HD2 - Proposed Agency Reorganization Plan to Merge the Chesapeake Local Assistance Department and the Department of Conservation and Recreation


Executive Summary:
The 2004 Appropriations Act (House Bill 5001) included language that directed the merger of the Chesapeake Bay Local Assistance Department (CBLAD) with the Virginia Department of Conservation and Recreation (DCR). The Appropriations Act directed the Secretary of Natural Resources to prepare an agency reorganization plan for submission to the Chairmen of the House Appropriations and Senate Finance Committees by August 31, 2004. In developing this plan, the Secretary was directed to consult with Tidewater localities and Tidewater Soil and Water Conservation Districts. In addition, the plan was to include various provisions to ". . . ensure that the core operations of the Chesapeake Bay Local Assistance Department and Chesapeake Bay Local Assistance Board shall continue."

In accordance with the budget language, in July 2004 the Secretary of Natural Resources sent a questionnaire to all the Tidewater Virginia local governments, soil and water conservation districts, planning district commissions and major stakeholder organizations involved with the Bay Act. Responses were sent to Joseph H. Maroon, the DCR Director. Subsequently, several meetings were held with appropriate DCR staff to plan the merger process and outcomes. This plan outlines actions to date and identifies areas of future and continued efficiencies and coordination resulting from the merger.

On July 1, 2004, the former Chesapeake Bay Local Assistance Department became the new Division of Chesapeake Bay Local Assistance (DCBLA) within the Virginia DCR. Division status within DCR provides the greatest potential for the intricate program knowledge and service orientation to remain intact. At the same time, the merger offers several areas of greater integration and coordination between the DCBLA and other DCR units, especially the Division of Soil and Water Conservation (DSWC).These are actively being pursued. No physical movement of offices was necessary to effectuate the merger, and the DCBLA will continue to occupy its space in the Monroe Building.

The nine-member Chesapeake Bay Local Assistance Board remains unaffected by the merger. However, primary staff responsibilities have passed to the DCR Director who, along with his office staff and the division staff, will serve the Chesapeake Bay Local Assistance Board in carrying out its statutory authorities.

DCR leadership identified several steps it will take as part of the initial merger plan, including some staff realignment. Some of these actions have already been completed or are in the process of being completed; others are projected to be addressed over the next 6-12 months. These are outlined below:

• To consolidate administrative and financial functions, two DCBLA staff members have been transferred into DCR's Administration and Finance divisions.

• Two engineering staff members will be combined with DSWC urban stormwater program staff to more efficiently and effectively accomplish the various responsibilities of existing stormwater requirements, as well as those DCR will undertake as a consequence of the new, streamlined State stormwater management program pursuant to HB1177 (2004).

• DCR will assure that compliance evaluations are better-coordinated and conducted regarding local erosion control, stormwater management and Bay Act programs.

• DCR staff will coordinate construction site plan reviews for state and federal projects, as well as requests from local governments for site plan review assistance and review of state and federal environmental impact statements and environmental assessments.

• DCR staff in the DCBLA and DSWC will improve coordination of nonpoint source program reporting and tracking to meet regulatory requirements, assure local government compliance with regulatory requirements, and provide needed data regarding progress toward meeting Chesapeake Bay water quality goals and commitments, while minimizing any duplicative reporting by various program constituents.

• DCR staff will improve coordination of various agricultural conservation programs including those related to the Bay Preservation Act.

• DCR will consider ways to provide critical funding assistance, now missing, for localities subject to the Chesapeake Bay Preservation Act.

There appear to be other opportunities to better integrate nonpoint source pollution control planning and implementation efforts within DCR as a consequence of this merger. Those actions will be more carefully considered over the next 18 months.

In order to complete the intent of the merger, the Department is working with the Governor's Office and the Secretary of Natural Resources in preparing legislation for the2005 General Assembly session to accomplish the necessary statutory changes. The Chesapeake Bay Preservation Act (§ 10.1-2100 et seq., Code of Virginia) will need minimal amendments to effectuate in statute what has already occurred in fact (as directed by the 2004 Appropriations Act). Counsel from the Attorney General's office has advised that the Preservation Act may remain in § 10. 1-2100 and does not need to be relocated under some other section of the Code of Virginia pertinent to DCR. Similar changes will need to be made to the Bay Act Regulations (9 VAC 10-20) and the Board's Public Participation Guidelines (9 VAC 10-10).

Incorporating the responsibilities for the Chesapeake Bay Preservation Act within DCR will strengthen the collaborative support fabric that already existed between the two agencies' programs and improve non-point source service delivery to local governments through an integrated approach. Further coordination and streamlining of reporting, tracking and local program evaluation will become more easily developed under the merger plan, while maintaining a high level of "Chesapeake Bay Preservation Act" visibility.

The Appropriations Act passed by the 2004 General Assembly reduced funding and MEL from CBLAD and transferred the remainder to DCR. Since 2002, the CBLAD has incurred aggregate funding reductions of $1,434,793, or approximately a 54% reduction of the appropriation to the agency at the beginning of FY2002. While the merger will produce greater efficiencies and effectiveness in carrying out the agency's overall mission related to nonpoint source pollution, little, if any, additional cost savings beyond those included in the Appropriations Act or already effectuated are Rely to result. This conclusion is consistent with the Report of the Joint Legislative Audit and Review Commission (JLARC) entitled "Implementation of the Chesapeake Bay Preservation Act" (House Document No. 23, 2003).