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Review of Department of Natural Resources’
Management of State-Owned Aquatic Lands
Proposed Final Report
Joint Legislative Audit & Review Committee
June 18, 2008
Joy Adams, Ruth White, John WoolleyJLARC Staff
June 18, 2008DNR's Management of State-Owned Aquatic Lands 2
Review Directed by 2007-09 Operating Budget Proviso
Directed to include:
1. DNR’s role and resources;
2. Compliance with legal obligations for managing state-owned aquatic lands; and,
3. Comparison to other organizations: we look at the principles of sound asset management.
First of two reports today
Ove
rvie
w
Report page 3
June 18, 2008
Ownership of Aquatic Lands in Marine Areas – Tides are the Key
Upland
Ordinary High Tide
Extreme Low Tide
Tid
al R
ange
Bedland
Tideland
Source: DNR.
Usually private ownership
State or private ownership
State ownership
His
tory
and
DN
R’s
Rol
e
Report pages 5-6 DNR's Management of State-Owned Aquatic Lands
June 18, 2008
Ownership in Navigable Rivers and Lakes: Line of Navigability is Key
Upland
Shoreland
Line of Navigability
Freshwater Bedland
Bed of River or Lake
Line of ordinary high water
Shore-lands
Shore-lands
Source: DNR.
State or private ownership
Usually private ownership
State Ownership
His
tory
and
DN
R’s
Rol
e
Report pages 5-6 DNR's Management of State-Owned Aquatic Lands
June 18, 2008DNR's Management of State-Owned Aquatic Lands 5
DNR’s Aquatic Resources Manages the 2.6 Million Acres of State-Owned Aquatic Lands
2005-07 expenditures of $29.8 million, equals 8% of $381 million DNR operating expenditures
DNR authorizes various uses of the landsLease lands and manage leasing process;
monitor ongoing land usesManage and monitor state geoduck harvest
Other statewide programs and activitiesClean up environmental contaminationRemove derelict vessels Conduct scientific monitoring
His
tory
and
DN
R’s
Rol
e
Report pages 9-12
June 18, 2008DNR's Management of State-Owned Aquatic Lands 6
Money From Using the Land Pays for Managing the Land
Revenues Generated from State-Owned Aquatic Lands, 2005-07 Biennium
Source: JLARC analysis of DNR data.
Leases$16.8 M
Geoduck$21.5M
Other$3.3 M
8%
40%
52%
Total: $41.6 M
His
tory
and
DN
R’s
Rol
e
Report pages 9-12
June 18, 2008DNR's Management of State-Owned Aquatic Lands 7
DNR Does Not Fully Comply With Specific Statute in Three Areas
Com
plia
nce
Topic Areas and Specific Statute
Report pages 13-15
Summarized specific statutes into eight topic areas, each with multiple sections of statute
Complying in five of eight areas, not complying with three specific statutes:
Leases: Nonwater-Dependent Lease RatesEasements: Public Utility Fee CollectionEnvironmental Issues: Plastic Debris Action Plan
June 18, 2008
Statute Also Has Broad Direction: “Four Plus Benefits”
DNR to provide a balance of: Encouraging direct public use and access; Fostering water-dependent uses; Ensuring environmental protection; and Utilizing renewable resources.
When consistent with above, revenue generation also considered a public benefit: the “Plus.”
DNR activities fall in all Four Plus categories. Not able to measure if they are balanced.
Report pages 19-20
Com
plia
nce
DNR's Management of State-Owned Aquatic Lands
June 18, 2008DNR's Management of State-Owned Aquatic Lands 9
Complying with the Principles of Sound Asset Management
Reviewed literature to find benchmarks or best practices in the management of public property assets
Five common threads:1. Know where the asset is?2. Understand legal mandates?3. Know the condition?4. Preserving the capacity?5. Establishing clear goals?
Ass
et M
anag
emen
t
Report Pages 22-25
Yes
Yes
Limited
In Process
?
June 18, 2008DNR's Management of State-Owned Aquatic Lands 10
Recommendation for Asset Management: Condition
Knowing current condition is a key to sound asset management.
DNR’s knowledge, while increasing, is limited.
Report pages 27-28
Recommendation: DNR should develop a feasibility study to identify time and resources needed to determine condition of state-owned aquatic lands. Study should include the framework DNR intends to use to define condition. [DNR report due: June 2009]
Rep
ort
Rec
omm
enda
tion
DNR and OFM Concur
June 18, 2008DNR's Management of State-Owned Aquatic Lands 11
Recommendation for Asset Management: Strategic Plan
Aquatic lands not a fiduciary trust with trusts’ clearer goals
Clear & measurable goals needed to manage aquatic lands asset
Rep
ort
Rec
omm
enda
tions
Report page 28-29
Recommendation: DNR should develop a strategic plan specific to aquatic resources. The plan should include measurable goals and performance measures, and how DNR is balancing the Four Plus benefits. [DNR report due: January 2009]DNR and OFM Concur
June 18, 2008DNR's Management of State-Owned Aquatic Lands 12DNR's Management of State-Owned Aquatic Lands 12
Recommendation for Complying with Statute: Nonwater-Dependent Leases
Statute directs DNR to set fair market value in accordance with appraisal techniques for nonwater-dependent leases.
DNR negotiates rents that are different from the appraised value.
Rep
ort
Rec
omm
enda
tion
Report page 29
Recommendation: DNR should clarify what is required to arrive at fair market value. If techniques other than appraisal are required, DNR should report any needed changes. [DNR report due: November 2008]
DNR and OFM Concur
June 18, 2008DNR's Management of State-Owned Aquatic Lands 13DNR's Management of State-Owned Aquatic Lands 13
Recommendation for Complying with Statute: Fees for Public Utility Easements
Statute directs DNR to collect fees for public utility easements: DNR does not collect the fee for public utility easements if it has not determined ownership.
Report page 29
Recommendation: DNR should collect the fee for easements and report to Legislature how this will be accomplished, including barriers, costs and benefits of enforcing fee collection, and administrative costs to collect fees. [DNR report due: November 2008]
Rep
ort
Rec
omm
enda
tion
DNR Partially Concurs: establishing ownership OFM Concurs
June 18, 2008DNR's Management of State-Owned Aquatic Lands 14DNR's Management of State-Owned Aquatic Lands 14
Recommendation for Complying with Statute: Plastic Debris Action Plan
Statute directs DNR to coordinate and implement the plastic debris action plan; DNR does not.
Report pages 28-29
Recommendation: DNR should coordinate and implement the plastic debris action plan and report to the Legislature on how this will be accomplished. [DNR report due: November 2008]
Rep
ort
Rec
omm
enda
tion
DNR Partially Concurs: update plan before implementation OFM Concurs
June 18, 2008DNR's Management of State-Owned Aquatic Lands 15
Contact Information
Joy Adams (360) [email protected]
Ruth White (360) [email protected]
John Woolley (360) 786-5184 [email protected]
www.jlarc.leg.wa.gov
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