In accordance with notice to members of the Rhode Island Coastal Resources Management Council, a meeting was held on Tuesday, April 27, 2010 at 6:00 p.m. in Conference Room A, Administration Building, One Capitol Hill, Providence, RI.

MEMBERS PRESENT
Michael M. Tikoian, Chair Paul Lemont, Vice Chair Raymond Coia Bruce Dawson
Donald Gomez Ames Colt for DEM Robert Driscoll

STAFF PRESENT
Grover J. Fugate, Executive Director Jeffrey M. Willis, Deputy Director Louise Ford, Chief Resource Specialist Laura Ricketson Dwyer, Public Education/Outreach Coord Brian Goldman, Legal Counsel

1. CALL TO ORDER

Chair Tikoian called the meeting to order at 6:20 p.m. with the reading of the Opening
Statement.

2. APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING:

Mr. Coia, seconded by Vice Chair Lemont, moved to approve the minutes of the previous meeting, April 13, 2010. Minutes approved on a unanimous voice vote.

3. SUBCOMMITTEE REPORTS

Vice Chair Lemont introduced for Council concurrence to begin rule making in three areas of the RICRMP Ocean Special Area Management Plan – Chapter 2, Section 200: Ecology of the Ocean SAMP Region; Chapter 3, Section 300: Global Climate Change; and Chapter 10, Section 1000: Existing Statues, Regulations, and Policies. Hearing no objections, Chair Tikoian placed the above mentioned chapters out for public process for rulemaking.

4. STAFF REPORTS

Jeff Willis gave brief overview of the CRMC revised budget received for Department of Administration (DOA) stating that the CRMC needed to find an additional 82,000 plus dollars. Mr. Willis introduced Louise Ford, CRMC Chief Resource Specialist, to review with the Council members a spread sheet which categorized the expenditures through the end of March, 2010. Ms. Ford gave column by column descriptions of the spreadsheet which ended with a projection of surplus and deficits. Mr. Lemont brought attention to the allotment of $57,610 for legal expenses while CRMC required $90,000 for this expense. Ms. Ford stated that the DOA had reduced the CRMC budget and that the most noticeable was in legal services. Ms. Ford stated that every year we request $90,000.00 in funds for legal services. Vice Chair Lemont asked if it was specifically the DOA who cut the legal services budget of $90,000 down to $57,610.00. Ms. Ford stated that was her understanding. Chair Tikoian asked for further explanation on how the DOA reviews and determines where the cuts should be made and whether it was line item by line item and whether we receive such budget reductions in writing. Ms. Ford stated that DOA cuts CRMC’s operating costs every year and that the document explaining the budget reduction that came from the state house was submitted to the Council with her last presentation. Ms. Ford stated that she would check her e-mails for confirmation for DOA of budget reduction. Vice Chair Lemont asked why the Legal expense was the only line item that was cut so drastically. Chair Tikoian asked if any consultations were made with Council or Legal Counsel on this particular line item reduction. Mr. Willis explained the process of the budget reduction stating that DOA submits the revised working budget with reductions to House Fiscal who then makes an analysis. Mr. Willis stated that DOA gives CRMC a revised working budget in September/October and then a supplemental budget is sent in which reductions are sometimes made again. Chair Tikoian stated that he would like the Council to be presented with both the State and Federal Budget and asked if there were monies in the Federal budget which would be able to be used to make up the deficit in the State budget for legal expenses. Mr. Willis stated that DOA has asked the Council and a request was made by CRMC to our Federal Partner to shift the monies to make up for the reduction. Mr. Willis explained to the Council about the budget process stating that the budget is submitted in September and it is received back by CRMC in May or June whenever it is approved. Mr. Willis stated that he believed the budgets were reviewed line by line and that CRMC used to have an opportunity for interaction with DOA and House Finance but not anymore. Chair Tikoian questioned the line item for personnel expenditures. Ms. Ford stated that personnel had been reduced in the supplemental budget from the original budget and that the dollar amount of $1,863,278.00 was a projection for the end of the fiscal year. Discussion on clarification of spread sheet columns. Chair Tikoian asked if anyone consulted with Legal Counsel over the $90,000.00 projection. Mr. Goldman stated that each year he submits a contract to the CRMC. Chair Tikoian questioned the DOA and Legislature reducing a contractual obligation. Mr. Willis stated that they asked for CRMC to supplement using Federal budgetary monies. Mr. Fugate stated that the shifting of Federal budget dollars needs prior approval from our Federal funding agency. Chair Tikoian asked that Ms. Ford send him the budget that is in front of House and Senate Finance so that it can be reviewed by Council through an e-mail that will be sent by him. Discussion on the use of overage from one column to another. Mr. Fugate stated that the shifting of funds needed approval from funding agencies, DOA, NOAA, House and Senate Finance. Ms. Ford stated that if there is an overage in one column and an underage in another column, they can balance each other out. Ms. Ford also explained that if all columns are zeroed out, then any additions to the budget need to be approved by the funding agencies. Vice Chair Lemont asked if anyone is speaking on our behalf regarding our budget. Mr. Fugate stated that the Legal expense issue is before the House and Senate Finance and that if any lobbying was needed it would have to be done there. Mr. Fugate stated that CRMC FY2011 budget has similar cuts and are also before House and Senate Finance. Mr. Fugate stated that he speaks on CRMC’s behalf as much as be can for the budget to stay intact but he is limited as to where he can go. Mr. Gomez asked what happens if the budget additions are not approved on from out federal funding agency. Mr. Fugate states that if it does not get taken care of with Federal funds, we will be running a deficit in the State budget. Mr. Driscoll asked who CRMC reports to in regards to the budget. Mr. Fugate stated that state agencies are required to file quarterly reports with DOA, and those then go to the House and Senate Finance people and any requests to reallocate money would be done with the supplemental budget. Chair Tikoian asked for Federal budget documents with line items on revenues to see what we budget and what we brought in for revenue. Chair Tikoian asked for names of people we speak to on a regular basis regarding our budget. Mr. Fugate stated that he does not speak to anybody on a regular basis except Eileen Naughton who is the Chair of our budget for House Finance and that’s because Eileen is typically interested in aquaculture. Mr. Fugate stated that CRMC gives quarterly reports to DOA. Chair Tikoian asked if House Fiscal gives us instruction on our budget situation. Mr. Fugate stated that the only directive that came through this year from the Chair of House Finance through JP, our House Fiscal Analyst, was not to enter into any new contracts, purchase contracts for the rest of the fiscal year or the new fiscal year until House Finance has had an opportunity to look at all the contracts. Chair Tikoian asked if this directive was in writing; and if the directive went to all agencies or just ours. Ms. Ford stated that she spoke with JP and he stated he was telling all agencies on behalf of the House Finance Chair, Representative Constantino. Chair Tikoian asked if this directive was questioned by anyone in our office. No one had questioned the directive. Chair Tikoian asked for JP’s full name. Ms. Ford stated that JP stood for Jon Paul Verducci and that he is the Fiscal Analyst. Chair Tikoian asked if DOA was consulted on directive from the House. No one had contact DOA on House directive. Chair Tikoian asked who would be the contact person at DOA that CRMC works with. Ms. Ford stated that CRMC worked with Dennis Michaud. Chair Tikoian asked if Mr. Michaud was aware of the directive received from the House. Ms. Ford stated that she was unsure. Chair Tikoian stated that this item would be placed on future agenda.

5. EDUCATION SERIES

Ports Inventory PowerPoint presentation by Jen McCann of URI CRC and RISG

6. APPLICATIONS WHICH HAVE BEEN OUT TO NOTICE FOR 30 DAYS AND ARE BEFORE THE FULL COUNCIL FOR DECISION

2010-01-053 SEAN PATCH -- Construct and maintain a three acre aquaculture farm in Ninigret Pond, Charlestown, RI.

Sean Patch was present. David Beutel, CRMC’s Aquaculture Coordinator, gave a brief overview of the proposed aquaculture project stating that the request is for three acres in Ninigret Pond, one parcel of 2.75 and another parcel of .25 in the southern shore. Mr. Beutel stated that he worked very well with Mr. Patch and that the only snag was that the Shellfish Advisory Panel discerned that Mr. Patch is not a resident of Rhode Island. Mr. Beutel stated that since residence of the applicant is not a criteria for application review, the panel approved it 5 to 4 and recommended it be reviewed by Marine Fisheries Council who approved it unanimously. One letter of objection was received by the RI Saltwater Angler Association based on the residency of the applicant but again, not one of the criteria used to review application. Mr. Beutel stated that staff recommended approval of application. Vice Chair Lemont asked what percentage of Ninigret Pond will still be available. Mr. Beutel stated that we are only at .67 percent of use; not even one percent. Vice Chair Lemont motioned, seconded by Mr. Coia, approval of application. Application carried on unanimous voice vote.

7. REVIEW AND ADOPTION OF AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING (MOU) DATED AUGUST 1, 2008 BETWEEN RIEDC, URI AND CRMC

Mr. Fugate stated that we have been unable to get an MOU out of EDC because they do not want to receive any of the Office of Energy Resources (OER) monies and pass them on to the Council; they do not want to be an intermediary. Mr. Fugate stated that OER is looking at negotiating directly potentially with the University for the scope of the work and entering into an agreement so we don’t have an MOU with EDC at this time. Chair Tikoian stated that he understood the situation to be different. Mr. Fugate stated that Fred Hashway was discussing the possibility of trying to shift the funds out of their hands and into the Council or the University’s. Mr. Fugate asked Jen McCann of URI to elaborate. Ms. McCann stated that her understanding was that EDC does not feel that they are playing an efficient role in the process and that Mr. Hashway recommended that the MOU be between OER and URI. Chair Tikoian stated that he spoke with Mr. Hashway and his interpretation was that EDC did not want to handle the financing and that CRMC should be the responsible party. Ms. McCann reiterated that her understanding was that URI would handle the funds on behalf of CRMC with whom the University has a long standing partnership. Chair Tikoian stated that perhaps a vote on the MOU is unnecessary to which Ms. McCann agreed that there is not a need for an approval. Chair Tikoian asked if the Governor’s office was involved in the rerouting of finances. Ms. McCann stated not to her knowledge. Vice Chair Lemont commented about the last subcommittee meeting where Dennis Nixon voiced his concern regarding the lack of money flowing into the University. Vice Chair Lemont asked if there were other avenues to try to make situation easier, thinking that the funds Mr. Nixon was referring to were the same funds from the MOU. Ms. McCann explained that the funding Mr. Nixon was concerned about was the $2.8 million coming from escrow from EDC and the $2 million in question now is stimulus money. Ms. McCann expressed concern in regards to the management of the stimulus money due to the amount of reporting required which requires much more detail. Mr. Goldman gave a briefing on his understanding of the agreements with the $2 million stimulus funding stating that in his conversations with Fred Hashway EDC thought it would be best if the money came to CRMC to have oversight of the money and disburse to URI. Mr. Goldman stated that Mr. Hashway indicated he had spoken with Mr. Fugate and that while Mr. Fugate was okay with the money going to CRMC, the issue would be an overtaxing of bookkeeping personnel to handle this amount of work and reports required at which Mr. Hashway stated that he would volunteer EDC to continue to prepare the reports and present it to Council for approval and disbursements. Mr. Goldman then stated that he consulted with EDC and the Governor’s office, sent them a red line version of the proposal with changes asked to be made by the Governor’s office and that the Governor’s office wants a section added to apply results into CRMC policies and regulatory standards. Mr. Goldman stated that the parties concerned hoped that the changes would be made tonight and voted on. Mr. Goldman stated that the vote could be subject to some legal tweaking at a later date but the proposal could be approved to the Council has it on record and everything can move forward. Ms. McCann respectfully disagreed with the added section stating that URI was to work with Dave Beutel on fisheries research coordination and management but not for URI to do policy. Ms. McCann stated that because the new language direction from the Governor’s office was not in writing she will not give that direction. Chair Tikoian asked that since the funds are going to be used for additional studies because of the changed RFI blocks, would there be a mechanism to have the money for policy come out of the original funding as the Governor expressly stated that he wants policy to come out of the document. Ms. McCann stated that the policies being established were trying to reflect as much as possible as the MMS regulations, which is the Federal Agency that will have jurisdiction over these federal waters and there won’t be a significant amount of policy change within this new research. Ms. McCann stated that the research has to be done in order to identify locations to meet the Governor’s request to put additional wind turbines, and the Endeavor costs $20,000 a day which also takes money out of the research budget. Mr. Fugate stated that additional research and surveys needed to be performed to plug into the Federal process. Ms. McCann stated that there was a small amount of money that Sea Grant was using to support the Ocean SAMP for communication to the public about the research being performed to help create policy. Discussion on funding from $2 million for legal work due to the need for review of new policies developed. Mr. Goldman stated that if CRMC approves the redlined MOU document this evening, and the other parties agree to then it can go forward; if the other parties do not agree to it then it does not go forward. Chair Tikoian agrees. Vice Chair Lemont motioned, seconded by Mr. Gomez, to approve the MOU subject to development and negotiation by Mr. Goldman, and if there are any foibles, the document comes back to the Council for further review. Vice Chair Lemont amended his motion to include that the budget for the $2 million be reviewed by the Council periodically. Mr. Gomez seconded the amended motion. Motion and amendment to motion carried on unanimous voice vote.

8. CATEGORY “A” LIST

Accepted as presented.

9. ADJOURN

Prior to adjourning Mr. Goldman asked the Council members to meet with him about their schedules so that he could find dates to set up the Champlin’s hearing as remanded by Superior Court. Chair Tikoian stated that regular CRMC business regarding Semimonthly meeting scheduling will be suspended for two meetings to hear the Champlin’s application.

Chairman Tikoian asked for a motion to adjourn. Vice Chair Lemont seconded by Mr. Dawson, moved to adjourn with a unanimous vote for the motion following. The meeting adjourned at 7:47 pm.

Respectfully submitted,
Grover Fugate, Executive Director

Reported by Lisa A. Mattscheck

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