BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1614
                                                                  Page  1

          Date of Hearing:  March 21, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                   AB 1614 (Monning) - As Amended:  March 12, 2012
           
          SUBJECT  :  Fort Ord Reuse Authority. 

           SUMMARY  :  Extends the statutory sunset date, by ten years, for 
          the Fort Ord Reuse Authority (FORA).   Specifically,  this bill  :  


          1)Extends the statutory sunset date of the FORA from June 30, 
            2014 to June 30, 2024.

          2)Requires the FORA board to approve and submit a transition 
            plan to the Monterey County Local Agency Formation Commission 
            (LAFCO) on or before December 30, 2022 or 18 months before the 
            anticipated inoperability date, whichever occurs first. 

          3)Specifies that the transition plan shall assign assets and 
            liabilities, designate responsible successor agencies, and 
            provide a schedule of remaining obligations. 

          4)Requires the transition plan to be approved by a majority vote 
            of the FORA board. 


           EXISTING LAW  :

          1)Establishes FORA, at the request of the County of Monterey and 
            the Cities of Monterey, Salinas, Carmel, and Pacific Grove, in 
            order to create an effective governmental structure to plan 
            for, finance, and carry out the transfer and reuse of the base 
            in a cooperative, coordinated, balanced, and decisive manner 
            in order to achieve the following policies: 

             a)   To transfer and reuse the real and personal property 
               comprising the military reservation known as Fort Ord with 
               all practical speed;

             b)   To minimize the disruption caused by the base's closure 
               on the civilian economy and the people of the Monterey Bay 
               area;









                                                                  AB 1614
                                                                  Page  2

             c)   To provide for the reuse and development of the base 
               area in ways that enhance the economy and quality of life 
               of the Monterey Bay community; and,

             d)   To maintain and protect the unique environmental 
               resources of the area.

          1)States that FORA's purpose is to plan for, finance, and manage 
            the transition of the property known as Fort Ord from military 
            to civilian use.

          2)Specifies that the member agencies of FORA are the County of 
            Monterey and the City of Carmel, the City of Del Rey Oaks, the 
            City of Marina, the City of Sand City, the City of Monterey, 
            the City of Pacific Grove, the City of Salinas, and the City 
            of Seaside. 



          3)Makes FORA inoperative when the FORA board determines that 80% 
            of the territory of Fort Ord that is designated for 
            development or reuse in the plan has been developed or reused 
            in a manner consistent with the plan adopted or revised, or 
            June 30, 2014, whichever occurs first.

          4)Requires the Monterey County LAFCO to provide for the orderly 
            dissolution of FOR A, including ensuring that all contracts, 
            agreements, and pledges to pay or repay money entered into by 
            the authority are honored and properly administered, and that 
            all assets of the authority are appropriately transferred.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)Fort Ord is located in Northern Monterey County generally 
            between the cities of Monterey to the Southeast and Salinas to 
            the Northeast.  It borders Monterey Bay to the west and 
            extends from the City of Seaside in the south to the City of 
            Marina in the north and to the Salinas River to the east 
            encompassing 45 square miles and covering over 28,000 acres.

          2)The Fort Ord Base closure announcement occurred in 1991, 
            generating a mixture of disbelief, economic impacts and 
            excitement about potential reuse.  This land had been part of 








                                                                  AB 1614
                                                                  Page  3

            the history of Monterey County on the Monterey Peninsula since 
            1917.  Within months, a series of meetings were initiated to 
            discuss recovery from the significant closure impacts by 
            creating a "vision" for reuse.  The meetings included broad 
            participation from the community including residents, 
            businesses, government, special districts, among others.  From 
            those meetings, it was agreed that reuse should focus on 
            Education, Environment, and Economic Development (the "three 
            E's" of Fort Ord Reuse).

          3)Initial efforts to organize governance for reuse faltered.  
            State Senator Henry Mello sponsored special legislation to 
            establish a local agency charged with the task of planning, 
            financing, and implementing reuse.  That agency was entitled 
            the "Fort Ord Reuse Authority", and was formed in 1994.  FORA 
            has a governing body of 13 voting members and 11 non-voting 
            members, and is comprised of representatives from cities, 
            Monterey County, special districts, public educational 
            institutions, the military, and state and federal legislators. 
             It is FORA's responsibility to complete the planning, 
            financing, and implementation of reuse as described in the 
            FORA Base Reuse Plan (Plan) that was adopted in 1997.  FORA's 
            organizational structure is set to sunset in 2014.

          4)Delay and restrictions are probably the most important and 
            costly factors affecting reuse of the former Fort Ord.  The 
            biggest unforeseen problem that was encountered was a regional 
            community interest lawsuit against the Army regarding its 
            munitions removal processing which delayed property transfers 
            for five years.  This caused the delay of early project 
            approvals and resulted in all of the reuse projects being 
            subjected to the economic recession of the past decade.  Other 
            factors contributing to the goals of FORA's recovery not being 
            met were that the scope of the munitions and explosives 
            remediation was greater and more costly than anticipated, and 
            that federal and state Habitat Conservation Plan (HCP) 
            approval delays precluded progress.  



            The current economic cycle is further exacerbating the delay.  
            Due to all of these circumstances, FORA's June 30, 2014 sunset 
            date, which anticipated that 80% of the reuse recovery plan 
            would be completed, cannot be achieved.  Fort Ord reuse is 
            currently 17-20% complete - not near the expected 80%. 








                                                                  AB 1614
                                                                  Page  4


          5)According to the author, if FORA is not extended, its work 
            must be performed by other local agencies who are not equipped 
            to fulfill ongoing and fixed term obligations on Fort Ord such 
            as munitions and explosives removal, HCP implementation, 
            financing contaminated building deconstruction, and 
            coordinating planning and construction of the Central Coast 
            Veteran's Cemetery.  These entities also lack the regional 
            authority that prompted the Legislature to create FORA, and 
            would most likely result in work being either delayed or not 
            being performed.    

          6)The author believes that there remains a need for a broad 
            regional authority to oversee the reuse of the former Fort Ord 
            Military Base.  Extending FORA's sunset date allows local 
            collaboration to continue to implement the FORA recovery 
            program, and to enhance the economy and quality of life in the 
            Monterey Bay community and the California Central Coast.

          7)Although some local organizations have asked the author for 
            many different types of amendments to the FORA Act, the 
            author's intent with AB 1614 is to focus on issues directly 
            related to extending the FORA's sunset date.  The author 
            believes that "with the exception of including a requirement 
            for a transition plan for the phase-out of FORA, the suggested 
            amendments are not directly linked to the sunset date and will 
            compromise the chances of AB 1614 taking effect.  Additional 
            issues, including but not limited to land use decisions, 
            updating the Base Reuse Plan, reducing FORA's appeal fee, and 
            the governance structure, should not be considered at the 
            state level without local consideration first."
                
            8)Support arguments  : Supporters are concerned that if FORA were 
            to sunset on June 30, 2014, the regional planning and 
            coordination work would be transferred to a yet-to-be 
            determined local agency or agencies, unprepared to fulfill the 
            ongoing and fixed term obligation on Fort Ord. 

             Opposition arguments  :  Opponents may argue that AB 1614 does 
            not go far enough and that the overall structure and duties of 
            FORA should be expanded to take a different regional approach 
            that cuts across local governments, non-profits, and 
            educational facilities in Monterey County.  

           








                                                                 AB 1614
                                                                  Page  5











          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Legion-Department of California
          AMVETS-Department of California
          Bruce Delgado, May, City of Marina (if amended) 
          California Association of County Veterans Service Officers
          California State Commanders Veterans Council
          Central Coast Veterans Cemetery Foundation 
          Cities of:  Carmel-by-the-Sea, Salinas, Sand City, Santa Cruz, 
          Seaside, Watsonville 
          Congressman Sam Farr
          Fort Ord Reuse Authority Board of Directors 
          Friends of Fort Ord Open Space Solutions (if amended)
          Monterey Peninsula Chamber of Commerce
          Monterey County Board of Supervisors 
          Monterey County Business Council
          Monterey/Santa Cruz Counties Building & Construction Trades 
          Council
          Transportation Agency for Monterey County 
          Ventana Chapter of the Sierra Club (with amendments) 
          Vietnam Veterans of America-California State Council
          Individual letters (4)

           Opposition 
           
          Fort Ord Rec Users 
          Friends of the Fort Ord Warhorse
          Keep Fort Ord Wild 
          LandWatch Monterey County (oppose unless amended)
          Preston and Abrams Parks Tenants Association 
          Individual letters (14)
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916) 








                                                                  AB 1614
                                                                  Page  6

          319-3958