BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                       SB 1119|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 1119
          Author:   Wolk (D), et al.
          Amended:  3/28/16  
          Vote:     27 

           SENATE GOVERNMENTAL ORG. COMMITTEE:  9-3, 4/12/16
           AYES:  Hall, Block, Galgiani, Glazer, Hernandez, Hill, Hueso,  
            Lara, McGuire
           NOES:  Berryhill, Gaines, Vidak
           NO VOTE RECORDED:  Runner

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/27/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Surplus state property:  Napa County Regional Park  
                     and Open Space District


          SOURCE:    County of Napa
          
          DIGEST:    This bill extends the sunset date, which expired on  
          January 1, 2015, to January 1, 2021, for the state to sell the  
          area known as the Skyline Park in the County of Napa.  This bill  
          also revises the current authorization for the state to sell the  
          Skyline Park from the County of Napa to the Napa County Regional  
          Park and Open Space District. 


          ANALYSIS:


          Existing law:








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          1)Authorizes the Director of the Department of General Services  
            (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 those terms,  
            conditions, reservations, and exceptions the director  
            determines are in the best interest of the state, by January  
            1, 2015, and subject to other requirements.


          2)Requires reimbursement of DGS for any cost or expense incurred  
            in the disposition of the property from the proceeds of the  
            disposition of the property.


          3)Requires the proceeds from this sale to be deposited in the  
            Deficit Recovery Bond Retirement Sinking Fund Subaccount until  
            the bonds associated with this subaccount are finally paid. 


          This bill:


          1)Extends the current sunset date, which expired on January 1,  
            2015, to January 1, 2021, for the state to sell, at fair  
            market value, the area known as the Skyline Park in the County  
            of Napa.


          2)Revises the current authorization for the state to sell the  
            Skyline Park from the County of Napa to the Napa County  
            Regional Park and Open Space District. 


          3)Revises the reference to the Deficit Recovery Bond Retirement  
            Sinking Fund Subaccount, given that the principal and interest  
            on the bonds has been provided and no more bonds are  
            outstanding.


          4)Directs, consistent with the California Constitution, that  
            proceeds be paid into the Special Fund for Economic  
            Uncertainties, which is continuously appropriated. 







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          Background


          Purpose of the bill.  According to the author, the bill "seeks  
          to extend the sunset date for the state to sell or exchange, at  
          fair market value, the area known as the Skyline Park to the  
          Napa County Regional Park and Open Space District.  Skyline  
          Wilderness Park has been operated as a public park for more than  
          three decades.  Several years ago, state law authorized the sale  
          of Skyline Park to Napa County so the land would be used as a  
          public park in perpetuity.  The three year authorization period  
          expired on January 1, 2015."


          The author further argues that, "an earlier effort by the County  
          of Napa to purchase the property did not succeed because the  
          County and the State could not agree to the fair market value  
          for the property in time.  This bill seeks to give the County of  
          Napa more time to continue negotiations for the sale of the  
          Park."





          The Skyline Wilderness Park.  The Skyline Wilderness Park is an  
          850-acre parcel public park located on the grounds of Napa State  
          Hospital in Napa County.  The Park includes 12 miles of hiking,  
          riding, and bicycling trails, a native plant garden, horse  
          arena, and an archery range. 


          According to the author, "the Skyline Wilderness Park is a  
          highly valuable public amenity, not only for recreation but also  
          to protect a pristine watershed and preserve a rich wildlife  
          habitat.  Additionally, this property was placed on the surplus  
          property list by the Department of Mental Health.  The  
          Department retains sufficient property near the present hospital  
          for any foreseeable expansion."


          Currently, the Napa County leases the Park from the State of  







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          California at $100 per year.  However, the park has in the past  
          been placed on a list of state surplus property.  The lease has  
          a term of 50 years, which expires in 2030.  


          Napa County has placed a  cent local tax on the November ballot  
          to raise funds for the purchase of the Park.  The sunset  
          extension allows time for a local vote and time to raise the  
          needed revenue. 


          Prior Legislation


          AB 2279 (Evans, Chapter 595, Statutes of 2010) authorized DGS to  
          sell or exchange, at no less than current fair market value, the  
          Skyline Park to the County of Napa by January 1, 2015, upon  
          terms and conditions DGS deems are in the best interest of the  
          state. 


          AB 600 (Hall, 2009) would have authorized DGS to lease  
          state-owned property (the Compton Armory, to the City of  
          Compton) at fair market value for a period not to exceed five  
          years, with an option to extend the least to 25 years.  (Vetoed  
          by Governor Schwarzenegger)


          SB 678 (Wiggins, 2007) would have authorized DGS to sell or  
          exchange at current fair market value, by January 1, 2010, to  
          the County of Napa, certain property located in the County of  
          Napa under specified conditions.  (Vetoed by Governor  
          Schwarzenegger)




          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, one-time  
          General Fund revenue gains, likely in the millions, related to  
          the sale of Napa State Hospital property at fair market value.  







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          (Special Fund for Economic Uncertainties)




          In addition, DGS administrative costs, potentially over  
          $100,000, related to the sale of the property.  All DGS costs  
          would be recovered from the proceeds of the property sale.  




          Also, potential foregone revenues, to the extent this bill  
          limits the sale to one entity for park or wilderness purposes,  
          thereby potentially depressing the appraised fair market value.




          Finally, potential future costs to purchase additional property  
          to accommodate the expansion needs of the Napa State Hospital,  
          which will not be known until after the completion of the  
          Department of State Hospitals facilities master planning  
          process.




          SUPPORT:   (Verified5/27/16)


          County of Napa (source)
          Napa County Regional Park and Open Space District


          OPPOSITION:   (Verified5/27/16)


          None received


          ARGUMENTS IN SUPPORT:     According to the Napa County Regional  
          Park and Open Space District, "the importance of the park to the  
          residents of Napa County cannot be overstated.  It is within a  







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          few minutes' drive for over 80 percent of the residents of Napa  
          County.  It provides an exceptional experience for hikers,  
          equestrians, mountain bicyclists and campers, and accommodates  
          an archery range, a disc golf course, a small horse arena, and a  
          native plant garden.  Our District and our community are  
          committed to raising the funds needed to acquire the park."


          Prepared by:Felipe Lopez / G.O. / (916) 651-1530
          5/28/16 16:57:31


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