BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1757 (Monning)
Hearing Date: 08/12/2010 Amended: 07/15/2010
Consultant: Maureen Ortiz Policy Vote: VA 4-0
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BILL SUMMARY: AB 1757 authorizes the design and construction
of a state owned veterans cemetery to be located on the site of
the former Fort Ord in Monterey County.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Cemetery design $800
Special*
*California Central Coast State Veterans Cemetery at Fort Ord
Endowment Fund
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STAFF COMMENTS: SUSPENSE FILE.
The current cost estimate to complete preliminary plans and
working drawings, is approximately $800,000. These funds would
be transferred from the Endowment Fund, and any costs for the
design activities would subsequently be reimbursed by the
federal government once the grant is awarded. Additionally, all
costs associated with the design, construction and equipping of
the veterans cemetery will be reimbursed through the federal
grant program.
AB 1757 requires the Department of Veterans Affairs, in
voluntary cooperation with the County of Monterey, the City of
Seaside, the Fort Ord Reuse Authority, and surrounding counties,
cities, and local agencies, to design, develop, and construct
the state-owned and state-operated veterans cemetery at Ford
Ord.
Specifically, AB 1757 requires the cemetery to be built with the
"usual phases of a capital outlay project" which includes
studies, preliminary plans, working drawings including documents
necessary to put the construction phase out to bid, and
construction of the cemetery. This will allow the department to
proceed with all activities necessary to complete preliminary
plans and working drawings. The department will be prohibited
from advertising for construction bids until the Endowment Fund
has adequate principal to cover annual administrative and
oversight costs.
The bill requires the Controller, upon appropriation by the
Legislature, to transfer funds from the Endowment Fund to the
Operations Fund in the amount at least equal to the estimated
costs to complete preliminary plans and working drawings. The
Department would be authorized to proceed with all activities
necessary to support the submission of the grant application,
and upon certification of the grant award, to begin construction
and equipping the veterans cemetery.
AB 1757 requires the Secretary of the California Department of
Veterans Affairs to establish the California Central Coast
Veterans Cemetery Advisory Committee consisting of the following
persons, to be appointed by the Secretary:
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AB 1757 (Monning)
1)One representative from the County of Monterey, nominated by
the Board of Supervisors of the County of Monterey.
2)One representative from the City of Seaside, nominated by the
City Council of the City of Seaside.
3)One representative from the Fort Ord Reuse Authority.
4)Two members from the Fort Ord Veterans Cemetery Citizens
Advisory Committee.
5)At least two members from the department.
The bill requires the Department to seek the advice of the
Advisory Committee when considering significant changes in the
design of the veterans cemetery.
AB 3035 (Laird, Chapter 291, Statutes of 2006) established the
California Central Coast State Veterans Cemetery at Fort Ord
Endowment Fund for the receipt of donations of personal
property, including cash or other gifts, to be used for the
maintenance of the veterans' cemetery. AB 3035 provided that
moneys in the fund must first be invested with the goal of
achieving ongoing earnings sufficient to cover the estimated
annual oversight and maintenance costs for ten years once the
cemetery is completed. After determination that sufficient
funds have become available, that bill required the DVA to
submit a federal State Veterans' Cemetery Grant Program
application to the United States DVA for an amount representing
100% of the estimated costs for designing, developing,
constructing, and equipping the cemetery.
The military base at Fort Ord was established in 1917 and in
1940 was declared a permanent Army post. In 1991, Fort Ord was
announced for closure by the United States Base Realignment and
Closure Commission. Prior to its closure, the Fort Ord Reuse
Authority set aside 204 acres for the development of a Central
Coast Veterans' Cemetery.
Previous attempts at obtaining a national cemetery at the Fort
Ord location have failed because federal regulations prohibit
the development of a national veterans cemetery within 75 miles
of another national veterans cemetery. Fort Ord is located
within 75 miles of the San Joaquin Valley National Veterans'
Cemetery in Gustine. As an alternate to a national veterans
cemetery, the federal government will pay 100% of construction
costs for a state run cemetery, however, the state has the
continuing responsibility for paying the annual maintenance and
operation costs which were estimated at $500,000 per year.
Consequently, although the intent is for private donations to
fully fund the maintenance costs, there is no guarantee that
those costs will not ultimately fall upon the state and require
a General Fund appropriation in the future. There is currently
one other state veterans cemetery in California, located in
Redding.
AB 1757 will also authorize the use of any excess balances in
the Endowment Fund to be used, upon appropriation by the
Legislature, to establish monuments, memorials, and amenities.