Legislative Program Review and Investigations Committee
Executive Summary
OPEN SPACE ACQUISITION
Recognizing the need for an efficient and effective system to acquire open space in Connecticut, the Legislative Program Review and Investigations Committee authorized a study of Open Space Acquisition in March 1998. Although the state acquires different types of open space land through several agencies and programs, this study focused on the acquisition process used by the Department of Environmental Protection. The department administers the state’s primary open space acquisition program.
As the study progressed, several problem areas became increasingly clear with respect to the open space planning and acquisition processes used by the state. As such, the committee focused its findings and recommendations in three main areas: strategic planning; the open space acquisition process used by DEP; and internal operations of the department’s Land Acquisition and Management Division, which is the main division responsible for administering DEP’s open space acquisition program.
Strategic Planning
The environmental protection department, especially the land acquisition division, is at a pivotal juncture regarding its open space acquisition efforts. The legislature formally adopted a policy in 1997 of having not less than 10 percent of the state’s landmass owned as open space by the state. The governor also recently proposed increasing the amount of designated open space throughout the state held by entities in addition to the state. Moreover, $166 million in funding for open space acquisition has been earmarked over the next five years, of which the state has formally authorized $21 million in FY 99 for acquisition.
Given the state’s commitment to set an open space goal and provide funding to begin pursuing that goal, DEP, as the state’s primary open space acquisition agency, must be prepared to implement an efficient and effective program to achieve the overall objective. The program review committee believes proper strategic planning is vital to fulfilling Connecticut’s open space requirements.
The committee found, however, that more needs to be done with respect to strategic planning -- especially in developing a detailed inventory of current state-owned land, identifying prospective open space opportunities within specified acquisition categories, and outlining a proactive approach for acquiring land -- before DEP has a truly targeted open space acquisition plan in place. The committee also found that acquisition priorities are primarily developed in response to properties submitted to DEP, and that the department has no formal planning process in place for prospectively identifying properties within specific land classifications. The current system is predicated on responding to properties already submitted for acquisition rather than identifying properties that fit into a well-defined strategic plan and proactively seeking those open space opportunities.
An integral component in achieving a strategic open space plan is having complete and comprehensive information regarding the state’s inventory of open space land. As such, state law requires DEP to maintain and periodically update a list of its acquisitions. The committee found, however, the department maintains a list of properties it acquires, which complies with the law, but the list is not as comprehensive as it could be for planning purposes. For example, the list does not indicate the amount of land owned either within geographic areas throughout the state or within particular land classifications categories in any aggregate format. Further, the list is kept in a word processing format not allowing for any meaningful management analysis or reporting.
To address these findings, the program review committee made several recommendations requiring DEP to: 1) begin developing annual open space goals and objectives; 2) develop and update a comprehensive inventory of open space land under DEP ownership; 3) identify all priority land once a formal comprehensive inventory is completed; 4) develop a system to rate priority land according to specified goals and objectives; 5) pursue the highest rated opportunities using various acquisition methods and strategies; 6) develop and prioritize a supplemental list of targeted properties using input from various sources; and 7) develop policies and procedures for encouraging and using cooperators to act as intermediaries for DEP when acquiring open space.
Acquisition Process
The committee examined, in detail, the overall process used by DEP to acquire open space and made several findings and recommendations in this area. An analysis of a random sample of acquisition files was made to determine the length of time necessary to complete the process. The review and evaluation stage, which is fully within DEP’s control unlike other parts of the acquisition process, averaged roughly six months to complete. The analysis, however, revealed an inordinate amount of time is spent initially processing properties submitted as open space, compared to the overall review and evaluation process. Further, the land acquisition division does not have standards in place to guide the length of time necessary to complete the review and evaluation process of properties submitted for acquisition.
The program review committee also found instances when the department did not follow its own internal review and evaluation procedures when considering prospective open space properties. Despite this, the committee found the department continued to move properties through the acquisition process and approve them for acquisition. As such, the committee questioned the need for those procedures.
To address these findings, the program review committee required DEP to adopt a 90-day time standard for completing the open space review and evaluation process. The department must also conduct a yearly analysis of how well the time standard is being met and report its findings to the open space review board established in statute. The department is further required to conduct an internal evaluation of its property review process to determine the necessity of particular steps the committee found were not being followed.
The process used by the state once a property has been cleared for acquisition by DEP was also analyzed by the committee. Unlike the review and evaluation phase, this phase requires the work of private contractors outside of DEP. Moreover, the attorney general’s office and the bond commission also play a significant role in approving open space acquisitions.
Once a property has been reviewed by DEP for purchase, the average time to complete the acquisition process averaged just under two and a half years. This includes contacting the landowner, negotiating an acquisition price and finalizing the purchase agreement, completing a property appraisal and survey, obtaining funding, and closing on the property. The committee found that roughly 40 percent of the time necessary to complete this phase is spent negotiating a purchase price between DEP and the property owner. The remaining time is evenly split between obtaining funding from the bond commission and completing requirements necessary to finalized the acquisition.
Based on formal interviews and correspondence found in property files, the committee concluded the negotiation phase of the acquisition process takes an unreasonably lengthy time to complete. The time necessary to obtain funding from the bond commission, however, which was highlighted as a problem throughout the study, did not seem excessive compared to the timeliness of the overall acquisition process. The larger problem with the bond commission was the unpredictability of funding for acquisitions. The committee believes this issue has been resolved, however, given the commission’s new requirement to release open space funds to DEP twice a year.
The program review committee also found that several review cycles were required between the attorney general’s office and DEP regarding legal documents required for acquisitions, which lengthened overall process timeliness. In addition, a procedure used by DEP to obtain services from private surveyors was found to be inefficient. Unlike practices used by other state agencies, the land division does not use an approved bidder’s list for selecting surveyors. Instead, a competitive bidding procedure is used when surveying services are needed.
The committee addressed these findings by recommending the DEP commissioner and the attorney general examine interagency procedures used in preparing, reviewing, and revising legal documents associated with acquiring open space. The aim of this recommendation is to reduce the overall time required for the document drafting process. The committee also recommended that DEP and the administrative services department develop a procedure to institute an approved list of qualified surveyors from which DEP can choose private surveyors without competitively bidding individual projects.
Internal Operations
An examination of the Land Acquisition and Management Division’s internal operations revealed several areas where improvements or changes were necessary. The open space acquisition process used by the division is paper driven and highly manual. An automated accounting of the full process does not exist in any centralized location within the division. As a result, any meaningful analysis from a management perspective is limited. The division, however, recognizes this deficiency and has formally requested a revamped automation system, which is currently being reviewed by the department. The committee has recommended the necessary automation improvements be implemented.
The committee also found no complete performance information is available within the land division with respect to overall caseflow timeliness. There is limited performance monitoring for analysis purposes, and standards or benchmarks of acceptable practices do not exist within the division. The committee recommended the division develop a set of realistic benchmarks and begin evaluating its overall performance annually. Relevant performance information must be reported in the governor’s annual report digest and forwarded to the open space review board.
With respect to the open space review board, the committee found the newly created board is not required to report to the legislature on the state’s main open space program, similar to the board it replaced. The committee recommended a technical change to the statutes adding the new reporting requirement to the board’s responsibilities.
The program review committee also found the division lacks a set of clearly defined policies and procedures to guide its overall acquisition process. As such, division staff have different levels of understanding as to the existing procedures required when acquiring property for open space purposes. The committee believes there needs to be clearer procedures in place and recommended the division develop a written set of standardized internal policies and procedures, and distribute to all appropriate staff.
RECOMMENDATIONS
1. The Department of Environmental Protection shall develop annual open space acquisition goals and objectives consistent with the state’s overall goal for open space. The goals shall include the total projected acreage to acquire within relevant land classification categories.
2. Beginning January 1, 2000, and every three years thereafter, the Department of Environmental Protection shall develop and update a comprehensive, centralized inventory of open space land under department ownership.
3. The open space inventory developed by the Department of Environmental Protection shall include the total amount of land the state owns by geographic area and priority land classification -- particularly those classifications identified by DEP’s land acquisition division and within the department’s "green plan," once formally adopted.
4. As part of its comprehensive inventory, the Department of Environmental Protection shall identify all:
parcels abutting existing state-owned open space land;
in-holdings within existing state-owned open space land; and
parcels contiguous with existing land held as open space by the department.
5. For each parcel identified, the department shall develop a system for rating the properties according to how each contributes to the department’s annual open space goals and objectives. Specific rating criteria should at least include: whether there is a demonstrated gap in current public land ownership within the given geographic area; whether the property is at risk of being sold for purposes other than open space; and if a state effort to acquire the property will have a significant impact on the environmental quality of the area.
6. The Department of Environmental Protection shall aggressively pursue properties it identifies as high priority, regardless of whether the property has formally been submitted for acquisition, by:
developing strategies for acquiring each high-priority parcel, including direct negotiations for purchase based on a fair value, and encouraging private and public organizations to purchase priority properties with the intent of selling the property back to the state at fair market value; and
contacting owners of each parcel in the inventory and determining their willingness to have DEP or another open space land acquisition organization(s) acquire their property.
7. As a supplement to DEP’s open space inventory, the department shall, on a regular basis, aggressively seek input from its natural resource field personnel, local officials, private land acquisition groups, and the open space review board (established by P.A. 98-157) to compile a list of parcels targeted for acquisition.
8. Properties on the supplemental acquisition list shall be prioritized accordingly, with higher-rated properties aggressively pursued for acquisition using various strategies, including:
- grants to municipalities and private open space
acquisition/conservation groups;- indirect state acquisition using municipalities and private
organizations as intermediaries;
- joint ventures involving DEP and municipalities and private organizations as intermediaries;
- direct acquisition by DEP; and
- joint acquisition efforts with other state agencies.
9. The Department of Environmental Protection shall develop policies, procedures, and strategies for: 1) encouraging municipalities to acquire open space land; 2) encouraging private land acquisition organizations to purchase open space; and 3) using municipalities, private land organizations, or other state agencies to act as intermediaries for DEP open space acquisition. Such policies and procedures must address when property agents are to use each of the above strategies.10. The Department of Environmental Protection shall adopt a time standard of 90 days within which the review and evaluation phase of the open space acquisition process should be completed. The department shall develop written justification for any standard greater than 90 days to complete all review and evaluation of properties submitted for consideration as open space. Beginning July 1, 1999, the Department of Environmental Protection shall conduct a yearly analysis of how well the time standard is being met and report its findings to the open space review board established by P.A. 98-157.
11. The Department of Environmental Protection, in conjunction with the Land Acquisition and Management Division, shall conduct an internal evaluation to determine the necessity of formal review meetings between the division and individual department units. The department shall also re-evaluate the need for formal Land Acquisition Review Committee meetings.
12. By July 1, 1999, the commissioner of the Department of Environmental Protection and the attorney general shall examine interagency procedures used in preparing, reviewing, and revising documents associated with acquiring open space, with the aim of reducing the overall time involved and increasing the quality of the work produced.
13. The Department of Environmental Protection, in cooperation with the Department of Administrative Services shall develop a procedure instituting an approved list of qualified surveyors from which DEP can choose private surveyors without having to competitively bid each project.
14. The Department of Environmental Protection shall implement the necessary improvements to the automation capabilities within the Land Acquisition and Management Division, and provide the division with a comprehensive management information system, including a complete database function, allowing for an automated, centralized open space acquisition tracking system.
15. The Land Acquisition and Management Division shall develop a set of realistic benchmarks to be used in evaluating its overall performance. The benchmarks should cover all key components and phases of the open space acquisition process, including, but not limited to: 1) specific time frames to complete each component of the open space acquisition process; 2) completed purchases compared against annual acquisition goals; and 3) the overall use of cooperators to acquire open space land. The internal standards must be established by January 1, 2000, and measured annually thereafter. Relevant performance information shall be included in the Annual Report to the Governor as presented in the Connecticut Administrative Reports, and forwarded to the open space review board established by P.A. 98-157.
16. C.G.S. Sec. 7-131 (d) should be amended to include within the review board report to the legislature any findings and recommendations relating to the Recreation and Natural Heritage Trust Program as defined in C.G.S. Sec. 23-73.
17. The Land Acquisition and Management Division shall develop a written set of standardized open space acquisition policies and procedures. Such policies and procedures shall be distributed to all appropriate staff, and updated as necessary. The written policies and procedures shall be developed by July 1, 1999.