FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department:
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Contact Person/Phone:
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DOF Analyst/Phone:
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Seattle City Light
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Scott Powell (386-4582)
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Legislation Title:
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A RESOLUTION approving the proposed budget of the Skagit
Environmental Endowment Commission for fiscal year 2009.
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·
Summary of the Legislation: This Resolution describes the planned use of the
Endowment Fund between April 1, 2009 and March
31, 2010 and
approves the resulting budget. Similar Resolutions are presented to the Council
on an annual basis.
·
Background: SEEC' s budget is supported
by an Endowment Fund funded by Seattle City Light and BC Hydro during the
period 1985-88, as a result of the 1984 High Ross Treaty. The Treaty requires
Seattle City Light to supplement the fund by an annual, inflation-adjusted
payment based on a fixed amount of power purchase.
In 2008-2009 the payment was $115,842.03. A Briefing
Paper regarding SEEC’s 2009 budget (Exhibit 1) and 2008 Annual Report (Exhibit
2) are attached to this fiscal note for informational purposes.
·
Please check one of the following:
___X_ This
legislation does not have any financial implications.
BRIEFING PAPER
SKAGIT ENVIRONMENTAL ENDOWMENT COMMISSION
2009 BUDGET
·
The Commission was established by
treaty between the United States and Canada as part of the settlement of the High Ross Dam
controversy in 1984. Half of the Commission members are appointed by the Mayor
of Seattle; the other half by the Premier of British Columbia.
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As part of the treaty, an
endowment fund was created to protect the wilderness and wildlife values, and
to enhance recreational opportunities, in the upper Skagit
watershed above Ross Dam.
·
The Treaty stipulates that Seattle and British Columbia
would contribute to an endowment fund that the Commission administers. This
was initially accomplished in 1985-89. The Treaty also requires Seattle City
Light and BC Hydro to contribute to the fund, based on the value of certain
power sales, on an annual basis.
·
The endowment fund is not
part of Seattle’s annual budget, but approval of the budget by the
Seattle City Council and the British Columbia Minister of Finance and Corporate
Relations are required. The SEEC fiscal year begins April 1.
·
In August, 2008, the Commission
launched a 5-year work-planning process in collaboration with its public agency
and non-governmental partners. The Commission continues to organize its work
around initiatives for education, ecosystem management, land management, and
recreation.
·
The 2009-10 budget also reflects these
categories for education ($248,000), ecosystem management ($113,000), recreation
($53,000), land management ($16,000). Also, the Commission will undertake a
special project relating to native American culture called the Gathering at
Hozomeen ($43,000).
·
This year, the Commission
establishes a modest contingency fund to account for unforeseen needs and
opportunities. Also, the Commission continues to set-aside $1,000,000 in
contingent appropriation for two specific purposes. First is authority to move
unprotected areas of the Upper Skagit Watershed in British
Columbia into protected status. The
second is targeted support for grizzly bear recovery in the upper Skagit area,
should opportunities arise.
·
The Commission is mindful of the
downturn in the financial markets. The fund is professionally managed and has
weathered recent downturns fairly well. The Commission gauges its expenditure
rate on a multi-year perspective and will continue to monitor the fund for
needed budget adjustments in future years.
ANNUAL
REPORT
Calendar Year 2008
PHOTO
Students from Hope, BC learn about
river ecology in the Skagit
ANNUAL
REPORT
Calendar Year 2008
INTRODUCTION
This Annual Report
summarizes the activities of the Skagit Environmental Endowment Commission (SEEC) during
the calendar year 2008. It is prepared in fulfillment of the provisions as per
Article II of Appendix D of the British Columbia–Seattle Agreement (March 30,
1984) regarding the High Ross Dam. Budget information is based on the
Commission’s fiscal year which begins on April 1.
BACKGROUND
The Commission was
established in 1984 as a result of the Ross Lake/Seven Mile Reservoir Treaty
between Canada and the United
States. Within the Treaty, British Columbia and the City of Seattle established the Skagit Environmental Endowment
Fund to be administered by the Commission. Seattle and British Columbia contributed US $1 million and US $250,000 respectively to the
Fund for the first four years after its creation. Both Seattle City Light and
BC Hydro make ongoing annual supplemental payments to the Fund, with the
supplements based on annual power purchases.
As of December 31, 2008
the market value of the Endowment Fund is CAN$
8,907,482 (US$ 7,270,287), with the
principal held in separate US and Canadian investment
portfolios in Canada. The Fund resides and is
managed completely outside of the consolidated revenue of both the BC
Provincial and Seattle City governments.
The primary purpose of the
Fund is to:
(A) conserve and protect
wilderness and wildlife habitat and;
(B) to enhance recreational
opportunities in the Skagit Valley.
Expenditures of the Fund
are limited to projects located in or related to the Skagit River
drainage upstream of the Ross Dam in both Washington State and British
Columbia. The intent of the
Agreement is that the majority of the expenditures from the Fund, averaged over
an extended period, be made in Canada. Details of the Fund are outlined in Appendix D
of the Treaty (page 38) dated 1984. Annual expenditure levels are set within
established guidelines, including the investment income of the Fund.
The Commission created to
manage the Fund consists of eight members, four of whom are appointed by the
Mayor of Seattle and four of whom are appointed by the Premier of British
Columbia. Both countries also have four alternate Commissioners for a total of
sixteen individuals that serve the Commission. By Treaty, SEEC is a
non-profit, tax-exempt entity.
2008 COMMISSIONERS AND STAFF
A complete roster of the
Commission is attached to this annual report (Appendix A). On the US side,
new appointments included Commissioner Michelle Connor and alternate
Commissioners Jim Hattori, Tim Manns and Jennifer Watkins.
In Canada there
remains one vacancy for an alternate Commissioner position.
Seattle City Light and the
BC Ministry of the Environment provide staff and administrative support to the
Commission. Chris Tunnoch served as the Canadian staff with Scott Powell as
the US staff member to the Commission.
2008 ACTIVITIES AND
PARTNERSHIPS
In the past year, SEEC continued
to focus on goals from the 2006 workshop “Protecting an International
Watershed: the Upper Skagit”. The Commission is working with established
partners and actively seeking new partners with a focus on the following
initiatives:
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Land Management;
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Ecosystem Management;
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Education and Interpretation;
and
·
Recreation.
The full Commission met
quarterly in February, May, August and November 2008. The August meeting was
held over two days at Newhalem and Diablo, Washington where the
Commission focused on a new 5-year plan.
As a critical part of its
strategic initiatives, SEEC has developed strong working relationships with
land management agencies and non-profit groups. This year, the Commission
reaffirmed its intent to structure multi-year agreements with selected partners
and to continue to foster its goals through planning and collaboration.
Initiative: Land
Management
With respect to land
management, the Commission continued two Canadian projects launched in 2007.
It continued work with a consultant to address the status of private land tenures
within the two provincial parks in the Skagit. The consultant has documented these tenures,
secured administrative retirement of some and explored options for the
Commission to purchase others.
PHOTO
Second, the Commission
completed water quality sampling across the Skagit drainage in BC, for a
water quality monitoring project that links water quality parameters to
biological indicators of aquatic habitat health.
The Commission continued
outreach to new partners for land management in the Upper Skagit Watershed,
including the Fraser Valley Regional District, Land Conservancy and Ducks
Unlimited.
The Commission’s
contingency fund of $1,000,000 to support purchasing or moving unprotected
areas of the Upper Skagit Watershed to protected status was not used and will
be carried forward.
Initiative: Ecosystem
Management
The BC Ministry of
Environment, with SEEC funding, contributed to ecosystem management by
drafting a Fish and Wildlife Management Plan for the Skagit
and holding a series of Open Houses. Other work included wolverine monitoring
in the watershed.
PHOTO
The Commission set aside
funds to promote grizzly bear recovery in the Skagit. Strategic outreach
to decision makers in BC and the US was completed and the Commission approved, in
concept, funding support for grizzly bear recovery actions.
On the US side
of the border, the North Cascades National
Park used youth volunteers from
several organizations to perform riparian habitat restoration around Ross Lake.
In 2008, significant
planning was undertaken for ecosystem monitoring activities. Several
coordination meetings were held involving scientists on both sides of the
border. This work will drive future ecosystem management funding by SEEC,
through its 5-Year Workplan.
Initiative: Education
In continued partnership
with the North Cascades Institute (NCI), SEEC supported the Mountain School
at the North Cascades Environmental Learning Center. This year, NCI launched its Diversity Initiative to better serve
the evolving community of its closest audience in the lower Skagit
basin.
On the Canadian side of
the border funds were contributed to the Hope Mountain Centre for Outdoor
Learning (HMCOL), a community non-profit society with an adult education focus,
and to the Fraser Cascade Mountain School. HMCOL continued with pilot programs and capacity
building, including hiring staff and initial implementation of its outreach and
development plan.
PHOTO
The Fraser Cascade Mountain
School is the outdoor education program for schools in the Fraser Cascade
(Hope) region. The SEEC funds were used to organize workshops for teachers
and to take students into the Skagit Valley.
PHOTO
A collaborative partnership
between the North Cascades National
Park and the BC Ministry of
Environment allowed for the continuation of the International Hozomeen Skagit
Interpretive Program. This unique program involves two interpreters: one from Canada
and one from the US, jointly delivering interpretive programming to
summer campers at Ross Lake. The program focuses around the Interpretive
Shelter funded by SEEC at International Point.
Initiative: Recreation
PHOTO
As in prior years, SEEC supported the Student Conservation Association's
(SCA) summer campsite and trail renovation program in the Upper Skagit.
SCA staff and volunteers worked under the supervision of the US National Park
Service and BC Parks (Ministry of Environment) on various sites around Ross Lake.
PHOTO
SCA hosted SEEC
members to their annual luncheon and field trip on Saturday, July 26.
The National Park Service
used SEEC funding to landscape around the International
Amphitheater at Hozomeen. The amphitheater was built with SEEC
funds in prior years.
2009 PLAN
A table of SEEC
initiatives for the 2009/10 fiscal year is attached as Appendix B. Since its inception the Commission has approved
over 275 projects totaling in excess of US $7 million.
The Commission’s annual
work plan and calendar follows:
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Winter:
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- Commission approves
budget and works on renewing agreements and goals for partnerships with
agencies including NPS, MOE, NCI, SCA, HMCOL and FCS.
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- Secretaries send
2009/10 budget approval package to Seattle City Council and the BC
Government.
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- Agency meetings on
ecosystem monitoring projects and water quality studies.
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- Secretaries and support
staff begin document archiving project.
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Spring:
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- Seattle City Council
and BC Government adopt budget.
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- Seattle City Light and
BC Hydro pay inflation adjustment on annual payment on March 31, 2009.
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- Secretaries renew
contracts and agreements for 2009 fiscal year.
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Summer:
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- Commission field trip
to watershed.
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- First Nations
Conference and Gathering at Hozomeen.
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Fall:
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- Financial audits completed.
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- Project evaluation and
budget development for the 2010 fiscal year.
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FINANCES
Both Seattle City Light
and BC Hydro supplement the fund annually with payments based on power purchase
under the agreement. With Seattle’s payment of US $112,614.16 and BC’s payment of US $71,786.66, a total of US $180,915.55 was
added to the Fund in 2007 exclusive of inflationary adjustments. (Note: Both BC
Hydro and Seattle City Light inflation adjustment payments for 2008 will be
added to the fund in March, 2009).
Total expenditures of the
Commission based on projected expenditures for the 2008/09 fiscal year, are approximately
US $553,517 of
which 84% was direct disbursement for contracts and partnership allocations.
Administrative costs were 7.3%, while the balance reflects compensation for the
Endowment Fund manager.
ATTACHMENTS
- Appendix A 2008
Commission Roster
·
Appendix B SEEC
Initiatives - Fiscal Year 2009
PHOTO CREDITS
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Location
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Subject
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Courtesy
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Front
Cover
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Fraser
Cascade students at Chittenden Meadow Bridge
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Hope Mountain Centre for Outdoor Learning
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Page 3
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Water
Quality Sampling
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Chris
Perrin, Limnotek
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Page 4
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Skagit River
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Betsy
Terpsma
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Page 5
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Teachers
Professional Development Day Skagit
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Hope Mountain Centre for Outdoor Learning
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Page 5
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Joint
Canadian and US Park Interpreters AJ Fedoruk
and Doug Vogel
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Betsy
Terpsma
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Page 6
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SCA
Crew and Annual Field Trip
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Betsy
Terpsma
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APPENDIX A
2008 COMMISSION ROSTER
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NAME OF
MEMBER
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TERM
EXPIRES
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TERM
BEGAN
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APPOINTING
AUTHORITY
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COMMISSION FIELD; PROFESSION, RELEVANT COMMUNITY
ACTIVITY
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US MEMBERS
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Shirley
Solomon
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7-1-10
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7-1-06
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Mayor
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Environment: Skagit Watershed Council, Wash State Fish and Wildlife Commission
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Tom
Brucker
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7-1-12
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7-1-04
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Mayor
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Business/Finance: North Cascades Conservation
Council; Sierra Club, Wash. Environmental Council
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Michelle
Connor
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7-1-12
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10-1-08
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Mayor
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Conservation:
Cascade Land Conservancy, non-profit organizational development
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Ken
Wilcox
(US
Co-Chair)
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7-1-12
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7-1-06
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Mayor
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Environment:
North Cascades
Conservation Council, environmental planning, writing
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ALTERNATES
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Jim Hattori
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7-1-12
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10-1-08
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Mayor
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Finance: Financial and non-profit management; outdoor recreation
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Tim
Manns
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7-1-12
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10-1-08
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Mayor
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Education/Recreation:
retired from US
National Park Service
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Alison
Studley
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7-1-09
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7-1-05
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Mayor
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Jennifer
Watkins
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7-1-12
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10-1-08
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Mayor
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Conservation: Conservation Northwest
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US STAFF
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Scott
Powell
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3-1-07
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Seattle City Light
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United
States staff
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CAN MEMBERS
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Lex
Bennett
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12-10-11
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8-1-03
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BC
Premier
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Business/Financial
Management: retired
finance manager
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Pete
Caverhill
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3-31-12
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3-25-03
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BC
Premier
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Government: retired fisheries specialist
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Ken
Farquharson
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3-31-12
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3-25-03
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BC
Premier
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Environment:
retired engineer,
environmental advocate
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Peter
Kennedy (CAN Co-chair)
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1-14-12
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01-01-04
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BC
Premier
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Land/Property
Management: Attorney
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ALTERNATES
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Tom
Bird
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8-1-11
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8-1-07
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BC
Premier
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Government: retired fisheries biologist
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Shaun
Hollingsworth
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8-1-11
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8-1-07
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BC Premier
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Environment:
BC Wildlife
Federation, BC Conservation Foundation
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Tracey
Herron
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4-30-09
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5-01-05
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BC
Premier
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Recreation: Search and Rescue
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Vacancy
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BC
Premier
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BC STAFF
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Chris
Tunnoch
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12-12-97
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Minister of Environment
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Canadian staff
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APPENDIX B
SEEC INITIATIVES
- FISCAL YEAR 2009
Partnership Workplan Support
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TITLE
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(US $)
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National Park Service—North
Cascades
International
Interpretive Program; Youth involvement.
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BC Ministry of
Environment:
International
Interpretive Program; Youth
involvement.
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North Cascades Institute
Mountain
School
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$80,000
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Hope Mountain Centre for Outdoor Learning:
Capacity
building; Education programs; Fraser
Cascade
School
programs
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Student Conservation Association
Canada-U.S.
Conservation Crew
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TOTAL PARTNERSHIP
WORKPLAN SUPPORT
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$248,448
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Partnership Joint Projects
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TITLE
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(US $)
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BC Water Quality
Monitoring
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Ecosystem Monitoring
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Recreation Projects
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Land Management/Outreach
Coordinator
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TOTAL PARTNERSHIP
JOINT PROJECTS
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$180,474
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Optional Funding
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TITLE
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(US $)
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Gathering at Hozomeen
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TOTAL OPTIONAL
FUNDING
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$43,200
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WORKPLAN CONTINGENCY
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$39,307
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GRAND TOTAL SEEC WORKPLAN
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$511,430
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CONTINGENCY
FUND FOR LAND PURCHASE AND/OR GRIZZLY BEAR RECOVERY
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$1,000,000
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