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Council Work Session

June 27, 2023 · 22,900 words

Summary

Meeting Overview

The Lexington-Fayette Urban County Council convened on June 27, 2023, at 3:00 PM in the Council Chamber in Lexington, Kentucky, with Mayor Linda Gorton presiding. The meeting addressed two primary agenda items, including the approval of a Short-term Rental Ordinance and an informational presentation on the Planning and Development Approval Process Study. Council members conducted two formal votes during the session and heard from two members of the public during the comment period. The meeting resulted in the passage of new regulations governing short-term rentals in the community, while also providing council members with updated information on development processes within the urban county.

Attendance

All council members were present for the June 27, 2023 meeting.

Present: • Mayor Linda Gorton • Vice Mayor Dan Wu • Council Member James Brown • Council Member Chuck Ellinger • Council Member Hannah LeGris • Council Member Liz Sheehan • Council Member Preston Worley • Council Member Fred Brown • Council Member Whitney Baxter • Council Member Jennifer Reynolds • Council Member Kathy Plomin • Council Member Tayna Fogle • Council Member Shayla Lynch • Council Member Brenda Monarrez • Council Member Denise Gray • Council Member Dave Sevigny

Absent: None

Late: None

Votes and Decisions

The council took two unanimous votes on amendments to the short-term rental zoning ordinance during the meeting.

Amendment to Planning Commission's Short-Term Rental Ordinance 1:30 Council Member James Brown motioned to amend the planning commission's recommended short-term rental zoning ordinance text amendment, with Council Member Liz Sheehan providing the second. The motion passed unanimously by voice vote with 14 ayes and 0 nays. All council members present voted in favor: Vice Mayor Dan Wu, Council Member James Brown, Council Member Hannah LeGris, Council Member Liz Sheehan, Council Member Preston Worley, Council Member Fred Brown, Council Member Whitney Baxter, Council Member Jennifer Reynolds, Council Member Kathy Plomin, Council Member Tayna Fogle, Council Member Shayla Lynch, Council Member Brenda Monarrez, Council Member Denise Gray, and Council Member Dave Sevigny.

Amendment to Section 13-77-b-5 2:15 Council Member Liz Sheehan motioned to amend section 13-77-b-5 of the short-term rental ordinance, with Council Member James Brown seconding the motion. This amendment also passed unanimously by voice vote with 14 ayes and 0 nays. The same 14 council members who voted on the first motion all voted in favor of this amendment as well.

Both votes demonstrated complete council consensus on the proposed changes to the short-term rental regulations, with no opposition or abstentions recorded for either motion.

Budget and Financial Actions

The meeting addressed two significant financial items totaling over $884,000 in expenditures and contracts.

County Road Aid Appropriation The council approved Resolution 0663-23, appropriating $812,955.10 to the Fayette Fiscal Court for County Road Aid projects in the Rural Service Area. This substantial appropriation represents the largest financial action of the meeting and will fund road infrastructure improvements in rural portions of the county.

Engineering Services Contract Resolution 0664-23 authorized a contract with Stantec Consulting Services, Inc. for $71,737.00 to provide engineering services for the Furlong Drive Greenway BMP (Best Management Practices) Project. This contract supports environmental infrastructure development as part of the city's greenway system expansion.

The combined financial commitments of $884,692.10 reflect ongoing investments in both rural road maintenance and urban environmental infrastructure projects within the jurisdiction.

Public Comment

Two speakers addressed the board during the public comment period, both focusing on concerns regarding the proposed short-term rental ordinance.

Crist 0:10 expressed opposition to the proposed short-term rental ordinance, arguing that it is poorly written and could negatively impact existing legal short-term rental operations. Crist raised concerns about the potential harm the ordinance could cause to property owners who are currently operating short-term rentals within legal parameters.

Gary Cheddester 0:15 also spoke about the short-term rental ordinance, specifically requesting that children be excluded from occupancy count calculations. Cheddester argued that larger homes have the capacity to accommodate more adults, and that including children in occupancy limits may unnecessarily restrict the use of these properties.

Both speakers focused their comments on technical aspects of the proposed short-term rental regulations, highlighting concerns about how the ordinance would affect property owners and the practical implementation of occupancy restrictions.

Contested Items

The primary contested item during the June 27, 2023 meeting was the proposed short-term rental ordinance, which drew significant community opposition.

Short-term Rental Ordinance

Several community members voiced concerns about the proposed short-term rental ordinance during the public comment period. The opposition centered on two main issues: potential negative impacts on existing rental properties and concerns about how the ordinance might affect neighborhood dynamics.

Community members who spoke against the ordinance expressed worry that the new regulations could harm current short-term rental operators and potentially disrupt the character of their neighborhoods. The specific details of their concerns regarding existing rentals and neighborhood impacts were not elaborated upon in the available meeting materials.

The outcome of this contested item was not specified in the provided information, leaving unclear whether the council took action on the ordinance or deferred the matter for further consideration.

*Note: Specific transcript timestamps are not available for this meeting summary.*

Short-term Rental Ordinance

1:00 The council discussed a proposed short-term rental ordinance that would establish new regulations for vacation rental properties within the city limits.

Council Member James Brown presented the ordinance, which includes amendments to occupancy limits and licensing requirements for short-term rental operators. The proposed regulations would require property owners to obtain proper licensing before operating vacation rentals and would establish specific occupancy limits based on property size and type.

Council Member Liz Sheehan participated in the discussion regarding the ordinance's provisions. The debate centered on balancing the needs of property owners who operate short-term rentals as a source of income with concerns about neighborhood impacts and housing availability for long-term residents.

Key components of the ordinance include: • Mandatory licensing requirements for all short-term rental operators • Revised occupancy limits based on property specifications • Enhanced oversight and enforcement mechanisms

The council ultimately approved the short-term rental ordinance, establishing the new regulatory framework for vacation rental properties. The approved ordinance will require existing short-term rental operators to comply with the new licensing requirements and occupancy restrictions within a specified timeframe.

This regulatory action represents the city's effort to create a structured approach to managing short-term rentals while addressing community concerns about their impact on residential neighborhoods and local housing markets.

Planning and Development Approval Process Study

3:00

Philip Walker presented recommendations for improving the city's planning and development approval process during this informational presentation. The study focused on identifying ways to streamline procedures and enhance efficiency for development projects within the municipality.

Walker's presentation highlighted two primary recommendations emerging from the study:

  • Streamlining infill development processes - The study identified opportunities to reduce bureaucratic barriers and expedite approval timelines for infill development projects, which are typically smaller-scale developments that fill in vacant or underutilized parcels within existing neighborhoods.
  • Establishing a development liaison position - The recommendation includes creating a dedicated staff position to serve as a single point of contact for developers navigating the approval process, aimed at improving communication and coordination between applicants and city departments.

The presentation was delivered as an informational item, meaning no formal action was required from the governing body at this meeting. The study appears to be part of ongoing efforts to evaluate and improve municipal processes related to planning and development approvals.

The recommendations suggest a focus on both procedural improvements and staffing solutions to address potential inefficiencies in the current system. By streamlining infill development specifically, the city appears to be targeting a development type that can contribute to urban density and efficient land use while potentially facing fewer regulatory hurdles than larger-scale projects.

No specific timeline for implementation or additional details about the study methodology were noted in the available information from this presentation.

Decisions

  • Motion — passed (0-0): Approve Requested Rezonings/ Docket Approval
  • Motion — passed (0-0): amend the Planning Commission’s Recommended Short Term Rental Zoning Ordinance Text Amendment to change the use of Hosted Short Term Rentals (occupancy greater than 12) from Conditional to Accessory, and the use of Un- Hosted Short Term Rentals from Conditional to Principal, in B-1, P-1, MU-1, MU-2, and MU-3 zones
  • Motion — passed (3-13): amend the Planning Commission’s Recommended Short Term Rental Zoning Ordinance Text Amendment to remove the phrase “and principal uses” from Section 3-13(c) and replace with the phrase “uses in residential zones”
  • Motion — passed (0-0): remove from table an item relating to proposed changes to the Code of Ordinances of the Lexington-Fayette Urban County Government relating to short term rentals, including but not limited to short term rental license requirements and administrative procedures relating to short term rentals, and to place an ordinance regarding same on the docket for the Council meeting on Thursday, June 29, 2023
  • Motion — passed (0-0): approve placing the Code of Ordinances Short Term Rental on docket for Thursday, June 29, 2023 (as amended)
  • Motion — passed (13-77): amend Section 13-77(b)(5) (contained in Section 3 of the Short Term Rental Ordinance) to replace the existing text with the following: “(5) Approval by the Division of Planning that the short term rental is a hosted short term rental or is otherwise a legal nonconforming hosted or un-hosted short term rental under Section 3- 13(i) and (j) of the Zoning Ordinance; that the un-hosted short term rental has a conditional use permit issued by the board of Adjustment if applicable; that the hosted short term rental with an occupancy greater than twelve (12) individuals has a conditional use permit issued by the Board of Adjustment, if applicable; or that the short term rental otherwise complies with Zoning Ordinance”
  • Motion — passed (13-77): amend Section 13-77(f) (contained in Section 3 of the Short Term Rental Ordinance) to remove reference to un-hosted short term rentals
  • Motion — passed (13-77): amend Section 13-77(h)(5) (contained in Section 3 of the Short Term Rental Ordinance) to remove reference to un-hosted short term rentals
  • Motion — passed (13-79): amend Section 13-79(a)(7) (contained in Section 5 of the Short Term Rental Ordinance) to reference the zoning ordinance for the maximum occupancy of short term rentals
  • Motion — passed (13-77): amend Section 13-77(b) (contained in Section 3 of the Short Term Rental Ordinance) to add subsection 11 to read: “(11) For short term rentals utilizing septic tanks, evidence indicating that the septic tank is of sufficient size to accommodate the occupancy requested in subsection (6)”
  • Motion — passed (0-0): approve changing the presentation name on the Thursday, June 29, 2023 docket from “Smoking Ban 20th Anniversary” to “Indoor Smoking Ordinance 20th Anniversary”
  • Motion — passed (0-0): place ordinance #8 (An Ordinance changing the zone from a Highway Service Business (B-3) zone to a Wholesale and Warehouse Business (B-4) zone, for 0.91 net (1.16 gross) acres, for property located at 763 Newtown Pike) on the docket without a public hearing
  • Motion — passed (0-0): approve the June 13, 2023 Work Session summary
  • Motion — passed (0-0): approve budget amendments
  • Motion — passed (0-0): approve new business
  • Motion — passed (0-0): approve an ordinance repealing and replacing ordinance no. 103-2014 in its entirety, and instead setting a minimum budgetary funding goal of one percent (1%) of the general fund revenue collected from the previous full fiscal year for the affordable housing fund, commencing with the fiscal year 2025 budget, and continuing to designate funding in the amount of at least $750,000.00 each fiscal year for the innovative and sustainable solutions to homelessness fund
  • Motion — passed (0-0): refer to the General Government and Planning Committee the Recommendations for Planning and Development Approval Process from today's presentation (#8 and 10 in packet). [Tighten Certification to lock in the requirements and establish a Development Liaison position]
  • Motion — passed (0-0): approve the Mayor's Report
  • Motion — passed (0-0): approve the Mayor's Report - Price Contract Bid Recommendations