BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 815|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 815
Author: Caballero (D)
Amended: 6/14/10 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/29/10
AYES: Wright, Harman, Calderon, Florez, Negrete McLeod,
Padilla, Price, Yee
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/2/10
AYES: Kehoe, Alquist, Ashburn, Corbett, Emmerson, Leno,
Price, Wolk, Wyland
NO VOTE RECORDED: Walters, Yee
ASSEMBLY FLOOR : Not relevant
SUBJECT : State property
SOURCE : Author
DIGEST : This bill amends an existing provision of the
surplus property bill of 2003 which granted the Director of
the Department of General Services (DGS) the authority to
convey the Salinas Armory, in the City of Salinas (Monterey
County) for no less than 50% of fair market value to the
City for development of a police station and instead
authorizes conveyance to the City for use as a "local
government-owned facility."
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ANALYSIS : Existing law authorizes DGS to perform various
functions with regard to state property and provides for
the sale, lease, or transfer of surplus state property, if
authorized or contemplated by law.
Existing law requires the Director of DGS to request
authorization by the Legislature prior to the disposition
by sale or otherwise of state land reported to it by a
state agency as being in excess of its foreseeable needs.
Each state agency is required to annually review
proprietary state lands under its jurisdiction to determine
what lands are in excess of the agency's foreseeable needs
and to report to DGS.
This annual review of proprietary state lands does not
apply to tax-deeded land, land held for highway purposes,
lands under the jurisdiction of the State Lands Commission,
land that has escheated to the state or that has been
distributed to the state by a court decree in estates of
deceased persons, and lands under the jurisdiction of the
State Coastal Conservancy. Jurisdiction of all land
reported as excess is transferred to DGS, when requested by
the Director of DGS, for sale or disposition or as may
otherwise be authorized by law.
Existing law provides criteria for state agencies to use in
determining and reporting to DGS lands in excess of the
agency's foreseeable needs. A state agency is to include
land not currently being utilized, or currently being
underutilized, for any existing or ongoing program; land
for which the agency has not identified any specific
utilization relative to future needs; and land not
identified by the agency within its master plan for
facility development.
Where applicable within its jurisdiction, DGS is
responsible for determining if surplus land is needed by
any other state agency. Existing law (Government Code
Section 11011.1) requires the state to first offer surplus
state real property to local agencies, and next, to offer
the property to nonprofit affordable housing sponsors, as
defined, prior to offering the property to private
entities. Existing law also prescribes the procedure for
local agencies and nonprofit affordable housing sponsors to
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use to obtain the surplus state real property.
Existing law specifies that the Legislature may authorize a
particular surplus property be sold at less than fair
market value (if the local agency uses the surplus state
real property for parks or open-space purposes) and
provides that 30 days prior to executing such a
transaction, DGS must report to the chairs of the fiscal
committees of the Legislature the following information:
(1) the financial terms of the transaction; (2) a
comparison of fair market value for the property and
financial terms; (3) the basis for agreeing to terms and
conditions other than fair market value.
Existing law [Government Code 11011 (k) (1) and (2)]
contains provisions exempting the sale of surplus property
from designated provisions of the California Environmental
Quality Act (CEQA). Specifically, the law provides that
any disposition of a parcel of surplus property made on an
"as-is" basis shall be exempt from statutory requirements
of CEQA; however, the law makes it explicit that the buyer
or transferee of a parcel shall be subject to any local
governmental entitlement or land use approval requirements
and CEQA.
Furthermore, existing law provides that if any transaction
is not on an "as-is" basis sale and close of escrow is
contingent on satisfying any local governmental approvals
for entitlement or land use requirements, including
compliance by the local government with CEQA, then the
execution of the purchase and sale agreement or exchange
agreement is exempt from CEQA.
Proposition 60A of November 2004 (SCA 18, Johnson,
Resolution Chapter 103/04) which was adopted by the
electorate (73% margin) requires, among other things, that
the proceeds from the sale of surplus state property, with
specified exceptions, be used to pay the principal and
interest on the Economic Recovery Bond Act of 2004.
Background
Salinas Armory. SB 856 (Governmental Organization),
Chapter 258, Statutes of 2003, was the annual surplus
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property bill, sponsored by DGS, which among other things,
authorized DGS, with consent of the Military Department to
surplus this property located at 100 Howard Street, in the
City of Salinas (Monterey County) and sell it to the City
for no less than 50% of fair market value so that the City
may use the property for a police station.
The property was appraised at $860,000 at the time of
purchase in July 2005 but the City received it for
$430,000. This conveyance was made on the condition that
the City utilizes the property for a public benefit by
constructing a police station. Conditions of the sale
provided that construction begin within 10 years of the
recording of the deed to the City. The State retained the
right to terminate the City's right, title, and interest in
the property if construction of the police station had not
commenced within 10 years of the deed recording. Several
use limitations were also placed on the property until
construction of the police station, including use as a
gymnastics academy and public parking for government
purposes. If the City breaches any of these conditions the
State retains the right to terminate the City's right,
title and interest in the property.
Comments
According to the author's office, the City of Salinas
purchased the Salinas Armory property from the State with
the intent of developing it into a police station however,
the City has encountered numerous obstacles in development
of the property, including but not limited to, the presence
of asbestos, mold, and other potential environmental
hazards. An alternative and superior location for a police
facility has been identified in east Salinas in the Alisal
Marketplace area, an area in great need of increased public
safety services and facilities.
This bill amends Section 4 of Chapter 258, Statutes of
2003, thereby authorizing the development of the Salinas
Armory as a local, government-owned facility for the public
benefit.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Conveyance Potential one time loss of
savings ($430) General
in 2015
SUPPORT : (Verified 8/9/10)
City of Salinas
Chief Louis Fetherolf, City of Salinas Police Department
Salinas Police Activities League
The Harding Foundation
CPM:cm 8/9/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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