Transition/Business Start Up. The transition/start up for this proposal is challenging because expenses are spread through the year, yet revenues are concentrated in just a few summer months. To address this challenge, this proposal assumes the following: State Parks turns over operation of the park April 1, 2012. The District will start collecting all revenues at this point. However, during the subsequent first three months, to guarantee a smooth transition, State Parks will continue to pay the salary of a current park ranger at the park who will remain on-site. After three months, if permitted to do so by State Parks, the District will contract with State Parks to pay for the continued service of this park ranger for at least the first year, and preferably longer. All other staff will be paid by the District starting April 1, 2012. The District will raise a minimum of $60,000 from local sources (District funds and community donations) before the start of the agreement, to provide for up-front cash flow. Once seasonal park revenues come on line, and a positive cash flow is being generated, these local funds will be freed up and reallocated to fund the most critical repairs needed to bring the best of the existing cabins and houses up to code. These repairs are important both for health and safety reasons, as well as to turn these low and/or non-performing assets into positive revenue streams. Preliminary park unit closure cost estimates prepared by State Parks indicates that it will cost State Parks $25,000 per year to shutter Xxxxx-Napa Valley State Park, and another $25,000 to shutter Bale Grist Mill State Historic Park. These estimates are obviously very rough, but convey the important fact that if closed State Parks will still have non-insignificant ongoing costs. Under this proposal, State Parks will avoid most of these ongoing costs. Because the financial projections for District operation of the park indicate the budget will be very tight, the District’s proposal in essence asks State Parks to make a small portion of these savings available to the District through the above request for State Parks to provide three months of one ranger’s salary during the transition period.
