BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 356                    HEARING DATE: April 26, 2011  

          AUTHOR: Blakeslee                  URGENCY: No  
          VERSION: March 25, 2011            CONSULTANT: Marie Liu  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: State parks: local operating agreements.  
          
          BACKGROUND AND EXISTING LAW
          Section 5002.2 of the Public Resources Code requires the 
          Department of Parks and Recreation (DPR) to develop a general 
          plan for each state park unit. The general plan is meant to 
          serve as the guide for future development, management, and 
          operation of the park unit and must have elements regarding 
          proposed land uses, facilities, concessions, operations, and 
          resource management. The general plan for each park unit must be 
          approved by the State Park and Recreation Commission 
          (commission).

          Article 1 (commencing with Section 5080.30) allows DPR to enter 
          into an agreement with federal or local public agencies for the 
          care, maintenance, administration, and control of any state 
          parks. Any park unit subject to such an operating agreement must 
          have a general plan that specifically addresses how the unit is 
          to be operated. The commission must determine that, according to 
          the general plan, the unit will be operated in a manner that is 
          consistent with DPR's management of similar parks, provides for 
          satisfactory park resource management, and enhances the general 
          public use and enjoyment of recreational and educational 
          experiences at the unit. The public agency must use revenues 
          received at the park unit for the operation, maintenance, or 
          improvement of that park unit. Any excess revenues must be given 
          to DPR.

          PROPOSED LAW
          This bill would require DPR to enter into an operating agreement 
          with a willing city or county for any park unit that is proposed 
          to be closed. Specifically, this bill would:
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                 Require DPR to notify the appropriate county when the 
               DPR intends to close a unit. The county would have 15 days 
               to indicate whether it will consider voluntarily operating 
               the unit. The county would have 60 days to notify DPR its 
               intent to operate a park, as indicated by a majority vote 
               of the board of supervisors at a properly noticed meeting;
                 Require DPR to notify the appropriate city if the county 
               declines to voluntarily operate a unit proposed for 
               closure. The city would have 30 days to indicate whether it 
               will consider voluntarily operating the unit. The city 
               would have 60 days to notify DPR of its intent to operate a 
               park, as indicated by a majority of city council members at 
               a property noticed public meeting;

                 Require DPR to enter into an operating agreement with a 
               willing county or city. At a minimum, the operating 
               agreement would need to include:

               o      An exemption of prevailing wage requirements for 
                 local government staff, volunteers, or cooperating 
                 associations;
               o      Allowances for the city or county to temporarily 
                 hire individual state park employees. Such employees may 
                 be provided with a leave of absence from DPR and the 
                 state would suspend its contributions to their salary and 
                 benefits;

               o      A requirement for the county or city to operate the 
                 unit consistent with the general plan;

               o      A requirement for DPR to approve any capital 
                 improvements or changes in use of the unit;

               o      An allowance for the county or city to work 
                 collaboratively with other local governments in operation 
                 and maintenance of the unit;

                 Require that operating agreements for park units 
               proposed for closure be for one to five years with the 
               possibility of renewal.
                 Exempts operating agreements for park units proposed 
               from closure from existing law regarding operating 
               agreements.

          ARGUMENTS IN SUPPORT
          According to the author, "California state parks generate value 
          revenue for our local communities. If the state cannot keep 
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          parks open, local stakeholders deserve the chance to work 
          together to protect the jobs, economic activity, and 
          recreational opportunities offered by our local parks." 

          ARGUMENTS IN OPPOSITION
          The California State Parks Foundation, with an oppose unless 
          amendment position, states, "We appreciate and agree with the 
          intent to help keep California's state parks open, particularly 
          in these difficult economic times. However, we do not believe it 
          is appropriate for the Legislature to be mandating agreements be 
          entered into in advance of negotiations that must occur between 
          willing local and state parties in assessing the assets, 
          strengths, challenges and specific management, financial and 
          operational obligations of any such operating agreement. While 
          we agree with the intent to facilitate public access and 
          enjoyment of parks that may otherwise be closed, current Public 
          Resources Code Section 5080.30 already permits the state to 
          enter into such agreements with other governmental bodies. 
          Mandating an operating agreement for a park creates 
          inconsistency in the law. We believe agreements for local 
          governments to operate state parks should be made permissive, 
          instead of mandated, as the bill currently does?We are concerned 
          that SB 356 does not acknowledge that there may be partners 
          other than local governments that are willing and able to keep a 
          state park slated for closure open to the public and that this 
          bill may create a conflict with AB 42 (Huffman), which grants 
          DPR authority to enter into operating agreements with non-profit 
          organizations."

          COMMENTS 
           Adopted budget cuts for 2011-2012 necessitate the closure of 
          state parks.  The Legislature adopted and the Governor approved 
          an $11 million reduction in General Fund support to DPR in the 
          2011-2012 budget with an additional $11 million reduction in 
          2012-2013, for an ongoing annual General Fund reduction to DPR 
          of $22 million. Given that DPR has absorbed millions of dollars 
          of cuts in past budgets, these cuts are anticipated to 
          necessitate the closure of dozens of state parks. The 
          administration has not yet released a list of proposed parks.
           
          Should DPR be required to enter into operating agreements with a 
          city or county?  Existing law gives DPR the authority to enter 
          into an agreement with cities and counties for the operation of 
          a state park unit. This bill however would require DPR to enter 
          into such an agreement if a county or city is willing. DPR would 
          not have discretion to reject a city or county's contract 
          demands, even if they are unreasonable. For example, a city or 
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          county could insist on receiving financial assistance from the 
          state for the operation of the unit or refuse to report to DPR 
          on its operating activities or finances, yet DPR would still 
          have to enter into the contract. According to the author, the 
          intent of this bill is to ensure a response by DPR to a willing 
          city or county regarding operation of a park. The committee may 
          wish to instead require that DPR enter into negotiations with 
          the city or county, as not to prejudice the outcome of 
          negotiations. �See amendment 1]
           
          Does this bill unnecessarily constrain local governments?  This 
          bill establishes a short timeline for a county or city to 
          indicate to DPR its intentions. This timeline may be 
          insufficient for the city or county to gather the data to fully 
          understand the implications of assuming operation of a state 
          park or to establishing the necessary budgeting. Thus, the city 
          or county may be required to make a decision about its intent to 
          operate a park unit with incomplete information. According to 
          the author, the short timeline is proposed to reduce the 
          likelihood that a park unit is temporarily closed while an 
          agreement is crafted. However, the bill proposes no timeline for 
          reaching the operating agreement, only for the city or county to 
          notify its intent to operate a park. Under existing law, a city 
          or county can enter into an operating agreement with DPR with no 
          such time restrictions. Also, it is unclear why the timeline 
          should be different for cities and counties, as currently 
          proposed in the bill, and whether a county should be given first 
          right of refusal over a city. The committee may wish to leave 
          open the timeline so that author can have discussions with 
          stakeholders on appropriate limits. �See amendment 2]

          Also, this bill prohibits an operating agreement from being 
          longer than five years. However, a local government may desire a 
          longer operating period in order to justify the substantial 
          efforts necessary to assume operation of a park unit.
           
          What is "closed" park?  According to DPR, budget reductions are 
          likely to be made with a combination of parks which are fully 
          closed with no public access, partial closures where the unit 
          may be open to the public with reduce hours, and seasonal 
          closures. This bill applies to any unit that is proposed for 
          "closure." Since it is unclear how an operating agreement would 
          work for a park which is partially or seasonally closed, the 
          committee may wish to limit this bill to parks which are 
          proposed for full closure with no planned public access. �See 
          amendment 3]
           
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          Should the operation of parks that are proposed for closure be 
          exempt from prevailing wage requirements?  This bill would exempt 
          local government staff, volunteers, or cooperating associations 
          from prevailing wage requirements. This exemption would only 
          apply to those persons who are working at a park unit which is 
          being operated by a city or county because it was proposed for 
          closure by the state. If such an exemption is desirable, it is 
          unclear why the exemption should only apply to a subset of units 
          under operating agreements and not the entire state park system. 
          The committee may wish to delete the prevailing wage exemption.

          Also, while it may be desirable for a local government to hire 
          state park employees that perform critical or specialized 
          functions in a park proposed for full closure, allowing DPR to 
          put such an employee on a leave of absence implies that DPR must 
          hold a position open for that employee, thus preventing DPR from 
          achieving its required budget reductions. Thus, the committee 
          may also wish to delete these hiring provisions, noting that 
          even without this language, a city or county could hire 
          desirable persons who were employed by the state when the state 
          operated the unit. �See amendment 4]
           
          Other amendments:  It is unclear why the provisions of this bill 
          should be exempted from existing requirements for operating 
          agreements. The committee may wish to delete the 
          "notwithstanding" provision in the bill. Also, the committee may 
          wish to specify that DPR must approve any agreements that the 
          city or county establishes with other local governments for the 
          operation of the unit. �See amendment 5]

           Related legislation:  SB 386 (Harman) would require DPR to post 
          on its website the name of any park intended for full closure at 
          least 30 days before closure. AB 42 (Huffman) would allow DPR to 
          enter into operating agreements with nonprofit organizations. AB 
          64 (Jeffries) would express Legislative intent to minimize park 
          closures by actively negotiating operating agreements with local 
          governments. 

          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               On page 3, line 23, delete "an agreement" and insert 
               "negotiations"

               AMENDMENT 2 
               On page 2, line 11, delete "15" and insert "___"

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               On page 2, line 19, delete "60" and insert "___"

               On page 3, line 3, delete "15" and insert "___"

               On page 3, line 9, delete "30" and insert "___"

               On page 3, line 16, delete "60" and insert "___"

               AMENDMENT 3 
               On page 2, line 6, delete "close." and insert "fully close 
               with no planned public access."

               AMENDMENT 4 
               Delete all lines from page 3, line 27 through page 4, line 
               6, inclusively.

               AMENDMENT 5
               On page 2, line 3, delete 'Notwithstanding this article, a" 
               and insert "A"

               On page 4, line 14, delete "unit." And insert "unit, with 
               approval of the department."
               
          SUPPORT
          None Received

          OPPOSITION
          State Parks Foundation (unless amended)



















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