Urban County Council Work Session

Summary

Meeting Overview

The Lexington-Fayette Urban County Government held a meeting on August 14, 2012, presided over by the Mayor. During the meeting, the body took 19 motions and votes, heard 6 public comments, and addressed 11 agenda items. The meeting included a mix of outcomes: two lease agreements for Metro Employees Credit Union locations were tabled, while other items were passed, approved, deferred, or presented for informational purposes. Key approvals included the Tates Creek Sidewalk Improvement project, Ad Valorem Tax Rates Presentation, Neighborhood Development Funds from August 8, 2012, and the Itinerant Merchant Task Force Report Out. Two items—School Crossing Guards and the Public Safety Committee Summary from July 10, 2012—were deferred for later consideration. Additionally, two informational presentations on the Capacity Assurance Program (CAP) were delivered to the body.

Attendance

The following individuals were present at the meeting on August 14, 2012:

• Council Member Beard
• Council Member Lawless
• Council Member Crosby
• Vice Mayor Gordon
• Council Member Farmer
• Council Member Ellinger
• Council Member Stennett
• Council Member Martin
• Council Member Henson
• Council Member Blues
• Council Member Lane
• Council Member Myers
• Council Member Kaye
• Council Member Ford
• Council Member McCord
• Council Member Wallace
• Council Member O'Keefe
• Council Member K
• Mayor

No council members were absent or late.

Votes and Decisions

The council conducted multiple votes throughout the meeting, with most passing by voice vote and several conducted electronically.

Docket and Procedural Motions

Council Member Lawless moved to place the requested rezoning on the docket without a public hearing, seconded by Council Member Crosby. The motion passed by voice vote 15:15. Council Member Farmer then moved to approve the docket, seconded by Vice Mayor Gordon, which passed by voice vote 15:48.

Council Member McCord moved to place installation of a four-way stop at Boston Road and Wyndham Hills Drive on the docket, seconded by Council Member Myers. This motion passed by voice vote 17:21. The docket as amended was subsequently approved by voice vote 18:58.

Council Member Beard moved to approve the summary, seconded by Council Member Myers, and the motion passed by voice vote 19:29.

Budget and Tax Matters

Council Member Ellinger moved to approve budget amendments, seconded by Council Member Myers. The motion passed by voice vote 25:13.

Council Member Lane moved to place an ad valorem tax for streetlights on the docket at a rate of .034 per $100 of assessed value, seconded by Council Member Martin. This motion failed by electronic vote 1:51:48.

Council Member Farmer moved to keep ad valorem tax rates the same for General Services and Urban Services Funds, seconded by Vice Mayor Gordon. The motion passed by electronic vote 2:33:41.

The health department ad valorem tax rate of .028 was approved by electronic vote on a motion by Council Member Farmer, seconded by Vice Mayor Gordon 2:51:16.

Council Member Farmer moved to approve the soil and conservation district ad valorem tax rate at .000433, seconded by Council Member Ford. The motion passed by electronic vote 2:52:53.

Council Member Stenet moved to amend the extension district ad valorem tax rate to a 4% limit, seconded by Council Member Beard, and the motion passed by electronic vote 3:01:15. The amended extension district ad valorem tax rate at the 4% limit was subsequently approved by electronic vote 3:04:46.

Committee Referrals and Other Matters

Council Member Farmer moved to refer items CC and EE to the General Government Committee, seconded by Council Member Kaye. The motion passed by voice vote 1:05:01.

Vice Mayor Gordon moved to approve Neighborhood Development Funds for the East End Reunion Committee, seconded by Council Member Kaye. The motion passed by voice vote 3:34:17.

Two motions regarding itinerant merchant matters were made. Council Member Henson moved to place the itinerant merchant ordinance in the Planning Committee and the pilot program in the Economic Development Committee. These were subsequently consolidated when Vice Mayor Gordon moved to send both items to the Economic Development Committee, seconded by Council Member K, and the motion passed by voice vote 3:38:11.

Vice Mayor Gordon moved to approve the Mayor's report, seconded by Council Member Beard, and the motion passed by voice vote 3:46:32.

Council Member Senate moved to adjourn, seconded by Council Member Ellinger, and the motion passed by voice vote 3:47:52.

Budget and Financial Actions

The meeting included three significant financial actions:

Streetlight Operating Deficit An ad valorem tax increase of $2.5 million was approved as an amendment to cover an operating deficit for streetlights.

Utility Franchise Fee Increases Franchise fee increases were amended for electric and natural gas utilities provided by Kentucky Utilities to support the streetlight fund. The increase totals $2.5 million in FY13 and $4 million in FY14.

SAFER Grant Appropriation A budget appropriation of $22.5 million was approved for the Fire Department to fund 25 additional firefighters through a SAFER grant.

Public Comment

Five speakers addressed the Metro Employees Credit Union lease rent waiver, and one speaker raised concerns about a sidewalk project cost increase.

Metro Employees Credit Union Rent Waiver

Piper Graham, representing Metro Employees Credit Union, spoke at 1:06 requesting a waiver of base rent for city-owned facilities. Graham emphasized the credit union's 72-year history as a no-cost employee benefit and highlighted its critical role in providing low-interest loans and financial services to city employees, particularly those with low credit scores.

Debbie Tester, a long-time credit union member, spoke at 8:11 urging the council to reconsider the rent proposal. Tester expressed concern that the credit union might close and that she would lose access to affordable financial services.

Priscilla Sullivan, a retiree and credit union member, spoke at 9:18 sharing her personal experience of financial assistance from the credit union. Sullivan urged the council to reconsider the rent increase to preserve this vital employee benefit.

James Jackson, a retired assistant police chief and credit union board member, spoke at 10:23. Jackson emphasized the credit union's family-oriented, educational, and financial support role for city employees and their families, urging the council to reconsider the rent proposal.

Ada Jennings, a long-time employee and credit union member, spoke at 12:03 describing how the credit union helped her and her family achieve financial stability. Jennings expressed hope that the council would preserve this essential benefit.

Tates Creek Sidewalk Project

John McCarty, a resident affected by the Tates Creek sidewalk project, spoke at 1:31:22 expressing concern about a 30.8% cost increase. McCarty questioned the transparency and accountability of the project's management and urged the council to review the change order.

Contested Items

Metro Employees Credit Union Lease Agreement

The proposed lease agreement for the Metro Employees Credit Union generated heated discussion among council members. The central concerns focused on the financial impact to the credit union, the absence of a formal agreement, and the broader implications for city employees. Multiple council members expressed worry about the potential closure of the credit union and emphasized the need for a formal, long-term relationship to protect the institution and the employees it serves.

Tates Creek Sidewalk Project Cost Increase

The Tates Creek sidewalk project became a point of contention due to a 30.8% cost increase. Residents and council members raised concerns about the lack of transparency in project management. One resident specifically criticized the council's handling of the change order and questioned accountability for the significant budget overrun. The dispute centered on how the project had been managed and communicated to the public.

Ad Valorem Tax for Streetlights

A motion to increase the ad valorem tax for streetlights to cover the operating deficit resulted in a split vote and failed to pass. Council members were divided on the appropriate funding mechanism for the service. The disagreement involved whether to use property taxes or franchise fees to fund streetlight operations, and whether it was fair to burden only those properties with streetlights through an ad valorem tax increase. This fundamental disagreement over funding philosophy and equity prevented the measure from gaining sufficient support.

Lease Agreement for Metro Employees Credit Union Main Office

1:05:01

The council discussed a proposed lease agreement for the Metro Employees Credit Union's main office located on Versailles Road. Key speakers in the discussion included Piper Graham, Council Member Beard, Council Member Martin, and Council Member Lane.

Multiple council members expressed concern about the financial impact of the lease on the credit union and its implications for city employees. The discussion centered on how the proposed terms would affect the organization's operations and the employees it serves.

Rather than voting to approve the lease agreement, the council voted to table the motion. The item was referred to the General Government Committee for further study and review before any final decision would be made.

Lease Agreement for Metro Employees Credit Union Phoenix Branch

1:05:01

The council discussed a lease agreement for the Metro Employees Credit Union's Phoenix branch. The discussion paralleled considerations from a previous agenda item (item CC) regarding similar lease matters.

Key Speakers and Concerns

Council members Piper Graham, Beard, Martin, and Lane participated in the discussion. A primary concern raised during the debate centered on the financial sustainability of the credit union. Specifically, council members questioned whether the credit union could remain financially viable if rent obligations were imposed as part of the lease agreement.

Outcome

The item was tabled, meaning the council postponed further action on the lease agreement. Additionally, the matter was referred to the General Government Committee for further review and consideration.

School Crossing Guards

Council Member Farmer raised concerns about a perceived reduction in school crossing guards during this agenda item. 1:13:13 Farmer cited resident complaints regarding safety issues on St. Ann Drive and Clay's Mill Road, indicating that community members were worried about the impact of fewer crossing guards in these areas.

Commander Thomas Kurtz, representing the traffic section, acknowledged that a reduction in crossing guards had occurred. However, he attributed this decrease to two specific factors: the elimination of redundant crossings and the adoption of alternative safety measures by the schools themselves. Kurtz's explanation suggested that the reduction was part of a deliberate effort to streamline operations rather than a resource constraint.

The discussion reflected a tension between the council's concern for resident safety and the traffic section's operational decisions. While Farmer brought forward community concerns about specific roadways, Kurtz provided context suggesting the changes were intentional and supported by alternative safety protocols implemented by schools.

The outcome of this agenda item was deferred, meaning the matter was not resolved during this meeting and would be revisited at a future date.

Tates Creek Sidewalk Improvement

The council discussed a significant cost increase for the Tates Creek sidewalk improvement project 1:31:22. The project experienced a 30.8% cost increase, which the engineering team attributed to two primary factors: signalization upgrades and delays in right-of-way acquisition.

Key Concerns

Council Member McCarty raised concerns about the lack of communication and transparency regarding the cost overrun and project delays. McCarty's criticism focused on how the council and public were informed about the scope changes and timeline extensions.

Project Details

The engineering team, represented by Mr. Paulson and Bob Bayard, explained the reasons for the increased costs and extended timeline. They outlined how the signalization upgrades and right-of-way acquisition process contributed to the project's expanded scope and budget.

Outcome

The council voted to approve the Tates Creek sidewalk improvement project despite the 30.8% cost increase.

Ad Valorem Tax Rates Presentation

1:36:19

Commissioner Driscoll presented proposed ad valorem tax rates for the General Services and Urban Service Funds. The presentation included options for rate increases of up to 4% as a potential strategy to avoid voter recall.

Key Participants

The discussion involved Commissioner Driscoll as the primary presenter, with participation from Ryan Barrow and Bill O'Mare.

Presentation Content

Commissioner Driscoll outlined the proposed ad valorem tax rate adjustments for two fund categories: General Services and Urban Service Funds. The presentation included multiple rate increase options, with increases up to 4% presented as part of the discussion around potential fiscal strategies.

Outcome

Following the presentation and discussion, the council voted to maintain current ad valorem tax rates rather than implement the proposed increases.

Capacity Assurance Program (CAP) Presentation

3:05:58

Charlie Martin presented the Capacity Assurance Program Task Force's progress to the council. The presentation focused on the banked credit system designed to manage sewer capacity under the consent decree.

Program Overview

Martin explained the framework for the Capacity Assurance Program, which uses a banked credit system as the mechanism for managing available sewer capacity. The presentation outlined how this system would function to allocate and track capacity usage.

Key Topics Covered

The presentation addressed: - Key decisions made by the Task Force - Implementation challenges identified during the planning process - Requirements for moving forward with the program

Council Action Required

Martin indicated that the final Capacity Assurance Program plan requires council approval before implementation can proceed.

Participants

The presentation involved Charlie Martin as the primary presenter, with Joe Herman also identified as a key speaker during this agenda item.

Outcome

This agenda item was informational in nature, with the presentation serving to brief the council on the Task Force's work and prepare them for the approval decision needed on the final plan.

Neighborhood Development Funds - August 8, 2012

The council discussed and approved the allocation of Neighborhood Development Funds (NDF) to the East End Reunion Committee for an upcoming event. 3:34:17

Vice Mayor Gordon and Council Member Ford were the key speakers on this agenda item.

The council voted on a motion to approve the NDF request from the East End Reunion Committee. The motion passed unanimously, indicating full council support for the fund allocation to this community event.

Itinerant Merchant Task Force Report Out

The task force presented its report on itinerant merchant regulations during this agenda item. 3:36:25

Key Speakers: - Council Member Henson - Vice Mayor Gordon

Presentation and Recommendations:

The task force report included recommendations regarding itinerant merchant policy. The task force proposed that both the itinerant merchant ordinance and an associated pilot program be referred to the Economic Development Committee for further examination and review.

Outcome:

A motion to refer both the itinerant merchant ordinance and pilot program to the Economic Development Committee passed. The item was approved, advancing these matters to the committee level for continued deliberation.

Public Safety Committee Summary July 10, 2012

3:39:51

Council Member Lawless reported on the Public Safety Committee meeting held on July 10, 2012. Two agenda items were discussed during that meeting:

• Public safety disability claims
• Chronic nuisance ordinance

Both items were left in committee for further study. No motions were made regarding either item during the committee meeting.

The outcome of this report was that the matters remain deferred pending additional review by the committee.

FY 2013 Ad Valorem Tax Rates Presentation

The council received a presentation on proposed ad valorem tax rates for fiscal year 2013, with discussion occurring approximately 1 hour and 36 minutes into the meeting 1:36:19.

Key Speakers and Presentation

Commissioner Driscoll, Ryan Barrow, and Bill O'Mare led the discussion on the proposed tax rates for various districts, including the urban service fund.

Issues Discussed

The presentation detailed implications of potential rate increases, with particular attention given to the impact on streetlight funding. The council examined how changes to tax rates would affect this essential service and the broader implications for district operations.

Outcome

Following the presentation and discussion, the council approved the agenda item. The council ultimately chose to maintain current tax rates rather than implement the proposed increases.

Capacity Assurance Program (CAP) Presentation

Charlie Martin presented an update on the Capacity Assurance Program (CAP) task force's progress 3:05:58. The presentation focused on the development of a banked credit system designed to manage sewer capacity under the consent decree.

Martin outlined the task force's key decisions and discussed the implementation challenges associated with establishing the new system. The banked credit approach represents a mechanism for tracking and allocating sewer capacity resources in compliance with the consent decree requirements.

The presentation was informational in nature, providing the meeting attendees with an overview of the CAP task force's work and the current status of the program's development. No formal action or decision was required as a result of this agenda item.