BOARD OF WATER AND SOIL RESOURCES 520 LAFAYETTE ROAD N. LOWER LEVEL BOARD ROOM ST. PAUL, MINNESOTA 55155 WEDNESDAY, JANUARY 25, 2017 BOARD MEMBERS PRESENT: Patty Acomb, Joe Collins, Jill Crafton, Jack Ditmore, Chris Elvrum, MDH; Kathryn Kelly, Tom Landwehr, DNR; Tom Loveall, Terry McDill, MPCA; Neil Peterson, Nathan Redalen, Tom Schulz, Rob Sip, MDA; Steve Sunderland, Gene Tiedemann, Gerald VanAmburg, Paige Winebarger BOARD MEMBERS ABSENT: Faye Sleeper, MES STAFF PRESENT: Mary Jo Anderson, Kevin Bigalke, Steve Christopher, Tim Dykstal, Travis Germundson, Tom Gile, Ryan Hughes, John Jaschke, Al Kean, Tim Koehler, Dale Krystosek, Melissa Lewis, Bill Penning, Ken Powell, Suzanne Rhees, Tim Smith, Heather Staff, Doug Thomas, Dave Weirens, Marcey Westrick OTHERS PRESENT: Doug Norris, DNR Jason Garms, DNR Jennifer Berquam, AMC BWSR Meeting Minutes January 25, 2017 Page 1
Acting Chair Gerald VanAmburg called the meeting to order at 9:06 AM PLEDGE OF ALLEGIANCE ADOPTION OF AGENDA Acting Chair VanAmburg reported that the order of today s agenda has been changed to accommodate staff schedules. The Buffers, Soils, and Drainage Committee and the Wetlands ** Conservation Committee will be moved up on the agenda. Moved by Kathryn Kelly, seconded by Paige 17-01 Winebarger, to approve the agenda as presented. Motion passed on a voice vote. ** MINUTES OF DECEMBER 14, 2016 BOARD MEETING Moved by Patty Acomb, seconded by Joe Collins, 17-02 to approve the minutes of December 14, 2016, as circulated. Motion passed on a voice vote. REPORTS Chair & Administrative Advisory Committee Gerald VanAmburg reported that Brian Napstad attended the EQB meeting. Gerald stated that the Minnesota Environmental Congress will be held February 3 at the University of Minnesota. The Governor s Water Summit will be held on January 27 at the University of Minnesota-Morris. Audit & Oversight Committee Gerald Van Amburg reported that the Audit & Oversight Committee met yesterday; recommendations are on the agenda later today. Executive Director s Report John Jaschke reviewed information in board members packets. John reported that the Governor s budget recommendations were announced yesterday. John stated that board member appointments and reappointments are in the Governor s Appointments Office. Board members can serve through June or until appointments are made. John reported that Governor Dayton and USDA Acting Secretary Michael Scuse signed the CREP agreement last week. Jill Crafton asked if a report can be made from those attending the Water Summit as she is unable to attend. John acknowledged Angie Becker Kudelka s leadership in working with USDA officials in Washington, D.C. to get the CREP agreement signed. Bill Penning and Tim Koehler were also very involved. Jack Ditmore applauded all those involved. Dispute Resolution Committee Travis Germundson provided an update on the appeals and reported that two new appeals have been received. Travis reported that a DRC hearing will be held regarding File #16-4, an appeal in Wright County. Travis received notice that File #16-8, an appeal in St. Louis County has been withdrawn. Grants Program & Policy Committee Steve Sunderland reported that the Committee met in November; a recommendation is on the agenda later today. RIM Reserve Committee Gene Tiedemann reported that the Committee recommendation is on the agenda later today. Water Management & Strategic Planning Committee Jack Ditmore reported that the Committee plans to meet on March 21, 2017. BWSR Meeting Minutes January 25, 2017 Page 2
Wetland Conservation Committee Tom Schulz reported that the Committee met on January 13; discussions included the 404 Assumption Feasibility Study Report, Local Roads Wetland Replacement Program; wetland banking credits; and WCA rulemaking. The Committee recommendations are on the agenda later today. Buffers, Soils & Drainage Committee Kathryn Kelly reported that the Committee met on January 13 in St. Cloud; recommendations are on the agenda later today. Kathryn acknowledged the fine work done by staff. Drainage Work Group (DWG) Tom Loveall provided an overview of the DWG meeting on January 12. John reported that Al Kean and Rob Sip, MDA; will coordinate with AMC, MAWD and the DWG communications subgroup to provide information to landowners regarding Chapter 103E Drainage system acquisition of buffer strips. Al Kean provided an overview of the DWG Fact Sheet and prioritized list of discussion topics with potential consensus recommendations. COMMITTEE RECOMMENDATIONS Buffers, Soils, and Drainage Committee Excessive Soil Loss Rulemaking Dave Weirens reported that authorization is requested to publish a Request for Comments for possible amendment to rules governing excessive soil loss. Suzanne Rhees reported that rulemaking is necessary in order to reconcile the rule with recent changes in statute that essentially make excessive soil loss standards applicable statewide, rather than only in counties with a local ordinance. The Buffers, Soils, and Drainage Committee met on January 13 and recommends ** adoption. Moved by Kathryn Kelly, seconded by Tom Loveall, to adopt the Buffers, Soils, and Drainage 17-03 Committee s recommendation to authorize the initiation of the rulemaking process to revise Minnesota Rules Chapter 8400 by publishing the Request for Comments. Discussion followed. Motion passed on a voice vote. Buffer Program Policy 8: Initial Election of Jurisdiction Dave Weirens reported that Minnesota Statutes 103F.48 authorizes counties and watershed districts election jurisdiction to enforce the water resources protection requirements of this Law. Policy 8: Election of Jurisdiction has been developed to provide a coordinated and consistent approach to the adoption of Buffer Law enforcement by local governments. The Buffers, Soils and Drainage Committee recommends adoption of Policy 8: Election of Jurisdiction. Tom Gile provided an overview of the draft Buffer Program Policy 8: Election of Jurisdiction Buffer Law Implementation. Dave stressed the importance of communication among local units of ** government. Moved by Kathryn Kelly, seconded by Tom Loveall, to adopt the Buffer Program Policy 8: 17-04 Election of Jurisdiction. Discussion followed. Dave stated that the date on the Policy states today s date of adoption, January 25, 2017. Jack requested a friendly amendment to include today s date of adoption on both the Resolution and the Policy. Kathryn accepted the amendment to the Resolution. John Jaschke reported that correspondence will be sent to LGUs. Motion passed on a voice vote. Wetlands Conservation Committee Clean Water Act Section 404 Assumption Feasibility Report Dave Weirens reported that the Wetlands Conservation Committee met on October 12, 2016; December 9, 2016; and January 13, 2017, to review drafts of the report and discuss the next steps for potential Section 404 Assumption in Minnesota. The Committee recommends acceptance of the report and a Resolution outlining the next steps to analyze potential assumption in Minnesota. The resolution also represents a general agreement between BWSR, DNR and MPCA agency leadership. Doug Norris provided background information, a summary of findings and next steps. Doug stated that the 404 Assumption fulfills the requirements of Laws of BWSR Meeting Minutes January 25, 2017 Page 3
Minnesota 2015, Special Session Chapter 4, Section 138 Federal Clean Water Act Section 404 Permit Program Feasibility Study. Doug acknowledged the project management team, and BWSR s Wetlands Conservation Committee for their efforts. Dave distributed the Resolution and stated that all agencies involved will meet to review the potential assumption. Doug provided an overview of the ** Resolution. Discussion followed. Moved by Tom Schulz, seconded by Jill Crafton to approve the 17-05 resolution contingent upon review for grammatical errors. John stated the report should be kept viable as long as possible, including an appendix of changes, while determining the next step. Motion passed on a voice vote. Acting Chair VanAmburg called for a break in the meeting at 11:05 AM. The meeting reconvened at 11:17 AM. Central Region Committee Nine Mile Creek Watershed District Watershed Management Plan Extension Kevin Bigalke reported that the Nine Mile Creek Watershed District has submitted a request for an extension to their current Watershed Management Plan. The Plan is set to expire in March 2017. The District has been actively working on a Plan amendment, but completion has been delayed due to staff changes (Kevin Bigalke was hired by BWSR). The Central Region Committee met on January 5, 2017, reviewed the request and ** unanimously recommends approval of the Plan extension. Moved by Joe Collins, seconded by Patty 17-06 Acomb, to approve the extension of the Nine Mile Creek Watershed District Watershed Management Plan until December 31, 2017. Motion passed on a voice vote. Minnehaha Creek Watershed District Watershed Management Plan Extension Kevin Bigalke reported that the Minnehaha Creek Watershed District has submitted a request for an extension to their current Watershed Management Plan. The District has been actively working on a Plan amendment; because the District is developing a subwatershed management approach, the Plan development has taken longer. The lead planner for the District has also recently gone on maternity leave. The Central Region Committee met on January 5, 2017, reviewed the request, and unanimously recommends approval of ** the Plan extension. Moved by Joe Collins, seconded by Jill Crafton, to approve the extension of the 17-07 Minnehaha Creek Watershed District Watershed Management Plan until December 31, 2017. Motion passed on a voice vote. Northern Region Committee Becker County Priority Concerns Scoping Document (PCSD) Tom Schulz reported that Becker County submitted their Priority Concerns Scoping Document as part of the update to their Comprehensive Local Water Management Plan; the Plan expired December 31, 2016. Becker County presented their PCSD to the Northern Region Committee on January 11, 2017; the Committee reviewed the document, concurred with the priority concerns selected and recommends approval of the Becker County PCSD. ** Moved by Tom Schulz, seconded by Kathryn Kelly, to approve the Becker County Priority Concerns 17-08 Scoping Document. Discussion followed. Ryan Hughes stated that due to the expired Plan, grant agreements will not be executed until they have an approved and adopted Plan in place. Motion passed on a voice vote. Douglas County Comprehensive Local Water Management Plan (CLWMP) Amendment Tom Schulz reported that Douglas County submitted a petition for a Comprehensive Local Water Management Plan amendment. The amendment deadline was extended to allow time to incorporate action items and BWSR Meeting Minutes January 25, 2017 Page 4
recommendations from the Watershed Restoration and Protection Strategies (WRAPS) information from four watersheds within the County: Pomme de Terre, Sauk, Chippewa and Long Prairie. The Northern Region Committee met January 11, 2017, reviewed the amended Plan and recommends approval of the ** amendment. Moved by Tom Schulz, seconded by Neil Peterson, to approve the amendment to the 17-09 Douglas County Comprehensive Local Water Management Plan until December 31, 2019. Discussion followed. Motion passed on a voice vote. Lake Superior North Watershed Comprehensive Watershed Management Plan Ryan Hughes reported that the Lake Superior North Watershed was selected by BWSR as one of the five pilot areas for the One Watershed, One Plan program. Beginning in 2014, the Advisory Committee, Policy Committee and Planning Workgroup members have attended regularly scheduled meetings and submitted the Lake Superior North Watershed Comprehensive Watershed Management Plan to BWSR on December 1, 2016, for approval. The Northern Region Committee met on January 11, 2017, to review the Plan content, State agency comments on the Plan, and unanimously recommends approval of the Plan. ** Moved by Tom Schulz, seconded by Neil Peterson, to approve the Lake Superior North Watershed 17-10 Comprehensive Watershed Management Plan. Discussion followed. Jack Ditmore stated that this is a very impressive plan and congratulated those involved on their efforts. Rob Sip stated that this Plan should be a model for future Plans. Motion passed on a voice vote. Audit and Oversight Committee 2016 PRAP Legislative Report Dale Krystosek reported that BWSR s Performance Review and Assistance Program (PRAP) was authorized by the legislature (Statute 103B.102) in 2007 as a means to monitor and assess the performance of local water management entities. Each year BWSR conducts performance reviews of soil and water conservation districts, watershed districts, water management organizations and county water plan implementation to determine the progress in implementing local government water plans. BWSR also uses this program to provide organizational improvement or assistance grants to local government units (LGUs) in need, and prepares an annual report to the legislature outlining the work conducted under the program. Dale provided an overview of the 2016 PRAP Report; highlighted the results of the 2016 LGU performance reviews, status of local water plan updates, audits and reporting and lays out goals for the program in 2017. Dale stated that the Audit & Oversight Committee met January 24, 2017, and recommends approval of the 2016 PRAP Report. ** Moved by Gerald VanAmburg, seconded by Tom Schulz, to approve the 2016 Performance Review and 17-11 Assistance Program (PRAP) to the Minnesota Legislature for transmittal to the Legislature and publication on the Board s website, with allowance for any minor editing modifications necessary for publication. Discussion followed. Minor typos were recognized in the report and will be corrected. Jill Crafton stated that staff have done a great job. Joe Collins stated the importance of staff and structure and it s recognized in this Plan. Motion passed on a voice vote. 2016 Grants Monitoring Report Tim Dykstal provided an overview of the 2016 Grants Monitoring Report. Tim reported that on June 22, 2011, the Board adopted the Grants Monitoring, Reconciliation and Verification Policy, to ensure its compliance with Office of Grants Management policies established by the Department of Administration. The implementation plan for the Policy calls for a report on grants monitoring activities to be delivered to the Board annually. The 2016 Report includes data on the monitoring of FY 2015 grants and the verification of FY 2014 grants. The Report also describes other ** initiatives in grants monitoring at BWSR this year and looks ahead to next steps. Moved by Gerald 17-12 VanAmburg, seconded by Tom Schulz, to approve the 2016 Grants Monitoring Report. Motion passed on a voice vote. BWSR Meeting Minutes January 25, 2017 Page 5
Grants Program and Policy Committee Grants Monitoring and Financial Reconciliation Policy Tim Dykstal reported that since 2011, BWSR staff have been monitoring and reconciling grants in accord with BWSR s Grants Monitoring, Reconciliation and Verification Policy adopted that year. The Policy hinged on two exceptions to Office of Grants Management (OGM) policies, the first of which expired on June 30, 2016. The proposed BWSR Grants Monitoring and Financial Reconciliation Policy would replace the previous Policy, focusing on grants most at risk and reconciling grants more timely. An exception request approved by OGM on June 29, 2016, allows BWSR to transition to the new Policy by setting reasonable targets for the financial reconciliation of FY 2015 and 2016 grants. The intent is to be in full compliance with OGM policies. The Grants Program and Policy Committee met on November 10, 2016 and recommended approval of the Grants Monitoring and Financial Reconciliation Policy. Under the BWSR Grants Monitoring and Reconciliation Policy, BWSR will: Monitor all BWSR grants annually. Complete a risk assessment of grants $50,000 and over. Reconcile payments on grants $50,000 and over by comparing the grantee s request for payment or closeout with supporting documentation for that request, such as purchase orders, receipts and payroll records before final payment is made. BWSR may also visit selected grantees for training, closeouts, and/or other monitoring and reconciliation activities. Under the grant agreement (and Minnesota Statutes 16B.98, subd. 8), The Grantee or delegated local unit of government will maintain records relating to the receipt and expenditure of grant funds, and those records may be examined at any time by the Board or the Board s designee and are subject to verification. ** Moved by Gerald VanAmburg, seconded by Steve Sunderland, to rescind Resolution 11-37 and adopts 17-13 the BWSR Grants Monitoring and Financial Reconciliation Policy as presented. Discussion followed. Jack Ditmore requested a friendly amendment to include today s date of adoption on the Resolution and the Policy. Gerald accepted the amendment to the Resolution. Motion passed on a voice vote. RIM Reserve Committee Conservation Reserve Enhancement Program (CREP) Implementation Bill Penning reported that Angie Hanson, USDA-FSA, is unable to attend the meeting today. Tim Koehler distributed the CREP Basic Program Overview, and a listing of over 70 supporting organizations involved with the Coalition for Minnesota Conservation Reserve Enhancement Program. Bill stated that BWSR staff and many other local, state and federal agencies and partners have been working for over two years on a CREP project titled, Minnesota s Plan to Improve Water Quality and Enhance Habitat (as authorized by BWSR Board Resolution 14-67). Last week Governor Dayton and USDA Acting Secretary Michael Scuse signed the Minnesota CREP Agreement. It authorizes 60,000 acres of land in buffers, wetlands and wellhead protection areas to be secured with a CRP contract and a perpetual RIM easement. Tim Koehler provided an overview of the Resolution; authorizing BWSR staff to: 1. Utilize existing and anticipated appropriated RIM funds (Clean Water Fund, Outdoor Heritage Fund, and Capital Investment) and other (Environment and Natural Resources Trust Fund) appropriated funds to implement CREP; and 2. Work with USDA FSA and NRCS to develop CREP processes, guidelines, eligibility, environmental benefits scoring and sign-up procedures for the CREP; and 3. Plan and conduct a CREP Outreach and Information campaign in conjunction with FSA and other local, state and federal agencies and partners; and BWSR Meeting Minutes January 25, 2017 Page 6
4. Work with USDA FSA to select CREP applications for approval based on CRP and RIM eligibility, RIM Environmental Benefits and available federal and state resources; and 5. Utilize BWSR Board Resolution 13-109, Standard Easement Payment Rates, or its successor, as the basis for the total MN-CREP land acquisition payment to landowners and make the RIM portion of the total payment. 6. Make payments to land owners to cover the costs of restoration that are not covered by USDA. Tim stated that the landowner will sign a 15-year CREP contract and a perpetual RIM easement ** agreement. Discussion followed. Moved by Gene Tiedemann, seconded by Jack Ditmore, to authorize 17-14 staff to implement CREP as presented. Jack stated the importance of consistency in the Resolution, Capitol Investment should be listed rather than Improvement. Motion passed on a voice vote. AGENCY REPORTS Minnesota Pollution Control Agency (MPCA) Terry McDill reported that MPCA recently made new online services available for access to apply for permits, submit regulatory data and information for compliance requirements, and pay fees and invoices. UPCOMING MEETINGS Next BWSR Meeting, March 22, 2017, St. Paul Acting Chair VanAmburg adjourned the meeting at 12:38 PM Respectfully submitted, Gerald VanAmburg Chair BWSR Meeting Minutes January 25, 2017 Page 7