BILL ANALYSIS Ó ----------------------------------------------------------------- | SENATE RULES COMMITTEE | SB 1027| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1027 Author: Nielsen (R), et al. Amended: 4/6/16 Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 3/30/16 AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SUBJECT: Parks: property transfer SOURCE: County of Tehama Evergreen Union School District DIGEST: This bill allows the County of Tehama to transfer property previously acquired with state bond funds. ANALYSIS: Existing law: 1)Generally prohibits public entities, including local governments, from acquiring parkland for non-park purposes unless substitute parkland or equivalent compensation is provided. 2)Authorizes the sale of general obligation bonds, as approved by voters in 1974 and 2000, for parks purposes. 3)Establishes the Roberti-Z'berg-Harris Urban Open-Space and SB 1027 Page 2 Recreation Program, which requires DPR to make annual grants to cities, counties, and districts for recreational purposes, open-space purposes, or both, on the basis of population and need. 4)Requires, pursuant to the 1974 and 2000 Bond Acts and the Roberti-Z'berg-Harris grant program, that grantees that receive bond funds: a) Agree to use the property only for the purposes for which the grant was made. b) Not make any other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. This bill allows the County of Tehama to transfer Noland Park to the Evergreen Union School District if the following three conditions are met: 1)The county and the district must enter into an agreement with DPR that transfers any obligations of the county under the 1974 Bond Act, Proposition 12, the Roberti-Z'berg-Harris program, and grants entered into under those laws. 2)The district ensures that the property is maintained and operated in perpetuity for park purposes. 3)The recorded instrument transferring title from the county to the district contains an express condition and covenant that the property shall be used in perpetuity as a public park Background California voters have approved several bond acts that provide funding for acquiring parkland. In June 1974, voters approved the State Beach, Park, Recreational, and Historical Facilities Bond Act of 1974. Among other provisions, the act provided $90 million for grants to cities and counties for the acquisition and development of parkland through a grant program administered by the state Department of Parks and Recreation (DPR). Subsequently, voters approved Proposition 12, the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, at the statewide primary election in March of 2000. Proposition 12 made funds available to local SB 1027 Page 3 governments for the Roberti-Z'berg-Harris Urban Open-Space and Recreation Program, which requires DPR to make annual grants to cities, counties, and districts for recreational purposes, open-space purposes, or both, on the basis of population and need. Both the 1974 Bond Act and Proposition 12, as well as the Robert-Z'berg-Harris program, require that grant recipients must agree to use the property only for the purposes for which the grant was made. The grantee cannot make any other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. If the use of the property changes or the property is sold upon approval by the Legislature, the grantee must either return the funds to the state or use replacement funds for a purpose that is consistent with the original grant. The replacement funds can equal the amount of the grant, the fair market value of the real property, or the proceeds from the sale of the property, whichever is greater. Bond-funded grant programs incorporate these requirements into their grant contracts. Since 2001, the Legislature has allowed several local governments to transfer park property acquired or developed with state bond funds to other public entities for uses other than parkland on the condition that the cities or entities provide replacement property. Noland Park. In 1979, Tehama County received a grant of $29,425 from the 1974 Bond Act to acquire and develop Noland Park. The county received a subsequent grant of $32,000 from the Roberti-Z'berg-Harris program, funded by Proposition 12, to remove and replace outdated playground equipment and make other improvements to play areas within the park. Noland Park is located directly between the elementary and middle schools for the Evergreen Union School District, and in 1993 the county leased the park to the district for 20 years. Under the lease, the school district was responsible for all maintenance and was allowed to make capital improvements to the site; in return, the school district received the first right to use the facilities and schedule activities. Accordingly, over the course of the lease the district developed the park through upgrades of fencing, sprinklers, a track and soccer field, spending more than $189,000 in improvements and an additional $152,000 in maintenance. Since the lease's expiration in 2013, it has been SB 1027 Page 4 renewed on an annual basis. Local officials want to transfer the park to the school district so the district can continue to invest in the property. Comments Purpose of the bill. Since 1993, the county and district have cooperated to improve Noland Park and ensure that nearby communities have access to safe and modern park facilities. The district has invested over $360,000 in improvements and maintenance expenditures, and in return, children at the adjacent schools have access to the park, while the general public continued to be able to access the facilities. The school district has identified over $340,000 in additional improvements it would like to undertake at the park in the next 20 years. Transferring ownership in the property would encourage the district to plan for and make longer term capital investments in the park, but state law only allows such a transfer to occur if the Legislature specifically authorizes it. SB 1027 provides the needed legislative authorization. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified4/18/16) County of Tehama (co-source) Evergreen Union School District (co-source) OPPOSITION: (Verified4/18/16) None received Prepared by:Anton Favorini-Csorba / GOV. & F. / (916) 651-4119 4/20/16 15:39:01 **** END **** SB 1027 Page 5