Grant Criteria Committee Agenda
Stewardship Committee Agenda
Acquisition Committee Agenda
Infrastructure/Wastewater Agenda
Personnel Committee Agenda

Acquisition Committee
Clean Water Management Trust Fund
(Trustees Cragnolin, Chair; Baddour, Coleman, Garrett, Hollan, McLean & Vaughan)
Clean Water Management Trust Fund
Yogi Bear's Jellystone Park Club House
626 Richard Wright Road
Tabor City, North Carolina

Sunday, February 12, 2006

AGENDA

Karen Cragnolin, Chair, Presiding

1:00 pm             I-A. Call to Order – Chair Cragnolin

•  Welcome – Chair Cragnolin

•  Executive Order Number One – Chair Cragnolin

•  Revisions and additions to the Agenda – Chair Cragnolin

1:05 pm             I-B. Status of Active Acquisition Contracts – Robin Hammond (Information Item)

1:15 pm             I-C. Review of Standard CWMTF Acquisition Contract and Standard CWMTF Conservation Easement – Robin Hammond (Information Item)

1:25 pm            I-D. Riparian Buffer Requirements on Properties Purchased by State Agencies with CWMTF Funds – Francine Durso (Potential Action Item                     

CWMTF has assisted many state agencies, including the NC Wildlife Resources Commission, NC Division of Parks & Recreation, and NC Division of Forest Resources, with acquisition of land in fee for conservation. CWMTF provides funds for acquisition of riparian areas, wetlands, and floodplains, and the Natural Heritage Trust Fund, Parks & Recreation Trust Fund, or other sources provide funds for the acquisition of uplands.

CWMTF does not hold easements on state owned conservation lands. State owned conservation lands are instead dedicated pursuant to the NC Nature Preserve Act by the Natural Heritage Program in cooperation with the agency that is managing the property for conservation.

Since 1997 in its contracts with state agencies CWMTF has required for riparian buffer protection: 1) nothing, 2) 100 feet restrictively protected, 3) 100 feet restrictively protected and an additional 200 feet protected under less restrictive conditions; and 4) 500 feet restrictively protected in one case.

In an effort to be consistent, staff has recommended and the Board has approved in individual project scopes of work that at least 100 feet be restrictively protected since the 2004A cycle.   Staff recommends that the Board continue to require that 100 foot wide riparian buffers from the top of bank of all perennial and intermittent streams be restrictively protected on all tracts on which CWMTF funds are provided to state agencies.   Staff believes that 100 foot buffers are adequate because the State owns and will manage the entire property for conservation.

1:35 pm             I-E. 2003A-034 – NC Wildlife Resources Commission's Lone Mountain Project – Tom Massie (Action Item)

In July 2004, the Board provided a grant of up to $561,000 to the NC Wildlife Resources Commission to help acquire the 1265-acre Lone Mountain tract in Rutherford County in the Broad River Basin.   Funds were disbursed to WRC for the acquisition in Sept. 2004.   On January 13, 2006, WRC emailed CWMTF to request a variance from the requirement that a 100 foot forested buffer be dedicated.   CWMTF staff will visit the site on February 8, 2006 and will make a recommendation to the Committee at the meeting.

1:45 pm             I-F.   2004M-004 – Lumber River Conservancy's Slaughter Tract Request to Reallocate Funds – Nancy Guthrie   & Bill Holman (Action Item)

In January 2005 the Board provided a mini-grant of up to $25,000 to the Lumber River Conservancy (LRC) for pre-acquisition costs to purchase the 48-acre Harriet Slaughter tract in Hoke County, located on the Lumber River across from Chalk Banks in the Lumber River State Park.   On August 2, 2005 LRC requested and CWMTF staff approved use of up to $7800 to fund pre-acquisition costs associated with the purchase of the 171-acre Hunt/Maynor tract in Hoke County.

The Board approved grants of up to $57,000 and $188,000 to LRC to purchase the Slaughter (#2005B-021) and Hunt/Maynor (#2005B-019) tracts, respectively, at its November 2005 meeting.   The mini-grant expires on March 31, 2006.

On January 14, 2006, LRC wrote CWMTF advising that there were funds remaining in this mini-grant that LRC would not need to use for the Slaughter or Hunt/Maynor tracts.   LRC received a donation of 61-acres in fee on the Lumber River in Robeson County from Mr. Robert Ballard at the end of 2005 and would like to reimburse the donor for his costs for legal fees, recording, and appraisal.   LRC requests that it be allowed to reimburse up to 80% of the closing costs up to $3800 from some of the remaining mini-grant funds to reimburse the donor his costs on this separate, donated tract.  

CWMTF staff recommends that the Board not support LRC's request to use mini-grant funds intended for pre-acquisition expenses for a donated easement project. CWMTF staff recommends that LRC request a donated easement grant and use the donated easement budget template from CWMTF in March to cover the costs associated with Mr. Ballard's donation. CWMTF staff will visit the site with LRC before the March meeting.

1:50 pm             I-G. Consistency on Reimbursement of Administrative Costs for CWMTF Acquisition Projects – Francine Durso (Potential Action Item)

A growing number of applicants for acquisition grants are including administrative costs in their grant requests, shown as overhead, indirect or facilitation, and not calculated in a uniform way.   In the 2006A Cycle, 40% of the non-state agency applicants requested administrative funds, whereas in the 2005B Cycle, only 22% of such applicants requested administrative funds.  

The Committee may wish to consider consistency in including administrative costs in grant agreements, with costs calculated in the same way.   Staff suggests the following possible options for acquisition projects:

•  Option 1:   Follow the State Property Office guidelines which calculates allowable administrative costs based on the purchase price of the property as 3% of the first $500,000 of the purchase price, 2% of the second $500,000 of the purchase price, and 1% of the amount of the purchase price in excess of $1,000,000, not to exceed $30,000 (3-2-1 option).   However, staff is concerned that this method may result in overly expensive administrative costs.   

•  Option 2: Use a standard percentage of the direct transaction costs (the project costs excluding the purchase price of the property, stewardship and interest expenses).  

As an example only, for the 2006A cycle, staff compared administrative costs that might be approved under the 3-2-1 option and under the standard percentage of direct costs option, for consideration by the Committee.   Under any option, staff suggests that the administrative costs not be paid until all final documentation, per the contract, has been received by CWMTF.   This should help ensure timely close out of the acquisition projects after CWMTF funds have been disbursed; currently, some grantees do not forward final documentation for months or in some cases years after the property transaction.

At its January 2006 Retreat at Lake Lure the Board decided to let each committee review administrative costs. Does the Acquisition Committee want to adopt a rule of thumb on administrative costs?

2:10 pm             I-H. 2003A-040 – Triangle Land Conservancy's Marks Creek I Project – Leland Heath (Action Item)

In November 2003, the Board provided a grant of up to $1,776,000 to assist the Triangle Land Conservancy (TLC) with acquisition of several tracts on Marks Creek in Wake County in the Neuse River Basin. Wake County provided matching funds and will own the land. On December 22, 2005 TLC wrote CWMTF to request: 1) transfer of the grant to Wake County, and 2) increase the budget to acquire the Williamson tract and decrease the budget for the Triangle East Sportsman Club property (acquired by EEP). CWMTF recommends that the Board approve TLC's request.

2:15 pm             I-I.   2005A-027 – Piedmont Land Conservancy's Berry Tract on Hyco Lake – Leland Heath (Action Item)

At its August 8, 2005 meeting the Board approved a grant to the Piedmont Land Conservancy (PLC) of up to $441,000 for the acquisition of an easement on the Berry Tract on Hyco Lake in Caswell County.   On January 20, 2006 PLC emailed CWMTF that the easement had been acquired with funds from EEP in December 2005 and that the funds from CWMTF are no longer needed for protection of this tract.   Staff recommends that the Board accept PLC's request to withdraw this project.

2:20 pm             I-J. 2005D-016 – Blue Ridge Rural Land Trust's Thornton Farm on North Fork of Cove Creek in Watauga County – Tom Massie (Action Item)

On December 5, 2005 the Blue Ridge Rural Land Trust wrote CWMTF to request a donated easement grant of up to $25,000 to fund the transaction costs associated with the donation of a 70-acre conservation easement by Weldon and Barbara Thornton on the North Fork of Cove Creek in the Watauga River Basin in Watauga County. The property is valued at $280,000. BRRLT will hold the easement. CWMTF staff has reviewed BRRLT's request, believes it is consistent with the Board's policy, and recommends that the Board approve it up to $25,000.

If the Board approves BRRLT's request, $155,300 will remain available for donated easement grants in fiscal year 2005-2006. BRRLT has received 16 donated easement grants from CWMTF and has completed 12.

2:25 pm            I-K. 2005M-009 – The Conservation Fund's Henderson Wetlands Project – Leland Heath & Bill Holman (Action Item)

On December 10, 2005 The Conservation Fund (TCF) in partnership with Gateway Community Development Corporation, NC Community Development Initiative, and the Black Family Land Trust wrote CWMTF to request a mini-grant of up to $25,000 to fund the fee simple acquisition and stewardship of a wetland in the headwaters of Rock Spring and Sandy Creek in the Tar/Pamlico River Basin in the City of Henderson in Vance County. Gateway CDC owns 11 acres, including the wetland. The Black Family Land Trust will own and steward the wetland. TCF and its partners will implement environmental education programs at the site.

The Board referred this request to the Acquisition Committee at its January 9, 2006 meeting in Lake Lure.

CWMTF's Mini-Grant program provides funds for pre-acquisition costs. TCF and its partners have requested funds for acquisition of a one acre wetland not for pre-acquisition costs.

$23,400 remains for allocation under the mini-grant program in fiscal year 2005-2006. CWMTF staff recommends that the Board approve up to $23,400 as a mini-grant to TCF and its partners to acquire and steward the wetland in Henderson. CWMTF could work with Gateway CDC and other community development corporations in the future to protect and restore riparian buffers, wetlands and floodplains and provide environmental educational and recreational opportunities. Staff believes that it is more efficient for the Board to approve or not approve this request for a mini-grant to acquire a one-acre wetland than for TCF to apply to CWMTF for a grant in June.

If the Board approves TCF's request, $0 will remain available for mini-grants in fiscal year 2005-2006.

2:35 pm            I-L. 2005M-010 – Blue Ridge Rural Land Trust's YMCA-Herring Ridge Project – Bern Schumak (Action Item)

On January 9, 2006 the Blue Ridge Rural Land Trust requested up to $25,000 for a mini-grant to cover the pre-acquisition costs associated with the purchase of a conservation easement of the 400-acre YMCA Herring Ridge property in Wilkes County.   The property contains the headwaters of Big Warrior Creek in the Yadkin River Basin. Big Warrior Creek drains to W. Kerr Scott Reservoir, a drinking water supply.

CWMTF staff has reviewed BRRLT's request, believes it complies with the spirit Board's mini-grant policy, and supports it, but recommends that the Board postpone final action on BRRLT's request until its July 2006 meeting when it may allocate additional funds for mini-grants for fiscal year 2006-2007. (If the Board approves Agenda Item I-K (2005M-009) above, $0 will remain available for mini-grants in fiscal year 2005-2006.) BRRLT has received 4 mini-grants from CWMTF and has completed 3.

2:40 pm             I-M.   2005M-011 – Town of Troy's Montgomery Country Club Greenway and Land Application Project – Bern Schumak (Action Item)

On January 23, 2006 the Town of Troy requested a mini-grant of up to $25,000 to pay for a survey, legal description, and an option on the 157-acre Montgomery Country Club golf course property on Densons Creek in the Montgomery County in the Yadkin/Pee Dee River Basin.

On December 1, 2005 Troy applied for a grant of $1,455,000 from CWMTF to acquire the property (CWMTF #2006A-533) to land apply wastewater and reduce its discharge into Densons Creek, a high quality water. The Infrastructure/ Wastewater Committee may review this request at its March meeting.

CWMTF staff has reviewed Troy's request, believes it complies with the Board's mini-grant policy and supports the project. However Troy requested and the Board approved 2005M-003 in August 2005 to fund up to $25,000 for the pre-acquisition costs associated with acquisition of riparian buffers for Densons Creek Phase 6. As of January 31, 2006 Troy has not signed a contract with CWMTF for this project. CWMTF staff recommends that the Board postpone Troy's request until 2005M-003 is under contract or withdrawn. If the Board approves either

Agenda Item I-K (2005M-009) or Agenda Item I-L (2005M-010), $0 will remain available for mini-grants in fiscal year 2005-2006.  

2:45 pm             I-N. Farmland Preservation Easements – Leland Heath & Robin Hammond (Discussion and Potential Action Item)

CWMTF has provided funds to match federal farm and ranchland preservation program (FRPP) funds to acquire permanent conservation easements on farmland. FRPP generally provides about 50% of the funds; CWMTF, 25%, and the landowner, 25% in FRPP projects.

The Board has required that CWMTF/State of NC hold an easement when CWMTF provides funds. FRPP requires that only one easement be placed on the entire farm. Most land trusts want to hold the farmland conservation easement instead of CWMTF/State of NC. If only one easement is placed on the property, it will need to be divided into a (clean water) riparian zone and a farmland preservation zone.

In November 2004 the Board approved up to $635,000 to the Land Trust for Little Tennessee (CWMTF #2004B-020) to acquire conservation easements on three tracts in Macon County, including funds to match federal FRPP funds to purchase a conservation easement at State Line Dairy. LTLT requested and the Board approved a thirty-foot riparian buffer instead of a fifty-foot buffer for State Line Dairy. LTLT used its own funds to close in the spring of 2005 and placed an easement held by LTLT on the entire farm. FRPP required one easement and LTLT believed that the land owner would not agree to CWMTF/State easement on the entire farm (FRPP requires one easement.). CWMTF Contractor Lana Armstrong worked with LTLT and the US Natural Resources Conservation Service to draft an agreement whereby LTLT assigned the right to enforce the terms of the riparian buffer easement to CWMTF. CWMTF closed with LTLT in late 2005.

On January 4, 2006 the Tar River Land Conservancy wrote CWMTF to recommend some possible options for farmland preservation projects.

The issue of how many easements can be required in an FRPP transaction and who will hold them continue to be raised by LTLT, Tar River, other land trusts, and the US Natural Resources Conservation Service. CWMTF staff supports assignment of the enforcement rights for the riparian buffer to CWMTF from a land trust to match FRPP funds, comply with FRPP policies, and to minimize CWMTF involvement in managing active farmland and recommends that the Board approve this approach for future FRPP/CWMTF projects.  

3:00 pm             I-O.   2003A-023 – North Carolina Coastal Land Trust's Humphrey Tract – Nancy Guthrie & Bill Holman (Action Item)

In November 2003, the Board provided up to $366,000 to the NC Coastal Land Trust (NCCLT) for the purchase a permanent conservation easement on 303 acres of riparian buffers on Shaken Creek in Pender County in the Cape Fear River Basin. NCCLT matched CWMTF funds with a donation of a permanent conservation easement on 862 acres of uplands to the NCCLT (valued at $284,600).   On January 24, 2006, NCCLT wrote CWMTF requesting an additional $69,140 in grant funds to pay for increased property value, appraisal costs, and legal/closing costs.   NCCLT also notes that the land owner will bargain sale the 303 riparian acres at a value of $62,560 and that the value of the donated upland easement has increased to $1.192 million.   CWMTF staff recommends that the Board increase the budget by $7000 to cover the costs of a third appraisal and increased legal/closing costs but not approve NCCLT's request to increase its offer to the land owner. CWMTF staff recommends that NCCLT urge the landowner to accept its original offer. This grant expires on April 30, 2006.

3:05 pm            I-P.   2005A-013 – North Carolina Coastal Land Trust's Plum Creek Project – Nancy Guthrie (Action Item)

In August 2005, the Board provided up to $346,000 to the NC Coastal Land Trust (NCCLT) for the fee simple purchase of 675 floodplain acres in the Cape Fear River Basin in Pender County.   The matching funds are comprised of a NAWCA grant in the amount of $280,000.   CWMTF sent a draft contract to NCCLT on September 6, 2005. NCCLT requested several changes in the contract. CWMTF sent NCCLT a final contract on January 19, 2006. On January 25, 2005 NCCLT wrote CWMTF requesting an amendment to the budget so that $18,500 of the CWMTF grant be used to repay NCCLT for interest on a bridge loan for this project; the amount of the CWMTF grant would remain unchanged.   NAWCA funds have been increased by $21,500 to a total of $301,500.   NCCLT has an option to close on the property on March 31, 2006. CWMTF staff recommends that the Board approve NCCLT's request for a budget change. CWMTF staff urges all grantees to review and sign their contracts expeditiously.

3:10 pm             I-Q. 2006A-017 – The Nature Conservancy's Timber Tracts on Chowan River, 2006A-018 – The Nature Conservancy's Timber Tracts on Juniper Creek, 2006A-019 – The Nature Conservancy's Timber Tracts on Lower Roanoke River, 2006A-020 – The Nature Conservancy's Timber Tracts on the Upper Roanoke River, 2006A-021 – The Nature Conservancy's Timber Tracts on the Upper Tar River I, 2006A-022 – The Nature Conservancy's Timber Tracts on the Upper Tar River II, 2006A-027 – NC Division of Parks & Recreation's Timber Tracts on Little Fishing Creek (Medoc Mountain State Park), 2006A-031 – NC Wildlife Resources Commission's Timber Tracts on Juniper Creek (same as 2006A-018) – Chair Cragnolin (Discussion and Potential Action Item)

Last fall International Paper (IP) announced that it would sell most of its timberlands in the United States, including about 640,000 acres in North Carolina. IP is the largest private landowner in NC. The Nature Conservancy (TNC) contacted IP on behalf of state agencies, including the Wildlife Resources Commission, to acquire timberlands with conservation values.

On December 1, 2005 TNC requested $56,269,000 from CWMTF to acquire about 80,000 acres from an unnamed timber company. The seller, IP, insisted on a confidentiality agreement with TNC prior to entering into negotiations on specific tracts.   IP insisted on reviewing the applications to CWMTF prior to TNC submitting them. IP expressly deleted any reference to the company, maps identifying the property, and latitude and longitude. CWMTF staff advised the Board of receipt of these incomplete applications and included the incomplete applications in the 2006A project notebooks.

IP amended its confidentiality agreement with TNC on January 24, 2006. TNC immediately provided complete applications to CWMTF. TNC plans to borrow funds to close on the IP properties in May 2006.

Does the Board want to accept these complete applications from TNC after the December 1 deadline so that these projects can be reviewed during the 2006A spring cycle or does the Board want to not fund TNC's applications because they were incomplete? TNC could reapply on June 1.

3:25 pm             I-R. Review of 2006A Spring Cycle Acquisition Projects – Chair Cragnolin &CWMTF Staff (Action Items)

            Projects acted favorably upon by the Committee and the Board of Trustees will remain eligible for further review later this year.

Note that some applicants included funds for a stewardship endowment in their requested grant amount and some included only the annual monitoring costs.   Prior to making final funding recommendations , the Acquisition Committee, Stewardship Committee and staff will need to agree on how to calculate the stewardship endowment amounts and adjust the grant amounts accordingly for those applicants that included only annual monitoring costs.

5:45 pm             I-S.   Adjourn.

Infrastructure/Wastewater Committee
Clean Water Management Trust Fund
(Trustees Mosley, Chairman; Crumpler, Howard, Johnson, Rascoe, Wright)
Yogi Bear's Jellystone Park Club House
Tabor City, North Carolina
Sunday, February 12, 2006

AGENDA

Johnnie Mosley, Chairman, Presiding

6:00 pm             K-A. Call to Order – Chairman Mosley

•  Welcome – Chairman Mosley

•  Revisions, additions & adoption of the Agenda – Chairman Mosley

•  Executive Order Number One – Chairman Mosley

6:05 pm             K-B. High Unit Costs – Bill Holman (Discussion & Potential Action Item)

GS 159G-20(10) defines high unit costs as “one and one-half percent (1.5%) of median household income in an area that receives both water and sewer service” or “three-fourths of one percent (3/4%) of the median household income in an area that receives only water service or only sewer service.”

CWMTF has not funded most applications for wastewater projects that did not meet or exceed the high unit cost (HUC) threshold for many years.

SL 2005-454, Clarify Clean Water Funding (HB 1095) added new GS 113A-254(d) which prohibits CWMTF from providing wastewater grants to local governments that do not meet the HUC threshold.   SL 2005-454 also prohibits the Rural Center and Division of Water Quality from providing wastewater grants to local governments that do not meet HUC.

Thirty five local governments requested almost $74,000,000 from CWMTF for wastewater projects in December 2005. CWMTF staff has identified a number of applicants for wastewater grants that do not and will not meet the HUC threshold.

To save time and funds CWMTF staff recommends that these applications be reviewed by phone instead of by making a site visit. CWMTF staff will recommend that the Board not fund these applications pursuant to GS 113A-254(d) at its March 12-13, 2006 meeting. Staff is currently visiting and reviewing wastewater applicants in preparation for the March Board meeting.

Does the Board support this recommendation?

CWMTF staff has also identified a number of applicants that do not currently meet the HUC threshold but are willing to commit to raise their rates to HUC – after they get a grant from CWMTF. Staff is more supportive of these applications. Staff believes that it is reasonable to give local governments up to

three years to raise their rates to HUC. Staff needs guidance from the Board and the Attorney General on whether this approach is reasonable and whether it complies with the law.

Does the Board support this approach?

6:30 pm             K-C. Adjourn

Personnel Committee
Clean Water Management Trust Fund
(Trustees Wright, Chairman; Beane, Cragnolin, Howard, McLean, & Rascoe)
Clean Water Management Trust Fund
Yogi Bear's Jellystone Park Club House
Tabor City, North Carolina
Monday, February 13, 2006

AGENDA

Jerry Wright, Chairman, Presiding

7:45 am             C-A. Call to Order – Chairman Wright

•  Welcome – Chairman Wright

•  Executive Order Number One – Chairman Wright

•  Revisions, additions & adoption of the Agenda – Chairman Wright

7:50 am             C-B. PowerPoint Presentations from Office of State Personnel – Bill Holman (Information Item)

8:00 am             C-C. Update on Potential Pay Increases – Bill Holman & Francine Durso (Discussion Item)

8:15 am             C-D. Adjourn.

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