Urban County Council Work Session

Summary

Meeting Overview

The Urban County Council met on March 12, 2013, at 3:00 p.m. in the Council Chamber on the 2nd Floor of the Government Center in Lexington, Kentucky, with Mayor Jim Gray presiding. The council conducted 18 motions and votes during the session and heard 1 public comment from a member of the community. The meeting included 13 agenda items covering a range of municipal business, including approval of summaries and new business items, as well as informational presentations and reports.

Key actions taken during the meeting included approval of Neighborhood Development Funds for March 12, 2013, and approval of new business. The council also received informational updates on requested rezonings, budget amendments, and a summary of the Public Safety Committee from March 2013. Two presentations were delivered during the session: one on the Annual Road Resurfacing Process and another on a Police & Fire Pension Reform Agreement. Additionally, the council heard reports from individual council members and the Mayor, and received public comment on issues not appearing on the agenda before adjourning.

Attendance

Present: Linda Gorton, Chuck Ellinger, Steve Kay, Chris Ford, Shevawn Akers, Julian Beard, Bill Farmer Jr., George Myers, Kevin Stinnett, Harry Clarke, Peggy Henson, and Ed Lane.

Absent: Jennifer Scutchfield, Jennifer Mossotti, and Diane Lawless.

Late: None.

Votes and Decisions

The council passed all motions and measures brought before it during this meeting.

Procedural Motions

The council unanimously approved several procedural items:

• Motion to schedule a Special Council Meeting on March 12th, 2013 at 6:00pm, moved by Chuck Ellinger and seconded by Harry Clarke 3:10
• Motion to approve the Docket for the March 7th, 2013 Council Meeting, moved by Kevin Stinnett and seconded by George Myers 3:42
• Motion to approve the amended February 26th, 2013 Work Session summary, moved by Julian Beard and seconded by Linda Gorton 3:42
• Motion to approve the budget amendments, moved by Bill Farmer Jr. and seconded by Shevawn Akers 4:13
• Motion to approve the new business items, moved by Julian Beard and seconded by Linda Gorton 4:13
• Motion to approve the Neighborhood Development Funds list, moved by George Myers and seconded by Chuck Ellinger 4:48
• Motion to cancel the Special Council Meeting scheduled for March 12th, 2013, moved by Linda Gorton and seconded by Steve Kay 4:48
• Motion to refer a review of the LFUCG's Exaction Program into the Planning and Public Works Committee, moved by Kevin Stinnett and seconded by Peggy Henson 4:48
• Motion to approve the Mayor's Report, moved by Chuck Ellinger and seconded by Chuck Ellinger 4:48
• Motion to adjourn, moved by Kevin Stinnett and seconded by Chuck Ellinger 4:48
• Motion to grant Scott Shapiro 30 minutes for the police and fire pension reform presentation, moved by Linda Gorton and seconded by Bill Farmer Jr. 48:46

Legislation

The following measures passed by voice vote 7:26:

• L0209-13: Authorization to extend the existing resurfacing contract with ATS Construction for one year (no budgetary impact)
• L0210-13: Authorization to accept award from LG&E and KU Energy LLC for tree planting project under The Plant for the Planet matching grant program (50% match of $4,000 required; budget amendments in process)
• L0212-13: Authorization to approve a permanent Ingress and Egress Easement granted to Kentucky American Water Company (KAWC) for the Jacobson Pumping Station (no budgetary impact)
• L0232-13: Authorization to accept donation of a MedReturn Drug Collection Box from the Citizen Police Academy Alumni Association (CPAAA) (no budgetary impact)
• L0234-13: Authorization to execute an agreement with ChipsRewards to comply with HIPAA (no budgetary impact)
• L0235-13: Authorization to amend Section 22-5 of the Code of Ordinances creating one Equipment Operator position (Grade 108N) in the Division of Youth Services (FY 2013 impact: $6,303.09 for 4 pay periods; funds budgeted)
• L0236-13: Authorization to execute a Catering Contract with Hyatt Regency Lexington for the Senior Intern Luncheon on June 14, 2013 (not to exceed $5,500; funds budgeted)

Budget and Financial Actions

The meeting included approval of several financial actions and contractual agreements:

Contracts and Agreements

• Extension of resurfacing contract with ATS Construction for one year (L0209-13)
• Execution of agreement with ChipsRewards to comply with HIPAA requirements (L0234-13)
• Catering contract with Hyatt Regency Lexington for Senior Intern Luncheon on June 14, 2013, in the amount of $5,500.00 (L0236-13)

Grants and Donations

• Acceptance of $4,000.00 award from LG&E and KU Energy LLC for a tree planting project (L0210-13)
• Acceptance of donation of MedReturn Drug Collection Box valued at $695.00 from Citizen Police Academy Alumni Association (L0232-13)

Easement and Property

• Approval of permanent Ingress and Egress Easement for Kentucky American Water Company (L0212-13)

Personnel and Appropriations

• Creation of one Equipment Operator position (Grade 108N) in the Division of Youth Services with an appropriation of $6,303.09 (L0235-13)

Public Comment

3:10

Mr. Mundy was called to the podium to provide public comment on agenda items. However, no further remarks were made during his time at the podium.

Contested Items

Three significant areas of disagreement emerged during the meeting:

Pension Reform Rate of Return

Council members Julian Beard and Chris Ford raised concerns about the assumed 7.5% rate of return for pension investments. They questioned whether this rate was realistic and sustainable, citing the pension fund's past volatility and the current low market returns. This disagreement centered on whether the financial assumptions underlying the pension reform were sound and achievable.

Disability Pension Benefits

Council members expressed heated concerns about proposed changes to disability pension benefits. The discussion focused on two key questions: whether the city has local control over disability pension policy, and whether additional reforms beyond the current agreement would be necessary. Members appeared uncertain about the scope of the city's authority and the adequacy of the proposed changes.

Investment Policy and Fund Management

Council member Kevin Stinnett advocated for changes to the fund's investment management strategy. He suggested rebidding the investment manager contract and exploring the use of multiple investment managers to improve returns. Stinnett expressed concern that relying on a single manager created a risk of stagnation and made it difficult to sustain the required 7.5% rate of return on investments.

These three contested items reflected broader concerns about the feasibility of the pension reform plan, the city's control over key policy decisions, and the investment strategy needed to support the proposed benefit structure.

Public Comment - Issues on Agenda

3:10

The council opened the meeting to public comment on issues appearing on the agenda. Mr. Mundy was called to speak during this portion of the meeting. However, no substantive comments were made during this public comment period.

Requested Rezonings / Docket Approval

3:42

No docket was scheduled for approval during this meeting, and no rezonings were requested. The council proceeded directly to the next agenda item.

Approval of Summary

The council considered approval of the amended February 26th, 2013 Work Session summary. 3:42

Key speakers on this item included Julian Beard and Linda Gorton.

The council approved the amended summary without dissent.

Budget Amendments

4:13

No budget amendments were presented for approval during this meeting. This agenda item was noted as informational, and the council proceeded directly to new business without requiring discussion or action on budget-related matters.

New Business

4:13

The council approved new business items without dissent. Key speakers on this agenda item included Julian Beard and Linda Gorton.

The approved items encompassed contract extensions, grants, easements, donations, and the creation of a new position. No concerns or objections were raised during the discussion, and the council voted unanimously to approve all new business matters presented.

Neighborhood Development Funds, March 12, 2013

4:48

The council considered a presentation on neighborhood development funding, with George Myers and Linda Gorton serving as key speakers on this agenda item.

The council approved a list of 10 neighborhood organizations to receive funding totaling $8,030.00. These funds were designated to support various community projects across the neighborhoods, including:

• Outreach initiatives
• Education programs
• Maintenance projects
• Youth programs

The funding distribution represented the council's commitment to supporting grassroots community development efforts through multiple neighborhood-based organizations.

Outcome: The neighborhood development funds were approved.

Public Safety Committee Summary March 2013

Council Member Peggy Henson presented a summary of the Public Safety Committee meeting 5:22.

Items Approved

The committee approved a 24-hour nuisance abatement form.

FEMA Hazard Mitigation Grant Update

An update on the FEMA Hazard Mitigation Grant was provided to the council.

Referral List Changes

Several items were removed from the committee's referral list.

Outcome

This presentation was informational in nature.

Presentation: Annual Road Resurfacing Process

Kevin Wente from the Department of Environmental Quality and Public Works presented an overview of the annual road resurfacing process 7:26. The presentation covered pavement management practices, funding allocation procedures, and upcoming GIS-based evaluation tools for road assessment.

Key Topics Covered

The presentation addressed the systematic approach to identifying and prioritizing roads for resurfacing, including how the department evaluates pavement conditions and allocates resources for annual projects.

Council Questions and Concerns

Council members raised several questions during the presentation:

• Warranty issues: Questions were raised regarding warranty coverage for resurfaced roads
• Base failure repairs: Council members inquired about procedures for addressing base failures during the resurfacing process
• Road weighting: Questions were posed about how road usage and traffic weight factors into prioritization decisions

Participants

In addition to Kevin Wente, the following council members participated in the discussion:

• George Myers
• Diane Lawless
• Julian Beard
• Bill Farmer Jr.
• Peggy Henson

Outcome

The agenda item was informational in nature, providing the council with details about the department's road resurfacing procedures and allowing for clarification of the process through council member questions.

Presentation: Police & Fire Pension Reform Agreement

Scott Shapiro, Chris Bartley, and Mike Sweeney presented a police and fire pension reform agreement that significantly reduces the city's long-term pension liability. The agreement reduces the unfunded liability from $296 million to $161 million through a combination of benefit modifications and city funding commitments.

Key Elements of the Agreement

The reform agreement was approved by the state legislature and awaited the governor's signature at the time of this presentation. The agreement includes specific benefit changes for police and fire personnel and establishes guaranteed city funding mechanisms to address the remaining unfunded liability.

Participants and Discussion

Multiple council members participated in the discussion, including Linda Gorton, Chuck Ellinger, Kevin Stinnett, Peggy Henson, Chris Ford, Shevawn Akers, Bill Farmer Jr., George Myers, Harry Clarke, and Ed Lane. Their engagement indicates broad council interest in the pension reform initiative.

Outcome

The presentation was informational in nature, with the agreement having already secured state legislative approval. The item did not require a vote at this meeting, as the next step was awaiting the governor's signature on the legislation. The substantial reduction in unfunded liability—from $296 million to $161 million—represented a significant step toward addressing the city's long-term pension obligations while maintaining benefit structures for police and fire personnel.

Council Reports

Council members provided brief announcements regarding upcoming neighborhood meetings and community events during this informational segment of the meeting.

Speakers and Announcements

The following council members shared updates:

• Shevawn Akers
• Bill Farmer Jr.
• Peggy Henson
• Julian Beard

Events Announced

Council members announced upcoming neighborhood meetings and events in the following areas:

• Garden Springs Park
• Mitchell Avenue
• Pickett Home
• Robin Wood neighborhood

Outcome

This segment was informational in nature, with council members providing the community with notice of upcoming neighborhood gatherings and activities across various districts.

1:59:56

Mayor's Report

No mayor's report was presented at this meeting. 4:48

Public Comment - Issues Not on Agenda

2:03:47

No public comment was offered on issues not on the agenda.

Adjournment

The council adjourned following a motion by Kevin Stinnett, which was seconded by Chuck Ellinger. The motion passed without dissent. 2:03:47