CONDITIONS 1. Realizing that the end product has to appeal to the general public as a consumer, the National Park Service reserves the right of script approval on any television story involving the National Park Service or a Park Ranger, to insure that the Service image, standards, and ideals are accurately portrayed to the public. Scripts shall be submitted to the National Park Service far enough in advance that changes can be made, as necessary, before actual filming starts. 2. At least one Park Ranger will be on location when any filming is being conducted. This Park Ranger may be off duty and paid by Universal Studios but will have full authority from the Superintendent's office to stop any activity that is contrary to National Park Service policy or violates the standards of the National Park Service. 3. The Superintendent grants approval for the use of off-duty Rangers to help in traffic control, visitor contact, public relations, and technical advisory duties during filming of the Park Ranger series. These men may be paid directly by Universal Studios if they are actually off duty. A separate memorandum, explaining the ethics and conduct to be followed by the Rangers, will be issued from the Superintendent's office. 4. National Park Service approval is given for Universal Studios to construct sound stage facilities in the Curry Village bicycle garage. 5. Approval is given to construct and maintain wire cages for hauling trained animals used in filming the television series. The intent is to provide facilities for only those animals that will be filmed on a regular and continuing basis. "Cruncher" the bear; a raccoon; and possibly a deer or coyote may be maintained in cages on the backside of the Ahwahnee grounds (storage area east of the Hotel which is closed to the public) whenever the film crew is on location. In addition, cages may be constructed to hold additional animals on a temporary basis, as required, for filming purposes. Animal training or a menagerie of animals is to be avoided in the Park. The intent is to allow Universal Studios to maintain animals for filming purposes but to definitely avoid a zoo-like atmosphere or a public attraction. If animals are not required on a week-to-week basis, they are not to be kept within the Park. 6. Park Ranger cars furnished by Universal Studios for filming purposes should be marked as Universal Studios' cars when not in actual filming use. 7. Universal Studios' personnel wearing the National Park Service uniform— The National Park Service uniform is to be used only during actual filming of the Park Ranger series. This uniform will not be worn by Universal personnel when they are off the filming location or when they are off duty and not actually filming. 8. Helicopter use-helicopters used in filming may not operate lower than 500 feet above the Valley rim in the Yosemite Valley area. Helicopters may film at low elevations over any area of the Park except Yosemite Valley, but may not land except in designated heliports and within 1⁄2 mile of the Tioga road. Specific landing spots, within this 1⁄2 mile area, must be approved by the Technical Advisor after consultation with the Park Superintendent or his representative. In addition, approval is granted for a one-time landing operation to film a Lost Arrow rescue and an El Cap rescue. Any landing in addition to the above will have to be specifically authorized through the Superintendent's office and the Washington office of the National Park Service. 9. No motor vehicles will be operated off existing roads or parking areas. Administrative roads such as fire roads or the roads open to shuttle bus traffic may be specifically authorized for use by the Technical Advisor, but must be kept open for shuttle bus or other traffic. 10. A hand-propelled wheeled carrier (similar to the wheeled litter carrier used by Yosemite Search and Rescue) may be used to transport camera equipment on Park trails or in such areas as specifically designated by the Park Service's Technical Adviser. Each area of use of this wheeled carrier must have the prior approval of the Technical Advisor. 11. Filming activities must be conducted so as not to interrupt any shuttle bus scheduling or activities. On Park roads not served by shuttle bus, a maximum traffic delay of 10 minutes may be allowed. Any delay should be avoided as much as possible. AGREEMENT FOR USE OF NATIONAL PARK SERVICE CONTRACT HELICOPTER BY UNIVERSAL STUDIOS, SUBSIDIARY OF MUSIC CORPORATION OF AMERICA For the use of the Yosemite National Park contract helicopter (Shasta Helicopters, Inc., Hiller SL-3) the Universal Studios, Music Corporation of America agrees to pay the National Park Service the contract flight rate of $130 per hour plus an additional $40 per hour for helicopter standby and support helitack service consisting of equipment and two helitack personnel. An additional 5 percent facilitating cost will be charged Universal Studios to cover administrative costs incurred by the National Park Service. All costs this fiscal year will be charged to account No. 8812-6042-455. It will be understood by Universal Studios, Music Corporation of America, that control of the helicopter will remain with the National Park Service and that said aircraft will be diverted from nonemergency utilization to any and/or all emergencies within Yosemite National Park and in cooperative mutual aid zones and for mutual aid federal, state and county agencies. In the best interests of public safety and park protection, said helicopter will not be operated without attendance by at least two assigned government helitack personnel. Insurance is carried by Shasta Helicopters, Inc., to cover passengers and freight. The National Park Service does not assume any liability for injuries or death that may be sustained by passengers or damage or loss of property that is related to helicopter operations. DONALD L. CROSS, Representative of National Park Service. Representative of Universal Studios, Music Corporation of America. YOSEMITE NATIONAL PARK, Yosemite National Park, Calif., February 12, 1974. FILMING PERMIT (1) Permission is requested to make a Motion Picture Film in the Valley and Badger Pass area of Yosemite National Park. (2) The scope of the filming (or production or recording) and the manner and extent thereof will be as follows: Weather conditions permitting, work will commence on approximately February 19, 1974 and will be completed on approximately March 19, 1974. Classification: Commercial Feature. Distribution: Nationwide. (3) The undersigned accepts and will comply with the following conditions: (i) Utmost care will be exercised to see that no natural features are injured, and after completion of the work the area will, as required by the official in charge, either be cleaned up and restored to its prior condition or left, after cleanup, in a condition satisfactory to the official in charge. (ii) Credit will be given, when applicable, to the U.S. Department of the Interior and the National Park Service through the use of an appropriate title or announcement. (iii) Pictures will be taken of wildlife only when such wildlife will be shown in its natural state or under approved management conditions if such wildlife is confined. Artificial feeding of wildlife will not be permitted. (iv) Special instructions, see after signatures. (v) Any additional information relating to the privilege applied for by this application will be furnished by the issuing office. Bond requirement: $10,000. Approved: Feb. 19, 1974. SPECIAL INSTRUCTIONS (a) No wheeled vehicles are to be operated off designated roads or parking lots. (b) There will be no closure of the areas to the public. (c) Except in extreme emergencies involving the safety of human life or threat of serious property loss, helicopter or aircraft use is prohibited. (d) Filming should not show acts or actions that may be contrary to the policies or objectives of the National Park Service or Yosemite National Park, such ascutting trees, shooting wildlife, out of bounds camping, trailbikes or snowmobiles on trails or cross-country, etc. (e) Code of Federal Regulations pertinent to Yosemite National Park is available for inspection at all ranger offices and the Administration Building. (f) Permittee will advise by telephone issuing office of presence in Park prior to filming operations. Mr. FINNEGAN. The Park Service had written in November 1973 to MCA Recreation and said that they were going to negotiate or renegotiate for an increase in the franchise fees. I believe that Mr. Foust wrote that letter, and I believe there was also correspondence back and forth with Mr. Stein and others at MCA through the early part of this year. But as of March 8, there had not been any further consideration of the franchise fees; is that correct? Mr. DICKENSON. That is correct, sir. Mr. FINNEGAN. Here it is December 1974, more than 9 months later, and there has been no further negotiation over this matter. Mr. DICKENSON. The only explanation, I am told, is at the intervention of higher priorities. The negotiation will be resumed. The negotiation of franchise fees takes two willing parties. Mr. FINNEGAN. But if you do not have any negotiations at all, you cannot have any willing parties. Mr. DICKENSON. I agree. There has to be a timely negotiation. We will be resuming those shortly. Mr. FINNEGAN. Can you explain to us what the priorities were? Mr. DICKENSON. Simply the intervention of summer operations, the gearing up for the peak period of the year. Those negotiations are the responsibility of the Superintendent, the regional director, and the field operators. Mr. FINNEGAN. Now, let me understand you. You say the negotiations or the renegotiations are handled by the Superintendent? Mr. DICKENSON. And the regional director. Mr. FINNEGAN. And the regional director. Does he not have personnel in the San Francisco regional office who could handle these negotiations? Mr. DICKENSON. That is correct, sir. Mr. FINNEGAN. Then what priority is there on those people's time that would prevent them from conducting such negotiations? Mr. DICKENSON. Well, there are obviously other parks besides Yosemite. Mr. FINNEGAN. How many other parks are currently in a situation where there is a renegotiation of contracts going on? Mr. DICKENSON. I would have to provide that for the record. Mr. DICKENSON. Yes. [The reply follows:] Public Law 89-149 requires that appropriate provisions shall be made for reconsideration of franchise fees at least every five years. Each contract provides for reconsideration of the franchise fee at the instance of either party. There are currently seven concession contracts which are within the franchise fee reconsideration period. Concessioner: Mesa Verde Co---- Jack H. Church.. Cavern Supply Co., Inc-- Signal Mountain Lodge, Inc‒‒‒‒ Jackglo, Inc___. Rainbow Forest Lodge, Inc--- Evelyn Hill, Inc---- Park Mesa Verde NP The status of the renegotiations are as follows: The Service has reached agreement with the Mesa Verde Company to increase the franchise fee from three-fourth of one percent to one and one-half percent. An amendment to its contract is being prepared. With regard to the other six concessioners, the Service is presently reviewing the financial operating results to ascertain if the franchise fee should be increased. Mr. FINNEGAN. Would you keep us advised as to the status of the MCA renegotiations and indicate to us early next month where they stand? Mr. DICKENSON. Yes, sir. [NPS correspondence and memorandums re negotiation of MCA franchise fees follow:] U.S. DEPARTMENT OF THE INTERIOR, NATIONAL PARK SERVICE, Washington, D.C., October 5, 1973. Memorandum to: Regional Director, Western Region Subject: Reconsideration of Franchise Fees, Yosemite Park and Curry Company and Best's Studio, Inc., Yosemite National Park Concession Contract No. NPS-WASO-IX-63-2 with Yosemite Park and Curry Company provides that the franchise fee may be reconsidered within sixty (60) days after the end of the tenth year of the contract, which is September 30, 1973. Concession Contract No. 14-10-9-900-149 with Best's Studio, Inc., provides that the franchise fee may be reconsidered within sixty (60) days after the end of the fifth year of the contract which is September 30, 1973. Pursuant to the franchise fee formula, concessioners are to pay a fee for the use of any Government-owned improvements assigned to them, based on the value of such improvements. For use in connection with the franchise fee reconsideration, please furnish a list, by number, of the Government-owned structures assigned to Yosemite Park and Curry Company and Best's Studio, Inc., showing the value at which each is carried on the books of the National Park Service, the remaining useful life at the time the valuations were established, the number of months each year the concessioner is able to make beneficial use of each building and the percentage of space to be assigned to the concessioner. The matter should be expedited to the extent possible, and in any event should be submitted by October 31. U.S. DEPARTMENT OF THE INTERIOR, NATIONAL PARK SERVICE Washington, D.C., November 21, 1973. Memorandum to: Regional Director, Western Region On November 6 and November 7, 1973, I discussed the reconsideration of the franchise fee with Don Hummel and Jay Stein. I notified them that they would be receiving information from us regarding the negotiation of the franchise fees. I told both Messrs. Hummel and Stein that I was discussing it with them because of the November 30 deadline on the reconsideration of the fees. I told them that after they received information on the renegotiation of fees, I would be interested in receiving their comments. I also discussed the additional franchise fees for 1972 that are due because of the improper calculation which excluded Indian merchandise sales. JON A. FOUST, DECEMBER 11, 1973. Memorandum to: Superintendent, Yosemite From: Regional Director, Western Region Subject: Reconsideration of Franchise Fee, Yosemite Park and Curry Co., Yosemite Enclosed is Mr. Dickenson's letter of November 23 addressed to Mr. Jay Stein, Yosemite Park and Curry Company, advising Mr. Stein that the Service proposes to enter into negotiations with respect to a revision of the franchise fee. This letter should be transmitted to Mr. Stein; a copy is enclosed for your files. Also enclosed is a copy of a memorandum, approved by Acting Director Dickenson, which contains details of our proposal to increase the franchise fee and the considerations upon which this determination is based. This memorandum is intended for your use in conducting negotiations with the concessioner for the proposed changes in the franchise fee. You will note this memorandum proposes that the percentage-of-gross franchise fee be raised from 34% to 12%. In addition, the "flat fee" of $5,000 will be replaced by an annual Building Use Charge of $16,900. To illustrate how the proposed changes would affect the concessioner's profit picture, we have applied the new rates to the concessioner's FY-1972 results in column 2 below, while column 1 shows the actual figures reported, as follows: You will note from the above figures that the new rate of 1%% of gross receipts plus a flat fee of $16,900 would produce an overall increase of $118,987 in the 1972 franchise fee. However, the decrease in net profit would only be about $61,400. This is due to the fact that the concessioner's income taxes amount to about 48.28% of the net profit before tax. In other words, of the $118,987 increase in franchise fee shown in column 2 above, $61,400 would come out of the concessioner's pocket while the balance would be offset by a reduction in income taxes. The proposed rate of 12% is consistent with our franchise fee formula, and considering that the concessioner recently reported net income of $1,612,000 for FY-1973, nearly doubling the income reported for FY-1972, we recommend that every effort be made to obtain the concessioner's agreeemnt to increasing the percent-of-gross fee to 12%. The building use charge is not considered negotiable, therefore there should be no question of that charge being increased to $16,900 per year. The $16,900 is the total figure resulting from the application of our building use formula to the improvements assigned to the concessioner, according to your inventory dated August 3, 1973, copy enclosed. The concessioner's contract has not yet been amended to provide for excluding gross receipts from the sale of United States Indian and native handicraft from |