Summary of LAO Findings and Recommendations on the 2010-11 Budget

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	Program	Budget Issue	LAO Finding Or Recommendation	Last Updated
Go Back	Department of Parks and Recreation	Proposed Concession Agreement for Point Lobos Ranch State Park.	Recommend the Legislature withhold approval of the Point Lobos Ranch concession proposal until the Department of Parks and Recreation has provided a final economic feasibility study.	5-05-10

Detailed Narrative
Under current law, the Legislature is required to review and approve any proposed or amended concession contract for state parks that involves total investment or annual gross sales over $500,000. In submitting a request to the Legislature, the Department of Parks and Recreation (DPR) is required to provide sufficient documentation to enable the Legislature to evaluate the proposed concession agreement including the proposed rent and other anticipated returns. In past years, the Legislature has provided the required approvals in the Supplemental Report of the Budget Act. The department has not yet completed the final economic feasibility study for the proposed concession at Point Lobos Ranch State Park. Without this information, the Legislature is not able to determine whether this proposal is in the state's interest. Therefore, we recommend the Legislature withhold approval of the Point Lobos Ranch State Park concession proposal until DPR has provided a final economic feasibility study.

Detailed Narrative

Under current law, the Legislature is required to review and approve any proposed or amended concession contract for state parks that involves total investment or annual gross sales over $500,000. In submitting a request to the Legislature, the Department of Parks and Recreation (DPR) is required to provide sufficient documentation to enable the Legislature to evaluate the proposed concession agreement including the proposed rent and other anticipated returns. In past years, the Legislature has provided the required approvals in the Supplemental Report of the Budget Act.

The department has not yet completed the final economic feasibility study for the proposed concession at Point Lobos Ranch State Park. Without this information, the Legislature is not able to determine whether this proposal is in the state's interest. Therefore, we recommend the Legislature withhold approval of the Point Lobos Ranch State Park concession proposal until DPR has provided a final economic feasibility study.