MINUTES OF THE REGULAR MEETING OF
THE MINNEHAHA CREEK WATERSHED DISTRICT
BOARD OF MANAGERS
October 27, 2011

CALL TO ORDER

The regular meeting of the Minnehaha Creek Watershed District Board of Managers was called to order by President James Calkins at 7:00 p.m. at the District offices, 18202 Minnetonka Boulevard, Deephaven, Minnesota. 

MANAGERS PRESENT

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

MANAGERS ABSENT

None.

OTHERS PRESENT

Eric Evenson, District Administrator; David Mandt, District Operations Manager; Leslie Yetka, District Education Manager; James Wisker, District Planner/Program Coordinator;  Matt Norton, District Land Conservationist; Steve Christopher, District Regulatory Program Manager; Luke Schwitzer, District Compliance Officer; Renae Clark, District Projects Manager; Michael Panzer, District Consulting Engineer; Chuck Holtman, District Counsel.

MATTERS FROM THE FLOOR

None.  

APPROVAL OF AGENDA

It was moved by Manager Shekleton, seconded by Manager Keeley to approve the agenda with the addition of item 11.7 concerning the delegation of land conservation program manager authority to the District Planning/Program Coordinator.  Upon vote, the motion carried 7-0.

CONSENT AGENDA

Approval of October 13, 2011 minutes (item 5.1) and bylaws revision Item 7.3) moved to action agenda.  It was moved by Manager Casale, seconded by Manager Shekleton to approve the remaining consent agenda items consisting of the checking (checks 31138 through 31246 in the total amount of $484,162.68), petty cash and surety registers; Permit 11-239, Dutch Lake (DL-3) project; and the following:

Resolution 11-093, Minnesota Waters contract renewal:

 

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers authorizes the District Administrator to enter into a contract not to exceed $39,450 with Minnesota Waters to continue the Watershed Association Initiative;

BE IT FURTHER RESOLVED that the Minnehaha Creek Watershed District Board of Managers authorizes the District Administrator to distribute funds not to exceed a total of $5,000 to citizen groups according to the parameters set in the Watershed Association Initiative Mini Grant Program;

BE IT FINALLY RESOLVED that the District Administrator is authorized to sign necessary documents to carry out the Watershed Association Initiative, pending approval by the District Attorney of form and execution.

Resolution 11-095, Records Management and Retention Policy update:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers approves the update to the Records Management and Retention Policy.

Resolution 11-096, Policy and Protocols for Permit Fees, Financial Assurances and Abandoned Property:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers approves the Policy and Protocols for Management of Permit Fees, Financial Assurances and Abandoned Property.

Resolution 11-097, Project Easement, Dutch Lake (DL-3) Project:

NOW, THEREFORE, BE IT RESOLVED, the MCWD Board of Managers authorizes the Board President, upon advice of counsel, to sign, accept, and record the easement at 6800 Game Farm Road and sign all necessary documents and undertake all such actions required to do so.

BE IT FURTHER RESOLVED that signage will be used to mark the easement area.

Resolution 11-098, Big Island Management Plan:

NOW THEREFORE, BE IT RESOLVED, that the Board of Managers approves the Big Island Management Plan.

Upon vote, the motion carried 7-0.

REGULAR AGENDA 

Committee and Task Force Report

Manager Calkins noted that the Violations Committee meeting scheduled for the afternoon had been postponed.  It was moved by Manager Blixt, seconded by Manager Keeley to extend by 60 days, per Minnesota Statutes §15.99, the time for District action on Permit 11-291 to provide more time to review the application and pursue a stipulation.  Upon vote, the motion carried 7-0. 

Manager Shekleton advised that the Personnel Committee met to discuss the structure of the land conservation program.  The committee has developed a proposal under which the planner/program coordinator will assume a leadership role over lower-watershed land conservation activity, with the land conservationist focusing on pending transactions, conservation plans and restoration work in the upper watershed.  District Planner Houdek would move to a higher-level planning role and a lower-level planner would be hired.  The District Operations Manager would oversee Cold Storage facility management, and the pending administrative assistant position would be changed from half to full-time to assist Mr. Mandt.  The budget effect would be negligible. 

Manager Keeley emphasized the importance of marketing and disposing of properties that the District does not intend to retain.  Manager Casale remarked that this task would fall primarily to the District’s consultants.  Mr. Evenson added that the proposed changes would allow Mr. Wisker the opportunity to manage the District’s consultants.  He noted that the proposal is designed for a general present winding-down of land conservation acquisition activity and if the Board decides instead to extend spending, the proposal would be returned to the Personnel Committee. 

It was moved by Manager Blixt, seconded by Manager Keeley to amend the agenda to add the Personnel Committee recommendations as new item 12.2.  Upon vote, the motion carried 7-0.

Manager Blixt reported that the Citizens’ Advisory Committee (CAC) heard a presentation from Greg Nybeck, Executive Director, Lake Minnetonka Conservation District, concerning a survey of launches from Lake Minnetonka public accesses.  Gray’s Bay and Maxwell Bay constitute 53 percent of all launches.  The CAC also heard an urban corridor update. 

Manager Keeley remarked that launches at North Arm and Spring Park constituted another 19 percent of launches and therefore are not insignificant.  Manager Olson added that there are about 10,000 boats in the lake at private docks, moorings and marinas.  Manager Calkins concluded by noting that the next CAC meeting is scheduled for November 16, and that he will be the Board representative.  The topic will be the Cynthia Krieg grant program. 

Manager Keeley reported on the Metro MAWD meeting, which included a tour of the District’s Methodist Hospital project and a report by Mr. Wisker on the District’s recent projects.  Mr. Evenson was also present and reported on a Total Maximum Daily Load (TMDL) update from the Pollution Control Agency and a Department of Natural Resources (DNR) report on its reorganization of Fisheries and Waters Divisions.  There was a further update on the Hennepin County governance study, remarks that aquatic invasive species will be a legislative issue for the Minnesota Association of Watershed Districts and a report by Jill Crafton concerning the Upper Mississippi TMDL and its effect on metropolitan watershed districts.

Manager Keeley reported that she and Manager Casale attended the Bushaway Road task force meeting this week along with some 20-25 other people.  The residents appear to be okay with Hennepin County’s process but are not pleased with the loss of visual resources along the road, the proposed fencing on the causeway, tree loss and intrusion on property lines.  Manager Casale noted that the road right-of-way is broader than people tend to think, and residents were urged to obtain surveys to understand at the earliest time where their property lines are.  He noted that the design of the railway span has been improved by lowering the railroad grade by six feet, allowing the bridge to be lowered by two feet and minimizing grade changes on the road, tree removal and retaining wall heights.  Manager Casale concluded by noting that District representatives communicated that they will await a design and then work with that design to maximize stormwater management opportunities.

Manager Calkins reported on behalf of the Building Committee that tours of the buildings and properties designed by the selected firms will occur on November 5 from 8:00 a.m. until noon and November 13 from 1:00 p.m.to 5:00 p.m.  Mr. Evenson noted that special meeting notice will be posted. 

Manager Calkins stated that the Rules Committee will meet on November 29, 4:00 p.m., at the District Offices.

October 13, 2011 Minutes

It was moved by Manager Casale, seconded by Manager Keeley to approve the minutes.  Upon vote, motion carried 7-0.

(Managers Keeley and Casale left the room at this time.)

Bylaws Revision

Manager Blixt proposed an additional sentence for the bylaws stating that if a manager misses three consecutive meetings, the Board may so advise that manager’s appointing county board of commissioners. 

It was moved by Manager Blixt, seconded by Manager Miller to adopt the revised bylaws with the additional sentence and with deletion of the sentence stating the present District address.  Upon vote, the motion carried 5-0 as follows:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers approves the update to the Minnehaha Creek Watershed District Bylaws.

ACTION ITEMS

Dutch Lake (DL-3) Filtration Project Contract Award

Ms. Clark distributed a revised resolution 11-099 awarding the contract to Stocker Excavating as the low bidder.  Mr. Panzer stated that the District engineer finds Stocker Excavating to be a responsible bidder. 

It was moved by Manager Miller, seconded by Manager Olson to adopt the revised resolution as follows:

NOW, THEREFORE, BE IT RESOLVED, the MCWD Board of Managers awards the contract for construction to Stocker Excavating in the amount of $211,607.50 and authorizes the Administrator to execute a construction contract for the DL-3 Filtration Project and to return and otherwise administer bid bonds in accordance with the terms of the request for bids; and

BE IT FURTHER RESOLVED that the MCWD Board of Managers levy additional funds in 2013 to cover additional project costs, and

BE IT FURTHER RESOLVED that the MCWD Board of Managers establishes a project construction budget in the not-to-exceed amount of $232,607.50 and authorizes the District Administrator, in his judgment and on the recommendation of the construction manager, to authorize change orders obligating the District up to that amount; and

BE IT FINALLY RESOLVED that the MCWD Board of Managers authorizes the Administrator to issue a formal notice to proceed to Stocker Excavating on advice of counsel, receipt of a signed contract and required sureties and insurance documentation.

Responding to Manager Calkins, Ms. Clark affirmed that staff is awaiting the DNR water appropriations permit and that it may come with an annual user fee.  In that case, Ms. Clark stated, staff would return to the Board for approval. 

By unanimous consent, the main motion was amended to provide for the contract award but to condition issuance of the notice of award on District acceptance of the DNR permit. 

(Managers Keeley, Casale returned at this time.)

Responding to Manager Calkins, Mr. Panzer stated that the assisted filtration bed is an experimental technique and is estimated to require replacement of the iron filings in about ten years, at perhaps one-half of the original project cost.  The estimate includes revegetation cost.  However, the project will be designed so that the District can simply add iron rather than fully replacing the bed.  Mr. Panzer said that these systems have only been operating for a year or two so there is not an operating history. 

Upon vote, the motion carried 7-0.

Contract Award, Stormwater Pond Maintenance at Twin Lakes Pond, Southwest Calhoun Ponds, Gleason Lake

 Ms. Clark distributed a revised resolution 11-100 proposing to award the contract to Sunram Construction as the low bidder.

Manager Casale asked whether maintenance would ameliorate the odor that residents have reported at Twin Lakes.  Ms. Clark replied that the odor issue was somewhat addressed this season through the use of sphagnum moss, but she is not sure that basin maintenance itself will affect odor.  Manager Casale also asked whether Sunram is the contractor that fell through the ice during the Big Island work.  Ms. Clark affirmed that but noted that Sunram since has done other projects satisfactorily for the District.

It was moved by Manager Miller, seconded by Manager Shekleton to adopt the revised resolution as follows:   

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby awards the contract for construction to Sunram Construction for a not-to-exceed amount of $336,358, and authorizes the Administrator to execute a construction contract for the stormwater pond maintenance project and to return and otherwise administer bid bonds in accordance with the terms of the request for bids;

BE IT FURTHER RESOLVED that the MCWD Board of Managers levy additional funds in 2013 to cover additional project costs, and

BE IT FUTHER RESOLVED, that the MCWD Board of Managers establishes a project construction budget in the not-to-exceed amount of $336,358 and authorizes the District Administrator, in his judgment and on the recommendation of the construction manager, to authorize change orders obligating the District up to that amount; and

BE IT FURTHER RESOLVED that the MCWD Board of Managers authorizes the District Administrator to issue a formal notice to proceed to Sunram Construction on advice of counsel, receipt of a signed contract and required sureties and insurance documentation.

and to direct staff to move forward with the intention of doing all of the maintenance this season. 

Manager Blixt asked as to the cost impact of the polyaromatic hydrocarbons in the sediments.  Mr. Panzer replied that the need for special disposal increases contract price by about $70,000.  Manager Blixt asked if any District cities are regulating these coal tar- based driveway sealants.  Mr. Evenson said that the Minnesota Stormwater Coalition presently is collecting data on municipal regulation.   Manager Miller noted that the extensive street remilling by the City of Minneapolis could be contributing.  Manager Blixt asked that the Board discuss this issue on a future agenda.  Responding to Manager Miller, Mr. Panzer said that the District reviews manifests to track the contractor’s proper disposal of sediment.  Upon vote, the motion carried 7-0.

Final Design, Chelsea Woods/Chelsea Mews Stream Restoration Project

Ms. Clark distributed a revised resolution 11-101 for Board approval of final design.  She advised that the project budget is slightly over $400,000.

It was moved by Manager Miller, seconded by Manage Keeley to adopt the revised resolution as follow:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers approves the design for the Chelsea Woods / Chelsea Mews Stream Restoration Project and authorizes the District Engineer at the request of the City of Plymouth and on concurrence of District staff to make minor modifications to the design thereby not substantially changing the scope or budget of the design, and

NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Minnehaha Creek Watershed District Board of Managers authorizes the Board President, upon advice of counsel, to sign, accept, and record an easement from the Chelsea Mews Association and sign all necessary documents and undertake all such actions required to do so.

NOW, THEREFORE, BE IT FINALLY RESOLVED, that the Watershed District approval of the final plans and authorization to solicit public bids for construction is contingent on the City of Plymouth review of and concurrence in the final plans pursuant to the Cooperative Agreement.    

Upon vote, the motion carried 7-0.

Demolition and Removal of Structures on District Property

Ms. Clark distributed revised resolution 11-102.  She reported that two quotes have been received for demolition on the Barkus property and two quotes has been received for demolition on the Diercks and Halverson properties, with one more expected.

Manager Olson asked whether it would make sense to include the drain tile breaking within the Halverson demolition scope of work.  Mr. Norton replied that the Districts conservation plan indicates waiting two years to break the tile in order to establish thatch and limit cattail establishment. 

It was moved by Manager Miller, seconded by Manager Shekleton to adopt the revised resolution as follows:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers authorizes the District Administrator, on advice of District counsel, to take all actions required to accomplish demolition and removal of identified structures on three District properties including, but not limited to, entering into agreement(s) with the contractor(s) identified above and expenditure of funds with a total not-to-exceed amount of $75,700.

Upon vote, the motion carried 7-0.

2011 Annual Audit

Mr. Evenson presented resolution 11-103 engaging HLB Tautges Redpath to perform the District’s 2011 audit.  He noted that the process is being initiated earlier this year to meet a Wells Fargo requirement to complete the audit by March 31, 2012. 

It was moved by Manager Keeley, seconded by Manager Miller to adopt the proposed resolution as follows:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District Administrator to sign the attached letter of engagement with HLB Tautges Redpath for auditing services for the year ending December 31, 2011, and with the provision that the audit be completed and submitted to the MCWD Board of Managers no later than March 31, 2012.

Upon vote, the motion carried 7-0.

Land Conservation Program Manager Authority

Mr. Evenson noted that certain authority to manage consultants and make commitments to external parties is vested specifically in the Land Conservation Program Manager, but that Mr. Ten Eyck is departing and the District may not retain a position with that title.  Accordingly, he asked that the Board by motion designate a position to exercise the authority formally invested specifically in the Land Conservation Program Manager.

It was moved by Manager Miller, seconded by Manager Shekleton that on Mr. Ten Eyck’s departure, all authority to bind the District with respect to external parties presently vested specifically in the Land Conservation Program Manager would be vested in the Planner/Program Coordinator.  Upon vote, the motion carried 7-0.

DISCUSSION ITEMS

Land Conservation Direction/Financing

Mr. Evenson introduced the discussion by noting the several spending limits under which the land conservation program presently is operating.  The first is a $20 million limit for financing through Hennepin County bonds under the 2006 loan agreement; the second is $36 million, which is the total authorized spending under the District’s watershed management plan; and the third is $42 million, which is the amount of capital spending that can be supported through a $2.5 million annual levy that includes debt service.  Manager Miller added that for planning purposes, the District should account for funds it may receive from sale of properties.  Mr. Norton noted that to date, the District has resold just one property at $720,000.

Manager Blixt asked as to the expected timing of District sales of excess lands.  Mr. Evenson replied that apart from the cold storage property, the District is not expecting substantial funds to come in from disposition of its land. 

Mr. Evenson reviewed four options for spending in the near and medium terms.  The staff recommends “Option 4,” the most modest option, which maintains the existing $36 million spending limit and does not require a watershed plan amendment.  Manager Shekleton offered that Option 2, at $40 million, appears to allow the District to fully achieve its stated program goals.  Manager Miller added that Option 4 would require the District to prioritize its creek corridor acquisition activity given the present opportunities in that part of the watershed.

It was moved by Manager Keeley, seconded by Manager Casale to support Option 4 at this time.  Responding to Manager Calkins, Mr. Evenson clarified that restoration activity on District properties is funded from a different source.  Manager Calkins stated that restoration is important and should not be constrained by the limits being discussed.  He also stated while current economic conditions and political constraints need to be recognized, it remains true that land is now comparatively inexpensive.  He believes there is merit in completing the District’s original plan. He also urged that the District pay close attention to obtaining easements rather than fee title where that can achieve the District’s goals.  He also noted that if the District is to limit its acquisition spending that this also likely would prompt a levy reduction.  The Board recognized that this decision is for the present and may be revisited in the future.

Upon vote, the motion carried 7-0.

Staff Reorganization

Mr. Evenson again reviewed the Personnel Committee recommendation discussed earlier in the meeting.  He said that the reorganization was discussed at length by the staff management team before Personnel Committee review.  

It was moved by Manager Blixt, seconded by Manager Keeley to adopt the Personnel Committee recommendation.

Manager Calkins noted that if land acquisition activity ramps up in the future, another hire would be needed, with Board approval.  Manager Calkins also asked as to Mr. Mandt’s role in managing the cold storage property given that the District has retained the LaSalle Group as its property management oversight.  Mr. Evenson said that there will be a need for staff to closely oversee LaSalle to ensure that the District is on top of all issues concerning the cold storage facility, including finances.  He also noted that staff will need to provide the expertise to work closely with the City of Hopkins and plan the property for sale. 

Manager Calkins asked how Mr. Wisker’s focus will change, given his present close involvement in the corridor work.  Mr. Wisker reviewed the trend of his work, noting that he has already been distanced somewhat from planning due to the corridor work.  He said that for this reason, he has been relying on Ms. Houdek a lot more and that the reorganization would recognize this.  He also will be spending more time to coordinate with Target Corporation and other potential private partners on corridor water resource activity and preparation of the cold storage property for sale.  He noted also that a new 10-year planning cycle will be beginning before too long.  Mr. Evenson reiterated that the reorganization was accompanied by a fiscal assessment and that was presented to the Personnel Committee.  Manager Calkins asked that this information typically be included with the recommendation.

Upon vote, the motion carried 7-0.

Additional Items

Manager Blixt asked that a copy of the Painter Marsh bird survey be distributed to the managers.

Manager Blixt also remarked that she just received a postcard from the Minneapolis Park and Recreation Board (MPRB) starting a public process for Brownie Lake improvements and amenities.  Mr. Wisker said that the District had just received notice and contacted the MPRB to become officially involved. 

Manager Miller asked that staff look at the Minnesota Department of Transportation pond north of I-394 at Highway 100.  He said the pond is quite full and its function is in doubt.

ADJOURNMENT

There being no further business, the regular meeting of the Minnehaha Creek Watershed District Board of Managers was adjourned at 9:45 p.m.

Respectfully submitted,

Lee Keeley, Secretary