BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 121
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          ASSEMBLY THIRD READING
          AB 121 (Dickinson)
          As Amended  April 15, 2013
          Majority vote 

           LOCAL GOVERNMENT    7-2                                         
           
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          |Ayes:|Achadjian, Levine, Alejo, |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Gordon, Mullin, Frazier   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Melendez, Waldron         |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Provides an exemption from current law governing the  
          disposition of county property to allow Sacramento County to  
          sell or lease its property on the former Mather Air Force Base  
          or McClellan Air Force Base under specified conditions.   
          Specifically,  this bill  :  

          1)Allows the Sacramento County Board of Supervisors (Board), by  
            a four-fifths vote of the board, to sell, or enter into a  
            lease, concession, or managerial contract involving a  
            specified area of county property that the county has acquired  
            from the federal government due to the closure of Mather Air  
            Force Base (AFB) or McClellan AFB, without otherwise complying  
            with current law governing the disposition of county property.

          2)Requires the Board to take action as specified above only if  
            the following conditions are met, or if the Board makes a  
            finding in a noticed public hearing that the following  
            conditions were met at the time the property was acquired from  
            the federal government:

             a)   Reuse of the property is governed solely by the county;

             b)   The county has prepared and adopted a general or  
               specific plan pursuant to current law, as specified, and  
               has adopted a zoning ordinance for the area, and the  
               proposed use is consistent with that general or specific  
               plan and the zoning ordinance;








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             c)   The airport land use commission has prepared and adopted  
               a comprehensive airport land use plan for the area pursuant  
               to current law, as specified, and the proposed use is  
               consistent with that plan;

             d)   The county has complied with current law governing the  
               disposition of surplus land and the conformity of real  
               property acquisition or disposition with its general plan  
               with regard to the property, as specified; and,

             e)   The county has given notice in a regularly-published  
               newspaper, as specified, and posted the notice in the  
               office of the county clerk.  The notice shall specify the  
               date that the Board determines that any of the affected  
               property shall be subject to this bill, and shall include  
               all of the following:

               i)     A description of the property proposed to be sold,  
                 leased, or subject to a concession or managerial contract  
                 pursuant to this bill;

               ii)    The proposed terms of the sale, lease, concession,  
                 or managerial contract;

               iii)   The location where offers will be accepted and  
                 executed; and,

               iv)    The telephone number and address of the county  
                 officer responsible for executing the sale, lease,  
                 concession, or managerial contract.

          3)Provides that this bill shall not be construed to release  
            Sacramento County from complying with the provisions in  
            current law governing the disposition of real property by  
            successor agencies to redevelopment agencies, as specified, if  
            the property is located in a former redevelopment area.

          4)Finds and declares that a special law is necessary and that a  
            general law cannot be made applicable within the meaning of  
            Section 16 of Article IV of the California Constitution  
            because of the unique needs of the County of Sacramento  
            relative to the disposition of the property acquired by the  
            county from the federal government pursuant to the closure of  








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            Mather AFB and McClellan AFB.

           EXISTING LAW  :

          1)Prescribes the procedures that counties must follow when  
            leasing or selling real property.

          2)Requires the county board of supervisors, before ordering the  
            sale or lease of any property, in a regular open meeting, by a  
            two-thirds vote of all its members, to adopt a resolution,  
            declaring its intention to sell the property, or a resolution  
            declaring its intention to lease it, as the case may be. The  
            resolution shall describe the property proposed to be sold, or  
            leased, in a manner as to identify it and shall specify the  
            minimum price, or rental, and the terms upon which it will be  
            sold, or leased, and shall fix a time, not less than three  
            weeks thereafter for a public meeting of the board of  
            supervisors to be held at its regular place of meeting, at  
            which sealed proposals to purchase or lease will be received  
            and considered.

          3)Requires, at the time and place fixed in the resolution for  
            the meeting of the board of supervisors, all sealed proposals  
            which have been received to, in public session, be opened,  
            examined, and declared by the board.  Of the proposals  
            submitted which conform to all terms and conditions specified  
            in the resolution of intention to sell or to lease and which  
            are made by responsible bidders, the proposal which is the  
            highest shall be finally accepted, unless a higher oral bid is  
            accepted or the board rejects all bids.

          4)Provides several limited exemptions to these procedures for a  
            variety of public purposes.

           FISCAL EFFECT  :  None

           COMMENTS  :  This bill allows Sacramento County to sell or lease  
          real property on the former Mather AFB or McClellan AFB without  
          having to follow all of the requirements in current law  
          governing the disposition of county property.  According to the  
          author, "Mather and McClellan were designated as redevelopment  
          areas and the tools that came with redevelopment were  
          advantageous for the County and a number of successful property  
          sales were accomplished via the Sacramento Housing and  








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          Redevelopment Agency (SHRA).  Over 200 acres with 2.5 million  
          square feet of Class A office space was developed in the Mather  
          Commerce Center with the assistance of SHRA.  Redevelopment is  
          no longer available for the county to use in the continued  
          development of Mather and McClellan.

          "Without this exemption (that AB 121 provides), the County would  
          be required to sell to the highest bidder, regardless of how the  
          bidder's long-term plans for the site conflict with the County,  
          and undertake Requests for Proposals (RFPs), a time consuming  
          and labor intensive practice."  This bill is sponsored by the  
          Sacramento County Board of Supervisors.

          Current law requires counties to follow specified procedures  
          when disposing of surplus property.  These requirements are in  
          place to provide transparency and protect the public's tax  
          dollars, and include a two-thirds vote of the county board of  
          supervisors, advance public notice and a public hearing, minimum  
          sale price, sale terms, and a bid process that can be observed  
          by the public.  However, these procedures are lengthy and the  
          required competitive sealed-bid process, which is open to  
          anyone, can run counter to a county's intent for the property's  
          highest and best use, the author contends.  

          Redeveloping former military bases poses unique challenges.   
          Both Mather and McClellan are designated Superfund sites, with a  
          variety of contaminants and other hazards that require  
          remediation and a developer with the expertise and resources to  
          handle such complex work.  The competitive bid process requires  
          the county to accept the highest responsible bidder, regardless  
          of that contractor's track record in redeveloping brownfield  
          sites like former AFBs.  

          This bill re-enacts an exemption that was originally enacted in  
          1997 and expired January 1, 2011.  According to the author, this  
          exemption was instrumental in a public/private sales contract  
          for more than 800 acres of property in the southeast corner of  
          Mather in 2010.  The purchase agreement was originally for 639  
          acres, and was recently amended to add additional acreage for  
          opportunities.  The exemption was used as the legal basis to  
          contract with the developer, which will master plan the 800  
          acres as a mixed use development that is expected to generate  
          3,600 construction jobs and 3,000 permanent jobs.  









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          Sacramento County expects to rely on the exemption proposed in  
          this bill to develop areas at Mather that were adopted as part  
          of Sacramento County's Mather Field Specific Plan in 1997.  The  
          sponsor reports that the exact development will depend on many  
          factors, including the market, and that the primary objective of  
          a 357-acre airport commercial area is to create an airport  
          business park complex that is oriented to air cargo, aircraft  
          maintenance, general aviation and airport support uses.  This  
          area is adjacent to the Mather Airport runway, one of the  
          largest runways in the state, which makes it attractive for  
          related commercial development and job creation.   Development  
          could include aircraft maintenance facilities, facilities for  
          manufacturing small- to medium-sized aircraft, aircraft sales,  
          aircraft storage, public sector and private industrial and  
          distribution centers, and facilities for aerial photography and  
          survey companies.  The primary objective of an 89-acre adjacent  
          commercial development area would consist of facilities in  
          support of the airport development as well as general commercial  
          facilities, such as food and service industries and limited  
          retail facilities.

          In 2012, a similar bill, SB 1546 (Cannella), was introduced  
          allowing a county that owns real property on a converted  
          military base to sell that real property or any interest therein  
          in the manner and upon the terms and conditions approved by the  
          board of supervisors without complying with state laws governing  
          the sale of county-owned real property, upon a finding that the  
          sale is in the public interest.  SB 1546 died in the Senate  
          Governance and Finance Committee.

          Support arguments:  "Under AB 121, the County would continue to  
          comply with all the original conditions of the exemption, such  
          as the requirement that the Sacramento County Board of  
          Supervisors take action at a noticed public hearing.  The  
          authority for the County to continue to directly negotiate with  
          interested developers in AB 121 is critical to revitalizing  
          these two important economic assets in our region and additional  
          time is required." 

          Opposition arguments:  Opponents could argue that the  
          competitive bid process is the most effective method to garner  
          the highest price for public lands and, thus, the best  
          protection for taxpayer dollars.









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          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958 


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