STATE OF THE REGULATING DISTRICT
Glenn A. LaFave, Executive Director
January 14, 2008
Board Meeting - Albany, New York

Members of the Board:
In recent years, at the January Board Meeting, it has been a tradition at the Regulating District for the Executive Director to report to the Board on the “State of the Regulating District”.  The formal annual report (General Report) presented to you during today’s organizational meeting covers our prior fiscal year, July 1, 2006 to June 30, 2007.  This informal report is my retrospective of the previous calendar year and a look into 2008.
The 2005 Public Authority Reform Act contained mandates, and was followed with recommendations, for Board members and agencies, public authorities and public benefit corporations like the Regulating District.  In 2007, the Board established nine Board committees.  Each Board member chairs one of the committees and serves on at least two other committees.  This has allowed the Board to work more efficiently and effectively as members develop an expertise in different areas of the Regulating District’s governance, administration and operation.    Although the board members receive no compensation, all of you volunteer your time to prepare for and attend board meetings and other public meetings, some of you taking time off from your work.  I commend you for your diligence and dedication.
As we finish the first year of working closely with Governor Spitzer and his administration, there are new people in many NYS agencies.  The Regulating District continues to work closely with the Governor’s Office, Department of Environmental Conservation, Adirondack Park Agency, State Historic Properties Office and Department of Transportation.  We make every effort to comply with all Executive Orders, applicable laws, rules and regulations.  To act in accordance with Governor Spitzer’s “Executive Order No. 1:  Establishment of Ethical Conduct Guidelines”, the Board amended the Regulating District’s Code of Ethics, Computer Technology Acceptable Use Policy and Vehicle Policy.   Recently, we hired new employees who were introduced today.  Our hiring process, from job posting to Board appointment, was consistent with “Executive Order No. 2:  Eliminating Politics from Government Decision Making”, specifically, section 4.  Prohibition Against Consideration of Politics in Employment and Contracting.  In July, the Board began web casting all regular, special and committee meetings of the Board in accordance with “Executive Order No. 3:  Promotion of Public Access to Government Decision Making”.  The Regulating District Board operates in a manner that promotes predictability, accountability and transparency.
Our management staff works to keep informed and be consistent with other components of NYS government. The Executive Director and appropriate members of the senior staff attended the NYS conferences on Leadership and Accountability, Procurement, and Internal Controls.  The Regulating District was a member of the Statewide Planning Committee formed to update the State’s Multi-Hazard Mitigation Plan, coordinated by the NYS Emergency Management Office.
2007 was a year of challenges.  A year ago, I spoke to the Board about a major storm and precipitation event.  That rainfall set records that had been established in the 1700’s.  In contrast, this year we look back on a summer with little rainfall and drought.  As some reservoirs throughout the country were dry or so low that they could not release water, we were able to operate our reservoirs to meet our legislative mandate of flow augmentation.  Without our river regulation, the flows in the Hudson and Black Rivers would have been significantly lower and the effects of the drought would have been greater.  We were successful due to the competent operations performed by the Regulating District’s management and staff.
The Regulating District was challenged when a Dow valve in the Conklingville Dam malfunctioned.  This repair project, including the remediation and maintenance of the other valves, was the largest single capital project undertaken by the Regulating District since the initial construction of our dams.  Recognizing that many of our dams and related facilities are decades old, the Board developed the Regulating District’s first Capital Project Plan.  This Plan will be a valuable tool to identify, prioritize, design, finance and schedule future projects.
At Great Sacandaga Lake, our program for erosion control and shoreline stabilization is a Regulating District priority and mandate of the Federal Energy Regulatory Commission.  This year, our staff placed more rip rap than ever before, repairing 8429 feet of shoreline, approximately 1.6 miles, and depositing 5918 tons of stone. 

2007 was a year of transition as the Board made substantial progress on initiatives commenced earlier that we expect to complete this year or in the near future.  We continued the rule revision process for the permit system rules at Great Sacandaga Lake, following procedures established in the State Administrative Procedure Act with oversight and guidance from the Governor’s Office of Regulatory Reform. Last year, the Regulating District participated in twenty-five meetings of its Advisory Group, other stakeholder groups or the public in general to incorporate input from all of the stakeholders regarding the use of these lands of the State of New York.  Due to time constraints and regulatory requirements, the rulemaking was extended.  Tentatively, the Board hopes to implement the new rules in 2009, with the exception of permit system fees which are frozen until 2010. 
Our Annual Financial Audit by the independent auditor was favorable.  We are in full compliance with current New York State mandates.
 The Regulating District was audited by the NYS Office of the State Comptroller regarding our Freedom of Information Law (FOIL) responses and we were found to be compliant.  In fact, in an editorial printed in the Albany Times Union, the Regulating District was one of only two State organizations recognized for exemplary response to FOIL requests.   
In closing, I think of a statement by the great UCLA basketball coach, John Wooden, who once said, “Goals achieved with little effort are seldom worthwhile or long lasting.”  This Board’s 2007 efforts reflect Coach Wooden’s belief, as you have worked hard to keep the Regulating District on a course of good governance and the results of your efforts are worthwhile and will be long lasting.  With your competent leadership, 2008 holds great promise.
Thank you.