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F I S C A L I M P A C T R E P O R T
SPONSOR Pinto
ORIGINAL DATE
LAST UPDATED
1-22-07
2/1/07 HB
SHORT TITLE Making an Appropriation for Red Rock State Park SB 112/aSIAC
ANALYST Woods
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
5,000.0 Non-recurring
General fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 157
SOURCES OF INFORMATION
LFC Files
Responses Received From
Energy, Minerals and Natural Resources Department (EMNRD)
SUMMARY
Synopsis of SIAC Amendment
Senate Indian and Cultural Affairs Committee amendment to SB112 amends the legislation to
reflect the following language:
1. On page 1, line 18, strike "year 2008" and insert in lieu thereof "years 2008 through 2011".
2. On page 1, line 20, after "1990" insert "and for such other capital replacement and
improvement needs as may be necessary".
3. On page 1, line 21, strike "2008" and insert in lieu thereof "2011".
Synopsis of Original Bill
Senate Bill 112 –
Making an Appropriation for Red Rock State Park – a
ppropriates $5 million from
the general fund to the Energy, Minerals and Natural Resources Department for improvements to
Red Rock State Park and to bring it into compliance with the federal Americans with Disabilities
pg_0002
Senate Bill 112/aSIAC – Page
2
Act of 1990. Any unexpended or unencumbered balance remaining at the end of fiscal year 2008
shall revert to the general fund.
SIGNIFICANT ISSUES
The State Parks Division (SPD) expects to assume ownership and of Red Rock Park in Gallup
and re-establish the site as a state park in FY08. Red Rock State Park (RRSP) will entail
substantial responsibilities and costs. These costs will be both for recurring park operational
funds and for capital infrastructure funds.
The City of Gallup’s most recent 5-year capital improvement plan, combined with assessments
conducted by SPD staff, suggest that the immediate capital improvement needs at Red Rock are
at least $5,000.0 and probably closer to $10,000.0. Significant funds are needed to comply with
the ADA, maintain and replace critical infrastructure systems, and maintain/improve the facility
so that it can continue to attract and support major events and all of the park’s diverse uses.
SPD suggests that the appropriation in the bill would therefore address a significant portion of
the currently identified capital infrastructure needs, including the most pressing needs. The U.S.
Department of Justice has inspected Red Rock with respect to ADA compliance and has directed
significant improvements to be made. Compliance will require, for example, reconstruction of
restrooms/comfort stations and perhaps a portion of the rodeo arena. ADA compliance required
by federal law is at the top of the list of the site’s capital needs, but many require less than the
$5,000.0 contemplated in the bill; the detailed planning, design, cost estimates, and project
bidding have not yet occurred. It is clear, however, that the ADA compliance costs will be in the
millions and that Red Rock can easily absorb $5,000.0 in capital improvements.
The proposed appropriation is for one year. SPD indicates that typical major capital
improvement projects take a minimum of two years to perform from conception through
planning/design, state contracting, and construction. In this case, $5,000.0 worth of
improvements at RRSP would most likely be broken into several capital projects, each of which
will probably require at least a year or more to complete.
PERFORMANCE IMPLICATIONS
SPD notes that if the appropriation remains a one-year appropriation, it is highly likely that the
funds would have to be reappropriated due to the timeframe associated with scoping the project,
developing the design, bidding, contracting, then performance of the work. In addition, as
drafted, the bill would not permit SPD to expend these funds on other important capital projects
at Red Rock if there was an emergency or other critical infrastructure need arose, or if ADA
compliance was achieved and a fund balance for the appropriation remained.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Duplicates House Bill 157
BW/csd