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2019–21 Capital Budget - Requested Action

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2019–21 Capital Budget - Requested Action Don Hoch Director STATE OF WASHINGTON WASHINGTON STATE PARKS AND RECREATION COMMISSION 1111 Israel Road S.W. • P.O. Box 42650 • Olympia, WA 98504-2650 • (360) 902-8500 TDD Telecommunications Device for the Deaf: 800-833-6388 www.parks.state.wa.us July 12, 2018 Item E-8: 2019–21 Capital Budget - Requested Action EXECUTIVE SUMMARY: This item asks the Washington State Parks and Recreation Commission to approve a capital budget request level, proposed project list, resolution on an Anderson Lake State Park multi-use trail, and authorization for the Director to submit a 2019-21 biennium capital budget proposal to the Office of Financial Management substantially consistent with those approvals. This item advances the Commission’s strategic goal: “Develop amenities and acquire lands that advance transformation.” SIGNIFICANT BACKGROUND INFORMATION: Previous Commission Involvement At its November 2017 regular meeting, the Commission approved a set of principles to guide development of the 2019-29 Ten-Year Capital Plan and 2019-21 biennial budget request (Appendix 1). Key among the principles was a determination to move the system’s facility condition to an overall grade of B (80% Facility Condition Index) within ten years. The B grade goal was an acceleration from last biennium’s goal to achieve that grade in 15 to 20 years. These principles, along with the Commission’s other adopted strategic guidance (e.g., Acquisition and Development Strategy and 2016 update to the 2014-19 Strategic Plan), form the basis for development of the 2019-21 Capital Budget request. The Director further refined staff’s direction to include the following 2019-21 capital budget targets that came out of the Commission’s action: • Aim for an 80% preservation and 20% programmatic mix of projects funded in the capital construction account (057 Account) • Set a capital construction account request level at about $110 million and aim for $10 million in grants. At its May 2018 regular meeting, the Commission heard a progress report on candidate project lists and priorities. Staff provided the Commission with criteria for project ranking, as well as the following four pre-ranked criteria under which projects were automatically included in the biennial capital request: • Projects needing re-appropriation (projects that have already been funded and started but not completed) • Projects that follow-up phases of previously approved projects (construction phase of a previously designed and permitted project) 1 • Projects that are critical (projects that are required to keep a park or portion of a park open due to risk of facility failure) • Statewide projects (projects the Commission has already committed to and take place in multiple parks). A Distinctive Year of Challenges The legislature’s unprecedented failure to pass a capital budget until nine months after the scheduled end to its 2017 Regular Session, resulted in a unique set of challenges for the capital program. The program was required to first lay off staff and then try to rehire those staff still available and interested in working for the agency. The task of fully hiring staff to meet this biennium’s existing needs is still underway. Combined with the nearly $500 million maintenance backlog, an expanded emphasis on multi-biennial phased projects, and the Commission-established principles identified above, it quickly became clear that the list of “pre- ranked” projects (See Table 1) would exceed the agency’s average historical capital budget, which has generally been funded in the $50 to 70 million range. Table 1: Proposed Pre-Ranked Categories and Budget Amounts in Staff- Recommended 2019-21 Capital Budget Pre-Ranked Category 2019-21 Proposed Budget Re-Appropriations $19,817,000 Projects with Previous Phases $28,640,000 Critical Projects $11,550,000 Statewide Priority Projects $15,388,000 Total Pre-Ranked $75,395,000 $36,505,000 in other projects = Total 2019-21 Capital budget of $111,900,000 Given about $110 million ceiling in requests, that left about $31million worth of additional projects to be prioritized. Project Ranking Criteria Nevertheless, regional parks staff developed and prioritized capital projects under the following criteria: 1. Acquisition and Development Strategy goals 2. Guiding Principles for All Projects 3. Recreation Experience 4. Visitation 5. Fiscal Impact 6. Urgency of Project 7. Facility Condition 8. Natural Resources Condition 9. Historic Property Condition 10. Interpretation/Educational Opportunities 2 11. Environmental Regulatory Viability and Ease of Regulatory Compliance 12. Cultural Resource Condition 13. Partnerships and Community Support After the initial regional prioritization effort, headquarters and region staff went through several iterations of analysis and project definition to get to the list that it is recommending to the Commission. See Appendix 2 for the Staff Recommended 2019-21 Capital Budget Request. Appendix 3 contains a more complete list of capital projects, including those that did not make the 2019-21 cutline. These “out year” projects form the basis for the agency’s Ten-Year Capital Plan along with additional concept-only projects that are bundled under the category 2029 to 39. Both these documents together provide a picture of the relationship between the upcoming biennial budget request and the Commission’s longer-term capital strategy. Anderson Lake State Park Multi-Use Trail When reviewing hundreds of candidate projects, priorities emerge, in part, based on timeliness for execution. The Peninsula Trails Coalition (PTC) has proposed that State Parks construct a leg of a long-distance multi-use non-motorized trail that would pass through Anderson Lake State Park and link up with the Olympic Discovery Trail and the Pacific Northwest National Scenic Trail. This project is consistent with previous Commission actions. Yet, the PTC has not yet secured the necessary rights-of-way to assure that a State Parks investment would be able to tie in to other portions of the trail. Staff is thus recommending a special Commission resolution (Appendix 4) be passed that gives encouragement for PTC efforts to secure the rights-of-way and assurance of a Commission funding request once those rights are secured. Expenditures and Anticipated Outcomes Appendices 5, 6, and 7 provide further context to the budget recommendations for the 2019-21 biennium. Appendix 5 breaks down projected ten-year capital expenditures by a set of investment criteria established by the Director. Appendix 6 contains a list of potential grant projects over the next ten years. Appendix 7 displays a quantitative listing of ten-year outcomes down to the facility level. Finally, as context for biennial capital investment, staff has compiled a list of anticipated outcomes for the ten-year list of prioritized capital projects tied to the 2016 Commission-adopted Acquisition and Development Strategy. The Strategy established five fundamental goals the Commission wished to advance through acquiring land and developing park facilities. In addition to dramatically improving the condition of facilities, staff anticipates that full support and funding of the proposed Ten-Year Capital Plan will yield key outcomes in each of the Commission’s five adopted goals, which are highlighted below: Places to be: Connecting people with Washington’s iconic landscapes • Constructs two new state parks on major existing land holdings • Constructs initial public access to four previously acquired properties Stories to know: Engaging people in authentic Washington stories • Constructs a new interpretive center at Sun Lakes-Dry Falls State Park to tell the story of the ice age floods, a new interpretive center at Fort Casey to tell the story of the coastal 3 defense system, and fully renovates interpretive centers at Ginkgo-Wanapum, Spokane House, Fort Columbia, Federation Forest, and Bowman Bay at Deception Pass, all of which had not been renovated for a quarter century or more. • Preserves 25 percent (190 of 754) of the higher priority historic structures in the state park system • Provides relevant contemporary interpretation at all 16 State Park Heritage Sites • Provides a destination interpretive feature in every park area • Constructs utility infrastructure to support cultural events and festivals in suitable parks Things to do: Providing Washington’s recreational mainstays • Constructs 1 new campground with about 100 campsites • Renovates 15 existing campgrounds with about 1400 refurbished campsites • Constructs 50 cabins, yurts, platform tents, and other roofed accommodations with state capital funds and more than 100 through private/partner investment. Ways to grow: Inviting novices to experience Washington’s outdoors • Redevelops day-use areas in 35 parks • Provides improved universal access for people with disabilities to the principal feature and suitable support facilities in 45 parks • Improves 50 miles of long-distance trails Something for everyone: Improving the quality of life for all Washingtonians • Corrects all significant barriers to fish passage on agency-owned lands • Treats 2000 acres of forest lands to reduce risk of fire and pest infestation • Generates an estimated about $110 million of increased annual statewide economic activity from a base of over $800 million per year. Operating impacts Operating impact analysis from the proposed capital project list is ongoing. Upon adoption of the list by the Commission, operating impacts will be incorporated into the 2019-21 Operating Budget request. STAFF
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