BILL ANALYSIS
SB 136
Page 1
SENATE THIRD READING
SB 136 (Huff)
As Amended June 23, 2009
Majority vote
SENATE VOTE :36-0
BUSINESS & PROFESSIONS 10-0 APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Conway, Ammiano, |
| |Conway, Eng, Hernandez, | |Charles Calderon, Coto, |
| |Niello, John A. Perez, | |Davis, Duvall, Fuentes, |
| |Ruskin, Smyth, Monning | |Hall, Harkey, Miller, |
| | | |John A. Perez, Skinner, |
| | | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Hill |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes the Department of General Services (DGS) to
dispose of all or any portion of three specific parcels of state
owned real property. Specifically, this bill authorizes DGS to
dispose of all or any portion of the following three specific
parcels of state owned real property:
1)Parcel #1, consisting of approximately 2.76 acres, known as
the Harts Mills Forest Fire Station (Old), located at 9476
Oro-Quincy Highway, in Berry Creek, Butte County.
2)Parcel #2, consisting of approximately 47 acres, known as the
Mendocino Ranger Station Excess Land, located at 17501 North
Highway 101, in Willits, Mendocino County.
3)Parcel #3, consisting of an approximately 85 acres, known as
the East Campus of the Agnews Developmental Center in Santa
Clara County, and specifies the resolution or mitigation of
any disputes or claims related to the land lease agreement and
the energy purchase agreement between the state and Agnews
Developmental Center Cogeneration Facility, dated December 31,
1990, shall be a cost of sale of all of the property
authorized to be disposed of at the East Campus.
SB 136
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FISCAL EFFECT : According to the Assembly Appropriations
Committee, DGS estimates one-time revenue of about $60 million
from disposition of the three properties, with almost this
entire amount attributed to the Agnew property.
COMMENTS : In the early 1990s, DGS undertook a program to save
money and make government more accessible to citizens by
rearranging state offices in major urban centers. The plan also
envisioned consolidation in numerous other California
communities where the state leased dispersed office space.
Based on a series of regional plans and facility studies, DGS'
efforts led to office consolidation projects (completed or in
the process of development) in major metropolitan areas (e.g.,
San Francisco, Oakland, Los Angeles, Riverside/San Bernardino,
Long Beach, San Diego and Sacramento).
Under the provisions of Proposition 60A, the proceeds of the
sale of surplus property must be used to pay the holders of the
state's deficit reduction bonds. These payments are intended to
accelerate the redemption of the state's debt, and reduce future
General Fund payments to the bondholders.
The ability to get excess properties declared surplus by the
Legislature has been impeded these past few years by a
disagreement between the Legislature and the Administration
regarding the removal of a statutory exemption for the state's
surplus properties from the requirements of the California
Environmental Quality Act (CEQA). This disagreement has at
least for now been resolved with enactment of AB 8xx (Nestande),
Chapter 6 of 2009-10 Second Extraordinary Session, that places
within Government Code Section 11011 an ongoing CEQA exemption
for all properties declared surplus by the Legislature.
Background - Agnews Developmental Center: In 1876, the state
purchased 323.5 acres of farmland from Abraham Agnews. Agnews
State Hospital was established in 1885 as a neuropsychiatric
institution for the care and treatment of persons with mental
illnesses. This facility became known as the West Campus.
In 1926, the State acquired an additional 424 acres (known as
the East Campus), which was located one and one-half mile from
the main facility (which became the West Campus). Approximately
337 acres of the original East Campus has been sold or
transferred. Most significant, was the sale of approximately
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140 acres to Cisco Systems (Cisco) in the mid-1990's. Also, in
the mid-1990's the West Campus was closed and declared surplus.
This property was sold in stages and became the corporate
headquarters for Sun Micro Systems, as well as a new mixed-use
community known as the Rivermark Development.
The Agnews East currently resides on the remaining 87 acres on
the north edge of the City of San Jose, in the heart of Silicon
Valley. As of April 2009, under the closure plan, the
Department of Developmental Services (DDS) has transferred all
the clients to community based housing facilities or to other
DDS facilities. There are 51 buildings on the campus,
comprising approximately 692,800 gross square feet of space.
A third party owned cogeneration plant provides thermal and
electrical energy to Agnews and markets electricity to PG&E.
The cogeneration agreements expire in the year 2020.
DGS is the lead agency in facilitating the future use of the
real estate, existing leases, structures and infrastructure of
the campus, including disposition of the cogeneration plant.
DDS has responsibility for maintaining the property until DGS
transfers or otherwise disposes of the asset.
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301
FN: 0002311