Council Environmental Quality Committee

Summary

Meeting Overview

The Environmental Quality Committee met on August 20, 2013, at 11:00 AM under the presiding officer Stinnett. During this meeting, the committee addressed six agenda items, heard six public comments, and took six votes.

The committee approved the April 23, 2013 Committee Summary and the Internal Audit Waste Management Audit. The Distillery District Update was deferred to a later date, while the Empower Lexington Plan: Public Component was tabled. Two items—Monthly Financials and Items Referred—were presented for informational purposes only.

Attendance

The following individuals were present at the meeting on August 20, 2013:

• Stinnett
• Mossotti
• Gorton
• Akers
• Farmer
• Scutchfield
• Myers
• Clarke
• Henson
• Lane
• Kay

No absences or late arrivals were recorded.

Votes and Decisions

Approval of the April 23, 2013 Committee Summary 8:33 Motion by Scutchfield, seconded by Clarke. The motion passed unanimously by voice vote.

Motion to Amend Original Motion to Include a Floodplain Study 52:33 Motion by Akers, seconded by Scutchfield. The motion failed by voice vote.

Motion to Proceed with Recommendation One and Defer Recommendation Two 1:00:03 Motion by Gorton, seconded by Myers. This motion addressed proceeding with Town Branch Trail easements and design engineering while deferring street design and engineering. The motion passed by voice vote.

Motion to Amend Previous Motion to Include Streetscape Design and Construction in the Distillery District 59:00 Motion by Akers, seconded by Gorton. The motion passed by voice vote.

Motion to Conduct a Follow-Up Audit on Internal Waste Management Audit Findings by October 31st 1:44:18 Motion by Henson, seconded by Myers. The motion passed by voice vote.

Motion to Table the Empower Lexington Presentation 1:48:42 Motion by Scutchfield, seconded by Scutchfield. The motion to table the presentation to allow full discussion at the next meeting passed by voice vote.

Budget and Financial Actions

The meeting included appropriations totaling $2.5 million for two infrastructure projects.

Town Branch Trail and Town Branch Park

An appropriation of $1,700,000 was approved for design and engineering of the Town Branch Trail and Town Branch Park in the Distillery District.

Street Design and Engineering

An appropriation of $800,000 was approved for street design and engineering from Broadway to Manchester.

Public Comment

Six speakers addressed the meeting with concerns focused on the Town Branch Creek corridor, the Distillery District development, and project planning processes.

Town Branch Trail and Connectivity

Henson [0:12:53] asked about the extent of the Town Branch Creek corridor and whether the planned trail would connect to downtown, emphasizing that connectivity is essential for both development and public access to the area.

Build America Bonds and Funding

Gorton [0:15:18] expressed concern that Build America bond funds originally designated for the Distillery District should not be diverted to ineligible projects, such as street design work outside the district boundaries.

Creek as Central Feature

Clark [0:23:03] stressed that the creek should be recognized as a key attraction and central focus in planning efforts, rather than being overlooked in infrastructure discussions.

Project Sequencing Concerns

Akers [0:34:22] argued that the street design project is premature without completion of a floodplain study and establishment of basic utilities, including sewer access.

Infrastructure and Investor Needs

Lane [0:41:10] emphasized that potential investors require clear plans for access, utilities, and street design before committing to development in the Distillery District.

Audit Follow-Up

Myers [1:22:00] requested clarification on whether audit findings had been addressed and asked that the auditor be contacted for updates on the status of those recommendations.

Contested Items

The August 20, 2013 meeting included three significant areas of disagreement among council members.

Use of Build America Bonds for Street Design Outside Distillery District

Council members were divided on whether Build America bond funds should be allocated for street design work extending from Broadway to Manchester, outside the Distillery District. The core concern centered on whether this use of funds aligned with the original intent of the bonds. Some members worried that directing money toward this street design project would constitute a diversion from the bond's intended purpose.

Timing and Scope of Floodplain Study

A heated discussion emerged regarding a proposed $500,000 floodplain study. Council members debated whether this study should be included in the current project scope and timeline. Beyond the question of timing, disagreement arose over the study's cost and whether it qualified as an eligible expense under the bond funding guidelines. The debate reflected concerns about both fiscal responsibility and compliance with funding restrictions.

Follow-up Audit Process

A procedural dispute developed over the proper mechanism for mandating a follow-up audit. Council members disagreed on whether the council possessed the authority to directly order a follow-up audit or whether such action must be routed through the Internal Audit Board, which oversees the audit process. This disagreement centered on governance structure and the appropriate chain of authority for audit-related decisions.

April 23, 2013 Committee Summary

The April 23, 2013 Committee Summary was presented for approval at this meeting 8:33.

Action Taken

The summary was approved unanimously on a motion by Scutchfield and a second by Clarke.

Distillery District Update

The committee reviewed recommendations regarding the use of $1.7 million in Build America bonds for infrastructure improvements in the Distillery District. 9:03

Scope of Work

The proposed funding would support design and engineering for multiple projects:

• Town Branch Trail design and engineering
• Town Branch Park design and engineering
• Street design work from Broadway to Manchester

Key Discussion

Committee members Gorton, Akers, Henson, Clark, Lane, and Myers participated in the discussion of these recommendations.

Motion and Outcome

The committee passed a motion to prioritize the trail work as the first phase of the project. A follow-up audit was requested as part of the approval process.

The agenda item was ultimately deferred.

Internal Audit Waste Management Audit

1:18:06

The Office of Internal Audit presented findings from an audit of Waste Management operations, identifying several purchasing and accounting violations that required corrective action.

Key Findings

The audit revealed the following issues:

• Improper fiscal year recording of transactions
• Lack of uniform policy governing Waste Management procedures
• Incorrect fund coding in accounting records

Speakers and Discussion

The presentation involved speakers including Salih, Bourne, Feese, and Henson, who addressed the audit findings and their implications for departmental operations.

Outcome

The body approved a follow-up audit to be completed by October 31st, establishing a deadline for the Office of Internal Audit to reassess Waste Management's corrective actions and ensure compliance with proper accounting and purchasing procedures.

Empower Lexington Plan: Public Component

Kay presented on the Empower Lexington Plan's public component during this agenda item 1:48:42.

Due to time constraints during the meeting, the presentation was not completed. The item was tabled to allow for full discussion and consideration at the next scheduled meeting.

Monthly Financials

The committee reviewed monthly financial reports during this agenda item 1:49:44. Key speakers in this discussion included Stinnett, Gorton, O'Mara, and Stone.

The review focused on two primary areas:

• Water Quality Fund — Discussion centered on the fund's long-term obligations and their financial implications.
• Landfill Fund — The committee examined expenditures associated with this fund.

No action was taken on the matters presented. The session was informational in nature, with the committee receiving and discussing the financial reports without moving forward with any formal decisions or resolutions at that time.

Items Referred

No specific items were discussed under this agenda item. The committee noted that future items would be referred for review.