BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 384 (Chesbro) Hearing Date: 06/27/2011 Amended: 04/05/2011 Consultant: Brendan McCarthy Policy Vote: NR&W 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 384 authorizes a three-way land exchange between the Department of Parks and Recreation, the Department of Forestry and Fire Protection, and the City of Fort Bragg or the County of Mendocino, for the purpose of developing a new solid waste transfer station. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund State agency Unknown costs, likely in the hundredsVarious administrative costs of thousands, fully reimbursed _________________________________________________________________ ____ STAFF COMMENTS: The City of Fort Bragg and the County of Mendocino currently operate a solid waste transfer station at the site of a closed landfill south of Fort Bragg. The current site of the transfer station poses logistical problems for the city and the county. AB 384 authorizes the Department of General Services to facilitate a three-way land swap to address the situation. Under the bill, the city or county would be authorized to acquire 17 acres of the Jackson Demonstration State Forest from the Department of Forestry and Fire Protection for the development of a new transfer station. In turn, the Department of Forestry and Fire Protection would acquire 12.6 acres of the Russian Gulch State Park from the Department of Parks and Recreation. (This parcel is isolated from the rest of the park, but has good potential for timber harvesting.) Finally, the Department of Parks and Recreation would be granted a covenant restricting the use of 60 acres of city and county property adjacent to Russian Gulch State Park that is currently used as a transfer station AB 384 (Chesbro) Page 1 and was formerly used as a landfill site. In addition, the Department of Parks and Recreation would be granted an option to buy 35 acres of the property (which was not part of the landfill) for $1. The bill requires the local governments to reimburse state agencies for all of their administrative costs associated with the land transfers. In addition, the bill requires the local governments to compensate the state if the appraised value of the land acquired by the local governments is more than the value of the property acquired by the Department of Parks and Recreation. Because the local governments are required to reimburse state agencies for any administrative costs or net loss in land value, the bill does not impose any net costs on state agencies. Staff recommends that the bill be amended to require the Department of General Services to require the local governments to indemnify the state from any liability due to potential contamination of the property to be acquired by the Department of Parks and Recreation. In addition, because the local governments have ongoing responsibilities for the closed landfill site, staff recommends the bill be amended to allow for local government access to the property that may be transferred to the state, to perform monitoring activities.