BILL ANALYSIS Ó SENATE GOVERNANCE & FINANCE COMMITTEE Senator Lois Wolk, Chair BILL NO: AB 1614 HEARING: 6/13/12 AUTHOR: Monning FISCAL: No VERSION: 3/12/12 TAX LEVY: No CONSULTANT: Weinberger FORT ORD REUSE AUTHORITY Extends the Fort Ord Reuse Authority Act's sunset date. Background and Existing Law The end of the Cold War forced the Pentagon to adjust to new geopolitical realities. Federal officials closed or realigned nearly three dozen military bases in California. To coordinate the transition of the former Fort Ord (Monterey County), the Legislature passed the Fort Ord Reuse Authority Act, which created the Fort Ord Reuse Authority (FORA) to adopt a Fort Ord Reuse Plan (SB 899, Mello, 1994). FORA adopted its Final Base Reuse Plan in 1997. The Final Base Reuse Plan for Fort Ord lays out the future land uses for the 45-square mile former Army base, including areas for housing, commerce, recreation, public uses, and open space. FORA has a governing body of 13 voting members and 11 non-voting members comprised of representatives from cities, Monterey County, special districts, public educational institutions, the military, and state and federal legislators. It is FORA's responsibility to complete the planning, financing, and implementation of reuse as described in the base reuse plan that was adopted in 1997. The state laws authorizing FORA become inoperative either when the authority's board determines that 80% of the territory that is designated for development or reuse in the base reuse plan has been developed or reused in a manner consistent with the plan or on June 30, 2014, whichever occurs first. The statutes are automatically repealed on January 1, 2015. The Monterey County Local Agency Formation Commission must provide for FORA's orderly dissolution, including insuring that all contracts, AB 1614 -- 3/12/12 -- Page 2 agreements, and pledges to pay or repay money entered into by the authority are honored and properly administered, and that all assets of the authority are appropriately transferred. FORA officials say that lawsuits, unexpected challenges relating to munitions removal, and the economic downturn are among the factors that have delayed the base reuse plan's implementation, which is approximately 20% complete. They worry that allowing FORA's statutory authority to expire in 2014 will make it more difficult to complete the remaining implementation work. FORA officials want the Legislature to extend the Fort Ord Reuse Authority Act's sunset date, allowing FORA to continue its role in overseeing the base reuse plan's implementation. Proposed Law Assembly Bill 1614 extends, from June 30, 2014 to June 30, 2024, the date by which the Fort Ord Reuse Authority Act must become inoperative. AB 1614 extends, from January 1, 2015, to January 1, 2025, the date on which the Act is repealed. AB 1614 requires FORA's board to approve and submit a transition plan to the Monterey County Local Agency Formation Commission on or before December 30, 2022, or 18 months before the anticipated inoperability date of the Fort Ord Reuse Authority Act, whichever occurs first. The transition plan must assign assets and liabilities, designate responsible successor agencies, and provide a schedule of remaining obligations. The transition plan must be approved by a majority vote of the board. State Revenue Impact No estimate. Comments 1. Purpose of the bill . Extended litigation, the recent economic downturn, and unexpected challenges related to munitions removal and permit approvals all contributed to AB 1614 -- 3/12/12 -- Page 3 the Fort Ord Reuse Authority making slower-than-expected progress in implementing its base reuse plan. Granting the Fort Ord Reuse Authority an additional 10 years in which to implement the authority's base reuse plan will allow it to complete important projects that require regional management, like munitions removal, contaminated building deconstruction and removal, habitat conservation, and planning and constructing a veterans' cemetery. Without an extension of its statutory authority, the responsibility for implementing the base reuse plan will devolve to a variety of local agencies, which may not be well equipped to complete some of the remaining projects that are technically complex and require regional collaboration. AB 1614 allows FORA to continue its role in fostering a collaborative approach to the Fort Ord reuse effort, enhancing the economy and quality of life in the Monterey Bay community and the California Central Coast. 2. Broader reforms . Some local stakeholders in the base reuse process object to extending FORA's authority to operate for 10 more years without also making other reforms to FORA's operations. These stakeholders express concerns about FORA's development priorities, governance structure, and fiscal accountability and want FORA to update the base reuse plan. They want FORA to: Stop approving development on undeveloped land before the completion of construction on lands containing barracks and other structures. Re-designate all significant oak groves and specified recreation trails as permanent open space. Update the Base Reuse Plan, including a re-evaluation of traffic, water supply, and wastewater infrastructure challenges. Operate more transparently, making meeting agendas, minutes, and annual reports more available to the public. The Committee may wish to consider whether the extension of FORA's sunset date should be conditional on the implementation of broader reforms. 3. Timing is everything . The 1994 Mello Legislation that created FORA gave the authority nearly 20 years to work on reuse of the former military base. As the end of that 20 year period approaches, the authority has only completed approximately 20% of the base reuse plan. Granting FORA 10 more years raises questions about whether the authority AB 1614 -- 3/12/12 -- Page 4 will act more expeditiously over the next decade than it has over the past two decades. Extending the Fort Ord Reuse Authority Act for a shorter period of time would provide greater opportunity for legislative oversight of FORA's progress. It also could encourage FORA to move more rapidly in implementing the base reuse plan and to prioritize the completion of projects that require regional coordination. The Committee may wish to consider amending AB 1614 to extend the sunset dates in the Fort Ord Reuse Authority Act by only six years. Assembly Actions Assembly Local Government Committee: 7-2 Assembly Floor: 55-14 Support and Opposition (6/7/12) Support : American Legion-Department of California; AMVETS-Department of California; City of Marina Mayor Bruce Delgado; California Association of County Veterans Service Officers; California State Commanders Veterans Council; California State University Monterey Bay; Central Coast Veterans Cemetery Foundation; Cities of Carmel-by-the-Sea, Pacific Grove; Salinas, Sand City, Santa Cruz, Seaside, Watsonville; Congressman Sam Farr; Fort Ord Reuse Authority Board of Directors; Friends of Fort Ord Open Space Solutions; Monterey Peninsula Chamber of Commerce; Monterey Peninsula College; Monterey County Board of Supervisors; Monterey County Business Council; Monterey/Santa Cruz Counties Building & Construction Trades Council; Transportation Agency for Monterey County; University of California, Santa Cruz Chancellor George Blumenthal; Ventana Chapter of the Sierra Club; Vietnam Veterans of America-California State Council, individual letters. Opposition : Fort Ord Rec Users; Friends of the Fort Ord Warhorse; Keep Fort Ord Wild; LandWatch Monterey County; Preston and Abrams Parks Tenants Association; individual letters.