Budget Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Budget Committee Chair Person Bill Hollander (D-9) Vice Chair Kevin Kramer (R-11) Committee Member Keisha Dorsey (D-3) Committee Member Barbara Sexton Smith (D-4) Committee Member Paula McCraney (D-7) Committee Member Pat Mulvihill (D-10) Committee Member Cindi Fowler (D-14) Committee Member Scott Reed (R-16) Committee Member Markus Winkler (D-17) Committee Member Anthony Piagentini (R-19) Committee Member Brent Ackerson (D-26) Thursday, June 18, 2020 4:30 PM Council Chambers Call to Order Chair Hollander called the meeting to order at 4:35 p.m. Roll Call Chair Hollander introduced the committee members and non-committee members present. A quorum was established. *NOTE: All committee members and non-committee members present attended virtually. Present: 11 - Chair Person Bill Hollander (D-9), Vice Chair Kevin Kramer (R-11), Committee Member Keisha Dorsey (D-3), Committee Member Barbara Sexton Smith (D-4), Committee Member Paula McCraney (D-7), Committee Member Pat Mulvihill (D-10), Committee Member Cindi Fowler (D-14), Committee Member Scott Reed (R-16), Committee Member Markus Winkler (D-17), Committee Member Anthony Piagentini (R-19), and Committee Member Brent Ackerson (D-26) Non-Committee Member(s) Council Member Donna Purvis (D-5) and Council Member Brandon Coan (D-8) Clerk(s) Sonya Harward, Clerk Lisa Franklin-Gray, Assistant Clerk Pending Legislation Chair Hollander announced that there would be a special Budget Committee meeting on Monday, June 22, 2020 at 3:00 p.m. to discuss item 3 (O-194-20) and item 4 (O-196-20) regarding the FY 2021 Capital and Operating Budgets, and amendments will be proposed for both items. Louisville Metro Government Page 1 Budget Committee Action Summary - Final June 18, 2020 1. O-250-20 AN ORDINANCE OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT, KENTUCKY, AUTHORIZING THE ISSUANCE OF ITS TAXABLE REVENUE BONDS, SERIES 2020 (LOUISVILLE MEDICAL CENTER STEAM AND CHILLED WATER PLANT PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $21,000,000 FOR THE PURPOSES OF (A) PAYING ALL OR A PORTION OF THE COSTS OF CONVERTING THE STEAM AND CHILLER WATER PLANT OF THE CORPORATION TO A WHOLLY-NATURAL GAS POWERED STEAM GENERATING FACILITY, INCLUDING WITHOUT LIMITATION THE ACQUISITION, CONSTRUCTION, INSTALLATION, AND EQUIPPING OF (I) THREE NEW, HIGHER CAPACITY BOILERS DESIGNED TO COMBUST NATURAL GAS AND FUEL OIL IN REPLACEMENT OF THE EXISTING BOILERS IDENTIFIED AS BOILERS B-1, B-2, AND B-3, (II) NEW BOILER CONTROL SYSTEMS, (III) A NEW FUEL OIL STORAGE AND SUPPLY SYSTEM FOR THE STEAM GENERATING FACILITIES OF THE PLANT, AND (IV) OTHER REAL PROPERTY IMPROVEMENTS, MACHINERY, AND EQUIPMENT NECESSARY AND RELATED TO ANY OF THE FOREGOING, AND (B) PAYING COSTS OF ISSUANCE OF THE SERIES 2020 BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND TRUST INDENTURE, LOAN AGREEMENT, AND BOND PURCHASE AGREEMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF AN AMENDED AND RESTATED STEAM AND CHILLED WATER PLANT USER AGREEMENT; AUTHORIZING AND APPROVING CERTAIN OTHER MATTERS, INCLUDING THE EXECUTION OF RELATED DOCUMENTS, IN CONNECTION WITH THE SALE AND ISSUANCE OF THE SERIES 2020 BONDS. Sponsors:Primary Barbara Sexton Smith (D-4) Attachments: O-250-20 V.1 061120 Bond for Louisville Medical Center Steam & Chilled Water Plant Project.pdf O-250-20 V.1 061120 ATTACH EXHIBIT A - Bond Purchase Agreement.pdf O-250-20 V.1 061120 ATTACH EXHIBIT B - Bond Trust Indenture.pdf O-250-20 V.1 061120 ATTACH EXHIBIT C - Loan Agreement.pdf O-250-20 V.1 061120 ATTACH EXHIBIT D - Amended and Restated Steam and Chilled Water Plant User Agreement.pdf LMC - Baird 2020 - Preliminary Official Statement - 4830-4343-2124.2.pdf Chair Hollander noted that this is a revenue bond that Louisville Metro will not be responsible for repaying. A motion was made by Committee Member Winkler, seconded by Committee Member Sexton Smith, that this Ordinance be recommended for approval. Mark Franklin, Bond Counsel for Louisville Medical Center, spoke to this item. He explained that the Steam and Chiller Water Plant was built in the 1950s, was partially upgraded in the 1970s, and some of the equipment now needs to be replaced because it is old and out-dated, and this bond will be used to pay for that equipment. He stated that the equipment produces heating for the Louisville Metro Government Page 2 Budget Committee Action Summary - Final June 18, 2020 hospitals and medical buildings in the Medical Center downtown, and the upgrades will be more environmentally friendly due to the change from coal-powered boilers to natural gas-powered boilers. He stated that the Ordinance also approves the user agreement where all parties that use the plant agree to share in the cost of the plant. He also confirmed that Louisville Medical Center and not Louisville Metro is responsible for all payments with respect to the bonds. Committee Member Sexton Smith briefly spoke to the item as the sponsor and the plant is in her district. The motion carried by the following vote and the Ordinance was sent to the Consent Calendar: Enactment No: Ordinance 071-2020 2. O-190-20 AN ORDINANCE AMENDING ORDINANCE NO. 082, SERIES 2019 RELATING TO THE FISCAL YEAR 2019-20 CAPITAL BUDGET FOR THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT BY REALLOCATING $99,053.26 OF PARKS & RECREATION POOL REPAIRS FUNDING TO A NEW PROJECT TITLED D14 BLEVINS GAP REPAVING UNDER PUBLIC WORKS & ASSETS. Sponsors:Primary Cindi Fowler (D-14) Attachments: O-190-20 PROPOSED CAM 061820 Reallocate FY20 Capital Budget Funds from Pool Repairs to D14 Blevins Gap Repaving.pdf O-190-20 V.1 051420 Reallocate FY20 Capital Budget Funds from Pool Repairs to D14 Blevins Gap Repaving.pdf This item remained held. Louisville Metro Government Page 3 Budget Committee Action Summary - Final June 18, 2020 3. O-194-20 AN ORDINANCE RELATING TO THE 2020-2021 CAPITAL BUDGET FOR THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT INCLUDING APPROPRIATIONS AND AUTHORIZATIONS OF FUNDS FOR GENERAL CONSTRUCTION, MAINTENANCE, REPAIR AND IMPROVEMENT OF THE FACILITIES AND ASSETS OF THE GOVERNMENT OF LOUISVILLE/JEFFERSON COUNTY AND OTHER LOUISVILLE METRO-SUPPORTED ACTIVITIES FOR 2020-2021 (AS AMENDED). Sponsors:Primary David James (D-6) and Primary Bill Hollander (D-9) Attachments: O-194-20 V.3 FAM 062520 FY 2020-2021 Capital Budget.pdf O-194-20 FAM 1 062520 - Capital Budget (Hollander).pdf O-194-20 FAM 2 062520 - Capital Budget (Ackerson).pdf O-194-20 V.2 062220 FY 2020-2021 Capital Budget.pdf O-194-20 PROPOSED FAM 062520 (CM Ackerson).pdf 062220 OMB's FY21 Friendly Amendments to Operating and Capital Ordinances.pdf 062220 Amendments to FY21 Capital Budget Standard Language.pdf 062220 Amendment FY21 Capital and Operating Budgets - Spreadsheet Excluding NDF, CD, CIF.pdf 062220 Amendment FY21 Capital and Operating Budgets - Spreadsheet NDF, CD, CIF.pdf O-194-20 V.1 051420 FY 2020-2021 Capital Budget.pdf This item remained held. Enactment No: Ordinance 072-2020 Louisville Metro Government Page 4 Budget Committee Action Summary - Final June 18, 2020 4. O-196-20 AN ORDINANCE RELATING TO THE 2020-2021 OPERATING BUDGET FOR THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT INCLUDING APPROPRIATIONS AND AUTHORIZATIONS FOR OPERATION, MAINTENANCE, SUPPORT, AND FUNCTIONING OF THE GOVERNMENT AND ITS VARIOUS OFFICERS, DEPARTMENTS, COMMISSIONS, INSTITUTIONS, AGENCIES, AND OTHER METRO-SUPPORTED ACTIVITIES (AS AMENDED). Sponsors:Primary David James (D-6) and Primary Bill Hollander (D-9) Attachments: O-196-20 V.3 FAM 062520 FY 2020-2021 Operating Budget.pdf O-196-20 V.2 062220 ATTACH Schedules A through E FY 2020-2021 Operating Budget.pdf O-196-20 Technical Corrections Read Into the Record for Operating Budget.pdf O-196-20 FAM 1 062520 - Operating Budget (Hollander).pdf O-196-20 FAM 2 062520 - Operating Budget (Shanklin).pdf O-196-20 FAM 3 062520 - Operating Budget (Purvis).pdf O-196-20 V.2 062220 FY 2020-2021 Operating Budget.pdf 062220 OMB's FY21 Friendly Amendments to Operating and Capital Ordinances.pdf 062220 Amendments FY21 Operating Budget Standard Language.pdf 062220 Amendment FY21 Capital and Operating Budgets - Spreadsheet Excluding NDF, CD, CIF.pdf 062220 Amendment FY21 Capital and Operating Budgets - Spreadsheet NDF, CD, CIF.pdf O-196-20 V.1 051420 FY 2020-2021 Operating Budget.pdf O-196-20 V.1 051420 ATTACH Schedules A throguh E FY 2020-2021 Operating Budget.pdf This item remained held. Enactment No: Ordinance 073-2020 5. R-053-20 A RESOLUTION APPROVING THE RELEASE OF METRO GOVERNMENT’S RIGHT OF REVERTER PERTAINING TO PROPERTY DEEDED TO LOUISVILLE URBAN LEAGUE SPORTS AND LEARNING COMPLEX, INC. AS SURPLUS. Sponsors:Primary Bill Hollander (D-9) Attachments: R-053-20 V.1 040920 Reverter Release for Louisville Urban League Sports and Learning Complex, Inc.pdf 041620 Photo IMG_6242.pdf 041620 Photo IMG_6250.pdf This item remained held. Louisville Metro Government Page 5 Budget Committee Action Summary - Final June 18, 2020 6. O-036-20 AN ORDINANCE AMENDING CHAPTER XX OF THE LOUISVILLE METRO CODE OF ORDINANCES BY CREATING A NEW SECTION REGARDING A SURCHARGE ON TICKETS AND A TAX ON RESTAURANT GROSS RECEIPTS. Sponsors:Primary Brent Ackerson (D-26) Attachments: O-036-20 V.1 020620 New LMCO Section for Surcharge on Tickets & Tax on Restaurant Gross Receipts.pdf This item remained held. Adjournment Without objection, Chair Hollander adjourned the meeting at 4:45 p.m. *NOTE: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council Meeting on June 25, 2020. Louisville Metro Government Page 6