featuring
Secretary Bill Ross
Tuesday, July 16, 2002
Room C111A, EPA Green Campus
Research Triangle Park, NC

Agenda :
9:00 Welcome by EPA
9:15 Secretary's Comments
9:45 Break
10:00 Answer & Discuss Questions *(see below)
11:00 Open Forum Discussion
12:00 Lunch at EPA Cafe (optional/not furnished)
12:30 Tour of EPA Green Campus & Building (optional)
1:00 Adjourn


Opening:
Bill Laxton of the EPA opening the meeting by welcoming the DENR managers. The only requirement to use the EPA’s Green Building conference facility was to hear the EPA presentation of the story of the ‘green building’. Bill explained how this building was a struggle from its conception back in 1992 but now sets a standard for how successful a green building can be. One of the biggest selling points was the commitment that it will save $120 million dollars over the next 20 years through this design. He explained many facets of the green concept - - in the end the building did not cost more to build, they just had to trade off in other items in the design.
Several items of note :
- during the construction, the workers were required to recycle their building wastes and after some struggle, over 80% were recycled
- all furniture was chamber tested to not allow volatile pollutants into the workplace
- left over foods are composted from the cafeteria for reuse on the campus plants and shrubs
- carpooling is preached; in order to do this there is a guarantee of a ride home for any carpooler who needs to get home in an emergency (they
will call for and pay for a cab ride home). Bottom line, each of us is now an ambassador to go back to our lives and encourage people to “build green”. Convey this idea for state government buildings, school, etc. For more information on this building, call EPA or visit one of these websites : http://www.epa.gov/oaintrnt/facilities/rtp.htm OR http://www.epa.gov/rtp/new_bldg/newcampus.htm


Introduction :
Linda Culpepper, Chairperson for the Manager’s Forum Workgroup, introduced Secretary Ross. She also announced that Rita Richardson would be the next chairperson for this workgroup that organizes these forums.


Secretary Bill Ross's Opening Comments:
- DENR has been brainstorming to get out of the leased space in the Raleigh area and to build a state building that can be a ‘green building’
like this EPA facility
- It is a tough time to be a state employee. Your efforts are appreciated. It is important to keep going. Being a manager is hard during tough times like this.
- Secr Ross paraphrased Governor’s Easley’s speech that there are “No Excuses” even when time are hard
- He shared two quotes :
“Each generation writes its own biography in the cities it creates”
and
“A culture is no better than its wood” [ to which he added, ‘…its steams, its air, its land]
- DENR also has a ‘No Excuses” approach to our mission

- Secr Ross revisited the three quotes he shared last July 2001 at the Manager Forum in Raleigh. Each is still true today and should be considered for our work in DENR.
(1) “I say to you today, my friends, that in spite of difficulties and frustrations of the moment I still have a dream”.
Rev. Dr. Martin Luther King

(2) “America at its best, matches a commitment to principle with a concern for civility”
“. . . I will bring these values . . . .”
President George W. Bush

(3) “In your hands, my fellow citizens, more than mine, will rest the final success or failure of our course”
President John F. Kennedy

- Secr. Ross displayed a new poster of the DENR’s vision. The poster states :

Vision.
Together with innovation, teamwork, and partnerships, making progress toward :
- a cleaner environment,
- healthier lives,
- a stronger economy,
- more effective conservation of our land and water, and
- greater understanding and respect for the resources of nature.

.Secr Ross went on to discuss each of the key words in the Vision statement. Even in these hard times, he enjoys his job. He stated he enjoys “the people, the issues, and the chance to make a difference in his job”.


• Question and Answer Session with to Secretary Ross and Benton :
The following are the questions given and a MF notetaker’s version of what was answered.

Q1. The new indirect cost rates pull substantially more money from program delivery to administrative overhead and in a time when it can be least tolerated. How is this consistent with the DENR vision?

Response.

Bill and Dempsey turned to Rod Davis, DENR Controller for detail on this response. He stated over the last few years that the indirect costs have been stable. Among other things, the indirect costs are used to fund ITS and department level administration.


Q2. Many of our state’s water resources are impacted from non-point source pollution. Because of the diffuse and diverse nature of this type of pollution, as well as the fact that it often deals with the manner in which private landowners manage their land, it is very difficult to address. Within DENR there are a number of programs and initiatives across multiple divisions that work to address this issue in one form or fashion.
Are there any plans to comprehensively examine these efforts to ensure
(1) that they are working toward a common department goal in a complementary fashion and
(2) that all of the pieces of the complex NPS pollution puzzle are being effectively addressed by the department ?

Response.
Bill :
- need a different bundle of solutions to solve the non-point source problem (vs. point source)
- private landowner piece is critical. Need to improve the education so that they understand the need for conservation.
- one example is that DENR still has problems with sedimentation and erosion control. Very simply, it is not the staff’s efforts but that DENR is not getting the resources to address this issue; program is ‘resource-poor to drive a compliance problem’

Dempsey:
- A positive example is the stormwater program, which is being implemented by DWQ. It will focus on new development in urbanizing areas (towns and counties) and will affect 85+ urban communities in 25-30 counties.
- On the positive side for the Sedimentation Program is that NC controls starting at 1+ acres; many other states still are only at 5+ acres.

Q3. What do you do to relax away from work ?

Response.
Bill :
- jogging and hiking; now lives in Chapel Hill. Taking advantage of the jogging trails in the area.

Dempsey:
- conducts ‘regular’ inspections of the Pamlico Sound and River in the Bath area.

Q4. DAQ needs a Director. Do you have anyone in mind?

Response.
Bill : Yes. - Working on an appointment.

Q5. Several programs have been told that federal program grants will be reduced next year since NC has not spent their federal monies during the last two
years. Other states in similar budget crises are spending their federal monies effectively and will reap the benefits.
What is the Dept’s plan for designing a better system for approving use of federal money - programs are facing long-term negative impact from the
ineffective approval system currently in place that prevents use of available federal monies? ?

Response.
Dempsey:
- Region IV EPA is expecting funding to hold the line for next year
- Active efforts in Budget Office to focus on federal funds
- part of DENR’s strategy to meet the 11% reduction in the General Fund, was the Divisions movement toward Receipts and Federal Funds.


Q6. Will we get a budget we can actually spend and be individually responsible for?

Response.
Bill:
- give you as much discretion as we can; philosophically agrees
- DENR staff has done an exceptional job to get DENR to the best position possible budget wise

Dempsey:
- still waiting for an approved budget from the legislature
- explained how DENR is expected to manage at a level that is 85% of what the budget is expected to be; therefore still quite constrained
- guide statement from Jane Smith is coming out in the next couple of days
- innovation examples :
i) major equipment purchase was done on a multi-year basis. This installment purchase was novel.
ii) bulk purchase of computer this past year saved over 30% of the state
contract price (over the traditional way purchases were made on state contract); saving of $200K.

Q7&8. The current process for obtaining approval for expending federal funds to complete program requirements as specified in EPA approved work plans is time
consuming and tedious (e.g. RE needed to purchase envelopes). Do you anticipate any revisions in the purchase approval process in the near future?
AND
The Request for Exemption [RE] process has served as a cost control measure this past fiscal year. Once the new budget is approved, will divisions be given the latitude to manage expenditures for the remainder of the fiscal year without the RE Form? This would be a welcome improvement even if divisions were told to set aside a certain % for economic problems.

Response.
Bill:
- concern for budget proposals from legislature to fund positions at 96-98%.
DENR and other departments use the salary reserve and lapse salary to handle the unexpected and other standard expenses incurred annually. [Bill gave a list of items that get historically funded out of lapse salary account - - included workman’s compensation claims, etc.]

Dempsey:
- will go away if (i) we can get an approved budget and (ii) there are no directives from Office of State Budget to keep limits and track of particular transactions.


Q9. What do you see as the role of information technology and specifically geographic information systems in helping DENR reach its goals and visions?

Response.
Dempsey:
- Need geographic information systems to manage various projects

Bill :
- DENR is a recognized national leader in GIS for basinwide planning
- Gov Easley has appointed Dempsey Benton to chair the geographic information council
- Need to work on better relationships with DOT and Commerce so that we are all using the same maps with all the datalayers of importance


Q10. The elimination of the assistant secretaries was to increase responsibility of the division directors, yet particularly the financial decisions and approvals have been almost completely removed from their responsibility. For example requiring REs for everything or travel approvals. How is this consistent?

Response.
Bill:
- this is do to the circumstantial issues of the budget emergency

Dempsey:
- It is not consistent! However we needed to take a step backwards from this management philosophy.

Q11. Given the budget situation how are we going to manage workload and people when we have lost positions and the ones we have are frozen ? Are we going to trade off work we do to meet our capabilities?

Response.
Bill :
- As of July 1 we are hoping to have a little more flexibility to fill positions.
- If we make a state government graph over the last years, it would show a line for declining resources, and rising line for expectations for your program. When the lines get so far apart we cannot get all the program goals accomplished (even with effective management).
- Each Division needs to be focussing the hardest and best work on the key/biggest problems
- Are we set-up to get the job done today? Does a 30-year-old model work?
Need to evaluate.
- Example : 2 inspection per year of each hog farm. Is this needed?
Regulatory requirement, but can we focus our work better and more efficiently to work on problems?.

Dempsey:
- Key is communication; in all directions; up and down. Staff to Directors, Directors to Senior Mgmnt, Senior Mgmnt to Governor


Q12. We need to make decision on workloads before we fail and before we get negative criticism from the legislature and the public? Staff failure will reduce morale. How do we make sure we do make these decisions proactively?
Response.
Dempsey:
- Agree. Need to do advance thinking and communicate to Senior Mgmnt.

Q13. If additional cuts are required over the next few years, what approach will you take to accomplish those reductions?

Response.
Bill:
- impossible to know what will be required
- we are thinking about the staff in each of the decisions to date and will continue to do so.

Dempsey:
- we have currently used the ideas from the DENR staff to create the budget projections of a decrease of 11% for 2002-03. Had a total impact of 34 filled positions and the majority was in Parks. Division tied these losses directly to service adjustments and thus made service adjustments to the parks. This demonstration of loss of service had an affect on the legislature.
- Others are proposing to increase fees and to adopt ‘fee for service’ where appropriate.

Q14. Who is your favorite poet and why?

Response.
Bill: William Blake. But also like Robert Frost and Tennyson. State he has been thinking about the Robert Frost poem, “The Road Not Taken”. At then Bill recited from memory the poem.

http://www.bartleby.com/119/1.html

“ The Road Not Taken”

“TWO roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.”


BREAK.

Q15. What is the role of Senior Field Officers?

Response.
Bill :
- Several years back the Legislature reduced the number down to 4. In addition to the regular regional tasks, each should have a area of focus
- What should their roles be? Send in suggestion and comments. Also what role should the regional offices have? Is our regional office organization set up best to serve the state?

Dempsey:
- Some areas of focus for the Senior Field Officers might be Pamlico-Tar Basin, Environmental Justice, and/or Better Permitting/One-Stop Permitting.

Q16. Considering the environmental awareness of NC citizens and the stringent conditions we permit most facilities for any type of discharge, why is it we (DENR) are so lenient on agriculture (to include animal) operations?

Response.
Bill:
- Exemptions are written into the law of the State
- DENR has been focussing on livestock operation
- DENR has developed an enforcement program that is firm, fair, and effective; there is not intent to operate an enforcement program that is lenient to agriculture
- pointed out the relationship to the book “Silent Spring” by Rachel Carson


Q17. These are difficult budget times. We had been previously encouraged to be creative in the use of our money. Now the budget is more restrictive than before. Has DENR hunkered down to all no creativity?

Response.
Bill:
- Send us your ideas on how we can be creative.

Dempsey:
- The emergency of the moment has gotten us into a regimented status


Q18. What is DENR doing now that the DENR Safety Officer has been riffed and the position is not filled. Is DENR in violation of federal or state regulations by not having this position filled? How are we addressing the OSHA violations against the agency?

Response.
Bill
- The vacant position is being discussed with Harlan Frye’s office. Not aware of the violation of a regulation by having the position vacant.

Dempsey:
- Need a safety presence at the Department


Q19. How can we get DENR employees to be environmental stewards at work and home by encouraging increased car pooling, water conservation, and practicing
reduce-reuse-recycle?

Response.
Bill:
- Agree with the concern. Need to share ideas on how to make this change.
Posed question to Laird Davison who stated that in Wake County we are recycling more than ever before. Now have a contractor handling the materials. Cannot find a contractor in Asheville and Fayetteville. It does cost money to have these contracts.

Another question was asked about how do we get other Departments to recycle. It appears that DENR does do recycling while other state agencies do little to nothing. Finger pointed at DOT and AG’s Office for not copying two-sided. Also pointed out that DENR’s recycling is far from perfect (if you witness the trash cans being thrown out in the evening by the janitorial crew).

Bill asked again, how do we get these other groups to recycle. And also stated this might be one of DENR’s goals to get the rest of the state’s departments to reduce-reuse-recycle.

Q20. How can we hold people accountable when we are trying to hold the line on work? It is a situation now of a poor employee is better than no employee.

Response.
Bill:
- One suggestion is to create an accountability contract with the employee

Dempsey:
- This is a management issue. Evaluate the employee and try to make them more efficient. They are our challenge as managers. There are two options - Maintain the status quo OR Proactive engagement to get them back on track.

Q21. We see that at the Archdale Building there is security with a guard booth. Yet at the Parker-Lincoln Building there is no security and there is need because of theft of personnel and state property. What is being done?

Response.
Bill:
- Had Laird Davidson speak to this issue and he stated that an outside consultant evaluated the situation and recommend that Parker-Lincoln have a security program. This is the only DENR leased space in Raleigh where this will occur. There will be card readers and door alarms, but Laird challenged
to group by saying all this is useless if we have people propping open doors for smokers.

Q22. Lease rates are continually increasing for DENR rental space yet the newspaper states that the lease rates are decreasing in Raleigh. Why are we paying increasing rates especially for the Parker-Lincoln Building?

Response.
Dempsey:
- This is not exactly true. DENR is not leasing on a year-to-year basis at Parker-Lincoln. We had a seven year lease followed by a three year extension. Committed until June 2005.

Bill:
- DENR is investigating the prospect of a new building to get the DENR Raleigh folks out of lease space. Maybe create a Green Building like this EPA Green Building.


Chris Russo summarized three areas on the board that were related to a call for ideas and suggestions to be sent to Senior Management. For each of these areas, send written comments to either (i) the Manager’s Forum e-mail address or
(ii) to Jimmy Carter as part of his Operations role.

These areas are:

(1) Creative Budget?? {{{Chris I did not get these written done}}}

(2) Role of Senior Field Officers? Role of Regional Offices??

(3) ???

Meeting was adjourned. Following a quick lunch at the EPA cafeteria, there were tours of the EPA Green Building.
For more information on the EPA Green Building go to the websites:
http://www.epa.gov/oaintrnt/facilities/rtp.htm OR http://www.epa.gov/rtp/new_bldg/newcampus.htm