July 27, 2004

1. Progress Report to the Liaison Council July 27, 2004

2. EEP Liaison Council Members Joe Thomas – Ecobank Camilla Herlevich – Clean Water Management Trust Fund Jim Buck – Buck Engineering Barney O’Quinn – Arcadis John Preyer – NCERA Derb Carter – Southern Environmental Law Center Katherine Skinner – The Nature Conservancy Tom Bean – NC Environmental Defense Leslie Bevacqua – NCCBI Bill Holman – Clean Water Management Trust Fund Mike Jones – Martin Marietta

3. Meeting Purpose • Information exchange on progress and activities. • Provide opportunity for Council Members to ask questions and discuss issues.

4. Outline • Welcome and Introduction • Administrative progress • Program Assessment and Consistency • Program Status • Policy process and procedure manual and information management systems • Communication plan

5. Program Launch The Memorandum of Agreement (MOA)was signed on July 22, 2003

6. 3-Party MOA 2-Party MOA DOT/DENR/USACEJuly 2003 DOT/DENRApril 2004 Regulatory Document Business Document

7. Administrative Progress Three Party MOA (NCEEP.net) • Confirms: Mission, Planning Process, Funding, Mitigation timing and requirements • Defines regulatory oversight (PACG) • Mitigation protection measures • Operating procedures

8. Administrative Progress Two Party MOA (NCEEP.net) April 12, 2004 • References Three Party Agreement • Responsibilities of DENR Reporting system, performance metrics, database maintenance and development, fiscal accounting • Responsibilities of the NCDOT Reliance on NCDENR, impacts provisions, funding commitment • Amendment provisions

9. Administrative Progress Contracts and partnering • Full delivery restoration program • initiated on December 23, 2003 • targeted toward restoration requirement • Contract with CTNC • Executed October 21, 2003 • targeted toward HQ preservation • Stewardship • 3PM and IM Data Base- RTI

10. DENR Exec. Organization Director, EEP Policy Administration Operation Manager Quality Control Monitoring Planning Implementation

11. Organizational Relationship DENR/DOT (Tri-party MOA) DENR Exec. DOT Exec. Director, EEP PDEA Program In-lieu Program Tri-party MOA ONE

12. Organizational Relationship EEP/DENR PACG DENR Exec. DOT Exec. Liaison Council Director, EEP In-lieu Program Tri-party MOA

13. 60 60 50 40 30 20 10 Organizational Staffing Admin, Policy, Strategic plng = 15 Operations = 45 60 34 July Aug Sept Oct Nov Dec

14. Biennial Budget Founded on • MOA requirements for schedules • NCDOT forecasted impacts • Transition plan (Tri-Party)

15. Tri-Party Biennial Budget(in revision) Administration= $ 15 million Restoration= $ 90 million Preservation= $ 136 million Watershed Planning= $ 6 million $ 247 million

16. 6% Proposed EEP Biennial Budget 35% Both neededduring Transition } 28% 28% 3% After Transition, this investmentis recycled for future TIP projects Operations Restoration Preservation Planning

17. New and Planned Initiatives • Long term management (Stewardship) • Statewide short term monitoring program

18. PACG David Franklin

19. PACG PACG Agency Composition PACG Meetings PACG Responsibilities PACG Organization

20. DENR EXEC. EEP PACG Technical Committee Issue A Ad-hoc Issue B Ad-hoc Issue C Ad-hoc

21. Program Status Suzanne Klimek Director of Operations

22. Major Program Initiatives • Assessment of Program Status • Development of Statewide Programmatic Strategy • Status of Preservation Initiative • Project Implementation • Watershed Planning • Functional Assessment Teams

23. Assessment of Program Status • Impact Projections from DOT (March ’04) • Conversion of projected impacts to program needs according to Tri-party MOA • Transfer of DOT Assets and Debit Ledger • Compilation of WRP Assets • Response to latest round of full-delivery RFPs • Overall reconciliation for all CUs

24. Development of Programmatic Strategy • Conduct annually to determine program action plan • Evaluation of situation for each CU • Existing assets and needs over time • Past and current efforts and their success • Needs in the near and long term • Set course for year • Share through web site

25. Status of Preservation Initiative • Contract with CTNC executed October ‘03 • Preservation applied during transition period based on ecoregions

26. Preservation Status Riverine Wetlands

27. Preservation StatusNon-riverine Wetlands

28. Preservation StatusStreams

29. Project Implementation • Continue implementation of projects initiated by WRP • Transfer and continue implementation of projects initiated by DOT • Additional projects initiated under EEP • Full-delivery contracts

30. Summary of WRP, DOT and EEP Projects • Total number of projects = 379 • Streams = 215 projects • 780,000 linear feet of restoration • Average length = 3,640 linear feet • Riparian Wetlands = 80 projects • 2,240 acres of restoration • Average size = 28 acres • Non-riparian Wetlands = 45 projects • 6,380 acres of restoration • Average size = 141 acres • Miscellaneous = 39 projects • Coastal marsh, riparian buffer, nutrient offset

31. Status of Full-delivery Contracts • 15 full delivery RFPs issued in Dec. ‘03 • Executing contracts on 9 totaling $16,280,528 • Working to resolve technical issues on 2 • Received no response on 3 • Did not open 1 • Working on improvements to RFP format with input from the NC Environmental Restoration Association

32. Watershed Planning • 22 Local Watershed Plans completed or underway • 4 river basin plans scheduled for revision in 2004 • Working on packaging LWPs to present to USACE to get credit for alternative forms of mitigation • Will initiate additional LWPs later this year

34. Wetlands Evaluation parameters developed (i.e. soil type, canopy cover) Field verification of parameters underway Streams Plan to present GIS method to PACG in September Field method still to be worked on Status of Functional Assessment Teams

35. Policy Process and Procedures Manual Barb Satler

36. Policy, Process and Procedures Manual Quality Management System • Designed and adopted to promote effectiveness, efficiency, and transparency in operations • Designed as a single point of reference for day-to-day operations • Primary users: EEP Staff • Benefits to partners, customers, the business community • Adopted ISO 9001:2000 Quality Standards

37. Policy, Process and Procedures Manual Quality Management System • ISO 9001:2000 Principles • Customer Focus • Leadership • Involvement of people • Process approach • Systems approach • Factual decision making • Continual improvement

38. PPPM Format • Introduction • Scope • References • Terms • Management System Overview • Management Responsibilities • Resource (Administrative) Management • Work Processes • Measurement and Analysis

39. EEP Core Processes Organizational Strategic Planning • top-level management function • sets program goals and measures • evaluate performance • ensures resources to meet mission and achieve goals

40. EEP Core Processes Operational Strategic Planning • Operational management function • Sets program goals and measures • Directs project to achieve all objectives

41. EEP Core Processes Watershed Planning • Technical function • Addresses scientific and economic factors affecting watershed quality • Development of Watershed Restoration Plans and Local Watershed Plans

42. EEP Core Processes Land Acquisition • Operational function • Identification • Assessment • Negotiation • Administration of real estate transactions

43. EEP Core Processes Implementation • Project management function • Accomplishes watershed restoration and mitigation goals • Variety of delivery methods using the private sector

44. EEP Core Processes Contracting • Administrative function • Supports procurement needs of planning, acquisition, and implementation • Complies with legal and regulatory requirements • Ensures “best value” for the State of NC

45. EEP Core Processes Accounting • Administrative function • Supports budgeting, accounts receivable and payable • Supports associated reporting needs of all other EEP functions

46. EEP Core Processes Administration • Resource management function • Supports organizational needs such as human resources, infrastructure and communications

47. POLICY EXAMPLE: Quality • 1.0 PURPOSE AND SCOPE • The Ecosystem Enhancement Program will ensure organizational excellence by continually improving the effectiveness, efficiency and quality of operations consistent with customer requirements, stakeholder expectations and the overall mission of the organization. The EEP Quality policy is consistent with the North Carolina Department of Environment and Natural Resources Organizational Excellence and Quality Policy. • 2.0 QUALITY POLICY STATEMENT • The Ecosystem Enhancement Program shall: • Understand and focus on customer requirements • Provide and sustain a leadership system in support of high performance, individual development, initiative, organizational learning, and promotion of partnerships • Provide resources to, and authorize and empower supervisors and staff for process implementation • Be committed to continual review and improvement of policies, process and procedures in support of efficient and effective operations • Use a factual knowledge management approach to decision making • Ensure a beneficial relationship with customers, suppliers, stakeholders, the regulatory community, and staff. • Produce measurable results that focus on capacity andcapability • REFERENCES • EEP Mission Statement (link in background section of manual) • NCDENR Organizational Excellence and Quality Policy (currently resides in: \\archer\dot\shared\EEP Procedures\RTI\PPPM development\Team b management\DENR Quality Policy) • AUTHORIZATION • _________________________________ • William Gilmore PPPM Policy Example

48. PPPM Process Map Example

49. Information Management Database • On target for IBEAM Notebookrequirements completion in August • IBEAM facilitates rapid development of programming Followed phased approach to analysis, design and implementation Highest priority to conduct analyses for asset accounting and forecasting

50. Information Management Database • Creates information system that contains data elements and functionality essential to supporting operations and goals • Scope includes: • EEP implementation project management and tracking • DOT project tracking and mitigation forecasting • Mitigation debit and credit ledger