BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2174|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 2174
Author: Assembly Accountability and Administrative Review
Committee
Amended: 8/5/14 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 8-0, 6/10/14
AYES: Correa, Cannella, De Le�n, Galgiani, Hernandez, Padilla,
Torres, Vidak
NO VOTE RECORDED: Berryhill, Lieu, Vacancy
SENATE APPOPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/8/14 (Consent) - See last page for vote
SUBJECT : State property: surplus
SOURCE : Department of General Services
DIGEST : This bill authorizes the Director of the Department
of General Services (DGS) to dispose of surplus state property,
as specified.
ANALYSIS :
Existing law:
1. Authorizes DGS, subject to legislative approval, to sell,
lease, exchange, or transfer various specified properties for
current market value, or upon such other terms and conditions
CONTINUED
AB 2174
Page
2
that DGS determines are in the best interests of the state.
2. Unless otherwise specified by law, requires the proceeds from
the sale of surplus state property to be applied toward
payment of principal and interest on the Economic Recovery
Bond Act of 2004.
This bill:
1. Authorizes the Director of DGS to dispose of the following
properties:
Parcel 1 - known as the Employment Development Department
(EDD) parking lot, located at 850 Turk Street in San
Francisco (approximately .434 acres/improvements).
Parcel 2 - known as the EDD parking lot, located at 745
Franklin Street in San Francisco (consisting of three
parcels; approximately 0.29 acres/improvements).
Parcel 3 - known as DGS' Bercut Drive Building, located at
570 Bercut Drive in Sacramento (approximately 1.5
acres/improvements).
Parcel 4 - known as the Department of Public Health (DPH)
lab facility, located at 1449 West Temple Street in Los
Angeles (approximately 1.1 acres/improvements).
Parcel 5 - known as the Department of Corrections and
Rehabilitation (CDCR) Fresno Female Offender Program
Property, located at 2855 Whitesbridge Avenue in Fresno
(approximately 2.03 acres/improvements).
Parcel 6 - known as the California Highway Patrol (CHP)
field office, located at 1888 Oceanside Boulevard in
Oceanside (approximately 1.04 acres/improvements).
Parcel 7 - known as the CHP field office, located at 4040
Pierce Road in Bakersfield (approximately 1.87
acres/improvements).
CONTINUED
AB 2174
Page
3
2. Specifies, with respect to Parcel 1, that the parcel has both
federal and state equity and the proceeds received from the
disposition of Parcel 1 will be subject to the reimbursement
of federal and state equity financing, as required under
applicable federal and state laws.
Background
This is the annual DGS-sponsored legislation for the disposal of
surplus state real property. State law requires state agencies
to identify real properties that are excess to their needs.
Legislative authorization is needed to declare real properties
as surplus and to authorize their disposal by DGS.
All proceeds generated from the sale of surplus properties are
deposited into the Deficit Recovery Bond Retirement Sinking Fund
Subaccount to pay the principal and interest on bonds issued
pursuant to the 2004 Economic Recovery Bond Act. Once the
principal and interest on those bonds are fully paid, the
proceeds from the sale of surplus state property are deposited
into the Special Fund for Economic Uncertainties, or any
successor fund.
DGS' Real Estate Services Division (RESD) is responsible for the
disposition of state surplus real property assets. RESD is also
responsible for determining the present and future space needs
of state agencies, administering the sales and leasing of
state-owned surplus property, and leasing privately-owned space
for state agencies. RESD also assists state landholding
agencies in making real estate decisions regarding their
properties.
Parcels 1 and 2 - EDD Parcels - San Francisco . EDD notified DGS
that these two parcels are surplus because there is no
programmatic need or plans for expansion that merit holding on
to the property. The two parcels are currently used for
parking; however, ingress to and egress from both parcels do not
comply with the Americans with Disabilities Act (ADA) and the
topography is a barrier to any mitigation efforts. DGS states
that disposition of these excess parcels is consistent with the
Administration's initiative to reduce the state property
footprint and supports the City of San Francisco's efforts to
revitalize the area. Parcel 1 is encumbered by federal equity
CONTINUED
AB 2174
Page
4
financing, and this bill contains necessary references to the
applicable means by which the proceeds will pay off federal
obligations pursuant to law.
Parcel 3 - DGS Bercut Drive Building - Sacramento . DGS states
that, in 1977, the American Justice Institute conveyed by gift
to the state the property at 570 Bercut Drive, Sacramento. The
property consists of a single story, 16,597 square foot building
situated on 1.5 acres off Richards Boulevard. DGS leased the
property to the Los Rios Community College District (LRCC
District) rent-free, stipulating only that the LRCC District
maintain the property. The LRCC District subsequently sublet
the property to the City of Sacramento Police Department
(Sacramento PD) for training purposes. On July 31, 2008,
Sacramento PD vacated the property and returned the keys to DGS.
An inspection of the property found the building clean, but in
a very dated condition.
DGS noted evidence of serious roof leaks and non-compliance with
the ADA throughout the structure's interior and exterior. A DGS
infrastructure study, completed in 2009, expressed the need for
either a total renovation of the building (approximately $5
million), or a demolition and rebuild process (approximately $6
million) to bring the structure up to current building code
standards and ADA compliance. DGS determined that there is no
foreseeable state programmatic use for the building, and the
building remains vacant.
Parcel 4 - DPH Lab Facility - 1449 W. Temple Street, Los
Angeles . This new surplus property is a 30,500-square foot lab
facility situated on 1.1 acres in Los Angeles. DPH should soon
have their final decommissioning personnel moved to their new
Lab located at 850 Marina Bay Parkway, Richmond.
Parcel 5 - CDCR Fresno Female Offender Program Property . In
1998, CDCR acquired the site at 2855 Whitesbridge Road, in
Fresno. CDCR used the property until June 2012 for its Female
Offender Program. This facility was the last of three statewide
locations closed due to declining enrollment. CDCR has
subsequently determined that the facility is not suitable for
housing other inmates due to the excessive costs to rehabilitate
and secure the property. The property has several buildings;
the first two were constructed in 1971 as a church, and in 1992,
prior to state acquisition, two dormitories were added. The
CONTINUED
AB 2174
Page
5
site is approximately 2.0 acres and sits in a largely industrial
and farming area on the westernmost outskirts of Fresno.
Security at the site is an issue and as a result the buildings
have been extensively vandalized. Until disposed of, the
property will continue to present liability to the state,
ongoing maintenance and security expenses for CDCR, and poses a
significant nuisance to the community. Both CDCR and DGS report
that there have been several offers by interested persons to
purchase the property.
Parcels 6 and 7 - CHP Field Offices . These CHP surplus
properties are a result of a statewide upgrading of out-of-date
and small existing field offices. These locations no longer
meet modern building codes, are not in compliance with the
Americans with Disabilities Act. They also lack women's locker
rooms. All proceeds from the sale of these two properties will
be deposited into the Motor Vehicle Account.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/5/14)
Department of General Services (source)
Department of Finance
ARGUMENTS IN SUPPORT : The Department of Finance writes that
this bill "could generate additional surplus property revenue
for the state by selling properties that are no longer needed to
serve core state functions."
ASSEMBLY FLOOR : 73-0, 5/8/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Grove, Hagman, Harkey, Roger Hern�ndez, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,
Olsen, Pan, Patterson, Perea, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
CONTINUED
AB 2174
Page
6
P�rez
NO VOTE RECORDED: Eggman, Gorell, Gray, Hall, Mansoor, V.
Manuel P�rez, Vacancy
MW:d 8/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED