210 North Havana, Spokane, WA  99202

Board Meeting Minutes

Tuesday, May 13, 2008

PRESENT     

Supervisors:                    Gerald Scheele, Randy James, Dixie Riddle, Jaki Shrauger and Mary Sullivan

Associate Supervisors:  Ed Kuhn        

SCCD Staff:                      Jim Armstrong, Rich Baden, Vicki Carter, Garth Davis, Walt Edelen, Jilla Harmon, and Ty Meyer.

Guests:                           Kyle Stephens, NRCS; Rich Edlund, NRCS; Ed Adams, WSU County  Extension; and Brian Werst, Koegen-Edwards, LLP.

Chair Scheele called the meeting to order at 5:32pm. Chair Scheele noted that while the agenda included an Executive Session, one would not be held, as a resolution would be made during the regular Board meeting instead.

PREVIOUS MEETING MINUTES

Minutes from the regular April 8, 2008, Board meeting had been previously distributed for review.

Motion RIDDLE/SHRAUGER to approve the April 8, 2008, Board meeting minutes as distributed.  Motion carried.

TREASURER’S REPORT

Randy James presented the Treasurer’s Report for May 2008.

Motion RIDDLE/SHRAUGER to approve the April Treasurer’s report, payroll checks #1193-1227, with voided payroll checks #1216,1219,1222, checks #27034-27127, and automatic withdrawal #999990, and May Account Payables in the amount of $154,921.84. Motion carried.

Public Comments

None

District Financial Report

Rich Baden gave a review of the District’s budget position as of May 2008 (1/3 of the way through the year) and reported that the District’s cash position at the end of April was $4,315,331.21.

Per Randy James’ earlier request, Rich distributed a SRF Loan Projection spreadsheet to the Board. Ty reviewed the report for the Board. The report is based on assumptions that we will continue to put out loans on the current $4 million loan we are operating on today.

It also assumes that we will put out an additional $2 million beyond the $4 million program. There are another $5 million in loan funds available, but we will only be able to access $2 million of that, as we will reach our cap on the assessment/loan ratio.

Another assumption that this scenario is based on is that we will not disburse any internal funds until we run out of funds from the Department of Ecology; this is so we will build up our reserve funds. This model shows that the Department of Ecology is completely paid off by September 2030.

WACD Budget Request

Rich Baden and Chair Scheele attended the March 26 Work Sessions in Ellensburg, and Rich had asked all departments to determine what money they anticipate needing for various projects.

Rich asked Garth Davis to discuss his forestry department budget request. Garth said that the largest amount of money requested was for FireWise assistance. He also asked for money to assist with the outreach and education program; to develop forestry plans; and to educate landowners on the best management practices for their forests.

Walt Edelen distributed a document regarding the Spokane Urban Runoff Greenway Experiment (SURGE) program.  This demonstration program, if successful, will provide Spokane with another tool for managing storm water in urban areas.

Walt said that the City has asked the District for help with technical assistance, and he said that we would be putting together a $30-40,000 contract for one year to provide technical assistance with storm water. Depending on how it goes the first year, we may continue to assist on a year-to-year basis.

Motion SULLIVAN/ JAMES to approve the WACD budgeting concept discussed in the Board meeting. Motion Carried.

DEPARTMENT REPORTS

Chair Scheele noted that staff reports had been previously received and reviewed by the Board.  He asked for any additional comments from staff members.

Jim Armstrong~ Communication & Special Projects

Jim reported that he participated in Farm Fair and the Junior Livestock Show. He said that Farm Fair had over 900 kids participate. Water Resources had their float available at the Fair and did presentations, as did Garth and Alan who put together a forestry booth.  Jim and Rich cooked breakfast for the Junior Livestock Show on Thursday morning.

He attended an Ag Bureau and Farm Forum meeting; and he was elected the Committee Chair for the Farm Forum.

Jim is working on the Vim Wright Stewardship Award for Farming & the Environment. He has received several nominations and is going through to make sure they all meet the criteria, and he will be scheduling farm visits.  The Stewardship Partners would like a presence on the east side of the state, and would like to partner with Farming & the Environment and open an office in Spokane. 

Jim and Ty will be going to the Bio-Ag tour on the Palouse on May 28, and then will begin the spring session of their direct seed survey on May 29. They have more than 200 points they would like to revisit, and then submit their date to WSU.

Kyle Stephens~ NRCS

Kyle reported that one of the biggest challenges for the soil survey is finding people to allow them to dig in their backyards to gather samples.

Kyle said that thanks to the District’s help they now have access to high-resolution imagery that will help with the survey.

Kyle said that he has hired Jason Flowers from the Spokane Community College for the seasonal forestry technician position to collect forestry data while mapping the city.

Ty Meyer~ Production Ag

Ty reported that he has received the Ag Pilot’s Direct Seed Mentoring Program approval documents from the Washington State Conservation Commission. The program will begin with Fall 2008 planting.

He also said that he and Jim Armstrong interviewed direct seed producers in the 15-inch or more rainfall area. Jim will be creating a presentation using the interviews and photos.

Walt Edelen~ Water Resources

Walt reported that the major accomplishment for the Water Resource department in April was the success of the Rockford project. 1,600 plants were planted and it was nice to tie the project into the Annual Meeting.

He said that we received the Hussman Fund grant of $25,000 for the Liberty Lake Shoreline project as well as the Centennial Grant to be used for more implementation.

HSC Bank contacted Walt regarding their Rebuilding Together Program, where 15 bank employees will go out for one day and complete a project. They have asked the Water Resource department for assistance, with the bank paying for the project.

Garth Davis~ Forestry

Garth reported that the majority of his time was spent on FireWise assessments and various street tree-planting projects. He was happy to announce that Ben Peterson, Water Resource Technician, had passed his arborist exam and is now a Certified Arborist.

Rich Edlund~NRCS

In addition to his written report, Rich reviewed the current projects and programs NRCS is working on. He talked about how much he appreciates working with the District and the other various partnerships NRCS has with other agencies. He added that there is still no Farm Bill to talk about.

Ed Adams-WSU Extension

The WSU County Extension Office is going through vast staff changes due to retirements and turnover. They have received a grant to offer online training for the Master Gardeners if they miss a class; and he reported that the Master Gardener program is in full swing with a new class of approximately 100 Master Gardeners having recently been trained.

Surplus Property

Chair Scheele introduced the District’s legal counsel, Brian Werst, who was there to discuss the surplus property the District received due to a foreclosure related to a SRF loan default.

Chair Scheele read Resolution 050138, which instructs the staff to dispose of the property at 208 West 17^th, Spokane, WA in a commercially reasonable manner and for fair market value as-is.

Motion JAMES/SULLIVAN to adopt the Resolution 050138 regarding surplus property at 208 W. 17^th, Spokane, WA. Motion carried

Energy Freedom Loan

Brian Werst discussed the Energy Freedom Loan and the Palouse-bio project. The Palouse-bio LLC had stated at their Board of Director’s meeting on March 17 that they passed an unanimous motion to terminate the loan agreement between the Spokane County Conservation District and Palouse-bio LLC for use of the energy freedom funds, due to the changing commodities market.

While the State said that they want the interest returned to them, Brian Werst said that he believed some of the interest should be paid to the District. While the project is not moving on, there have been some administrative costs paid by the District. Brian recommended submitting a requisition to the State. Brian said that the District should not pay out of pocket for any legal, third-party, or staff time for the loan; that should be included on the requisition.

EXECUTIVE DIRECTOR’S REPORT

Rich reported that he and Jim attended the Economic Report last Friday at The Davenport Hotel, which was spearheaded by the Department of Agriculture.

Rich discussed the upcoming WADE training in Leavenworth on June 16-18; he asked the Board to let him know who will be attending, as Rachel needs to send in the registrations by the end of the week. The only Board members who will be attending are Jaki Shrauger and Jerry Scheele.

Correspondence & Announcements

Vicki Carter distributed the annual financial report for 2007 for the Board members to review.

Motion RIDDLE/SHRAUGER to approve the 2007 annual financial report. Motion carried

·         Vicki received a letter from the Washington State Conservation Commission containing upcoming due dates for reports.

·         ING sent a letter stating that they have acquired City Street, another financial company.

·         Vicki received a letter from Spokane County regarding a potential new bank wire procedure for assessment checks; Rachel met with AmericanWest Bank regarding new banking procedures, and in the future we may be able to take advantage of that.

·         We received a letter from Enduris (formerly WGEP) regarding their election for two positions. A ballot will sent in July.

·         Vicki read an e-mail she received from NRCS regarding bogus notices of court subpoenas.

·         Vicki received a letter from the Okanogan Conservation District regarding the Envirothon

AWB Signature Card

Vicki distributed AmericanWest Bank signature cards to Supervisors Jaki Shrauger and Mary Sullivan, so that they can sign checks if needed. Other than all of the Supervisors, the only other people allowed to sign checks are Rich Baden and Jim Armstrong.

Election of Board Officers

The Board voted for the three officers. The results of the election were:

Chairman – Jerry Scheele

Vice Chairman – Randy James

Auditor – Dixie Riddle

Internal Audit Report

Vicki presented the March 28, 2008, internal audit report and reviewed it with the Board. This audit is what will be submitted to the Washington State Conservation Commission to receive our basic funding. The audit found four items: one unsigned check, one voided check that didn’t get Board approval; a missing progress report in a loan file and one loan balance discrepancy on a closed loan.

Motion Sullivan/JAMES to accept the 2008 internal audit report. motion carried.

Executive Session

None

READING OF THE MOTIONS

Motion RIDDLE/SHRAUGER to approve the April 8, 2008, Board meeting minutes as distributed.  Motion carried.

Motion RIDDLE/SHRAUGER to approve the April Treasurer’s report, payroll checks #1193-1227, with voided payroll checks #1216,1219,1222, checks #27034-27127, and automatic withdrawal #999990, and May Account Payables in the amount of $154,921.84. Motion carried.

Motion SULLIVAN/ JAMES to approve the WACD budgeting concept discussed in the Board meeting. Motion Carried.

Motion JAMES/SULLIVAN to adopt the Resolution 050138 regarding surplus property at 208 W. 17^th, Spokane, WA. Motion carried.

Motion RIDDLE/SHRAUGER to approve the 2007 annual financial report. Motion carried

Motion Sullivan/JAMES to accept the 2008 internal audit report. motion carried.

The regular Board meeting adjourned at 8:25pm

Respectfully submitted by:  Rachel Rooks

Gerald Scheele, Chairman                                     Dixie Riddle, Auditor