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The Washington State Parks Headquarters, 1111 Israel Road S.W., Olympia, WA

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The Washington State Parks Headquarters, 1111 Israel Road S.W., Olympia, WA 1 WASHINGTON STATE PARKS AND RECREATION COMMISSION Commission Meeting – March 5 , 20 0 9 – The Washington State Parks Headquarters, 1111 Israel Road S.W., Olympia, WA Detailed Commission Agenda Items Item E-1: Iron Horse State Park – Bonneville Power Administration – Perpetual Easement Kittitas Item E-2: Blake Island State Park – Concession Lease Extension and Assignment Item E-3: Capital Development Program Update Item E-4: Report on Governor’s 2009-2011 Budget Recommendations for WSPRC Item E-5: Criteria for Selecting Additional Parks for Mothballing 2 Item E-1: Iron Horse State Park – Bonneville Power Administration – Perpetual Easement – Requested Action - Expedited ACTION TAKEN: Passed as requested EXECUTIVE SUMMARY: This item asks the Commission to grant the Bonneville Power Administration (BPA) a perpetual easement for access across Iron Horse State Park for maintenance purposes This item complies with our Centennial 2013 Plan element, “Our Commitment –Public Service” and with our core values. SIGNIFICANT BACKGROUND: This easement will allow BPA to cross the John Wayne Pioneer Trail within Iron Horse State Park to access its electrical transmission system for security, maintenance and expansion priorities. The access is intermittent i.e. once or twice a year. BPA has agreed to a one time payment of $1,000.00 for this crossing easement. AUTHORITY: RCW 79A.05.070 – Further Powers (5) Grant franchises and easements for any legitimate purpose on parks or parkways, for such terms and subject to such conditions and considerations as the commission shall specify. Commission Policy 55-06-1 Real Estate Transactions and Non-recreational Uses of Parklands, Section II, General Principles. SUPPORTING INFORMATION: Appendix 1 Location and Vicinity Appendix 2 Project Detail and Aerial Map REQUESTED ACTION OF COMMISSION: Staff requests that the Washington State Parks and Recreation Commission: Authorize the Director or designee to grant a perpetual easement to the Bonneville Power Administration for a crossing of the John Wayne Pioneer Trail within Iron Horse State Park. Author(s): Lynn Harmon, Property & Acquisition Specialist 4 [email protected] (360) 902-8656 Ken Graham, Lands Program Manager [email protected] (360) 902-8680 Return to top of document Item E-2: Blake Island State Park – Concession Lease Extension and Assignment – Requested Action ACTION TAKEN: Passed as requested 3 EXECUTIVE SUMMARY: This item asks the Commission to extend the term of the Concession Lease Agreement for Blake Island State Park by twenty years in exchange for the new operator assuming responsibility for all concession facility maintenance and improvements. This item also requests that the Commission adopt a statement of principles that will guide the Director in amending the existing Concession Lease Agreement and d elegate authority to the Director or designee to complete the negotiation of the amendments and assignment subject to the adopted statement of principles. Under state law, concession leases longer than twenty years require unanimous approval by the Commission. This complies with our Centennial 2013 Plan element “Our Commitment - Financial Strategy” and with our core values. SIGNIFICANT BACKGROUND INFORMATION: Tillicum Village was founded by William Hewitt on Blake Island in 1962. The concession offers park visitors the experience of a passenger ferry ride across Puget Sound to the island for a hosted salmon dinner, interpretive programs and entertainment consistent with Northwest Coast Native American themes. The centerpiece of the concession facility is a longhouse based on the architecture of Northwest Coast Native Americans. It was the site of the historic Asian Pacific Economic Cooperation (APEC) meeting hosted by President Bill Clinton in 1993. The concession opened during the 1962 Seattle World's Fair. Today it draws about 50,000 visitors annually, down from a peak of about 100,000 in the late 1970s. It contributes approximately $115,000 .00 per year in fees to the state park system. After almost fifty years of management by the founding family, the concessionaire has proposed assignment of the lease to another contractor. Staff has determined that maintenance of the publicly-owned facility to agency standards could require millions of dollars over the next 10-20 years. The agency's ability to finance these improvements is not assured, given the current economic downturn and the long-term financial needs of the state park system. Therefore, an assignment is proposed to include the following statement of principles: 1. Assignee affirms and will remit to the Commission all delinquent concession fees, taxes and interest due to Parks upon the assignment of the amended Concession Lease Agreement; 2. Assignee will accept the concession premises "as-is," excepting for a new roof and minor improvements already budgeted in the current biennium; 3. Assignee will accept sole responsibility for long-term maintenance and capital improvements on the concession premises. State Parks will step aside from responsibility for future improvements used exclusively by the concessionaire; 4. Assignee's concession lease will be extended by twenty (20) years, to expire in 2039, to provide time for amortizing the costs of maintenance and leasehold improvements. RCW 79A.05.030(5) authorizes the Commission to grant concession leases longer than twenty (20) and up to fifty (50) years upon unanimous vote; and, 5. Assignee's concession lease will include new financial reporting to increase oversight of concession revenue and expenses. The final details of the assignment remain to be determined due to its complexity. However, approval of the lease extension and delegation of assignment authority will provide the certainty 4 the private parties require to complete their transaction. Approval of the concession assignment could save the state millions of dollars in future outlays for facility improvements and provide an opportunity for continuing Tillicum Village's unique visitor services in the challenging years ahead. REQUESTED ACTION OF COMMISSION: Staff requests that the Washington State Parks and Recreation Commission: 1. Unanimously approve the extension of the term of the Concession Lease Agreement by twenty (20) years (to a total of forty (40) years), as a condition of the assignment to a new concessionaire. 2. Adopt the statement of principles for the assignment as proposed above or as amended by the Commission. 3. Delegate authority to the Director or designee to complete the negotiation of the assignment and amendments, including additional terms and conditions deemed advisable by the Director, in a manner consistent with the adopted statement of principles and to execute all assignment(s) and other related documents necessary to complete the amendment and assignment. Author(s): Tom Oliva, Enterprise Coordinator [email protected], 360-902-8667 Return to top of document Item E-3: Capital Development Program Update -Report ACTION TAKEN: Report only, no action requested EXECUTIVE SUMMARY: This report updates the Commission on the Capital Development Program’s results and progress for the 2007-2009 biennium. Included within this report is the status of the Headquarter’s Special Projects Team projects. This item complies with o ur Centennial 2013 Plan element "Our Commitment – Facilities (Goal 4) and Your Legacy (Goals 7 -10)” and with our core values. SIGNIFICANT BACKGROUND INFORMATION: Since reorganization of t he State Parks Capital Program in 2002, program management has continued to explore ways of improving performance, customer satisfaction, and product delivery. In 2006, OFM conducted a performance audit of the Capital Program. The resulting Berk Report made 30 recommendations for improvement, including the creation of an Agency Improvement Plan. The Agency Improvement Plan was adopted by the Commission in September 2007. A recurring status report of the Capital Development Program (each Commission meeting) and the Berk Report implementation progress (quarterly at Commission meetings) will be provided. A set of initial Capital Development Program measures has been established and is reported in Appendix 1. The Legislature and the Governor approved an initial 2007-2009 biennium Capital Budget of $113,727,873.00. This was comprised of new appropriations, with a focus on the faciltity preservation element of the Centennial 2013 Plan, re-appropriations from earlier biennia, grants, 5 donations, loans (COP), and pass through funds. This report summarizes implementation progress of the 2007-2009 biennium’s Capital Development Program. Apprendix 2 shows $75,533,000 in spending and contractual obligations as of January 31, 2009. In the 2006 Supplemental Session, the Legislature and Governor approved funding for Puget Sound water quality projects as part of the Governor’s Puget Sound Cleanup Initiative. Funds are being used for development of wastewater and storm water system improvements at 25 parks located along Puget Sound and Hood Canal. Agency funding to date totals $22,153,000.00 with $4,421,000.00 spent in the 05-07 biennium and $12,791,000 spent and committed in the current biennium. Funded 2007-2009 capital projects have been assigned to each of the four (4) Regional Parks Development teams and the Headquarters based Special Projects Team for design and development. This report will provide summary information on the entire program (Appendix 2) and detailed project status information on one of the five (5) Parks Development teams
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