A Private Charitable Trust

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• A Private Charitable Trust
• Manage and Distribute Assets from a Natural
  Resource Damage Settlement

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HISTORY

• LARGE PUMPED STORAGE HYDROELECTRIC FACILITY
• FEDERAL LICENSE AND STATE LEASE REQUIRED MEASURES
  TO PROTECT FISH

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LUDINGTON PUMP STORAGE FACILITY
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LEGAL ISSUES

• LARGE FISH KILLS
• NATIONAL/STATE CONSERVATION GROUPS - FERC AND IN
  FEDERAL COURT ACTIONS
• STATE FILED IN STATE COURT
• FEDERAL GOVERNMENT AND INDIAN TRIBES CLAIMED
  DAMAGES

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SETTLEMENT AGREEMENT

• STATE COURT CONSENT AGREEMENT- CONTINGENT ON FERC
• SEASONAL NETS - REDUCE FISH LOSSES
• PAYMENTS FOR PAST AND FUTURE FISH LOSSES
• TRUST TO PROVIDE MITIGATION

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WHY A PRIVATE TRUST?

• NUMEROUS LITIGANTS/CLAIMANTS
• CASH COMPONENT LARGE
• NO PARTY TO ACTION WILLING TO VEST SOLE CONTROL
  TO STATE OR FEDERAL AGENCY

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WHAT IS THE TRUST?

• PRIVATE CHARITABLE FOUNDATION
• COURT SETTLEMENT
• GUIDED BY BOARD AND SETTLEMENT AGREEMENT / TRUST
  INSTRUMENT
• GRANTS TO MITIGATE FISH LOSSES
• MANAGED BY A PRIVATE FIRM

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Grand Traverse Band of Ottawa and Chippewa Indians
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SCIENTIFIC ADVISORY TEAM
Michigan Department of Natural Resources
United States Fish and Wildlife Service Grand
Traverse Band of Ottawa and Chippewa Indians
Michigan United Conservation Clubs National
Wildlife Federation
AND
Little River Band of Ottawa Indians Little
Traverse Bay Bands of Odawa Indians
Chippewa-Ottawa Treaty Fishery Management
Authority
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GREAT LAKES FISHERY TRUSTBasic Structure
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SOURCE OF GRANT DOLLARS

• PAST DAMAGES TO FISH - 10,000 ACRES OF LAND 10
  MILLION DOLLARS
• ANNUAL PAYMENTS FOR FISH LOSSES (APPROX. 2.5
  MILLION/YR)
• PAYMENTS UNTIL 2019 (FERC LICENSE PERIOD)
• CURRENT ASSETS 25 MILLION

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WHO CAN GET GRANTS?

• LOCAL GOVERNMENTS
• COLLEGES AND UNIVERSITIES
• NON-PROFITS (501c3)
• STATE FEDERAL AGENCIES
• INDIAN TRIBES

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TYPES OF GRANT PROJECTS

• FISHERIES RESEARCH
• REHABILITATION OF FISH POPULATIONS
• GREAT LAKES EDUCATION
• FISHERIES HABITAT RESTORATION
• FISHING ACCESS - GREAT LAKES
• SPECIAL PROJECTS

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FISHERIES RESEARCH
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POPULATION RESTORATIONLake Sturgeon Prototype
Spiral Fish Ladder
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EDUCATION Curriculum, Interpretive Programs,
Displays
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Great Lakes Shore Fishing Access
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FISHING ACCESSShore Fishing Facilities
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SPECIAL PROJECTS

• SPECIAL PROJECTS
• Control of Exotic Species Introductions
• Sturgeon Research Conference
• Watershed Initiative
• Demonstration Dam Removal

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SUMMARY

• 25 MILLION IN ASSETS
• 10 MILLION IN GRANTS (35 Projects)
• 4-8 MILLION GRANTS / YEAR
• INCOME 2.5 M/YR

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GREAT LAKES FISHERY TRUSTFunctional Organization
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RESPONSIBILITIES OF BOARD

• APPROVE SALE OF LANDS
• INVEST / MANAGE ASSETS
• MITIGATION GRANTS
• CONTRACT FOR MANAGEMENT SERVICES
• OTHER FIDUCIARY RESPONSIBILITIES

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RESPONSIBILITIES OF SAT

• ADVISE THE GLFT
• Grant requests
• Land matters (conservation easements)
• Strategic planning
• EXERCISE SEPARATE AUTHORITY
• Calculating annual fish damages
• Signing-off on FERC requirements
• Investigate technologies to minimize fish losses

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RESPONSIBILITIES OF MANAGER

• IMPLEMENT STRATEGIC PLAN
• MANAGE / SELL PROPERTIES
• SOLICIT / MANAGE GRANTS
• PROVIDE PUBLIC INFORMATION
• RECOMMEND POLICY / PROCEDURES
• RECOMMEND / IMPLEMENT MANAGEMENT CONTROLS

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WHY DOES THE TRUST WORK?

• FINANCIAL SECURITY
• CLEAR MISSION
• BENEFICIARY PARTICIPATION
• ENFORCEABLE MANDATE
• STABILITY

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FINANCIAL SECURITY

• INITIAL ASSETS HIGH
• ANNUAL PAYMENTS - SOURCE OF INCOME FOR 25 YEARS
• PRUDENT INVESTMENTS - OPPORTUNITY TO INCREASE
  ASSETS

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CLEAR MISSION

• SETTLEMENT AGREEMENT - PURPOSE
• TRUST INSTRUMENT - STRUCTURE / DECISION MAKING
• STRATEGIC PLAN SETS GOALS/OBJECTIVES

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BENEFICIARY PARTICIPATION

• BENEFICIARIES - PEOPLE OF THE STATE WHO USE THE
  GREAT LAKES
• STAKEHOLDER ORGANIZATIONS MEMBERS OF THE BOARD /
  SAT
• PUBLIC INFORMED OF GLFT ACTIVITIES / FUNDING

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LEGAL MANDATE

• ALL PLANTIFFS ON THE BOARD
• ALL PARTIES ON THE SAT
• SETTLEMENT ENFORCEABLE BY ANY PARTY
• INDEPENDENT OF STATE/FEDERAL GOVERNMENT

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STABILITY

• GLFT IN PERPETUITY - MANAGED TO BE LIQUIDATED BY
  2020
• ASSETS MANAGED FOR LONG TERM
• STAFFING BASED UPON PROGRAM SIZE

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PRIVATE TRUST APPROPRIATE LTS OF CONTAMINATED
SITES?

• PRIVATE SITES WITH PRPs
• YES, PROVIDED
• Sufficient funding
• Clear purpose / legal mandate
• Local stakeholder involvement/participation
• YES, FOR PRIVATE SITES WITH CERCA FUNDING
• Same caveats

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PRIVATE TRUST APPROPRIATE LTS OF CONTAMINATED
SITES?

• FOR DOE OR DOD SITES?
• PERHAPS, IF ISSUES CAN BE RESOLVED
• Long Term Funding
• Public Accountability vs Political Independence

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CONCLUSIONS

• PRIVATE TRUSTS CAN PERFORM A VARIETY OF FUNCTIONS
  
• OFTEN MORE EFFICIENT THAN GOV.
• CAN BE MORE RESPONSIVE TO STAKEHOLDER CONCERNS
• LESS SUBJECT TO PARTISAN OR ECONOMIC CONSTRAINTS
• HAS LIMITATIONS