, you know, five, ten years down the road, and suddenly we have a much bigger issue before we take action. So I think you answered my question. Thank you. Thank you, Chair. Thank you. Council Member James Brown. Thank you, Chair, and thank you, Chris and Autumn, for the update. And the way you're kind of walking us through this, I know when we first entertained ADUs, there was a lot of concern from the community about how they were going to impact their neighborhoods. And I think the policy that we put in place and going back and adjusting it and amending it is what we need to do. Maybe you said it and I missed it, preexisting structures. How does that work with ADU applications? If they don't meet the square footage percentage or they're exceeded, are they grandfathered in or do they have to take an additional step? They're limited to the 800 square feet. There are certain, if a structure is nonconforming in certain regards, then they could be grandfathered in. Typically what we're seeing with detached accessory structures is it's really hard to bring them up to building code to create a dwelling unit. They have to come up to energy code and do fire separation and things like that. and then that gets kind of expensive. Yeah, so I guess, so that can be challenging. And if they have to go for a non-conforming use, do they have to go in front of the board, the BOA, to get a non-conforming use if it's a pre-existing structure that's larger than the percentages that we allow? So they would not be able to go before the board for a non-conforming use for that because it wouldn't have been a legal use previously. they could potentially I don't think we would I don't think so since it since there were no ADUs allowed prior to that date there's no legal nonconformity there okay yeah because I'm concerned about that with the short-term rental policy that we have I think some folks are going to get caught inadvertently by what we got in place for ADUs and then the kitchen requirements. And then that's the next question I was going to go to. So the kitchen amenities, you have to have two of the ones on the list, and you get classified as an additional kitchen. But most college dorm rooms have a refrigerator and a microwave, and I would say that's a kitchen. So what was the thinking behind that? That's our existing definition. that definition has been in the zoning ordinance for a very long time. But as soon as you get to those two appliances, you have a kitchen. So again, that's why we're really doing a calculus every time that we see something that looks like a second kitchen come in as to whether or not it really is creating another dwelling unit. Because like I said, there's nothing in the zoning ordinance that prohibits you from having a second kitchen. It's just that it tends to be an indicator that you have another dwelling unit or could have another dwelling unit. So whenever those applications come in, like I said, we've had 58 in about a year and a half that have been approved. and there's a lot more that haven't been approved too um it's sort of about really determining what the use of that kitchen is and whether or not it's creating a living space or if it's for a hobby like you you need a microwave in a refrigerator to make candles or something or if you're you've got need a popcorn popper and your wet bar it's it's a lot of nuance what this definitions what these definition changes do though is it it makes it very clear the the ways in which you can have the second kitchen and it's it's more permissive because basically it's saying if you're not doing anything that's going to create a clear second unit then the second kitchen is permissible because the only thing the only reason the second kitchen is an issue is whether or not you're creating a second dwelling unit on the property when it's not allowed into zoning so if we can clearly define the standard that you're not creating a fully separated dwelling unit then we're now able to say all the second kitchens in most in almost all the circumstances you're talking about would be permissible and we and it so it's actually making it easier to get those types of things that you're talking about because we're instead of spending time about talking about the number of appliances we're talking about the physical separation of the unit as the defining factor i think that's that's clear from a permitting standpoint makes it easier when the applicant comes in and has to state what they're planning to do with it you know then we get into a weird game of well it's a wet bar not a kitchen and they have to have a sink that says it's a wet bar sink and so we're trying to avoid some of those types of semantics that just are ways to get around definitions by clear speaking more to the structure itself and where you put the kitchen okay that make sense it does and i may circle back to you offline and get more clarity but i think as long as we're working to make these policies more consistent and supportive of each other for adus and strs i think that's what we need to do and the short-term rental question is you know there's a little bit of misinformation out there about what this proposal does on short-term rentals we created a conflict in the ordinance with the short-term rentals as it relates to adus we We set a standard in the new short-term rental regs on how we're going to handle ADUs and short-term rentals. And we still have this provision in the ordinance. That's why it's proposed for deletion. It's because now they're governed somewhere else. Because at the time these were written, we did not have short-term rental regulations, and we had to address that. So we have a conflict right now where probably someone who has an ADU or something like an ADU can't meet that requirement because this is actually more restrictive a little bit. But that decision on how we're going to regulate short-term rentals and ADUs has already been done. That was done when Council adopted the short-term rental regulations. So we do have that conflict that does need to be fixed. Council Member Lynch. Thank you, Chair, and thank you for the presentation. I only have one question from my understanding. Could you walk me through again your proposed definition for accessory living quarters, just for my clarity? so accessory living quarters means a portion of a dwelling unit designed for the purpose of shared or intergenerational living that may contain a second kitchen and other components of a dwelling such as an independent means of egress a non-separated continuous and open access shall exist between the accessory living quarters and the remainder of the dwelling unit total occupancy of the dwelling unit containing an accessory living quarters shall be limited to one family or housekeeping unit. So this is really about creating an accessory living quarters that is a space for a family to share the house overall but to have sort of separate living spaces. So an accessory living quarters might have a bedroom and a sitting room and a second kitchen for your mother-in-law to stay in. Sort of that's sort of the traditional way. We've had some folks come in for ADU applications who want to convert a space in their home for something like that. And in order to become an ADU, they have to go through all of this, turning their home into a duplex, essentially, as far as building code goes. It's not a duplex under zoning. I want to be clear about that. But meeting fire code separation, it has to be a fully separate unit with separate utilities and all that sort of thing. And that's sort of really difficult, and a lot of people don't really want that. They want to be able to come and go between the two spaces because it's for their family members. So we're really trying to address that sort of living situation. Okay. They're not rented. They don't have separate addresses. For all intents and purposes, they still fall under our same traditional definition of family for one housekeeping unit. And so that's the key distinction between the ADU is that they're fully moving between those two spaces in a way that is not under building code in ADU or under our definitions in ADU. Thank you. Thank you, Chair. Council Member Sheehan. Thank you, Chair. I know we're kind of moving a little bit fast, and the accessory dwelling units and the short-term rental policies are both very important to my district, so I'm planning to set up a meeting with you all to just go over this in a little more detail because I'm not sure that I'm getting all of the nuance, particularly in the data and the relationships between ADUs and short-term rentals that you're trying to convey to us today. And it may be just, we're just kind of moving quickly, but I just want to make sure that I understand it. So I just have one question for you. When you go back to the Louisville data and you mention that they have 42 approved ADUs since the adoption of their ordinance, do you have the information on how many of those then were short-term rentals what is the percentage of those i have there the number there my counterpart in louisville has sent me their spreadsheet of all 1800 or whatever uh short term or 1300 short-term rentals i don't have it pulled out i can get that information for you i believe they have it broken down as to how many of those ADUs. I think they have a similar one requirement that we had, which is that the ADU has to be a conditional use for their short-term rental. So I'll double check that, but I can get you that information. Okay. Because in general, from my own perspective, and my residents might not share this all the time, but particularly in my work with the Senior Services Commission, I support the ADUs and the use of, you know, allowing people to have a space to age with their families or for people who might have different accessibility issues and want to have a separate space to live but be close by with family to be able to have more independence. So I support them in that use but I still have concerns about the connection between the short term turning it into a short term rental so and I understand that's something shared by my district so I just want to make sure that I'm understanding the relationship and And we're going through the conditional use permits now with the new short-term rental policy, and that is particular to residential zones for unhosted. I think that ADUs, because it is a separate living space, is it actually makes more opportunity for a hosted short-term rental, which then wouldn't have to go through a conditional use permit process. So there are just some questions that we don't have time for today. but I'll just follow up with you later. If you don't mind, I do now that I understand your question better. We have a very good report from Seattle that has been doing these for far longer and for a lot more of them they have thousands to speak to the data aspect of it. Only 12% are used as short, only 12% of Seattle's ADUs are used as a short-term rental. Now some go in, some get built to be that way and some come back as long-term rentals, some are built as long-term Reynolds, there's some flux there, some frictional change of use there. But in general, in a big city with a big program with lots of ADUs, it's about 12 to 13 percent. Thank you. And I'll follow up to schedule a meeting with you all. Council Member Reynolds. Thank you, Chair. And thank you, Kristen Autumn, for your presentation. And thank you, Council Member Sheehan, for your comments. My comments are echoing my constituents' concerns. and they also are concerned about the short-term rentals and even long-term rentals. I think just the density concerns them, the different ways that the ADUs could be used. So we don't really, currently we don't have a way of saying, you know, we want these to be used for aging family members or family members with disabilities. so people can be building them as pool houses, they could be building them as short-term rentals, they could be building them literally as anything, correct? They do that. They were doing that before we had an ADU program, so yes. So I think along the lines of what Council Member Sheen was saying, it would be nice to have some more data to share with our constituents about how they are used. And I know I remember when we put this in place, we saw stats that showed that it's not like thousands of these are being built per year. It's a very small percentage of our housing stock that would be ADUs, if at all. And so I think those stats and messaging are really important. So I also would love to follow up with you and be able to share some of that with my constituents. Thank you. Thank you, council members. Thank you for the presentation, and I look forward to what comes back. You don't have to give me an answer to this. I just want to point out that in the new language related to kitchens, I know you're trying to identify the typical wet bar situation, but the restricting to only under-the-counter refrigerators seems natural in thought, but a little arbitrary. I mean, a refrigerator could be whatever size a family thinks that they need. I don't think that should worry us too much. But other than that, I like the work you're doing. Looking forward to what comes back. I think initially we were concerned because ADU was a new thing to us, or I should say it regulated ADU was a new thing to us. And our current policies aren't incentivizing ADUs as a housing density or family or generational tool like we wanted. And I think we were hesitant to go as far as we needed to because of the worry of short-term rentals and it just being a new thing. But now we're regulating our ADUs that are designed for the purpose we wanted them to be more than we are short-term rentals. And now that we have a short-term rental regulatory body that we can continue to adapt and use, our concerns over ADUs are less. And so I think I appreciate the work that you're doing. So with that, council members, the last item that we have, we won't go through all the items referred to in committee. If you've got changes, please email me. We'll address them in October. But I do want, Kelly, if you will note the electronic and digital billboard item. It's currently under Council Member Plowman's name, and she would like that. At the time, Council Member McCurn had taken that on for her, him being gone. If you now put that under my name, and I'll take charge of that item, and it will no longer be a subcommittee. It will just be the item itself, and we'll work towards it moving forward. With that, with no objection, we stand adjourned. Thank you. Thank you. Thank you.