BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  AB 
          324
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis


          AB 324  Author:  Buchanan
          As Amended:  June 22, 2011
          Hearing Date:  June 28, 2011
          Consultant:  Art Terzakis

                                     SUBJECT  
                                State Buildings

                                   DESCRIPTION
           
          AB 324 adds a new provision to the "State Building 
          Construction Act" that requires the Department of General 
          Services (DGS) to consider the proximity of the workforce, 
          the location of the community being served and the 
          availability of transit service when deciding where to 
          build or lease state office buildings.  Specifically, this 
          measure: 

          1.  Requires DGS, when selecting locations for the lease, 
            lease with the option to purchase, construction, or 
            purchase of a state building in excess of 10,000 square 
            feet, to consider all of the following factors:

                a. The location of the community or population served 
          by the building.
               
                b. The availability and proximity of transit service, 
              including regularly operated bus lines that are 
              operational at the time of occupancy. 

                c. The residential location of the state workforce to 
              be housed, with priority allowed to areas demonstrating 
              the highest reduction of miles traveled by the 
              workforce.

                                   EXISTING LAW





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           Existing law, the State Building Construction Act of 1955, 
          generally sets forth procedures for the acquisition and 
          construction of state buildings.  Existing law requires DGS 
          to prepare plans and specifications for any public building 
          constructed pursuant to the Act. 

          Existing law provides that the "Capitol Area Plan" is the 
          official state master plan for development in the central 
          City of Sacramento for the location of state buildings and 
          other improvements. The Plan serves as a guide for future 
          state policy in the locating of state buildings and other 
          facilities in the metropolitan area. The Capitol Area Plan 
          is a mixed-use plan for the management, development and 
          disposition of state-owned property located directly south 
          and east of the State Capitol and Capitol Park in the City 
          of Sacramento.

                                    BACKGROUND
           
          Existing law, the State Building Construction Act of 1955, 
          generally sets forth procedures for the acquisition and 
          construction of state buildings.  Existing law requires DGS 
          to prepare plans and specifications for any public building 
          constructed pursuant to the Act. 

          Existing law provides that the "Capitol Area Plan" is the 
          official state master plan for development in the central 
          City of Sacramento for the location of state buildings and 
          other improvements. The Plan serves as a guide for future 
          state policy in the locating of state buildings and other 
          facilities in the metropolitan area. The Capitol Area Plan 
          is a mixed-use plan for the management, development and 
          disposition of state-owned property located directly south 
          and east of the State Capitol and Capitol Park in the City 
          of Sacramento.

          Currently, DGS has numerous requirements to comply with 
          when locating state operations.  For example, Government 
          Code Section 15808.1 in general requires DGS to consider 
          locating state buildings in public transit corridors.  

          Executive Order D-46-01 directs DGS to use smart growth and 
          "green" principles when siting, constructing and leasing 
          state buildings. These include, amongst others, preferred 
          site or leasing in a central city or area of similar 
          character immediately adjacent thereto; sensitivity to 




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          building design and scale and environmental concerns; 
          proximity to public transit and other needed 
          infrastructure. 

           Purpose of AB 324:   According to the author's office, the 
          single largest source of greenhouse gases in California is 
          emissions from passenger vehicles. For instance, one out of 
          every ten Elk Grove residents is a State government 
          employee that travels 30.4 minutes to work or more, 
          depending on traffic congestion. This travel creates 
          90,836,875 annual commute vehicle miles traveled which 
          contributes to poor air quality in the region.  The 
          author's office claims that locating office buildings close 
          to where state employees live will reduce miles driven by 
          state workers and traffic congestion on highways and 
          surface streets. It can provide more time for employees to 
          spend in their own neighborhood, thereby increasing the 
          quality of life for those employees.  Additionally, the 
          author's office emphasizes that this measure will go a long 
          way in helping the State attain its greenhouse reduction 
          goals established in the Global Warming Solutions Act of 
          2006 (AB 32).

          Proponents contend that DGS currently does not consider the 
          residential locations of the majority of their workforce 
          when planning for the construction or acquisition of new 
          state buildings.  As a result, communities with the highest 
          concentration of state workers often have to travel lengthy 
          distances to get to work.  California's shortage of public 
          transportation systems amplifies this problem particularly 
          in rural areas of the state.
            
           Staff Comments:   Almost 20 years ago, DGS undertook an 
          ambitious program to save money and make government more 
          accessible to citizens by rearranging state offices in 
          major urban centers.  The plan also envisioned small-scale 
          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 in major metropolitan 
          areas (San Francisco, Oakland, Los Angeles, Riverside/San 
          Bernardino, Long Beach, San Diego and Sacramento.)  
          Generally, justification for these new projects focused on 
          the economic benefits of ownership compared to the avoided 
          cost of leasing.





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          Consolidation of state office space in the Capitol Area has 
          also been the state's long-standing goal, and was the 
          impetus behind the first comprehensive master plan for the 
          Capitol Area prepared in 1960.  In addition, development of 
          the Capitol Area as a vibrant mixed-use center, with a 
          variety of office, commercial and residential uses, is a 
          major goal of the Capitol Area Plan that was adopted in 
          1977, and has been a long-standing policy of the state, and 
          the City of Sacramento.  The Plan serves as a flexible 
          framework for the ongoing planning of specific development 
          activities in the Capitol Area.  

          The Capitol Area Plan encompasses a statutory defined 
          geographic area of approximately 290 acres (between 
          5th/17th Streets and L/R Streets) to the  south, east and 
          west of the State Capitol Building and Capitol Park - it 
          includes state office space, housing units and commercial 
          establishments on state-owned land.  DGS is responsible for 
          the implementation of the state office and parking elements 
          of the Plan and the Capitol Area Development Authority 
          (CADA), a state-city joint powers authority, is responsible 
          for implementation of the residential and commercial 
          elements.  

          In 1995, the Urban Land Institute, a nonprofit education 
          and research institute based in Washington D.C., examined 
          California's office program, involving land use, agency 
          location policy, facilities planning, state property 
          development and redevelopment.  The study recommended, 
          among other items, that: (1) the Capitol building and its 
          surrounding park be viewed as unique treasures that deserve 
          protection and where possible enhancement;  (2) the state 
          give immediate priority to the development of the land it 
          already owns to the east and south of the Capitol to ensure 
          that the Capitol is not left on the fringe as development 
          within the city drifts to the north; (3) state-owned land 
          in the area north of Q Street in the Capitol Area should be 
          the state's first priority for locating downtown office 
          space, with the Central Business District being the second 
          priority; and, (4) programs requiring very large floor 
          plates or having no programmatic need to be near the 
          Capitol would be appropriately located outside the downtown 
          area. 

          The Urban Land Institute study also recommended that 
          whether the location of an agency is to be in downtown 




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          Sacramento or in an outlying area, it must be convenient to 
          public transportation and highway corridors to allow easy 
          access to the regional transportation network for commuting 
          to work and between work locations and to limit urban 
          sprawl and provide efficient use of public infrastructure 
          expenditures.  The study noted that a concentrated focus on 
          development and transportation will mitigate the dangers of 
          urban sprawl and reduce the amount of air pollution that 
          sprawl can generate. 

           Suggested Amendments:   For clarity purposes the Committee 
          or author may wish to consider the following amendments:

          Amendment #1

          On page 2, line 7, after the word "building," insert: based 
          upon available information provided through the state 
          payroll database

          Amendment #2

          On page 2, line 10, after the word "of," strike out "high 
          quality and frequent" and insert: reliable 
                                         
                           PRIOR/RELATED LEGISLATION
           
           AB 1006 (Buchanan) 2009-10 Session.   Similar to AB 324 
          (Buchanan) of 2011.  Passed out of this committee on 7/9/09 
          on a vote of 10-0.  (Vetoed on the basis that DGS already 
          considers a number of factors when considering where to 
          locate a building.  Further, the Governor stated, "I 
          believe the highest priority for locating state buildings 
          is, and should remain, the ability to provide services to 
          the citizens of California.) 
           
          SB 375 (Steinberg) Chapter 375, Statutes of 2008.   Required 
          metropolitan planning            organizations to include 
          sustainable community strategies, as defined, in their 
          regional transportation plans for the purpose of reducing 
          greenhouse gas emissions, aligning planning for 
          transportation and housing, and creating specified 
          incentives for the implementation of the strategies.

           AB 32 (Nunez) Chapter 488 of 2006.   Established the Global 
          Warming Act of 2006, which is a comprehensive greenhouse 
          gas emissions reduction program that requires efforts from 




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          both the public and private sectors to achieve the goal of 
          reducing California's greenhouse gas emissions to 1990 
          levels by 2020.  
           
           SUPPORT:   As of June 24, 2011:

          American Federation of State, County and Municipal 
          Employees (AFSCME)
          City of Elk Grove
          Elk Grove Chamber of Commerce
          Elk Grove Economic Development Corporation
          Professional Engineers in California Government
          SEIU 1000
          State Building and Construction Trades Council
          TransForm

           OPPOSE:   None on file as of June 24, 2011.

           FISCAL COMMITTEE:   Senate Appropriations Committee

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