Council Economic & Community Development Committee

Summary

Meeting Overview

The Economic & Community Development Committee met on March 15, 2011, at 1:00 p.m., with Beard presiding. The committee addressed three agenda items during the session, all of which were informational in nature. The meeting included a Quarterly Update on Development Activities, a presentation on the IBM Smarter Cities Project, and a review of Items Referred to Committee. The committee took two votes during the meeting and heard five public comments from members of the public.

Attendance

The following individuals were present at the meeting on March 15, 2011:

• Beard
• Stinnett
• Gorton
• Ellinger
• Crosbie
• Myers
• Lane

No absences or late arrivals were recorded.

Votes and Decisions

Motion to Recommend IBM Diagnostic Assessment 1:21:33

A motion was made by Crosby and seconded by Myers to recommend engaging IBM for a diagnostic assessment of city operations. The motion passed by voice vote with no dissenting votes. Those voting in favor were Beard, Stinnett, Gorton, Ellinger, Crosbie, Myers, and Lane. There were no votes against and no abstentions.

Motion to Adjourn 1:35:03

A motion to adjourn the meeting was made by Beard and seconded by Crosbie. The motion passed by voice vote with no dissenting votes. Those voting in favor were Beard, Stinnett, Gorton, Ellinger, Crosbie, Myers, and Lane. There were no votes against and no abstentions.

Public Comment

Five speakers addressed the meeting with questions and observations regarding economic development strategy and city operations.

Beard [00:17:44] welcomed IBM representatives and emphasized the value of external data in informing economic development strategy. Beard highlighted the importance of using the study as a tool for strategic planning.

Stinnett [00:11:32] requested a review of the Economic Development (ED) zone within the comprehensive plan. Stinnett asked whether the zone is fulfilling its intended purpose and whether it should be reevaluated for alternative uses.

Crosbie [00:13:49] asked for an update on the status of Tax Increment Financing (TIF) projects. Crosbie also inquired whether the new Chief Development Officer's office would address unemployment and underemployment issues left by the closure of the mayor's training center.

Lane [00:15:27] asked about Lexington's relationship with the broader Bluegrass region and questioned whether the city manager form of government impacts operational efficiency. Lane referenced IBM's findings on city manager versus strong mayor models in this context.

Myers [00:14:41] asked how the committee should use the IBM data and whether the city should engage IBM for a diagnostic assessment. Myers suggested a formal motion to recommend such engagement.

Contested Items

Use of IBM Benchmarking Data

The committee encountered a split vote regarding the use of IBM benchmarking data. While there was general support among committee members for the value of the IBM data itself, disagreement emerged over the timing and process for implementation.

The core contention centered on a recommendation to engage IBM for a diagnostic assessment. Committee members expressed hesitation about moving forward immediately with this engagement, citing two primary concerns: the lack of available cost information for the proposed diagnostic work, and uncertainty about what subsequent steps would follow such an engagement.

The outcome reflected this divided position, with the committee unable to reach consensus on proceeding with the IBM diagnostic at that time. The disagreement did not stem from doubts about the quality or relevance of the IBM benchmarking data, but rather from procedural and financial uncertainties that prevented members from committing to the recommended course of action without additional information.

Quarterly Update on Development Activities

Kevin Atkins, the newly appointed Mayor's Chief Development Officer, presented a quarterly overview of current economic development efforts 3:37. The presentation covered multiple strategic areas including assessments of industrial land availability, university partnerships, and regional collaboration initiatives.

Key Topics Presented

Atkins outlined the city's approach to economic development through a data-driven lens, emphasizing the importance of strategic planning in guiding future growth and investment decisions. The presentation included an evaluation of available industrial land resources and their capacity to support business development. Additionally, Atkins discussed existing and potential partnerships with local universities as vehicles for economic growth and innovation.

Regional collaboration was highlighted as another critical component of the development strategy, reflecting recognition that economic development efforts benefit from coordination beyond municipal boundaries.

Comprehensive Plan Process

A significant portion of the update focused on the upcoming comprehensive plan process, which Atkins indicated would be central to the city's long-term development trajectory and decision-making framework.

Outcome

The agenda item was informational in nature, with no formal action items or decisions required. The presentation served to brief the governing body on current development activities and strategic priorities under the new Chief Development Officer's leadership.

IBM Smarter Cities Project

IBM representatives, including Saharchik, Sider, and Edwards, presented findings from two studies assessing Lexington's municipal performance 22:29.

Smarter Cities Assessment

The assessment compared Lexington to 19 peer cities across seven systems. The analysis identified specific strengths and weaknesses:

• Strengths: Water systems and transportation infrastructure
• Weaknesses: Public safety, education, business environment, and public transit usage

Operational Efficiency Benchmarking Study

The benchmarking study ranked Lexington's operational efficiency at 78th out of 100 cities. The study identified significant opportunities for cost savings and operational improvements across municipal departments:

• Potential savings of $140 million identified through reforms in police, fire, and parks departments

Outcome

This agenda item was presented for informational purposes, providing the city with comparative data on its performance relative to peer municipalities and identifying areas where operational reforms could yield substantial financial benefits.

Items Referred to Committee

During this agenda item, the committee acknowledged that items had been referred to the committee in accordance with Council Rules & Procedures 1:34:30. However, no specific items were discussed or listed during the meeting.

Key Speaker: - Beard

Outcome: The item was treated as informational in nature, with no substantive discussion or action taken regarding particular referred items.