BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1006 (Buchanan)
          
          Hearing Date:  8/24/2009        Amended: 6/1/2009
          Consultant:  Bob Franzoia       Policy Vote: G O 10-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1006 would require the Department of General  
          Services (DGS), when selecting locations for state owned or  
          lease buildings in excess of 10,000 square feet, to consider all  
          of the following:
          - The location of the community or population served.
          - The availability and proximity of transit services, including  
          regularly operated bus lines.
          - The residential location of the state workforce to be housed,  
          with the priority given to areas demonstrating the highest  
          reduction of miles traveled by the workforce.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Consideration of transit          $20         $40        
          $40General/
          services when locating                                  Special*
          state facilities

          * Service Revolving Fund (non governmental cost fund of working  
          capital and revolving funds used to record and report activities  
          from various sources; approximately 30 percent of the moneys in  
          this fund are federal with the remaining funds being General and  
          special and vary depending on the workload DGS undertakes for a  
          department or agency)
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.  General Fund costs are unknown and would  
          depend on how many location changes are done for departments or  
          agencies supported by the General Fund. 

          DGS enters into about 100 facility leases annually.  Generally,  
          1,000 square feet are considered necessary to house four to five  
          workers.  Thus, for a move requiring 10,000 square feet or more,  










          DGS would need to survey 40 to 50 workers, or more, on the  
          locations of their residences, their commuting patterns,  
          including miles traveled, work schedules, etc.  DGS would then  
          overlay that information with transit services and determine  
          appropriate locations to construct, purchase, or lease  
          facilities.  

          At this time, staff has been unable to identify with any  
          confidence the costs to develop the information necessary to  
          make the required planning decisions.  To provide some  
          perspective, if the workload to survey employees and analyze the  
          information required an average of two weeks of staff time (80  
          hours at $50 an hour), and assuming ten percent of the leases  
          annually are for more than 10,000 square feet, the annual costs  
          would average about $40,000 in general or special funds.  If  
          five of these leases were for General Fund departments, planning  
          costs would need to exceed $10,000 each to reach a fiscal impact  
          of $50,000.