HomeMy WebLinkAbout20001387.tiff STATE OF COLORADO)
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OFFICE OF THE EXECUTIVE DIRECTOR
Denarrmr nl of Natural 1302 Resources
1 i1 3 Sherman Street, Room 718(Ucnvr i Colorado 802(13
Phone i 40 11 866-3 31 1
TDD. ,3()31 866-3543
Fax.I3031 '166-2115 I)f.PARI MENT OF
NATU1RAL
May 24, 2000
RESOURCES
Mer,.
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r 1.W.I. I e
Commissioner George Baxter "
915 10th Street
Greeley CO 80632
Dear Commissioner Baxter:
Over the past year and a half, the Wildlife Commission, the State Parks Board, the
Department of Natural Resources (DNR), and the Governor's Office have been working to
resolve the issues raised in a recent audit by the U.S. Fish and Wildlife Service (USFWS) on the
use of sportsperson's dollars in Colorado. This audit is part of a national audit of all fifty states.
Its goal is to assure that state or federal hunting and angling dollars are spent for wildlife
management purposes.
In order to comply with the recommendations of the audit, it is necessary for State Parks
and the Division of Wildlife (DOW) to develop resolutions for sixteen properties owned by the
Division of Wildlife that have State Park recreation activities. Our goal is to resolve the audit
issues without transferring funds between these two agencies. Further, this resolution will not
affect public access or public use of these properties; nor will it affect relationships with local
governments.
I have included several documents for your information. Attachment I contains a
problem summary outlining the scope of the audit; background on previous audits and prey ious
federal approvals of state actions dating back over 25 years; a summary of the resolution plan
concepts; the impacts of the plan; and the position of the U.S. Fish and Wildlife Service.
Attachment II contains the joint resolution by the Wildlife Commission and the State Parks
Board outlining the parameters of a resolution plan. Attachment III contains the property
transactions specific to your area.
This issue is not new to the Colorado General Assembly. It has been discussed in audits
of the Division of Wildlife by the State Auditor's Office, in State Parks briefings with the Joint
Budget Committee, and in discussions with the Legislative Audit Committee and the Joint House
and Senate Agriculture Committee.
Board of Land Commissioners • Division of Minerals rs Geolo,gy/Geolog' J ,ui e-V
(lil &Gas Conservation(-ommission • Colorado State Parks • Soil C onservati e 3, and
Water Co men anon Board • Division oI Water Resources • Div ) h , -r
'12000-1387
Last October DNR committed to the Legislative Audit Committee that this complex
process would be completed by April 2002. In June, the Department will be presenting the
resolution package for this audit to the Capital Development Committee. It is my goal to
implement this resolution package this calendar year so that the two agencies can move forward
with their respective responsibilities in compliance with federal statutes.
To be successful, the state must provide a unified position for a single resolution for
this issue. I am requesting your support for this statewide resolution package. In order to
provide the Capital Development Committee with evidence of this concurrence, I would
very much appreciate your signature on Attachment III, or a letter acknowledging that }ou
have reviewed and support this action. Please return that document to me in the enclosed
stamped envelope at your earliest convenience.
If you have any questions, DOW and State Parks will be glad to arrange a briefing. Feel
free to contact Tim Pollard or Ron Cattany in my office at 303-866-3311.
Sincerely,
Greg Watcher
Executive Director
Attachment III
County Specific Issues
Proposed
DNR-DOW-DPOR Federal Aid. Audit Resolution
For
Weld County
As part of the resolution of the 1998 U.S. Fish & Wildlife Service federal aid audit, the
Colorado Department of Natural Resources (DNR), Division of Wildlife (DOW), and
Division of Parks & Outdoor Recreation (DPOR) are proposing the following real estate
transaction in Weld County:
PROPERTY
Barbour Ponds (acres: 122)
Status: Currently owned by DOW, but operated by DPOR as a state park.
Plan: Transfer ownership of all or part of DOW acreage to DPOR for continued
operation as a state park. Any portion retained by DOW would be operated as
part of the state park under a management agreement with DOW.
CONCURRENCE
DOW and DPOR are required to report to the Capital Development Committee that the
Board of County Commissioners has been briefed on the proposed transaction. We
would like to advise the CDC that the Board supports the proposal or is not opposing ii.
We request the Board's written concurrence. ,,
cil '`/ 'L
/Barbara J. Kirkme er (O(,/ Merv)
Attachment II
Federal Aid Audit
State of Colorado
Problem Summary
In January 1998, the Office of the Inspector General for the U.S. Department of the Interior
(Inspector General) issued an audit report that raised a number of issues regarding Colorado's
continued receipt of federal aid under the Pittman-Robertson and Dingell-Johnson Acts. The
issues focused on the Division of Wildlife (DOW) allowing properties purchased with state
fishing and hunting license fees or federal aid grants under the Acts to be managed by State
Parks. Based on this audit report, the U.S. Fish and Wildlife Service (USFWS) has advised thr
State of Colorado that the properties in question must be managed directly by the DOW or
transferred to State Parks in exchange for money or lands of equal value.
Background
The USFWS has conducted previous audits of the DOW over the last 25 years. Until the
Inspector General's Office conducted its 1998 audit, prior program audits—between 1976 and
1998—did not review leases between State Parks and the DOW. The USFWS also had not
reviewed many other DOW leases, the operation of the areas in question, or compliance with the
accounting and record keeping requirements in leases. Most leases between the DOW and State
Parks terminated in 1999.
The Colorado Game, Fish and Parks Department purchased the properties in question prior to
1972 when state statute separated the agency into the DOW and the Division of Parks and
Outdoor Recreation(State Parks). After being separated into two agencies, some parcels of real
property owned by the DOW were leased to State Parks and managed as part of, or as, stale
parks. The 1972 state statute in fact contemplated State Parks' management of these DOW
properties. State Parks has continued to manage the properties, pursuant to these leases.
In February 1998 the USFWS Region 6 Office wrote to the Colorado Division of Wildlife
informing it that, according to the Interior Inspector General, the USFWS needed to ensure that
DOW property and revenue were being used for fish and wildlife purposes. Their concern was
that State Parks was managing properties that were purchased with either Wildlife Cash funds or
federal aid grants as state parks and collected access fees to those properties which were then
used primarily for recreation activities at a level consistent with wildlife purposes.
Based on the Inspector General's audit, the USFWS is asserting that the properties being
managed by State Parks must be transferred to the DOW to the extent they are not being used for
fish and wildlife purposes or replaced with other wildlife properties. USFWS officials have
stated that they do not believe that the existing leases provide the DOW with sufficient authority
to control the operation of the areas. The USFWS also questions whether managing properties as
state parks rather than limited use wildlife areas complies with federal program requirements.
Despite the concerns expressed by the USFWS, it has not as yet declared the State of Colorado to
be in diversion under the federal funding programs, and the state continues to receive federal
funds.
However, if these issues raised in the audit are not resolved, the USFWS may ultimately seek to
declare Colorado ineligible for further grants under the Pittman-Robertson and Dingell-Johnson
Acts and withhold approximately $10 million in grants received by the DOW annually. Without
conceding the validity of any specific claim by USFWS or the Inspector General, the Wildlife
Commission and the State Parks Board have agreed that it is in Colorado's interest to take
reasonable steps to avoid the loss of federal aid grants.
Therefore, Commission and the Board agreed that the state should work to secure title to the
subject DOW properties in the agency most suited to their proper management, to provide for
appropriate compensation if title is transferred, and to work to resolve audit issues at the sixteen
state properties identified in the federal aid audit.
According to the USFWS the state has until April 1, 2002 -- the date identified in the audit -- to
resolve all issues.
Resolution Plan
This cooperative effort that the DNR agencies are undertaking is designed and is being
implemented within the context of the divisions' existing strategic plans approved by their
respective board or commission and the Executive Director's Office. The goal is to protect
Colorado's most critical lands and wildlife habitats while providing an adequate recreation base
for Colorado's growing population. It is also important to remember that the federal laws
guiding this audit apply to both federal aid and state wildlife cash. The federal dollars are
derived from an excise tax on hunting and fishing equipment. The state dollars are derived from
hunting and fishing license fees. It does not apply to GOCO funds.
To implement the resolution plan, the two agencies are undergoing third party appraisals of the
properties to be transferred or used as a credit. Once the value is determined, the following
techniques will be used to vest control of the lands with the appropriate agency:
• Land Exchanges— State Parks supplied the DOW with a list of properties it currently owns
that are available for exchange.
• Reversions -- The Sawhill Ponds and the south half of the Mueller property are being
returned to the DOW.
• Great Outdoors Colorado "Credit" -- When the state acquires a property with non-Wildlife
Cash funds and the property interest is transferred to, or is vested with the DOW, the state
will be allowed a "credit" based on the appraised value of the property interest acquired by
DOW, towards the value of the wildlife properties currently managed by State Parks --
provided the newly acquired property interest is managed, treated and otherwise becomes a
Wildlife Cash property for all purposes. In effect, the non-Wildlife Cash funding credit
used to acquire the property (e.g., GOCO funds) would be transferred to a property
managed by State Parks (e.g., Steamboat Lake) thereby freeing it from federal restrictions;
a commensurate amount of Wildlife Cash funding credit would be transferred to the newly
acquired wildlife property thereby subjecting it to the federal restrictions' . After
application of GOCO credit and commensurate removal of federal restrictions, DOW and
State Parks will negotiate new agreements providing for State Park management.
• Partitions and Consolidations -- Partitioning may be used at properties held in common by
DOW and State Parks and deeds exchanged to consolidate dispersed parcels into separately
owned blocks of contiguous property. Generally, this process involves identifying DOW
"inholdings" in state parks, the partitioning of parcels held in common, and the exchange of
deeds such that the DOW ends up owning and managing a consolidated block of land outside
the new state park boundary that is at least equal to the value of its interests prior to the
exchange. The proposed partitions and consolidations will not be completed until the other
methods of resolving the audit issues are completed.
Impacts
I want to reiterate that our plan is designed and is being implemented within the context of the
divisions' existing strategic plans. Implementing this plan will have no negative impacts on local
governments, citizens, or public use of the properties.
The total costs involved are largely driven by the values established through the appraisal
process. Given the appraised values ascertained to date., we may be several million dollars short
of resolving all the property issues. However, it is possible that more property may be acquired
by the state using GOCO funds prior to the April 2002 deadline, and these funds will be et iunted
as a credit toward resolving any outstanding issues.
While this is a complex process to satisfy the federal laws, it must be placed in context. Tl the
state is declared to be in diversion of wildlife funds (regardless of their source), it would
eliminate the approximately $10 million annually in USFWS funds to the Division of Wildlife.
Those funds represent about 15 percent of the agency budget. So, resolution of the issue is
critical; however, DNR also wants to be clear that it intends to resolve these issues without
significant financial penalties to either DOW or State Parks.
USFWS Position
The regional USFWS office has responded by letter to the joint Wildlife Commission/Parks
Board resolution. The response neither accepted nor rejected the DNR plan. However, a
representative from the USFWS has attended most of the state's meetings and has provided
positive feedback. The USFWS appears to be most concerned about having evidence of progress.
The actions recommended to the Wildlife Commission and State Parks Board, if approved, will
serve as that evidence.
Unfortunately, there are no waiver provisions under the federal laws for the funding programs
involved. In addition, despite the DNR's efforts, the USFWS has indicated it will not agree to
allow the state to continue managing these properties as it has in the past.
The clearest means of ensuring the USFWS' support is to demonstrate continued progress in
implementation of the state's resolution plan.
Attachment II
Joint Resolution of the Wildlife Commission and the State Parks Board
1 Federal Aid Audit Resolution Adopted by the
2 Colorado Wildlife Commission & the Colorado Parks and Outdoor Recreation Board
3 Considered September 1, 1998
4
5 In January 1998, the Office of the Inspector General for the U.S. Department of the
6 Interior (Inspector General) issued an audit report that raised a number of issues
7 regarding Colorado's continued participation in the federal aid programs undo:- the
8 Pittman-Robertson and Dingell-Johnson Acts. The issues focused on the Divisior
9 Wildlife (DOW) allowing certain properties purchased with state fishing and hu-t:ing
10 license fees or federal aid grants under the Acts to be managed by the Division of Par:cs
11 and Outdoor Recreation (State Parks). Based on this audit report, and to in:,ure
12 Colorado's continued participation in the federal aid programs, the U.S.Fish and Wi!.clife
13 Service (USFWS) has advised that the properties in question be managed directly by the
14 DOW or transferred to State Parks in exchange for money or lands of equal value.
15
16 If these issues are not resolved, the USFWS may ultimately seek to declare Colorado
17 ineligible for further grants under the Pittman-Robertson and Dingell-Johnson Acts and
18 withhold approximately $10 million in grants received by the DOW annually. Without
19 conceding the validity of any specific claim by USFWS or the Inspector General., tae
20 Commission and the Board agree that it is in the best interest of the people of Colorado to
21 take all reasonable steps to avoid the loss of federal aid grants.
23 Therefore, the Colorado Wildlife Commission and the Colorado Board of Parks and
24 Outdoor Recreation hereby agree and resolve that:
25
26 1. The state shall meet the requirements of federal law, and maintain the integrity of
27 state license revenue and federal aid funds. The Commission and the Board agree that
28 wildlife cash funds should be used only for appropriate wildlife purposes.
29
30 2. DOW and State Parks staff shall work cooperatively to secure title to the subject
31 DOW properties in the agency most suited to their proper management, to provide for
32 appropriate compensation if title is transferred, and otherwise to work to resolve audit
33 issues at the 16 state properties identified in the federal aid audit. The divisions shall
34 make every effort to complete this process on or before April 1, 2002, the date identified
35 in the audit for the resolution of all issues. This cooperative effort shall be designed and
36 implemented within the context of the divisions' existing strategic plans for preserving
37 Colorado's most critical lands and wildlife habitats, and implementing these strategic
38 plans shall remain among the divisions' top priorities.
39
40 3. To implement this joint resolution, the divisions are directed to take the following
41 specific actions:
42
43 a. Appraisals
44
45 Each property where title will be transferred shall be appraised to determine its fair
46 market value. The DOW and State Parks shall prepare bid documents and a set of
1 appraisal instructions. The divisions shall share the cost of conducting appraisals equally.
2 More than one appraisal may be required for each property in accordance with federal
3 rules. The appraisal process shall begin immediately.
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5 b. Land Exchanges
6
7 Land exchanges shall be used to transfer appropriate property interests at: Jackson Lake.
8 Corn Lake, Rifle Falls, Sylvan Lake, Steamboat Lake, Pearl Lake and Highline Lake
9 properties. State Parks shall supply the DOW with a list of specific properties currently
10 owned by State Parks that are available for exchange or which may be acquired for
11 exchange. DOW managers shall review this list and make field inspections to verify that
12 the proposed exchanges are desirable. The properties identified for exchange shall the:
13 be appraised and the titles transferred to the appropriate agency. In the aggregate the
14 transfers shall achieve an exchange of equal values between the agencies, taking into
15 consideration any other compensation that may be given. An exchange should he
16 completed within one-year of the completion of an. appraisal. Coincident with this efor.,
17 State Parks and the DOW shall continue to examine the possibility of using properties
18 acquired with Land and Water Conservation Fund grants from the National Park Service
19 for exchange purposes.
20
21 c. Partitions and Consolidations
22
23 Partitioning properties held in common by the DOW and State Parks and the exchange 01
24 deeds to consolidate dispersed parcels into separately owned blocks of contiguous
25 property shall be the method used to secure title in the appropriate managing agency at
26 the Golden Gate, Lory, Mueller, North Sterling and San Luis properties. Generally, this
27 process shall involve identifying DOW "inholdings" in these state parks (including
28 interests held in common), the partitioning of the parcels held in common, and the
29 exchange of deeds such that the DOW ends up owning and managing a consolidated
30 block of land outside the new state park boundary and at least equal to the value of its
31 interests prior to the exchange. The proposed partitions and consolidations shall not be
32 completed until the other exchanges and acquisitions are completed so that the value of
33 these lands will be available to the divisions if needed to equalize the value of other
34 properties that are exchanged. Thus, the specific scope of the partitions and
35 consolidations may change. A partition shall be completed within one-year of the
36 completion of an appraisal. In the case of the San Luis property, State Parks shall attempt
37 to acquire, either by purchase or exchange, the DOW's interest in the right-of-way
38 purchased from the State Board of Land Commissioners for that portion of the property
39 on which the recreational facilities are located. The remaining property may be retained
40 and managed by the DOW.
41
42 d. Lathrop Property
43
44 State Parks shall repair the dam at the Lathrop property to comply with a State Engineer's
45 Order. The Commission and Board agree that the cost of repairs represent a significant
46 capital outlay by State Parks. The value of these repairs shall serve as a credit toward the
1 resolution of federal aid audit issues at this or other properties. Following the repairs, the
2 property shall either be acquired by State Parks, partitioned, or returned to the DOW.
3
4 e. Service Contracts, O&M Agreements and Other Options.
5
6 The DOW and State Parks shall attempt to negotiate contracts and agreements to resolve
7 audit issues where appropriate at properties such AS Barbour Ponds and Sweitzer. Each
8 agreement shall be in the form of a contract. Pursuant to these contracts, the DOW shall
9 pay State Parks for operating and maintaining the properties. Coincident with the
10 agreements, the DOW will prepare wildlife management plans in cooperation and
11 consultation with State Parks. If acceptable agreements cannot be negotiated, State Par Ks
12 may relinquish its management of the areas or the divisions may consider other
13 alternatives for resolving audit issues. Contracts, agreements and wildlife management
14 plans shall be completed by September 1, 1999.
15
16 State Parks and the DOW also shall continue to examine the possibility of using
17 properties acquired with Land and Water Conservation Fund grants from the National
18 Park Service to help resolve audit issues.
19
20 f. Reversions
21
22 The Sawhill Ponds property shall be returned to the management control of the DOW.
23
24 4. The DOW and State Parks shall continue to implement their strategic plans for
25 protecting critical lands and wildlife habitat in Colorado. In so doing, the divisions shall
26 cooperatively explore the use of future acquisitions to resolve audit problems. The
27 divisions also may find that specific acquisitions or exchanges involving the State Board
28 of Great Outdoors Colorado Trust Fund, the State Board of Land Commissioners, and/or
29 non-governmental organizations can facilitate the resolution of an audit problem. In these
30 cases, the divisions shall cooperatively explore the most advantageous use of these future
31 acquisitions to help resolve audit problems. The Commission and the Board agree that
32 these solutions will be pursued only when they fit within the larger strategic plans or
33 goals of the cooperating entities.
34
35 5. The divisions may consider new strategies for resolving the audit issues at these
36 properties that may be developed following the adoption of this resolution. The divisions
37 shall report their findings about the appropriateness of such strategies to the Executive
38 Director, the Commission, the Board and the USFWS to avoid unnecessary and
39 unproductive actions.
40
41 6. The divisions shall report to the Executive Director, the Commission and the
42 Board on a bi-monthly basis on the status of the implementation effort and the
43 effectiveness of resolution mechanisms. Any issues concerning the interpretation or
44 implementation of this joint resolution shall be resolved by the DNR Executive Director,
45 in consultation with the Commission and Board as appropriate. All final actions shall be
46 approved by the Commission and the Board prior to implementation.
3
I
2 THIS RESOLUTION IS HEREBY:
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1 ADOPTED ON SEPTEMBER 1, 1998 BY THE COLORADO PARKS AND
2 OUTD R CREATION BOARD,
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7 PE GY , HAIR DATE/
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12 H i :ARD t NI ON DA
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17 JI 'I' SINGLETARY ' DATE
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22 BOB HERNREICH DATE
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27 EDWARD CALLAWA DATE
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32 LA E MA WS, DIRECTOR DATE
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1 ADOPTED ON SEPTEMBER I, 1998 BY THE COLORADO WILDLIFE
2 COMMISSION,
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6 CHARLES D. LEWIS, CHAIR DATE
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11 JAMES R. LONG DATE
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16 MARK LE VALLEY, SEC TARY DAT
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21 ERNARD L. BLACK, DATE
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26 ARNOLD SALAZAR DATE
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31 ROTHEA FARRIS
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36 LJAME ATE
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6 JOHN NfUMNIA, DIRECTOR DA
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05/24/2000 @9:32 19702260361 NORTH REGION OFFICE ' /G[ @1
STATE OF COLORADO
DIVISION OF PARKS AND OUTDOOR RECREATION'
North Region°face
3842 S.Mason##20202 Oti
Fort Collins,Colorado 80525
Phone(970)226-6641 �r „ ,
FAX (970)226-0361
Bill Owens
Governor
Laurie Mathews
Director
Weld County Commissioners
Greeley,Colo.
Dear Commissioners:
I know you are aware of our ongoing federal audit with the US Fish and Wildlife Service
and DOW. We are slowly developing solutions and will present a first cut to the State's
Capital Development Committee on June 13a'. The Chair of the committee,Rep. Joyce
Lawrence, has requested that we contact county commissioners for any concerns.
In order to expedite this process and not waste your time I'm asking you to sign off on tht
attached memo which explains the State Parks will trade for Barbour or continue to
manage it as the State Park you see today. If you would like me to come in for a formal
presentation I will do so but need to do it before June 9`h
If you have any questions please call and sorry for the short turnaround!
Si rely •
oe Maori r
North Region Director �' e
:.. ,1 re s U rve cre
BAXTER
± TT1• KIRKMEYER
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