I've done everything for you. You've done nothing for me. I'd say someday I'd have a whole lot of money. I'd be a millionaire. But when that didn't happen overnight, I found out how much you really cared. But all you want is a whole lot of money. All the rest is just jiving honey. I've done everything for you You've done nothing for me I've done everything for you You've done nothing for me I first met you, you didn't know how to love a man All those things about making love you didn't understand But now you know about everything I'm turning you in for memories I've done everything for you You've done nothing for me I've done everything for you You've done nothing for me I've done everything for you You've done nothing for me I've done everything for you You've done nothing for me And I'm going out on the town tonight And get as wild as I can be I'm gonna find out what it's real like to be loose, high and free I don't care what the people say I'm taking my mind, I'm changing the state I've done everything for you You've done nothing for me I've done everything for you You've done nothing for me You've done nothing for me You got nothing, you got nothing, you got nothing for me Thank you. guitar solo Thank you. We have a full agenda this afternoon for the Environmental Quality Committee and committee members. Welcome everybody. We do have a quorum. We do have a full agenda. We will try to leave to leave some time for public comment toward the end of the meeting. Before we get started with the formal agenda, the first item, of course, is the remedial measures plan implementation phase. And we thank the folks in water quality and from Hayes and Sawyer for giving us the phone book. and we look forward to your help in working this through it. But before we begin with that, Mayor Gray did want to say a few words on the podium. Welcome, Mayor. Thank you, Mr. Chairman, and thank you for allowing me to join you on this nice, beautiful, rainy day. appropriate for our subject. Before Hazen and Sawyer provides their update, I wanted to share with you all that I've had the chance to hear a little earlier in the year their update, or at that time, I think it was about three months ago, and it's very informing. I think it provides the structure and the organization that we have all known that is needed for this project. And it was reassuring to me and relieving to me when I heard their presentation. At the same time, some of the issues that have been presented to us in terms of control management, organizational issues that especially that council member lane has introduced as issues related to the management of the full project from the development of the scope of the project the detailed and conceptual engineering and then the implementation through actual purchasing and construction we all know is a significant project and after conversations with charlie and especially councilman lane and other council members and members of the administration we are working to find a an authority a specialist an expert if you will end construction management in cost and quality and scope control who would represent the interests of the city and work with Charlie. The role would be to, in a sense, to be our in-house project manager working with Charlie closely for the project. in this role, this either individual or firm would work with the consultants already on board, but with a particular focus on cost control, on scope management. As you all know, we've got a project that could, over the period, over the scope of the consent decree implementation, could run anywhere from a low of maybe $300 or $400 million, which is a big number, to over $500 million. So the wide body of opinion seems to be that we could be benefited by having someone on board who would keep a focused and careful eye on these essential management components of the project. So I want to thank the council, particularly Council Member Lane, for offering your suggestions about this issue and being on point on it. and want you to know that we are vigorously working on this assignment. Any questions while you have me right here, right now? Any questions from any members of the committee? Charlie's going to go on into the presentation, and Hazen saw your guys are as well. So thank you all very much. Thank you, Mr. Chairman, for allowing me to join you. Thank you, Mayor, for being here. We appreciate your presence and the message. Welcome, Mr. Martin. Thank you. My role is going to be limited here. I wasn't aware that the mayor was going to be here until a few minutes ago, and I'm glad that he was down here to share his perspective because I appreciate the support that he and the administration have given us to this point and moving forward. I wanted to kind of set the stage for the presentation that's really in your packet today, is that in the summer of 2010, we had hired Hazen and Sawyer, in addition to additional consultants as part of a team, to do really two things. It was to develop the sanitary sewer capital improvement plans necessary for submission and approval by EPA. The second part of what we had hired them to do was implement those approved capital plans. From that point of hiring them up until present time here, we've been really focused on the plan development phase, and we've been in this room several times talking about the two-year storm. We finally reached that point to where the council passed a resolution to that. And so now it's time to, even though we still have additional plans to finalize, we have that benchmark of a two-year storm. It's now time to focus on the implementation of those plans, as the mayor pointed out a few seconds ago. And we're focusing on those implementations based on assuming that EPA has approved our plans. The first one was submitted yet. We haven't heard back from them, but we're going to operate under that assumption. The implementation phase is particularly important for you folks today because new business item D in your work session packet is focused on the Hazen and Sawyer contract and allowing them to move to that implementation phase. I'll be here all day, and if you have questions about that, I'll be available to answer that. But first, I wanted to point out that today is an opportunity, I think, for the committee, for the council members to do three things. One is to revisit and challenge the qualifications of this implementation team. We welcome that. Second is to discuss and debate the components of a successful implementation. And third is firmly establish the lines of communication necessary for ongoing success. I think the mayor outlined some of that by having the government's representative focusing on scope and also costs. Last Tuesday I sat here and I heard some various concerns about my role or other folks' continued roles. This is a team effort. This involves the administration, the council, the division, the department. We're all in on this together, so I welcome whatever support that I can get. A big part of the support team I have is the Hazen and Sawyer team that's sitting here to my right. So without further ado, I'm going to introduce John Steinmetz with Hazen and Sawyer to walk you through the presentation. Thank you, Charlie. Mr. Steinmetz, welcome. And perhaps you'd like to introduce at the outset the other members of your team who are here. I will. And if you can, I don't want you to leave anything crucial out of the presentation because this is an extraordinarily important report that you're going to make. But if you can move us along and leave us with plenty of time for questions, that would be to all our benefits. I appreciate that. First, I'll probably explain the phone book that I left to you. Probably in the third hour of this presentation we can get to this. But actually, it's a lot of information about the Group 1 plan that you can take home, and it has a lot of project details. Some of the councilmen might be interested in what kind of work might be going on in their districts. So I'll be referring to some of the sections of this just by reference. But this is really a take-home for you just to provide you more information than I can give during the presentation. With me here today, let me first mention that our team consists of four different firms, and three of the firms are major national firms, Hazen and Sawyer, Bernie Mallory with CDM is representing CDM, and then Joe Herman is representing Stantec. And I'll be getting into some of the qualifications of the firms in just a moment. First, a brief description of the agenda we're going to cover today. Again, the team qualifications. and really want to talk a lot of details about the scope of the implementation project because this is the major program that needs to be initiated here in the very near future. We'll talk about some of the challenges and strategies that we've recognized and how we've planned to control the cost and schedule and the quality of the project. In some of the recent meetings we've had with the mayor and in subsequent meetings that Charlie has had with the maire, He's asked to get a better grasp of all of the Division of Water Quality programs, the major programs. So those are represented here on the slide that shows the five programs. Three of them are related to sanitary sewers and two of them are stormwater. And we're mostly here to discuss the one on the furthest left, the Sanitary Sewer Capital Projects program. Now a little bit about our firms, Hazen and Sawyer. We've been around about 60 years, although, and I've been with the firm for about four years, but I've been in the Lexington area working on sanitary sewer projects for about 18 years. So I've got a strong familiarity with your sanitary sewer programs. We've been around for a while. We've got some major projects. We've been managing about $7 billion worth of construction the last five years. And one project that's wrapping up right now is a 290 million gallon a day water plant underneath a golf course in New York City. And that in itself is over $2 billion for that one project. CDM has been around for longer than us, in fact, and they've got roughly 6,000 employees and 120 offices. And they've got a strong presence in the Lexington area as well. They represent about $40 billion in construction recently. Stantec, many of you know Joe Herman from his previous projects here in Lexington. They are recently hooked up with Fuller, Mossberger, Scott, and May that have a long history in Lexington. And they had another recent acquisition here that really drives up their staff locally to over 200 people. So all three firms have a strong presence in Lexington and a strong interest because we live and work in the community, and your interests and our interests are shared. Briefly, some of the wet weather program management experience our team has, and not to go through all of them, but I wanted to mention Sanitation District No. 1 of northern Kentucky, Knoxville, Cincinnati, and Columbus. Those are four major programs here in this part of the country. I also want to mention something that's not on the slide, and that's our newest project. It's Birmingham, Alabama. We've been selected to help them navigate the waters of their wet weather program that some of you have become familiar with. Now, through some of this wet weather programs, We've learned a lot of lessons that we plan to help apply to the Lexington Project to help make things go smoothly. Most of them relate to communication and documentation, and what we'll really focus on is that of all the many, many parties that are involved in the success of this program, we want to make sure that all those parties are well aware of their requirements, what's expected of them, and what their deadlines are. Now, the first tab of your phone book, I guess that's probably A through C of the phone book, that related to some brochures and information about the three primary firms here. If you turn to the second tab, you'll see this sheet starting it off, and it's the implementation schedule for all of the Group 1 projects. It basically constitutes a business plan for the capital program, and a few things I want to emphasize on this is first that as of now the clock is ticking with your consent decree since it was lodged earlier this year. You have 11 to 13 years to implement the construction of all these projects. And while there may be, depending on how quickly the EPA approves the plan, there may be some adjustments there. Right now we're planning on following the schedule that's documented in the consent decree. Now, this schedule shows that the initial design efforts would begin at the beginning of fiscal year 13. So that's only seven months from now, July. So there are some initiatives besides getting the designs in place and prepared for that. We're going to be talking to you about some program adjustments we'd like your support on in making between now and then. Another thing I'll mention is that the costs that are listed on each side of that, they were developed with estimated quantities from the specific projects, along with unit prices from some of Lexington's past bids. And as far as the level of detail and what goes into these estimates, they're based on the association of cost estimating. There's a class four level of estimating. So there's criteria on how much effort you put in and what this effort is good for. And basically the point is that it's appropriate for master planning efforts like what we've undertaken here. Another point I want to make before I leave this slide is the big red text on the upper right, the fact that it's interim. When we submitted the Group 1 report to EPA, this is only the Group 1 projects, which is the watersheds of West Hickman, East Hickman, and Wolf Run. But it's not appropriate to plan out the final details of these projects before we know what's going to happen in groups two and three. We really need to have an overall picture of your entire program before we can commit to EPA the schedule or scope for any of these projects. At the bottom of this spreadsheet, you'll see a row of numbers, and that represents basically a cash flow analysis set up based on the pro forma that was brought to you in previous meetings. So we've tried to lay these projects out so that they make sense from a technical standpoint, but also they can meet some of the initial cash flow estimates that you've set up. So again, we'll be revisiting this when we get groups two and three done, so that what you end up with by the end of the group three project is something you can commit to the EPA and also live with from a cash flow perspective. The next page in your handout is an implementation map, just a sample of the Wolf Run watershed. And all I really want to do here is explain to you that that big table we had on the last slide had 46 projects listed. And those are shown on these maps, so the numbers that coincide for each project project relate to the numbers shown on these maps and listed in the table. And once again, when these remedial measure plans are accepted by the EPA, they will basically set the scope of the project and the schedule of the project so that those are the commitments that this community will be making to the EPA. The third tab and fourth tabs in your phone book, that really constitutes the bulk of it. These tabs are going into some detail for each of the 44 projects. I had 46 listed on the previous sheet. One of them was a property acquisition job, and the other one is the Wolf Run pump station that's currently in process by the Division of Water Quality. So what our remedial measures plan is focusing on is 44 projects. The third tab that you have has all of these sheets for all of those 44 Group 1 projects. The fourth tab shows aerial maps. So hopefully between these two sets of tabs, you can see where projects are planned at this point and how they might relate to some of your districts and constituents. These next couple of slides I want to talk about the implementation scope that's in our contract and was listed in the RFP. I think Charlie mentioned that, and we want to make sure that you're well aware of what we've been asked to do. First, for the design elements, and this is the implementation scope. We have a different scope for the development of the RMPs. Now we're getting ready to go into the implementation scope. Now, the design elements, where we would be very active in working with Division of Water Quality to develop scoping documents and scopes of work for RFPs. We'd be helping them review the proposals and evaluate consultant selections. and being the overall manager of the design process we'd be directing the progress meetings actually actively reviewing and approving the plans for construction possibly most importantly doing constructability reviews so that plans that are being done by various consultants follow certain standards, and we believe to be constructible and appropriate for each project. Another big issue, and I know it's been probably the primary point factor to all of you, is the cost control. This is between our planning estimates and the RMPs. When we get into the implementation, we'll be beginning a long phase of continuous cost controls, starting off with design elements. On the construction elements, I really just want to emphasize that we'll be monitoring the construction schedule and the overall implementation schedule. The way the scope of work is set up right now is each design consultant that's hired would be taking care of their own construction administration, and they'd be doing the inspection services or DWQ's own forces would be performing those. So really from a percent of involvement in construction, our involvement is less so than it is in the design elements. But overall through this scope of work, the way we're looking at it is a partnership between our team, DWQ, and you all. Now, the scope of work that we've been giving was left intentionally broad so that we could help DWQ with certain issues that came up related to our work. The first one is some potential process modifications for the way you've typically done business. And one of the primary ones on that is the engineering procurement. And we're talking with them about developing prequalifications for the local consultants and national consultants. for working on different types of projects. And we'll just emphasize that part of that will be making sure that the work that's conducted by a firm, it fits with the strengths of that firm, because not every firm is qualified or experienced in designing all the projects. We believe that the implementation of some of these changes will help us speed up a typical project by about six weeks. Similarly, the property acquisition changes are there to streamline the process and remove one of the largest bottlenecks to project implementation right now. And what we hope to do here is follow some practices that are used by most other communities around the state, which would be using unit prices for easements rather than appraisals and having a more streamlined approval process in-house. I do want to emphasize that we're not proposing any change to the process for fee-simple acquisitions that may be needed for pump stations and equalization basins. So really, we're just talking about streamlining the easement process. One more point. There will be times, undoubtedly, with all these projects to implement, that it will be necessary for you to initiate some condemnation proceedings, and we just want to make sure you're aware of that. Now we'd like to get in a little bit of the challenges that we see facing from this point on. The first one relates to the schedule, cost, and quality of the work that's being done. And again, I'm not going to hit on all those items, but I want to emphasize that we plan to work with DWQ to develop design standards to provide consistency in the projects and speed up the design flow. Also, the facility siting, an equalization basin being placed in some certain section of town, we've allowed in our schedule extra time for dealing with stakeholders and property owners and yourselves on getting some of these facilities sited. We'll have continuous stakeholder involvement. We feel like we've had given the public many opportunities to comment, and we appreciate the feedback we've been given. But it won't be the end of it. It will continue throughout the implementation. Related to the design strategy, this slide has a little bit more detail about these specs and standard drawings we'll help develop. There'll be different types. We'll have pipeline rehab. We'll have brand-new replacement pipelines. And then we'll have larger facilities, such as pump stations, EQ basins, et cetera. So if we implement front-end documents and technical specifications, have them approved by your staff and provided to the consultants, that's going to really streamline the design process. One other thing I want to mention here is the communication aspects of this slide. We'll be prepared to provide monthly fact sheets for you and the mayor. and based on the recent meetings with the mayor, I believe what's been proposed are quarterly updates of the program to council during work session and we're prepared to help you in that regard also. The last bullet is obviously critical. Again, developing funding issues, doing what we can to facilitate the acquisition of funds and then making sure that the RMP follows a programmed cash flow. For the construction strategy, again, standardizing the process, enforcing quality control standards, the last bullet is key here, making sure that there is accountability for design engineers and contractors. Again, as a reminder, the construction and administration of most projects right now are planned to be done by the design engineers. We put some thought into the various risks that these programs involve. The first one is the approval of the remedial measures plans. We are currently working, going down the path using the results of the Group 1 RMP, even though it's in EPA's hands for review and approval. They may approve it very soon. They may have a long, drawn-out negotiations process. We don't know how it's going to work out, but that introduces an element of risk to the process. The capacity of design consultants and local contractors are a risk. Right now we've got, if we have what we expect to have, it may be 10, 12, 14 projects per year going on, and we think that's a manageable amount of projects, but there will be more interest from out of this region in case that the local engineers and contractors become overtaxed. Property acquisition, we've already touched on, that hopefully a streamlined process will help speed that up. But as you know, property acquisition has been a delaying factor in many of your past projects. Okay, on to cost controls. and at the risk of being repetitive, again, the standard specs and details are going to help quite a bit. And I want to introduce something that you might not be familiar with, and that's what's shown as RD fee curves. Those are fee curves that I'll be touching on in the next slide, and it's shown in the fifth tab of your book. They are commonly used, especially by funding agencies such as KIA, to provide guidance to how much an engineering fee is likely to be based on the size of the construction project. It's a sliding scale where the more expensive a construction project, the less the percent of the design fee would be. And again, these are guidelines, so the point to you is that it's not a great unknown how much the engineering cost will be to a lot of these projects. There are some guidelines to give you a rough idea, and then they may go up or down based on the complexity of the project and whether there's additional scope items beyond what is normal for this type of project. And this shows that document that's in the fifth tab there. Along with this typical calculation out of that, if you had roughly a $2 million construction project, based on the tables the design would be 9.45 percent of that now the design just so you'll know includes construction and administration and bidding services the second page of that document covers a different percentage that is used to estimate the cost of inspection services Now back to schedule controls. We are committed to assisting DWQ in making sure the scope of the RMP is followed during the course of the contracts. We will be having progress meetings during design. And again, there will be sanctions in place if any of the design consultants perform poorly. or cannot meet the schedules, and they would, if there's a prequalification process set up, they would kind of lose their place on that and wouldn't be eligible for other work. On the construction standpoint, we'll be making sure all the construction milestones are hit, and the last bullet there, we talk about enforcing liquidated damages. Now, it's common that you have to show actual financial damages when you assess liquidated damages, But in your case, with the potential penalties, regulatory penalties in place for missing schedules, you do have some true risks in that regard. All right, finishing up, we commit on the critical success factors to being a good partner with DWQ, your finance, your program manager, and also to the quarterly meetings to the council. We will continue to use strong project management principles that all three of our firms routinely used on every one of our projects. And we hope to work with you and partner to help change some of your standard practices and the elements that we've spoken about before now. So I hope this presentation has helped provide a little better understanding of what the implementation of the remedial measures plan is going to be all about. and we ask for your understanding and support as we move forward, especially in some of the new initiatives that we'll be working towards. Thank you. That's all I have today. I hope any questions. Thank you, Mr. Steinmetz. I know committee members have questions. Paul? Yeah, they're working on it. They're working. Okay, so we won't have the questions. No questions. so we can't log in on the screen. So if you'll just raise your hand. Council Member Stenet. Thank you, Chair. Mr. Stenet, thank you for coming today. Obviously, this is an important day as we move forward to address some of these remedial measure plans. I guess my first question, I see you're on the docket today for approval. I assume, Charlie, that approval is covering what he just went over? Is that what's on our docket at 3 o'clock? Correct. As I mentioned in my opening comments, this is directly rated in new business item D. And this will extend its contract by $1.5 million? Is that correct? Correct. If you want me to explain it now. Essentially, the original bid for that, the selected bid, was $2.7 million. That was to develop all of the plans and get us ready for implementation. There was only $2 million budgeted for FY11. So we went ahead and issued a PEO for $2 million. The 1.5 that's on the docket for day, half of that is to finish the plans. The other half is to begin the implementation phase, which was originally in their scope of work. It just wasn't itemized as far as the cost associated with it. Okay, and is this the implementation phase for all of the plans or just the first one? For all of them through the duration of their contract. is that essentially, as you mentioned on the slide that had all the schedule on it, is that only represents one-third of the city. For your district, obviously you're in groups two and three, so you're not there yet. Those will be merged together to where you will become with one master implementation schedule that introduces groups one, two, and three. That's what they'll be responsible for. That's what I was getting to. I just wanted to make sure this wasn't just the Wolf Run area. And then the mayor alluded to a project manager. Isn't this what we're hiring Hayes and Sawyer to be? Is our project manager an implementation, or am I hearing something new that the council will be asked to consider a third party on top of him? Well, I think that the mayor, and I don't want to put words in his mouth, but my understanding was is that he is wanting a representative of the government who can live and breathe this. And I welcome that because I've got a regular operation. I've got a regular operation to run as well. And so having someone who's the government's representative that is making sure this turns out the way that we want it to turn out, I welcome that assistance. From a broader standpoint is that making sure that the elected officials, both the administration and the council, are comfortable with the direction that we're headed and we're all in this together makes my overall job a lot easier. So this would be in addition to Hayes and Sawyer, basically our point person? Yes. That we would hire and advertise, and the money would come out of the sewer fee, I assume, fund? That is correct. Very good. Thank you, Chair. Thank you, Council Member Stennett. Vice Mayor? Thank you, Mr. Chair. Thank you very much, John. And I appreciate the book. I love maps, so there's lots of them in here. You should be an engineer. Yes. A couple questions. Back on the property acquisition on the risk identification slide, I know that you said that frequently that can slow the process. and I guess is there an average amount of time if you have to go to request condemnation, if someone doesn't want to negotiate their property, that that will slow the project, or is it just too hard to tell? Well, it would vary widely with every project. As far as development on average, it's hard to say was your question when those proceedings may be considered and initiated well they're typically done when negotiations come to an impasse and it's time for some other mechanism such as arbitration to take over but there'll be a point in your implementation schedule where you can't afford to wait anymore and you have to get out in the field and start building projects okay And will there be something under your very last bullet on your last slide, changes to standard practices that affects the condemnation issue, property acquisition? So far, most of the focus on that has been with the property acquisition. And just for a couple of examples of what we're talking about. First, most of our projects will involve pipeline replacements or pipeline rehab, where there is no new permanent easement. You just need temporary construction easements to get out there to have the working space. If I'm not mistaken, right now that requires the same treatment that a new permanent easement would take, and it requires action by all of you to approve such an easement. And we would recommend that that process be streamlined. In that case, it's relatively non-controversial that it's done the way many other communities locally have it done, in which case the temporary easements are just given to the mayor for a signature. It doesn't have to go through any kind of readings or action by the council. I think I read that in the packet someplace. I'm not exactly sure where it is, but that makes sense to me, that you wouldn't have to come to council for that on a project like this where we're under an EPA consent degree. So that would make sense. Excuse me, but another variation between the way Lexington has historically done things and most other communities is the accepting appraisals, pre-development and post-development appraisals for new sanitary facilities. and most communities either have average, and what we'd recommend to you is you take the easement cost that you've given out historically, just come up with an average on what's been fair in all of these years that you've been doing it and make that same offer to the property owners and avoid the appraisal because it's not like a fee simple acquisition where you're buying the entire parcel. So what is the true damage of having an underground pipeline placed in a project? To me, that's not nearly as straightforward a computation. Okay. One other quick question on your slide about schedule controls. How do you determine, the fourth bullet there under design is poor performance. How do you determine poor performance? and, I mean, what constitutes, do you have a series of items that someone has to qualify for poor performance? What's your process for determining that? Well, this would generally be following the same standards that you've always followed with your projects. If a consultant is late and misses their deadlines in the design elements, it would generally be either being late or being non-responsive to suggestions on constructability reviews or other design improvements. Does one episode of poor performance cause a firm to lose its place? We haven't worked out any of the details yet. You haven't worked that out yet. Okay. All right. I can tell you from my experience with our urban county government that they've always been very fair in their assessments and reasonable, and I would expect that to be maintained throughout a modified process. It's more to make sure that the consultants know going in the critical importance of this program to the urban county government. And to be honest, I'd be surprised if this came up because I think in general you've had good consultants doing good work over the years. Okay. Thank you very much. Just a quick follow-up for clarification. When you were talking about streamlining condemnation process, were you suggesting that these might go forward without council approval too? Actually, the streamlining of the acquisitions was not so much related to the condemnation. That's more of a legal matter that your law department would get into. The reason we listed on here is that from my experience working with you on projects and being aware of other projects that I wasn't involved in, there's a natural reluctance to initiate those condemnation proceedings. You really want to try to exhaust all other avenues. Our point on this project is that in those past projects of years, you've had other options related to extending the schedule, delaying the project, et cetera. On these projects, you won't have that luxury of being able to extend the schedule. You'll have a defined deadline that you have to meet. And with all due diligence and all good efforts that come into a reasonable agreement with property owners, out of all the many projects you're going to have, I assume there will be times when the process will break down. So we just wanted to get out there just to have that discussion that there may be times when that will have to be employed. Well, thank you for that clarification. I think that could be an issue, and we need to balance responsibilities in that area because condemnation is a serious step, but sometimes a really necessary one. Council Member Lane. Thank you, Mr. Chairman. I just had a couple of questions that I'd like to ask you. The first question is, who has the final say-so on the approvals of the project? DWQ would have those final approvals. We would be a support staff to DWQ. They would have the final approvals. So would that apply to the cost of the project and change orders? I mean, do you approve all of that? And do we have, under your contract, is that part of your responsibility, and it doesn't come before council for any approval? Right. The scope of our current contract goes into some detail about where the contractual relationships would lie, what our responsibilities are, and, for example, it lists that all the contracts with other consultants and other contractors will be, we will not be a party to that. So the most we could ever be is an advisor to DWQ on those. Let me add something. I think I know where you're headed. The process of awarding contracts, change orders, any of those things would still come back to the full council. We're not suggesting changing that process at all. It does add time to the overall process because sometimes with meeting delays and vacations and things like that, we just have to plan around that to know that you're going to be on break from December, what have you. But a change order, ultimately the council still has the approval because I think that statutorily that's required. All right. This is one of the concerns that I have is that as council members are representing both the taxpayers and the stakeholders, you know, in the sanitary sewer and storm sewer system. And, you know, to bring the change orders to us to approve I think is inappropriate because what do we know whether that's an appropriate charge or not? I think that I would like to see the construction manager at risk in running the job and being responsible for all the change orders, for the selection of all the contractors, and have a fixed-price contract of some sort. This is a long-term project. Do you have an estimate of what the cost is going to be? The construction cost? Yes, sir. Well, our current estimates that we presented back in June were in the $540 to $550 million range. Right. Okay. So, you know, if we put in just the fees for management of the job at the lowest rate of 6.4 percent, that's about $35 million there. And then for inspection fees would be another $25 million. We'd have about $60 million in fees just to do the design and inspection of the work, and yet the people doing that, they're not at risk at all. I feel that this is not the best way we could structure this to protect the taxpayers. This is the concern that I have. The other problem, this is a long-term contract and a long-term construction project because the scope of the work is long and difficult. I worry about transition of personnel in the government, whether it be council members, the mayor, and people in the environmental quality division, and what impact that could have on the continuity of the project. Do you feel that your firm would be able to manage the continuity ongoing without any problems, even if we had changes in personnel and government? Yes, sir. We believe that to be our role in the project, to provide the support consistently and quality support. If there's a change in personnel, that's part of our job is to help carry on. Just to clarify, I think I mentioned construction for 540 to 550. Yes, sir. That did include design cost also. Right. Well, I just took the percentage of that, and that would be the fees that we would be paying the outside consultants, which is a substantial amount, and not to be at risk. That's another question there, too. I still have worries about this. This is probably my biggest concern we have in government other than our pension fund because the amount of money involved here is huge. It's a long-term project. The scope of the project changes from day to day. The personnel involved may change from day to day. and then bringing back the change orders and all the contracts for council to approve when we don't know anything about what we're voting on. How do we know whether a change order is good or not? I don't think there's any way that we could be reviewing all of that coming before the council and know whether that was a good decision-making process or not. Do you see any way that you could do the construction where we would have a representative of the government who is in a fiduciary relationship with the government to oversee the project and negotiate with a general construction manager who would hire all the contractors, negotiate all the deals directly? would be at risk. It would be on a fixed price contract. Do you see that as a possible way to structure this at all? Well, I believe there's many ways to structure it, and that's one that is employed from time to time in various places. I would like to point out that your program has one extra layer of controls that all of your other capital projects don't have right now, because your typical project has a design engineer who's on board to work on construction. so that the design engineer is your agent during construction, and he would be the first level of controls on change order. We would be a new second layer of controls for that before it includes your internal construction people. So I guess I can't really comment on all the different methods there are out there to implement construction projects. I've been mostly focused on the one that's been laid out in this program so far. But I did want to point out that it does have more controls than your previous programs had. Right. The only dilemma we have is if that person, that engineer, left the urban county government, then where are we? We're sort of left over the barrel. That's the reason that I wanted to see us have a construction manager representing the government, and construction manager at risk running the project so that if anything went wrong anywhere, there would be redundancy, there would be a major company there, there would be other personnel that would be up on the curve. And here again, it gets back to protecting our taxpayers and our stakeholders. They're funding all this money, and I just worry that something over an eight-year period could go wrong and we would get in the ditch on the project. I would add one other thing. I'm Bernie Malloy with CDM. I've seen on some of these other projects where some of the larger projects, for example, storage tanks where they're on a site owned by the Irvin County Government, they would be procured as construction management at risk where you're not working in a neighborhood on lots of different individual properties. Construction management at risk there adds some complexities in terms of dealing with residents and that sort of thing, unforeseen things, whereas if you're building something on a site, it's kind of a greenfield thing where construction management at risk would work well. Knoxville did something similar to that for their storage tanks. That was another question I had. With regard to extending the new pipelines out there, should we not already have existing easements for the lines that exist? and we just have to go in and dig those up and put in larger pipes. Granted, there is an easement for getting over the property owner's land and disrupting it while we're under construction, and we do have to pay something, I suppose, for that. But do you see the easement issue as a major one, or do you feel like it's going to be reasonably, I guess there's no such thing as an easy easement, but a little bit easier than normal? Right. And by a number of projects basis, most of them are pipeline projects, and most of them are following the existing pipelines. But during the course of our RMP development, we inspected the sites in the field and looked for constructability issues. And as you can see in the booklet that I gave you, probably in the S to V timeframe, is a bunch of maps, and some of them show alternate routes where we're proposing a new alignment. Now, some of those new alignments make the easement process simplified because they're more taking it from the backyards out to the roads. So we've gone through, and if we saw some issues that would significantly drive up the cost of the project by putting where the pipe is right now, and we saw a less expensive and easier-to-implement route that moved the pipeline out into the street, and we have shown that as an alternate to be evaluated during the design but basically we see the easement acquisitions as a the the permanent easement acquisitions is relatively minor now most all the projects will have temporary easements and that's why we feel like the changes to the to the process to eliminate the need to do appraisals and have a bottleneck there just for all the many, many temporary easements we'll need. We'll help streamline things. All right. Well, I would be supportive of the temporary, you know, being able to get the temporary easements without approval of counsel and let the mayor sign for it because I think this is in the benefit of all the property owners. As long as there would be a process, a property owner could always take it to court if there's something unusual that happened in one of the easements. But I agree with you that delays are very expensive, and ultimately the homeowners and the people paying the sanitary surf fees, storm fees, are going to pay more if we extend the project and delay the work process. Well, I don't mean to be negative here today, but I feel like my number one goal today is to speak on behalf of the taxpayers and the stakeholders who are going to pay for this. And I just want to make sure that there's continuity and redundancy in the personnel and the companies that are going to be managing the project and that we don't spend more money than necessary. and that means we need to be competitively bid, and I'd like to see a construction manager at risk involved in running the job, so they're going to be motivated to make sure we come in on budget. And no offense to you today, but in our discussions I didn't hear anything about we're going to be working diligently to keep the cost as efficient as possible on the project. and the fee schedule, if we're going to spend $540 million, it seems to me that we could have some type of an agreement with the contractors to have a lower fee than maybe proposed on the schedule because that seems pretty high for the scope of the work there. But fees are in the eye of the beholder, I guess. But I'm just speaking on behalf of the taxpayers today. And I do not consider myself an expert on construction management, but I am really concerned about making sure we run this job as efficiently and cost-effectively as we possibly can. Thank you. Thank you. Thank you, Mr. Lane. Council Member Farmer. Thank you, Mr. Chair. I appreciate it. Mr. Thomas, thank you. And thank you for this. I've never had something like this with so many fold-out pages in it. of each and every project around the city. And I think that's the commentary that really needs to get back to the citizenry, is once Judge Forrester signed the consent decree last December, the clock started running. And we have to perform in ways that we have never performed before and to different kind of standards. And you're alluding to that all throughout your packet here. And I just had really kind of a couple of questions, nothing too substantive, I would say. Establishing procedures and staying consistent. I think that's probably the most important thing is we're establishing a whole new set of procedures and how we're going to do things citywide, countywide, if you will. The part about staying consistent, don't you anticipate being dynamic and when different situations come to play, we might answer them differently as we move forward. Because I think once we solve a few problems in some neighborhoods, we'll see what certain best practices are or what's going to work best, and it might affect how you do things on down the line. Well, we agree totally. And we feel like since we became involved in this program, we've tried to be flexible in where this program needs to go. We have changed directions from time to time, and we truly believe that from here on out, this is just the beginning of the program. Yes, sir. And there's going to be many, many changes from here on out. So we feel like our past experience in wet weather programs will help bring that, along with our past experience with urban county government projects, because we are very well aware of how things have been done, where issues have arisen, especially with residents. Sure. I'll give you one example. Right now we are obtaining a proposal that's totally not listed in our scope of work, but we've worked with DWQ on this. They think it's a good idea to have an arborist review the corridors of all the pipeline projects just to get a head start. Right. on where some issues might come up during design and construction. And right now we have time to get a head start on that. I think that's time well spent for everybody because it shows that we're looking at the entire environment about which we're working here. So I'm very pleased to hear about that one. On page 13, you're talking about engineering procurement, and your last bullet point is to reduce typical duration by six weeks. Give me a little insight there about what you're trying to do. What are you trying to do to make that, or what will you do to reduce that turnaround? What the intent is to have different types of design projects, such as pipeline rehabilitation projects, some of the things like you're doing right now. Another one is pipeline replacement projects. Another one is pump station design. Right. EQ base and large facility design, so to speak. So we would have different types of consultants that qualify to do those. If we can get them pre-qualified, then we can eliminate the writing of an RFQ, an initiation of proposals, submission of proposals. We can go straight to the list of pre-qualified consultants. We're doing that, aren't we? I'm sorry. Yeah, we finally have transitioned that on a lighter fare. The goal is to eliminate that long, arduous process of going through the selection thing where we've got to get you folks and the mayor's office and all these folks one by one to select these folks. Instead, we're going to have one big selection. We'll prequalify a list of firms, rank them, and go. I think that you could do better than six weeks when you get it done right, but I appreciate that. Then on property acquisition, no council action for easements, administrative policy change to require only a mayor's signature. You kind of touched on that in previous questions. I think that we just need to get comfortable with the idea that there's going to be more things that are housekeeping-oriented for you all to move forward than for us to take a motion and a vote on every time. But we'll have to get used to what that rhythm is going to be in this new system or under this new deadline, if you will. In design strategy, you've highlighted communication, including monthly fact sheets to the mayor and the council. I think the more information that you can give back to us, the better we can be in contact with our constituents, whether they be a neighborhood or industry, either one. The exchange of the information is going to be very key for all of us to keep a lot of people happy, from your arborist going out on the front end all the way through putting the side back down when we're done, because it's going to be a long haul for a lot of people. and trading the information is going to be very important. Can I point out one thing the mayor may not be aware of is that the public involvement process includes the development of a website. And right now it's premature until the EPA approves its first plan, but at some point we plan on having it set up on the website where a resident can type in their address and then zoom in to projects that are in the vicinity of their area. So some of the mapping that you've got in there will be used for that, but that will be a web-based way for residents to see exactly what's going on in their neighborhoods. That sounds so good it scares me. Just let us know before that goes live, will you? Because we're going to need to know. That's just one of those we'll need to be aware of. All right, on schedule controls, design, poor performance, lose place on the pre-qualified list. I think that's very important. If we have a group of pre-qualified folks and they're not performing, they lose their spot until they kind of come back in the rotation. I think that's part of the thing of keeping everything moving forward as quickly as possible. Those are really just comments as much as questions. We look forward to working with you and accomplishing a lot. Thank you. Thank you, Chair. Council Member Henson. Thank you, Chair. I appreciate, John, you being here today. And the consultants listed here have all been in business for a number of years, which tells me they're reputable companies in order to have been around that long. But I guess my concern would be also a concern that Council Member Lane brought up about the cost of the projects, but just as importantly is the quality. So we need good quality work at a very reasonable cost, and do we have any guarantee of that? We get lots of information up here, and I just want to feel entrusted that we're going to get the best quality service that we possibly can. I guess a project manager would probably help with that, but I would just like to hear what you might have to say. Well, we've tried to emphasize all the quality and the cost elements throughout the presentation, and I want to emphasize that the three project managers that we've got here today, we have over a combined 50 years' experience working with urban county government. And it is my primary, this is my main focus right now for the foreseeable future. I will be totally dedicated to your success. And we have been measuring in every one of our progress meetings, we have monthly progress meetings. And the main focus, the overriding theme, is cost control and quality control. And we feel like we've been meeting all of the expectations all along, and we commit to continuing that. Thank you, John. I guess there's no incentive in place for your company to make sure that that occurs, right? So I'm saying you're receiving a flat rate for your services to oversee these projects. Not exactly. Our contract is set up on a time and materials basis, so to speak. And just so you'll know, so far the submittals that we've made, we've been under budget with our efforts, and we hope that continues. So we are only putting forth the effort that is required on a day-to-day basis. Okay. We have no other incentives other than providing good service. And we're well aware that our contract is up for renewal, and the urban county government is eligible to make a change at those points. Okay. I appreciate that. Thank you. Anyway. I'd like to add one more thing in response to a couple comments. As program managers, and I think on one of the slides you saw a lot of different cities that have done a lot of similar size and, in fact, a lot larger programs. And the theme we always like to bring to it is, as program managers, our job is to relentlessly drive down costs. We start with an initial number for your pro forma. In this case, I think it's $540 million. Our job isn't to help you spend $540 million. It's to get the job done, meet the criteria that EPA has set out for you, meet the two-year storm level of service that you've selected at the lowest possible cost. So there's lots of things that a program manager does from confirming the scope of each project, making sure it's exactly what's needed to do to meet the RMP, nothing more, nothing less, making sure there's competition for materials and process equipment and everything else that's involved in building this stuff, making sure that quality contract documents are provided based on standards that will help develop. We want to minimize change orders, make sure that a tank that gets built in one part of town is consistent with a tank that gets built in another part of town. For example, one could have water cannons to wash down. Another might have an automatic flushing system. It depends on the frequency of use, the size of the tank, that sort of thing. There's no one-size-fits-all. Proactive risk management is critical. We don't want to be in a reactive mode. We want to look out ahead and see what kinds of risks each project is going to provide, whether it's land procurement or unknown underground conditions, property acquisition for a tank, whatever, and make sure we're ahead of the curve on that so that we're being proactive. And then finally, on some of the larger projects, you might want to consider value engineering, which is a is a specialized um exercise on on projects typically larger 15 20 million projects which your storage tanks would be one that that would be an exercise with an independent firm that would look at ways to save money on on projects and finally um in terms of change orders constructability that sort of thing cdm's got a 400 million dollar a year construction company that is a subsidiary, and we use those folks to help us estimate construction costs, review constructability, and review change orders for appropriateness based on regional rates for materials, labor, and that sort of thing. So we've got a lot of things in play. I have one more question. As far as the companies that are chosen in the RFPs, do we get references from past work that they have completed? That would be expected to be part of the process. And, of course, the best reference would be your own experience with those firms. but a standard rfq solicitation would include references okay thank you councilmember k thank you chair um my question goes in a slightly different direction if if the vice mayor was were your questions or comments in the same general vein i would defer to you and then come back okay okay my question has to do with the larger scope of everything that we are undertaking and I'm not clear from the presentation and I may be the only one but there may be some other people out there the interim timeline refers to group one only and And it says it will need to be integrated with Group 2 and Group 3. And then the second or third slide you showed had five big areas, sanitary sewer capital projects, stormwater capital projects, et cetera. Can you explain more about this phase and 2 and 3 and how they fit into the overall project scope? Here's the slide. There you go. The consent decree involves both stormwater and sanitary sewers. Layered within that, there is capital programs associated with stormwater, capital associated with sanitary, but also operational components under both of those two headings. And so we've got this set up such as that those are segmented because capital is not the same as operating. Operating is obviously what it is, is how we go about doing things, how we respond to overflows. So that's why we have segmented it that way. And the overall coordination of making sure that the consent decree is met, that resides with the division. We're the ones that pull all this together. At the end of the day, we're the ones that, Urban County Government, those are our discharge permits. And we're the ones responsible for making sure they're implemented. and that includes what an operator does every day. Today we're focused exclusively on the sanitary sewer capital program because based on current estimates, $500 million plus. In overall cost, it dwarfs everything else that we're talking about. And so that's why it is, in my mind, has so much attention and so much significance to us because it's the elephant in the room. Okay, thank you. And then I have a follow-up question, if I can. I think I understand that, and that was fairly clear from that slide. The reference to Group 2 and Group 3, how do they mesh with that? The schedule in the consent decree is that EPA recognized we couldn't do our whole system all at one time, so they broke it into three components. And the plans are due to EPA's staged on six-month intervals. Our first plan, Group 1, was submitted in October, so the next one's due in April of next year. The following, the last one, Group 3, due in October of 2012. At that point, then we will take all of these projects from those three groups and merge them into a more comprehensive schedule, as opposed to one project going first just because it happened to be in the first group and ignoring one that was in the third group that has ten times the overflows that the first one does. Okay. Does that make sense? Do groups one, two, and three cut across those five major headings? No. When we talk about those groups, this is all about the sanitary sewer capital program. The groups were broken into. They wanted us to assess the system. What's wrong with your system? Why is it broken? Why do you have so much water in the system? And so those groups were driven basically on that. On the stormwater program, the groups really don't have anything to do with anything. There's no relationship between those whatsoever. Great. Thank you. Thank you, Chair. Vice Mayor Gordon. Thank you very much, Mr. Chair. I have a couple map questions, John. On the West Hickman Detail Main Trunk A, there's not a page number. But is this showing, do you know which map I'm referring to? Right. I apologize. I don't think there are numbers on these. Right. It's G1WH2, if that helps. I've got it. Is this showing, okay, this is the main trunk. Is this showing it going into, is that the treatment plant, or what is that that it's showing? The downstream end where you have a red line with 48 inches on that. But the green line to the west, what is that? You're talking about the West Hickman main trunks are replacement A. I was just curious about the facility that it's showing there. This is a GIS map, and the actual treatment plant, the West Hickman treatment plant, is not shown very well. The purpose of this map is to show the general location of the proposed pipeline. Is that Veterans Park, maybe? Excuse me? Is that Veterans Park, maybe? Yes. We've got a sewer going through there right now. And to be honest, this is one of the few projects where we're not looking at replacing the existing pipe. Due to the SSA activities, we found out the existing very large trunk sewer is in good condition. Okay. So it's less expensive to put in a parallel pipe that's a smaller diameter to get the rest of the capacity that you need. Okay. And then my other question is about the East Tickman detail. You've got Overbrook Farm force main, pump station, and trunk. Are all of those – Overbrook Farm is in the expansion area, correct? Yes, ma'am. So are all of those standard size for future development, or how do you determine? Yes, ma'am. Our remedial measures plan used projected sewer flows for the year 2035. For a fully developed area? For this area to the extent that it was anticipated by the Division of Planning. So in the early phases of our work, we work with Division of Planning to help come up with future flow estimates. This section also complies with the work that was conceived in the last facilities plan update. Okay. Is there any work in here done in areas that are not developed but are not in the expansion areas? Everything in this area falls within the current urban service area boundary. Okay. And does any of this Overbrook Farm force main and trunk and all of that have any relation to the Blue Sky? I know that's kind of a different area, different subject, but does any of that, and maybe you know, Charlie, it doesn't have any relation? Okay. Okay. Thank you. Those were my questions. Okay, well, Blue Sky is in the plan, though, just not the Overbrook Farm part of the plan. Is it in this book? It was considered in the remedial measures plan as a future flow into the East Tickman Pump Station. Is it in this book? It's not in this book itself because Blue Sky Parkway was not a part of the DWQ system that we needed to address. Okay, thank you. Council Member Lane. Thank you. I'm back again. I was looking at your implementation plan. It's on page. Let's figure ES-5. And I'm just looking at the fees here again. It looks like the design fee is around $36.4 million, and the construction cost estimate is $277,600,000. That's a little over around 12.8% for the design fee. My question on that, are these just your preliminary ballpark numbers, or is that what you really are going to recommend we pay for a design of that? Now, these costs really represent the cost that you would be likely to incur during the design phase of the project. So it also includes, say, property acquisition cost, administrative costs, funding costs. So what a consultant engineer would get would be the larger part of this, but not all of this. So we split these efforts just for the sake of simplicity into the time periods. So the red boxes on this sheet represent the design phase. So we tried to associate. We probably had a dozen different cost elements to each project. Some of them would take place during the design phase, some of them during the construction phase. So we grouped all of the ones that would be expected to occur during the red scheduled areas into the design. Okay, so who makes the final decision on what the fee is going to be for the design fee? That would be a negotiated element between DWQ and the design consultant. Okay. These are planning-level estimates of what those costs would be along with all the other costs that I mentioned. Right. Well, I mean, we are talking $36 million in fees. Yeah, it gets back to who's representing whom in the transaction, who approves these costs. I mean, this is out of a gray area. I don't know myself. I don't understand how that's going to be set, but that was the question I had. Is this going to not be on a competitive bid basis? It will be a negotiated rate? That's correct. If we use the prequalified thing, it will be on a negotiated rate. I expect these guys to negotiate that rate down as each one of those design firms come up and get it as low as possible. That's what they're there for. So I wanted to correct that as I'm looking at you to negotiate the fee using the RD curves. Well, I mean, it seems like maybe a strategy would be if this is going to be an eight-year project, we're using a construction design firm that perhaps you structure the deal based on the total amount of fees earned over the eight years for the rate you would pay. And then if there was an early termination or they got cut out of the, you know, didn't provide service, there might be a penalty of an additional fee for not giving the full scope of the work. Here again, this is not my area of expertise, but I'm just concerned that this is a lot of money and we need to manage it really, really well. And it ends up, for each person who's got a sanitary sewer system, they're paying for this. And for every million dollars that we spend more than we need to, that means everybody's sewer. fees are going to be higher. And so there's a huge penalty on the people that own the property and that pay the sewer bills if we don't run this as efficiently as possible. And that's where I would like to see focus is cost effectiveness, competitive bidding. And I'm not trying to say to abuse our contractors and the people that do the design. I'm just saying let's make sure we're getting to fair market value for the work that we're getting done. I'd like to give an example of that that we're quite aware of. Many of our projects will be replacing an existing pipe with a larger pipe in its current location and its current elevation. So to be honest, that's not a very complex design effort. So when I mention the RD fee curves and how that's an initial starting point, but the final negotiations could go up or down based on project complexity, that's a place where we would expect the design fees to be less than the RD fee curves because it's not a very complex design just saying make it bigger where it is right now. And we'll have quite a few of those instances. Just my last follow-up question. How will we as the representative of the people know that are paying the bills that we're getting a good deal, a reasonable deal, a fair deal, a competitive deal? Will there be any kind of report that we'll know how we're doing on that? There would be documentation of each process that went on, and once a project gets into that element of procurement, that entire process, whether it's the prequalifications process or the selection of which firm you want to negotiate with, plus the negotiations would have meeting minutes, and they'll be available to you, and we would be reporting to whatever detail you consider warranted at your leisure. Well, thank you again. I would like to say I appreciate your coming in today, and I don't mean to be too dogmatic here, but to me this is a big expense for our people, and we need to watch our costs as carefully. And I guess I will be a hawk on costs. Okay. Thank you, sir. I appreciate that. Thank you. I see no other questions. Mr. Steinmet, thank you very much to you and your team, Charlie. Thank you. If I may just close this up, I guess. Thank you. the um hey you asked the question about you know how do how do we hold these folks accountable i mentioned this sitting back there but i want to make sure it was cleared on the record we have annual renewals with them and so they recognize they have a level of performance that they have to meet or otherwise they don't get they don't continue and we set it up that way is that we want to make sure i'm confident that they're capable of doing this but there is that level of accountability i think john probably forgot we mentioned this early on that we've been given instructions to provide quarterly reports that's that's the way that councilmember lane and others are going to be able to to be that hawk you know i welcome you being that hawk i pay rates here too and so you're absolutely correct as we've got to keep this project as as trim as necessary in order to deliver the product lastly is that i wanted to make it one comment on the easement situation because i probably live and breathe that more than anything else you know i'm not advocating going to condemnation and i'm not advocating going around the council for condemnation clear those are your constituents and you need to be involved in those commissioner graham and i've had some discussions in advance on how we would be able to streamline the easement acquisition process using outside sources so we don't get bottled up with delays because of of easement acquisitions our experience has been in the past though is this this ongoing negotiation and john as he mentioned we don't have the luxury of ongoing negotiations and so we're going to have to tighten that up a little bit we'll be coming back to you with with the commissioner with the law department in tow as far as what we're going to recommend to the council on moving forward with that thank you thank you charlie and one more quick uh quick thing before uh before we move on to the next agenda item can you supply all council members with the uh with the binder i I think it's going to be an important document moving forward. Thanks again. Well, we've been discussing the public infrastructure aspect of this project for a good while, but there's another essential aspect of it, and that's the private property issue. And Council Member Farmer has chaired a small work group to prepare an ordinance to address that issue. And you're up. Thank you, Mr. Chair. I appreciate it very much. You're absolutely correct. If we repair everything that we've talked about in the previous presentation and don't take care of just the rainwater that comes into the system, we will spend a whole lot of money and not really solve our problem. The vice mayor was kind enough to set up a sanitary sewer private property work group that included myself, council members Martin, the vice mayor, council member Blues, as well as Charlie Martin, Vernon Azevedo, Julie Mantram, Ed Gardner, and Susan Bush. We met four times between September 16th and November 4th. Included in the packet specifically is a draft ordinance that is the specific subject that I would hope that the committee would pass on to the council. So we've passed out a little, it's a three-page kind of background piece that Julie Mantrum put together, and I appreciate it very much. And it talks about the consent decree and about, it gives a couple of examples in terms of what are some of the payback models or what are some of the costs that are associated with having a point, if you have a point repair versus if you go into someone's residence and make sure that the gutter in the downspout, the floor drain in the basement, the garage drain, or any of the foundation drains, that would be funneled to a sump pump and then pump basically rainwater into the sanitary sewer system. Because on a dry day, our sanitary sewer system has complete capacity. It is fine. It is on a rainy day that there is a problem. So we're looking for a vehicle here that gives the government the opportunity to work with neighborhood by neighborhood, and specifically in the areas that have the worst problems, the ability to go in and identify where there are opportunities for us to push just regular water out to the street into the stormwater system and save the capacity of the sanitary sewer system. And as the proposal is outlined in the last two paragraphs of the handout, we'll sweep through targeted areas and keep a schedule with appointments. And the idea is that we want to work with individuals and to come into their home and see what kind of sump pump situation they have, how it is hooked up, how we could improve it. The specific force of the ordinance is that we're trying to use an approach here that we want to work with people and we want them to let us in. If we are not successful in being let in, we want to level a little bit of a fee against them to kind of get them online and wanting to work with us. That's kind of the stick part. The carrot part is a cost-sharing and reimbursement program that's been proposed as part of this. The objective of the cost-sharing reimbursement program is to invest smaller costs and effective sums of money in upstream solutions as proposed to more costly and disruptive downstream solutions. If we go out and we are trying to fix a point repair at any point in the sewer system, to open that ground up and to make that repair runs about $3,500 on average. So this would be a reimbursement program of up to $3,500 per household in the area that we're sweeping through. because, again, like the previous presentation, we're trying to solve problems in a certain area and in a certain time frame. So it's not the traditional, what do I want to call it, sump pump redirect program. This is done really more with the idea of doing it specifically in areas where we're going to be doing other work to try to knock down the number of manholes that overflow. So we had really good back and forth in the committee. Some great minds came together around the drafting as put together by Mr. Gardner, which did a great job. And it's summed up here, and it's a page and a half on pages 24, 25, and 26. but the idea here is we're just trying to provide a framework that lets us definitively go into residences, understand what kind of water is coming out and in what capacity. We want the sanitary sewer system to have sanitary sewer products in it, but we don't want it to have just regular rainwater pumped into it, which is what happens when multiple sump pumps on streets throughout neighborhoods kick on all at the same time, probably right now today because we've had i laid in bed last night and listened to the rain get harder and harder and harder and i thought somewhere there's a manhole that's getting ready to overflow and i kind of started listening for my own sump pump to kick on the basement not that that's illegal but let me know when the water is rising above the table of the basement so i would just tender this as I'm sure there will be questions and comments. Afterward, I would just make a motion to do it. Well, then I would so move to place on the, to have this committee forward to the full council this ordinance. Thank you. Thank you. Thank you, Council Member Farmer. You have made the motion to forward this draft ordinance to the full council. Vice Mayor Gordon has seconded the motion, so we're open for discussion. Council Member Henson. Thank you, Chair. Thank you, Council Member Farmer, for your work. I think this is a good ordinance from what I've read, and I appreciate it. But I did have one question involving, I know, for instance, the sidewalk repair program, if an individual property owner is low income, fixed income, whatever, is there any alternative that they would have? I mean, if you're looking at even a reimbursement, coming up with the initial cost may be a burden for them. I'll defer to Mr. Martin on that in its specificity. What we've used in the past is we've used kind of a third party of agreements to where a vendor or a plumber would be willing to do the work based on a promissory reimbursement on the part of urban county government. We have found that to work very well with folks who have cash flow issues. So would they receive some sort of notification, like when they were notified that there was a problem with your property? Yeah, we could set up a form that had, under my signature, that we agreed to reimburse up to a not-to-exceed value, and those are typically based on a previous estimate. We're doing that right now in the flooded basement prevention program that was initiated by a council this last fiscal year. We've been doing that in several different districts. I know three of them we've done in Councilmember Martin's district. Based on my signature, and based on a cost estimate we get from the plumber in advance that we agree that that is a reasonable cost for the work that's being proposed. And then I sign off on that saying that we agree to directly reimburse the plumber when it's done. They do that work basically on spec. What if the cost exceeds the $3,500 and they don't have the money? Well, if a cost exceeds the $3,500, I mean, clearly we're going to flag those. I can tell you that out of over 1,500 that we have done, only 44 have been more than $3,600. So they're rare, and we flag those significantly. The average cost for a sump pump redirection is less than $2,000. That's the key. And that's based on 1,500 redirects completed to date over the last 13 years. I think we'll flag those individually and deal with them. What we talked about in the committee, and I'm sorry to go on, but we looked at this, and there's going to be a cost-benefit aspect of it. For me to be able to get in and assess how dramatic the problem is is one thing, and there may be certain circumstances to where from a cost-effective standpoint, it's just not reasonable to redirect it. And if we get 9 out of the 10 out of that neighborhood, we're 9 out of the 10 better than we were before. Good. Thank you. Any other questions? Committee members, in that case, we're ready to vote. All in favor of the motion to move the draft ordinance forward to the full council, please say aye. Aye. All opposed? And that motion is approved. Thank you. Thank you, Mr. Chair. Our next agenda item is a report on the Keep Lexington Beautiful Commission, and I assume Mark York will present that report. Am I wrong? Actually, I'm Patricia Knight, and I'm chair of the Keep Lexington Beautiful Commission, so I will present the report, but Mark will be here for backup and questions. Ms. Knight, thank you very much. Thank you for having us here today. I think we have time to do this and probably have some council member questions afterwards. Okay, that's great. Okay, well, we're Keep Lexington Beautiful, and we all know we have a beautiful community, but we want to make sure that the public is aware of it as well as us. So we're here today to show you what we've done our first year. And prior to us actually becoming an official Keep America Beautiful affiliate, we had to put in a lot of work and effort to gain our certification. And we started back in May of 2009, and there was a task force of us, and there may have been ten people in the room, and today we have three of those as commission members still today. But part of what we had to do was we had to file a lot of paperwork with Keep America Beautiful to show our interest. Then we had to design a commission structure that would work for our community. We did a lot of research looking at Keep America Beautiful's history of all the organizations that they have as affiliates, and we found a mix that we felt worked best for Lexington. Then we also had to do a community appearance index study, which is where we actually do a survey of our community and assess how much litter we have in defined areas. After we completed that, we did a draft of the ordinance and the bylaws and submitted them to council for review and approval. And then after the ordinance was passed, we actually went out and found our commission members and went through the process to get them appointed to the commission, and then we were up and running at that point. So all of that took us until August of 2010. So who are we? We're comprised of government, industry, and citizens, and we felt that was the mix that worked best for us because we needed the government support to follow through with litter prevention and abatement issues, and they are the ones most knowledgeable of a lot of the issues that we have to deal with in the legal side of it. We have to have industry involved because the industries are the ones that have a very vested interest in it, and they have money and resources that we need to leverage to help accomplish our mission. Then we also have to involve the citizens, and so we engage private citizens as well as neighborhood associations. So our commission listing is up there, and we currently have two vacancies, so we are looking for someone to represent equine agriculture as well as a neighborhood association. So if there's anyone in your district that might make a good candidate for us, just let us know and we'd be happy to pursue them. Our mission is to engage individuals, businesses, and organizations in Fayette County to take personal responsibility for improving the environment. We felt like, as Keep Lexington Beautiful, we can clean up things, but we can't stop it at the source and prevent it from ever happening. So until we convince individuals not to litter, we're going to be dealing with the cleanup. but ultimately our goal is to get these citizens engaged so that there's not as many cleanup efforts as we have today. And our purpose as defined by the ordinance is litter prevention and beautification and community involvement and waste reduction. So that's where we spend our efforts and energy. During 2011 year, with 11 commission members, we spent over 500 hours volunteering. And I actually think that number is a little low because we really weren't too sure we were supposed to be tracking our hours until late in the process. So with the donated time value, we contributed over $11,000 to the local community in our time and efforts. In 2011, since this was our first year, we spent a lot of time just trying to figure out who we were, developing an identity in a first-year action plan. During the first year, we had four major projects that we worked on. and one was the Community Appearance Index. We did a project with illegal dumps. We did the Great American Cleanup, which is our primary role, and we did some cigarette litter prevention. So the Community Appearance Index is actually an annual requirement by Keep America Beautiful where we actually go out, we take a GIS map and define an area, map it into eight areas, get groups of volunteers, and we go out and physically drive the streets and rate litter on a four-tier scale with one being one person could clean it up in a short amount of time, and four, we need heavy equipment to help us clean it up. So we did that in March of this past year, and we had an average litter index of 1.75 on a four-point scale. So we are pretty clean overall. This year we added graffiti as an optional item to study because we know that there's an increased problem with graffiti in Lexington, and we want to see what we can do to help bring it down. So on a litter graffiti index study of 1 to 4, we also came up with a 1-1-2 ratio there. And just for comparison points, because we don't have a lot of things to compare because we are a new agency, in 2009 our litter index was 1.39. Now that is an increase for 2011, but the reason is because we changed the zoning areas during our first initial evaluation. We actually included a lot of the outlying counties, So we covered a lot of the horse farms and areas that are very clean by default. So this year we scaled it back in and brought it more towards downtown and did a high focus on downtown and outside. So we had an increase there. We also changed the timing of the study. We did our first one in August, and we moved to March so that we wouldn't be dealing with foliage and litter that's hidden in foliage. So we felt like those two things impacted it. we also did an illegal dump cleanup Councilman McCord came to us in February with an idea to partner with Department of Corrections and environmental policy and code enforcement to do an illegal dump cleanup at the time we had 10 illegal dump sites in Fayette County and on April 13th we started the project on Kill Rush Drive where we actually brought in the Department of Corrections They brought in some inmate help and cleaned up that site. During these projects, we also separated trash and recyclables, so all the recycled material did not just go straight to the dump. And that was great cleanup. Great American Cleanup, this was our first year of doing it, and Great American Cleanup is Keep America Beautiful's signature event. It runs from March 1st to May 31st of each year. And all of our events this year were community-focused, So if someone just wanted to clean out their garage or attic, it was not a Keep America Beautiful, Great American Cleanup project. We stopped those. Every event that we took responsibility for reported back to us, and then we summarized all of that and sent that to Keep America Beautiful. And that's where we got all of these numbers here. So we cleaned up over 94,000 pounds of trash and debris out of community-focused areas this past year. Next year, we'll be able to add in comparison points. but because we didn't control Great American Cleanup last year, we don't have a comparison point. So during the 2011 cleanup, we had some great community partners. Valvoline and St. Oil Change sponsored a cleanup event out at Chillitoe Park. They had 70-some employees come out that day with their families and did a big cleanup. It was a great event. Bluegrass Hospitality Group sponsored an event out at Jacobson Park where we cleaned up the whole park in just a matter of maybe four hours. Modern Properties sponsored a project out at Cardinal Valley for a neighborhood cleanup. We also had projects with Reforest the Bluegrass, downtown Trash Bash, churches, companies, schools, parks, neighborhoods. We had a total of 70 events during the Great American Cleanup. We felt like that was a very good first-year effort for us. We did get a lot of media coverage during the 2011 cleanup. We were blessed with the fact that Water Quality provided some funds for purchasing some media time. That was leveraged to get us coverage on WKYT, LEX, WTVQ, G3. We also had coverage in the Herald Leader and WKY. And Councilman Lane was kind enough to give us some ad space in the BG magazine. So we appreciate all of the free media that we received there. and in total this past year we had over $127,000 worth of services and benefits provided to the community through our efforts. And another thing that is really important to us is this is the first year that we coordinated it, but it's also the first year that LFUCG only had one day of overtime for the project. In 2010, during the cleanup, the Department of Water Quality alone had $45,000 in overtime costs. This past year, they had $1,000 in overtime costs. So we're very pleased to be able to provide efforts that save the government money. We also focused on cigarette litter during 2011, and we have distributed pocket ashtrays to over 2,000 individuals. We were distributing them at Spotlight Lexington, at the Friends of the Cane Run Watershed Festival, at the Home and Garden Show, at Thursday Night Live. We've also partnered with some local businesses to distribute them to their employees and patrons. Bluegrass Hospitality Group distributes them to all 600 of their employees, well, the smokers of the 600, as well as patrons. Gratz Park Inn distributes them to overnight guests as well as any smoking staff that they see. Natasha's theater group distributes them to their patrons as well as the individual performers that are smokers. And Cardinal Hill Hospital took a portion to allot out to smokers at their hospital. G3 TV produced a great advertisement for us that was a cigarette litter fairy. The message is there is no cigarette litter fairy out there cleaning up after you, so don't throw it down. That aired on TV and on the radio. and we were fortunate enough to use some of the limited funding that we have to be able to purchase a spot during the UK-Dominican Republic game, so we know we touched a lot of individuals during that time period. During the spring, we launched the Cigarette Litter Camp Prevention Program by the Keep America Beautiful standards, and we followed their protocol on it where we developed a task force and applied for some grants. We received two $2,500 grants in total to do a pilot program in downtown Lexington and on some of our smoke-free campuses. So our task force developed a pilot program, and we actually went out to the areas we targeted and did pre-scans, which means we went and picked up the cigarette butts and physically counted them. Very fun job. If you ever need something to do, give us a call. Then we implemented the program and waited for a time period defined by Keep America Beautiful. And then we went back and did post scans, the exact same thing, go back and pick up the cigarette butts. And as you can see on this slide, the sites that we had implemented the program as a pilot had significant reductions in the number of cigarette butts counted on the grounds on those sites. St. Joseph Hospital was our number one participant. We were very pleased with their reduction results. results. As you can see, they're down 91%, so that is great effort and proves that the program does work effectively. So one of the things we'll be doing in 2012 is rolling that out further. Here's the wrap-up of the dollars and services that the Cigarette Litter Prevention Program have benefited the community with just over $5,000, and most of that was with the grant funding we received from Keep America Beautiful. So in summary, our 2011 year was a big success. We had a number of events, lots of volunteers. We reached a lot of people in the community. We had a lot of dollars of donated services and donated contributions, and we provided a total of $163,000 of documented benefit to the community during our first year. So we think we did a great job, and in 2012, we'll be continuing on. We're going to continue to develop a strategic plan that we have now to guide us. Now that we have one year under our belt. We know where we're going and we know how to get there now. We're expanding our website and breaking into some social media and Group CJ and Kentucky American Water are our sponsors and providers for those. We will be continuing our media coverage looking for any opportunity we can get to get the message out for Keep Lexington Beautiful. We are going to expand the Great American Cleanup. We're going to do an expansion on the Cigarette Litter Prevention Program. We're looking at corporate sponsorship opportunities. We're going to be implementing some sort of graffiti program where we have recently met with the Sheriff's Department, the Police Department, and Parks and Rec to see how we can help them leverage some Keep America Beautiful funds to help further the program along and reduce graffiti in Lexington. We will be doing a Do the Green Thing project in the spring of 2012 where we encourage citizens to do the right thing and provide incentives and reward opportunities for them being caught doing the green thing. We also just recently, two weekends ago, wrapped up a paper shred event for America Recycles Day. That was a partnership with CentOS and Waste Management, and we shredded over 32,000 pounds of paper on that day that it sent off to the recycled centers. And then we are also in the process of reviewing the state litter statute to see if there's some revisions that can be made to make it easier for us to prosecute and deal with litter people. So that's all I have, so if you have questions. Oh, and one more thing is we couldn't have done any of this without our fine executive director, Mark York. So special thanks to him and Commissioner Susan Bush. Well, Ms. Knight, thank you very much. That was the most energetic review of your work and of really positive accomplishments. I think we all know that our litter problem is pervasive, that it's an environmental problem, it's an aesthetic problem, it's an economic problem. You've saved us some money. You've made enormous strides in cleaning up areas of the cities. We certainly don't envy your work with cigarette butts, but we certainly appreciate them. On behalf of the committee, if there's anything that we can do to help you move your efforts forward, we'd like to hear from you on that for sure. So thank you again. Appreciate your report and look forward to working with you in the future. Well, I'm sorry. Council Member Myers has a question. Thank you, Mr. Chair. Thank you, Ms. Knight, for coming in. Great presentation, and thank you for all you do for our city. Just one quick question. Could you guys possibly add picking up illegal yard signs as part of your mission? We've had some discussions on that in our commission meetings, and Dave Jarvis is on our commission from code enforcement. And as part of the beautification side of it, we can definitely take that under advisement and see what our efforts could result in with that. Okay. If you need any help from us, could you let us know? We will. And then we'd love to hear back from you if you decide to take that on as part of your mission. Okay. Okay. Thank you very much. Thank you. Thank you. Thank you again. Committee members were almost, I'm sorry, Council Member Henson, I didn't see your, okay. Sorry for that. We're about out of time, so I think we will have to defer our environmental quality projects update until our next meeting. I do have, I think, one member of the public who would like to make public comment, and that's Mr. Cucci. If you could come forward at this time. and if you'll give us first your name and address and you'll have up to three minutes. Okay, thank you. Thank you and welcome. Greetings on this rainy day. My name is Edward Cushy. I am from 2089 Bursells Road. Thank you for this opportunity for me to express an opinion before your committee. concerning and relevant to clean water and good sewers, as a tax-paying citizen and small business member of this community, last week I mailed a letter to Mayor Gray with a copy mailed to each of you. If you would please read and consider this letter. Also, please accept my sincere wishes that everyone in this room will have a truly enjoyable and happy Thanksgiving. Thank you, Mr. Cushing. Committee members, we have a few minutes to transition over toward work session. So unless there's any other comments, I'd be happy to hear a motion to adjourn. Move to adjourn. Second.