WASHINGTON STATE PARKS AND RECREATION COMMISSION Sept. 26, a.m. Campbell s Resort Ballrooms II and III, 104 W. Woodin Ave.

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1 WASHINGTON STATE PARKS AND RECREATION COMMISSION Sept. 26, a.m. Campbell s Resort Ballrooms II and III, 104 W. Woodin Ave., Chelan, WA Detailed Commission Agenda Items Item E-1: Item E-2: Item E-3: Item E-4: Item E-5: Item E-6: Spokane Centennial Trail direct sale to the City of Spokane Valley 2014 Agency Supplemental Budget Agency-request legislation for the 2014 Legislative Session Financial Report for the biennium budget provisos Capital construction program success update

2 Item E-1: Spokane Centennial Trail Direct Sale to the City of Spokane Valley - Requested Action EXECUTIVE SUMMARY: This item asks the Washington State Parks and Recreation Commission to unanimously find that a certain portion of parkland located within the Spokane Centennial Trail corridor cannot advantageously be used for park purposes and authorize the direct sale of approximately.2 acres to the City of Spokane Valley. This item advances the Commission Transformation Strategy: Expand use of land holdings for compatible revenue generating purposes and with the Agency culture and core values. SIGNIFICANT BACKGROUND INFORMATION: The Sullivan Road West Bridge Replacement Project will replace an existing two-lane concrete bridge over the Spokane River. The existing bridge was built in 1950 and has structural and functional safety deficiencies. The City of Spokane Valley is working on the final design for the Sullivan West Bridge Replacement Project. The city has obtained partial construction funding and expects to bid the project in December Following bid award, the project should proceed to the construction phase in the spring of 2014 and be completed by fall of The west side of the bridge project impacts undeveloped Washington State Parks Commission land located along the Spokane River on the opposite side of the river from the developed Centennial Trail. The State Park property is adjacent to Spokane Valley Sullivan Park. Staging and construction for the bridge project will use approximately 0.8 acres of city owned open park land used for picnicking and other recreational activities. Project mitigation includes approximately 0.8 acres of grassy area to be re-established on lands owned or managed by the city. The new bridge will be approximately the same length as the current bridge (approximately 500 feet total, including the approach areas), and will feature four traffic lanes and a 10-foot wide pedestrian walkway on the west edge of the new southbound bridge deck. The Spokane River separates the two right-of-way acquisition areas. On the south side of the river the 2,866 square foot right-of-way acquisition area is an L shaped parcel with an approximate maximum width of 50 feet and length of 100 feet. On the north side of the river the 5,626 square foot right-of-way acquisition area is a dagger shaped parcel with an app roximate maximum width of 50 feet, tapering to a zero foot width over a total distance of approximately 330 feet. Total Right of Way purchase area (the property proposed for sale in this Item): 8,492 square ft acres. Pursuant to Commission policy, staff to the Commission conducted a public meeting on September 5, 2013 with staff from Spokane Valley in order to share project information related to the proposed land sale. No citizens attended this public meeting. COMPENSATION: Staff to the Commission has determined the value of the land, through an appraisal, to be $11,100. Proceeds from the property sale would be deposited into the Parkland Acquisition Account. By statute, funds placed into the Parkland Acquisition Account may only be used to purchase replacement parklands. In addition, the Commission would retain a perpetual easement for public recreation which will retain the trail as it currently exists. STATUTORY ATTHORITY: RCW Sale, exchange, transfer, lease of public property authorized - Section deemed alternative. (1) The state or any municipality or

3 any political subdivision thereof, may sell, transfer, exchange, lease or otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to the state or municipality or political sub division thereof, or the federal government, etc. or a federally recognized Indian tribe, on such terms and conditions as may be mutually agreed upon by the proper authorities of the state and/or the subdivisions concerned. In addition, the state, or any municipality or any political subdivision thereof, may sell, transfer, exchange, lease, or otherwise dispose of personal property, except weapons, to a foreign entity. Appendix 1: Requested Sale Area and site photo for direct sale to the City of Spokane Valley REQUESTED ACTION OF COMMISSION: That the Washington State Parks and Recreation Commission: Unanimously find that the land described in Appendix 1 attached hereto and located within Spokane Centennial Trail cannot advantageously be used for park purposes and to authorize the direct sale of approximately.2 acres to the City of Spokane Valley. Author/Contact(s): Steve Hahn, Lands Program Manager (360) Lynn Harmon, Project Lead (360) Item E-2: 2014 Agency Supplemental Budget Requested Action EXECUTIVE SUMMARY: This item asks the Washington State Parks and Recreation Commission to approve policy direction for a 2014 Supplemental Capital and Operating Budget requests to the Office of Financial Management (OFM). This item also requests that the Commission authorize the Director or designee to make wording adjustments, technical corrections, and changes to the dollars requested in the supplemental request package, consistent with Commission policy direction, as it is finalized for submittal to OFM. This item advances the Commission Transformation Strategy Adopting a business approach to park administration and with the Agency culture and core values. SIGNIFICANT BACKGROUND INFORMATION: 2014 Supplemental Budget requests are due to OFM on October 4, The Office of Financial Management issued a memorandum on August 14, 2013 (Appendix 1) instructing agencies to confine requested items to: 1) non-discretionary changes in legally-mandated caseloads or workloads, 2) necessary technical corrections, 3) additional federal or private/local funding, and 4) highest priority policy enhancements or resource reprogramming proposals consistent with the Governor s goals under Results Washington. In addition to OFM s direction, staff is worked under the following assumptions in developing a recommended supplemental budget request:

4 1. To receive additional general fund dollars, the agency is expected to first use available revenue in the Parks Renewal and Stewardship Account (PRSA). This revenue could be previously earned and reflected in the beginning fund balance or it could be projected earnings. 2. The agency is expected to target a $5.5 million ending fund balance for June 30, 2015, even though current Commission policy is to maintain an $8.5 million fund balance. 3. An additional, $1.7 million is estimated to be available in the PRSA account after factoring in the revised beginning fund balance for and anticipated revenue adjustments in the October 2013 forecast. Appendix 1: Office of Financial Management August 14, 2013 Supplemental Budget Submittal Instructions Appendix 2: Proposed Supplemental Budget Request Items Capital and Operating Budget REQUESTED ACTION OF COMMISSION: That the Washington State Parks and Recreation Commission: 1. Approve as policy direction, the 2014 Capital and Operating Supplemental Budget requests as recommended by staff in Appendix Delegate to the Director the authority to make wording changes, technical corrections, and changes in dollar amounts requested in the operating budget supplemental request package, consistent with Commission policy direction, as it is finalized for submittal to OFM. Author/Contact(s): Shelly Hagen, Finance Director (360) Item E-3 : Agency - Request Legislation for the 2014 Session Requested Action EXECUTIVE SUMMARY: This item asks the Washington State Parks and Recreation Commission to designate three Commission members to work with the Director and staff as a legislative committee on critical and fast breaking issues prior to and during legislative sessions, and authorize the Director to submit agency-request legislation if deemed necessary and desirable upon consultation with the legislative committee. This item advances the Commission Transformation Strategy Demonstrate that all Washingtonians benefit from their state parks and with the Agency culture and core values. SIGNIFICANT BACKGROUND INFORMATION: For the past two years, the Commission has adopted the following set of principles as a basis for proposing agencyrequest legislation or taking agency positions on legislation proposed by others. 1. Promotion of budgetary adequacy and stability based on emerging realities of the Discover Pass and other existing revenue sources.

5 2. Promotion of equitable financial contributions between park users and the services received. 3. Increase in Commission flexibility and effectiveness in generating revenue or creating operational efficiencies. 4. Requirements to clear up inconsistencies in authority and procedure with our sister natural resource agencies and our internal systems. The agency s 2013 request legislation, embodying those principles, did not pass in the 2013 legislative session. Other bills during the past several sessions, including key revisions to the Discover Pass program, did pass. As the realities of the Transformation Strategy and the new State Parks financing system have had time to jell, it is a good time to revisit the agency s legislative priorities. Staff proposes the following revised principles be promoted for the 2014 legislative session: 1. Budgetary adequacy and stability. 2. Flexibility for the Commission in generating revenue or creating operational efficiencies. 3. Increasing opportunities for Washingtonians to connect with their natural and cultural heritage in state parks. 4. Clearing up inconsistencies in authority and procedure with other jurisdictions and with our internal systems. Appendix 1 describes a set of topics and positions for which agency-request legislation could emerge, or is likely to be a topic of legislative interest in the 2014 session. Detailed legislative language is still being developed at the time of this writing and will be made available to Commissioners and interested stakeholders at least one week prior to the Commission meeting. Historically, the Commission has designated three Commissioners as a legislative committee. The Director and designees have engaged with the committee on fast-breaking legislative issues during session. Staff proposes to maintain this system indefinitely, and provide summary information to all Commissioners on a regular basis during session. LEGAL AUTHORITY: RCW 79A (1) Appendix 1: Potential State Parks Legislative Agenda for the 2014 session of the Washington State Legislature. REQUESTED ACTION Of COMMISSION: That the Washington State Parks and Recreation Commission: 1. Designate three Commissioners to form a legislative committee for on-going communication with staff in preparation for and response during legislative sessions. 2. Authorize the Director and delegated staff to work with the legislative committee in developing specific legislative requests and positions on fast-breaking legislative issues. 3. Approve staff recommended legislative principles as described in this agenda item. 4. Authorize the Director or designee to submit to the Office of Financial Management 2014 legislation if deemed necessary and desirable, after consultation with the legislative committee.

6 Author/Contact(s): Daniel Farber, Director, Policy and Governmental Affairs (360) Item E-4: Financial Report for the Biennium - Report EXECUTIVE SUMMARY: This item reports to the Washington State Parks and Recreat ion Commission the status of the Agency s biennium operating and capital expenditures and revenue. This item advances the Commission Transformation Strategy: Adopting a business approach to park administration and with the Agency culture and core values. SIGNIFICANT BACKGROUND INFORMATION: The numbers provide in this report are as of June 30, 2013 which is the last month of FY13 and the biennium. This is relevant as accounting entries can be made through the end of September as part of the financial close for June 30. These numbers reflect accounting entries through September 3, Therefore, additional adjusting entries for the biennium may be made that may change these numbers as the books are finalized. These adjustments are expected to be minor. Agency Operating and Capital Expenditures Operating : The Agency is ending the biennium with spending levels within legal spending limits and with expected variances. The General Fund variance is zero. The Aquatics Land Enhancement Account variance is zero. The variance in the Parks Renewal and Stewardship Account (PRSA) is $2.3 million but may still change as adjustments are made and bills continue to be paid. When all bills are paid and financial entries made for , the fund balance for the PRSA account as of June 30, 2013 is expected to be about $13.9 million. Capital : Of the agency s $47.0 million capital budget $23.9 million was spent with $19.7 million remaining. These balances could change slightly with payment activity that occurs as final bills are paid. The agency received an $11.8 million re-appropriation for the biennium. Agency Revenue PRSA revenue as of June 30, 2013 for the Discover Pass, park donations, camping, and other revenue are 2.1% above projections. A comparison of biennium actual revenue against projections for the three categories shows: 1) Discover Pass revenue is 2.1% over projection; 2) Donations through the opt out program are.1% over projection; and 3) Revenue from camping and other sources are 2.9% over projection. Comparing actual revenues for FY13 versus FY12, the revenue trend for the Discover Pass shows an increase of 5.9%; the opt out donations shows a decrease of 5.5%; and for camping and other revenue there has been an overall increase of 5.0%.

7 Appendix 1: Operating and Capital Budget Financial Report Appendix 2: Aquatic Lands Enhancement Account (ALEA) Spending Status Appendix 3: PRSA Revenue Update Summary Appendix 4: PRSA Biennium-To-Date Revenue Collections - Actual versus Projection Author/Contact(s): Shelly Hagen, Finance Director (360) Item E-5: Budget Provisos Report EXECUTIVE SUMMARY: This item presents a summary of the specific provisions in the Operating and Capital Budgets that affect Washington State Parks. It is intended to provide an opportunity for the Commission to hear from staff about how it intends to respond to these legislative requirements and provide an opportunity for public comment. This item advances the Commission Transformation Strategy Demonstrate that all Washingtonians benefit from their state parks. and with the Agency culture and core values. SIGNIFICANT BACKGROUND INFORMATION: In addition to allocating financial resources and authorizing expenditures, the legislature has included in its Biennial Operating and Capital Budgets a number of specific directives called provisos that require actions and responses by the Washington State Parks and Recreation Commission. Some of these provisos affect many agencies. Some are directly solely at State Parks. Most of the provisos are minor and technical in nature, while others require reports where the agency has a duty and opportunity to express in broader terms its progress in meeting legislative objectives, describe its program and financial condition, outline agency goals for the future, and propose changes to statutes. A summary of the provisos is provided in Appendix 1. At the Commission meeting, staff will go over the list of provisos, identify how it intends to comply with legislative requirements, and provide an opportunity for public comment.. Appendix 1: List of legislative provisos contained in operating and capital budgets. Author/Contact(s): Daniel Farber, Policy and Governmental Affairs Director (360) Item E-6: Capital Construction Program Updates - Report

8 EXECUTIVE SUMMARY: This report updates the Commission on Capital Program results and progress for the biennium. This item advances the Commission Transformation Strategy: Demonstrate that all Washingtonians benefit from their state parks. SIGNIFICANT BACKGROUND INFORMATION: The C apital P rogram for Washington State Parks consists of projects that develop, expand and renovate park facilities. The first priority of the capital construction program are projects that support public and employee health and safety. The Legislature and Governor approved biennium Capital Budget wa s $ 46,992,700. This is comprised of new appropriations, with a focus on health and safety and the facility preservation element of the Centennial 2013 Plan, re-appropriations from earlier biennia, grants for both land acquisition and development projects, donations, pass through funds and unfunded spending authority. Appendix 1 shows $ 25,910,800 in spending and contractual obligations for the biennium as of June 30, Funded capital projects were assigned to each of the three regional capital development teams and a small headquarters group for design and development. Appendix 1: Capital Construction Program Expenditure Summary Appendix 2: Headquarters Capital Projects Status Appendix 3: Southwest Region Projects Status Appendix 4: Eastern Region Projects Status Appendix 5: Northwest Region Project Status Author/Contact(s): Richard Brown, Capital Program Manager

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