BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1614
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1614 (Monning)
          As Amended  June 25, 2012
          Majority vote
           
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          |ASSEMBLY:  |55-14|(March 29,      |SENATE: |37-0 |(August 20,    |
          |           |     |2012)           |        |     |2012)          |
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           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          3)Repeal outdated code sections related to FORA.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;








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             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 








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            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 








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          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 








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          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 



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