Performance Review Division of Natural Resources the Park System
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September 2018 PE 18-07-613 PERFORMANCE REVIEW DIVISION OF NATURAL RESOURCES THE PARK SYSTEM AUDIT OVERVIEW The West Virginia Park System Continues to Lack the Necessary Resources to Adequately Reduce the Number of Deferred Maintenance and Capital Improvement Projects. WEST VIRGINIA LEGISLATIVE AUDITOR PERFORMANCE EVALUATION & RESEARCH DIVISION JOINT COMMITTEE ON GOVERNMENT OPERATIONS Senate House of Delegates Agency/ Citizen Members Ed Gaunch, Chair Gary G. Howell, Chair Keith Rakes Mark Maynard, Vice-Chair Danny Hamrick Vacancy Ryan Weld Zack Maynard Vacancy Glenn Jeffries Richard Iaquinta Vacancy Corey Palumbo Isaac Sponaugle Vacancy JOINT COMMITTEE ON GOVERNMENT ORGANIZATION Senate House of Delegates Ed Gaunch, Chair Gary G. Howell, Chair Tony Paynter Mark Maynard, Vice-Chair Danny Hamrick, Vice-Chair Terri Funk Sypolt Greg Boso Michael T. Ferro, Minority Chair Guy Ward Charles Clements Phillip W. Diserio, Minority Vice-Chair Scott Brewer Mike Maroney Chanda Adkins Mike Caputo Randy Smith Dianna Graves Jeff Eldridge Dave Sypolt Jordan C. Hill Richard Iaquinta Tom Takubo Rolland Jennings Dana Lynch Ryan Weld Daniel Linville Justin Marcum Stephen Baldwin Sharon Malcolm Rodney Pyles Douglas E. Facemire Patrick S. Martin John Williams Glenn Jeffries Zack Maynard Corey Palumbo Pat McGeehan Mike Woelfel Jeffrey Pack WEST VIRGINIA LEGISLATIVE AUDITOR PERFORMANCE EVALUATION & RESEARCH DIVISION Building 1, Room W-314 State Capitol Complex Charleston, West Virginia 25305 (304) 347-4890 Aaron Allred John Sylvia Brandon Burton Keith Brown Noah Browning Legislative Auditor Director Research Manager Senior Research Analyst Referencer Note: On Monday, February 6, 2017, the Legislative Manager/Legislative Audi- tor’s wife, Elizabeth Summit, began employment as the Governor’s Deputy Chief Counsel. Most or all the actions discussed and work performed in this report occurred after this date. However, the Governor’s Deputy Chief Counsel was not involved in the subject matter of this report, nor did the audit team have any com- munications with her regarding the report. As Deputy Chief Counsel, the Legisla- tive Auditor’s wife is not in a policy making position within the Executive Branch. Therefore, the Performance Evaluation and Research Division does not believe there are any threats to independence with regard to this report as defined in A3.06.a and A3. 06.b of the Generally Accepted Government Auditing Standards. Furthermore, the Legislative Auditor has instructed the Director of Performance Evaluation and Research Division to document and discuss any issues he believes are a threat to the division’s independence with the President of the Senate and the Speaker of the House due to Ms. Summit’s position. Performance Review CONTENTS Executive Summary ....................................................................................................................................................................... 7 Issue 1: The West Virginia Park System Continues to Lack the Necessary Resources to Adequately Reduce the Number of Deferred Maintenance and Capital Improvement Projects .............................................................................................................................................................................. List of Tables Table 1: Features of the West Virginia Park System ............................................................................................................ Table 2: Revenue Sources and Self-Sufficiency Rankings for State Park Systems That Do Not Charge Entrance Fees (in millions), FY 2016 ........................................................................................................ Table 3: State Park Self-Sufficiency Ratings and Revenue Sources (in millions) For the Top Ten State Park Systems and West Virginia FY 2016 .................................................................................................... Table 4: West Virginia State Park Lodge Seasonal Occupancy Rates (%): Weekend vs. Week Days, FY 2017 .............................................................................................................................................................................. Table 5: Top Five State Park Systems Based on Number of Lodges, FY 2016 ............................................................ List of Figures Figure 1: A yurt available to rent at Tomlinson Run State Park ....................................................................................... Figure 2: A fire tower available to rent for overnight stays at Seneca State Forest ................................................. Figure 3: Playground equipment in the cabin area at Blackwater Falls State Park .................................................. Figure 4: Playground equipment in the recreation area at Chief Logan State Park ................................................. Figure 5: The lumbar mill at Cass Scenic Railroad State Park ........................................................................................... Figure 6: An example of the stone culverts along the North Bend Rail Trail .............................................................. Figure 7: A waste water treatment plant at Canaan Valley Resort State Park ........................................................... List of Appendices Appendix A: Transmittal Letters ................................................................................................................................................... Appendix B: Objectives, Scope and Methodology .............................................................................................................. Appendix C: Agency Response .................................................................................................................................................... Performance Evaluation & Research Division | pg. 5 Division of Natural Resources pg. 6 | West Virginia Legislative Auditor Performance Review EXECUTIVE SUMMARY The Performance Evaluation and Research Division (PERD) within the Office of the Legislative Auditor conducted a Performance Review of the West Virginia Division of Natural Resources, Parks and Recreation Section pursuant to West Virginia Code §4-10-10(b)(1). The objective of this review was to determine the extent to which the Parks and Recreation Section has addressed the deferred maintenance issues at West Virginia State Parks, previously discussed in the 2009 Performance Review. The issue contained in this report is highlighted below. Frequently Used Acronyms in This Report: DNR – Division of Natural Resources PERD – Performance Evaluation and Research Division Report Highlights: Issue 1: The West Virginia Park System Continues to Lack the Necessary Resources to Adequately Reduce the Number of Deferred Maintenance and Capital Improvement Projects. Excess lottery revenue bonds totaling $60 million should reduce the deferred maintenance in the Park System, but will not be sufficient to complete all the necessary work. Site visits to 15 West Virginia State Parks reveal issues with maintenance similar to those found in the 2009 Performance Review. The West Virginia Park System has addressed many of the safety concerns raised in the 2009 Performance Review, but serious issues remain. Many parks have significant infrastructure needs, particularly with waste treatment facilities. PERD’s Response to the Agency’s Written Response: PERD received the agency’s response to the draft copy of the Performance Review on August 30, 2018. The agency’s response can be found in Appendix B on page 33. The agency agrees with the overall finding of the report and provides additional information in its response. Recommendation 1. The Legislative Auditor recommends that the West Virginia Legislature consider implementing the options identified in this report that will increase revenue to meet the maintenance needs of the Parks System and allow greater flexibility to the Parks and Recreation Section’s administration in managing its budget. Performance Evaluation & Research Division | pg. 7 Division of Natural Resources pg. 8 | West Virginia Legislative Auditor Performance Review ISSUE 1 The West Virginia Park System Continues to Lack the Necessary Resources to Adequately Reduce the Number of Deferred Maintenance and Capital Improvement Projects Issue Summary The Performance Evaluation and Research Division (PERD) conducted site visits at 13 state parks, 1 state forest, and both rail trails. The site visits provided the PERD staff with an understanding of the The Park System has a number of strengths and weaknesses of the State Park System, under the West strengths such as, customer service, Virginia Division of Natural Resources (DNR). The Park System has a park beauty and a variety of rec- reational activities that have led to number of strengths such as, customer service, park beauty and a variety many repeat visitors. The primary of recreational activities that have led to many repeat visitors. The primary weakness of the Park System is de- weakness of the Park System is deferred maintenance and a backlog ferred maintenance and a backlog of of capital improvement projects, which has resulted in aging and non- capital improvement projects, which viable buildings, safety concerns, and a deterioration of infrastructure. has resulted in aging and non-viable The superintendents interviewed for this review consistently indicated buildings, safety concerns, and a de- that the deferred maintenance and backlog of