PROJECT NAME AND STATE: Hartwell Dam and Lake, GA and J. Strom Thurmond Dam and Lake, SC
BACKGROUND: Title 10 United States Code (USC) 2695 authorizes the collection of administrative expenses for certain real estate transactions. This authority allows administrative fees to be collected and credited as a reimbursement to the appropriation from which the expense is incurred. U.S. Army Corps of Engineers (Corps) reservoirs within the SAD began assessing administrative fees to cover administrative expenses for issuing licenses authorizing facilities and activities associated with the Shoreline Management Program in 2006. Shoreline Use Permit fees of $35 and fair market value fees (rent) have been collected since 1974. With Implementation of Division Regulation SADR 1130-1-15 dated 1 December 2015, Shoreline Management at South Atlantic Division Civil Works Projects, all new permits and licenses issued on or after 1 January 2016 are issued as separate documents; a permit for floating facilities and a real estate license to authorize certain land-based activities on Federal lands.
- What - Total cost to individuals is $835 (five-year term); includes a $35 fee for a Shoreline Use Permit (under Title 36) and an $800 administrative fee for the Real Estate License.
- First increase since 2006.
- The fair market value fee will no longer be charged; generally ranged from $20 to $67 for each land based facility.
- Any modification request will result in issuance of a new permit/license at the full fee of $835.
- Although the fee must be made in a single payment at the beginning of the process, the payment equates to a cost of $13.92/month or $167/year over the five-year term of the instruments.
- When - Effective 1 January 2020
- Why - The increase in administrative fee reflects increased costs incurred by the government over the initial 2006 rate (see fee comparison section).
- Allows projects to meet acceptable levels of customer service and regulatory compliance to ensure good stewardship of public lands.
- Ensures the individual benefiting from the use of public property bears the cost incurred by the government.
- Allows for investment in automated tools to improve timely and efficient license issuance and database maintenance consistently within the region.
- Where - All SAD projects with a shoreline management program. The new fee will apply to reservoirs and waterways in the following states:
- Georgia - Hartwell Lake; J. Strom Thurmond Lake; Allatoona Lake; Lake Sidney Lanier; Walter F. George Lake; West Point Lake; Lake Seminole
- South Carolina – Hartwell Lake; J. Strom Thurmond Lake
- Alabama – West Point Lake; Walter F. George Lake
- Florida - Okeechobee Waterway; Lake Seminole
- North Carolina – W. Kerr Scott Lake; John H. Kerr Reservoir
- Virginia - Philpott Lake; John H. Kerr Lake
EXPLANATION OF FEE: The Corps assessed the cost incurred to the government in issuing and administering the real estate licenses associated with the Shoreline Management Program. Through the employment of Lean Six Sigma, a continuous process improvement methodology, to establish the most efficient process for delivering the program with reasonable levels of service. The Corps took into account the regional average cost of project and Real Estate staff to issue the license and ensure compliance with the terms and conditions of the document to ensure good stewardship of public lands to assign a common administrative fee requirement. It also includes the cost/maintenance of automated tools to improve efficiency and consistency within the region. Implementation of this administrative fee increase ensures that the individual benefiting from the use of public property bears the cost incurred by the government for issuing these instruments and not the majority of taxpayers as in years past. Therefore, this new fee structure actually benefits the taxpayers who are currently subsidizing the program through appropriations.
- Congressional notifications – 4 June 2019
- Public notifications – 6 June 2019
- Implementation – 1 January 2020
ACTION OFFICER: Margarett (Mackie) McIntosh 11 June 2019