BILL ANALYSIS Ó AB 1614 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1614 (Monning) As Amended June 25, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |55-14|(March 29, |SENATE: |37-0 |(August 20, | | | |2012) | | |2012) | ----------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY : Extends the statutory sunset date for the Fort Ord Reuse Authority (FORA). The Senate amendments : 1)Extend the statutory sunset date for FORA by six years to June 30, 2020, (instead of 10 years, as passed by the Assembly). 2)Provide that the transition plan developed by the FORA board shall be approved and submitted to the Monterey County Local Agency Formation Commission (LAFCO) on or before December 30, 2018, as specified. 3)Repeal outdated code sections related to FORA. 4)Make other minor, technical changes. EXISTING LAW : 1)Establishes FORA, at the request of the County of Monterey and the Cities of Monterey, Salinas, Carmel, and Pacific Grove, in order to create an effective governmental structure to plan for, finance, and carry out the transfer and reuse of the base in a cooperative, coordinated, balanced, and decisive manner in order to achieve the following policies: a) To transfer and reuse the real and personal property comprising the military reservation known as Fort Ord with all practical speed; b) To minimize the disruption caused by the base's closure on the civilian economy and the people of the Monterey Bay area; AB 1614 Page 2 c) To provide for the reuse and development of the base area in ways that enhance the economy and quality of life of the Monterey Bay community; and, d) To maintain and protect the unique environmental resources of the area. 1)States that FORA's purpose is to plan for, finance, and manage the transition of the property known as Fort Ord from military to civilian use. 2)Specifies that the member agencies of FORA are the County of Monterey and the City of Carmel, the City of Del Rey Oaks, the City of Marina, the City of Sand City, the City of Monterey, the City of Pacific Grove, the City of Salinas, and the City of Seaside. 3)Makes FORA inoperative when the FORA board determines that 80% of the territory of Fort Ord that is designated for development or reuse in the plan has been developed or reused in a manner consistent with the plan adopted or revised, or June 30, 2014, whichever occurs first. 4)Requires the Monterey County LAFCO to provide for the orderly dissolution of FORA, including ensuring that all contracts, 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. AS PASSED BY THE ASSEMBLY , this bill: 1)Extended the statutory sunset date of the FORA from June 30, 2014, to June 30, 2024. 2)Required the FORA board to approve and submit a transition plan to the Monterey County Local Agency Formation Commission (LAFCO) on or before December 30, 2022, or 18 months before the anticipated inoperability date, whichever occurs first. 3)Specified that the transition plan shall assign assets and liabilities, designate responsible successor agencies, and provide a schedule of remaining obligations. 4)Required the transition plan to be approved by a majority vote AB 1614 Page 3 of the FORA board. FISCAL EFFECT : None COMMENTS : Fort Ord is located in northern Monterey County generally between the cities of Monterey to the southeast and Salinas to the northeast. It borders Monterey Bay to the west and extends from the City of Seaside in the south to the City of Marina in the north and to the Salinas River to the east encompassing 45 square miles and covering over 28,000 acres. The Fort Ord Base closure announcement occurred in 1991, generating a mixture of disbelief, economic impacts and excitement about potential reuse. This land had been part of the history of Monterey County on the Monterey Peninsula since 1917. Within months, a series of meetings were initiated to discuss recovery from the significant closure impacts by creating a "vision" for reuse. The meetings included broad participation from the community including residents, businesses, government, special districts, among others. From those meetings, it was agreed that reuse should focus on education, environment, and economic development (the "three E's" of Fort Ord Reuse). Initial efforts to organize governance for reuse faltered. State Senator Henry Mello sponsored special legislation to establish a local agency charged with the task of planning, financing, and implementing reuse. That agency was entitled the "Fort Ord Reuse Authority," and was formed in 1994. FORA has a governing body of 13 voting members and 11 non-voting members, and is 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 FORA Base Reuse Plan (Plan) that was adopted in 1997. FORA's organizational structure is set to sunset in 2014. Delay and restrictions are probably the most important and costly factors affecting reuse of the former Fort Ord. The biggest unforeseen problem that was encountered was a regional community interest lawsuit against the Army regarding its munitions removal processing which delayed property transfers for five years. This caused the delay of early project approvals and resulted in all of the reuse projects being AB 1614 Page 4 subjected to the economic recession of the past decade. Other factors contributing to the goals of FORA's recovery not being met were that the scope of the munitions and explosives remediation was greater and more costly than anticipated, and that federal and state Habitat Conservation Plan (HCP) approval delays precluded progress. The current economic cycle is further exacerbating the delay. Due to all of these circumstances, FORA's June 30, 2014, sunset date, which anticipated that 80% of the reuse recovery plan would be completed, cannot be achieved. Fort Ord reuse is currently 17-20% complete - not near the expected 80%. According to the author, if FORA is not extended, its work must be performed by other local agencies who are not equipped to fulfill ongoing and fixed term obligations on Fort Ord such as munitions and explosives removal, HCP implementation, financing contaminated building deconstruction, and coordinating planning and construction of the Central Coast Veterans Cemetery. These entities also lack the regional authority that prompted the Legislature to create FORA, and would most likely result in work being either delayed or not being performed. The author believes that there remains a need for a broad regional authority to oversee the reuse of the former Fort Ord military base. Extending FORA's sunset date allows local collaboration to continue to implement the FORA recovery program, and to enhance the economy and quality of life in the Monterey Bay community and the California Central Coast. Although some local organizations have asked the author for many different types of amendments to the FORA Act, the author's intent with this bill is to focus on issues directly related to extending FORA's sunset date. The author believes that "with the exception of including a requirement for a transition plan for the phase-out of FORA, the suggested amendments are not directly linked to the sunset date and will compromise the chances of AB 1614 taking effect. Additional issues, including but not limited to land use decisions, updating the Base Reuse Plan, reducing FORA's appeal fee, and the governance structure, should not be considered at the state level without local consideration first." Support arguments: Supporters are concerned that if FORA were to sunset on June 30, 2014, the regional planning and AB 1614 Page 5 coordination work would be transferred to a yet-to-be determined local agency or agencies, unprepared to fulfill the ongoing and fixed term obligation on Fort Ord. Opposition arguments: Opponents may argue that this bill does not go far enough and that the overall structure and duties of FORA should be expanded to take a different regional approach that cuts across local governments, non-profits, and educational facilities in Monterey County. Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958 FN: 0004318