Reforestation of Timberlands Board Meeting Minutes
Department of Forestry Central Office
Charlottesville, Virginia
March 27, 2008
Chairperson Ann Duff called the meeting to order at 10:00 am. Board members present were Ann Duff, Earl Pickett, Grant Cosner, Ken Morgan, Charles Rose, Cliff Somerville, Jim Kuykendall, Mark Martin. Department of Forestry personnel in attendance were Carl Garrison, State Forester; John Carroll, Deputy State Forester; Ron Jenkins, Assistant State Forester for Planning and Budget; Brad Williams, Assistant State Forester for Administration; Dean Cumbia, Director of the Forest Resource Management Division; Todd Groh, Assistant Director of Forest Resource Management Division; Greg Winston, Regional Forester; and Becky Woodson.
Ann Duff reminded everyone of the Sherman Anti-Trust Act requirements forbidding discussion of prices and markets between attendees at the meeting.
The minutes of the September 13, 2007 meeting were reviewed and a motion was made by Mr. Pickett to approve the minutes as presented. The motion was seconded by Cliff Somerville and approved by the entire board.
Carl Garrison provided a DOF agency overview for the Board and handed out the Legislative Tracker. He noted that the gray areas didn’t pass and the yellow areas were passed.
- Page 2, HB 1115: sponsored by Watkins Abbitt - The old Code of Virginia had not been updated regarding collecting suppression costs from counties.
- Page 3, HB 1214: sponsored by Roslyn Tyler – proposed to increase the minimum requirement for initiating the bid process from $10,000 to $50,000 for state-lands timber sales. This change would help facilitate quicker removal of timber in insect and disease and other emergency situations.
- Page 5, HB 1437: sponsored by David Bulova – Urban tree canopy for developers; address green infrastructure and air abatement issues.
- Page 7, SB 308: sponsored by Reynolds - clarify DOF’s right of entry onto private property for monitoring water quality on logging jobs.
- Page 7, SB 367: enhance retirement for forest firefighters – this was not passed but helped raise the awareness of the agency’s activity regarding wildfire.
- Page 12, SB 679: sponsored by Reynolds – Volunteer Fire Department’s (VFD) right to collect suppression costs from county; will continue to work on this issue, passed to allow localities to collect. Original bill required DOF to pay VFD; then DOF would be tasked to collect from the locality.
- Page 14, SJR 96: sponsored by Ticer – would require the Board of Forestry (BOF) and DOF to study ecosystems services and provide a report of findings and recommendations at a specified time. DOF has been researching ecosystem services for the last year and a half, but it is a continually evolving process and at this time it cannot be held to a finite timeline. “Ecosystems services” is defined as intangible services, clean air, clean water, wildlife habitat, carbon sequestration, etc. that forests provide to us, and in general, forest landowners provide for the public that they are not compensated for.
State Budget Discussion by Carl Garrison – two handouts
Due to statewide revenue shortfalls, the DOF has been required to make a 5% reduction in its 2008 budget and 5.5% for the biennium 2009-2010 budget. DOF cut $853,000 over three years. The Senate and House budget varied. The House claimed carry over funds of $685,000. By the time the General Assembly met, most of the $685,000 was spent by VDOF.
The Senate version of the bill was more friendly. Regarding the disposition of possible cell tower funds, the Senate decided that if VDOF put these funds into land conservation, VDOF could retain the funds. Mr. Rose supports the cell tower as they keep the lines away. Mr. Cosner asked as this was state property; did the DOF have to abide by the Albemarle county ordinance? Based on the DOF communications with the telephone company, we are not aware of any ordinance that is being overlooked.
A Bond package submitted for land acquisition is not a done deal yet and will be brought up again in a special session.
The House budget bill proposed taking $500,000 from the Reforestation of Timberlands (RT) general fund match each year in the 2009-2010 budget, but the Senate left the matching fund unchanged. The bill was discussed in the joint Senate/House conference and the Conferees report did not have the reduction. Jim Kuykendall noted that the Conferees thought that most of the RT funding money goes to large timber industry anyway. With some fast footwork and reporting, Carl was able to give figures to the joint conference to support that only a small percentage of RT incentive funding goes to timber industry. The Board wondered if the Conferees were aware of who actually pays the Forest Products Tax anyway. The overall feeling of the board members was that having an acreage cap of 100 acres was helpful in explaining that no one landowner or company receives a large percent of the overall funding. The maximum RT paid out in the 06-07 program year was $4,000, with the average being $2,000. The final decision by the Governor, however, will not be known until signs the bill.
John Carroll gave an update on nursery operations and the tree improvement program. He noted that seedling sales were over 30 million with white pine sold out. He said that hardwoods were hard to move. Mr. Kuykendall asked about whether the DOF ever considered holding an auction for the left over seedlings. The logistics of holding such an auction would be difficult since our seedlings are smaller than many landscaping companies are able to sell and we could not really hold an auction until after the planting season was complete. Mr. Carroll also said that tree planting labor was an issue this year due to the restrictions on immigrant labor. This was a challenge for both nurseries. Garland Gray Forestry Center used prison labor and contract crews to lift and grade the seedlings and will finish lifting this week.
Mr. Garrison said that the DOF is still waiting for final budget approval by the Governor. Ms. Duff asked that the RT Board members be notified once the budget is finalized.
Tree Improvement Program
- DOF still has some 1st generation seed in the freezer and is selling some of it to France through a contact with the Improvement Program Manager, Ones Bitoki.
- Seed from the 2nd generation seed orchard in Georgia will probably be picked one more time then VDOF will probably sell that seed orchard.
- Mr. Carroll said that for the 3rd cycle loblolly orchard, 300 trees had been grafted and will be planted at the New Kent Forestry Center (NKFC) and the Appomattox-Buckingham State Forest (ABSF).
- The first crop of the 3rd cycle orchard was completed two years ago – about 500 bushels of cones were collected.
- DOF is still picking 3rd cycle pine cones at the orchards in New Kent Forestry Center and Appomattox – Buckingham State Forest - DOF expects full production of the 3rd cycle orchard in 2-3 years.
Mr. Carroll thanked the RT Board for their support of the DOF Tree Improvement Program.
Review Items
Todd Groh gave an update on the tax form AD-1034. He said that there had been few last minute hitches, that have been addressed, with converting the form into the Tax Department’s forms and procedures and that the form would not be available for this quarter’s tax cycle. Hopefully it will be available to taxpayers for the next tax quarter. Tax payers will be sent a letter explaining the new tax form and instructions for completing the new tax form.
Budget: (handouts from Todd Groh)
- There is currently $308,000 in RT incentive funds available at the DOF Central Office for allocation to the Regions.
- Each program year the landowner incentive funding is divided in Regional allotments. In most Regions the funding is then divided and allocated to each county. Todd has stressed to the Regional Coordinators that they should search their counties for available funding in their Region first, and then request additional funding. This process makes RT easier to implement and keeps RT streamlined.
- Todd reviewed the FY 07-08 Regional allocations and discussed the potential carryover.
- The Region 6 potential RT carryover is larger than expected due to the fact that herbicide release work is conducted every other year, and the 2007-08 is a year with no release spraying. Future allocation will reflect the herbicide work every other year. Currently there are an estimated 467 acres to be released this year
- The DOF has also been able to better utilize federal funding this year in the Environmental Quality Incentive Program (EQIP), $700,000+ which in turn has and effect on RT sign ups.
- Dean noted that there has been a news release sent to the Southside news outlets promoting the RT Program to help in obligating as much of the RT funding as possible.
Information Discussion
Term Expirations
It was agreed by the Board members to let Mr. Pepper’s term expire in June 2008. Todd stated he has queried DOF Regional personnel about replacement for Mr. Pepper and asked Board members for their suggestions as well. It was asked: do we query the Virginia Forestry Association? Todd indicted that he neglected to make the request at this time, but would do so. It was noted that Mr. Morgan should be in the Pine Lumber category and that the replacement should be in the Pine Pulpwood category. The change will be made in the Board member list and the DOF will seek nominations for the Pine Pulpwood representative category. Mr. Kuykendall asked if the candidate needed to be an industry person that perhaps a logger or lumber producer could fit also. There is no specified requirement for the position, just that they be within the pulpwood producing “industry.” Board members are reminded to let Todd Groh know if you know of a new candidate for the Pine Pulpwood category.
Mr. Kuykendall and Mr. Cosner both agreed to their reappointments and have submitted an updated biographical sketch to the DOF. This information would be forwarded to the governor’s office for final appointment.
Ann Duff explained that the RT Board Chair position is voted on annually and brought up for nominations at the spring meeting. Therefore, Ann asked if there were any nominations for the 2008-09 Chair position. Mr. Morgan nominated Mr. Kuykendall for Chair which was seconded by Mr. Rose. Mr. Martin suggested that the nominations be closed. Ann Duff called for a vote, and Mr. Kuykendall was unanimously elected as RT Board Chair for 2008-09. Everyone thanked Ms. Duff for her hard work and commitment as Chair.
Mr. Morgan asked whether the RT Board has ever elected a Vice Chair, to fulfill the Chair duties in their absence. The members thought that it was a good idea so Mr. Morgan nominated Mr. Somerville, who agreed to serve as Vice-Chair, with a second by Mr. Rose. Ms. Duff called for vote and Mr. Somerville was unanimously elected as Vice-Chair.
Decision Items – Projected Budget 08-09
Todd noted that some of the RT rates will be increased for 2008-09. It was asked when the last time the loblolly and VA pine planting rate was increased. Dean noted that the rate was increased in program year 06-07 from $22 to $25.
Todd described the contractor led herbicide site preparation and release spray program to the Board. He said there will likely be three contracts and that the DOF was working on the contracts now.
Mr. Martin asked if the increase for site preparation and planting was enough. He stated that good site preparation is what makes good pine production and that the RT incentive really encourages the landowners to do good site preparation. Mr. Morgan and Mr. Kuykendall both agreed with Mr. Martin that site prep makes a difference. Mr. Morgan stated that if fuel continues to increase the actual RT incentive is less of an encouragement to landowners. Dean Cumbia said that we would also expect to see planting labor costs to increase based upon the federal immigration H2B program cap that was reached early in the 2007-2008 year. Ms. Duff asked Todd to notify the Board when the final 2008-09 rates are finalized.
Dean discussed increasing the maximum acreage limit for RT project. He said that the maximum was 500 acres until 2001 when it was reduced to 100 acres. He stated that we need to spend the RT funds as completely as possible. Ms. Duff asked it we had received any feedback from the DOF field personnel about increasing the acreage and Dean said the field was generally not in favor. Mr. Kuykendall asked if there had been complaints about the 100 acre cap. Todd mentioned that he has not heard any specific complaints from the field, probably because the acreage cap has been around for numerous years and it has been accepted.
Mr. Morgan asked the percentage of harvested area over 100 acres - Dean will get figure. He noted that in 2001, 16% of projects were > 100 acres and in 2007, 7% of projects were > 100 acres. The average size project is 39 acres. Mr. Winston agrees to increasing to 150 acres on a one-year cycle and evaluate each year. Ms. Duff asked the Board if they were comfortable with the increase. Mr. Garrison suggested to compare money to reducing acres and rates. Dean said more analysis needs to be done and suggested increasing the rates only this year and re-evaluate increasing acreage for next year. Dean and Todd will bring acreage figure for discussion at the September meeting.
Next Meeting: September 11, 2008
The location of the next Board meeting was discussed. It was suggested to visit a pellet plant, Ann Beals’ farm or Potomac Supply. Mr. Morgan suggested a renewable fuel plant in Hurt Virginia and Mr. Martin agreed to check on the possibilities of holding the next meeting there.
The business meeting adjourned at 12:15 p.m.
The group had lunch at the Elks Lodge in Charlottesville, compliments of Mr. Cosner. The Board then toured Mr. Cosner’s property in Albemarle County.
Submitted by:
Todd Groh
Forest Resource Management Division
March 28, 2008
Approved: Dean Cumbia, Director
Forest Resource Management Division
Last modified: Monday, 19-Oct-2009 14:58:52 EDT
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