BILL ANALYSIS Ó AB 384 Page 1 Date of Hearing: April 12, 2011 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Mary Hayashi, Chair AB 384 (Chesbro) - As Amended: April 5, 2011 SUBJECT : State forest land: Jackson Demonstration State Forest. SUMMARY : Authorizes the City of Fort Bragg (City) and the County of Mendocino (County) to acquire up to 17 acres of the Jackson Demonstration State Forest (JDSF) to develop a solid waste transfer station, as part of a three-way property transfer set at fair market value. Specifically, this bill : 1)Authorizes the Department of General Services (DGS), with the approval of the Department of Forestry and Fire Protection (CAL FIRE), to transfer up to 17 acres of JDSF from CAL FIRE to the City or County, to build a solid waste transfer station, and further: a) Authorizes the City or County to take title to up to 17 acres of JDSF within five years from the date an agreement is executed; b) Requires the City or County to build a solid waste transfer station within 10 years of taking title of up to 17 acres of JDSF or the land reverts back to CAL FIRE; and, c) Requires that the existing Caspar Landfill cease to accept solid waste once the solid waste transfer station opens. 2)Authorizes DGS, with the approval of the Department of Parks and Recreation (DPR) to transfer 12.6 acres in Russian Gulch State Park (RGSP) to CAL FIRE for compensation for the loss of up to 17 acres of JDSF. 3)Authorizes the City or County to give DPR the grant of a restrictive covenant on 60 acres of City and County property on the northern boundary of the RGSP which is currently a closed landfill and small volume transfer station, and a 99-year option for DPR to buy 35 acres of City and County property for $1. AB 384 Page 2 4) Requires the entity acquiring title to the 17 acres of JDSF property to: a) Reimburse the state for the difference in the appraised value of the assets to be exchanged, if the state is found to be receiving less value, and for reasonable administrative costs to complete the transfer of title; and, b) Be responsible for compliance with the California Environmental Quality Act. 5)Makes the three-way land transfer subject to DGS's determination that it is in the state's best interests. 6)Creates the following definitions: a) "City" to mean the City of Fort Bragg; b) "County" to mean the County of Mendocino; c) "Entity acquiring title" to mean either the city or county, whichever exercises the option to take title to JDSF; and, d) "Property" to mean the certain property described as the easterly 17 acres, more or less, of that portion of Mendocino County Assessor's Parcel Number 019-150-05 which is north of State Highway 20, located in a portion of the JDSF. 7)Makes legislative findings and declarations relating to the City and County's objectives to build a solid waste transfer station and the three-way land transfer. EXISTING LAW : 1)Authorizes DGS, subject to legislative approval, to sell, lease, exchange, or transfer various specified properties for current market value, or upon terms and conditions as DGS determines are in the state's best interests. 2)Authorizes CAL FIRE to engage in the management, protection, and reforestation of state forests. AB 384 Page 3 3)Authorizes DPR to have control of the state park system. FISCAL EFFECT : Unknown COMMENTS : Purpose of this bill . According to the author's office, "This bill would authorize JDSF, RGSP, the County, and the City, to engage in a triple land swap in order for the County to build a new solid waste transfer station on the JDSF property." Background . The City and County are looking for a site to build a commercial transfer station for solid waste management. Currently, the Fort Bragg area does not have a long-haul transfer station, and in order to dispose of its trash for its 15,000 residents, must collect trash in Waste Management (WM) short-haul collection trucks that use detachable pods. Each pod holds up to five tons of trash, first collected at the Fort Bragg Haulers Yard, then detached and transported three at a time, in 15-ton trips, to the Willits Transfer Station (WTS). The solid waste is dumped, repackaged, and reloaded once more in transfer trailers carrying 25 tons to its final destination at the Portero Hills Landfill (PHL) in Solano County. The entire journey is approximately 120 miles from the Fort Bragg Haulers Yard to the PHL. The City and County are looking for a site to build a local transfer station to eliminate inefficiencies in costs, fuel consumption, and emissions, and to directly haul trash from the Fort Bragg area to the PHL without stopping at the WTS. The Mendocino Solid Waste Authority (Authority) states that in 2008, the City generated 14,300 tons of trash, which cost $89.93 per ton, or a total of approximately $1.3 million under a WM contract for transportation, handling and disposal of garbage from Fort Bragg to WTS and PHL. A new Fort Bragg transfer station would deliver solid waste at a cost of $78.57 per ton, or a total of approximately $1.1 million annually, by directing haul from the City to the PHL. The Authority remarks that this would result in an annual cost savings of $162,563. Also, the WM pod collection trucks are no longer manufactured and current pod trucks are operating with scavenged parts, and could cease operation at any time. If this occurs, solid waste will have to be hauled even less efficiently to the WTS and AB 384 Page 4 annual costs would rise to approximately $1.6 million unless a new Fort Bragg transfer station is available. WM's collection contracts for the Fort Bragg area expire in 2014 and the City and County want to have a new long-haul transfer station open by that date. The City has been looking for a site for a local transfer station. While the Caspar Landfill is a viable option, it is in close proximity to a residential neighborhood, poses a potential public nuisance by bordering state park, and has unsatisfactory and unfixable access roads. Right now, the Caspar Landfill is a small-volume self-haul landfill for residents only. A siting study identified 17 acres of JDSF as a prime location because the land has no timber crop, recreational function, or adjoining uses that would conflict with a transfer station. The City, County, CAL FIRE, and DPR have had positive conversations about the benefits of a three-way land transfer. This bill requires authorizes the land transfers at fair market value, and allows each party, pending completion of the appraisals, to compensate for the difference in value to complete the deal or to reject the deal altogether. Support . According to the sponsor, the Authority, "One of the most serious inefficiencies in our county's solid waste management is the lack of a commercial transfer station in the Fort Bragg coastal area. Solid waste is being hauled a long distance in small payloads. This increases costs and harms the environment through unnecessary truck trips and unnecessary greenhouse gas emissions? "Our comprehensive study identified 17 acres at the edge of JDSF, which is essentially unused, surplus, and irrelevant to the purposes of JDSF, as a possible transfer station site. AB 384 would provide an option to the County and City to acquire this site in exchange for full value given to the state, following environmental review and consideration of all alternatives." Double-referred . This bill is double-referred to Assembly Natural Resources Committee. REGISTERED SUPPORT / OPPOSITION : Support AB 384 Page 5 Mendocino Solid Waste Management Authority (sponsor) Associated California Loggers City of Mendocino Opposition None on file. Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301