MINUTES OF THE REGULAR MEETING OF

THE MINNEHAHA CREEK WATERSHED DISTRICT

BOARD OF MANAGERS

July 9, 2009

CALL TO ORDER

The regular meeting of the Minnehaha Creek Watershed District Board of Managers was called to order by President James Calkins at 6:55 p.m. at the District offices, 18202 Minnetonka Boulevard, Deephaven, Minnesota. 

MANAGERS PRESENT

James Calkins, Pamela Blixt, Richard Miller, Lee Keeley, Jeffrey Casale, Mike Klingelhutz.

MANAGERS ABSENT

Brian Shekleton.

OTHERS PRESENT

Eric Evenson, District Administrator; Renae Clark, District Projects Manager; Mark Ten Eyck, District Land Conservation Program Manager, Ellen Heine, District Land Conservation Specialist; Natalie White, District Technician; Mike Panzer, District Consulting Engineer; Chuck Holtman, District Counsel.

MATTERS FROM THE FLOOR

None.

APPROVAL OF AGENDA

It was moved by Manager Blixt, seconded by Manager Klingelhutz to approve the agenda with the addition of the approval of the June 11, 2009 minutes (consent agenda), approval of City of Plymouth local plan MOU deadline extension, Minnehaha Glen project update and discussion of water management questionnaire from the Hubert Humphrey Institute; and movement of the Rolling Hills item from 10.5 to 10.1.  Upon vote, the motion carried.

CONSENT AGENDA

It was moved by Manager Keeley, seconded by Manager Klingelhutz to approve the consent agenda with the exception of the July 2, 2009 minutes, consisting of the June 11, 2009 minutes.  Manager Blixt asked that the time of Adjournment on the June 11, 2009 minutes be changed to 10:30 p.m.  Upon vote, the motion carried.

REGULAR AGENDA

Committee Reports

 

Manager Calkins noted that the Citizens’ Advisory Committee will meet on July 15, 2009, and that Manager Casale is the Board representative for the meeting.  Manager Blixt noted that she is the August Board representative. 

Manager Casale advised that the Technical Committee will meet on July 21, 2009.

Minnehaha Glen Project Update

Ms. Clark reminded the Board that the project was last discussed on June 25, 2009.  On June 26, District representatives met with the St. Paul District Engineer, Colonel Jon Christensen, and USACE staff.  Colonel Christensen advised that the purpose of the meeting was to gather information and encouraged all present to a spirit of partnership.  USACE staff advised that the upper trail work is not within Section 404 jurisdiction and can proceed without threat of an enforcement action, though subject to cultural resource review.  The USACE also agreed to review an interim measures plan, which the District submitted on July 2.  At the meeting, USACE staff also presented a decision memorandum delineating the “permit area” subject to cultural resources review.  The District has provided a response to that memorandum as of this evening.

Ms. Clark further reported that construction is on hold except for upper trail work.  Work is not active on the upper trail due to Minneapolis Park and Recreation Board concerns about the stability of the rock above the trail.  An independent geologist has examined the area and MPRB and District representatives will meet next week to review the concerns.

Manager Casale observed that the purpose of the upper trail is to consolidate the “unofficial” trail use that is causing erosion, therefore the trail work should reduce the threat of erosion and instabilities.  Ms. Clark replied that the District engineer agrees with this reasoning and that this will be discussed.

Manager Casale asked whether the limestone retaining wall planned for the area would affect the cultural resources issues.  Mr. Evenson replied that this is somewhat unpredictable and depends on the view of the State Historic Preservation Office. 

Ms. Clark noted that a public hearing on the alleged District violations is scheduled for August 11.

July 2, 2009 Minutes

Manager Casale reviewed his proposed revisions, which were distributed earlier in the meeting.  It was moved by Manager Casale, seconded by Manager Miller to approve the minutes as revised.  Upon vote, the motion carried.

ACTION ITEMS

Potential Sale of 10-Acre Lot on Rolling Hills Property

Mr. Ten Eyck briefing reviewed the history of the District’s acquisition and its attempt to develop the property in partnership with Doug Hoskins.  He noted that Mr. Hoskins has produced a potential buyer who has offered $400,000 for a 10-acre lot.  The lot would encompass the previous three-lot development footprint of +/- seven acres proposed under the failed Planned Unit Development and add some three acres to meet the City of Minnetrista minimum lot size requirement.  Some part of the three acres would be burdened with a conservation easement in favor of the District.

Mr. Hoskins addressed the Board.  He explained that because of his personal financial interest in this property, he has elected to work with this potential Buyer as a Facilitator and does not have an Agency relationship with either the Buyer or the District.  He represented that he had all three lots of the previously proposed subdivision sold at one time, but that delays and economic realities changed those plans.  He reviewed for the Board that the existing purchase agreement between the District and him is for $350,000.  The present offer is $400,000 with no park dedication fee, representing a gross gain to the parties of $75,000.  Mr. Hoskins stated that he would like to recover his expenses, which include $6,850 in city fees, about $23,000 in fees to Otto Associates and about $5,000 in fees to Schoell Madson.  In addition, as compensation for producing this Buyer, he is asking to be paid a six percent real estate brokerage commission.  He stated that he has drafted a purchase agreement, signed by the Buyer, which is accompanied by an earnest money check. 

Responding to Manager Casale, he clarified that he does not have an Agency contract with this potential Buyer, but they have walked the site several times.  He noted an issue concerning slope that would require a driveway to be in what the District is suggesting as a conservation easement area.  The Buyer has suggested a conservation easement area of about 1.5 rather then 3 acres.  He would like to keep the whole area in prairie vegetation, but would like flexibility.

Manager Miller remarked that the surrounding 28 acres of conservation land would constitute a substantial benefit to the buyer.  Mr. Hoskins noted that the revised proposal would reduce the impact on the land from the previously proposed three lots, six septic sites and seven-ton road.  Mr. Evenson asked whether the buyer would allow the District to access its property or commit to building with conservation measures.  Mr. Hoskins said this probably would be the case.  He noted that the buyer also would prefer some assurance that the District’s land would not change in a way that impairs the setting or the view.  Manager Casale asked whether the buyer would accept a deed restriction on further disturbance regarding hardscape limitations and particularly tree preservation at the entrance to the property.  Mr. Hoskins replied that, to his understanding, the buyer would commit to no horses and use of the property only as a single-family residence.  Signage, fencing or similar demarcation at the property boundary probably would be acceptable.  The buyer also would like assurances regarding the intensity of public use on the conservation land.  Mr. Evenson remarked that the District invested significantly in the restoration and would not plan to provide for active public use of the land.  He suggested that Spring Peeper meadow at the University of Minnesota Arboretum would be a point of comparison.

2010 Work Plan/Budget for Operations and Maintenance (O&M)

Mr. Evenson introduced the subject by noting staff’s effort to work within Board guidelines that the levy not be increased from 2009.  Ms. White distributed a revised work plan providing for a levy of $129,600.   She noted that maintenance activity at Lakeside Pond in Wayzata and Twin Lakes Park is estimated at $125,000.

Ms. White reviewed the program elements including project maintenance; manual/database update and development; and training/equipment.  She noted that staff would intend to contract out database development.  Mr. Evenson added that database development would include providing for remote data entry.

Manager Casale emphasized that this activity should be coordinated with the overall District information technology initiative.  Responding to Manager Casale’s question, Ms. Clark noted that the $10,000 budget line is based on a Wenck quote for an O&M update.  The document then would be rolled to an electronic format similar to the database structuring effort of the regulatory department.

Manager Blixt asked about the $5,000 budget for ditch maintenance.  Mr. Evenson clarified that this is the cost just for necessary inspections.  If maintenance is required, the District would determine how to fund it.  Responding to Manager Calkins, Ms. White said that the $60,000 budget for vegetation management is the annual cost under the five-year contract recently awarded by the Board.

It was moved by Manager Casale, seconded by Manager Keeley to approve the workplan as revised including the provision that the proposed database development would be coordinated with the IT Committee’s overall District information technology initiative.  Manager Klingelhutz asked whether buckthorn management on Big Island is under a conservation management plan.  Ms. Clark replied that a plan is not in place.  The line item is a placeholder for such a plan and reflects staff’s desire to protect the existing investment in buckthorn management.  Upon vote, the motion carried.

2008-09 Land Conservation Program Report

Mr. Ten Eyck reviewed the written report included in the meeting packet.  He reported that the program had success at concentrating its acquisitions geographically, an effective land conservation approach.  Also, the Hennepin County financing mechanism has functioned smoothly.  The program also has made progress in developing partnerships both for education and in conservation development.  For next year, the program will focus on further improvements in outreach/networking; developing management plans; increasing the transaction level; clarifying policies for determining price; and implementing the program along the urban creek corridor. 

Manager Blixt asked about exploring legacy donations.  Mr. Ten Eyck responded that there is not a great deal of such activity and it tends to be handled by non-governmental land conservation bodies.  He suggested that many potential legacy donors also tend to have some level of distrust of government.

Mr. Ten Eyck reviewed the Chute/Minnetonka Orchards transaction that the program is exploring, under which the District would trade land in fee to Minnetonka Orchards in exchange for conservation rights on the Minnetonka Orchards property.  He noted that this effort would present certain challenges in defining easement terms and that he would report back to the Board.  The Board indicated that it is comfortable with the land swap concept, but it is important that the District receive proper value.  Manager Miller observed, in particular, that “educational opportunities” should not count for very much in a monetary sense. 

Mr. Ten Eyck noted that he wished to review with the Board developments concerning the Van der Steeg property.  It was moved by Manager Miller, seconded by Manager Blixt to review this matter in closed session at the appropriate time.  Upon vote, the motion carried.

Ms. Heine reviewed the Barkus and Rye properties located in the Painter Creek subwatershed.  Barkus is adjacent to the Waldera property and Rye is east of the Chute property.  Responding to Manager Calkins and Manager Casale, Mr. Ten Eyck noted the program decision to revisit the Broin and Samaritan Tire properties given the shift in the District’s urban creek corridor strategy since the prior evaluation.

Manager Calkins asked whether the District could acquire land under the land conservation program and subsequently use it as the site for something such as a stormwater treatment basin.  Mr. Holtman replied that the District’s watershed management plan establishes a process and criteria to be used for land conservation acquisitions and that it is a matter for the Board to protect the integrity of the program through conformance to the plan.  Beyond that, Mr. Holtman remarked, there are no legal constraints on the District’s ability to use its property for capital projects except as might result from Hennepin County financing.  Mr. Holtman noted that property could be acquired for a capital project outside of the land conservation program, provided that the potential use of the property was not unduly speculative.  Manager Calkins suggested a review of the land acquisition criteria to assess their appropriateness for reviewing lands within the urban creek corridor. 

Manager Miller asked about the status of the contamination investigation affecting the Gould property.  Ms. Heine replied that the Minnesota Pollution Control Agency has just obtained an updated report and will review to decide on the need for further action. 

Mr. Ten Eyck reviewed ideas to address the program’s ability to evaluate potential conservation acquisitions in the urban creek corridor on an equal footing with lands in the less developed parts of the watershed.  These ideas include eliminating the habitat criterion; adding to the Technical Advisory Committee (TAC) someone with an urban creek corridor base of knowledge and scoring for connectedness to “activity centers” such as recreational lands, transportation routes and hospitals.

Manager Casale would like to see how elimination of the habitat criterion would affect scoring of actual properties. The Board generally concurred in adding a creek corridor viewpoint to the TAC, however Manager Calkins expressed concern that all committee members should be objective and not there as “stakeholders.”  Manager Blixt supported the first two suggested changes, but was uncertain how the third suggestion would be implemented.  Manager Calkins cautioned against dismissing habitat considerations within the urban corridor.  He also noted the challenging issue of the higher cost associated with property right acquisitions in the urban part of the watershed. 

Mr. Evenson stated that he agrees with leaving the habitat criterion in play and suggested adding weight for certain urban water resource values.  He noted that a Minneapolis park has a higher level of use than a rural trail and the evaluation criteria should reflect that.  Manager Keeley recognized Manager Calkins’ concern about TAC objectivity but observed that having committee members with a range of experiences and expertise would expand the base of knowledge that the entire committee could bring to its work.

Manager Calkins stated that staff should prepare a recommendation to adjust the criteria and process to evaluate potential urban acquisitions fairly. 

Mr. Ten Eyck reviewed the status of consideration of the Weiss Builders property in St. Louis Park.  It was moved by Manager Miller, seconded by Manager Keeley to direct staff to obtain an appraisal for the potential interest in that property.  Upon vote, the motion carried.

Mr. Ten Eyck reviewed the 2010 workplan.  The plan would include focusing on the four geographical target areas; improving outreach and communications; coordinating with the planning department on capital projects; advancing efforts to develop partnerships; converting Hennepin County short-term notes for prior transactions into bonds; and aiming at a transaction level in the realm of $5 to $6 million.  Manager Casale observed that there are many ways to monitor opportunities and that the program should establish and develop those mechanisms.  Managers Miller and Keeley cautioned against focusing on the dollars spent as a measure of success.  Manager Casale clarified that the program goal is to acquire sound conservation and restoration opportunities within the target areas.  He would like periodic reporting of all properties the TAC has reviewed. 

Manager Calkins noted that the only way to address certain urban stretches in the upper part of Minnehaha Creek is to buy privately owned land or collaborate with cities during redevelopment.  Mr. Panzer noted that the District’s 2003 creek assessment includes a review of restoration opportunities.  Mr. Evenson confirmed that a consultant reviewing redevelopment opportunities within the creek corridor will present his report in the fall.

Mr. Ten Eyck reviewed the specific goals and strategies for the Dutch Lake, Urban Creek, Pearson Marsh/Lake Wasserman and Painter Creek target areas.

Gary Severson, a member of the public observing the meeting, stated that he is a teacher in Bloomington and remarked that, as a resident of Chaska, he has noticed the change in traffic patterns from the Waconia area to access the new Highway 212 that passes very near the southern edge of Lake Wasserman.  He noted that certain nearby property therefore may escalate in value.

Mr. Ten Eyck reviewed the land restoration work plan, with a focus on the Waldera, Chute, Johnson and Diercks properties. 

Manager Casale left the room at this time.

Ms. Heine reviewed the habitat restoration cost-share work plan.

It was moved by Manager Miller, seconded by Manager Keeley to approve the 2010 land conservation program workplan.  Upon vote, the motion carried 5-0.

Manager Casale returned at this time.

City of Plymouth Extension of Time to Execute MOU 

 

It was moved by Manager Miller, seconded by Manager Keeley to adopt Resolution 09-070 extending the deadline for MOU execution by 120 days.  Upon vote, the motion carried.

Hubert H. Humphrey Institute Questions

Manager Calkins reported that he and Mr. Evenson were interviewed by two Humphrey Institute researchers doing work for Hennepin County at the request of Joel Settles.  Manager Calkins said that these interviewers would be happy for other Board members to provide answers to the questions if they chose, but submittals must be in by July 17.  Manager Calkins remarked that the researchers were uncertain why Hennepin County is funding this effort.

Closed Session:  Van der Steeg and Rolling Hills Properties

It was moved by Manager Miller, seconded by Manager Casale to convene in close session to discuss offers and counteroffers concerning the Van der Steeg property in the City of Mound and the Rolling Hills property in the City of Minnetrista.  Upon vote, the motion carried, and the Board convened in closed session.

The Board reconvened in open session.

ADJOURNMENT

There being no further business, the regular meeting of the Minnehaha Creek Watershed District Board of Managers was adjourned at 11:20 p.m.

Respectfully submitted,

Lee Keeley, Secretary