Council Work Session - Virtual Meeting Packet

Summary

Meeting Overview

The Lexington-Fayette Urban County Council convened virtually on June 23, 2020, at 3:00 PM, with Mayor Linda Gorton presiding over the session. The council addressed three agenda items during the meeting, including an informational presentation on the LCC/CBC Financing Proposal and approval of routine business matters. The council took three votes throughout the session, with two items receiving approval and one serving as an informational presentation. Two members of the public provided comments during the designated public comment period. The meeting successfully concluded its business agenda, with the council approving both the summary and new business items that were brought forward for consideration.

Attendance

The meeting on June 23, 2020 had strong attendance with 12 members present and 3 absent.

Present: • Vice Mayor Kay • Moloney • Ellinger • J. Brown • McCurn • Swanson • Farmer • Evans • F. Brown • Mossotti • Reynolds • Plomin

Absent: • Lamb • Worley • Bledsoe

Late: • None

No members arrived late to the meeting.

Votes and Decisions

The council took three votes during the June 23, 2020 meeting, all related to the LCC/CBC financing proposal.

Motion to Reorder Agenda 2:00 Councilmember Farmer moved to place the presentation about the LCC/CBC financing proposal as the first item on the agenda. The motion passed unanimously with all 12 members voting in favor: Kay, Moloney, Ellinger, J. Brown, McCurn, Swanson, Farmer, Evans, F. Brown, Mossotti, Reynolds, and Plomin.

Motion to Schedule Bond Ordinance Reading 45:00 Farmer moved to place the bond ordinance on the docket for first reading at the July 7 meeting, with Kay providing the second. The motion passed unanimously 12-0, with the same 12 councilmembers voting in favor.

Motion to Schedule Council of the Whole Meeting 2:00:00 Kay moved to schedule a Council of the Whole meeting on August 4 for an update on the financing proposal. This motion passed by roll call vote 11-1. Eleven members voted in favor: Kay, Moloney, Ellinger, J. Brown, McCurn, Swanson, Farmer, Evans, F. Brown, Mossotti, and Reynolds. Plomin cast the sole dissenting vote.

All three motions advanced the LCC/CBC financing proposal through the council's procedural requirements, with broad support from councilmembers. The unanimous votes on agenda reordering and scheduling the bond ordinance reading demonstrated strong initial support, while the single dissenting vote on the August meeting scheduling represented the only opposition recorded during the session.

Budget and Financial Actions

The council considered two significant grant authorizations totaling over $1.5 million in federal and state emergency funding.

Federal Coronavirus Emergency Supplemental Funding (L0570-20) The council reviewed authorization to accept $478,748 in federal Coronavirus Emergency Supplemental Funding. This grant award would benefit the Lexington Police Department and Community Corrections, providing additional resources to address pandemic-related operational needs and public safety requirements during the COVID-19 emergency response period.

Kentucky Emergency Management Grant (L0580-20) A larger grant authorization was considered involving $1,036,765 from the Kentucky Department of Military Affairs, Division of Emergency Management. This substantial award would require the city to execute a formal agreement with the state agency. The funding represents a significant investment in local emergency management capabilities and disaster preparedness infrastructure.

Both grant authorizations represent external funding opportunities that would not require local tax revenue, instead leveraging federal and state resources to enhance public safety and emergency response capabilities in Lexington. The combined $1,515,513 in grant funding would provide substantial support for police operations, community corrections programs, and emergency management services during a critical period of heightened public health and safety needs.

These financial actions demonstrate the city's efforts to maximize available external funding sources to maintain essential services and enhance emergency response capacity without placing additional burden on local taxpayers during the economic challenges associated with the COVID-19 pandemic.

Public Comment

The public comment period featured two speakers who addressed the council regarding the LCC/CBC financing proposal.

Laura Farnsworth spoke first 1:00:00, expressing her appreciation for the council's support and leadership during what she characterized as uncertain times. Her comments focused on supporting the LCC/CBC financing proposal under consideration.

Mary Quinn Ramer followed 1:01:00, also speaking in favor of the LCC/CBC financing proposal. She thanked the council members for their support and leadership on the matter.

Both speakers offered supportive comments regarding the financing proposal, with no opposition or concerns raised during the public comment period. The comments were brief and focused specifically on expressing gratitude to the council for their handling of the LCC/CBC financing issue.

Contested Items

The meeting featured one significant point of contention regarding the council's meeting schedule during an upcoming break period [timestamp not available].

Meeting Schedule During Council Break

A heated discussion emerged over whether the council should continue holding weekly meetings during the scheduled council break. The debate centered on the need to maintain regular updates on the Mayor's task force activities and ongoing community issues during what would typically be a recess period.

Council members engaged in substantial back-and-forth regarding the necessity and practicality of maintaining their regular meeting schedule. Some members argued that continued meetings were essential to stay informed about the Mayor's task force progress and to remain responsive to community concerns that might arise during the break. Others appeared to have concerns about the proposed schedule, though the specific positions of individual council members and the final outcome of this debate were not detailed in the available meeting records.

The discussion was characterized as particularly heated, suggesting strong feelings on both sides of the issue. The disagreement highlighted tensions between maintaining council oversight and allowing for the traditional break period that councils typically observe.

The resolution of this scheduling dispute and whether the council ultimately decided to hold meetings during the break period was not specified in the available documentation.

LCC/CBC Financing Proposal

5:00

Chip Sutherland of Baird Securities presented a financing proposal to address financial challenges facing the Lexington Convention Center (LCC) and Central Bank Center (CBC) resulting from the COVID-19 pandemic. The presentation outlined potential solutions including the issuance of new bonds to help stabilize the facilities' financial position.

John Merchant also participated as a key speaker during the discussion of this financing proposal. The presentation focused on how the pandemic had impacted the convention center's revenue streams and operational capacity, necessitating alternative financing mechanisms to maintain the facility's viability.

The proposal from Baird Securities represented a strategic response to the unprecedented financial pressures placed on convention and event facilities during the pandemic, when gatherings and large events were significantly restricted or cancelled entirely.

This agenda item was informational in nature, with no formal action taken during the meeting. The presentation served to brief attendees on potential financing options and strategies being considered to address the LCC/CBC's financial situation during the ongoing public health crisis.

Approval of Summary

1:30:00

The board considered approval of the June 16, 2020 work session summary during this agenda item.

Key speakers McCurn and Plomin participated in the discussion regarding the summary from the previous work session held on June 16, 2020.

The agenda item was categorized as a discussion item, allowing board members to review the accuracy and completeness of the documented proceedings from the earlier meeting before taking action.

Following the discussion, the June 16, 2020 work session summary was approved by the board.

New Business

1:45:00

The board addressed new business items during this portion of the meeting, with Kay and McCurn serving as the primary speakers for the discussion.

The main focus of the new business discussion centered on auditing firm contracts. While the specific details of the contracts were not provided in the available materials, the item required board consideration and approval.

Kay and McCurn presented the matter to the board, leading the discussion on the proposed auditing firm arrangements. The board members reviewed the contracts and engaged in deliberation regarding the terms and selection of auditing services.

Following the presentation and discussion, the board voted to approve the new business items, including the auditing firm contracts. The approval indicates that the board found the proposed arrangements acceptable and in the organization's best interests.

The successful approval of these new business items allows the organization to move forward with the auditing firm contracts and any other matters that were included in this agenda item.