MINUTES OF THE REGULAR MEETING OF

THE MINNEHAHA CREEK WATERSHED DISTRICT

BOARD OF MANAGERS

June 9, 2011

CALL TO ORDER

The regular meeting of the Minnehaha Creek Watershed District Board of Managers was called to order by Manager Brian Shekleton at 6:50 p.m. at the District offices, 18202 Minnetonka Boulevard, Deephaven, Minnesota. 

MANAGERS PRESENT

James Calkins, Brian Shekleton, Richard Miller, Lee Keeley, Pam Blixt, Jeffrey Casale, William Olson.   

MANAGERS ABSENT

None.

OTHERS PRESENT

Eric Evenson, District Administrator; David Mandt, District Operations Manager;  Mark Ten Eyck; Land Conservation Program Manager; Matt Norton, Land Conservation Specialist; James Wisker, District Planner; Michael Panzer, District Consulting Engineer; Chuck Holtman, District Counsel.

MATTERS FROM THE FLOOR

None.

INTRODUCTIONs 

Mr. Evenson introduced District interns Trevor Born and Blake Wageman and volunteers Robert Little, Scott Haugen and Ian Olson.  They were welcomed by the Board.  Manager Miller asked whether the work of volunteers is properly documented for their educational and professional record.  Mr. Evenson said he would make sure of that and would bring to the Board a proposed policy to recognize volunteer work. 

APPROVAL OF AGENDA

It was moved by Manager Keeley, seconded by Manager Olson to approve the agenda with removal of action on the June 2, 2011 minutes.  Upon vote, the motion carried 7-0.

MINUTES

It was moved by Manager Casale, seconded by Manager Miller to approve the minutes of May 5 and May 26, 2011.

BOARD, COMMITTEE AND TASK FORCE REPORTS

Mr. Evenson reported that Managers Calkins, Casale and Keeley met with the mayors and administrators of the Cities of Orono and Wayzata on June 8 as part of the effort to advance relationships with cities.  The city representatives were particularly interested in the District’s cost-share programs and its capital programs addressing volume control.  There was a request for more outreach regarding the Long Lake Creek corridor study and a suggestion of a Total Maximum Daily Load (TMDL) forum for policy makers to improve their understanding of the roles of the District and the cities.

Manager Calkins added that Orono Mayor McMillan noted that the TMDL just concerns phosphorus but that people have a broader interest.

Manager Shekleton reviewed the scheduled meetings on the agenda.  In addition, another Hydrodata committee meeting is scheduled for June 29, 4:30 p.m., at the District offices and the awards committee will meet on July 7 before the regular Board meeting.

Mr. Evenson noted that the Minnetonka City Council last Monday passed a site design resolution corresponding to the resolution previously passed by the District Board of Managers.

Manager Olson reported that District staff Kelly Dooley, Renae Clark and Yvette Christianson made a presentation yesterday to the Lake Minnetonka Conservation District concerning the District’s 2010 water testing results and the recent high water.  He said that all reports were received very favorably and that attendees were particularly interested in Ms. Clark’s review of the calculations governing management of the Gray’s Bay outlet.  He also noted that with the financial assistance of the District, youth have harvested about 3,600 carp from Lake Pierson and Wasserman Lake.  The carp are being taken to a nearby pig farm.  He noted also that last winter, Don Geyer harvested a substantial number of carp from Halsted Bay.  The carp were given to Hmong for freezing and harvesting. 

Responding to Manager Miller, Mr. Evenson said he was not sure how many carp there are in the two lakes but that staff did assess the consistency of the program with District goals.  He noted that Lake Pierson is the headwaters for Six Mile Creek.

BOARD REVIEW ITEMS

Legislative Update

Joel Carlson appeared and reviewed the status of water issues in the legislative session.  He noted that Governor Dayton has vetoed the environment finance bill, which would have imposed cuts of 30 percent on the Board of Water and Soil Resources (BWSR) and 67 percent on the Minnesota Pollution Control Agency (MPCA).  He noted this would be in addition to the 15 to 17 percent cut required across all state agencies in the next biennium under a separate bill. 

He reported that the environmental policy bill has passed.  This bill includes the aquatic invasive species measures, except for the provision allowing the enforcing local agency to retain fines, which is contained in the vetoed finance bill.  He noted that the legislature has no interest this session in the red lake/green lake program. 

Mr. Carlson noted that no real watershed district policy issues are making progress this session.  He said there is general support for including watershed district levies as a separate line item on the tax statement.  This provision as well was in the finance bill, but could return. 

Manager Shekleton asked as to the effect of the shutdown on District activities.  Mr. Evenson replied that the Upper Lakes TMDL would pause, but otherwise he would see no substantial effect on District activities.  The exception would be when assistance is needed from the Technical Evaluation Panel on wetlands matters or a state permit is needed for a District project.

2010 Annual Audit

Mark Gibbs appeared.  He reported that he met with the audit committee just before the meeting and reviewed the audit with the Board.  Tautges Redpath has provided a “clean” audit statement.

Manager Miller noted discussion on page 24 of the audit report concerning the District’s failure to have policies on credit risk, interest rate risk, concentration of credit risk and custodial credit risk.  He questioned whether the District should have its financial advisor develop policies.  Mr. Gibbs replied that that is not an auditor’s recommendation.  He does not believe these policies are essential for the District and they are not needed for legal compliance.  Manager Casale noted that the statement under credit risk indicates that the District follows state statutes.  He asked whether a similar statement could be included under the other three headings.  Mr. Gibbs replied that the District does not engage in activities that would implicate all of these policies; for example, it does not have outstanding bonds. 

It was moved by Manager Miller to have the District’s financial advisor develop policies as necessary to eliminate the statements in the audit.  Manager Casale suggested that, alternatively, the auditor could adjust the language so it does not suggest that there is a deficiency.  Mr. Gibbs said that he could provide policies that cities have put into place.  Manager Shekleton seconded the motion.  Manager Calkins advised that the audit committee has accepted the proposed management responses on audit findings 2010-1 and 2010-2.  Mr. Gibbs clarified that he will provide policies that, if adopted, would suffice to allow the statements to be removed.  Upon vote, the motion carried 7-0.

It was moved by Manager Calkins, seconded by Manager Keeley to adopt resolution 11-053 resolving as follows:

BE IT RESOLVED that the MCWD accepts the 2010 Annual Financial Audit and releases it [to] the Minnesota State Auditor and the Board of Water and Soil Resources.

BE IT FURTHER RESOLVED the following Project Funds excess balances will be transferred within the Management Planning Fund or other designated funds effective December 31, 2010: 

Manager Miller stated that he is pleased with the audit process and believes it shows that the managers should have faith in the District’s financial management.  Manager Olson added that Mr. Gibbs offered the view that the District assisted in the audit in a transparent fashion and that all department managers reporting to the administrator were very responsive.  Mr. Gibbs added that the District has well-thought-out financial management procedures.  Upon vote, the motion carried 7-0.

Preliminary Concepts, Reach 20 Remeander

Mr. Wisker presented design concepts for work along Minnehaha Creek within Reach 20 upstream from Meadowbrook Golf Course.  He advised that the City of St. Louis Park has received $350,000 in Clean Water Legacy funds toward the project.  The city would like the District to manage the design and construction and would provide reimbursement.  Mr. Wisker noted that the city does not yet have the grant funds.  Manager Miller offered the view that the work should not be delayed even if the funds are not in hand. 

Responding to Manager Shekleton, Mr. Wisker advised that Interfluve has carefully designed the sinuosity of the meanders as appropriate for the topography and for canoeing and related recreational use as well.  He noted that Interfluve is a national expert on stream remeandering.  

Mr. Wisker also advised that the District has done sediment sampling at three locations according to a plan approved by the MPCA.  The results currently are being examined.  The MPCA has advised that a State Disposal System permit is not required. 

Mr. Wisker noted also that there is a concept for two canoe launches, which probably will be city owned.  Manager Shekleton asked about the canoe launch materials to prevent rotting.  Mr. Evenson added that he would like to see design options include handicapped accessibility. 

Manager Miller emphasized the need to ensure that city ownership of the land continues.  Mr. Wisker advised that the trails would be owned by the city.  He added that the city would like bituminous trails because it wishes to maintain them during the winter.  Therefore, they need to be out of the immediate riparian zone.  He reviewed conceptual ideas for the trails and creek crossings.  He suggested that the city trail work need not be concurrent with the District’s construction but that the trail right-of-way should be determined as a part of the overall project design.  Manager Casale added that since the District’s mission has a recreational component, the District could include boardwalk through the wetland as a supplemental loop trail to be built and maintained as an educational component and connected with city trail. 

Mr. Wisker added that the final feasibility study will include final hydraulic modeling.  The key is not to change the flood stage.  Mr. Wisker also reviewed stormwater flow patterns and plans to use the design to provide stormwater benefits.  Manager Casale asked whether stormwater treatment facilities will appear as natural wetland and whether they will need periodic dredging.  Mr. Wisker replied that periodically the basins will need to be dredged and re-vegetated, which is unavoidable, but that they should appear as part of the natural landscape.

Mr. Wisker then reviewed design options for stormwater treatment, wetland restoration and trails on the Weis property.  Manager Casale asked why it is necessary to place the trail across a berm if it is boardwalk.  Mr. Wisker replied that it isn’t necessary.  Manager Casale asked whether grit chambers incorporated within the road right-of-way stormwater treatment system could be used as interceptors before water is discharged to the stormwater basin.  Mr. Wisker replied that District staff are talking with Hennepin County about incorporating such options in the Excelsior Boulevard reconstruction.

Manager Miller stated that the proposal is exciting and offers many intersecting water resource benefits at the center of the urban corridor.  He said he is not concerned with how quickly the project is done, and that it requires careful coordination.  Mr. Ten Eyck added that the land conservation program will remain involved in the process.

Mr. Wisker reviewed upcoming project activities.  These include meetings with BWSR, the Minnesota Department of Natural Resources, the U.S. Army Corps of Engineers, the Hennepin Conservation District, the Hennepin County Transportation Department, the Minneapolis Park and Recreation Board, the City of St. Louis Park and its Parks Commission, and a community meeting.   He is looking toward August for a public hearing to order the project in advance of the 2012 levy certification, with design and permitting to occur between September and November.  Staff is reviewing options to phase the work.

Closed Session- Offers on Property and Attorney-Client Consultation on Litigation

It was moved by Manager Shekleton, seconded by Manager Calkins to go into closed session to discuss three items: first, a potential offer to purchase property at 1003 Wildhurst Trail in Orono; second, a potential offer to purchase property at 5902 Sunnyfield Lane in Minnetrista; third, potential settlement of a claim regarding relocation benefits for former tenants of the Blake Road property in Hopkins as attorney-client discussion with District legal counsel.  Upon vote, the motion carried 7-0.  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 10:45 p.m.

Respectfully submitted,

Lee Keeley, Secretary