SENATE BILL NO. 278 "An Act relating to the authority of the Department of Natural Resources to allow credits against fees at state historical parks." Mr. Joe Ambrose, aide to Senator Robin Taylor was invited to join the committee and testified on behalf of SB 278. This bill was introduced to address concerns raised by the Ketchikan Area State Parks Advisory Board and the Ketchikan Gateway Borough Assembly. It would provide a mechanism by which the Division of Parks and Outdoor Recreation could acquire two small parcels of land adjacent to Totem Bight State Historical Park. Ketchikan Public Utilities will vacate the property which will revert to the Ketchikan Gateway Borough. SB 278 would allow DNR to offer credits against fees paid by commercial operators for payments made to a municipality for projects that would alleviate access congestion and parking problems at historical parks. The Division of Parks and Outdoor Recreation indicated the use of this provision at any State Historical Park other than Totem Bight is unlikely. The authority would sunset on December 31, 2000. This three year window is needed to avoid drawing too quickly against fees. Totem Bight is a twelve and a half acre State Park located north of the city of Ketchikan. It had an estimated 160,000 visitors in 1995, half of them arriving on commercial tours. In 1977 it was estimated that the park could handle between 636 and 744 people at one time. Actual use now exceeds 925 people. The park has only 7 parking spaces for buses. Up to 21 buses park in the lot, on the road shoulders and at a nearby gift shop. Park staff advises independent travellers and local park users to avoid the park when the ships are in town. To mitigate this overcrowding and congestion DNR is proposing tour operators pay for the acquisition of the borough-owned parcels to provide additional parking space and additional attractions such as trails and a carving demonstration area. The Department of Transportation has told us they are interested in developing a transport enhancement project along the road at Totem Bight if the land becomes available. Totem Bight is a valuable asset, the State has invested more than $1 million in capital improvement projects in the past 10 years. Mr. Jim Stratton, Division Director advised that they are anticipating they would be using approximately $150,000 credits for this project. Senator Taylor is a long time supporter of this unique facility on the water. Senator Rieger asked if the sponsor of the bill would object to expanding the bill to include private, non-profit corporations. Mr. Ambrose indicated the sponsor preferred to confine the bill to historical parks. Senator Sharp asked if the bill results in allowing a partial or total diversion of payments now being made to DNR to a municipality for improvements they would do on the parking lot, why doesn't the fiscal note show a reduction program receipt. Mr. Ambrose said that the department was planning to increase the fees, not as a result of this bill, and his understanding as far as the fiscal note was concerned is that the end result is the State ends up with the asset. Senator Sharp also asked about the parcel of land owned by the Ketchikan Public Utilities that they plan to vacate and would it revert back to the Ketchikan Gateway Borough. Is this a transfer or sale? Mr. Ambrose indicated that there was no sale. The property originally belonged to Ketchikan Gateway Borough and KPU had been using it. There was a reversion clause and they have to put it back in its original condition. Senator Frank asked if they were going to increase the fees because it is now a more convenient facility. Mr. Ambrose said the decision to increase the fee next year was made prior to anyone even talking about this bill. The Department would have to explain the fiscal note. Senator Rieger said if this was to be a single park it might not matter. A private, non-profit corporation in many situations would be the best entity to develope an improvement in a park. Sometimes there is some lack of confidence in the municipal government to do what the people in the area want. Instead of restricting the entity doing the improvements as to municipalities, it should be brought into private, non-profits to avoid the problems you sometimes have when city halls' views are different from those of the people outside of city hall. Senator Phillips said there is an Eagle River Visitors Center that is going to go non-profit to operate that facility and he would like to give them that ability. Co- chairman Halford said that this could be a pilot, one-time project but would not make it the policy of the State. Mr. Ambrose said that the municipality would not be making the improvement. They will be transferring the property to the State and improvements at Totem Bight State Park are made from revenue generators within the park. This matter just refers to the parking lot. Senator Frank asked if the park's budget would go down by $150,000 because the program receipts were going to go down. Co-chairman Halford indicated that they would not. In answer to questions posed by members at large, Mr. Ambrose indicated that there were other historical parks in the State, however they do not have the parking problems this one has. This is a very specific bill. When the idea came up the concern that the Co-chairman had was the first thing Senator Taylor thought about. What authority are we to give them? That is why the sunset provision is drafted as closely as it is. Senator Sharp MOVED SB 278 and without objection the bill was REPORTED OUT with individual recommendations and a zero fiscal note from the Department of Natural Resources.