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Calendar No. 300
104th Congress Report
SENATE
2d Session 104-202
_______________________________________________________________________
ADMINISTRATION OF CERTAIN PRESIDIO PROPERTIES AT MINIMAL COST TO THE
FEDERAL TAXPAYER
_______
January 5 (legislative day, January 3), 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1296]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 1296) to provide for the administration
of certain Presidio properties at minimal cost to the Federal
taxpayer, having considered the same, reports favorably thereon
with an amendment and recommends that the Act, as amended, do
pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. FINDINGS.
The Congress finds that--
(1) the Presidio, located amidst the incomparable scenic
splendor of the Golden Gate, is one of America's great natural
and historic sites;
(2) the Presidio is the oldest continuously operated military
post in the Nation dating from 1776, and was designated a
National Historic Landmark in 1962;
(3) preservation of the cultural and historic integrity of
the Presidio for public use recognizes its significant role in
the history of the United States;
(4) the Presidio, in its entirety, is a part of the Golden
Gate National Recreation Area, in accordance with Public Law
92-589;
(5) as part of the Golden Gate National Recreation Area, the
Presidio's significant natural, historic, scenic, cultural, and
recreational resources must be managed in a manner which is
consistent with sound principles of land use planning and
management, and which protects the Presidio from development
and uses which would destroy the scenic beauty and historic and
natural character of the area and cultural and recreational
resources;
(6) removal and/or replacement of some structures within the
Presidio must be considered as a management option in the
administration of the Presidio; and
(7) the Presidio will be managed through an innovative
public/private partnership that minimizes cost to the United
States Treasury and makes efficient use of private sector
resources.
SEC. 2. AUTHORITY AND RESPONSIBILITY OF THE SECRETARY OF THE INTERIOR.
(a) Interim Authority.--The Secretary of the Interior (hereinafter
in this Act referred to as the ``Secretary'') is authorized to manage
leases in existence on the date of this Act for properties under the
administrative jurisdiction of the Secretary and located at the
Presidio. Upon the expiration of any such lease, the Secretary may
extend such lease for a period terminating not later than 6 months
after the first meeting of the Presidio Trust. The Secretary may not
enter into any new leases for property at the Presidio to be
transferred to the Presidio Trust under this Act. Prior to the transfer
of administrative jurisdiction over any property to the Presidio Trust
and notwithstanding section 1341 of title 31 of the United States Code,
the proceeds from any such lease shall be retained by the Secretary and
such proceeds shall be available, without further appropriation, for
the preservation, restoration, operation and maintenance, improvement,
repair and related expenses incurred with respect to Presidio
properties. The Secretary may adjust the rental charge on any such
lease for any amounts to be expended by the lessee for preservation,
maintenance, restoration, improvement, repair and related expenses with
respect to properties and infrastructure within the Presidio.
(b) Public Information and Interpretation.--The Secretary shall be
responsible, in cooperation with Presidio Trust, for providing public
interpretive services, visitor orientation and educational programs on
all lands within the Presidio.
(c) Other.--Those lands and facilities within the Presidio that are
not transferred to the administrative jurisdiction of the Presidio
Trust shall continue to be managed by the Secretary. The Secretary and
the Presidio Trust shall cooperate to ensure adequate public access to
all portions of the Presidio. Any infrastructure and building
improvement projects that were funded prior to the enactment of this
Act shall be completed by the National Park Service.
(d) Park Service Employees.--Any career employee of the National
Park Service, employed at the Presidio at the time of the transfer of
lands and facilities to the Presidio Trust, shall not be separated from
the Service by reason of such transfer, unless such employee is
employed by the Trust, other than on detail. The Trust shall have sole
discretion over whether to hire any such employee or request a detail
of such employee.
SEC. 3. ESTABLISHMENT OF THE PRESIDIO TRUST.
(a) Establishment.--There is established a wholly owned government
corporation to be known as the Presidio Trust (hereinafter in this Act
referred to as the ``Trust'').
(b) Transfer.--(1) Within 60 days after receipt of a request from
the Trust for the transfer of any parcel within the area depicted as
Area B on the map entitled ``Presidio Trust Number 1,'' dated December
7, 1995, the Secretary shall transfer such parcel to the administrative
jurisdiction of the Trust. Within one year after the first meeting of
the Board of Directors of the Trust, the Secretary shall transfer to
the Trust administrative jurisdiction over all remaining parcels within
Area B. Such map shall be on file and available for public inspection
in the offices of the Trust and in the offices of the National Park
Service, Department of the Interior. The Trust and the Secretary may
jointly make technical and clerical revisions in the boundary depicted
on such map. The Secretary shall retain jurisdiction over those
portions of the building identified as number 102 as the Secretary
deems essential for use as a visitor center. The Building shall be
named the ``William Penn Mott Visitor Center''. Any parcel of land, the
jurisdiction over which is transferred pursuant to this subsection,
shall remain within the boundary of the Golden Gate National Recreation
Area.
(2) Within 60 days after the first meeting of the Board of
Directors of the Trust, the Trust and the Secretary shall determine
cooperatively which records, equipment, and other personal property are
deemed to be necessary for the immediate administration of the
properties to be transferred, and the Secretary shall immediately
transfer such personal property to the Trust. Within one year after the
first meeting of the Board of Directors of the Trust, the Trust and the
Secretary shall determine cooperatively what, if any, additional
records, equipment, and other personal property used by the Secretary
in the administration of the properties to be transferred should be
transferred to the Trust.
(3) The Secretary shall transfer, with the transfer of
administrative jurisdiction over any property, the unobligated balance
of all funds appropriated to the Secretary, all leases, concessions,
licenses, permits, and other agreements affecting such property.
(c) Board of Directors.--
(1) In general.--The powers and management of the Trust shall
be vested in a Board of Directors (hereinafter referred to as
the ``Board'') consisting of the following 7 members:
(A) the Secretary of the Interior or the Secretary's
designee; and
(B) six individuals, who are not employees of the
Federal Government, appointed by the President, who
shall possess extensive knowledge and experience in one
or more of the fields of city planning, finance, real
estate development, and resource conservation. At least
one of these individuals shall be a veteran of the
Armed Services. At least 3 of these individuals shall
reside in the San Francisco Bay Area. The President
shall make the appointments referred to in this
subparagraph within 90 days after the enactment of this
Act and shall ensure that the fields of city planning,
finance, real estate development, and resource
conservation are adequately represented. Upon
establishment of the Trust, the Chairman of the Board
of Directors of the Trust shall meet with the Chairman
of the Energy and Natural Resources Committee of the
United States Senate and the Chairman of the Resources
Committee of the United States House of
Representatives.
(2) Terms.--Members of the Board appointed under paragraph
(1)(B) shall each serve for a term of 4 years, except that of
the members first appointed, 3 shall serve for a term of 2
years. Any vacancy in the Board shall be filled in the same
manner in which the original appointment was made, and any
member appointed to fill a vacancy shall serve for the
remainder of the term for which his or her predecessor was
appointed. No appointed member may serve more than 8 years in
consecutive terms.
(3) Quorum.--Four members of the Board shall constitute a
quorum for the conduct of business by the Board.
(4) Organization and compensation.--The Board shall organize
itself in such a manner as it deems most appropriate to
effectively carry out the authorized activities of the Trust.
Board members shall serve without pay, but may be reimbursed
for the actual and necessary travel and subsistence expenses
incurred by them in the performance of the duties of the Trust.
(5) Liability of directors.--Members of the Board of
Directors shall not be considered federal employees by virtue
of their membership on the Board, except for purposes of the
Federal Tort Claims Act and the Ethics in Government Act, and
the provisions of chapter 11 of title 18, United States Code.
(6) Meetings.--The Board shall meet at least three times per
year in San Francisco and at least two of those meetings shall
be open to the public. Upon a majority vote, the Board may
close any other meetings to the public. The Board shall
establish procedures for providing public information and
opportunities for public comment regarding policy, planning,
and design issues through the Golden Gate National Recreation
Area Advisory Commission.
(7) Staff.--The Trust is authorized to appoint and fix the
compensation and duties of an executive director and such other
officers and employees as it deems necessary without regard to
the provisions of title 5, United States Code, governing
appointments in the competitive service, and may pay them
without regard to the provisions of chapter 51, and subchapter
III of chapter 53, title 5, United States Code, relating to
classification and General Schedule pay rates, except that no
officer or employee may receive a salary which exceeds the
salary payable to officers or employees of the United States
classified at level IV of the Executive Schedule.
(8) Necessary powers.--The Trust shall have all necessary and
proper powers for the exercise of the authorities vested in it.
(9) Taxes.--The Trust and all properties administered by the
Trust shall be exempt from all taxes and special assessments of
every kind by the State of California, and its political
subdivisions, including the city and county of San Francisco.
(10) Government corporation.--(A) The Trust shall be treated
as a wholly owned Government corporation subject to chapter 91
of title 31, United States Code (commonly referred to as the
Government Corporation Control Act). Financial statements of
the Trust shall be audited annually in accordance with section
9105 of title 31 of the United States Code.
(B) At the end of each calendar year, the Trust shall submit
to the Committee on Energy and Natural Resources of the United
States Senate and the Committee on Resources of the House of
Representatives a comprehensive and detailed report of its
operations, activities, and accomplishments for the prior
fiscal year. The report also shall include a section that
describes in general terms the Trust's goals for the current
fiscal year.
SEC. 4. DUTIES AND AUTHORITIES OF THE TRUST.
(a) Overall Requirements of the Trust.--The Trust shall manage the
leasing, maintenance, rehabilitation, repair and improvement of
property within the Presidio under its administrative jurisdiction
using the authorities provided in this section, which shall be
exercised in accordance with the purposes set forth in section 1 of the
Act entitled ``An Act to establish the Golden Gate National Recreation
Area in the State of California, and for other purposes,'' approved
October 27, 1972 (Public Law 92-589; 86 Stat. 1299; 16 U.S.C. 460bb),
and in accordance with the general objectives of the General Management
Plan (hereinafter referred to as the ``management plan'') approved for
the Presidio.
(b) The Trust may participate in the development of programs and
activities at the properties transferred to the Trust. The Trust shall
have the authority to negotiate and enter into such agreements, leases,
contracts and other arrangements with any person, firm, association,
organization, corporation or governmental entity, including, without
limitation, entities of federal, State and local governments as are
necessary and appropriate to finance and carry out its authorized
activities. Any such agreement may be entered into without regard to
section 321 of the Act of June 30, 1932 (40 U.S.C. 303b). The Trust
shall establish procedures for lease agreements and other agreements
for use and occupancy of Presidio facilities, including a requirement
that in entering into such agreements the Trust shall obtain reasonable
competition. The Trust may not dispose of or convey fee title to any
real property transferred to it under this Act. Federal laws and
regulations governing procurement by federal agencies shall not apply
to the Trust except that the Trust, in consultation with the
Administrator of Federal Procurement Policy, shall establish and
promulgate procedures applicable to the Trust's procurement of goods
and services including, but not limited to, the award of contracts on
the basis of contractor qualifications, price, commercially reasonable
buying practices, and reasonable competition.
(c) The Trust shall develop a comprehensive program for management
of those lands and facilities within the Presidio which are transferred
to the administrative jurisdiction of the Trust. Such program shall be
designed to reduce expenditures by the National Park Service and
increase revenues to the federal government to the maximum extent
possible. In carrying out this program, the Trust shall be treated as a
successor in interest to the National Park Service with respect to
compliance with the National Environmental Policy Act and other
environmental compliance statutes. Such program shall consist of--
(1) demolition of structures which in the opinion of the
Trust, cannot be cost-effectively rehabilitated, and which are
identified in the management plan for demolition,
(2) evaluation for possible demolition or replacement those
buildings identified as categories 2 through 5 in the Presidio
of San Francisco Historic Landmark Direct Historic American
Buildings Survey Report, dated 1985,
(3) new construction limited to replacement of existing
structures of similar size in existing areas of development,
and
(4) examination of a full range of reasonable options for
carrying out routine administrative and facility management
programs.
The Trust shall consult with the Secretary in the preparation of this
program.
(d) To augment or encourage the use of non-federal funds to finance
capital improvements on Presidio properties transferred to its
jurisdiction, the Trust, in addition to its other authorities, shall
have the following authorities subject to the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.):
(1) The authority to guarantee any lender against loss of
principal or interest on any loan, provided that (A) the terms
of the guarantee are approved by the Secretary of the Treasury,
(B) adequate subsidy budget authority is provided in advance in
appropriations acts, and (C) such guarantees are structured so
as to minimize potential cost to the federal Government. No
loan guarantee under this Act shall cover more than 75 percent
of the unpaid balance of the loan. The Trust may collect a fee
sufficient to cover its costs in connection with each loan
guaranteed under this Act. The authority to enter into any such
loan guarantee agreement shall expire at the end of 15 years
after the date of enactment of this Act.
(2) The authority, subject to appropriations, to make loans
to the occupants of property managed by the Trust for the
preservation, restoration, maintenance, or repair of such
property.
(3) The authority to issue obligations to the Secretary of
the Treasury, but only if the Secretary of the Treasury agrees
to purchase such obligations after determining that the
projects to be funded from the proceeds thereof are credit
worthy and that a repayment schedule is established and only to
the extent authorized in advance in appropriations acts. The
Secretary of the Treasury is authorized to use as a public debt
transaction the proceeds from the sale of any securities issued
under chapter 31 of title 31, United States Code, and the
purposes for which securities may be issued under such chapter
are extended to include any purchase of such notes or
obligations acquired by the Secretary of the Treasury under
this subsection. Obligations issued under this subparagraph
shall be in such forms and denominations, bearing such
maturities, and subject to such terms and conditions, as may be
prescribed by the Secretary of the Treasury, and shall bear
interest at a rate determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding
marketable obligations of the United States of comparable
maturities. No funds appropriated to the Trust may be used for
repayment of principal or interest on, or redemption of,
obligations issued under this paragraph.
(4) The aggregate amount of obligations issued under this
subsection which are outstanding at any one time may not exceed
$50,000,000.
(e) The Trust may solicit and accept donations of funds, property,
supplies, or services from individuals, foundations, corporations, and
other private or public entities for the purpose of carrying out its
duties. The Trust shall maintain a liaison with the Golden Gate
National Park Association.
(f) Notwithstanding section 1341 of title 31 of the United States
Code, all proceeds received by the Trust shall be retained by the
Trust, and such proceeds shall be available, without further
appropriation, for the preservation, restoration, operation and
maintenance, improvement, repair and related expenses incurred with
respect to Presidio properties under its administrative jurisdiction.
Upon the Request of the Trust, the Secretary of the Treasury shall
invest excess moneys of the Trust in public debt securities with
maturities suitable to the needs of the Trust.
(g) The Trust may sue and be sued in its own name to the same
extent as the federal government. Litigation arising out of the
activities of the Trust shall be conducted by the Attorney General;
except that the Trust may retain private attorneys to provide advice
and counsel. The District Court for the Northern District of California
shall have exclusive jurisdiction over any suit filed against the
Trust.
(h) The Trust shall enter into a Memorandum of Agreement with the
Secretary, acting through the Chief of the United States Park Police,
for the conduct of law enforcement activities and services within those
portions of the Presidio transferred to the administrative jurisdiction
of the Trust.
(i) The Trust is authorized, in consultation with the Secretary, to
adopt and to enforce those rules and regulations that are applicable to
the Golden Gate National Recreation Area and that may be necessary and
appropriate to carry out its duties and responsibilities under this
Act. The Trust shall give notice of the adoption of such rules and
regulations by publication in the Federal Register.
(j) For the purpose of compliance with applicable laws and
regulations concerning properties transferred to the Trust by the
Secretary, the Trust shall negotiate directly with regulatory
authorities.
(k) Insurance.--The Trust shall require that all leaseholders and
contractors procure proper insurance against any loss in connection
with properties under lease or contract, or the authorized activities
granted in such lease or contract, as is reasonable and customary.
(l) Building Code Compliance.--The Trust shall bring all properties
under its administrative jurisdiction into compliance with federal
building codes and regulations appropriate to use and occupancy within
10 years after the enactment of this Act to the extent practicable.
(m) Leasing.--In managing and leasing the properties transferred to
it, the Trust consider the extent to which prospective tenants
contribute to the implementation of the General Management Plan for the
Presidio and to the maximum generation of revenues to the federal
government. The Trust shall give priority to the following categories
of tenants: tenants that enhance the financial viability of the
Presidio; tenants that maximize the amount of revenues to the federal
government; and tenants that facilitate the cost-effective preservation
of historic buildings through their reuse of such buildings.
(n) Reversion.--If, at the expiration of 15 years, the Trust has
not accomplished the goals and objectives of the plan required in
section (5)(b) of this Act, then all property under the administrative
jurisdiction of the Trust pursuant to section (3)(b) of this Act shall
be transferred to the Administrator of the General Services
Administration to be disposed of in accordance with the procedures
outlined in the Defense Authorization Act of 1990 (104 stat. 1809), and
any real property so transferred shall be deleted from the boundary of
the Golden Gate National Recreation Area.
SEC. 5. LIMITATIONS ON FUNDING.
(a)(1) From amounts made available to the Secretary for the
operation of areas within the Golden Gate National Recreation Area, not
more than $25,000,000 shall be available to carry out this Act in each
fiscal year after the enactment of this Act until the plan is submitted
under subsection (b). Such sums shall remain available until expended.
(2) After the plan required in subsection (b) is submitted, and for
each of the 14 fiscal years thereafter, there are authorized to be
appropriated to the Trust not more than the amounts specified in such
plan. Such sums shall remain available until expended. Of such sums,
not more than $3 million annually shall be available through the Trust
for law enforcement activities and services to be provided by the
United States Park Police at the Presidio in accordance with section
4(h) of this Act.
(b) Within one year after the first meeting of the Board of
Directors of the Trust, the Trust shall submit to Congress a plan which
includes a schedule of annual decreasing federally appropriated funding
that will achieve, at a minimum, self-sufficiency for the Trust within
15 complete fiscal years after such meeting of the Trust.
(c) The Administrator of the General Services Administration shall
provide necessary assistance to the Trust in the formulation and
submission of the annual budget request for the administration,
operation, and maintenance of the Presidio.
SEC. 6 GENERAL ACCOUNTING OFFICE STUDY.
(a) Three years after the first meeting of the Board of Directors
of the Trust, the General Accounting Office shall conduct an interim
study of the activities of the Trust and shall report the results of
the study to the Committee on Energy and Natural Resources and the
Committee on Appropriations of the United States Senate, and the
Committee on Resources and Committee on Appropriations of the House of
Representatives. The study shall include, but shall not be limited to,
details of how the Trust is meeting its obligations under this Act.
(b) In consultation with the Trust, the General Accounting Office
shall develop an interim schedule and plan to reduce and replace the
federal appropriations to the extent practicable for interpretive
services conducted by the National Park Service, and law enforcement
activities and services, fire and public safety programs conducted by
the Trust.
(c) Seven years after the first meeting of the Board of Directors
of the Trust, the General Accounting office shall conduct a
comprehensive study of the activities of the Trust, including the
Trust's progress in meeting its obligations under this Act, taking into
consideration the results of the study described in meeting its
obligations under this Act, taking into consideration the results of
the study described in subsection (a) and the implementation of plan
and schedule required in subsection (b). The General Accounting Office
shall report the results of the study, including any adjustments to the
plan and schedule, to the Committee on Energy and Natural Resources and
the Committee on Appropriations of the United States Senate, and the
Committee on Resources and Committee on Appropriations of the House of
Representatives.
purpose of the measure
The purpose of the bill is to provide a cost-effective
approach for the future management of the Presidio of San
Francisco.
background and need
The Presidio, located on the northern point of the San
Francisco peninsula, was first established by Spanish explorer
Juan Bautista de Anza in 1776, seven years after the arrival of
the Spanish into what is today the San Francisco area. The
Presidio served as a Spanish fort until Mexico's independence
from Spain in 1816. The United States took possession in 1848,
following the Mexican-American War. The site, the oldest
continuously operated military post in the country, has been
administered as an army fort following acquisition by the
United States. Today the site occupies approximately 1,480
acres within the City and County of San Francisco, at the
southern end of the Golden Gate Bridge.
The Presidio includes a wide variety of natural, cultural,
historical, and recreational resources. The entire Presidio
complex has been designated as a National Historic Landmark. In
addition, the area provides important habitat for many Federal
and State threatened, rare and endangered plants and animals.
The Presidio also includes over 800 buildings, of which 450 are
historically significant; Lobos Creek, the last free-flowing
stream remaining in San Francisco; and a forest of over 400,000
trees planted in the 1880's.
The site includes a number of recreational resources,
including a golf course, swimming pool, bowling alley, tennis
court, hiking trails, and beaches. Scattered throughout the
grounds are over 1,200 residential units and over 6.2 million
square feet of building space, including office, warehouse and
industrial, retail, and medical complexes. The base houses the
former Letterman Army Medical Center, a 550-bed acute care
facility, and the former Letterman Army Institute of Research
(LAIR). The Presidio is also the site of the San Francisco
National Cemetery.
In 1972, Congress established the Golden Gate National
Recreation Area (GGNRA). The GGNRA encompasses approximately
73,000 acres, including waterfront areas along the San
Francisco Bay and ocean front south to the San Francisco
watershed lands in San Mateo County, to lands extending north
of the Golden Gate to Tomales Bay in Marin County.
Section 3(f) of the GGNRA enabling legislation (Public Law
92-589) provided that when the Presidio was determined to be
excess to the needs of the Department of Defense, jurisdiction
over the site was to be transferred to the Secretary of the
Interior, to be administered as part of the GGNRA.
The Base Closure and Realignment Act of 1988 provided for
the closure of 86 military bases, including the Presidio. Under
the provisions of that Act, the Army was required to leave the
Presidio no later than September, 1995. In 1990, the Department
of Defense and the Department of the Interior entered into an
interagency agreement to establish a framework and time line
for the transfer of the Presidio to the National Park Service.
In 1993, the Base Closure and Realignment Commission
amended its report to recommend that the 6th Army headquarters
should remain at the Presidio. The Commission also recommended
that the Department of the Interior and the Department of
Defense negotiate a lease favorable to both tenets. The Park
Service supported the decision to keep the 6th Army
headquarters at the Presidio to help defray operating costs.
In October 1993, after 3 years of preparation, the Park
Service completed its draft general management plan for the
Presidio complex. Under the plan, 475 historic buildings would
be rehabilitated, and 300 buildings would be removed. According
to the plan, ``public and private organizations would join the
Park Service in demonstrating technologies and practices that
reduce environmental impacts, or produce environmental
benefits.'' At the same time, the 6th Army would continue to
use approximately 30 percent of the Presidio's square footage,
including about half of the available housing.
In 1994, the Department of Defense announced that the 6th
Army Headquarters would be leaving the Presidio and in
September of the same year the 1,480-acre base officially
became part of the GGNRA.
The Presidio General Management Plan (referred to above)
proposed creating a public benefit corporation that would be
responsible for leasing the buildings to tenants, similar in
style to the Pennsylvania Avenue Development Corporation. H.R.
1296 would establish a functionally similar ``Presidio Trust.''
During the first session of the 103rd Congress, legislation
was enacted (title II of Public Law 103-175), to grant the
Secretary of the Interior authority to lease the Letterman-LAIR
medical research complex, and for 5 years, to retain the lease
proceeds to offset expenses associated with the management of
the Presidio. Under provisions of the National Park Service
Concessions Policy Act and the National Park Service General
Authorities Act, the National Park Service has, to date,
awarded twenty-four leases for several facilities throughout
the Presidio.
legislative history
H.R. 1296 was introduced by Representative Pelosi. The
House passed the measure by a vote of 317 to 101. Senators
Boxer and Feinstein introduced companion legislation, S. 594,
on March 22, 1995. Cosponsors include Senators Campbell,
Daschle, Jeffords, and Dole. The Senate Subcommittee on Parks,
Historic Preservation and Recreation held a hearing on S. 594
on June 27, 1995. A hearing was held by the full Committee on
both H.R. 1296 and S. 594 on December 20, 1995.
During the 103rd Congress, similar bills were introduced in
both the House and Senate. Senators Boxer and Feinstein
introduced S. 1639, and the Subcommittee held a hearing on May
12, 1994. The House passed H.R. 3433 on September 22, 1994. The
Committee reported H.R. 3433, but the Senate failed to complete
action on the bill in the final days of the 103rd Congress.
At the business meeting on December 6, 1995, the Committee
on Energy and Natural Resources ordered H.R. 1296, as amended,
favorably reported.
committee recommendations and tabulation of votes
The Committee on Energy and Natural Resources, in open
business session on December 21, 1995, by a unanimous vote of a
quorum present, recommends that the Senate pass H.R. 1296, if
amended as described herein.
The rollcall vote on reporting the measure was 20 yeas, 0
nays, as follows:
YEAS NAYS
Mr. Murkowski
Mr. Hatfield
Mr. Domenici
Mr. Nickels \1\
Mr. Craig
Mr. Campbell
Mr. Thomas
Mr. Kyl
Mr. Grams
Mr. Jeffords \1\
Mr. Burns
Mr. Johnston \1\
Mr. Bumpers
Mr. Ford \1\
Mr. Bradley \1\
Mr. Bingaman \1\
Mr. Akaka
Mr. Wellstone \1\
Mr. Heflin \1\
Mr. Dorgan \1\
\1\ Indicates voted by proxy.
COMMITTEE AMENDMENT
During the consideration of H.R. 1296, the Committee
adopted an amendment in the nature of a substitute. The
amendment makes several substantial changes, as well as a
number of technical, clarifying, and conforming changes.
The amendment directs the National Park Service to complete
any infrastructure and building improvement projects funded
prior to enactment of this Act.
The amendment contains a new map reference which specifies
the area to be transferred to the administrative jurisdiction
of the Trust. This area includes most portions of the Presidio
occupied by the 6th Army prior to its departure, as well as
some additional lands and structures, including the water plant
adjacent to Baker Beach and maintenance buildings north of
Crissy Field Avenue. The National Park Service will maintain
administrative jurisdiction over most of the lands it managed
prior to the departure of the 6th Army, including Baker Beach,
Fort Point, and much of Crissy Field. The Trust is prohibited
from transferring administrative jurisdiction for any areas
transferred to it back to the Secretary of the Interior;
however, this does not preclude the Trust from entering into
arrangements with the Secretary to conduct activities and
provide services on lands under the Trust's administrative
jurisdiction, nor does it prevent the Trust and National Park
Service from negotiating minor boundary adjustments along the
boundaries of those lands assigned to the administrative
jurisdiction of the Trust.
The amendment directs the Secretary and the Trust to
determine cooperatively which personal property associated with
the real property transferred to the administrative
jurisdiction of the Trust (such as equipment, records,
furnishings, etc.) should be transferred to the Trust.
Unobligated funds, leases, contracts, licenses, and other
agreements affecting the transferred property shall also be
transferred from the Secretary to the Trust.
The selection criteria for appointment of members to the
Board of Directors of the Trust ensure that the fields of city
planning, finance, real estate development, and resource
conservation are adequately represented. The Trust is
authorized to hire and pay staff as necessary with a limitation
on salaries of that amount set for federal employees classified
at level IV of the Executive Schedule.
The amendment exempts the Trust and all properties
administered by the Trust from all taxes and special
assessments by the State of California. This provision does not
exempt the activities of tenants from applicable sales tax and
other taxes as may be appropriate. The Trust is exempted from
Federal procurement laws and regulations, except that the Trust
must establish and promulgate, in consultation with the
Administrator of Federal Procurement Policy, procedures
applicable to its procurement of goods and services.
The Trust is directed to reduce expenditures by the
National Park Service and increase revenue to the Federal
Government by developing and carrying out a comprehensive
program for managing properties under its administration
jurisdiction; however, neither the Trust, nor any activity
carried out by it pursuant to the comprehensive program are
exempt from the requirements of any laws pertaining to historic
preservation or environmental protection.
The amendment clarifies that the forum for litigation
involving the Trust shall be with the District Court for the
Northern District of California.
The Trust is directed to enter into a Memorandum of
Agreement with the Secretary, acting through the U.S. Park
Police for the provision of law enforcement services and
activities on Presidio properties under the Trust's
administrative jurisdiction.
The Committee recognizes that the Trust shall be insured to
the same extent as the Secretary with respect to properties
under its administrative jurisdiction; however, the amendment
directs the Trust to require that lease holders and contractors
procure the proper insurance, as is reasonable and customary.
The amendment establishes a 15-year time frame for the
Trust to reach self-sufficiency. Within a year after the first
meeting of the Trust, the Trust must submit a plan which
includes a schedule for annually decreasing federal
appropriations to meet the 15-year goal. Until the plan is
submitted, $25 million will be made available from the
appropriation received by the Secretary for the operation of
the Presidio. For each of the 14 fiscal years following
submission of the plan, the amount set forth in the plan would
be the authorized appropriation level and would be available
annually until expended. From the funds authorized for the
Trust, $3 million shall be available to the Trust for law
enforcement activities conducted by the U.S. Park Police on
those parts of the Presidio transferred to the administrative
jurisdiction of the Trust. The Trust will receive assistance
from the General Services Administration in formulating and
submitting the annual budget.
The amendment directs the General Accounting Office (GAO)
to conduct two studies of the Trust's activities. Three years
after the Trust's first Board meeting, the GAO shall conduct an
interim study on the activities of the Trust and submit the
results to the Committee on Energy and Natural Resources of the
Senate and Committee on Resources of the House of
Representatives. Seven years after the Trust's first Board
meeting, GAO shall conduct a comprehensive study of the Trust's
activities. The GAO is also responsible for developing an
interim plan in consultation with the Trust to reduce and
replace federal appropriations for NPS interpretive services,
and law enforcement, fire, and public safety services provided
by the Trust.
The amendment contains a reversionary clause which provides
that if, fifteen years after the Trust is a functional entity,
the Trust has been unable to meet the objectives and goals of
the plan, the properties under its administrative jurisdiction
shall be disposed of by the General Services Administration
using procedures outline in the Defense Authorization Act of
1990.
section-by-section analysis
Section 1 contains six findings about the Presidio. These
findings include: statements describing the Presidio's natural,
historical, scenic, cultural, and recreational resources;
acknowledgment of the importance of managing those resources in
a manner to protect the Presidio from uses which would destroy
its resource values and scenic beauty; and a proposed public/
private management structure for the Presidio.
Section 2 outlines the responsibilities of the Secretary of
the Interior at the Presidio until the Presidio Trust (the
``Trust'') is established and until administrative jurisdiction
of certain Presidio properties is transferred from the
Secretary to the Trust.
Subsection (a) allows the Secretary to continue to manage
leases for properties to be transferred to the Presidio Trust
in existence on the date of enactment of the Act until the
Trust is a functional entity. Additionally, the section
provides for the continuation of any leases which may expire
prior to establishment of the Trust. This section also permits
NPS to retain proceeds from any lease and utilize such funds,
without further appropriation, to assist in funding for the
Presidio until the transfer of administrative jurisdiction of
the leased property. The subsection waives the requirement that
the Federal Government receive only monetary consideration for
a lease to give the Secretary flexibility to negotiate a lease
agreement which would allow the tenant to finance the repair or
rehabilitation of all or part of the building it is occupying.
Subsection (b) recognizes the expertise of NPS in providing
interpretive services, and visitor information and education
programs. This subsection establishes that the Secretary shall
be responsible for these services and programs throughout the
Presidio, both on lands managed by the Secretary and on lands
under the administrative jurisdiction of the Trust.
Subsection (c) provides that those lands not transferred to
the Trust will continue to be managed by the Secretary as part
of Golden Gate National Recreation Area. These lands consist
primarily of lands within the Presidio which were managed by
the Secretary prior to October 1, 1994. Funding for the
administration of these lands has been previously estimated by
NPS to be about $400,000 and these funds are already included
in the operating base for Golden Gate National Recreation Area.
This subsection also authorizes the National Park Service to
complete infrastructure and building improvement projects that
were funded prior to enactment of this Act.
Subsection (d) protects NPS career employees from any
termination action as a result of the implementation of this
legislation. The Committee recognizes that there are a number
of long-term career employees who could be adversely affected
by this legislation and expects the National Park Service to
find suitable positions for these employees within the agency.
The Trust may elect to hire some employees currently working
for the NPS; however, the Committee does not intend this
provision to establish any requirement that the Trust hire NPS
employees, nor that any NPS employee be required to work for or
be detailed to the Trust.
Section 3 establishes the Presidio Trust and outlines its
duties and authorities. The Presidio Trust would be an
independent government corporation established in accord with
the Government Corporation Control Act.
Subsection (b) transfers administrative jurisdiction over
about 80 percent of the lands at the Presidio, depicted as
``Area B'' on the map referred to in the subsection from the
Secretary to the Trust over a period of up to one year the
first meeting of the Trust's Board of Directors. The Trust and
the Secretary may make jointly technical and clerical revisions
in the boundary depicted on the map.
All properties within Area B are to be transferred to the
administrative jurisdiction of the Trust within one year of the
first meeting of the Trust's Board of Directors. The Trust may
request transfer of administrative jurisdiction over properties
within Area B at any time after its establishment, with the
Secretary to transfer such properties within 60 days of a
request from the Trust. In addition to parcels identified on
the referenced map, 60 days after the first meeting of the
Trust's Board, the Trust and the Secretary are to determine
jointly which records, equipment, and other personal property
are needed for administration of those portions of the Presidio
transferred to the Trust. Within one year of the Trust's first
Board meeting, the Trust and the Secretary shall agree on what
additional records, equipment, etc. shall be transferred to the
Trust.
With the transfer of administrative jurisdiction over any
property, any remaining unobligated funds and revenues
associated with operation of those portions of the Presidio
transferred to the Trust, all leases, licenses, permits, and
other agreements associated with the transferred property shall
also be transferred from the Secretary to the Trust.
This subsection also authorizes NPS to establish a visitor
center at the main post of the Presidio, to be named for in
honor of the former NPS Director, William Penn Mott. While the
visitor center will be located on properties administratively
transferred to the Trust, the Committee acknowledges that it is
a suitable site for this facility and will enhance public
enjoyment of all lands within the Presidio.
The Committee recognizes there are certain buildings within
Area B currently occupied and used by the National park Service
which serve essential purposes for Golden Gate National
Recreation Area and could benefit the operations of the Trust.
These include buildings used for public safety, fire
protection, a communications center, U.S. Park Police stables,
maintenance facilities, a records center, museum, and other
similar activities. It is the intent of the Committee that the
Trust make every effort to accommodate continued National Park
Service use and occupancy of those facilities needed for
overall park operations of Golden Gate National Recreation
Area.
Subsection (c) provides for establishment of a seven member
Board of Directors to guide the activities of the Trust. There
is a 90-day deadline for the appointment by the President of
the Board of Directors. The Committee continues it essential
that the Board be established as soon as possible. The makeup
of the Board is to include expertise in the fields of city
planning, finance, real estate development, and resource
conservation. Upon establishment of the Board, the Chairman of
the Board of Directors of the Trust is directed to meet with
the Chairmen of the Committee on Energy and Natural Resources
of the United States Senate and the Committee on Resources of
the United States House of Representatives. This subsection
also describes terms to be served by Board members and directs
that members shall serve without pay, but may be reimbursed for
travel and other incidental expenses incurred during the
conduct of Trust duties.
The Board of Directors is expected to adopt guidelines
consistent with current Federal law and regulations concerning
ethics, conflict of interest and financial disclosure.
Subsection (c)(6) require the Board to meet at least three
times per year in San Francisco, with two of those meetings
open to the public. The Trust is a government corporation
acting on behalf of the public benefit and interest; therefore,
the Board is encouraged, to the extent practicable, to be open
and accessible to persons and organizations interested in the
activities of the Trust.
Subsection (c)(7) authorizes the Trust to hire such staff
as are necessary. The salary of any staff member shall not
exceed the salary payable to Federal employees classified at
level IV of the Executive Schedule.
Subsection (c)(8) provides that the Trust shall have all
necessary and proper powers for the exercise of authorities
vested in it.
Subsection (c)(9) provides that the Trust will be exempt
from State and local taxes. Activities of tenants are not
exempted from applicable sales tax and other taxes as may be
appropriate.
Subsection (c)(10) provides that the financial records of
the Trust shall be audited in accordance with the Government
Corporation Control Act (31 U.S.C. 9105). This analysis, along
with a detailed annual report, shall be submitted to the
appropriate Congressional committees.
Section 4 outlines the duties and authorities of the Trust.
Subsection (4)(a) directs that the Trust carry out its
activities in accord with Section 1 of the legislation
establishing Golden Gate National Recreation Area, as well as
the general objectives of the approved general management plan
for the Presidio. The Committee notes that each of the
authorities provided the Trust in this section is to be
exercised in accordance with this applicable law and general
management plan.
Subsection (b) authorizes the Trust to enter into
contracts, leases, cooperative agreements, or other agreements
with any person, firm, organization, corporation or government
entity as necessary to carry out its activities. This
subsection waives the requirement that the Trust receive only
monetary consideration for a lease to give the Trust the
flexibility to negotiate a lease agreement which would allow
the tenant to finance the repair or rehabilitation of part or
all of the building it is occupying. This subsection also
exempts the Trust from Federal procurement laws and
regulations, except that the Trust, in consultation with the
Administrator of Federal Procurement Policy, must establish and
promulgate procedures applicable to the Trust's procurement of
goods and services.
Subsection (c) directs the Trust to develop a program to
reduce costs associated with the portions of the Presidio under
its administrative jurisdiction. Development of a comprehensive
program is essential to ensure the success of the Presido Trust
and the long-term preservation of the historical and other
resources of the Presidio. The Trust is directed to carefully
examine the retention of each building at the Presidio, using
criteria of: (1) cost-effectiveness of rehabilitation and
specific recommendations for building demolition in the General
Management Plan; (2) evaluation of buildings in the Presidio of
San Francisco Historic Landmark District Historic American
Buildings Survey Report of 1985; (3) new construction limited
to replacement of existing structures; and (4) examination of a
full range of options for carrying out routine administrative
and facility management programs. This section does not exempt
the Trust from the provisions of any environmental or historic
preservation law.
Subsection (d) provides several authorities designed to
augment or encourage the use of non-Federal funds of finance
capital improvements. The Trust is authorized to guarantee
loans to a potential lessee. This authority could only be
exercised upon approval of the Treasury Department. This
subsection authorizes the Treasury Department to purchase debt
issued by the Trust to the extent provided in advance in
appropriation acts. The amount of borrowed funds outstanding at
any one time can not exceed $50 million. The authorization of
funding under this section would be based on the Secretary of
the Treasury's determination of the creditworthiness of
projects.
Subsection (e) authorizes the Trust to solicit and accept
donations of funds, property, supplies, or services from
individuals, foundations, corporations, and other private
entities, consistent with applicable laws and regulations.
Subsection (f) authorizes the Trust to retain any revenues
from leases or other agreements concerning property under the
administrative jurisdiction of the Trust.
Subsection (g) provides that the Trust may be sued in its
own name to the same extent as the Federal Government. The
Attorney General shall conduct litigation arising out of the
Trust's activities. Any suit filed against the Trust shall be
under the exclusive jurisdiction of the District Court for the
Northern District of California.
Subsections (h) and (i) direct the Trust to enter into an
agreement with the Secretary for the United States Park Police
to provide law enforcement activities and services within the
Presidio. The Trust is further authorized to adopt and enforce
rules and regulations applicable to Golden Gate National
Recreation area.
Subsection (j) provides that the Trust shall work directly
with appropriate local, State and Federal regulatory agencies.
It is the intent of the Committee that the Trust shall comply
as a Federal agency with the provisions of all historic
preservation and environmental laws.
Subsection (k) directs that the Trust shall require that
all leaseholders and contractors procure proper insurance, as
is reasonable and customary, against loss in connection with
properties or authorized activities under lease or contract.
Subsection (l) requires the Trust to bring the buildings
under its jurisdiction into compliance with Federal building
codes and regulations within 10 years, to the extent
practicable.
Subsection (m) sets forth the criteria to be used in the
selection of tenants for the Presidio. In leasing properties,
the Trust is directed to give priority to tenants that enhance
the financial viability of the Presidio, tenants that maximize
the amount of revenues to the Federal Government, and tenants
that facilitate the cost-effective preservation of historic
buildings.
Subsection (n) outlines a reversionary clause for lands and
facilities under the administrative jurisdiction of the Trust.
In the event that the Presidio Trust fails to meet the goals
and objectives of the plan required by section (5)(b) after 15
years, lands and facilities under the administrative
jurisdiction of the Trust would revert to the General Services
Administration for disposal in accordance with procedures
outlined in the Defense Authorization Act of 1990. Should such
disposal occur, those areas concerned would be deleted from the
boundary of Golden Gate National Recreation Area.
Section 5 provides limitations on funding for the Presidio.
Until the plan is submitted, no more than $25 million per year
shall be available for carrying out the provisions of this Act
and shall remain available until expended. Within one year of
its first meeting of the Board, the Trust is required to submit
a plan to Congress which includes a schedule of how the Trust
intends to achieve self sufficiency over 15 years, with
annually decreasing appropriations. After the first year, the
Trust is authorized a level of appropriated funds as outlined
in that plan, of which, not more than $3 million shall be
available annually through the Trust for the U.S. Park Police
to provide law enforcement activities and police services
within the Presidio. The Administrator of the General Services
Administration shall assist the Trust in the formulation and
submission of the annual budget request for operation of those
portions of the Presidio under the Trust's administrative
jurisdiction.
Section 6 directs the General Accounting Office (GAO) to
conduct a study three years after the Trust's first meeting of
the Board, and to report the results to the Committee of Energy
and Natural Resources of the United States Senate and the
Committee on Resources of the United States House of
Representatives. The study shall include details of how the
Trust is meeting its obligations. Seven years after the Trust's
first meeting of the Board, GAO is directed to conduct a
comprehensive study of the Trust's activities and submit the
results to the Committees noted above. Additionally, GAO, in
consultation with the Trust, shall develop an interim plan and
schedule to reduce and replace Federal appropriations, to the
extent practicable, for interpretive services conducted by the
NPS, and law enforcement activities, fire, and public safety
programs conducted by the Trust.
cost and budgetary considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 22, 1995.
Hon. Frank M. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed H.R. 1296, a bill to provide for the administration of
certain Presidio properties at minimal cost to the federal
taxpayer, as ordered reported by the Senate Committee on Energy
and Natural Resources on December 21, 1995.
We estimate that implementing this bill would cost the
federal government $50 million over the next five years, plus
any subsidy costs associated with new direct loans and/or
guarantees, depending on the level and type of credit subsidies
provided and assuming appropriation of the necessary sums. Most
of such spending would occur after 1998. Enacting H.R. 1296
would affect direct spending; therefore, pay-as-you-go
procedures would apply to the bill.
H.R. 1296 would have no direct impact on the budgets of
state or local governments.
Bill purpose: H.R. 1296 would establish a wholly owned
government corporation to be known as the Presidio Trust. Once
operational, the trust would accept administrative jurisdiction
of about 80 percent of the property located at the Presidio in
San Francisco. At that time, the trust would assume
responsibility for managing, leasing, maintaining, and
improving this property. The remaining areas of the Presidio,
along with any lands transferred back by the trust, would
continue to be administered by the National Park Service (NPS)
as part of the Golden Gate National Recreation Area (GGNRA).
The bill would require the NPS to transfer all leases,
contracts, and other agreements related to lands under the
trust's jurisdiction, along with: (1) future proceeds from the
agreements, (2) unobligated balances of previous collections,
and (3) unobligated funds appropriated for Presidio operations.
In addition, the bill would authorize the trust to enter into
new leases and other agreements and to accept donations. The
trust would be authorized to retain and use, without further
appropriation, both donated funds and proceeds from commercial
activities for related operation, maintenance, and capital
expenditures.
For the purpose of financing capital improvements to the
transferred properties, H.R. 1296 would authorize the trust to:
(1) borrow funds from the federal Treasury, provided that
outstanding obligations cannot exceed $50 million at any time;
(2) make loans to occupants of trust properties, subject to
appropriation; and (3) guarantee loans to occupants made by
private lenders, subject to approval of the Secretary of the
Treasury and other conditions. All financing provided from
these sources would be subject to appropriation of the
necessary funds.
Finally, H.R. 1296 would provide for future limitations on
federal funding for operation of the Presidio. Specifically,
the bill would authorize the appropriation of no more than $25
million annually for the Presidio until the trust submits a
budget plan to eliminate the need for federal appropriations
within 15 years. For each year covered by the plan, the bill
would authorize the appropriation of the budgeted amount.
Estimated cost to the Federal Government: Capital Spending.
The total cost of developing commercial space within the
Presidio is very uncertain. Depending on the condition of each
property and the needs of future tenants, such costs would
include rehabilitation of historic buildings, construction of
new facilities, and demolition of unusable structures. Based on
the limited information available at this time, CBO estimates
that such expenditures would require funding of between $125
million and $175 million over the next five years, and
additional amounts of between $225 million and $325 million
over the following ten years. Assuming appropriation of the
authorized amounts, we estimate that the trust would borrow $50
million over the 1997-1999 period for high-priority projects.
Depending on the availability of nonfederal financing, and
assuming appropriation of the necessary amounts for the subsidy
costs of providing credit assistance, some or all of the
remaining capital needs could be provided through federal loans
or guarantees. Because the bill does not establish any
limitations on loan levels or specify other credit terms, CBO
cannot estimate the subsidy cost to the federal government of
projects that may be funded through such assistance.
Operating Income and Expenses. For the next few years,
commercial activities authorized by H.R. 1296 would be limited
to the rental of properties that can be occupied without
significant capital improvements. As a result, the trust would
probably produce little or no net income over this period. Once
projects involving more marketable buildings have been funded
and completed, net income would gradually increase.
Authorizations. H.R. 1296 would authorize the appropriation
of up to $25 million annually for the Presidio, including the
trust established by this bill. Because such appropriations
(except for the trust) are already authorized under current
law, and because recent appropriations for managing the
Presidio are already at the $25 million level, this provision
would not result in additional spending of appropriated funds.
Trust expenses (including start-up costs of about $2 million
for each of fiscal years 1996-1998 and ongoing administrative
overhead of about $5 million annually beginning in 1997 or
1998) are assumed to be included in the $25 million operating
budget for the Presidio. The bill also provides that
unobligated balances of previous years' appropriations for the
Presidio would be transferred to the trust once it becomes
operational. Presumably any such transfers would be reduced by
any amounts that the NPS would need to operate its portion of
the site.
Basis of estimate: This estimate is based on information
provided by the NPS, its consultants, and other affected
groups, such as prospective tenants. For purposes of this
estimate, CBO has assumed that H.R. 1296 would be enacted in
fiscal year 1996. We assume that members of the Presidio Trust
would be appointed during the year and that the NPS would
transfer all lease properties to the trust sometime in 1997.
Pay-as-you-go effects: H.R. 1296 would affect direct
spending by authorizing the trust to collect and spend rental
and other income from commercial activities as well as donated
funds. CBO estimates that offsetting receipts generated from
these sources would be minimal over the 1996-1998 period and
would in any case be offset by additional direct spending.
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Change in outlays...................... 0 0 0
Change in receipts..................... (\1\) (\1\) (\1\)
------------------------------------------------------------------------
\1\ Not applicable.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Deborah
Reis and John R. Righter.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
regulatory impact evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 1296. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 1296, as ordered reported.
executive communications
The pertinent legislative reports and communications
received by the Committee from the Office of Management and
Budget and from the National Park Service setting forth
Executive agency recommendation relating to H.R. 1296 are set
forth below:
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, November 3, 1995.
Hon. Ben Nighthorse Campbell,
Chairman, Subcommittee on Parks, Historic Preservation and Recreation,
Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Senator Campbell: As you are aware, on June 29, 1995,
the Senate subcommittee on Parks, Historic Preservation and
Recreation held a hearing on S. 594, a bill to provide for the
establishment of a Presidio Trust, which would administer
certain Presidio properties at minimal cost to the Federal
taxpayer. This bill is identical to H.R. 1296, which was
introduced in the House by Congresswoman Nancy Pelosi. The
House Resources Committee subsequently amended H.R. 1296 and
the substitute was passed by the House on September 19, 1995.
We have reviewed both bills and we believe each includes
provisions that would assure the establishment of an effective
Trust. We offer the following principles that we believe the
final legislation should incorporate.
1. The Presidio should remain a part of the Golden Gate
National Recreation Area.
2. The Presidio Trust should be established as a Federal
entity, subject to the Government Corporation Control Act,
within the Department of the Interior (DOI) with authority to
lease buildings and facilities at the Presidio of San
Francisco. The Trust should be responsible for real estate,
property management and related activities.
3. Within 180 days of its authorization, the Trust should
prepare and present to DOI and Congress a financial plan,
including timeframes for implementation, which identify
realistic financial goals and objectives for the greatest
degree of self-sufficiency based upon sound financial analysis.
4. The Trust should be subject to the provisions of the
National Park Service's (NPS) General Management Plan for the
Presidio. The rules and regulations which control activity on
NPS property and which are contained in Title 36 of the Code of
Federal Regulations (C.F.R.) should be enforceable within those
areas transferred to the Trust.
5. The Trust and the NPS should jointly prepare a
transition agreement to facilitate the orderly transfer of
functions from the NPS to the Trust. The agreement should
describe properties, jurisdiction limits, timelines, contracts,
personnel, and operational responsibilities. Upon completion of
the agreement, the transfer should occur within 60 days after
notification by the Trust that it is ready to accept
administration from the NPS. The NPS should transfer funds
required to support Trust operations. A map should accompany
the completed transition agreement, showing any areas of
facilities to be administered by the Trust and by NPS.
6. The NPS should retain responsibility and support
facilities for all traditional park operations; i.e., public
safety, information and education, grounds maintenance, roads
and trails, special events, museum curatorial services and
resource management. The NPS should be funded, either by
appropriation or by agreement with the Trust, to carry out its
responsibilities.
7. The NPS should continue its leasing activities until the
Trust is established and in position to assume responsibility.
All leases must be at fair market value and be supported by an
approved appraisal.
8. The NPS should complete all infrastructure and building
improvement projects that were funded prior to FY 1996.
9. In case of default, those properties under
administration of the Trust should revert to the Department of
the Interior.
10. The terms of the Presidio Trust's guarantee and direct
loan authority should be clarified.
We are encouraged by the strong bipartisan support for the
concept of a Presidio Trust and the opportunity to demonstrate
a way to greatly reduce Federal costs of this new park while
preserving its rich natural and cultural history. We are
prepared to work with you to develop language that will carry
out the principles enumerated above. We plan to present to the
Committee soon a detailed report on H.R. 1296, that will
recommend specific changes to the bill as passed by the House.
Sincerely,
George T. Frampton, Jr.,
Assistant Secretary for Fish and Wildlife and Parks.
------
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, December 19, 1995.
Hon. Frank Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: On November 3 the Department of the
Interior sent the Subcommittee on Parks, Historic Preservation
and Recreation a letter outlining the principles we believe
should guide the final Presidio legislation reported from your
committee. We are enclosing the detailed legislative report
promised in our previous letter, with our suggested changes to
H.R. 1296 as passed by the House.
We would be pleased to work with you as this legislation
moves ahead.
The Office of Management and Budget has advised that it has
no objection to the preservation of this report from the
standpoint of the Administration's program.
Sincerely,
George T. Frampton, Jr.,
Assistant Secretary for Fish and Wildlife and Parks.
Enclosure.
Legislative Report--Department of the Interior Substitute for Presidio
Legislation
This legislative report contains the Department of the
Interior's recommended amendments of H.R. 1296. To formulate
these recommendations, the National Park Service (NPS) reviewed
both S. 594, and H.R. 1296 as passed by the House of
Representatives on September 19, 1995, and relied upon its
experience in accepting transfer of jurisdiction from the Army,
as well as in managing the Presidio for the last year. There
are provisions of both the House and Senate bills that we
support and which should be incorporated into the final version
of the legislation.
These amendments amplify the principles presented to the
Committee in the letter dated November 3, 1995 and fall into
one of three categories: (1) recommendations that state the
roles and responsibilities of the Trust and NPS now and into
the future; (2) recommendations that establish an effective
transition process for transfer of property management
authority from NPS to the Trust; and (3) recommendations that
ensure that the Trust has the necessary legal authorities to
perform its mission.
The modifications are organized in a section-by-section
format. If we have proposed no amendments to a subsection of
H.R. 1296, we have not commented on that subsection in this
report. It is important to recognize that acceptance or
rejection of a recommended modification may have impacts
throughout the legislation. We have attempted to identify
instances where this may be the case.
Section 1. Findings
To clarify the responsibilities of the Trust and NPS, we
support the findings of S. 594 which will clarify the Presidio
should remain a part of the GGNRA.
Strike ``is located within the boundary'' in (4) and insert
``is a part''; insert ``as part of the Golden Gate National
Recreation Area,'' at the beginning of (5).
We also recommend the deletion of finding (6), which
references an ``innovative public/private partnership.'' This
finding is a remnant from a vastly different bill considered
last year.
Sec. 2. Interim authority
Subsection 2(a). To protect the resources of the Presidio
during the transition period, the NPS must be fully authorized
and funded to carry out its responsibilities, including but not
limited to the leasing of buildings and facilities. We support
the concept set forth in Section 2 of S. 594 which would allow
the leasing of facilities at the Presidio to continue, with the
proceeds retained to fund the cost of operating the Presidio.
We recommend substituting the language from S. 594 into H.R.
1296, with two amendments (1) to clarify that the Secretary's
interim authority to retain proceeds extends not only to
leases, but also to use and occupancy agreements, and (2) to
ensure that any proceeds may be retained by the Secretary for
the Presidio without further appropriation.
Strike the subsection and insert the following: ``(a)
Interim Authority.--The Secretary of the Interior (hereinafter
in this Act referred to as the ``Secretary'') is authorized to
negotiate and enter into leases, at fair market rental and
without regard to section 321 of chapter 314 of the Act of June
30, 1932 (40 U.S.C. 303b), for all or part of the Presidio of
San Francisco that is under the administrative jurisdiction of
the Secretary until such time as the property concerned is
transferred to the administrative jurisdiction of the Presidio
Trust as set forth in subsection 3(b)(1) of this Act. The
proceeds from any such lease or other agreements at the
Presidio shall be retained by the Secretary and used, without
further appropriation, for the preservation, restoration,
operation and maintenance, improvement, repair and related
expenses incurred with respect to Presidio properties. For
purposes of any such lease, the Secretary may adjust the rental
by taking into account any amounts to be expended by the lessee
for preservation, maintenance, restoration, improvement, repair
and related expenses with respect to properties within the
Presidio.''
Subsection 2(c). We support the concept of Subsection 2(c)
of H.R. 1296 which outlines the responsibilities of NPS after
the transition but we recommend some additional clarification
regarding preexisting agreements with the Defense Department
and ongoing building improvement projects.
At the end of the subsection add the following: ``The
Secretary shall retain administration over those properties
subject to preexisting agreements with the Department of
Defense for housing, the PX and the commissary unless all
parties agree otherwise. Upon expiration of these use and
occupancy agreements, the properties shall be transferred to
the administration of the Trust. Any infrastructure and
building improvement projects that were funded prior to
enactment shall be completed by the National Park Service.''
Subsection 2(e). To ensure that both the Trust and NPS have
appropriate statutory authority to act, the legislation should
explicitly amend the Golden Gate National Recreation Area
legislation to allow the Secretary to allow leasing of
buildings or other facilities for any purpose consistent with
the preservation of the historic and natural character of the
area. We recommend the addition of a new subsection.
Insert a new subsection 2(e) as follows: ``(e) Conforming
Amendment.--Section 1 of the Act entitled `An Act to establish
the Golden Gate National Recreation Area in the State of
California, and for other purposes', approved October 27, 1972,
is amended by inserting the following after the second
sentence: `In addition, to the extent authorized herein, the
Secretary may engage in the leasing of buildings or other
facilities for any purpose consistent with the preservation of
the historic and natural character of the area.' ''
Sec. 3. The Presidio Trust
Subsection 3(a). We support the establishment of the
Presidio Trust as a wholly owned government corporation and
recommend that the language of Section 3(a) of H.R. 1296 be
adopted with one amendment, which will clarify that the
corporation is within the Department of the Interior. If the
Trust is established within the Department of the Interior,
increased budgetary, operational and organizational
efficiencies will be achieved in addition to providing for a
more orderly transition from the National Park Service.
Insert the words ``within the Department of the Interior''
after the word ``corporation''.
Subsection 3(b)(1). To ensure an effective transfer to
property management from NPS to the Trust, based on our
experience with the Army, we recommend the following transition
process.
Strike subsection 3(b)(1) and insert the following: ``(b)
Transfer.--(1)(i) Within 60 days after receipt of a request
from the Trust for any properties to be used for administrative
purposes or for any property which has immediate lease
potential within the area depicted as area B on the map
entitled `Presidio Trust Number 1,' dated June 1995, the
Secretary shall transfer such property to the administrative
jurisdiction of the Trust. Within one year after the first
meeting of the Board of Directors of the Trust at which a
quorum is present, the Trust shall enter into an agreement with
the Secretary for the transfer of administrative jurisdiction
for any remaining properties in area B depicted on the map.
This agreement shall detail the specific responsibilities of
the Secretary for any areas on the map within area B. Such map
shall be on file and available for public inspection in the
offices of the Trust and in the offices of the National Park
Service, Department of the Interior. The Trust and the
Secretary may jointly make technical and clerical revisions in
the boundary depicted on the map and may amend the agreement as
appropriate. Should the Trust and the Secretary be unable to
complete an agreement within the one-year period, all remaining
properties depicted on the map within area B shall be
transferred to the administrative jurisdiction of the Trust.
Such areas shall remain part of the Golden Gate National
Recreation Area.
``(ii) With the consent of the Secretary, the Trust may
transfer at any time to the administrative jurisdiction of the
Secretary and properties within the Presidio which are surplus
to the needs of the Trust and which serve essential purposes of
the Golden Gate National Recreation Area, and may transfer any
authorization or functions the Trust exercises at the Presidio.
The Trust is encouraged to transfer to the administrative
jurisdiction of the Secretary open space areas which have a
high public use potential.
``(iii) The Secretary shall retain those portions of the
building identified as number 102 as the Secretary deems
essential for use as a visitor center. The building shall be
named the `William Penn Mott Visitor Center'.''
Subsection 3(b)(2). To ensure the effective transfer of
property management to the Trust including transfer for revenue
associated with the properties transferred, we recommend a
revised version of the language of S. 594 be substituted in
this subsection of H.R. 1296.
Strike the subsection and insert the following: ``(2) The
Secretary shall transfer, with the transfer of administrative
jurisdiction over any property, funds for the administrative
support of the Trust; all leases, concessions, licenses,
permits, and other agreements affecting such property,
including any revenues associated with them; and any
unobligated funds for such transferred property.''
Subsection 3(c)(1)(B). To ensure that the Trust has the
proper legal authority to act, and to ensure that the Trust
will consider resource conservation in making its decisions, we
support the board composition set forth in Subsection 3(c) of
H.R. 1296 only if the residency requirement is made advisory
rather than mandatory and the President is not restricted with
unreasonable deadlines for appointment of the board.
Strike the last two sentences of the subsection and insert
the following: ``The President shall give consideration to
appointing at least three individuals with extensive knowledge
about the region in which the Presidio is located. The
President shall make the appointments as soon as possible after
enactment of this Act.''
Subsection 3(c)(5). To ensure that the Trust has the proper
legal authority to act and that there is an enforcement
mechanism to guide conflict of interest and financial
disclosure of the Trust Board of Directors, we propose one
amendment.
Strike the period at the end of the subsection and insert
the following: ``, and the provisions of chapter 11 of title
18, United States Code (relating to conflicts of interest), and
the executive branch standards of conduct.''
Subsection 3(d)(3). To ensure the executive director is
compensated in accordance with government-wide practice, and
that a requirement is included to appoint a Chief Financial
Officer, we propose one amendment.
After the words ``pay rates'' add ``except that the salary
may not exceed that of Level IV of the Executive Schedule. The
Trust shall also designate a Chief Financial Officer in
accordance with the Chief Financial Officers Act of 1990, P.L.
101-576.''
Subsection 3(d)(4). To ensure that the Trust has the
appropriate legal authority to act, we recommend that the
language regarding direct loan and loan guarantees be amended
to reflect compliance with the Federal Credit Reform Act of
1990.
In the first sentence after the words ``shall have'' add
the following: ``authority to make direct loans and loan
guarantees. Direct loans and loan guarantees may be entered
into under the provisions of this section only to the extent
that appropriations of budget authority that cover their costs
(as defined in section 502(5) of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a(5)) are made in advance, or authority is
otherwise provided in appropriations acts. No loan guaranteed
to any one borrower shall exceed 75 percent of the outstanding
principal on the loan.''
Section 3(d)(4)(A). To ensure that the Trust has the
appropriate authority to guarantee loans, we propose one
amendment.
After ``(ii) adequate'' strike ``guarantee authority'' and
insert ``subsidy budget authority''.
Subsection 3(d)(4)(C), To ensure that the Trust will have
appropriate financial resources to manage the Presidio, we
support the provision of this subsection in S. 594 providing
for borrowing authority, subject to appropriation, of
$150,000,000.
Strike the number ``$50,000,000'' and insert
``$150,000,000''.
Subsection 3(d)(4)(D). To ensure that the Trust has the
appropriate legal authority to enter into joint powers
agreements, this provision must be amended to authorize
specifically the Trust to enter into such arrangements.
Strike the language of the subsection and insert the
following: ``(D) The Trust is an entity of the federal
government authorized to jointly exercise any power common to
it and any contracting local or state agency.''
Subsection 3(d)(5). To clarify the responsibility of the
Trust with respect to conflict of interest rules and
regulations which apply to the solicitation and acceptance of
donations, we recommend an amendment to the subsection:
Insert the following language after the first section: ``No
gift may be accepted that attaches conditions inconsistent with
applicable laws and regulations. The Trust shall establish
written rules setting forth criteria to be used in determining
whether the acceptance of donations of funds, property,
supplies, or services authorized in this paragraph would
reflect unfavorably upon the ability of the Trust or any
employee to carry out its responsibilities or official duties
in a fair and objective manner, or would compromise the
integrity or the appearance of the integrity of its program or
any official involved in those programs.''
Subsection 3(d)(6). To ensure that the Trust meets the
financial requirements of the Antideficiency Act and follows
the standard practice for Government corporations to bank
through the Treasury, we strongly recommend striking this
subsection and inserting a substitute.
Strike the subsection and insert the following: ``There is
established in the Treasury a Presidio Trust Fund, into which
shall be deposited all receipts of the Trust. Amounts in the
Fund shall be available to the Trust, without further
appropriation, for the preservation, restoration, operation and
maintenance, improvement, repair and related expenses incurred
with respect to Presidio properties under the Trust's
jurisdiction. Such amounts may remain available without fiscal
year limitation until expended. Upon the request of the Trust,
the Secretary of the Treasury shall invest such portion of the
Fund as is not in the judgement of the Trust required to meet
current withdrawals. Such investments shall be in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Trust, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities. The
income on such investments shall be credited to and form a part
of the Fund.''
Subsection 3(d)(7). To ensure that the Trust has the legal
authority to defend itself, we recommend that the Attorney
General represent the government in litigation and that the
forum for litigation against the Trust should be the District
Court for the Northern District of California. This will limit
the venue of lawsuits against the Trust so that these suits may
not be brought in the Federal Claims Court or anywhere else in
the country. The Trust would still have the authority to select
the venue for its litigation.
Strike the subsection and insert the following: ``(7) The
Trust may sue and be sued in its own name to the same extent as
the Federal Government. Litigation arising out of the
activities of the Trust shall be conducted by the Attorney
General; except that the Trust may retain private attorneys to
provide advice and counsel.''
Subsection 3(d)(8). To ensure that the Trust has the
appropriate legal authority to issue and enforce rules,
including National Park Service Rules and regulations, we
propose two amendments.
Strike the period at the end of the sentence and insert the
following: ``including but not limited to rulemaking
authority.'' and designate this subsection as Subsection
3(d)(8)(A).
Insert a new subsection 3(d)(8)(B) as follows: ``(B) The
Trust is authorized, in consultation with the Secretary of the
Interior, to adopt and to enforce those rules and regulations
that are applicable to the Golden Gate National Recreation Area
and that may be necessary and appropriate to carry out its
duties and responsibilities under this Act. The Trust shall
give notice of the adoption of such rules and regulations by
publication in the Federal Register.''
Subsection 3(e). Understanding that the federal government
self-insures its properties, we propose deleting the authority
for the Trust to procure insurance.
Strike the subsection and renumber the following
subsections accordingly.
Subsection 3(h). To ensure that the Presidio Trust is
properly established as a wholly owned government corporation,
we propose an amendment.
Amend the title of the subsection to read ``Status of the
Trust'' and add at the end of the subsection the following:
``(3) Section 9101(3) of title 31 United States Code is amended
to add the following: `(p) Presidio Trust'.''
Subsection 3(k). In the event of a default, the property
should revert to the administration of the Secretary of
Interior. The Department of Defense is not in a position to
accept management responsibility of this property. We support
the reversion language as provided in S. 594.
Strike the subsection and insert the following: ``(k)
Reversion.--In the event of failure or default, all interests,
assets, and liabilities of the Trust shall revert to the
Secretary to be administered by the National Park Service.''
Subsection 3(l)(1). We recommend the language of H.R. 1296
addressing the authorization of appropriations be amended to
ensure there is no confusion about either the source of funds
for the Trust, which we believe should come from the funds
appropriated for the Presidio, or the availability of
appropriations after the plan in paragraph (2) is submitted.
Strike the subsection and insert the following: ``(1)
Authorization of appropriations. There are authorized to be
appropriated not more than $25,000,000 to carry out this Act in
each fiscal year after the enactment of this Act. Such sums
shall remain available until expended.''
Subsection 3(l)(2). We recommend that the language of
Subsection 3(l)(2) of H.R. 1296 regarding decreasing annual
appropriations and the time for self-sufficiency be amended to
be consistent with the agreement between the Trust and the
Secretary as recommended in subsection 3(b)(1). It is important
that the Trust be given the flexibility to determine the most
appropriate process and timeframe for processing toward self-
sufficiency.
Strike the language of the subsection and insert: ``(2)
Within 180 days after reaching an agreement with the Secretary,
or in the case of no agreement, one year from the first meeting
of the Board of Directors as set forth in subsection 3(b)(1),
the Trust shall submit to Congress a business plan, including
timeframes for implementation, which identifies realistic
financial goals and objectives for the greatest degree of self-
sufficiency based upon sound financial analysis.''
MINORITY VIEWS OF SENATOR DALE BUMPERS
I voted to report H.R. 1296 because I wanted to move the
bill along and support the efforts of the Senators Boxer and
Feinstein and Congresswoman Pelosi who wanted this bill
reported before the end of the year. There are several aspects
of this bill that are troublesome and should be fixed. For
example, as reported from the Committee, the bill waives
federal procurement laws and regulations for the newly formed
Presidio Trust. This is a new provision which never appeared in
any Presidio legislation prior to the circulation of the
Chairman's Mark preceding the Committee's consideration of H.R.
1296. The Trust is to be a wholly owned government corporation
and, as such, should be held to the same standards of
procurement as other government agencies. The Committee heard
very little testimony on the implications of such a provision
and should not have included it without completely
understanding the impact of this departure from existing law
and procedure.
In addition, the Committee reported bill deletes a very
important provision contained in the House passed bill which
provided discretion to the Trust, with the consent of the
Secretary, to transfer back to the Secretary the administrative
jurisdiction over properties transferred to the Trust which are
surplus to its needs and which serve essential purposes of the
Golden Gate National Recreation Area. The language also
encourage the Trust to transfer administrative jurisdiction
over open space areas which have high public use potential and
which are contiguous to other lands administered by the
Secretary. This authority would have given the Park Service an
opportunity to remain involved in recreational, open space and
other activities at the Presidio on lands not needed by the
Trust. This is a very important provision that should be
included in any Presidio legislation.
I am hopeful that the bill can be amended to address these
concerns before the bill is presented to the President for his
signature.
Dale Bumpers.
changes in existing law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the Act H.R. 1296, as
ordered reported.
