Environmental Quality Committee

Summary

Meeting Overview

The Environmental Quality Committee met on February 18, 2014, at 11:00 a.m. at Lexington-Fayette Urban County Government, with Stinnett presiding. The committee addressed five agenda items, took five motions and votes, and heard five public comments during the session.

The committee approved the January 28, 2014 Committee Summary and approved Items Referred. Two informational presentations were provided on the Tree Canopy Survey and Monthly Financials. The Material Recovery Facility (MRF) Audit was deferred to a future meeting.

Attendance

Present: Stinnett, Mossotti, Gorton, Akers, Farmer, Scutchfield, Myers, Ciarke, Henson, Lane

Absent: Kay

Late: None

Votes and Decisions

The committee took five votes during the February 18, 2014 meeting, all of which passed by voice vote.

January 28, 2014 Committee Summary 0:00 A motion by Scutchfield, seconded by Gorton, to approve the January 28, 2014 committee summary passed by voice vote.

Division of Water Quality Construction Process 0:00 A motion by Myers, seconded by Scutchfield, to remove the division of water quality construction process from the committee referral list passed by voice vote.

Annual Report on Public Education Effectiveness 0:00 A motion by Farmer, seconded by Scutchfield, to remove the annual report on public education effectiveness from the committee referral list passed by voice vote.

Waste Management Expenditure Audit 0:00 A motion by Myers, seconded by Scutchfield, to remove the waste management expenditure audit from the committee referral list passed by voice vote.

Adjournment 2:15:59 A motion by Farmer, seconded by Clarke, to adjourn passed by voice vote.

Budget and Financial Actions

The meeting included a review of monthly financials across multiple fund categories:

• Sanitary Sewer Operating Fund — Monthly financial overview presented
• Water Quality Fund — Monthly financial overview presented
• Construction Fund — Monthly financial overview presented for the newly created fund

No specific dollar amounts, resolution numbers, or vendor information was provided during the financial discussion.

Public Comment

Council members raised several concerns during the meeting, focusing on recycling facility management and urban forestry coordination.

Recycling Facility Management

Council Member Lane 1:38:29 praised the audit report as thorough and detailed, noting that the Materials Recovery Facility (MRF) has been grossly mismanaged for years due to inadequate accounting, poor management, and lack of transparency. He advocated for restructuring the MRF into an enterprise fund and implementing new management and accounting controls.

Council Member Scotchfield 1:40:44 commended the audit for bringing critical issues to light and stressed the need for the committee to address mismanagement, improve transparency, and ensure accountability in the MRF's operations.

Council Member Hinson 1:42:51 emphasized the lack of communication from management regarding critical issues including the MRF audit, RFPs, and hiring an accountant. He requested a written action plan with next steps and monthly updates to ensure accountability.

Urban Forestry Program

Council Member Akers 2:04:32 highlighted concerns about the fragmented nature of the urban forestry program, which operates across multiple departments. He stressed the need for centralized control and coordination to maximize program effectiveness.

Council Member Farmer 2:08:27 connected tree canopy data to practical city services, suggesting that canopy coverage information could inform leaf collection prioritization, particularly in districts with high tree density.

Contested Items

Lack of Follow-up on Audit Recommendations

Council members expressed significant frustration regarding the repeated failure to implement audit findings. Council Member Myers and Council Member Henson were particularly vocal in emphasizing that prior recommendations had been consistently ignored. The core disagreement centered on the absence of enforcement mechanisms and accountability measures to ensure that corrective actions were actually implemented. Council members stressed the need for stronger oversight to prevent this pattern from continuing.

Mismanagement and Transparency at MRF

A heated discussion arose over systemic failures identified in Materials Recovery Facility (MRF) operations. The audit revealed multiple serious issues, including poor accounting practices, safety risks, and inadequate oversight. Council members criticized the lack of communication and transparency surrounding key operational matters, specifically citing concerns about the Request for Proposals (RFPs) process and the failure to hire an outside accountant. The disagreement reflected broader concerns about governance and accountability at the facility.

January 28, 2014 Committee Summary

0:00

The committee approved the January 28, 2014 summary without dissent. Key speakers on this agenda item included Scutchfield and Gorton.

During the discussion, council members emphasized the need for improved communication, transparency, and follow-up on audit findings. No specific concerns or objections were raised during the approval process.

The summary was approved as presented.

Material Recovery Facility (MRF) Audit

15:21

Bruce Sahli and Charles Martin presented findings from an audit of the Material Recovery Facility. The presentation identified 12 critical issues requiring attention:

Key Findings:

• Lack of segregation of duties in financial and operational management
• Inadequate security measures at the facility
• Excessive overtime costs
• Poor accounting practices
• Absence of formal contracts with affiliate organizations and BRRC (Blue Ridge Recycling Company)

Committee Concerns and Recommendations:

The committee emphasized several operational and management priorities:

• Need for a dedicated plant manager position
• Requirement for an on-site accountant to improve financial oversight and controls
• Improvements needed in safety protocols and practices
• Development of a formal action plan to address the identified deficiencies

Outcome:

The agenda item was deferred, indicating the committee did not reach a final decision or resolution at this meeting and plans to revisit the matter at a future date.

Tree Canopy Survey

John Saylor and Jenny Gulick presented the results of an urban tree canopy analysis 1:46:12. The analysis found that the urban service area currently has 25% canopy coverage.

The presentation included several components:

• Results of the urban tree canopy analysis
• A prioritized planting plan
• Ecosystem benefit calculations
• Tools for future management

The committee discussion that followed identified key needs and opportunities for the city's urban forestry efforts. Susan Pluger participated in the discussion alongside the presenters.

A primary concern raised during the discussion was the need for a unified urban forestry management plan to guide future tree planting and maintenance efforts across the city. Committee members also discussed the potential for public-private partnerships to support tree canopy expansion and management initiatives.

The outcome of this agenda item was informational, providing the committee with data and analysis to inform future policy and planning decisions related to urban tree canopy.

Monthly Financials

O'Mara presented a financial snapshot covering three fund areas: sanitary sewer, water quality, and construction funds 2:15:00.

Key Presentation Points

O'Mara provided updates on the current financial status across the three funds, offering the board with an overview of the financial position during the reporting period.

Issues Identified

During the presentation, discrepancies in revenue reporting were noted. O'Mara identified concerns related to collection rates and billing system performance that required further investigation.

Next Steps

O'Mara committed to conducting additional research to address the identified discrepancies. This research will focus on understanding collection rates and evaluating how the billing system is performing.

Outcome

This agenda item was informational in nature, with no formal action taken. The presentation served to update the board on current financial conditions while flagging areas requiring further analysis and follow-up.

Items Referred

The committee voted to remove three items from the referral list during this discussion. The items removed were:

• The division of water quality construction process
• The public education effectiveness report
• The waste management expenditure audit

Key speakers in this discussion included Stinnett, Myers, Farmer, and Scutchfield.

The committee also addressed the broader process for handling referred items, noting the need for revenue analysis before dropping additional referred items from consideration. This discussion reflected the committee's effort to manage its referral workload while ensuring that financial implications were properly evaluated before items were removed from review.

The outcome of this agenda item was approved.