9:00-9:15 Convene Full Council Comments/additions to the agenda Approve 11/21/11 meeting minutes Council introductions and updates

Transcription

1 Clean Water Council Meeting Agenda Monday, December 12, :00 a.m. 2:30 p.m. MPCA Board Room 520 Lafayette Road North, St. Paul 9:00-9:15 Convene Full Council Comments/additions to the agenda Approve 11/21/11 meeting minutes Council introductions and updates 9:15-9:30 Steering Committee Report Information item 9:30-11:00 Clean Water Fund audit findings Information item (Program and Fiscal reports) James Nobles, Judy Randall & Cecile Ferkul Office of Legislative Auditor 11:00-11:15 Break 11:15-12:00 Check-in on Council issues: Decision / information items Motion by Steve Pedersen from 11/21 meeting: Stream standards must be maintained without deviation other than human health reasons. Team: Louis Smith, Sandy Rummel, Dave Bennett, Deb Swackhamer SSTS ad hoc team: Chair, Victoria Reinhardt BOC committee: Vice Chair, Marilyn Bernhardson 12:00-12:30 Lunch 12:30-2:15 Groundwater management: Information item Quantity, quality and connectivity issues Lanya Ross (Met Council), Andrew Streitz (MPCA) and Jason Moeckel (DNR) 2:15-2:30 January meeting agenda / adjournment 2:30~3:30 Council Steering Team Next Meeting: January 23, 2012 Location: MPCA Board Room

2 Clean Water Council Meeting Minutes Monday, December 12, :00 a.m. 2:30 p.m. MPCA Lower Level Board Rooms 520 Lafayette Road North, St. Paul Council members present: Marilyn Bernhardson, Pam Blixt, Linda Bruemmer, Warren Formo, Keith Hanson, John Harren, Scott Hoese, Frank Jewell, Dave Leuthe, Gene Merriam, Gaylen Reetz, Todd Renville, Sandy Rummel, Louis Smith, Paul Torkelson, Matthew Wohlman, Steve Woods. Absent: Dave Bennett, Kent Eken, Bradley Kalk, Mark Knoff, Mike McKay, Gary Pedersen, Steve Pedersen, John Pederson, Victoria Reinhardt, Dan Sparks, Deb Swackhamer. 1. Convene Full Council o Comments/additions to the agenda o Approve 11/21/11 meeting minutes o Council introductions and updates Council convenes. Chair Hanson opened the meeting and asked for comments on the agenda and the November meeting minutes. There were none. Motion to accept the December agenda and the November meeting minutes passed. Council member introductions: Keith Hanson and Marilyn Bernhardson gave a presentation at the recent MASWCD state convention. Representative Torkelson received the MASWCD Legislator of the Year award. Steve Woods was also at the MASWCD, and at the Association of Watershed Districts training of new board members on their requirements. Louis Smith also helped with the training. Gaylen Reetz said the 2012 draft TMDL list will be available soon. MPCA submits the list every 2 years to EPA. This one will be submitted to EPA in April Public informational meetings begin soon. The first one will be at the MPCA Rochester Regional office on December 21, The public comment period will be open from January 23, 2012 to February 27, 2012 with a notice in the State Register. MPCA has completed assessments of 21 percent of the watersheds in the state. Monitoring is completed or under way on an additional 22 percent of watersheds. The state is on track to monitor and assess all of the state s watersheds on a 10-year schedule. There are 511 new listings. 44% of the new listings are for impaired biological communities and 23% for bacterial impairments. New this year is one impairment listing for chlorpyrifos (also known as Lorsban or Dursban) a broad-spectrum insecticide used on food and non-food crops, with greenhouse and turf applications. The new listing is for Seven Mile Creek in the Minnesota River Basin, which was included in one of the Council s tours. Linda Bruemmer attended the Association of Minnesota Counties (AMC) annual meeting. MDH had a booth describing what they are doing for drinking water. They handed out free drinking water. It was very successful. Page 1 of 10

3 Matt Wohlman was at the Farm Bureau Convention/Minnesota Farmers Union, which was well attended. MDA issued a Request for Proposals (RFP) for the Clean Water Research Program for projects related to ways agricultural practices contribute to restoring impaired waters and assist with the development of Total Maximum Daily Load (TMDL) plans. Chair Hanson Victoria Reinhardt received the President s Award at AMC for her efforts. The dedicated fund working group asked Keith and Marilyn to participate on their policy panel the day before the DNR Roundtable. Audience introductions. 2. Clean Water Fund audit findings: Program and Fiscal reports James Nobles, Judy Randall & Cecile Ferkul, Office of Legislative Auditor James Nobles compared the Legislative auditor s office to GAO at the federal level. Watchdog for the State of Minnesota. Created by the Legislature. We also have a state auditor who audits local units of government. OLA audits the state government. The reports they issue come from their office not through the Legislature, not through the Commission. The Legislature asked them to audit the legacy amendment, and to issue a financial report. Responsibility to audit all of the public money in Minnesota. They looked at the three funds related to the outdoors (Outdoor Heritage Fund, Clean Water Fund and Parks and Trails Fund). Judy Randall thanks to all who helped with this. Legacy amendment overview. $6.5-7 billion will be raised over 25 years. Judy went over the four funds. Flow of Legacy funding page 43 of OLA s The Legacy Amendment report. There are two funds with advisory groups; Outdoor Heritage and Clean Water funds. The groups are set up differently, function differently. There are differences among the four funds. Should they all have the same structure? Really, no reason they should all be the same. Differences reflect history, purposes, and constituencies. Four ongoing concerns (slide). Land purchases are of concern for the OHF; can the state maintain these lands. Producing measureable outcomes is the concern for the CWF. 1. Achieving desired outcomes 2. Supplement not substitute requirement 3. Conflicts of interest 4. Administrative expenses Clean Water Fund measurable outcomes, concern about too much of the funds spent on monitoring vs. fixing problems. What does supplement not substitute mean? What is meant by general funding? How long after general funds are used for something does it still mean substitute? It s not clear and it s confusing, but that doesn t mean we don t have to comply with this provision. The Constitution requires Legacy funds to supplement traditional sources of funding. It s not clear what constitutes a traditional source of funding. Recommendation that the Legislature establish a process to review historical funding levels for projects and programs proposed to be funded with Legacy money. Suggest that everyone do do diligence all agencies should document how they re complying. Page 2 of 10

4 Conflicts of interest (COI) concerns the Clean Water Council does not pay enough attention to COI concerns. The CWC needs to develop policies and procedures for COI. Limits on administrative expenses. Agencies are unclear about how to comply with this. Some have complained about the reporting burden for complying with this requirement. MMB should provide some guidance to state agencies. Cecile Ferkul Legacy Funds Financial Audit. Three agencies spent 90% of the funds; MPCA, DNR, BWSR. Page 5 of the financial report has the breakdown of funds spent. They selected for testing ten nonstate organizations receiving the largest grants through each Legacy fund and looked at the breakdown of funds. The biggest grant for the Clean Water Fund was for the St. Croix River Association. Allocation of costs agencies didn t see if the employee cost allocation actually applied to the work done. Similar issues with vacation pay, severance, unemployment. Other cost allocations to legacy funds. $4.5 million grant went to local units of government for wastewater reuse. Charged almost $900,000 to the grant for administration, but couldn t show how those costs related to the grant. Advances to grantees allowable but not the desired way. Recommend agencies not advance funds. Grantees need to provide sufficient documentation for the use of funds, meet the grant or contract requirements, and meet the appropriate match requirements. Questions: Gene Merriam page 1 of report says internal controls generally adequate. How do you reconcile that statement with the issues you raised? Cecile Ferkul there is a spectrum of fully complied to not complied. Agencies want to comply. Our recommendation is to go back and get these things fixed. Better policies need to be developed to help guide compliance in the future. Grants concerns were not broadly across grants. Steve Woods question for Ms. Randall your report has recommendation for easements about buying public lands. But the recommendations for parks and trails are opposite about buying too much land. Judy Randall good question, there may be a disconnect. We need to look at easements. Dave Leuthe OLA question on DNR using Clean Water funds for stream gaging staff. We are also funding for these positions through the grantees. We will clean up this accounting. Louis Smith I m glad you exist. Have you looked at our bylaws? Judy we thought some procedures were lacking. Act of disclosure for conflict of interest is not there for the CWC. The Lessard-Sams Council asks that at the beginning of each meeting. It s a heightened awareness. It s creating a culture of respect for conflicts of interest and to embed it in the process. Our recommendations are not because we saw a problem, but because something can be improved. James Nobles why did we single out CWC? Other funds look at specific projects. CWF is more broadly used to fund programs. How would you define conflict of interest? You want to protect Page 3 of 10

5 Louis is the annual statement of conflict of interest that Lessard-Sams uses different than the form the CWC uses? Jen yes. There are 3 examples in your meeting packet. James Nobles see page 42 of the Legacy Amendment report (dark blue booklet) for the provisions to use to develop your procedure. Rep. Torkelson does this conflict in interest apply the same to both voting and non-voting members? James - you should discuss that and discuss the role of Legislators on the Council. Rep. Torkelson Legislature discussed how to deal with the maintenance of lands. James Nobles can legacy money be used for PELT? Probably not. Case law trunk highway fund Legislature can t take money from trunk highway fund for general funds. Issue is relevant here. Would the money be used to maintain land/habitat. But if funds are used to compensate for lost tax funds/general funds, it s getting close to crossing the line. Marilyn did you have any opinions about how the CWC recommends Clean Water Funds? Judy not really. There are differences between the funds. It s up to the Council if it wants to have more of its own ideas about how are funds used. You may decide to take more of leadership role. James this is a crucial point. We didn t directly address it. There is a role for the Council to be very engaged in asking questions about what will be accomplished in 5, 10, 25 years. Testing and monitoring vs. cleaning up. We issued a report in 2002 mostly about MPCA. The number of impaired waters has increased. We understand why, but people who voted for the legacy amendment want to see results. Judy Randall the Legislature changed its acknowledgment of the CWC this past session. Marilyn EPA is watching what we are doing. Minnesota is considered a leader by EPA. James a leader in what? Identifying impaired waters? We need to be a leader in solving problems. Linda as state agency representative with no vote, how would I have a conflict of interest? James as a state employee you have 3 different laws that apply to different people, different organizations. Members of the CWC will change and you just need to be more precise, to have a process. Gene disappointed you ducked the issue of supplement vs. substitute. Effectively eviscerated that provision; see p. 43/p. 51. James a judge may need to work through this issue. You have to find a standard that is enforceable across a wide spectrum. We reserve the prerogative to be able to say that this is substituting. Good advocacy point of view. Letter by 30 organizations said it was 1%. But that s not in the Constitution. If you use the 1%, then would have to maintain that 1% no matter what. What is the benchmark? It s not there. Rep. Torkelson outcomes, monitoring and testing; if we quit monitoring and testing we wouldn t know what we were doing. What are the outcomes for other funds? Judy For Outdoor Heritage funds it may be acquiring lands. Jim each fund will get more subjective. It may be more pheasants for Outdoor Heritage. Linda Bruemmer look at that report again. Marilyn s point of Minnesota being on the leading edge. EPA is looking at us putting drinking water together with wastewater. Chair Hanson address conflict of interest. Judy it needs to be part of Council meetings and BOC meetings and annual review. Elevate the issue. Page 4 of 10

6 Chair Hanson it applies to voting members. Do agencies have to address it too? James your bylaws talk about both voting on and participating in Council decisions. You all need to discuss this. Judy in my view, you should have everyone on the Council read and sign a conflict of interest statement. Break 3. Steering Committee Report Jen Maleitzke asked Council members to think of ideas for a Council tour next summer. Chair Hanson asked for follow up discussion on the auditor s presentation. Rep. Torkelson do we have the expertise on the Council to address this or do we need someone? Jen said look at the handouts in the meeting packet. Someone from the administration was here at today s Council meeting who is willing to help us with forms. Matt there s a handbook on this for boards from the administration. Louis suggested adding a standing agenda item about conflict of interest disclosure for Council meetings. We need to develop a disclosure form that can be brought back to the Council. Chair Hanson the transparency issue is important. The Steering Committee can discuss this and come back with recommendations. Steve W. the BWSR board uses forms similar to Lessard-Sams. Gaylen had some comments on audit. First, we take it all very seriously. We have already made some adjustments. The grant the auditors looked at was an exception to the rule. There was a mistake in how the grant was set up. The funds were established by the Legislature and so didn t go through our usual process. It is not a typical example. Frank Jewell said he ran a small nonprofit and understands the issue of reimbursement vs. advance payment. It s difficult for nonprofits to do any work without an advance. Steve Woods echoes that. BWSR got some exemptions because farmers and others can t do the work without advance payments. Dave Leuthe said we use some DNR funds and some PCA funds for stream gaging work. We will improve our accounting procedures in how we track various funds. Chair Hanson the BOC is looking at measurable outcomes. We will bring back some recommendations. Gaylen - the balance of monitoring vs. clean up work is an important discussion to have with the Council. We will be able to show measurable outcomes in the future. 4. Check-in on Council issues: Motion by Steve Pedersen from 11/21 meeting: Stream standards must be maintained without deviation other than human health reasons. Team: Louis Smith, Sandy Rummel, Dave Bennett, Deb Swackhamer. SSTS ad hoc team: Chair, Victoria Reinhardt BOC committee: Vice Chair, Marilyn Bernhardson Louis Smith the motion by Steve Pedersen at the last meeting and Dave Bennett s concern about the Poplar River. An ad hoc committee was formed and gathered more background information about DNR s standards and how they were addressed. Question; is the Council Page 5 of 10

7 Draft resolution by Louis Smith (see handout). Dave Bennett s point was to inform the Council, let them know this issue was of deep concern to him and deserving of attention. This is also of concern to Louis as a representative of stream and lake group. Sandy thought that part of the Council s role is to speak out on policy issues. Bylaws include recommendations on funds. We should think about if our role is limited to that. The public thinks our role is broader. Jen the 2nd bullet in the bylaws is about implementation. Chair Hanson is this a permit issue? Dave Leuthe - yes. DNR has some ability to make exceptions. Chair Hanson at the Council s Duluth meeting someone was looking for the Council s recommendation on the Knife River Project. We chose not to do that. Matt does permitting work tie back to Section 114D? Louis Chapter 114D is the Clean Water Legacy Act. Water quality issues raised by the Legacy Act. Narrow view is this wouldn t apply. Broader view is it would. Steve Woods is there an overt process? Dave L. my view is if we follow this trend, then the Council could raise the issue that maybe the law should be changed to better protect clean water, but maybe you don t want to get into each individual permit. Pam said she loves the Poplar River and wants to protect it, but we should stick to our assignment. Marilyn agrees. Frank is not sure if it s our role. Question of outcomes; if it s sucking out more water than can sustain trout, we should speak out. We have the right to say there s something wrong with this. Sandy the resolution is stated to stay away from particulars and stick with the principles. Provide something for agencies to use. Warren Formo agree with issue. Our bylaws say we can t get involved in legislative issues. Sandy motion was amended and voted on. New motion to go back to our bylaws and see if this is something we can support. Chair Hanson asked how this fits with your existing powers. Dave L. we made a determination that was broader for human health. It was also an economic consideration. Louis moves the resolution. Sandy Rommel seconds the motion. Chair Hanson asked if there is there any discussion on the motion. There was none. Chair Hanson called the question. Voice vote. Motion was defeated. Thanks for your input and we will continue to. Chair Hanson SSTS Ad Hoc Committee. Jen the SSTS Committee will summarize the previous SSTS meetings and come to Council with a report. Scott Hoese is the SSTS looking for budget recommendations? Yes. Are they looking at soils/standards? Marilyn I thought that was their role. I would be concerned if they didn t address this issue. Scott how can we ask them to do anything other than financial recommendations? How can we ask them to change standards? Chair Hanson said they made an effort to go through that. Rep. Torkelson so far we ve just been provided information. But standards and financial go together. BOC Marilyn discussed accountability and outcomes. Met on December 2 nd. Interagency measures and outcomes team will come back and report to the Council. Deb is the liaison. Budget and priorities BOC will have a priorities setting discussion to bring back to the Council. Point vs. nonpoint discussion. Page 6 of 10

8 Discussion on supplanting vs. supplementing Local capacity issue we ve struggled with. How to have more local staff. There is resistance from Legislators to fund staff. Voluntary vs. regulatory. Lunch 5. Groundwater management: Quantity, quality and connectivity issues Lanya Ross (Met Council), Andrew Streitz (MPCA) and Jason Moeckel (DNR) GW/DW Jason why Protect Groundwater/Overview Lanya Ross water supply of TC Metro Area. Protection of groundwater to protect our drinking water to protect our ecosystems. Models various ways they can help us; predict outcomes, planning, etc. Metro model 2 endorsed by MDH/DNR in Prairie du Chien-Jordan aquifer is the most productive and most used aquifer in the metro area. Drawdowns can affect lakes and streams ----ecosystems affected can cause aquifer to aquifer interactions. Questions: What does significant mean? Lanya good question. Managers ask those questions. What aquifer conditions to expect under planning. Use models to predict. Evaluation of groundwater and surface water interaction roughly 50% of metro lakes, wetlands and streams directly influence our groundwater system and vice versa. Our analysis indicates that, of the 100,000 surface waters analyzed approximately; a) 52% are disconnected from the regional groundwater system. Management of these water bodies should focus on stormwater management practices. b) 30% recharge our aquifers. An example that stands out on this map is Lake Waconia in the western metro. Management of these water bodies should consider how their water quality may impact our groundwater and drinking water supplies. These features may also be impacted by increased pumping. c) 16% receive and discharge groundwater. Some of these may be particularly susceptible to increased groundwater pumping. White Bear Lake is an example of surface waters in this category. d) 2% are supported by upwelling groundwater. These include our state-protected trout streams and calcareous fens. Andrew Streitz MPCA hydrologist in Duluth office. Work he is presenting is partially funded by CWLA. Little Rock Creek TMDL Project model done. Slide high capacity groundwater withdrawals (irrigation) Slide altered flow identified as an impairment for first time. If pumping is reduced, discharge goes up. Statewide trends using example of Little Rock Creek can we use that project as a shortcut for other projects. In addition to future supply issues, our modeling predicts that some areas may experience surface water impacts due to increased groundwater pumping. Consumption water is not returned to groundwater. Nonconsumption cooling water mostly for power generation. Irrigation goes to evapotranspiration; municipal use. Page 7 of 10

9 Clearwater River average monthly discharge decreasing flow trend over time. Statistically significant over 20 years. High capacity pumping is related to decreasing flow trends. Watershed investigations are dependent on monitoring networks; data maintained by the state. Gaylen toxic blue-green algae in Little Rock Lake. Violations of the hydrogen sulfide standard were also a problem and made it difficult for some people to stay in their homes. Steve W. will this work lead to some refining of minimum stream flows? Andrew we are asking biologists to determine what flows are needed to maintain aquatic life. Rep. Torkelson how do rainfall trends or timing work into this? Andrew rainfall has been increasing, and in some places decreasing. You need to look at intensity too. Intensity is increasing, so there is less infiltration. Scott are there large dairies using the water? Andrew - some areas are used for dairy farming and some are for industry. Cities take a lot of water, too. Todd Renville metro model Lanya model does not factor in contamination. Dave L. contamination, direction of movement, speed, use that to determine potential direction of movement. Lanya one of the goals for supply management is to keep contamination from moving around. We want to build additional functionality. What would optimal pumping be, for instance? Try to maintain certain groundwater levels in that area. Good groundwater management. Jason monitoring network. Mantra is; we have to map it, monitor it, and then model it, and manage it. How much is enough? Slide 66 years record shows declining trend in groundwater Question about governance how to get everyone involved in a groundwater area together with surface water effects. Scott how many gallons are pumped here? (Minnewaska, Glenwood, Bonanza Valley) Dave L. there are hundreds of wells. It s called the irrigation capitol of Minnesota. Challenge when you only have years of well data to determine if additional pumping will have a negative effect. It s even harder to see if you have only 6 years of data. Use the 66 years of data slide to show what little trend is seen in smaller data sets. 30 year plan for monitoring wells. Goal is for a total of 6835 monitoring wells. Guidance document outlines 30 year construction program estimated at $3.1 million per year. Scott why 2 wells? Jason nesting 2 wells at different levels to look at the vertical distribution of the aquifer. Summary and January preview of potential topics for Council presentations. Last slide 4 nested wells in Dakota County near Vermillion River designated trout stream dependent on groundwater to maintain cool temperature for trout. Scott will technology catch up over time so you don t need as many wells? Jason don t know if there s a technical solution to more monitoring wells. Dave L. increasing population and development get more demand for use. We need better data to respond to demand fairly. Page 8 of 10

10 Scott who makes the decision on water use, DNR or Legislators? Dave L. ultimately people who use it need to be involved in making decisions; need information to do that. Rep. Torkelson water planning. Jason statute says it s DNR s decision. We need Groundwater Management Areas. Rep. Torkelson a groundwater management scheme separate from a surface water management scheme? Jason somehow we have to link them. Dave L. some kind of management organization. We need to manage water to keep it in Minnesota as long as possible, keep it clean, and not contaminated as much as possible. Jason example of Lakeville and Apple Valley that are in 2 watershed districts, groundwater areas, multiple jurisdictions. Steve W. authorities Legislature has already given to LGUs, they can impose sprinkler bans, etc. We need to see that it s time to make choices. We need data to see that. Question about the groundwater monitoring network cost estimate at $3.1 million per year. Is that inflation or current dollars? Jason current dollars. Steve W. we have about 21 years left for the legacy amendment. Steve W. surprised that not as many wells are needed in the Mt. Simon-Hinckley aquifer. Jason we don t need as many wells in deep aquifers because they are not as responsive as shallow aquifers. Chair Hanson what do you want from them for January s Council meeting? Todd what we need for PCA and Ag wells to add into networks. Jason added because they are needed for water chemistry. Add those in with water level information. Glenn Skuta, PCA we have some water level data in there. You can use wells for both chemistry and level data. We have shallow wells that are monitored once or twice a year. Dan Stoddard MDA wells are monitored for pesticides at very low levels. There is great concern about cross contamination, but the wells can be used for level purposes. Chair Hanson we want a better understanding of the biggest water users. Get a breakout of utilities, etc. Also information on water reuse. Randy Ellingboe, MDH water reuse ends up passing through the plumbing board. Steve W. reuse is a subset of conservation. More interested in water quantity. How conservation might be incented rather than regulated. Woodbury growth. Frank Woodbury growth plight of Afton - effect on boundary between Woodbury and Afton. Dave L. groundwater management discussion for SW metro area as an example. Marilyn other areas of the state with quantity issues (Redwood County). Contamination of groundwater nitrogen contamination. Linda source water protection plans. Conservation and reuse means different things to different people. 6. January meeting agenda / adjournment Chair Hanson - draft agenda for January meeting. Gaylen South Metro TMDL and Minnesota River TMDL will be public noticed in early January. These are big projects that came from the CWLA and the G-16. In the process of developing implementation plans for them. Chair Hanson - another option is for the AGs to explain conflict of interest. Page 9 of 10

11 Pam is interested in information on the South Metro and Minnesota River TMDLs. Can someone bring back recommendations on conflict of interest? Chair Hanson the Steering Committee will meet after the Council meeting. Meeting adjourned. 2:30~3:30 Council Steering Team Next Meeting: January 23, 2012 Location: MPCA Board Room Page 10 of 10

12 Office of the Legislative Auditor State of Minnesota The Legacy Amendment December 12, 2011

13 Legacy Amendment overview Constitutional amendment passed by Minnesota voters in 2008 Raised state sales tax by 3/8 of 1 percent for specific purposes Projected to raise between $240 and $300 million annually Approved for 25 years; will end June 30, 2034

14 The Legacy Amendment established four funds Fund Percentage of Revenue Purpose Outdoor Heritage 33% Clean Water 33% Parks and Trails 14.25% Arts and Cultural Heritage 19.75%

15 The Legacy Amendment established four funds Fund Percentage of Revenue Purpose Outdoor Heritage 33% Restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife Clean Water 33% Parks and Trails 14.25% Arts and Cultural Heritage 19.75%

16 The Legacy Amendment established four funds Fund Percentage of Revenue Purpose Outdoor Heritage 33% Clean Water 33% Restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife Protect, enhance, and restore water quality in lakes, rivers, and streams; protect groundwater; and protect drinking water sources Parks and Trails 14.25% Arts and Cultural Heritage 19.75%

17 The Legacy Amendment established four funds Fund Percentage of Revenue Purpose Outdoor Heritage 33% Clean Water 33% Parks and Trails 14.25% Restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife Protect, enhance, and restore water quality in lakes, rivers, and streams; protect groundwater; and protect drinking water sources Support parks and trails of regional or statewide significance Arts and Cultural Heritage 19.75%

18 The Legacy Amendment established four funds Fund Percentage of Revenue Purpose Outdoor Heritage 33% Clean Water 33% Parks and Trails 14.25% Arts and Cultural Heritage 19.75% Restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife Protect, enhance, and restore water quality in lakes, rivers, and streams; protect groundwater; and protect drinking water sources Support parks and trails of regional or statewide significance Arts, arts education, arts access, and to preserve Minnesota s history and cultural heritage

19 Overview of Legacy appropriations Sales tax generated approximately $250 million in fiscal year 2011 Sales tax revenues allocated to Legacy funds Outdoor Heritage Fund Clean Water Fund Parks and Trails Fund Arts and Cultural Heritage Fund Lessard-Sams Outdoor Heritage Council (Advisory) Clean Water Council (Advisory) Minnesota State Legislature (Allocates revenue from all Legacy funds) DNR MPCA BWSR MSAB MHS MDA MDH Other Agencies Legacy Funding Recipients (State agencies and nongovernment organizations)

20 Differences among four funds Advisory groups Allocation of money Oversight

21 Differences reflect history, purposes, and constituencies Lessard-Sams Outdoor Heritage Council active interest groups Clean Water Council Clean Water Legacy Act Existing parks and trails organizations DNR and Metropolitan Council Existing grants processes Minnesota Arts Board and Historical Society

22 Despite differences, four ongoing concerns for all Legacy funds Achieving desired outcomes Supplement not substitute requirement Conflicts of interest Administrative expenses

23 Whether Legacy money will achieve the intended results is unclear Outdoor Heritage Fund: purchasing land Clean Water Fund: producing measurable outcomes Parks and Trails Fund: maintaining existing parks and trails Arts and Cultural Heritage Fund: projects of marginal significance

24 It is not clear how to comply with the supplement not substitute provision The amendment requires Legacy funds to supplement, and not substitute for, traditional sources of funding What constitutes a traditional source of funding? The amendment does not require maintaining a traditional level of funding

25 Recommendations regarding the supplement not substitute provision Legislature should establish a process to review historical funding levels for projects and programs proposed to be funded with Legacy money State agencies and Legacy-fund recipients should document how they are complying with the supplement not substitute requirement

26 Conflict of interest concerns persist Varying opinions about what constitutes a conflict of interest Different conflict of interest laws and policies apply, depending on the Legacy fund and facts of each situation The Clean Water Council was the only organization we reviewed that had not paid close attention to conflict of interest concerns

27 Recommendations regarding conflicts of interest The Clean Water Council should develop conflict of interest policies and procedures All state agencies involved in implementing the Legacy Amendment should ensure that conflict of interest concerns are given serious consideration

28 Agencies are unclear on how to comply with limits on administrative expenses Law requires administrative expenses to be directly related to and necessary for Legacy-funded activity Some agencies want to use their indirect cost allocation rate Some agencies complain about reporting and accounting burden

29 Recommendation for administrative expenses State agencies and Legacy-fund recipients should document how they are complying with the requirement regarding administrative expenses The Department of Management and Budget should provide guidance to state agencies

30 Office of the Legislative Auditor State of Minnesota Legacy Funds: Outdoor Heritage, Clean Water, and Parks and Trails December 12, 2011

31 Financial Audit Scope July 2009 through January 2011 Department of Natural Resources Pollution Control Agency Board of Water and Soil Resources 10 grantees

32 Financial Audit Scope Agency Amount Expended July January 2011 Department of Natural Resources (DNR) $ 85,368,212 60% Pollution Control Agency (PCA) 20,033,445 14% Board of Water and Soil Resources (BWSR) 20,131,599 14% Other Entities (5 state agencies, U of M, and the Legislature) 16,803,428 12% Totals $ 142,336, % %

33 Financial Audit Scope State Agencies Agency DNR PCA BWSR Land and Easements 52% 0% 16% Grants 25% 7% 77% Payroll 8% 40% 7% Non payroll 15% 53% <1%

34 Financial Audit Scope - Grantees Grantee Fund Grants Paid Pheasants Forever, Inc. Outdoor Heritage $8,098,629 Anoka County Outdoor Heritage 3,800,000 Trust for Public Land Outdoor Heritage 1,850,000 Ducks Unlimited Outdoor Heritage 1,720,055 The Nature Conservancy Outdoor Heritage 1,387,009 Southwest Initiative Foundation Outdoor Heritage 1,279,970 Minnesota Land Trust Outdoor Heritage 440,807 Trout Unlimited Outdoor Heritage 439,621 St. Croix River Association Clean Water 466,820 City of Nisswa Parks and Trails 500,000

35 Financial Audit Overall Conclusions Internal Controls were generally adequate Entities generally complied with legal requirements Some weaknesses

36 Allocation of Costs Agencies did not have adequate documentation or justification to show how some costs complied with the purposes of specific appropriations of Legacy money Payroll estimates Cost allocations

37 Advances to Grantees BWSR and PCA advanced Legacy money to some grantees without sufficient authorization.

38 Oversight of Grantees Grantee reimbursements BWSR and PCA did not sufficiently ensure that grantees complied with statutory match requirements.

39 The Legacy Amendment and Legacy Funds: Outdoor Heritage, Clean Water, and Parks and Trails are available at:

40 Last Updated Approved Clean Water Council By-Laws Council Purpose and Membership Council purposes, responsibilities and organization are specified in MN Statutes Chapter 114D.30. Specifically, the Clean Water Council is charged with the responsibility to advise on the administration and implementation of this chapter. Membership of the Council is specifically identified in MN Statutes Chapter 114D.30, subdivision 2. Council Member Conduct Council members have a duty to act in good faith and with complete accuracy, candor, truthfulness and disclosure in all formal or informal discussions, communications or related actions between any members of the Council. Conflict of Interest A Clean Water Council member may not participate in or vote on a decision of the council relating to an organization in which the member has either a direct or indirect personal financial interest. While serving on the Clean Water Council, a member shall avoid any potential conflict of interest. Terms, compensation, removal, resignation, appointment Terms, compensation, nomination, appointment and removal of a Council member are governed by MN Statutes Chapter 114D.30. Terms: The initial terms of members representing state agencies and the Metropolitan Council expire on the first Monday in January Thereafter, the terms of members representing the state agencies and the Metropolitan Council are four years and are coterminous with the governor. Following the initial staggered term expiration dates, the terms of other members of the Council shall be four years as provided in section , subdivision 2 (see attached: MN Statutes ). Members may serve until their successors are appointed and qualify. Compensation of Council members is as provided in section , subdivision 3. Removal: A member may be removed by the Governor at any time at the pleasure of the Governor. The chair of the advisory council or committee shall inform the Governor of a member missing three consecutive meetings. After the second consecutive missed meeting and before the next meeting, Council staff shall notify the member in writing that the member may be removed for missing the next meeting. In the case of a vacancy on the board, the appointing authority shall appoint a person to fill the vacancy for the remainder of the unexpired term. (Section , subdivision 4). Resignation: If a Council member wishes to resign prior to the end of his/her term, he/she must write a letter of resignation to the Governor and send copies to the Council Chair and Council staff. Staff will submit a Notice of Vacancy to the Secretary of State Office of Open Appointments, where the vacancy will be posted. wq-iw3-26 Page 1 of 5

41 Last Updated Approved Vacancies and application process: A vacancy on the Council may be filled by the Governor for the remainder of the unexpired term. A person interested in applying for a vacancy must submit an application to the Secretary of State s Office of Open Appointments (application form available at: If a successor has not been appointed by July 1 after the scheduled end of a member s term, the term of the member for whom a successor has not been appointed shall be extended until the first Monday in January four years after the scheduled end of the term. Election of Chair and Vice-Chair The Council shall elect from its non-agency members a chair and vice-chair. Elected chair and vice-chair will serve one two-year term, beginning in January. The Council shall use the methods of nomination and elections consistent with Robert s Rules of Order, and in compliance with Minnesota Open Meeting Law, as outlined below. Election Process: (Process to be followed separately; first for election of Chair and subsequently, election of Vice-Chair) 1. Council members submit nominees to Chair prior to election. 2. Current Chair may designate another Council member to facilitate the election of Chair. 3. Chair or designee presents list of nominees for Chair/Vice-Chair to the Council. There is no vote taken on accepting this list of nominees, these nominations are treated as if made by members from the floor. 4. Chair or designee opens floor for further nominations for Chair/Vice-Chair. 5. Council member makes verbal nomination, nominees name is noted. Nomination need not be seconded. 6. Chair or designee seeks any further nominations. 7. Chair seeks motion to close nominations. Council members makes a motion, motion is seconded by another Council member. 8. Chair or designee calls for a vote on the motion to close nominations. 9. When the Council votes on closing the floor for nominations, Council then proceeds to the election. a). If there are no nominees for the position of Chair/Vice-Chair, the Council shall vote on continuing the term of the current Chair/Vice-Chair. b). When there is one nominee for Chair/Vice-Chair: Chair or designee calls for a vote to elect this individual to the position. If majority of Council members vote in favor, nominee is elected as Chair/Vice-Chair. c). When there are multiple nominations: Chair or designee calls for a vote for each nominee. Each Council member may only vote once. Council member may vote for him/herself. A member has the right to change his/her vote up to the time the vote is finally announced. Nominee with the majority vote is elected to the position. wq-iw3-26 Page 2 of 5

42 Last Updated Approved Chair or designee announces who is elected as Chair/Vice-Chair, their effective starting date (typically, January of proceeding year), and length of term (typically 2 years from start date). The powers and duties of the Chair shall be as follows: 1. To preside as Chair at all meetings of the Council. 2. To see that the laws of the State, pertaining to the purpose and functions of the Council, the resolutions of the Council and its policies are faithfully observed and executed. 3. To call special meetings of the Council, on his/her own initiative, or upon request of three or more members. 4. To serve on the Steering Committee. The powers and duties of the Vice-Chair shall be as follows: 1. Whenever the Chair is absent from any regularly scheduled meeting, his/her duties shall be performed by the Vice-Chair. Whenever the Chair is absent from a special meeting called by him/her or upon the request of three or more members, his/her duties shall be fulfilled by the Vice-Chair. 2. Whenever the Chair s absence from the State or his/her incapacity due to illness prevents him/her from handling necessary Council business, at time other than the Council meetings, such business shall be handled by the Vice-Chair. 3. To serve on the Steering Committee. Council Organization 1. The Steering Committee and the Budget and Outcomes Committee are standing committees. 2. A Steering Committee will consist of the following members: Chair Vice-Chair Past Chair (two-year term on Committee) Agency representatives on the Council Budget and Outcomes Committee Chair Agency staff The Steering Committee plans meetings and develops Council calendar each year. The Steering Committee is accountable to the Council. 3. The Budget & Outcomes Committee shall consist of a minimum of four members and a maximum of a non-majority of the current seated Council members. The Budget and Outcomes Committee: Prepares initial input on budget recommendations to Council; Reviews existing measurable outcomes information to show effectiveness of accomplishments; Is accountable and advisory to the full Council; and Elects its own Chair. wq-iw3-26 Page 3 of 5

43 Last Updated Approved Membership of this Committee is reviewed every two years. 4. Administrative Support: The Pollution Control Agency and the other state agencies represented on the Council shall provide administrative support for the Council, as appropriate. Council Procedures Council Decisions - All formal actions of the Council shall be made at open public meetings. A simple majority vote of the voting Council members present at the meeting, at which a quorum has been established, is needed to take formal action. Agency representatives on the Council are non-voting members. Quorum - A simple majority of seated voting Council members constitutes a quorum. Record of Decisions - The Council shall use meeting minutes or resolutions to transmit a record of its formal actions. Upon their adoption, copies of the resolutions shall be sent to affected parties/organizations. Resolutions shall be kept on file and shall be made available to the public. Speaking on Behalf of the Council - Members speaking on behalf of the Clean Water Council may speak only in terms of ideas or resolutions supported and agreed upon by the Council, either by a formal vote, resolution or supported in discussion at a regularly scheduled Council meeting. Legislative Input - Members of the Clean Water Council may not be registered lobbyists. Communication with the legislature is limited to providing information on Council matters, and submittal of the legislative reports, specified in MN Statutes Chapter 114D.30. Council Meetings Frequency and location - Regular Council meetings shall be held the third Monday of the month, on a monthly basis, unless determined otherwise. When the third Monday falls on a holiday, the Council shall meet the fourth Monday of that month. Meetings will be held in St. Paul, unless determined otherwise. Accessibility to the Public Meetings of the Council shall be held at facilities that are readily accessible to the public. All regular Council meetings and work group meetings shall be open to the public. Public Information Information regarding regular Council meetings, meeting minutes and meeting agendas will be available on the Clean Water Council website: for public information. Public Input - The Council welcomes public input on matters relevant to Council work. Members of the public may comment at Council meetings during specified times, as the agenda allows. Time for public comment is under the discretion of the Council chair. Agendas - The Council chair, in collaboration with the Steering Committee, shall establish the agenda for Council meetings. The chair shall provide an opportunity wq-iw3-26 Page 4 of 5

44 Last Updated Approved to obtain Council member input at each meeting regarding the substance of future Council agendas. Rules of Order - Robert s Rules of Order shall be the parliamentary authority for all matters of procedure of this Council not otherwise covered in these By-Laws. In the event of conflicts between Robert s Rules of Order and the Minnesota Open Meeting Law or Data Practices Act, the Minnesota law requirements shall prevail. Council Work As specified in MN Statutes Chapter 114D.30, subdivisions 5-7: Recommendations on Appropriation of Funds - The Clean Water Council shall recommend to the Governor the manner in which money from the clean water legacy account shall be appropriated. (Expected recommendations will be needed by May of even-numbered years). Implementation Plan*- The Clean Water Council shall recommend a plan for implementation of this chapter. The recommended plan shall address general procedures and time frames for implementing this chapter, and shall include a more specific implementation work plan for the next fiscal biennium and a framework for setting priorities to address impaired waters consistent with section 114D.20, subdivisions 2 to 7. The Council shall submit a revised implementation plan by December 1 of each even-numbered year. Biennial Report*- By December 1 of each even-numbered year, the Council shall submit a report to the legislature on the activities for which money has been or will be spent for the current biennium, the activities for which money is recommended to be spent in the next biennium, and the impact on economic development of the implementation of the impaired waters program. The report due on December 1, 2014, must include an evaluation of the progress made through June 30, 2014, in implementing this chapter, the need for funding of future implementation of those sections, and recommendations for the sources of funding. *The Council prefers to submit an annual report to the Legislature, rather than the statutorily specified biennial report. Council Per Diem and Expenses MN Statutes , Subd. 3 governs compensation to be made to Council members for their participation in Council activities. The procedure to be used by Council members for requesting and receiving payment of per diem and expenses is identified in the Council Per Diem and Expenses Policy. Changes to By-Laws Any additions, deletions or revisions to the approved Clean Water Council By-Laws must be submitted as an amendment in writing with a 30 day notice prior to approval by the Council. wq-iw3-26 Page 5 of 5

45 CWC Steering Committee Agenda Monday, December 12, 2011; 2:30 p.m. MPCA Board Room 520 Lafayette Road North, St. Paul 1. Follow-up from December meeting 2. January 23, 2012 meeting agenda (meeting will be held in the MPCA Board Room) 9:00-9:15 Convene Full Council Comments/additions to the agenda Approve 12/12/11 meeting minutes Council introductions and updates 9:15-9:30 Steering Committee Report 9:30-10:30 Interagency Measures and Outcomes team update (tentative) Suzanne Hanson (MPCA), Andy Holdsworth (DNR) OR South metro TSS TMDL and Minnesota River TMDL mins (Bob Finley) 10:30-10:45 Break 10:45-12:00 Clean Water Council priority-setting discussion: Go back to original CWLA statute for guidance Consider Amendment language Look at actual appropriations in FY12-13 and CWC budget biennial recommendations 12:00-12:30 Lunch 12:30-2:15 Groundwater/drinking water conservation (tentative) Reuse, trends, future and economics of groundwater use Groundwater management activities Agency roles; activities under the Clean Water Fund 2:15-2:30 February meeting agenda / adjournment 2:30~3:30 Council Steering Team 2:30~4:30 SSTS ad hoc committee meeting Next Meeting: February 27, 2012 Location: MPCA Board Room

46 Groundwater/drinking water topics left to cover: Water reuse agenda item? February Met Council? (see work plan) Energy production Funding (new projects?) February SSTS team summary and recommendation BOC check-in and schedule review