BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 649
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Ashburn
                                                         VERSION: 4/2/09
          Analysis by: Mark Stivers                      FISCAL:  yes
          Hearing date: April 28, 2009








          SUBJECT:

          Transfer of Caltrans property to the East Kern Airport District 

          DESCRIPTION:

          This bill requires the Department of Transportation (Caltrans)  
          to transfer ownership of 577 acres known as Site A of the Mojave  
          Bypass property in Kern County to the East Kern Airport District  
          for open-space purposes.

          ANALYSIS:

          Current law identifies the California state highway system  
          through a description of segments of the state's regional and  
          interregional roads.  Caltrans purchases property as needed to  
          complete the state highway system.

          Under current law, whenever Caltrans determines that a property  
          is unneeded, it may sell or exchange the property upon terms and  
          conditions established by the California Transportation  
          Commission (CTC).  Generally, Caltrans must first offer surplus  
          property successively to other state agencies, then to local  
          government agencies, and finally to the public for sale.  The  
          CTC has adopted a policy requiring that all properties be sold  
          at fair market value.  

           This bill  requires Caltrans to transfer ownership of 577 acres  
          known as Site A of the Mojave Bypass property in Kern County to  
          the East Kern Airport District for open-space purposes.
          
          COMMENTS:





          SB 649 (ASHBURN)                                          Page 2

                                                                       


           1.Purpose of the bill  .  The East Kern Airport District (EKAD)  
            operates the Mojave Air and Space Port, the nation's first  
            inland spaceport.  According to the author, EKAD is in need of  
            open-space land at the end of its primary departure runway in  
            order to ensure the safety of the aircraft and the public,  
            reduce encroachment, and sustain the long term economic  
            viability of the spaceport.  

            CalTrans owns three properties adjacent to the airport, known  
            as Site A, Site B, and Site C, that were used to provide dirt  
            for the Mojave bypass project.  Caltrans is required to  
            revegetate these properties, but the work has not yet been  
            completed.  On three occasions dust events originating on Site  
            A have forced closure of two runways.  More ominously, three  
            people lost their lives on the Mojave bypass last year when  
            dust from Site C reduced visibility to zero.

            In exchange for ownership, EKAD is prepared to complete the  
            revegetation work on Site A.  By transferring ownership and  
            the remediation responsibility to EKAD, this bill will save  
            the state short-term costs related to the remediation, as well  
            as considerable long-term financial and legal exposure that  
            may arise from future dust storms.  

           2.An uncompleted deal  .  According to Caltrans, it and EKAD  
            previously discussed transferring the land in exchange for  
            EKAD completing the revegetation work.  The deal was not  
            completed, and Caltrans understood that EKAD did not have  
            sufficient funding for the work.  Since then, Caltrans has  
            advanced funding to the 2009-2010 fiscal year to complete the  
            revegetation.  To the extent that Caltrans will have the  
            necessary funding in place soon, it is not clear that the  
            exchange is needed to complete the revegetation, and in fact a  
            transfer could delay the work.  That said, there seems to be  
            an interest on the part of both parties to transfer the land  
            ultimately to EKAD.  
           
          3.Transfer for less than market value  .  CTC policy requires  
            Caltrans to sell surplus properties at fair market value.   
            This bill implies that Caltrans shall transfer Site A at no  
            cost.  To the extent that EKAD does assume responsibility for  
            some or all of the revegetation work, it is not clear how the  
            cost of this work compares to the value of the land.  By  
            requiring a no-cost transfer, it is possible that Caltrans  
            would forgo a significant amount of money that could go  
            towards other highway projects.  The committee may wish to  




          SB 649 (ASHBURN)                                          Page 3

                                                                       


            consider whether this property should be sold at fair market  
            value or at no-cost.
          
           4.Highway 14 right-of-way  .  From the map provided by the  
            sponsor, it appears that State Route 14 crosses Site A.  If  
            the property is transferred, Caltrans presumably will need to  
            maintain ownership of the right-of-way.  The bill language  
            will need to reflect this.  
          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     April 22, 2009)

               SUPPORT:  East Kern Airport District (Sponsor)
          
               OPPOSED:  None received.