BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 273 Hearing Date: 5/12/2015
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|Author: |Hueso |
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|Version: |4/27/2015 |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: State real property: surplus.
DIGEST: This bill authorizes the Department of General
Services (DGS) to dispose of two parcels deemed surplus - a
Department of Conservation field office in Coalinga (Fresno
County) and a Department of Forestry conservation camp in
Whiskeytown (Shasta County).
ANALYSIS:
Existing law:
1)Authorizes DGS, subject to legislative approval, to sell,
lease, exchange, or transfer various specified properties for
current market value, or upon such other terms and conditions
that DGS determines are in the best interests of the state.
2)Establishes criteria for state agencies to use in determining
and reporting excess lands. A state agency must report land
as surplus that is:
a) Not currently utilized, or is underutilized, for any
existing or ongoing programs;
b) Land for which the agency cannot identify any specific
utilization relative to future needs; and,
c) Land not identified by the state agency within its
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master plan for facility development.
3)Requires DGS to dispose of surplus state real property in a
specified manner, and prescribes the priority of disposition
of the property before DGS may offer it for sale to private
entities or individuals.
4)Exempts the sale of surplus property sold "as is" from
designated provisions of the California Environmental Quality
Act (CEQA). However, the buyer or transferee of a parcel is
subject to CEQA as well as any local governmental entitlement
or land use approval requirements.
5)Authorizes DGS to sell surplus real property to a local agency
or to a nonprofit affordable housing sponsor for affordable
housing projects at a sales price less than fair market value
if DGS determines that such a discount will enable the
provision of housing for persons and families of low or
moderate income.
6)Requires, unless otherwise specified by law, that the proceeds
from the sale of surplus state property be used to pay the
principal and interest on the Economic Recovery Bond Act of
2004.
This bill:
1)Authorizes DGS to sell, exchange, sell combined with an
exchange, or lease for fair market value, upon terms and
conditions deemed to be in the best interests of the state the
following real property:
a) Parcel 1, consisting of 0.17 acres and improvements,
known as the Department of Conservation field office
located at 466 North Fifth Street, in Coalinga, Fresno
County.
b) Parcel 2, consisting of approximately 29.93 acres and
improvements, known as the Department of Forestry Crystal
Creek Conservation Camp located at 2242 Highway 299 West,
in Whiskeytown, Shasta County.
2)Requires that, to the extent that bonds issued by the State
Public Works Board involve the property to be sold pursuant to
this bill, all issuer and trustee related costs associated
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with the review of any proposed sale, together with the costs
related to the defeasance or retirement of any bonds, which
may include the cost of nationally recognized bond counsel,
shall be paid from the proceeds of any sale or lease
authorized by this bill's provisions.
3)Contains an urgency clause to take effect immediately.
Background
This is the annual DGS sponsored legislation for the disposal of
surplus State real property. State law requires state agencies
to identify real properties that are excess to their needs.
Legislative authorization is needed to declare real properties
as surplus and to authorize their disposal by DGS.
All proceeds generated from the sale of surplus properties are
deposited into the Deficit Recovery Bond Retirement Sinking Fund
Subaccount to pay the principal and interest on bonds issued
pursuant to the 2004 Economic Recovery Bond Act. Once the
principal and interest on those bonds are fully paid, the
proceeds from the sale of surplus state property are deposited
into the Special Fund for Economic Uncertainties, or any
successor fund.
DGS' Real Estate Services Division (RESD) is responsible for the
disposition of state surplus real property assets. RESD is also
responsible for determining the present and future space needs
of state agencies, administering the sales and leasing of
state-owned surplus property, and leasing privately-owned space
for state agencies. RESD also assists state landholding
agencies in making real estate decisions regarding their
properties.
DGS reports that the Department of Conservation property in
Coalinga was originally purchased in 1918 as a single story
1,670 square foot home on an approximately 0.17 acre lot. Today
it is used as office space yet despite upgrades over the years
it no longer meets program needs.
DGS notes that the Department of Forestry conservation camp in
Whiskeytown consists of approximately 29.93 acres which were
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acquired in the 1950's. Numerous fire support structures were
added to the property shortly after acquisition but the land and
structures are currently undersized and no longer meet program
needs. The Department of Forestry discontinued use of the site
several years ago which eventually resulted in structural damage
to the facilities due to a lack of security at the site. DGS
claims that until disposed of, this particular property will
continue to pose a liability to the state.
Staff Comments. As this bill moves through the legislative
process the author may wish to consider the following technical
amendments:
1)Amendment #1: on page 2, line 13, strike " Highway 2999 " and
insert "Highway 299"
2)Amendment #2: on page 2, line 14, strike " Whiskytown " and
insert "Whiskeytown"
Prior/Related Legislation
SB 536 (Roth, 2015) authorizes DGS, with the approval of the
Adjutant General, to sell seven specified state armory
properties that are no longer considered needed by the
California Military Department. (Pending in Senate
Appropriations Committee)
AB 2174 (Committee on Accountability and Administrative Review,
Chapter 337, Statutes of 2014) authorized DGS to dispose of
certain state surplus property, subject to specified conditions.
AB 826 (Jones-Sawyer, Chapter 505, Statutes of 2013) authorized
DGS to dispose of 8 specified parcels of state property.
SB 1580 (Committee on Governmental Organization, Chapter 798,
Statutes of 2012) authorized DGS, with the approval of the
Adjutant General, to sell four specified armories. The bill
also required the proceeds from the sale of the armories to be
deposited in the Armory Fund. Additionally, the bill required
that DGS be reimbursed for any reasonable costs or expenses
incurred in conducting a transaction involving those armories.
Furthermore, the bill authorized DGS to sell 3 additional
parcels of state property, as specified.
AB 1272 (Butler, Chapter 178, Statutes of 2011) authorized DGS
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to dispose of certain state office buildings located in
Hollywood, Los Angeles, and Oroville. Other properties included
the Hidden Lakes Estates Parcel near Millerton Lake Recreation
Area, the Digger Butte Lookout near Red Bluff, and the
Campbellville Lookout, located near Chico.
SB 1167 (Cogdill, Chapter 327, Statutes of 2010) authorized DGS
to dispose of all or any portion of two parcels of real property
- the Veterinary Laboratory for the Department of Food and
Agriculture located in Fresno and the Department of Motor
Vehicles field office located in Roseville, Placer County.
AB 2279 (Evans, Chapter 595, Statutes of 2010) authorized DGS to
sell or exchange, at fair market value based upon an appraisal
approved by DGS, all or part of a specified parcel of state
property only to the County of Napa upon terms, conditions,
reservations, and exceptions that DGS determines are in the best
interest of the state, by January 1, 2015.
SB 136 (Huff, Chapter 166, Statutes of 2009) authorized DGS to
dispose of three specified parcels of real property pursuant to
certain provisions.
ABX2-8 (Nestande, Chapter 6, Statutes of 2009-10, Second
Extraordinary Session) exempted the sale of surplus state real
property made on an "as is" basis from designated provisions of
CEQA. The bill also exempted from those provisions of CEQA the
execution of the purchase and sale agreement or the exchange
agreement for surplus state real property if the disposition is
not made on an "as is" basis and the close of escrow is
contingent on a specified requirement or compliance with CEQA.
SCA 18 (Johnson, Chapter 103, Statutes of 2004) required, among
other things, that the proceeds from the sale of surplus state
real property be used to pay the principal and interest on the
Economic Recovery Bond Act of 2004. The provisions relating to
state property were adopted by the electorate in Proposition 60A
of 2004.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.: Yes Local: No
SUPPORT:
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Department of General Services
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to DGS, the properties
contained in this bill have been identified by state agencies as
no longer serving a programmatic need. DGS points out that
"while these properties remain under state ownership, they may
have additional issues, such as non-compliance with the
Americans with Disabilities Act, pose security concerns, or cost
the state money to maintain and secure while vacant. In
addition there could be significant costs associated with making
these properties compliant with current building standards."