Annual Retreat Agenda

Restoration/Stormwater Committee Agenda

Stewardship Committee Agenda

Personnel Committee Agenda

 

 

 

 

Board of Trustees

Clean Water Management Trust Fund

Lake Lure Inn

2771 Memorial Highway (US 64/74A)

Lake Lure, North Carolina

Monday, January 9, 2006

 

AGENDA

 

Executive Order Number One mandates that the Chair inquire as to whether any Trustee knows of any conflict or the appearance of conflict of interest with respect to matters on the agenda. If any Trustee knows of a conflict or the appearance of a conflict of interest, please so state at this time.

 

Robert D. Howard, Chairman, Presiding

 

8:30 am         A. Call to Order – Chairman Howard

 

1)    Welcome to Rutherford County – John Condrey, Manager, Rutherford County

2)    Welcome to Lake Lure – The Honorable Jim Proctor, Mayor

3)    Roll Call – Gina Weaver

4)    Executive Order Number One – Chairman Howard

5)    Revisions, additions and adoption of the Agenda – Chairman Howard (Action Item)

6)    Please put cell phones on vibrate or off – Chairman Howard

7)    Review and approval of the transcript of the November 14, 2005 meeting of the Board of Trustees in Wilmington – Chairman Howard (Action Item)

8)    Appointment of Trustees to CWMTF Committees for 2006 – Chairman Howard

9)    Appointment of temporary Contract Committee to review CWMTF contract templates and work with staff to improve contracting processes – Chairman Howard 

10) Report of Awards Committee – Trustees Wright, McMillan & Weston

11) "One North Carolina Naturally" on CWMTF letterhead – Chairman Howard

12) November 14, 2005 RiverLink supplement in Asheville Citizen Times – Trustee Cragnolin

13) November 21, 2005 Valle Crucis Event (CWMTF #2003A-015) – Trustee Beane

14) November 30, 2005 Johns River Meeting with Crescent Resources – Trustee Beane

15) December 12, 2005 meeting with Chairs of Natural Heritage and Parks & Recreation Trust Funds – Chairman Howard

16) March 2-3, 2006 Strategic Visioning for Conservation in NC – Chairman Howard

17) Recognize CWMTF Advisory Committee Members – Chairman Howard

 

8:45 am         B. Public Comments (Three Minutes Per Person) – Chairman Howard

 

1)    Chuck Place, Manager, Town of Lake Lure

2)    Barbara Meliski, Chair, and Clint Calhoun, Watershed Coordinator, Upper Broad River Watershed Coalition

3)    Susie Hamrick Jones, Executive Director, Foothills Conservancy of NC

4)    Kieran Roe, Executive Director, Carolina Mountain Land Conservancy

5)    Carl Silverstein, Executive Director, Southern Appalachian Highlands Conservancy

6)    Judy Francis, Planning Director, Henderson County, on behalf of the Mills River Watershed Protection Project

 

9:10 am         C. Personnel Committee Report – Chairman Smith

 

1)    The Personnel Committee conducted its annual performance review of the Executive Director on December 7, 2005.

2)    2005 Accomplishments of CWMTF

3)    Potential Goals for CWMTF in 2006

 

9:25 am         D. Executive Directors' Report – Bill Holman (Information Items)

 

1)    Nov. & Dec. 2005 Cash Flow and FY 2005-2006 Projected Budget – Francine Durso

2)    Status of Recently Approved Grants – Francine Durso

3)    Communications Report – Lisa Schell

4)    December 15, 2005 CREP Advisory Committee Meeting – Leland Heath

5)    November 11, 2005 Trust for Public Land Summary of 2005 conservation bond referenda – Bill Holman

6)    November 2005 Land Trust Alliance Summary of US Senate Tax Incentive Legislation – Bill Holman

7)    November 2005 Our State magazine "Ready to Rumble" on Rumbling Bald – Bill Holman

8)    November 2005 Our State magazine "Time-Tested Travel" on heritage tourism – Bill Holman

9)    November 25, 2005 Charlotte Observer "Storm Over Rules"– Bill Holman

10) November 30, 2005 Wall Street Journal "Sierra Club Could Gain AlliesÉ"– Bill Holman

11) November 30, 2005 Thank You Letter from Philip Francis, Superintendent of the Blue Ridge Parkway  – Bill Holman

12) December 2005 Business North Carolina profile on Mark Singleton and American Whitewater's new office in Cullowhee – Bill Holman

13) December 11, 2005 Charlotte Observer "2005 State of the Environment Report"– Bill Holman

14) Winter 2005 Catawba College Center for the Environment Study on the benefits of urban forests and land conservation to stormwater management – Bill Holman

15) Mountain Land Values – Tom Massie

16) December 7, 2005 Wall Street Journal "Hurricane Warning: On Topsail Island Storms Fuel Battle Over Right To Build"– Bill Holman

17) CWMTF Investments in Rutherford County – Tom Massie 

 

9:40 am         E. 2005B Cycle Priority List – Bill Holman & Francine Durso (Action Item)

 

                        The Board approved 75 grants and 5 donated and mini-grants at its November 14, 2005 meeting in Wilmington. The Board asked staff to consider time sensitivity when listing projects in the order that staff will draft contracts. CWMTF staff recommends that the Board adopt the 2005B Fall Cycle Priority List provided in the Board packet.

 

9:50 am         F. Attorney General's Report – Frank Crawley

 

10:00 am      G. Break

 

10:10 am      H. Action on Retreat Issues – Chairman Howard (Potential Action Items) (See Sunday, January 8, 2006 Board of Trustees Retreat Agenda.)

 

11:00 am      I. Restoration/Stormwater Committee Report – Chairman Beane (See Sunday, January 8, 2006 Restoration/Stormwater Committee Agenda) (Action Item)

 

11:15 am      J. Stewardship Committee Report – Chairman Baddour (See Sunday, January 8, 2006 Stewardship Committee Agenda)

 

11:30 am      K. Infrastructure/Wastewater Committee Issues – Chairman Mosley & CWMTF Staff (Action Items)

 

                        1) 2002B-603 – Town of Dover Collection System Construction – Leland Heath (Information Item)

 
 

 

In July 2003, the Board approved a grant of up to $333,000 to serve as matching funds for a NC Rural Center Grant of $3,000,000 to eliminate wastewater discharges from 279 septic tanks and/or straight piping disposal systems by construction of a new sewage collection system and pumping the wastewater to the City of Kinston's WWTP.  On October 12, 2005 the Town wrote the NC Rural Center to notify them of cost overruns and the need to potentially reduce the planned service area in order to eliminate some of the construction and to reduce project costs.  On November 15, 2005, the NC Rural Center responded; a copy of this letter is provided in the packet.  To date, Dover has not spent any CWMTF funds.  The Town's engineering consultant is McDavid Associates.

 

2) 2000B-505 – Chatham County 3M Wastewater Reuse Project – Nancy Guthrie (Action Item)

 

 
 

In November 2001, the Board approved a grant of up to $1,000,000 to Chatham County for a wastewater reuse project which includes upgrading the Town of Pittsboro's 0.75 MGD wastewater treatment plant to produce reuse-quality effluent and initially pumping approximately 0.25 MGD to a new 3M manufacturing facility in Chatham County.  In 2003, the County requested an additional $250,000 in order to reduce the cost/gallon charged to 3M for the reuse water, which the Board did not approve at its October 2003 meeting. 

 

On Nov. 22, 2005 the County wrote CWMTF requesting an additional $500,000 in grant funds due to cost overruns revealed when the project was bid, and requesting an extension of the contract until Aug. 31, 2007.  The County, Town and 3M will provide an additional $1,038,000 in matching funds.  As a condition of the contract the County and the Town are to make every effort to secure contractual arrangements with customers to use up to 0.75 MGD of reclaimed wastewater, and the Town has adopted an ordinance that requires new development to extend reuse lines for grey water use.  The contractor has agreed to hold bids until after this Board meeting.  CWMTF staff recommends that the Board approve the additional $500,000 in funds with the stipulation that the funds may only be used toward the cost overrun related to the Town's WWTP upgrade and stipulating that the additional funds will not be encumbered until CWMTF receives its FY 2006-07 budget.  Other matching funds include an EPA grant, CDBG grant, DWQ Construction Grants & Loans loan, and a USDA REDLG loan.  The County's engineering consultant is Hobbs, Upchurch & Associates.

 

3) 2005A-604 – Swain County Tuckasegee River Septic Tank Elimination Project – Tom Massie (Action Item)

 

 
 

In August 2005, the Board approved a grant of up to $50,000 to Swain County to hook up 30 failing septic tanks to the Bryson City WWTP, using CWMTF funds for the construction of sewerlines, manholes, and sewer service connections, and for construction administration/ observation.  Matching funds of $203,550 were provided by a supplemental grant from the NC Rural Center; the County anticipated using some of the Rural Center funds for design.  On Dec. 12, 2005, the County wrote CWMTF requesting that they be allowed to use grant funds for design because the Rural Center supplemental funds cannot be used for design.  CWMTF staff recommends that the Board allow the County to use up to $50,000 in grant funds for the design of the project.

 

12:00 pm      L. Working Lunch

 

 

 

12:20 pm      M. Acquisition Committee Issues – Chair Cragnolin & CWMTF Staff (Action Items)

 

1) 2005B-047 – Tar River Land Conservancy's Averett Farm Project – Leland Heath (Action Item)

 

On December 8, 2005 the Tar River Land Conservancy wrote CWMTF to request withdrawal of its Averitt Farm project on the Tar River in Granville County. CWMTF staff recommends that the Board accept TRLC's request.

 

2) 2005D-014 – Land Trust for Central NC's Kepley tract on Reedy Creek in Davidson County – Bern Schumak (Action Item)

 

On November 30, 2005 the Land Trust for Central NC wrote CWMTF to request a donated easement grant of $17,065 to fund some of the transaction costs associated with the donation of an 80-acre conservation easement with approximately 1300 linear feet of riparian land on Reedy Creek in the Yadkin/Pee Dee River Basin in Davidson County. Mr. Billy Joe Kepley owns the property. The property is valued at $560,000. LTCNC will hold the easement. CWMTF staff has reviewed LTCNC's request, believes that it is consistent with the Board's policy, and recommends that the Board approve it up to $17,065.

 

If the Board approves LTCNC's request, $205,335 will remain available for donated easement grants in fiscal year 2005-2006. LTCNC has received no previous donated easement grants from CWMTF.

 

3)    2005D-015 – Blue Ridge Rural Land Trust's Tate Farm Phase II on Ripshin Creek in Ashe County – Bern Schumak (Action Item)

 

 
 

On December 4, 2005 Blue Ridge Rural Land Trust wrote CWMTF to request a donated easement grant of up to $25,000 to fund the transaction and stewardship costs associated with the donation of a 200-acre conservation easement by Michael and Virginia Tate on Ripshin Creek in the New River Basin in Ashe County. The property is valued at $540,000. BRRLT will hold the easement. CWMTF staff plans to visit the site soon and will make a recommendation to the Board at the January 9, 2006 meeting.

 

If the Board approves BRRLT's request (and LTCNC's 2005D-014), $180,335 will remain available for donated easement grants in fiscal year 2005-2006.  BRRLT has received 15 donated easement grants from CWMTF and has completed 9. 

4)    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.

 

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.

 

$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.

 

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

 

5)    2005A-012 – NC Coastal Land Trust's Cherry Point/Piney Island Protection Project Issue One – Damon Tatem (Action Item)

 

 
 

On October 4, 2005 NCCLT wrote CWMTF to request that a 42.28-acre property owned by Mr. William P. Boulia in the air installation compatible use zone (AICUZ) of Marine Corps Air Station Cherry Point be added to the tracts eligible for funding from $3,000,000 grant approved by the Board in August 2005 (CWMTF Project #2005A-012). CWMTF staff recommended that the Board approve the use of CWMTF funds to help acquire the Boulia tract for a future stormwater project for the Town of Havelock with the condition that CWMTF would pay up to 50% of the fair market value of the property and transaction costs.

 

The property is valued at $450,000. The Navy has offered to pay $225,000 and some transaction costs. NCCLT has requested up to $255,700 from CWMTF to pay half of the purchase price and the remainder of the transaction costs. The Town of Havelock will own the property in fee subject to a CWMTF conservation easement.

 

At its November 13-14, 2005 meeting the Board requested additional information about the wetlands on the property and tabled the request.  NCCLT estimates that 19.53 acres or 46% of the tract are wetlands.

 

CWMTF staff continues to recommend use of CWMTF funds to acquire the tract because it will be used for stormwater treatment in the future and it will help protect Cherry Point from encroachment. The US Environmental Protection Agency will not permit the use of existing wetlands (waters of the United States) to treat stormwater pollution.

 

6)    2005A-012 – NC Coastal Land Trust's Cherry Point/Piney Island  Protection Project Issue Two – Damon Tatem (Action Item)

 
 

 

The Board approved up to $3,000,000 in special indebtedness to the NC Coastal Land Trust (NCCLT) in August 2005 to acquire a number of tracts, including the 1978-acre Neuse River/Bay River Investments tract, to protect water quality and to protect Marine Corps Air Station Cherry Point and its Piney Island bombing range from encroachment by incompatible development. NCCLT has an option on the property that expires on March 31, 2006.

 

On December 15, 2005 NCCLT wrote CWMTF to advise CWMTF that the NC Wildlife Resources Commission decided not to accept the Neuse River/Bay River Investments tract into its Game Lands program and consequently decided not to provide a federal coastal wetlands protection grant as matching funds at its December 2005 meeting. NCCLT plans to ask the WRC to reconsider its decision.

 

NCCLT has requested that CWMTF amend the budget for 2005A-012 to remove the federal coastal wetlands grant and that CWMTF provide up to $2,581,206 for acquisition of the Neuse River/Bay River Investments tract. CWMTF staff recommends that the Board approve NCCLT's request.

 

1:20 pm         N. Discussion

 

1:30 pm         O. Adjourn

 

 

CWMTF Announcements

 

The Rutherford Soil & Water Conservation District will lead a tour of agricultural best management practices (CWMTF #2001A-409 & #2005B-409) on Friday, January 6, 2006 starting at 9:00 am at the District office at 121 Laurel Drive in Rutherfordton.

 

The Nature Conservancy, Carolina Mountain Lands Conservancy, and State Parks will lead a hike to Worlds Edge (CWMTF #2005B-005) on Saturday, January 7, 2006 starting at 1:00 pm at the Lake Lure Inn.

 

The Board of Trustees of the Clean Water Management Trust Fund will meet separately from CWMTF staff from 11:00 am - 1:00 pm on Sunday, January 8, 2006 at the Lake Lure Inn. CWMTF staff will also meet from 11:00 am – 1:00 pm on Sunday, January 8 at the Lake Lure Inn. Lunch will be provided.

 

The Board of Trustees of CWMTF will hold its annual retreat starting on Sunday, January 8, 2006 at 1:30 pm at the Lake Lure Inn.

 

The Restoration/Stormwater Committee will meet on Sunday, January 8 at 5:20 pm at the Lake Lure Inn.

 

The Stewardship Committee will meet on Sunday, January 8 at 5:55 pm at the Lake Lure Inn.

 

The Personnel Committee will meet on Monday, January 9 at 7:45 am at the Lake Lure Inn.

 

CWMTF staff will meet on Wednesday, January 11, 2006 at 10:00 am in Raleigh.

 

CWMTF will make its annual report to the legislature's Environmental Review Commission on January 24, 2006.

 

The Board of Trustees of CWMTF will meet February 12-13, 2006 at Yogi Bear's Jellystone Park in Tabor City, March 12-13 in Davidson County, April 9-10 in Haywood County, and May 7-8 in Raleigh.

 

The next deadline for applications for grants from CWMTF is June 1, 2006 (2006B Fall Cycle).

 

Contact www.cwmtf.net for more information.


Announcements

 

Contact www.thehickorynutgorge.com or 828-625-2725; www.chimneyrockpark.com or 800-277-9611; www.lakelureinn.com or 888-434-4970; www.ci.lake-lure.nc.us; www.rutherfordcountync.gov; rutherfordtourism.com or 800-849-5998 for more information about the Hickory Nut Gorge, Chimney Rock, Lake Lure, and the Rutherford County area.

 

National Committee for New River has named George Santucci, as its new Executive Director. Santucci had been 4H Program Associate at Ashe County Cooperative Extension. Former director Jeffrey Scott is creating a conservation real estate brokerage.

 

Dr. Richard P. Maas of UNC-Asheville died on December 12, 2005 of a blood disorder. Dr. Maas was founder and co-director of UNC-Asheville's Environmental Quality Institute and very active on clean water issues.

 

The NC Department of Environment & Natural Resources has hired Jimmy Johnson of Washington to coordinate implementation of the coastal habitat protection plan (CHPP) effective January 3, 2006. Johnson is former Chairman of the NC Marine Fisheries Commission.

 

The NC Association of Soil & Water Conservation Districts is meeting at the Sheraton Imperial in Research Triangle Park on January 8-10, 2006. Contact www.ncaswcd.org.

 

The NC Environmental Management Commission is holding public hearings on rules governing water conservation and water reuse during drought and water emergency situations: January 19 at 6:00 pm at Davidson County Farm Bureau in Lexington, January 24 at 5:00 pm at Wayne Community College in Goldsboro, and January 31 at 6 pm at Asheville Public Works Facility. Contact www.ncwater.org/watersupplyplanning/water conservation/hb1215/index.php or Linwood Peele at 919-715-5455. 

The UNC Environmental Finance Center at the UNC School of Government at the University of North Carolina at Chapel Hill is presenting a 2-day seminar on Capital Finance Strategies for Water and Wastewater Utilities, on January 26 & 27, 2005.  Contact http://www.efc.unc.edu/waterleadership/index.htm or 919-966-4157 for more information.

The next deadline for applications for local government grants from the Parks & Recreation Trust Fund is January 31, 2006. The Board of Trustees of the Parks & Recreation Authority will meet on March 17-18 at Hickory Nut Gorge State Park/Lake Lure and May 17 at Umstead State Park. The President and US Congress rescinded appropriations made earlier to the national Land and Water Conservation Fund (LWCF) for state and local governments.  Therefore no LWCF funds are available for state or local government projects in 2006. 

 

The NC Rural Economic Development Center will provide an update on its Water 2030 project on February 23, 2006 at Exploris in Raleigh. Contact www.ncruralcenter.org or Ashley Crane at 919-250-4314 ext 266 or acrane@ncruralcenter.org.

 

The next deadline for applications for grants from the Natural Heritage Trust Fund is March 1, 2006. The Natural Heritage Trust Fund Board of Trustees will meet on April 19-20, 2006.

 

The American Council of Engineering Companies of North Carolina (ACEC/NC) and the Professional Engineers of North Carolina (PENC) 2006 Environmental Conference will be held at NC State University's McKimmon Center in Raleigh on March 1, 2006 beginning at 8 am.  The subject is "Sustainability: From Concept to Action." The conference will kick off with a keynote address that presents a broad view of sustainability followed by case studies of "sustainability in action" here in North Carolina.  The conference will close with several speakers' look into sustainability issues in the future in such areas as energy and economics. Registration forms will be available in early January 2006 on the ACEC/NC website and the PENC website.  CWMTF is a partner in helping sponsor this event.

 

The 2006 Carolina Environmental Program Environmental Symposium: Safe Drinking Water: Where Science Meets Policy will be held March 16-17, 2006 at Friday Center in Chapel Hill. Contact www.cep.unc.edu.

 

University of North Carolina at Wilmington, National Oceanic & Atmospheric Administration (NOAA), CWMTF and others will sponsor at coastal policy conference on March 19-21, 2006 at the Holiday Inn Sunspree in Wrightsville Beach.

 

County Commissioners Lobby Day at the NC General Assembly is May 17, 2006, Town Hall Day is June 7, and Land and Water Conservation Lobby Day is June 14.

 

The Pamlico-Tar River Foundation celebrates its 25th anniversary in 2006.

 

 


Board of Trustees

Clean Water Management Trust Fund

Annual Retreat

Lake Lure Inn

2771 Memorial Highway (US 64/74A)

Sunday, January 8, 2006

 

AGENDA

 

Robert D. Howard, Chairman, Presiding

Doc Klein, Facilitating

 

1:30 pm         H-A. Call to Order – Chairman Howard

 

1)    Welcome – Chairman Howard

2)    Executive Order Number One – Chairman Howard

3)    Revisions and additions to the Agenda – Chairman Howard

4)    Overview of Retreat – Doc Klein

 

1:40 pm         H-B. Review of Executive Order Number One and Ethics Rules – Frank Crawley (Information Item)

 

1:50 pm         H-C. CWMTF Trends – Bill Holman & Francine Durso (Information Item)

 

                        The number of applications to CWMTF, the number of projects approved by CWMTF, the number of active CWMTF projects under contract, appropriations to CWMTF, and CWMTF's cash balance have all increased significantly in recent years.

 

2:00 pm         H-D. 2006A Spring Cycle Overview – Tom Jones & Bill Holman (Discussion Item)

 

                        Local governments, non-profit conservation organizations, and state agencies requested over $212,000,000 for 134 projects on December 1, 2005. The Board deferred 16 projects requesting over $31,680,000 in the fall of 2005.

 

                        It will be difficult for CWMTF staff and the Board to review all the applications at the February, March and April meetings. Does the Board want to continue to meet all day on Sundays? Does the Board want to provide time for committee work on Mondays and have longer Board meetings on Mondays? Does the Board want to use the May meeting for project review and delay final decisions until July? Does the Board want to receive full presentations on low scoring projects? Does the Board have other ideas to manage the review of projects? Note staff & the Board also have to review numerous requests for scope and budget changes for existing projects and mini-grant requests each month.

 

2:20 pm         H-E. CWMTF Project Review Criteria – Tom Jones

 

The Board adopted its current criteria in February, 2003. The Board, via its Long-Range Planning Committee and its Criteria Committee, decided to target drinking water supply watersheds, shellfishing or trout waters, Albemarle/Pamlico watersheds, headwater streams, impaired urban streams on the US Environmental Protection Agency's 303(d) list, elimination of ocean outfalls of stormwater, wastewater regionalization, and protection of military bases from encroachment by incompatible development in 2003.

 

The 2005 General Assembly enacted and Governor Easley signed SL 2005-454 (HB 1095), Clarify Clean Water Funding.  GS 159G-23 establishes common criteria for infrastructure and stormwater projects for state funding agencies.

 

CWMTF's Criteria Committee will review SL 2005-454 and CWMTF's existing criteria and may recommend changes to the Board in the spring of 2006. The Criteria Committee welcomes discussion and comments from the Board on CWMTF's existing criteria and SL 2005-454's criteria. Does the Board want to further focus its targeting? For example should the large Albemarle/Pamlico watershed be replaced with the smaller Coastal Habitat Protection Plan watershed area? Should more emphasis be placed on implementing riparian corridor conservation plans? What efforts should local governments make to protect their drinking water supplies before CWMTF invests state funds? 

 

2:50 pm         H-F. Appraisal Policy – Robin Hammond (Potential Action Item)

 

                        The Board adopted an appraisal policy in September 2001 and amended it in February and September 2003. The policy provided flexibility to the City of Raleigh and other local governments who were acquiring conservation easements and land for greenways along the Neuse River and other streams.

 

                        CWMTF staff recommends that the Board adopt a new appraisal policy that clarifies that CWMTF will not reimburse grantees for acquisition of conservation easements or land in fee when the price is in excess of the fair market value as determined by the State Property Office. CWMTF further recommends that the Board retain the use of ad valorem assessed valuation when the total price does not exceed $100,000 in lieu of an independent appraisal.

 

                        Tommy Cline of the State Property Office will be available to discuss his concerns with the Board.

 

3:05 pm         H-G. Break

 

 

 

3:15 pm         H-H. Consistent Policy on Reimbursement of Administrative Costs for Managing CWMTF Projects – Francine Durso (Potential Action Item)

 

Some applicants include administrative costs in their grant applications and some do not (these are often listed as overhead, indirect or facilitation costs).  Of the applicants that include these costs, they are not calculated in any uniform way.  The Board may wish to consider that the inclusion of administrative costs in grant agreements be consistent – either funded or not funded – and calculated in the same way if funded.  CWMTF staff suggests that the Board consider the following options:

 

 
 

A.  For land acquisition projects:

   Option 1:  Follow the State Property Office guidelines which calculate 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).  For example, if the purchase price of a tract is $2 million, the land trust would be allowed only the cap of $30,000 in administrative costs.  CWMTF staff has concerns that this method may result in overly expensive administrative costs.  

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

For the 2006A cycle, CWMTF staff will prepare comparative information showing the amounts that might be approved under the 3-2-1 option and the standard percentage of direct costs option, for consideration by the Acquisition Committee during project reviews.

Under either option, the administrative costs would 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.

 
 

B.  For restoration/stormwater/wastewater/infrastructure projects:

 
 

Allow 5% of the project costs up to a cap of $20,000 AND cap the total amount of administrative funds paid by CWMTF to the same recipient, across all grants held by the recipient, at $50,000 per year.

 

3:30 pm         H-I. Construction Cost Overruns, Managing Construction Projects and Costs – Francine Durso (Discussion Item)

 

                        CWMTF currently reviews cost overruns associated with construction projects on a case by case basis. Does CWMTF need to adopt guidelines to ensure consistent review of requests to pay cost overruns? If so, what information would the Board like before it considers requests to pay cost overruns?

 

                        CWMTF does not currently manage restoration, stormwater, or infrastructure/wastewater projects as they are implemented by grantees. The grantees proceed at their own paces.  CWMTF receives numerous requests for project scope and budget changes as the projects are planned, designed and bid.  Should CWMTF be more involved in management of construction projects?  How should CWMTF handle the increasing number of requests for project scope and budget changes?

 

3:50 pm         H-J. Payment of Transaction Costs to State Agencies – Bill Holman (Discussion & Potential Action Item)

 

                        CWMTF typically pays a substantial portion of the transaction costs, including appraisals, surveys, legal descriptions, phase 1 environmental site assessments, baseline documentation reports, title insurance, legal fees, and recording fees, associated with acquisition of conservation easements and land in fee for non-profit conservation organizations and local governments. Transaction costs range from $12,000 to $75,000 depending upon the size of the property.

 

                        CWMTF staff has recommended and the Board has approved requiring state agency applicants, including the Wildlife Resources Commission and State Parks, to pay their transaction costs with their own funds in order to increase their match and to increase the total amount of funds available to apply to clean water projects since 2004.

 

                        State agencies prefer that CWMTF pay their transaction costs. They note that CWMTF does not provide funds for perpetual stewardship or management of state owned conservation lands.

 

                        Should CWMTF pay transaction costs for state agency acquisition projects?

 

4:20 pm         H-K. Land for Tomorrow Proposal (Information and Potential Action Item) – Chairman Howard

 

                        Kate Dixon of the Land for Tomorrow Coalition made a presentation to the Board in March 2005 in Raleigh on "Saving the Goodliest Land: Investing in North Carolina's Land, Water, History, and Future."

 

                        Land for Tomorrow proposes that the State of North Carolina invest an additional $200,000,000 per year for five years:

1)    to protect rivers, wetlands, floodplains & coastal waters;

2)    to protect working farmland;

3)    to protect working forests;

4)    to establish local parks and trails;

5)    to protect and increase urban forests;

6)    to expand state parks and trails;

7)    to expand state game lands and state natural areas;

8)    to protect and restore historic sites; and

9)    to protect scenic highways

 

Of the $200,000,000 of additional funding per year Land for Tomorrow specifically proposes that $54,500,000 per year be allocated to CWMTF (CWMTF's appropriation would increase from $100,000,000 to $154,500,000 per year). Land for Tomorrow also proposes expanding CWMTF's mission to include funding some clean air projects such as protection and expansion of urban forests and trails.

 

The 2006 General Assembly and the Governor will decide actual allocations and purposes of funds.

 

Does the Board want to endorse Land for Tomorrow's proposal? Support it with changes? Oppose it? 

 

4:50 pm         H-L. Other Retreat Issues

 

CWMTF Trustees and/or staff requested that the following issues be discussed at the retreat. Time does not allow a thorough discussion of each issue. Some can be considered by CWMTF Committees in 2006.

 

1)    What process should land trusts follow before borrowing funds to acquire property and then applying to CWMTF or other conservation trust funds for a grant to pay off the loan?

2)    At its November 2005 meeting the Board voted to not fund a number of projects that had remained eligible for funding prior to the meeting. The applicants had to reapply to CWMTF on December 1, 2005 for consideration in the 2006A Spring Cycle. Trustee Beane questioned this decision.  Chairman Howard stated that Board needs to clean the slate each cycle to allow time to hear presentations on all new applications.  This topic should be discussed at the retreat. 

3)    Should CWMTF develop a riparian corridor conservation planning and implementation grant program for local governments for local greenway projects similar to the CWMTF/CTNC partnership with land trusts?

4)    Should CWMTF not fund greenway projects when contiguous tracts can not be obtained from willing sellers?

5)    Should CWMTF develop a wastewater planning grant program similar to the stormwater planning grant program?

6)    What are the benefits to residual property from conservation land acquisition? How should they be considered?

7)    What is the impact of state conservation trust funds on the real estate market in NC?

8)    How should CWMTF and/or the State respond to major land sales by International Paper, Duke Energy/Crescent Resources, Alcoa, Progress Energy, and others?

9)    Should CWMTF change its policy of paying 50% of the fair market value of watersheds owned by local governments and others?

10) GS 113A-253(5) prohibits use of CWMTF funds "for the purpose of expanding the (wastewater collection & treatment) system to accommodate future anticipated growth of a communityÉ" How much flexibility does the statute provide?

11) What issues should CWMTF advocate for in the 2006 General Assembly?

12) Should CWMTF increase its role in flood hazard mitigation acquisition?

13) How could coordination, communication, and cooperation between CWMTF and PARTF & NHTF be improved?

14) How could coordination, communication, and cooperation between CWMTF and EEP be improved?

15) How could coordination, communication, and cooperation between CWMTF and the Agricultural Development and Farmland Preservation Trust Fund be improved?

16) Should CWMTF establish cost/benefit thresholds for projects such as cost per acre for acquisition, cost per foot for restoration, cost per residence served or cost per gallon treated for wastewater?  For example the Board reduced the budget of a wastewater project in the 2005B Fall Cycle so that the cost per residence would not exceed $21,956.