Funding Recreation in Washington State

Transcription

1 Funding Recreation in Washington State Prepared by: AgForestry Class of 36 Public Policy Project - Group 4 Page i

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3 Funding Recreation in Washington State.. March 1, Prepared by: AgForestry Class of 36 Public Policy Project - Group 4

4 Acknowledgements Nancy Barker, Washington State Department of Natural Resources Kyle Blum, Washington State Department of Natural Resources Kaleen Cottingham, Washington State Recreation and Conservation Office Matt Kloes, Northwest Farm Credit Services Doug McClelland, Washington State Department of Natural Resources Brock Milliern, Washington State Department of Natural Resources Jon Noski, Washington State Department of Natural Resources Nathan Putnam, Hancock Forest Management Jeremy Sapp, Weyerhaeuser Columbia Timberlands Lislie Sayers, Washington State Department of Natural Resources Lori Stonecipher, Stonecipher Ranches, LLC To obtain a copy of this report, please contact any member of the AgForestry Class of 36, Public Policy Group 4, listed in Appendix B.

5 Report Organization The main body of the report outlines the project including pertinent summarized and detailed information related to the project. Appendix A includes an agreement intended to be used in the implementation phase of the project. Appendix B lists contact information for AgForestry Class 36, Public Policy Group 4. Appendix C includes a list of mentors and key contacts that provided guidance to the Group through this project and describes the primary contributions of each. Appendix D is background information for readers wanting additional context. Appendix E is a list of references used during research, analysis, and compilation of this document. Table of Contents Executive Summary... ii Foreword... 1 Introduction... 2 Objectives and Strategies... 3 Objectives Initial Strategy Revised Strategy Outcome: Adopt-a-Rec Program... 5 Program Description Program Model A Unique Proposal Next Steps and Recommendations Conclusions Appendix A: Adopt-a-Rec Program Draft Agreement...A1 Appendix B: Contact Information AgForestry Class of 36, Public Policy Group 4... B1 Appendix C: Mentors and Key Contacts... C1 Appendix D: Background Information... D1 State Fuel Tax Public-Private Partnerships Appendix E: References... E1 Informational Websites Revised Code of Washington (RCW) Washington Administrative Code (WAC) Works Cited AgForestry Class of 36 Public Policy Project Group 4 Page i

6 Executive Summary The funding of State-owned and managed recreation areas has long been insufficient to cover the maintenance and operations of existing infrastructure, while still permitting growth in the programs. Currently, the three landholding agencies Washington State Parks (Parks), Department of Natural Resources (DNR), and Department of Fish and Wildlife (WDFW) estimate that their combined biennial funding levels fall $70 to $80 million below what is necessary to operate and maintain existing recreation sites. 1 As Washington State s population grows and recreation demands increase, the need for sustainable funding solutions is critical. Washington s AgForesty Leadership Program, Public Policy Group 4 has sought to identify solutions to adequately fund the maintenance and operations of State-owned recreation areas. Initially the team identified a potential funding source in Washington s gas tax revenues. By statute, a portion of the fuel tax collected is to be allocated to special State accounts and used for recreation and other nonhighway purposes. Notwithstanding this principle of law, successive legislation has, in fact, placed an artificial cap on the portion of the tax dedicated to recreational use the allocated portion is calculated at a lower rate than the full fuel tax rate. The Group s initial strategy was to develop legislation to lift this gas tax lid, thus providing increased revenues to the State s recreation programs. With time, it became apparent that this would be a very difficult prospect, with little chance of success. Accordingly, the Group moved to identify alternative funding sources for recreation, considering and evaluating several different options. Washington State, through the three State agencies has experience in using volunteer groups to accomplish maintenance of State recreation facilities, but not on a large scale or in a programmatic way. Public Policy Group 4 believes there is an opportunity for the State to partner with private organizations in a more structured way to not only accomplish more effective volunteer work, but also to secure new funding sources. The key lies in developing partnerships beneficial to both parties. For private organizations, particularly for-profit businesses, this often means name recognition. A model for collaborating with these organizations is proposed, herein called the Adopt-a-Rec Program, which is patterned after Washington State Department of Transportation s (WADOT) successful Adopt-a-Highway Program. A key element to the proposal, as with the Adopt-a-Highway Program, includes installation of a sign to identify the contributing group. The Adopt-A-Rec Program will thus provide companies and other organizations the opportunity to tie their name and/or brand to the places their customers play and work. One key to success will be the implementation of a successful pilot project. To test and refine the concept, while also demonstrating its potential, the Group proposes that the Adopt-a-Rec Program be piloted through the DNR, initially targeting the Snoqualmie Corridor. This high-use area provides several advantages for a program startup. The Corridor, adjacent to the State s largest metropolitan area, has the greatest potential for attracting volunteers or private sponsors of needed maintenance work. Additionally, there are a large number of recreation sites in this area, many of which have a low priority for being awarded State gas tax dollars simply because they are directly adjacent to a public highway. Public Policy Group 4 worked with key players at DNR to create buy-in for the Adopt-a-Rec concept. As a project deliverable, the Group drafted a volunteer and sponsorship agreement (see Appendix A) that DNR approved for review by the Attorney General s office. Finally, recommendations were drafted and provided to DNR that detail considerations for refining the business model associated with Adopt-a-Rec. With this, the Group is turning over implementation of the program to DNR. Ultimately, the Group envisions that the program be deployed broadly and jointly across the three agencies Parks, DNR, and WDFW. The Group is confident that it has provided a meaningful alternative for sustainably funding recreation in Washington State. AgForestry Class of 36 Public Policy Project Group 4 Page ii

7 Foreword Founded in 1978, the Washington Agriculture and Forestry Education Foundation (AgForestry) is a leadership development program for adults working within and connected to Washington State s agriculture, forestry, and fishing industries. Strong leadership is vital to maintaining healthy farms, forests, near-shore environments, and rural communities. The AgForestry Leadership Program helps our leaders to develop critical skills for and a better understanding of natural resources and rural communities of Washington State. Today's pressing issues demand strong, able, informed leaders who not only excel in their chosen professions, but also in the areas of communications, political savvy and issues management. The AgForestry Leadership Program helps leaders face challenges with confidence. The AgForestry Leadership Program syllabus includes focus on public policy. Public policy is both the fundamental policy on which laws rest and the principled guide to executive action. Strong public policy should solve problems efficiently and effectively, serve justice, support governmental institutions and policies, and encourage active citizenship. Public policy projects were assigned to members of Class36 to give participants the opportunity to work with other people to analyze a significant public problem and develop a proposal for its resolution. Project objectives include: 1) providing participants an opportunity to identify a problem of importance to people in their industry, their community, or society in general; 2) providing participants an opportunity to get outside of traditional modes of thinking, and to be visionary about ways of resolving public problems; 3) providing participants an opportunity to develop ideas and proposals that have potential for real pay-off helping to resolve important public problems; 4) providing participants an opportunity to apply specific subject matter from seminars to the analysis of public problems and the development of proposals for their resolution; 5) enabling participants to learn a process that can be applied in many situations and towards many problems in the future; 6) fostering feedback among the participants, and; 7) providing participants the opportunity to understand the public policy process first Photo provided by: hand through participating in a legislative or rule-making process. The following report was prepared by the members of AgForestry Class 36, Public Policy Group 4, as a primary component of their public policy project. AgForestry Class of 36 Public Policy Project Group 4 Page 1

8 Introduction Washington State residents have long valued the recreational opportunities that their state and its resources afford them. Recreational values have increased in importance as urban populations have blossomed, sedentary occupations have multiplied, and the need to get out and experience the outdoors has grown. Outdoor recreation is a critical component of the State s economy. According to a study conducted by Earth Economics 2, Washingtonians spend an average of 56 days per year recreating outdoors, translating to $21.6 billion dollars in annual expenditures. Of that, 42% is attributed to gear and equipment with the remainder spent on food (19%), gas (13%), and lodging (7%). State lands account for $1.3 billion of trip-related expenditures related to outdoor recreation, not including equipment. Nearly 200,000 jobs are supported in Washington State as a result of outdoor recreation spending. An estimated 122,600 jobs are from expenditures associated with outdoor recreation on public lands. Nearly 18,400 of those jobs are associated with employment at retail and sporting goods stores. Opportunities for outdoor recreation abound in this State, and with those remarkable resources come the need to develop and maintain infrastructure to handle the growing user group populations (e.g. trails and campgrounds, parking facilities, boat launches, etc.). Acquisition and development of public properties and facilities that are specific to recreation started in 1915 with Washington State Parks first acquisition, and it continues to expand even today. Governor Inslee s recent Blue Ribbon Task Force on Parks and Outdoor Recreation (Executive Order 14-01) fully supports this development and identified a number of priority action areas, not least of which was to Open more outdoor recreation opportunities [and] sustain [Washington State s] Photo provided by: Nancy Barker, DNR outdoor recreation assets. 3 Objectives of this nature obviously require a source of funding. However, funding in Washington State since the economic downturn of has been a point of severe contention among legislators and taxpayers. Recreational development on State-owned public lands in Washington generally comes under the auspices of three State agencies: Washington State Parks (Parks), the Department of Natural Resources (DNR), and the Department of Fish and Wildlife (WDFW). Historically, the recreation programs of these State agencies have been largely funded through Washington s General Fund. 4 During the biennium, 70% of the revenues for Parks was provided from this source. Following the budget crisis of those years however, the portion of Parks budget originating from the General Fund fell from $94.5 million to $8.7 million in the biennium, a reduction of over 90%. 5 Similar cuts were experienced by the DNR and WDFW. The Washington State Legislature and Governor created the Discover Pass in 2011 to offset steep reductions in general tax support for parks along with other recreation lands and facilities operated by Parks, WDFW and DNR. However, revenues from the Discover Pass Program have been unable to fill budgetary gaps, and maintenance and operations of recreation facilities across the State remain at seriously underfunded levels. State agencies have inadequate revenue to: 1) maintain existing recreational trails and associated public facilities; 2) develop new trails and facilities, and; 3) conduct effective educational and enforcement programs. These realities have led to environmental damage and decreased public safety. Additionally, the lack of new trails and facilities results in an increasingly crowded recreational infrastructure. AgForestry Class of 36 Public Policy Project Group 4 Page 2

9 Photo provided by: A distinction should be made between the acquisition and development of new recreational facilities, and the operation and maintenance of existing ones. While funding opportunities to acquire new lands for recreational development are often available through State and Federal grant writing requests, the ability to obtain funds for existing facilities seems to be a much more difficult proposition. Currently, the three State agencies estimate that their combined biennial funding levels fall $70 to $80 million below what is necessary to operate and maintain existing recreation sites. 6 In short, Washington State s recreation facilities are falling into disrepair. Objectives and Strategies Public Policy Group 4 chose to address the dramatic underfunding of State-owned recreation land as its topic given the problem s direct, professional tie to one of its team members, and the importance of outdoor recreation to Washington State s image, culture and economy. Objectives Project objectives include: Identification of potential funding and/or other resources that would more fully fund the operations and maintenance needs of Washington State recreational facilities, thereby increasing the public s access to recreational opportunities. Implementation of a funding mechanism (or other) resource to fund State-owned recreational sites through legislative action or administrative procedure. Initial Strategy Early on, the team identified a potential funding source in Washington s gas tax revenues. A significant portion of current recreational funding comes from fuel tax proceeds that are attributed to off-road vehicle and non-motorized recreational uses. These monies are transferred to various accounts for non-motorized recreation, offroad vehicles, boating, and snowmobiling, and serve to fund recreation programs. However, it can be argued that only a portion of the fuel taxes collected on nonhighway/off-road recreational use are actually being dedicated to recreational programs. The 18th Amendment to the State s Constitution provides that fuel tax receipts be used specifically for highway purposes, while allowing refunds for nonhighway use. 7 Revised Code of Washington (RCW) states that AgForestry Class of 36 Public Policy Project Group 4 Page 3

10 1% of net fuel tax is paid by off-road or nonhighway vehicle users. This 1% is allocated into two accounts. The first is the Off-Road Vehicle and Nonhighway (ORV) Account. These dollars are paid directly to DNR, Parks and WDFW to support recreation. The remainder is paid into the Nonhighway Off-Road Vehicle Account (NOVA), which is managed by the Recreation and Conservation Office (RCO) for the purpose of funding the development and management of recreation opportunities in Washington State. Proposed recreation projects competitively seek funding via RCO s NOVA grant program. While RCW stipulates that 1% of the net fuel tax is to be used for recreation purposes, there are statutory restrictions on the total amount that can be transferred to these recreation accounts. In conjunction with the latest gas tax increases, a $0.23 per gallon cap was placed on funds being allocated to the ORV and NOVA accounts. The remaining $0.145 per gallon of the total $0.375 per gallon tax is distributed to various accounts in the Motor Vehicle Fund for roads, highways, and other transportation purposes. 8 Allocation of Washington State Fuel Tax Paid by Nonhighway and Off-Road Users 9 Motor Vehicle Fund; 14.5 cents, 38.7% Distribution of 1% of Gas Tax Proceeds Paid by Nonhighway and Off-Road Users Allocation of the 23-Cent Refund to Recreation Accounts ORV 41.5% Off-Road Recreation; 23 cents, 61.3% NOVA 58.5% Because a portion of fuel taxes paid by nonhighway/off-road vehicle users are incorporated into the State s transportation budget, the Group s initial strategy was to leverage the Washington State legislative process to propose that fuel tax refunds be appropriated as originally intended. In short, an amendment to current statute would need to require that the portion of fuel tax presumed to be used by off-road vehicles (1%) be transferred at the full $0.375 per gallon tax rate, thus lifting the so-called gas tax cap. The team worked to investigate and pursue this seemingly fair and straightforward course of action. However, in conducting outreach with key persons from DNR, RCO, and other organizations it became apparent that the political climate for a legislative action of this nature did not lend itself to success. Put more succinctly by a knowledgeable source, a proposal to lift the gas tax cap in the near-term would be dead-on-arrival. Imposing or increasing taxes are always a legislative hindrance, but in this particular situation, the proposal was further complicated by the Governor s priority on the State s transportation strategy, which is also grossly underfunded. Additionally, it was expected that because of the 2014 McCleary decision 10 - a Washington State Supreme Court order that directs the legislature to enact specific educational reforms and produce a funding plan - the Governor would likely focus on funding education during the 2015 legislative session. Although discouraged and faced with what was likely an unrealistic goal (at least within the project timeframe), Public Policy Group 4 considered what it would take to build a coalition of sufficient size and clout to achieve the desired outcome during the 2015 legislative session. Ironically, during that time, Washington State Governor Jay Inslee issued the executive order establishing a Blue Ribbon Task Force on Parks and Outdoor Recreation. In February of 2014, he charged the Task Force with developing a transformation strategy for outdoor recreation in Washington State. Although Public Policy Group 4 was able to keep abreast of Task Force developments through DNR contacts, the impetus to solve the issue of inadequate funding for recreation was largely taken from the Group. AgForestry Class of 36 Public Policy Project Group 4 Page 4

11 Revised Strategy Following a significant investment in research and stakeholder engagement, the Group understood that it would need to change direction. Realizing that the political momentum necessary to lift the 23-cent cap on the gas tax was a recommendation of the Task Force to the Governor, Public Policy Group 4 decided to focus its energy on developing alternative ways to increase revenue to outdoor recreation in the State. Options explored included, proposing additional taxes, implementation of Pay-to-Play policies whereby participants in recreational activities are charged for their use of specific infrastructure, and other more innovative options. One such innovation was to capture private dollars to fund public recreation site maintenance and operations. With this notion, a second strategy was brought forward to develop a program that would enable State agencies to work with private partners in order to accomplish objectives of operating and maintaining recreational infrastructure. Certainly, State agencies would have much to gain if they could get an organization to perform or fund work with a minimal investment in the State s time and resources. Conceptually, this involved identifying organizations willing to sponsor recreational sites, either through direct funding, volunteer work, or other means. In return, the organization would receive name recognition for their efforts. Photo provided by: Nancy Barker, DNR This idea was developed on the premise that private recreational businesses, such as REI and Cabela s, profit from recreation activity on State-owned lands. If one accepts that improved access to recreational opportunities results in increased demand for equipment, apparel, and/or services, then it follows that these companies have a vested interest in supporting State recreational sites. Sponsorship would demonstrate social responsibility, build goodwill, improve consumers brand perceptions, create targeted advertising opportunities, and provide for potential tax write-offs. There is a compelling business case that tying a company s brand to the very places where consumers recreate (and where they have likely developed strong emotional connections) will result in increased sales for the firm. At first glance, executing such an agreement seems to be a simple endeavor. One finds, however, that no administrative procedure exists for partnerships with respect to recreational funding and concerns arise regarding liability, conflict of interest and other issues. In working to develop a tangible outcome for this policy project, the Group has pursued the development of a procedure that could satisfy agency requirements. To achieve this task the team chose to work with the Washington State Department of Natural Resources. Ultimately, Public Policy Group 4 envisions implementation of a statewide, highly visible, uniform-across-agencies, program where private sponsors would pay for or perform maintenance and operations. Outcome: Adopt-a-Rec Program Program Description The proposed program, hereafter referred to as the Adopt-a-Rec Program, would permit businesses and organizations to partner with State agencies to fund, or otherwise provide resources to maintain, or further develop, recreation infrastructure. Recognition of the business or organization donating funds is a key to the success of the Adopt-a-Rec Program. The Program will provide companies and/or organizations the opportunity to tie their name and/or brand to the AgForestry Class of 36 Public Policy Project Group 4 Page 5

12 places in which their customers play and work. The primary form of recognition will be signage in prominent locations of the recreation sites these partners support. These signs will be a tangible reminder of partners support of the public good, offering recognition and positive exposure 24 hours a day, 7 days a week, and 365 days a year. Program Model The Adopt-a-Rec Program is patterned after the successful Washington State Department of Transportation (WSDOT) Adopt-a-Highway Program. 11 The WSDOT program enlists volunteers and sponsors to assist with the cleanup of right-of-ways adjacent to State highways. Entities enter into specific agreements for a section of highway, and receive recognition via a sign on the section of highway they have adopted. Adopt-a-Highway sponsors are businesses or groups that hire State-approved contractors to pick up litter on an agreed to stretch of highway six times per year. Sponsors are recognized via a sign featuring the organization s logo. Volunteers typically adopt a two mile stretch of highway and pick up litter as outlined in the agreement. Volunteers are recognized via a sign featuring the name of their group, but volunteers cannot have a logo on the highway sign. The overall cost of being a sponsor depends on how much the contractor charges to pick up and dispose of the litter. Additionally, WSDOT charges a fee of $300 to $900 for the highway sign, depending on the section of highway. Volunteers incur limited costs including their time and transportation to the site. WSDOT disposes of the bagged litter. Similarly, the proposed Adopt-a-Rec Program would leverage sponsors and volunteers to complete needed maintenance and fund operations at State-owned recreational sites. One advantage that Adopt-a-Rec would have over Adopt-a-Highway is that State-approved contractors may also include State employees. Additionally, volunteers that perform maintenance on behalf of the State could be treated as approved service providers. In this manner, sponsors and volunteers could be recognized at the same recreational site with signage for their efforts. Photo provided by: The Adopt-a-Highway Program is successful for a number a reasons applicable to the proposed Adopt-a-Rec Program. First, it is uniform across the State. When the public sees a sign, they see the name of a corporation, organization or individual and understand that someone is taking an active role in the appearance of a stretch of highway. That can be very good advertising for corporations or organizations that seek to be associated with social responsibility. A statewide, uniform roll-out of Adopt-a-Rec would help program participants receive a consistent experience in program administration and help them to understand what to expect in return for their participation regardless of the geographic area being supported. Second, the public generally understands that the entity enters this agreement voluntarily, as a benefit to the entire State. The more obvious (and hugely less popular) alternative to clean highways or improved recreational infrastructure is simply to increase taxes in order to provide for the desired public service. In giving private players corporations and non-profit organizations the opportunity to contribute, the public is given a more positive perspective. This is not government at its worst, but parties working together to achieve lasting success. Media and public relations promotions on the part of State agencies, volunteers, and sponsors would help to reinforce the value of this concept and demonstrate the impact. AgForestry Class of 36 Public Policy Project Group 4 Page 6

13 Lastly, when organizations are publically recognized for volunteering time and resources, other like-minded individuals have the opportunity to connect with these organizations. Today, the State s recreation infrastructure is strengthened by strong partnerships with service-oriented groups. High quality signage would help to better acknowledge these efforts and reinforce the behavior. Additionally, public recognition has the opportunity to attract sponsors who would receive a return on their donation by way of targeted advertising. Signage would help to connect businesses brands with consumers of their products and services. A Unique Proposal The Blue Ribbon Task Force on Parks and Outdoor Recreation shared its final report 12 to Governor Inslee in September 2014, including near-term priorities for funding recreation. It is worth noting that the Task Force s recommendations do not include the solicitation of private contributions to support State-owned recreational land. The Adopt-a-Rec Program is a unique proposal with the potential to capture the benefits of public-private partnerships and support funding for recreation in a meaningful way. Accordingly, Public Policy Group 4 is confident that its work will complement (and not compete with) the recommendations of the Blue Ribbon Task Force. Task Force suggestions include: 1) Retain the Discover Pass until a long-term, dedicated funding source can replace Discover Pass revenues. 2) Establish annual motor home and travel trailer excise tax, bottled water sales tax, and watercraft excise tax. 3) Fund the Youth Athletic Facilities grant program. 4) Allow continued use of the real estate excise tax for local park operations by repealing sunset clause (December 31, 2016). 5) Fund and protect current outdoor recreation grant programs. 6) Remove 23-cent cap on gas tax attributed to off-road recreation. As expected, the Task Force provided the political momentum necessary to tackle the gas tax cap. At the time of this writing, House Bill 1738 and companion bill Senate Bill 5617 concerning marine, off-road recreational vehicle, and snowmobile fuel tax refunds based on actual fuel taxes paid, were introduced to the legislature. The bills propose to maintain the fuel tax rate for marine, off-road vehicle, and snowmobile fuel tax refunds and transfers at 23 cents per gallon through June 30, 2031, and to change the fuel tax rate beginning July 1, 2031, and thereafter. The refunds and transfers will be based on the State's fuel rate in existence at the time of the fuel purchase. 13 However, the sixteen year waiting period to lift the gas tax cap underscores the importance of developing innovative ways to fund recreation today. Next Steps and Recommendations Throughout the project, Public Policy Group 4 worked with key players at DNR to create buy-in for the Adopta-Rec Program concept. This culminated in a meeting with DNR to provide an overview of the proposed Program and to share the Group s vision for Program implementation. As a project deliverable, the Group drafted a volunteer and sponsorship agreement (see Appendix A) that DNR approved for review by the Attorney General s office. With this work completed, Public Policy Group 4 is turning over implementation of the Adopt-a- Rec Program to DNR. To assist in this handoff, the following recommendations for refining the Program s business model have been shared with DNR for consideration. Refinement of the Business Model The business model associated with the Adopt-a-Rec Program is robust and has the potential to not only accomplish more effective volunteer work, but also to secure significant new funding sources. Public Policy Group 4 suggests that DNR consider these points as the Program is implemented: AgForestry Class of 36 Public Policy Project Group 4 Page 7

14 1) Articulate the differences in recognizing volunteers and sponsors. Volunteers and sponsors will make important, but distinct contributions to the Program. Unlike the Adopt-a-Highway Program, recognition for Adopt-a-Rec participation can include signs for both volunteer and sponsor organizations at the same site. With the opportunity to recognize both types of participants simultaneously, distinctions in recognition may include the use of an organization s logo for sponsors, and name recognition for volunteers (such as with Adopt-a-Highway). Sign size and placement are other factors to consider. Sponsors may have a larger sign that is physically placed above a volunteer sign. 2) Determine the design elements and preferred vendor(s) for signage. Signage will need to be professionally designed and uniform standards will need to be established. As above, design elements for sponsor signs may differ from volunteer signs. A preferred sign supplier will need to be identified, and a process for working with that vendor to order and ship signs must be developed. A process for sign installation at the recreational site also needs to be considered. 3) Calculate annual funding need by site. The costs for maintenance and operations by individual site must be understood in order to assure that sponsors cover, or at least make a significant contribution toward, the annual need. These findings will inform the creation of an appropriate pricing model. 4) Define a pricing model for Adopt-a-Rec sponsorships. The Adopt-a-Highway model provides insight on a potential pricing model, but not a perfect match for the Adopt-a-Rec Program. Adopt-a-Highway sponsors are charged a fixed cost of $300 to $900 for the sign depending on the section of highway where it is placed. Under the Adopt-a-Rec Program, sponsor signs could be charged at cost or on a cost plus basis to cover installation costs. Volunteer signs would likely be provided free of charge, or for a nominal fee that helps to offset the cost of the sign and installation. In addition to the sign, Adopt-a-Highway sponsors are also charged a variable cost determined by how much the third-party contractor charges to pick up and dispose of the litter. The Group s research suggests that this cost equates to charge as low as $0.20 CPM. According to Adopt-A-Highway Litter Removal Service of America, Inc., 14 CPM, or cost per mile, is the price of 1,000 advertising impressions in the Adopt-A-Highway Program. When comparing to the cost of traditional media, the metric cost per thousand views is used. This is the cost to reach 1,000 consumers through a single form of advertising. The channel with the lowest cost per thousand is generally the most efficient as it costs less to reach more consumers. The downside in the case of Adopt-a-Highway, however, is that the marketing effort is less focused. The chart to the right compares the cost per thousand of traditional advertising mediums. There is value in the comparison, but a pricing model based on a cost per thousand views is unlikely (mathematically) to contribute materially to funding maintenance and operations for recreation unless Photo provided by: there are multiple sponsors per site. Accordingly, a different model should be considered. A variable pricing model might be tied to a cost per visitor. Mt. Si, at 150,000 annual visitors would bring in $75,000 per year at sponsor rate of $0.50 per visitor, whereas Mailbox Peak with 50,000 annual visitors would bring in $25,000 per year at the same rate. The Adopt-a-Rec model has a significant advantage over traditional advertising mediums. Program sponsors will likely pay a price premium given the highly targeted advertising opportunity, the ability to demonstrate AgForestry Class of 36 Public Policy Project Group 4 Page 8

15 social responsibility, the chance to build goodwill, and the potential for tax write-offs. If multiple sponsorships are allowed at one site, sponsors may be willing to pay an additional premium to be the sole sponsor. Furthermore, sponsors are likely to pay a premium based on the emotional connection that most recreational users will have with the sites they frequent. The ability to tie a company s brand to a consumer s positive emotional experience is a unique and desirable opportunity. According to research from Gallup, consumers will give more money to the businesses they feel emotionally connected to, and they will continue to ignore, or even oppose, those that provide them no value [Gallup] data reveal that a customers who are fully engaged [those with very positive emotional connection with a company] -represent an average 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with average customers. 15 5) Get Parks and WDFW on board. The Discover Pass Program was the first attempt of the DNR, WDFW, and Parks to unite visibly in the legislature s and public s view to work together to solve the recreation funding dilemma. A broader launch of the Adopt-a-Rec Program - implemented by the three primary State recreation organizations would demonstrate a shared commitment to continuing to solve this ongoing issue. 6) Identify likely sponsors and volunteers. The State should engage with sporting goods retailers, recreational outfitters (service providers such as guides) and others as these potential partners can tie profits to the use of their products on State-owned recreation sites. Additionally, clubs promoting specific activities and seeking members to gain strength and lobbying power will be interested in targeted advertising, from both a sponsorship and volunteer perspective. 7) Classify recreational sites by primary activity to identify target market opportunities. Sponsors will be more likely to participate (and may pay a premium) for recreational sites tied to core focus. For instance, REI is a likely sponsor of campsites, while Cabela s may pay a premium to sponsor areas favored by hunters. Polaris will be interested in sites frequented by snowmobilers and ATV riders, and MasterCraft would be likely to sponsor recreational areas dedicated to boating activates. 8) Create a communication strategy. Public outreach will be required to educate stakeholders about the Adopt-a-Rec concept. A media and public relations splash will enhance the value of sponsorship, which should result in a corresponding increase in interest about the Program. The communications strategy should also address negative perceptions that State agencies are attempting to commercialize recreational lands. Messaging could highlight the continued importance of volunteers in the maintenance of recreational infrastructure and underscore the benefit of the Program to taxpayers. 9) Engage with potential sponsors and volunteers early. The implementation team will be able to gage interest and test assumptions on the structure and mechanics of the Program through outreach and surveys. This work will provide opportunities for adjustments to the model and may help to identify a pilot project sponsor. 10) Complete a pilot project. To test and refine the concept, while also demonstrating its potential, the DNR should engage in a pilot project before a full roll-out. Outcomes would be used to generate support from stakeholders. Group 4 has provided specific recommendations for the pilot test below. 11) Assure the model is scalable and replicable. An effective business model will provide for efficiency and consistency in Program implementation and ongoing administration. This will be important both within and among the State agencies to assure a uniform, statewide, interagency program. Inconsistencies in administration will dilute the value of the program. As discussed above, participants should receive a consistent experience and understand what to expect in return for their participation regardless of the geographic area or specific agency being supported. AgForestry Class of 36 Public Policy Project Group 4 Page 9

16 Pilot Project Recommendations It is important that the Program be piloted where it stands the most chance to be successful; in a highly visible location that is immediately attractive to potential sponsors and which will effectively demonstrate the impact to the sponsor, prospective sponsors, DNR and other State agencies, and the public. For a number of reasons, Public Policy Group 4 proposes that the Adopt-a-Rec Program be piloted through DNR, initially targeting the Snoqualmie Corridor. Map of Snoqualmie Corridor 16 Located along I-90, the Snoqualmie Corridor is Seattle s recreational artery, and the need for additional maintenance and operation funding will be demonstrated here to the highest concentration of recreation users in the State. The public in the Puget Sound is very aware of their political and spending power, which they use to affect the social responsibility of vendors who profit by their recreational equipment purchases. In this locale, Group 4 envisions corporations being primary supporters of the concept. Snoqualmie Corridor will have the best opportunity to generate dollar donations directly benefitting its most visited areas, such as Tiger Mountain and Mount Si. The users at Mt. Si and Tiger Mountain participate in every kind of non-motorized recreation. On the Mt. Si Trail alone, 100,000 users visit the trail each year. Growing numbers of mountain bikers are flocking to Tiger Mountain to use some of the Puget Sound s best single track mountain bike trails. Volunteers have always carried some of the maintenance load at these sites, but the Adopt-a-Rec Program will also target businesses AgForestry Class of 36 Public Policy Project Group 4 Page 10

17 benefitting directly from the recreation opportunities existing in the Corridor. Seeking sponsorships is a new mechanism that will complement the existing volunteer program. Piloting the program here will help a recreation program which suffered tremendously from the recession seven years ago when General Fund dollars were greatly reduced. Furthermore, the Snoqualmie Corridor has recreation sites ineligible for NOVA funding, because the sites are directly acessed from streets or highways, rather than forest or nonhighway roads. Donations generated from the Adopt-a-Rec Program will be a critical funding source for this area. The final reason the Snoqualmie Corridor may be a prime location to launch this program is the fact that several maintenance contracts are currently used to accomplish routine facility maintenance. Through the existing contracts, maintenance costs are easily demonstrated to new investors. This will help establish credibility and confidence in the Program s launch. The needs of all State recreation agencies far exceed currently available funding. Grants are difficult to win, and maintenance backlogs continue to grow. Public awareness of the problem must be raised. DNR, Parks and WDFW can all benefit from this Adopt-a-Rec Program. A successful pilot is critical to bringing everyone on board, including our potential partners as well as the benefitting agencies. The DNR s implementation in the Snoqualmie Corridor will be the best opportunity for a successful launch. Conclusions The need to fund recreation in Washington State is acute. Public Policy Group 4 s efforts to identify innovative sources of revenue have provided a meaningful alternative for Washington State. The Program will be highly visible, implemented statewide, and will include the participation of DNR, Parks and WDFW. The program will also be uniformly implemented across these agencies. The Adopt-a-Rec Program delivers to the public a clear message about existing funding problems, brings forward an opportunity by which they can be a part of the solution, and demonstrates State agencies commitment to work toward sustainable, reliable funding. Successful implementation of the Adopt-a-Rec Program will attract solid partners that provide meaningful support to maintenance/operations budgets. Building long-term relationships with partners able to donate funds, materials and labor will help close the funding gap for the State recreation agencies. AgForestry Class of 36 Public Policy Project Group 4 Page 11

18 Appendix A: Adopt-a-Rec Program Draft Agreement This Agreement is made and entered into between the Washington State Department of Natural Resources (DNR), hereinafter called the "Department," and, hereinafter called the "Grantee." Whereas, the Grantee wishes to contribute toward the effort to enhance recreation facility maintenance. Now, therefore, the Department does hereby authorize the Grantee to participate in the Adopt-a-Rec Program by donating funds, buying maintenance materials, picking up litter, maintaining vegetation or conducting other enhancement work if specified, within the assigned recreation site designated below, only in accordance with the following terms and conditions: A.The Grantee does hereby agree to: 1. To conduct activities in a safe manner and comply with any conditions as may be required by the Department for safety of the volunteers and the recreating public. Safety is the number one priority of the program. 2. To learn and adhere to standards set for Department employees regarding ethics, safety, nondiscrimination, confidentiality, and respect for persons as well as Department maintenance standards for trails/sites. 3. To develop work plans for recreation facility maintenance activities, which will be approved by the Department Recreation Manager before work begins. The Grantee and the Department shall determine how and by whom the work shall be performed: by Grantee staff or volunteers led by the Grantee; by Department staff; by Department hired contractors; or a combination of the three. Payment for materials and/or services must be made by the Grantee prior to execution of this Agreement. Funds received will be held in a designated account to be used solely for the purposes outlined within the agreed upon work plan. An accountability of funds may be provided semi-annually to the Grantee, or as reasonably requested by the Grantee. 4. A: Should the Grantee prefer not to participate directly in the maintenance activities agreed upon with Department Recreation Manager required at the facility they have selected, actual costs for the required maintenance will be determined. These costs will be based on supplies and materials required, and Department maintenance staff, or contracted maintenance staff such as Washington Conservation Crew Corp, hired through the Department. B: Should the Grantee prefer to directly participate in the required maintenance, they shall agree to perform the remainder of Section A of this agreement. 5. To assign a leader to each crew and require that crew leader to have a copy of this Agreement with him/her while working on the facility maintenance. 6. To perform recreation maintenance semi-monthly between May and September, and monthly October through April. Additional clean ups should be done as necessary to maintain a neat and landscaped appearance. 7. To have all volunteers read the Department s volunteer agreement and sign the liability waiver at the anytime volunteer work is conducted. 8. To verify that volunteers under the age of 18 have a signed waiver by their parent or guardian. The Grantee shall furnish supervision at all work events to a level agreed upon by the recreation site manager dependent on type of work being completed. AgForestry Class of 36 Public Policy Project Group 4 Page A1

19 Appendix A 9. To verify that each volunteer has received and reviewed safety training materials and training aids provided by the Department before participating in work activities. 10. To obtain equipment, supplies and materials from the Department or purchased by Grantee as determined by agreement. 11. To ensure that volunteers who find anything that they suspect to be hazardous to not touch it, but take appropriate precautions and report the location and description of the material/substance to the Department Recreation Manager. 12. To ensure that volunteers not pick up syringes, hypodermic needles, exceptionally large, heavy or unyielding objects. When these kinds of materials are discovered, the Department Recreation Manager should be notified as soon as possible to arrange for proper disposal. 13. To ensure that activities shall not take place during a legal holiday, during the afternoon on the day before a legal holiday, or on holiday weekends. See RCW , legal holidays defined. 14. To provide the Department Representative with a copy of the volunteer agreement, and the parental/guardian waivers, with names and signatures of individual volunteers in the recreation facility activities within seven (7) calendar days following each and every work activity. 15. To ensure that the crew leader report any injuries, incurred by volunteers during recreation facility work, to the Department Representative within two (2) working days of the injury. Notification shall include: Name of injured person Nature of injury Date and time of injury How the injury occurred 16. To return to the Department workers warning sign(s) and equipment or supplies following the work event. B. The Department does hereby agree to: 1. Furnish and install an Adopt-a-Rec sign with the Grantee name or acronym displayed at the assigned area, if the work meets the minimum criteria for signing. 2. Track all costs of materials, staff time or contracted services, as agreed on in the project plan, and provide the Grantee a spending report as requested. 3. Furnish the Grantee equipment and warning sign(s), and safety equipment for volunteers to use during work activity. 4. Assist the Grantee in cleaning up litter and/or debris if necessary (i.e., when large, heavy, or dangerous items are found), and removing trash following the recreation maintenance activity. 5. Provide safety materials and training aids to Grantee for use by Grantee in training. 6. Maintain necessary records required under RCW to secure medical aid benefits under chapter RCW for volunteers. AgForestry Class of 36 Public Policy Project Group 4 Page A2

20 Appendix A C. Other Considerations, Terms, and Conditions: 1. It is recommended the Grantee have a first aid kit available at the recreation facility site and that at least one person with a valid First Aid Card be present during activities. 2. It is recommended that the Grantee have a cellular phone, radio, or some form of two way communications on site in case of emergency. Department radios may be available under special circumstances as discussed with project Recreation Manager. 3. The Department is authorized to temporarily suspend this Agreement without incurring liability for any reason. The Department will notify the Grantee when activities may be resumed. 4. The Department is authorized to terminate this Agreement without notice if it deems necessary for any reason, or if the Grantee fails to comply with any conditions of this Agreement, or for any public purpose, without cost to the Department. This Agreement will automatically terminate upon thirty (30) days written notice of non-compliance, unless the Grantee takes corrective action(s) as approved by the Department. The Grantee may terminate this agreement with cause or for reason of Department s inability to perform staff or contracting services. Unspent monies will be returned to the Grantee. All agreements will end at biennium end. Recurring agreements should be negotiated and finalized no later than March 31, prior to start of new biennium. 5. This Agreement is not assignable or transferable, either in whole or in part. 6. The term of this Agreement shall commence on: and shall end on:, unless renewed, terminated without notice, or terminated on thirty (30) day notice by the Department and/or the Grantee. Upon termination of this Agreement, the Adopt-A-Rec sign shall be removed and remain the property of the Department. 7. Indemnification: To the fullest extent permitted by law, Grantee shall indemnify, defend and hold harmless the Department, its officials, agents and employees, from and against all claims arising out of or resulting from Grantee s, or Grantee s agents or contractors, negligence while performing this Agreement. Claim as used in this agreement means any financial loss, claim, suit, action, damage, or expense, including but not limited to attorneys fees, attributable for bodily injury, sickness, disease or death, or injury to or destruction of tangible property including loss of use resulting therefrom. Grantee s obligation to indemnify, defend, and hold harmless includes any claim by Grantee s agents, employees, representatives, or any subcontractor or its employees. Grantee expressly agrees to indemnify, defend, and hold harmless the Department for any claim arising out of or incident to Grantee s or any subcontractor s negligence while performing under this Agreement. Where there is concurrent negligence between Department and Grantee, Grantee s obligation to indemnify, defend, and hold harmless Department shall be valid and enforceable only to the extent of Grantee s or its agents and contractors proportionate share of that negligence. 8. Waiver: The Grantee, on behalf of itself and its agents, agrees to and hereby does waive any and all claims for (a) personal injury to itself and/or agents, and (b) damages or losses to property, including expenses or lost revenues incurred by it or its agents, in connection with Grantee s and/or its agents use or occupancy of the state right-of-way as authorized by this Agreement as against the State of Washington, its officials, employees and/or authorized agents. 9. This indemnification and waiver shall survive the termination of this Agreement. AgForestry Class of 36 Public Policy Project Group 4 Page A3