Union Calendar No. 127

104TH CONGRESS

1ST SESSION H. R. 1296

[Report No. 104–234]

A BILL

To provide for the administration of certain Pretaxpayer. sidio properties at minimal cost to the Federal

AUGUST 4, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 127

104TH CONGRESS

1ST SESSION H. R. 1296

[Report No. 104–234]

To provide for the administration of certain Presidio properties at minimal

cost to the Federal taxpayer.

IN THE HOUSE OF REPRESENTATIVES

MARCH 22, 1995

Ms. PELOSI (for herself, Mr. HORN, Mr. GILMAN, and Mr. LANTOS) introduced the following bill; which was referred to the Committee on Resources

AUGUST 4, 1995

Additional sponsors: Mr. BEREUTER, Mr. GALLEGLY, and Mr. RADANOVICH

AUGUST 4, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on March 22, 1995]

A BILL

To provide for the administration of certain Presidio

properties at minimal cost to the Federal taxpayer.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. FINDINGS.

2 The Congress finds that—

3 (1) the Presidio, located amidst the incomparable

4 scenic splendor of the Golden Gate, is one of Ameri5 ca’s great natural and historic sites;

6 (2) the Presidio is the oldest continuously oper7 ated military post in the Nation dating from 1776,

8 and was designated a National Historic Landmark in

9 1962;

10 (3) preservation of the cultural and historic in11 tegrity of the Presidio for public use recognizes its sig12 nificant role in the history of the United States;

13 (4) the Presidio, in its entirety, is located within

14 the boundary of the Golden Gate National Recreation

15 Area, in accordance with Public Law 92–589;

16 (5) the Presidio’s significant natural, historic,

17 scenic, cultural, and recreational resources must be

18 managed in a manner which is consistent with sound

19 principles of land use planning and management,

20 and which protects the Presidio from development

21 and uses which would destroy the scenic beauty and

22 historic and natural character of the area; and

23 (6) the Presidio can best be managed through an

24 innovative public/private partnership that minimizes

25 cost to the United States Treasury and makes efficient
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1 use of private sector resources that could be utilized

2 in the public interest.

3 SEC. 2. AUTHORITY AND RESPONSIBILITY OF THE SEC4 RETARY OF THE INTERIOR.

5 (a) INTERIM AUTHORITY.—The Secretary of the Inte6 rior (hereinafter in this Act referred to as the ‘‘Secretary’’)

7 is authorized to manage leases in existence on the date of

8 this Act for properties under the Administrative jurisdic9 tion of the Secretary and located at the Presidio. Upon the

10 expiration of any such lease, the Secretary may extend the

11 lease for a period terminating 6 months after the first meet12 ing of the Presidio Trust at which a quorum is present.

13 After the date of the enactment of this Act, the Secretary

14 may not enter into any new leases for property at the Pre15 sidio to be transferred to the Presidio Trust under this Act.

16 Notwithstanding section 1341 of title 31 of the United

17 States Code, the proceeds from any such lease shall be re18 tained by the Secretary and such proceeds shall be avail19 able, without further appropriation, for the preservation,

20 restoration, operation and maintenance, improvement, re21 pair and related expenses incurred with respect to Presidio

22 properties. For purposes of any such lease, the Secretary

23 may adjust the rental by taking into account any amounts

24 to be expended by the lessee for preservation, maintenance,
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1 restoration, improvement, repair and related expenses with

2 respect to properties within the Presidio.

3 (b) PUBLIC INFORMATION AND INTERPRETATION.—

4 The Secretary shall be responsible, in cooperation with the

5 Presidio Trust, for providing public interpretative services,

6 visitor orientation and educational programs on all lands

7 within the Presidio.

8 (c) OTHER.—Those lands and facilities within the Pre9 sidio that are not transferred to the administrative jurisdic10 tion of the Presidio Trust shall continue to be managed by

11 the Secretary. The Secretary and the Presidio Trust shall

12 cooperate to ensure adequate public access to all portions

13 of the Presidio.

14 (d) PARK SERVICE EMPLOYEES.—No person who was

15 a career employee of the National Park Service as of Octo16 ber 1, 1994, and who is employed at the Presidio as of the

17 transfer of lands and facilities to the Presidio Trust under

18 this Act shall be involuntarily separated from service by

19 reason of such transfer.

20 SEC. 3. THE PRESIDIO TRUST.

21 (a) ESTABLISHMENT.—There is established a wholly

22 owned government corporation to be known as the Presidio

23 Trust (hereinafter in this Act referred to as the ‘‘Trust’’).

24 (b) TRANSFER.—(1) Within 60 days after receipt of

25 a request from the Trust for the transfer of any parcel with-
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1 in the area depicted as area B on the map entitled ‘‘Pre2 sidio Trust Number 1,’’ dated June 1995, the Secretary

3 shall transfer such parcel to the administrative jurisdiction

4 of the Trust. Within one year after the first meeting of the

5 Board of Directors of the Trust at which a quorum is

6 present, the Board shall request the Secretary to transfer

7 any remaining parcels within such area B. Such map shall

8 be on file and available for public inspection in the offices

9 of the Trust and in the offices of the National Park Service,

10 Department of the Interior. The Trust and the Secretary

11 may jointly make technical and clerical revisions in the

12 boundary depicted on such map. Such areas shall remain

13 within the boundary of the Golden Gate National Recre14 ation Area. The Secretary shall retain those portions of the

15 building identified as number 103 as the Secretary deems

16 essential for use as a visitor center. The building shall be

17 named the ‘‘William Penn Mott Visitor Center’’. With the

18 consent of the Secretary, the Trust may at any time transfer

19 to the administrative jurisdiction of the Secretary any other

20 properties within the Presidio which are surplus to the

21 needs of the Trust and which serve essential purposes of the

22 Golden Gate National Recreation Area. The Trust is en23 couraged to transfer to the administrative jurisdiction of

24 the Secretary open space areas which have a high public
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1 use potential and are contiguous to other lands adminis2 tered by the Secretary.

3 (2) The Secretary shall transfer, with the transfer of

4 administrative jurisdiction over any property, all leases,

5 concessions, licenses, permits, and other agreements relating

6 to such property. Upon the transfer of such property the

7 Secretary shall transfer the unobligated balance of all funds

8 appropriated to the Secretary for the operation of the Pre9 sidio, together with any revenues and unobligated funds as10 sociated with leases, concessions, licenses, permits, and

11 agreements relating to properties transferred to the Trust.

12 (c) BOARD OF DIRECTORS.—

13 (1) IN GENERAL.—The powers and management

14 of the Trust shall be vested in a Board of Directors

15 (hereinafter referred to as the ‘‘Board’’) consisting of

16 the following 7 members:

17 (A) The Secretary of the Interior or the Sec18 retary’s designee.

19 (B) Six individuals, who are not employees

20 of the Federal Government, appointed by the

21 President, who shall possess extensive knowledge

22 and experience in one or more of the fields of

23 city planning, finance, real estate, and resource

24 conservation. At least 3 of these individuals shall

25 reside in the city and county of San Francisco.
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1 The President shall make the appointments re2 ferred to in this subparagraph within 90 days

3 after the enactment of this Act.

4 (2) TERMS.—Members of the Board appointed

5 under paragraph (1)(B) shall each serve for a term

6 of 4 years, except that of the members first appointed,

7 3 shall serve for a term of 2 years. Any vacancy in

8 the Board shall be filled in the same manner in which

9 the original appointment was made, and any member

10 appointed to fill a vacancy shall serve for the remain11 der of the term for which his or her predecessor was

12 appointed. No appointed director may serve more

13 than 8 years in consecutive terms. No member of the

14 Board of Directors may have a development or finan15 cial interest in any tenant or property of the Pre16 sidio.

17 (3) QUORUM.—Four members of the Board shall

18 constitute a quorum for the conduct of business by the

19 Board.

20 (4) ORGANIZATION AND COMPENSATION.—The

21 Board shall organize itself in such a manner as it

22 deems most appropriate to effectively carry out the

23 authorized activities of the Trust. Board members

24 shall serve without pay, but may be reimbursed for

25 the actual and necessary travel and subsistence ex-
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1 penses incurred by them in the performance of the du2 ties of the Trust.

3 (5) LIABILITY OF DIRECTORS.—Members of the

4 Board of Directors shall not be considered Federal

5 employees by virtue of their membership on the

6 Board, except for purposes of the Federal Tort Claims

7 Act and the Ethics in Government Act.

8 (6) PUBLIC LIAISON.—The Board shall meet at

9 least 3 times per year in San Francisco and at least

10 one meeting shall be open to the public. The Board

11 shall establish procedures for providing public infor12 mation and opportunities for public comment regard13 ing policy, planning, and design issues through the

14 Golden Gate National Recreation Area Advisory

15 Commission.

16 (d) DUTIES AND AUTHORITIES.—In accordance with

17 the purposes set forth in this Act and in section 1 of the

18 Act entitled ‘‘An Act to establish the Golden Gate National

19 Recreation Area in the State of California, and for other

20 purposes’’, approved October 27, 1972 (Public Law 92–589;

21 86 Stat. 1299; 16 U.S.C. 460bb), and in accordance with

22 the general objectives of the general management plan ap23 proved for the Presidio, the Trust shall manage the leasing,

24 maintenance, rehabilitation, repair and improvement of

25 property within the Presidio which is under its administra-
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1 tive jurisdiction. The Trust may participate in the develop2 ment of programs and activities at the properties that have

3 been transferred to the Trust. In exercising its powers and

4 duties, the Trust shall have the following authorities:

5 (1) The Trust is authorized to manage, lease,

6 maintain, rehabilitate and improve, either directly or

7 by agreement, those properties within the Presidio

8 which are transferred to the Trust by the Secretary.

9 (2)(A) The Trust is authorized to negotiate and

10 enter into such agreements, leases, contracts and other

11 arrangements with any person, firm, association, or12 ganization, corporation or governmental entity, in13 cluding without limitation entities of Federal, State

14 and local governments (except any agreement to con15 vey fee title to any property located at the Presidio)

16 as are necessary and appropriate to finance and

17 carry out its authorized activities. Agreements under

18 this paragraph may be entered into without regard to

19 section 321 of the Act of June 30, 1932 (40 U.S.C.

20 303b).

21 (B) Except as provided in subparagraphs (C),

22 (D), and (E), Federal laws and regulations governing

23 procurement by Federal agencies shall apply to the

24 Trust.
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1 (C) In exercising authority under section 303(g)

2 of the Federal Property and Administrative Services

3 Act of 1949 (41 U.S.C. 253(g)) relating to simplified

4 purchase procedures, the Trust is authorized, to use as

5 the dollar limit of each purchase or contract under

6 this subsection an amount which does not exceed

7 $500,000.

8 (D) In carrying out the requirement of section

9 18 of the Office of Federal Procurement Policy Act

10 (41 U.S.C 416), the Trust is authorized to furnish the

11 Secretary of Commerce for publication notices of pro12 posed procurement actions, to use as the applicable

13 dollar threshold for each expected procurement an

14 amount which does not exceed $1,000,000.

15 (E) The Trust shall establish procedures for lease

16 agreements and other agreements for use and occu17 pancy of Presidio facilities, including a requirement

18 that in entering into such agreements the Trust shall

19 obtain reasonable competition.

20 (F) The Trust shall develop a comprehensive pro21 gram for management of those lands and facilities

22 within the Presidio which are transferred to the

23 Trust. Such program shall be designed to reduce costs

24 to the maximum extent possible. In carrying out this

25 program, the Trust shall be treated as a successor in
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1 interest to the National Park Service with respect to

2 compliance with the National Environmental Policy

3 Act and other environmental compliance statutes.

4 Such program shall consist of—

5 (i) demolition of all structures which cannot

6 be cost-effectively rehabilitated and are not of the

7 highest degree of historical significance,

8 (ii) new construction which would be lim9 ited to replacement of existing structures of simi10 lar size in existing areas of development, and

11 (iii) examination of a full range of reason12 able options for carrying out routine administra13 tive and facility management programs.

14 The Trust shall consult with the Secretary in the

15 preparation of this program.

16 (3) The Trust is authorized to appoint and fix

17 the compensation and duties of an executive director

18 and such other officers and employees as it deems nec19 essary without regard to the provisions of title 5,

20 United States Code, governing appointments in the

21 competitive service, and may pay them without re22 gard to the provisions of chapter 51, and subchapter

23 III of chapter 53, title 5, United States Code (relating

24 to classification and General Schedule pay rates).
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1 (4) To augment or encourage the use of non-Fed2 eral funds to finance capital improvements on Pre3 sidio properties transferred to its jurisdiction, the

4 Trust, in addition to its other authorities, shall have

5 the following authorities:

6 (A) The authority to guarantee any lender

7 against loss of principal or interest on any loan,

8 provided that (i) the terms of the guarantee are

9 approved by the Secretary of the Treasury, (ii)

10 adequate guarantee authority is provided in ap11 propriations Acts, and (iii) such guarantees are

12 structured so as to minimize potential cost to the

13 Federal Government. No loan guarantee under

14 this Act shall cover more than 75 percent of the

15 unpaid balance of the loan. The Secretary of the

16 Treasury shall collect a commercially reasonable

17 guarantee fee in connection with each loan guar18 anteed under this Act. The authority to enter

19 into any such loan guarantee agreement shall ex20 pire at the end of 12 years after the date of en21 actment of this Act.

22 (B) The authority, subject to available ap23 propriations, to make loans to the occupants of

24 property managed by the Trust for the preserva-
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1 tion, restoration, maintenance, or repair of such

2 property.

3 (C) The authority to issue obligations to the

4 Secretary of the Treasury, but only if the Sec5 retary of the Treasury agrees to purchase such

6 obligations after determining that the projects to

7 be funded from the proceeds thereof are credit

8 worthy and that a repayment schedule is estab9 lished. The Secretary of the Treasury is author10 ized to use as a public debt transaction the pro11 ceeds from the sale of any securities issued under

12 chapter 31 of title 31, United States Code, and

13 the purposes for which securities may be issued

14 under such chapter are extended to include any

15 purchase of such notes or obligations acquired by

16 the Secretary of the Treasury under this sub17 section. The aggregate amount of obligations is18 sued under this subparagraph which are out19 standing at any one time may not exceed

20 $50,000,000. Obligations issued under this sub21 paragraph shall be in such forms and denomina22 tions, bearing such maturities, and subject to

23 such terms and conditions, as may be prescribed

24 by the Secretary of the Treasury, and shall bear

25 interest at a rate determined by the Secretary of
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1 the Treasury, taking into consideration current

2 market yields on outstanding marketable obliga3 tions of the United States of comparable matu4 rities. No funds appropriated to the Trust may

5 be used for repayment of principal or interest

6 on, or redemption of, obligations issued under

7 this paragraph. All obligations purchased under

8 authority of this subparagraph must be author9 ized in advance in appropriations Acts.

10 (D) The Trust shall be deemed to be a pub11 lic agency for the purpose of entering into joint

12 exercise of powers agreements pursuant to Cali13 fornia government code section 6500 and follow14 ing.

15 (5) The Trust may solicit and accept donations

16 of funds, property, supplies, or services from individ17 uals, foundations, corporations, and other private or

18 public entities for the purpose of carrying out its du19 ties. The Trust shall maintain philanthropic liaison

20 with the Golden Gate National Park Association, the

21 fund raising association for the Golden Gate National

22 Recreation Area.

23 (6) Notwithstanding section 1341 of title 31 of

24 the United States Code, all proceeds received by the

25 Trust shall be retained by the Trust, and such pro-
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1 ceeds shall be available, without further appropria2 tion, for the preservation, restoration, operation and

3 maintenance, improvement, repair and related ex4 penses incurred with respect to Presidio properties

5 under its jurisdiction. Upon the request of the Trust,

6 the Secretary of the Treasury shall invest excess mon7 eys of the Trust in public debt securities with matu8 rities suitable to the needs of the Trust.

9 (7) The Trust may sue and be sued in its own

10 name to the same extent as the Federal Government.

11 Litigation arising out of the activities of the Trust

12 shall be conducted by the Attorney General, as needed;

13 except that the Trust may retain private attorneys to

14 provide advice and counsel, and to represent the

15 Trust in proceedings to enforce and defend the con16 tractual obligations of the Trust.

17 (8) The Trust shall have all necessary and prop18 er powers for the exercise of the authorities invested

19 in it.

20 (9) For the purpose of compliance with applica21 ble laws and regulations concerning properties trans22 ferred to the Trust by the Secretary, the Trust shall

23 negotiate directly with regulatory authorities.

24 (e) INSURANCE.—The Trust shall procure insurance

25 against any loss in connection with the properties managed
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1 by it or its authorized activities as is reasonable and cus2 tomary.

3 (f) BUILDING CODE COMPLIANCE.—The Trust shall

4 bring all properties under its jurisdiction into compliance

5 with Federal building codes and regulations appropriate to

6 use and occupancy within 10 years after the enactment of

7 this Act.

8 (g) TAXES.—The Trust shall be exempt from all taxes

9 and special assessments of every kind in the State of Cali10 fornia, and its political subdivisions, including the city and

11 county of San Francisco.

12 (h) FINANCIAL INFORMATION AND REPORT.—(1) The

13 Trust shall be treated as a wholly owned Government cor14 poration subject to chapter 91 of title 31, United States

15 Code (commonly referred to as the Government Corporation

16 Control Act). Financial statements of the Trust shall be au17 dited annually in accordance with section 9105 of title 31

18 of the United States Code.

19 (2) At the end of each calendar year, the Trust shall

20 submit to the Congress a comprehensive and detailed report

21 of its operations, activities, and accomplishments for the

22 prior fiscal year. The report also shall include a section

23 that describes in general terms the Trust’s goals for the cur24 rent fiscal year.
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1 (i) SAVINGS CLAUSE.—Nothing in this section shall

2 preclude the Secretary from exercising any of the Sec3 retary’s lawful powers within the Presidio.

4 (j) LEASING.—In managing and leasing the properties

5 transferred to it, the Trust should consider the extent to

6 which prospective tenants maximize the contribution to the

7 implementation of the General Management Plan for the

8 Presidio and to the generation of revenues to offset costs

9 of the Presidio. The Trust shall give priority to the follow10 ing categories of tenants: tenants that enhance the financial

11 viability of the Presidio thereby contributing to the preser12 vation of the scenic beauty and natural character of the

13 area; tenants that facilitate the cost-effective preservation

14 of historic buildings through their reuse of such buildings,

15 or tenants that promote through their activities the general

16 programmatic content of the plan.

17 (k) REVERSION.—If the Trust reasonably determines

18 by a two-thirds vote of its Board of Directors that it has

19 materially failed to, or cannot, carry out the provisions of

20 this Act, all lands and facilities administered by the Trust

21 shall revert to the Secretary of Defense to be disposed of

22 in accordance with section 2905(b) of the Defense Author23 ization Act of 1990 (104 Stat. 1809), except that—

24 (1) the terms and conditions of all agreements

25 and loans regarding such lands and facilities entered
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1 into by the Trust shall be binding on any successor

2 in interest; and

3 (2) the city of San Francisco shall have the first

4 right of refusal to accept all lands and facilities for5 merly administered by the Trust.

6 (l) LIMITATIONS ON FUNDING.—(1) From amounts

7 made available to the Secretary for the operation of areas

8 within the Golden Gate National Recreation Area, not more

9 than $25,000,000 shall be available to carry out this Act

10 in each fiscal year after the enactment of this Act until the

11 plan is submitted under paragraph (2). Such sums shall

12 remain available until expended.

13 (2) Within one year after establishment of the Trust,

14 the Trust shall submit to Congress a plan which includes

15 a schedule of annual decreasing Federally appropriated

16 funding such as will achieve total self-sufficiency for the

17 Trust within 12 complete fiscal years after establishment

18 of the Trust. That plan shall provide for annual reductions

19 in Federally appropriated funding such that the Trust will

20 be 80 percent self-sufficient at the end of 7 complete fiscal

21 years after establishment. The plan shall provide for elimi22 nation of all Federally appropriated funding for public

23 safety and fire protection purposes on lands or facilities ad24 ministered by the Trust at the end of 5 complete fiscal years

25 after establishment of the Trust. For each of the 11 fiscal
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1 years after fiscal year 1997, there are authorized to be ap2 propriated to the Trust not more than the amounts specified

3 in such plan. Such sums shall remain available until ex4 pended.

5 (m) GAO AUDIT.—Ten years after the date of estab6 lishment of the Trust, the General Accounting Office shall

7 conduct a complete audit of the activities of the Trust and

8 shall report the results of that audit to the appropriate con9 gressional committees. The General Accounting Office shall

10 include in that audit an analysis of the ability of the Trust

11 to initiate payments to the Treasury.

12 (n) SEPARABILITY OF PROVISIONS.—If any provisions

13 of this Act or the application thereof to any body, agency,

14 situation, or circumstance is held invalid, the remainder

15 of the Act and the application of such provision to other

16 bodies, agencies, situations, or circumstances shall not be

17 affected thereby.

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