BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 649
                                                                  Page  1

          Date of Hearing:   June 22, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                     SB 649 (Ashburn) - As Amended:  May 4, 2009

           SENATE VOTE :  39-0
           
          SUBJECT  :  East Kern Airport District

          SUMMARY  :  Requires the California Department of Transportation  
          (Caltrans), by June 30, 2010, to transfer specific property, at  
          fair market value, in Kern County to the East Kern Airport  
          District (EKAD) for open-space purposes.  

           EXISTING LAW  :

          1)Allows Caltrans to acquire any real property that it considers  
            necessary for state highway purposes.  

          2)Allows Caltrans, whenever it determines that any real property  
            acquired by the state for highway purposes is no longer  
            necessary for those purposes, to sell or exchange it in the  
            manner and upon terms, standards, and conditions established  
            by the California Transportation Commission (CTC).  

          3)Requires Caltrans, to the greatest extent possible, to offer  
            to sell or exchange excess real property within one year from  
            the date that it determines the property to be excess.  

          4)Requires, generally, state and local agencies, prior to  
            disposing of surplus lands, first to offer property for sale  
            or lease to local public agencies, housing authorities, or  
            redevelopment agencies within whose jurisdiction the property  
            is located.  Requires Caltrans to give priority first to  
            entities agreeing to use the land for low- or moderate-income  
            housing, then to entities for open-space purposes, school  
            facilities construction, enterprise zone purposes, and infill  
            opportunities, in that order. 

           FISCAL EFFECT  :  According to Caltrans, Site A is about 507  
          acres, worth between $2,500 to $3,000 per acre (for a total of  
          between $1.2 million and $1.5 million); the potential exists for  
          the total fair market value to be partially offset by work to  
          fence and re-vegetate the acreage, currently planned for  








                                                                  SB 649
                                                                  Page  2

          Caltrans to do, that could, instead, be done by the airport.  

           COMMENTS  :  EKAD operates the Mojave Air and Space Port, the  
          nation's first inland spaceport.  EKAD is seeking ownership of  
          property, currently owned by Caltrans, that is located at the  
          end of EKAD's primary runway.  According to EKAD, it is seeking  
          ownership of the property to reduce encroachment near its runway  
          and to curb dust events that have, in the past, forced closure  
          of runways.  

          Caltrans owns three properties in the area (referred to as Sites  
          A, B, and C) and has reportedly used them for pull dirt for  
          construction of the Mojave Bypass project.  Caltrans is  
          currently in the process of planting vegetation on the  
          properties to stabilize the dirt but has been slowed in its  
          progress due to budget constraints.  In the meantime, EKAD  
          reports that numerous dust events, due to unsettled dirt on  
          Caltrans' properties, have left piles of dirt on airport  
          property, resulted in forced closure of the airport's runways,  
          and even caused fatal accidents on State Route (SR) 58.  

          Negotiations between EKAD and Caltrans over property around the  
          airport have been going on for years but had stalled.  The  
          author has introduced this bill to re-ignite the negotiations  
          and bring closure to them over one particular parcel of  
          property, Site A, by requiring the transfer of the property, at  
          fair market value, by June 30, 2010.  According to the author,  
          EKAD is prepared to conduct all necessary remediation efforts on  
          this parcel.  The author argues that Caltrans has failed in its  
          efforts (to stabilize the dirt via re-vegetation) and that the  
          local officials can save the state short-term re-vegetation  
          costs as well as long-term financial and legal exposure from  
          liability arising from dust events.  EKAD will reportedly seek  
          ownership of Site C once Caltrans' current re-vegetation efforts  
          are successful.  (Although EKAD apparently has the means to  
          remediate Site A, Site C is beyond its ability to fix.)  

          According to Caltrans, its efforts to re-vegetate Site A were  
          generally successful and little additional work needs to be  
          completed before its obligations to stabilize the property are  
          met.  Caltrans has approval to proceed with a vegetation project  
          for this site.  That project is expected to be advertised in  
          July.  Simultaneously, Caltrans is currently proceeding to  
          declare Site A surplus so that it can be offered for sale to  
          EKAD, at fair market value.  








                                                                  SB 649
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          Technically, this bill is not necessary because Caltrans has the  
          authority to sell the property to EKAD once the property is  
          declared surplus.  Furthermore, there is no sanction or remedy  
          in the bill should negotiations not become final by the due date  
          set forth in the bill, June 30, 2010.  The author contends,  
          however, that the bill is necessary to keep both parties on  
          track to complete final transfer of the property in a timely  
          manner.   

           SUPPORT / OPPOSITION  :

           Support

           None on file

           Opposition 
           
          None on file

           
          Analysis Prepared by  :    Janet Dawson / TRANS. / (916) 319-2093