Council Environmental Quality Committee

Summary

Meeting Overview

The Environmental Quality Committee met on November 12, 2013 at 11:00 AM, with Stinnett presiding. The committee addressed six agenda items during the meeting, including approval of the October 8, 2013 Committee Summary and the Climate Adaptation Follow Up. The committee also approved Change Order Amendment CAO 15R. Two informational presentations were provided on the Energy Investment Fund and Monthly Financials, while Items Referred were presented for informational purposes. The committee took one motion and vote during the meeting and heard three public comments.

Attendance

The following individuals were present at the meeting on November 12, 2013:

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

No absences or late arrivals were recorded.

Votes and Decisions

The board voted on support for the Division of Water Quality's recommendation regarding change orders for remedial measures. The motion was made by Massadi and seconded by Scutchfield. 1:08:49

The motion passed by voice vote with no recorded opposition or abstentions. The following members voted in favor: Stinnett, Mossotti, Gorton, Akers, Farmer, Scutchfield, Myers, Clarke, Henson, and Lane.

This approval applies specifically to change orders for remedial measures projects under the consent decree only and does not extend to all city contracts.

Budget and Financial Actions

The meeting addressed two significant financial actions related to energy management initiatives.

Energy Improvement Fund Seed Funding

The city received $2.7 million in seed funding for the Energy Improvement Fund from the U.S. Department of Energy Energy Efficiency and Conservation Block Grant. This funding supports the establishment and initial operations of the energy improvement program.

Utility Tracking Software Purchase

The city approved funding of $1.3 million for the purchase of utility tracking software from EnergyCap. This software will support energy management and monitoring capabilities across city operations.

Public Comment

Three council members addressed change order procedures and oversight during the meeting.

Council Member Lane 49:23 emphasized the need for better information access regarding change orders. Lane suggested that detailed change order documentation and website updates would improve council oversight and enhance public transparency.

Council Member Scutchfield 1:01:22 requested regular updates on change orders to ensure the council receives timely awareness and can exercise effective oversight of these modifications.

Council Member Clark 1:05:20 sought clarification on the scope of the proposed change order policy, specifically asking whether it would apply only to remedial measures or to all city contracts. The Chief Administrative Officer (CAO) confirmed that the policy applies only to remedial measures.

Contested Items

Change Order Approval Process

The council experienced a split vote regarding the change order approval process. While most members supported implementing a tiered change order system, significant concerns were raised about its transparency and oversight mechanisms.

Council Member Lane emphasized the need for better documentation and public access to change order data, highlighting concerns that the proposed system could inadequately protect against scope creep. The disagreement centered on whether the tiered approach would provide sufficient safeguards and accountability for public scrutiny.

The contested points included: - Transparency requirements for change order documentation - Public access to change order data - Risk of scope creep under the tiered system - Oversight mechanisms to ensure accountability

The split vote indicates that while a majority of council members favored moving forward with the tiered change order system, the concerns raised by Council Member Lane and others reflected meaningful divisions on how to balance efficiency with public accountability and fiscal control.

October 8, 2013 Committee Summary

4:29

The committee approved the summary from the previous meeting held on October 8, 2013, with no corrections required.

Key Speakers - Stinnett - O'Mara

Discussion Topics

The meeting included updates on three main areas:

• Monthly financials
• Climate adaptation
• Empower Lexington Plan

Outcome

The committee approved the October 8, 2013 meeting summary without modifications.

Energy Investment Fund

James Bush presented an overview of the Energy Improvement Fund (EIF) during this agenda item. 5:01

Fund Status and Funding Source

Bush detailed the fund's current financial position, reporting a $650,000 balance. The fund utilizes seed funding provided by the U.S. Department of Energy to support its operations and project implementation.

Proposed Projects

The presentation outlined several categories of potential projects for fund allocation:

• Lighting retrofits
• Metering upgrades
• Potential acquisition of downtown streetlights

Committee Discussion

Committee members Akers and Lane participated in the discussion alongside Bush. The committee focused on two primary areas of inquiry:

• Measurement and verification methods for evaluating project outcomes
• Project selection criteria for determining which initiatives would receive funding

Outcome

This agenda item was informational in nature, with no formal action or decision recorded as a result of the presentation.

Change Order Amendment CAO 15R

Vernon Acevedo presented a tiered change order approval process for remedial measures projects during this agenda item 32:56. The proposal established a structured system for authorizing change orders based on contract value thresholds.

Proposal Details

The presented framework included staff-level approvals for change orders up to 5% of contract value, with higher dollar amounts requiring additional oversight and approval from higher authority levels. This tiered approach was designed to streamline the approval process while maintaining appropriate controls for larger expenditures.

Committee Discussion

The committee members participating in the discussion included Acevedo, Massadi, Lane, Akers, Scutchfield, and Clark. The proposal generated discussion among these members regarding the appropriate thresholds and oversight mechanisms for different change order amounts.

Outcome

The committee supported the recommendation through a voice vote, approving the Change Order Amendment CAO 15R. The tiered approval process was adopted as presented.

Climate Adaptation Follow Up

1:09:58

Scott Shapiro from the administration addressed a prior presentation on climate adaptation. Shapiro stated that Lexington was already making progress on resilience and energy security initiatives, and therefore determined that the city did not need to sign the Resilient Communities of America agreement.

Stinnett participated in the discussion alongside Shapiro.

The committee accepted the administration's position on this matter.

Outcome: Approved

Monthly Financials

Bill O'Mara presented the FY14 financials for multiple funds, including the Sanitary Sewers and Landfill Funds 1:14:16. The presentation covered fund balances, debt levels, and future financial projections for these operations.

O'Mara noted that rate increases would be delayed until they become necessary, indicating a measured approach to adjusting fees based on actual financial needs rather than implementing increases preemptively.

Schonegger was also present during this agenda item. No questions were raised by attendees regarding the financial presentation or projections.

The outcome of this agenda item was informational, with no decisions or actions required.

Items Referred

1:17:32

No items were referred to the committee for discussion at this meeting. Stinnett confirmed that there were no pressing issues requiring committee attention for the upcoming December meeting. The committee acknowledged this status as an informational matter, with no further action needed.