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
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          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.
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                            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    
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          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.