BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1515|
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                                 THIRD READING


          Bill No:  AB 1515
          Author:   Torres (D)
          Amended:  5/25/12 in Assembly
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM. :  13-0, 6/26/12
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De Le�n, Evans, Hernandez, Padilla, Walters, 
            Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/16/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg
           
          ASSEMBLY FLOOR  :  77-0, 5/30/12 - See last page for vote


           SUBJECT  :    State property:  conveyance:  City of Pomona

           SOURCE  :     City of Pomona


           DIGEST  :    This bill authorizes the City of Pomona to 
          convey to the Consolidated Fire Protection District of the 
          County of Los Angeles (CFPD) a portion of former state 
          surplus property, as specified. 

           ANALYSIS  :    

          Existing law: 

          1. Authorizes the Department of General Services (DGS) to 
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             convey to the City of Pomona certain property for use as 
             a fire station. 

          2. Requires that if the City of Pomona ceases to use the 
             property transferred as a fire station, the property 
             shall revert to the state. 

          This bill:

          1. Authorizes the City of Pomona to convey to CFPD a 
             portion of the 6.8 acres of land conveyed to the City of 
             Pomona by the state in 1973. 

          2. Provides that if any portion of the 6.8 acres of land 
             conveyed to the City of Pomona is not used for a fire 
             station, the portion of the property shall revert to the 
             state, and provides that if any of the 6.8 acres of land 
             conveyed to the CFPD is not used for fire training 
             facilities, the portion of the property shall revert to 
             the state. 

          3. Requires the Director of DGS to approve the conveyance 
             by the City of Pomona to the CFPD for use as a fire 
             training facility, upon such terms and conditions as in 
             the director's opinion may be for the best interests of 
             the state. 

           Comments  

          The City of Pomona received 6.8 acres of property (Parcel A 
          and B) located at 3325 Temple Avenue in Pomona from the 
          State of California in 1973, through Chapter 68 of the 
          Statutes of 1973, for construction of facilities to improve 
          fire protection for the surrounding area and the adjoining 
          state hospital.  Existing law stipulates that in the event 
          the City of Pomona ceases to use the property for a fire 
          station, the property shall revert to the state. 

          In 1979, the City of Pomona completed construction of Fire 
          Station 187 on Parcel A, which has continued in operation 
          to provide fire protection services according to state 
          requirements.  The City of Pomona further invested in the 
          property and built a Fire Training Facility on Parcel B. 
          Both facilities were operated by the City of Pomona Fire 

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          Department from 1979 to 1995, at which time the City of 
          Pomona contracted with CFPD for fire protection and 
          emergency response services.  The City of Pomona retained 
          ownership of the property.  CFPD continues to operate Fire 
          Station 187 and utilizes the Fire Training Facility for 
          staff training purposes. 
          According to the author's office, due to the weakened 
          economy and its impact on the City of Pomona's general 
          fund, budget cuts across all City departments have been 
          implemented.  The cost to provide CFPD fire protection and 
          emergency response services and maintenance of the Fire 
          Training Facility are critically impacting limited City 
          resources.  The transfer of the Fire Training Facility site 
          (Parcel B) to CFPD provides the best alternative to 
          maintain the Fire Training Facility and service response 
          from Fire Station 187 at its current level.  CFPD is 
          interested in acquiring the training site from Pomona and 
          continuing its use as one of their primary training sites 
          for fire response personnel. 

          The restriction on the property established by existing law 
          precludes transfer of the Fire Training Facility site by 
          the City of Pomona to CFPD.  This bill releases the deed 
          restriction and allows the transfer of this site (Parcel B) 
          to CFPD.  Recent amendments taken in the Assembly 
          Appropriations Committee provide that if any portion of the 
          6.8 acres conveyed to the City of Pomona is not used for a 
          fire station, that portion must revert to the state, and 
          provide that if any portion of the land conveyed to the 
          CFPD is not used for fire training facilities, that portion 
          must revert to the state.  Amendments also require the 
          Director of the Department of General Services to approve 
          the conveyance by the City of Pomona to the CFPD for use as 
          a fire training facility, upon the terms and conditions 
          that are in the best interests of the state, as determined 
          by the Director. 

           Related Legislation

           SB 1392 (Pavley) proposes requiring if a developmental 
          center is determined to no longer meet the needs of the 
          state for directly serving developmentally disabled persons 
          that the grounds may be made available for lease.  The bill 
          died in the Assembly Appropriations Committee.

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          SB 1217 (Dutton) proposes reauthorizing DGS to lease a 
          building at the Patton State Hospital to a private 
          nonprofit corporation or local government for the purposes 
          of providing services to elderly persons.  The bill is on 
          the Senate Unfinished Business File.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee, estimated 
          $1.5 million General Fund loss of state property, based on 
          potential future sale as surplus property, or loss of 
          annual lease revenue.  The estimate of $1.5 million is 
          preliminary as a formal assessment has not been completed.

          Proposition 57, the Economic Recovery Bond Act of 2004, 
          authorized the sale of $15 billion in long term bonds to 
          pay off accumulated debt.  Pursuant to Proposition 60A 
          (2004), proceeds from the sale of surplus properties are 
          deposited in the Deficit Recovery Bond Retirement Sinking 
          Fund Subaccount and are be used to pay the principal and 
          interest on Proposition 57 bonds.  Once these bonds are 
          fully repaid, proceeds from surplus property sales would be 
          deposited in the General Fund.  Proposition 60A only 
          applies to those properties that were purchased with 
          General Fund revenue or bonds secured by the General Fund.  
          Proposition 60A does not apply to the sale of surplus 
          property acquired with special funds.

          Revenue from the leasing of state property may be used for 
          any purpose.

          As of April 1, 2012, the balance on the $15 billion of 
          economic recovery bonds was $6.5 billion.  This bill 
          reduces the state's flexibility in disposing of this 
          property and potentially reducing this balance.

           SUPPORT  :   (Verified  8/16/12)

          City of Pomona (source)


           ASSEMBLY FLOOR  :  77-0, 5/30/12

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          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Eng, Feuer, Fong, Fuentes, Furutani, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, 
            Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, 
            Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, 
            Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva, 
            Skinner, Smyth, Solorio, Swanson, Torres, Wagner, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Donnelly, Fletcher, Valadao


          DLW:m  8/20/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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