BILL ANALYSIS Ó
SB 695
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Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
SB 695 (Wright) - As Amended: June 27, 2013
SENATE VOTE : 34-0
SUBJECT : California Science Center: parking facilities.
SUMMARY : This bill prohibits the California Science Center
(CSC) from delegating the power to manage and operate CSC's
parking facilities to any other party, and prohibits CSC or the
director of Department of General Services (DGS) from approving
a sale or lease of more than 10 years of CSC's parking
facilities without legislative approval, as specified.
Specifically, this bill :
1. Prohibits CSC from delegating operation of CSC's parking
facilities to any other party.
2. Requires CSC to set the minimum and maximum parking fees
that may be charged at Exposition Park.
3. Prohibits CSC or the director of DGS from approving a
sale or lease of more than 10 years of CSC's parking
facilities without legislative approval, as specified.
a. Removes from legislative approval leases of
more than 10 years, if the terms of the lease require
the lessee to preform substantial capital
improvements, as specified.
4. Makes technical changes.
5. Adds an urgency clause.
EXISTING LAW :
1. Creates the Sixth District Agricultural Association,
which is known as CSC.
2. Requires CSC to manage or operate its parking facilities
in a manner that preserves and protects the interests of
itself and the California African-American Museum and
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recognizes the cultural and educational character of
Exposition Park.
3. Specifies that all revenues received by CSC from its
parking facilities shall be deposited in the Exposition
Park Improvement Fund (Fund), and that the funds may only
be used, upon appropriation by the Legislature, for
improvements to Exposition Park.
FISCAL EFFECT : Unknown. This bill has been keyed fiscal by
Legislative Counsel.
COMMENTS : CSC operates Exposition Park, a 160-acre tract south
of Downtown Los Angeles that is owned by the state. CSC has
leased portions of the park to the Los Angeles Memorial Coliseum
Commission (Commission). The members of the Commission are the
City of Los Angeles, the County of Los Angeles, and CSC. The
Commission is authorized to operate and manage facilities within
Exposition Park, including the Los Angeles Memorial Coliseum
(Coliseum).
In 2008, the Commission and the University of Southern
California (USC) entered into a lease that authorized USC to use
the Coliseum during football season. Under the lease, the
Commission is the landlord, and in that capacity, the Commission
agreed to make needed repairs and specific capital improvements.
In response to concerns that the Commission could not complete
necessary repairs and capital improvements to the Coliseum, CSC
and USC entered into a "Non-Disturbance Agreement" in 2012, in
which CSC agreed that, if the Commission's interest is
"terminated by CSC or by operation of law prior to the
termination of the lease," CSC would assume the rights and
responsibilities of the Commission under its lease with USC,
including the responsibility to perform the capital
improvements.
In December 2012, CSC and USC negotiated a tentative, revised
Non-Disturbance Agreement. A significant difference is that
USC, not CSC, would assume the obligation to perform capital
improvements to the Coliseum. The tentative agreement also
contemplates an agreement under which USC would manage specified
CSC parking lots. Under this tentative agreement, USC would
have rights to a portion of the revenue earned from the parking
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lots, which are located on state property.
According to the author's office, CSC has no statutory authority
to delegate control of state parking lots to USC. The author's
office states that Legislative Counsel has opined that the
prohibitions against delegation of power to USC to operate CSC
parking lots are declaratory of existing law, because state
agencies are required to exercise power in accordance with the
manner set by statute. If that statute requires the exercise of
discretion, as is the case regarding CSC management of parking
lots and revenues, the power is in the nature of a public trust
and may not be delegated by the agency without statutory
authorization.
The author's office also notes that existing law expressly
requires CSC to deposit all revenues received from parking
facilities into the Fund, and that these monies may only be
used, upon appropriation by the Legislature, for improvements to
Exposition Park. The author's office states that this clearly
demonstrates CSC is required by law to exercise discretion on
how to accomplish the statutory mandates. Thus, this public
trust obligation cannot be delegated to USC.
As part of the proposed lease agreement from May 2013, USC will
invest a minimum of $70 million in the Coliseum to complete
repairs and improvements. In return, USC will receive the right
to purchase special event parking in Exposition Park on days
when events are being held in the Coliseum or Sports Arena. USC
acknowledges the concerns raised by CSC and others regarding the
lease and has stated that the current process negotiations
between the parties should be allowed to continue to work out
these concerns. Furthermore, USC expressed concern that this
bill could establish precedent with respect to future state
lease agreements.
On June 25, 2013 The governing board of CSC voted 7 to 0 to
adopt the basic terms for the lease agreement that extends to
USC most of the benefits of owning the Coliseum. The lease goes
into effective after the state Department of General Services
and the California Natural Resources Agency approves a final
lease and the CSC board ratifies it. The package could require
the state to reimburse two public museums, CSC and the
Californian African American Museum, for money they might lose
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because the lease will permit limited use of the parking lots at
a lower price for nine to 10 days a year. Governor Brown's
administration sent a letter to the museums promising to restore
lost parking funds during the coming two years.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
University of Southern California
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084