BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1757 (Monning)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant:  Maureen Ortiz      Policy Vote: VA 4-0
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          ____
          BILL SUMMARY:   AB 1757 authorizes the design and construction  
          of a state owned veterans cemetery to be located on the site of  
          the former Fort Ord in Monterey County.
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          ____
                            Fiscal Impact (in thousands)
           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Cemetery design                        $800                       
                                                  Special*

          *California Central Coast State Veterans Cemetery at Fort Ord  
          Endowment Fund                  
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          ____
          STAFF COMMENTS:  SUSPENSE FILE.
          
          The current cost estimate to complete preliminary plans and  
          working drawings, is approximately $800,000.  These funds would  
          be transferred from the Endowment Fund, and any costs for the  
          design activities would subsequently be reimbursed by the  
          federal government once the grant is awarded.  Additionally, all  
          costs associated with the design, construction and equipping of  
          the veterans cemetery will be reimbursed through the federal  
          grant program.

          AB 1757 requires the Department of Veterans Affairs, in  
          voluntary cooperation with the County of Monterey, the City of  
          Seaside, the Fort Ord Reuse Authority, and surrounding counties,  
          cities, and local agencies, to design, develop, and construct  
          the state-owned and state-operated veterans cemetery at Ford  
          Ord. 

          Specifically, AB 1757 requires the cemetery to be built with the  
          "usual phases of a capital outlay project" which includes  
          studies, preliminary plans, working drawings including documents  
          necessary to put the construction phase out to bid, and  










          construction of the cemetery.  This will allow the department to  
          proceed with all activities necessary to complete preliminary  
          plans and working drawings.  The department will be prohibited  
          from advertising for construction bids until the Endowment Fund  
          has adequate principal to cover annual administrative and  
          oversight costs.

          The bill requires the Controller, upon appropriation by the  
          Legislature, to transfer funds from the Endowment Fund to the  
          Operations Fund in the amount at least equal to the estimated  
          costs to complete preliminary plans and working drawings.  The  
          Department would be authorized to proceed with all activities  
          necessary to support the submission of the grant application,  
          and upon certification of the grant award, to begin construction  
          and equipping the veterans cemetery.

          AB 1757 requires the Secretary of the California Department of  
          Veterans Affairs to establish the California Central Coast  
          Veterans Cemetery Advisory Committee consisting of the following  
          persons, to be appointed by the Secretary:
          Page 2
          AB 1757 (Monning)


          1)One representative from the County of Monterey, nominated by  
            the Board of Supervisors of the County of Monterey.
          2)One representative from the City of Seaside, nominated by the  
            City Council of the City of Seaside.
          3)One representative from the Fort Ord Reuse Authority.
          4)Two members from the Fort Ord Veterans Cemetery Citizens  
            Advisory Committee.
          5)At least two members from the department.

          The bill requires the Department to seek the advice of the  
          Advisory Committee when considering significant changes in the  
          design of the veterans cemetery.

          AB 3035 (Laird, Chapter 291, Statutes of 2006) established the  
          California Central Coast State Veterans Cemetery at Fort Ord  
          Endowment Fund for the receipt of donations of personal  
          property, including cash or other gifts, to be used for the  
          maintenance of the veterans' cemetery.  AB 3035 provided that  
          moneys in the fund must first be invested with the goal of  
          achieving ongoing earnings sufficient to cover the estimated  
          annual oversight and maintenance costs for ten years once the  
          cemetery is completed.  After determination that sufficient  










          funds have become available, that bill required the DVA to  
          submit a federal State Veterans' Cemetery Grant Program  
          application to the United States DVA for an amount representing  
          100% of the estimated costs for designing, developing,  
          constructing, and equipping the cemetery.

          The military base at Fort Ord was established in 1917 and in  
          1940 was declared a permanent Army post.  In 1991, Fort Ord was  
          announced for closure by the United States Base Realignment and  
          Closure Commission.  Prior to its closure, the Fort Ord Reuse  
          Authority set aside 204 acres for the development of a Central  
          Coast Veterans' Cemetery.

          Previous attempts at obtaining a national cemetery at the Fort  
          Ord location have failed because federal regulations prohibit  
          the development of a national veterans cemetery within 75 miles  
          of another national veterans cemetery.  Fort Ord is located  
          within 75 miles of the San Joaquin Valley National Veterans'  
          Cemetery in Gustine.  As an alternate to a national veterans  
          cemetery, the federal government will pay 100% of construction  
          costs for a state run cemetery, however, the state has the  
          continuing responsibility for paying the annual maintenance and  
          operation costs which were estimated at $500,000 per year.   
          Consequently, although the intent is for private donations to  
          fully fund the maintenance costs, there is no guarantee that  
          those costs will not ultimately fall upon the state and require  
          a General Fund appropriation in the future.  There is currently  
          one other state veterans cemetery in California, located in  
          Redding.

          AB 1757 will also authorize the use of any excess balances in  
          the Endowment Fund to be used, upon appropriation by the  
          Legislature, to establish monuments, memorials, and amenities.