Existing law provides for the acquisition of public park property and facilities and compensation for that transfer under specified circumstances. The State Beach, Park, Recreational and Historical Facilities Bond Act of 1974 authorized the state to issue and sell bonds to provide funding for, among other things, grants to counties, cities, or cities and counties for the acquisition and development of real property for park, recreation area, beach, and historical purposes.

The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (the Villaraigosa-Keeley Act) authorizes the issuance of bonds for the purpose of financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, river, and coastal resources, as specified. The act prohibits the use of the grant funds unless the applicant has agreed to certain conditions, including, but not limited to, using the property only for the purposes for which the grant was made and making no other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. The act requires that, if the use of the property is changed to a use that is not permitted by the act or if the property is sold or otherwise disposed of, an amount equal to the amount of the grant, the fair market value of the real property, as specified, or the proceeds from the sale or other disposition be used by the grantee for a purpose authorized by the act or that this amount be reimbursed to the fund.

This bill would authorize the County of Tehama to transfer to the Evergreen Union School District certain parkland if the county and the district enter into an agreement with the Department of Parks and Recreation that transfers to the district all ongoing obligations of the county relating to the property, as specified, and certain other conditions are met.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Tehama.

Existing law provides for the acquisition of public park property and facilities and compensation for that transfer under specified circumstances. The State Beach, Park, Recreational and Historical Facilities Bond Act of 1974 authorized the state to issue and sell bonds to provide funding for, among other things, grants to counties, cities, or cities and counties for the acquisition and development of real property for park, recreation area, beach, and historical purposes.

The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (the Villaraigosa-Keeley Act) authorizes the issuance of bonds for the purpose of financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, river, and coastal resources, as specified. The act prohibits the use of the grant funds unless the applicant has agreed to certain conditions, including, but not limited to, using the property only for the purposes for which the grant was made and making no other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. The act requires that, if the use of the property is changed to a use that is not permitted by the act or if the property is sold or otherwise disposed of, an amount equal to the amount of the grant, the fair market value of the real property, as specified, or the proceeds from the sale or other disposition be used by the grantee for a purpose authorized by the act or that this amount be reimbursed to the fund.

This bill would authorize the County of Tehama to transfer to the Evergreen Union School District certain parkland if the county and the district enter into an agreement with the Department of Parks and Recreation that transfers to the district all ongoing obligations of the county relating to the property, as specified, and certain other conditions are met.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Tehama.

Existing law provides for the acquisition of public park property and facilities and compensation for that transfer under specified circumstances. The State Beach, Park, Recreational and Historical Facilities Bond Act of 1974 authorized the state to issue and sell bonds to provide funding for, among other things, grants to counties, cities, or cities and counties for the acquisition and development of real property for park, recreation area, beach, and historical purposes.

The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (the Villaraigosa-Keeley Act) authorizes the issuance of bonds for the purpose of financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, river, and coastal resources, as specified. The act prohibits the use of the grant funds unless the applicant has agreed to certain conditions, including, but not limited to, using the property only for the purposes for which the grant was made and making no other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. The act requires that, if the use of the property is changed to a use that is not permitted by the act or if the property is sold or otherwise disposed of, an amount equal to the amount of the grant, the fair market value of the real property, as specified, or the proceeds from the sale or other disposition be used by the grantee for a purpose authorized by the act or that this amount be reimbursed to the fund.

This bill would authorize the County of Tehama to transfer to the Evergreen Union School District certain parkland if the county and the district enter into an agreement with the Department of Parks and Recreation that transfers to the district all ongoing obligations of the county relating to the property, as specified, and the district ensures that the property is maintained and operated in perpetuity for park purposes. certain other conditions are met.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Tehama.

Existing law provides for the acquisition of public park property and facilities and compensation for that transfer under specified circumstances. The State Beach, Park, Recreational and Historical Facilities Bond Act of 1974 authorized the state to issue and sell bonds to provide funding for, among other things, grants to counties, cities, or cities and counties for the acquisition and development of real property for park, recreation area, beach, and historical purposes.

The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (the Villaraigosa-Keeley Act) authorizes the issuance of bonds for the purpose of financing a program for the acquisition, development, improvement, rehabilitation, restoration, enhancement, and protection of park, recreational, cultural, historical, fish and wildlife, lake, riparian, reservoir, river, and coastal resources, as specified. The act prohibits the use of the grant funds unless the applicant has agreed to certain conditions, including, but not limited to, using the property only for the purposes for which the grant was made and making no other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. The act requires that, if the use of the property is changed to a use that is not permitted by the act or if the property is sold or otherwise disposed of, an amount equal to the amount of the grant, the fair market value of the real property, as specified, or the proceeds from the sale or other disposition be used by the grantee for a purpose authorized by the act or that this amount be reimbursed to the fund.

This bill would authorize the County of Tehama to transfer to the Evergreen Union School District certain parkland if the county and the district enter into an agreement with the Department of Parks and Recreation that transfers to the district all ongoing obligations of the county relating to the property, as specified, and the district ensures that the property is maintained and operated in perpetuity for park purposes.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Tehama.

Date of Hearing: August 3, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1027

Author:(Nielsen) – As Amended Ver:April 6, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY: This bill authorizes the County of Tehama to transfer certain park lands originally acquired with state park bond funding to the Evergreen Union School District, if certain conditions are met, including that the land be maintained as a public park. Specifically, this bill:

1. Authorizes the County of Tehama to transfer certain parkland known as Noland Park to the Evergreen Union School District, if all the following conditions are met:
2. The county and the school district enter into an agreement with the Department of Parks and Recreation (DPR) that transfers to the school district all ongoing obligations of the county relating to the property arising from any of the bond acts, or any agreements entered into pursuant to those bond acts, that were the source of the initial funding for acquisition of the parklands.
3. The school district ensures that the property is maintained and operated in perpetuity for park purposes.
4. The recorded instrument transferring title from the county to the school district contains an express condition and covenant that the property shall be used in perpetuity as a public park.

FISCAL EFFECT:

Negligible state fiscal impact.

COMMENTS:

1. Purpose. According to the author, both the school district and the county have requested this mutually-beneficial transfer, which will enable the school district to make further investments of the property. The park will remain open to the public with no practical impact on public use, and there has been no community opposition. Because Noland Park was developed using state funds, the county cannot make the transfer without legislative approval.
2. Background: Noland Park was purchased in 1982 with $29,425 through the 1974 Park Bond Program. In 2002, the County of Tehama made upgrades to the park with a $30,781 grant from Proposition 12, through the Roberti-Z'berg-Harris Non-Urban Area Needs Basis grant program. Both the county and the school district would like the transfer to occur as it will allow the school district to invest in long-term capital projects for the park, as well as pursue grant funding for future improvements. The school district has leased the park from the county since 1993 and already has invested $360,000 in improvements and maintenance.
3. Prior Legislation. The Legislature has allowed several local governments to transfer park property acquired or developed with state bond funds to other public entities. Other bills include:
4. SB 829 (Galgiani), Chapter 119, Statutes of 2014, allowed the City of Escalon to sell park facilities after a proposed development did not occur, in order to acquire park land closer to the City.
5. AB 1732 (Hall), Chapter 191, Statutes of 2010, allowed the City of Los Angeles to transfer park land and facilities to the Los Angeles Unified School District.
6. AB 123 (Nunez), Chapter 260, Statutes of 2007, allowed the City of Huntington Park to transfer park land to the Los Angeles Unified School District.
7. AB 1457 (Baca), Chapter 852, Statutes of 2006, allowed the City of San Bernardino to transfer up to 12.5 acres of park land to the city’s redevelopment agency.
8. AB 1864 (Matthews), Chapter 1864, Statutes of 2006, allowed the City of Merced to transfer up to three acres of park land to the Merced City School District.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: June 28, 2016

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Marc Levine, Chair

SBPCA Bill Id:SB 1027

Author:(Nielsen) – As Amended Ver:April 6, 2016

SENATE VOTE: 39-0

SUBJECT: Parks: property transfer

SUMMARY: Authorizes the County of Tehama to transfer certain park lands originally acquired with state park bond funding to the Evergreen Union School District, if certain conditions are met, including that the land be maintained as a public park. Specifically, this bill:

1. Authorizes the County of Tehama to transfer certain parkland known as Noland Park to the Evergreen Union School District, if all the following conditions are met:
   1. The county and the school district enter into an agreement with the Department of Parks and Recreation (DPR) that transfers to the school district all ongoing obligations of the county relating to the property arising from any of the bond acts, or any agreements entered into pursuant to those bond acts, that were the source of the initial funding for acquisition of the parklands.
   2. The school district ensures that the property is maintained and operated in perpetuity for park purposes.
   3. The recorded instrument transferring title from the county to the school district contains an express condition and covenant that the property shall be used in perpetuity as a public park.

EXISTING LAW:

1. Provides for the acquisition of public park property under various state bond acts. Prior bond acts include the State Beach, Park, Recreational and Historical Facilities Bond Act of 1974, which authorized the issuance and sale of bonds for, among other things, acquisition of park properties.
2. The Safe Neighborhood, Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 (Proposition 12), authorized the issuance of bonds to finance, among other things, acquisition and development of parks. The Act requires that the property acquired with the bond funds be used only for the purposes for which the grant was made, and prohibits the land from being used for other purposes or sold, except as authorized by a specific act of the Legislature. Requires, if the property is sold, that an amount equal to the sale or value of the property be used by the grantee for a purpose authorized by the Act or that the amount be reimbursed to the bond fund.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible if any state costs.

COMMENTS: This bill authorizes the County of Tehama to transfer Noland Park to the Evergreen Union School District with the condition that the land be maintained as a public park.

1. Author's Statement: This is a district bill that would allow Tehama County to transfer Noland Park to the Evergreen Union School District. Both the school district and the county have requested this mutually-beneficial transfer, which will enable the school district to make further investments of the property. The park will remain open to the public with no practical impact on public use, and there has been no community opposition.
2. Background: Noland Park was purchased in 1982 with $29,425 through the 1974 Park Bond Program. In 2002, the County of Tehama made upgrades to the park with a $30,781 grant from Proposition 12, through the Roberti-Z'berg-Harris Non-Urban Area Needs Basis grant program. Both the county and the school district would like the transfer to occur as it will allow the school district to invest in long-term capital projects for the park, as well as pursue grant funding for future improvements. The school district has leased the park from the county since 1993 and already has invested $360,000 in improvements and maintenance.
   
   The author and sponsors note that this bill will require that the property continue to be operated as a public park by requiring that the school district ensure that the property is maintained and operated for park purposes in perpetuity. The county's obligations under the original grant agreements will be transferred to the school district through an agreement with the DPR, and the recorded instrument transferring the title will also specifically require that the property continue to be operated as a public park.
   
   The public will have access to the park outside of school hours. While public access will be restricted during school hours, the author and sponsors note this is currently the case as the park is surrounded by the school district and during school hours it is used exclusively by students for recess, sports and exercise. Therefore, the transfer will not affect a change in current park usage or public access. The author also indicates that there have been numerous opportunities at public board meetings for public comment on the proposed transfer, and several articles regarding the proposed transfer in local newspapers, and no community objections have been raised.
3. Double-Referral: This bill was double-referred to the Assembly Local Government Committee which heard and passed this bill on June 15, 2016 with recommendation to consent calendar.
4. Prior and Related Legislation: AB 1864 (Matthews), Chapter 558, Statutes of 2006, authorized the City of Merced to transfer to the Merced City School District up to 3 acres of park land in Fahrens Creek Park if certain conditions are met.
   
   AB 1732 (Hall), Chapter 191, Statutes of 2010, authorized the City of Los Angeles to transfer to the Los Angeles Unified School District parkland known as the Vernon Branch Library Pocket Park and the facilities on that land, conditioned upon, among other things, the city complying with the requirements of Proposition 12 and providing a copy of the recorded deed and title policy for, and map of, a substitute parkland.
5. Support Arguments: This transfer will allow this parkland to continue to be open to the general public during non-school hours, while allowing the school children to have beneficial use of the property during school hours. Transferring ownership of the property will allow the School District to implement long range planning for capital improvements while continuing to allow the public to use the park.
6. Opposition Arguments: None received.

REGISTERED SUPPORT / OPPOSITION:

Support

Evergreen Union School District

Tehama County Board of Supervisors

Opposition

None on file.

Analysis Prepared by: Diane Colborn / W., P., & W. / (916) 319-2096

Date of Hearing: June 15, 2016

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Susan Talamantes Eggman, Chair

SBPCA Bill Id:SB 1027

Author:(Nielsen) – As Amended Ver:April 6, 2016

SENATE VOTE: 39-0

SUBJECT: Parks: property transfer.

SUMMARY: Authorizes the County of Tehama to transfer Noland Park to the Evergreen Union School District, under specified conditions. Specifically, this bill:

1. Allows the County of Tehama (County) to transfer to the Evergreen Union School District (District ) the Noland Park property, if all of the following conditions are met:
   1. The County and the district enter into an agreement with the Department of Parks and Recreation that transfers to the District all ongoing obligations of the County relating to the property arising, pursuant to any of the following:
      1. The State Beach, Park, Recreational and Historical Facilities Bond Act of 1974;
      2. The Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000;
      3. The Roberti-Z’berg-Harris Urban Open-Space and Recreation Program Act; and,
      4. Any grant agreements entered into, pursuant to the Acts listed above;
   2. The District ensures that the property is maintained and operated in perpetuity for park purposes; and,
   3. The recorded instrument transferring title from the county to the District contains an express condition and covenant that the property shall be used in perpetuity as a public park.
2. States that the Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable because of the unique circumstances of the County of Tehama due to the location of the Noland Park property in proximity to, and surrounded by, the elementary school operated by the District.

EXISTING LAW:

1. Prohibits public entities, as specified in the Public Park Preservation act of 1971, from acquiring parkland for non-park purposes, unless substitute parkland or equivalent compensation is provided.
2. Provided, pursuant to the State Beach, Park, Recreational, and Historical Facilities Bond Act of 1974, $90 million for grants to cities and counties for the acquisition and development of parkland through a grant program administered by the Department of Parks and Recreation.
3. Provided, pursuant to the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, funds to local governments for the Roberti-Z-berg-Harris Urban Open-Space and Recreation Program.
4. Requires, pursuant to the above Acts, that grant recipients agree to use the property only for the purposes for which the grant was made, as specified.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

1. Bill Summary. This bill allows the County to transfer property (Noland Park) previously acquired with state bond funds to the District, if all of the following conditions are met:
   a) The County and the District enter into an agreement with the Department of Parks and Recreation that transfers to the District all ongoing obligations of the County relating to the property arising, pursuant to three specified bond Acts, including any grant agreements;
   b) The District ensures that the property is maintained and operated in perpetuity for park purposes; and, c) That the recorded instrument transferring title from the County to the District contains an express condition and covenant that the property must be used in perpetuity as a public park.

This bill is co-sponsored by the County of Tehama and the Evergreen Union School District.

1. Background. Tehama County, in 1979, received a grant of $29,425 from the 1974 Bond Act to acquire and develop Noland Park. They also received another grant of $32,000 from the Roberti-Z’berg Harris program to remove and replace outdated playground equipment and make other improvements to other play areas within the park. Noland Park is located directly between the elementary and middle schools for the Evergreen Union School District. In 1993, the County leased the park to the District for 20 years, and required the District to be responsible for all maintenance. The District was responsible for all maintenance and was allowed to make capital improvements to the site, and in return, the District received the first right to use the facilities and schedule activities on the park property. The District has spent more than $189,000 in improvements and an additional $152,000 in maintenance over the course of the lease, upgrading the fencing, sprinklers, track, and soccer field. The lease expired in 2013, but has been renewed on an annual basis since the expiration.

In order to transfer the property to the District, the County needs legislative authorization.

1. Author’s Statement. According to the author, “Both the School District and the County have requested this mutually-beneficial transfer. Since 1993, the school district has leased the park and invested over $360,000 in improvements and maintenance. As they would like to invest in long term capital projects, they have asked that they be given ownership of the property. The County would also like to make the transfer so that they can hand over all relevant obligations to the school district.

“Because Noland Park was developed using state funds, the county cannot make the transfer without specific legislative approval.”

1. Transfers of Park Property. The Legislature has allowed several other local governments to transfer park property acquired or developed with state bond funds to other public entities for uses other than parkland on the condition that the cities or entities provide replacement property. Other bills include:
   1. AB 1864 (Matthews), Chapter 1864, Statutes of 2006, allowed the City of Merced to transfer up to three acres of park land to the Merced City School District;
   2. AB 1457 (Baca), Chapter 852, Statutes of 2006, allowed the City of San Bernardino to transfer up to 12.5 acres of park land to the city’s redevelopment agency;
   3. AB 123 (Nunez), Chapter 260, Statutes of 2007, allowed the City of Huntington Park to transfer parkland to the Los Angeles Unified School District;
   4. AB 1732 (Hall), Chapter 191, Statutes of 2010, allowed the City of Los Angeles to transfer parkland and facilities to the Los Angeles Unified School District; and,
   5. SB 829 (Galgiani), Chapter 119, Statutes of 2014, allowed the City of Escalon to sell park facilities after a proposed development did not occur, in order to acquire parkland closer to the City.
2. Arguments in Support. According to the sponsors, transferring ownership in the property would allow the District to implement long range planning for capital improvements while continuing to allow the public to use the facility as a public park when school is not in session.
3. Arguments in Opposition. None on file.
4. Double-Referral. This bill is double-referred to the Water, Parks and Wildlife Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

County of Tehama [SPONSOR]

Evergreen Union School District [SPONSOR]

Opposition

None on file.

Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958

 THIRD READING  

Bill No: SB 1027

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 3/30/16

AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: County of Tehama

Evergreen Union School District

DIGEST: This bill allows the County of Tehama to transfer property previously acquired with state bond funds.

ANALYSIS:

Existing law:

1. Generally prohibits public entities, including local governments, from acquiring parkland for non-park purposes unless substitute parkland or equivalent compensation is provided.
2. Authorizes the sale of general obligation bonds, as approved by voters in 1974 and 2000, for parks purposes.
3. Establishes the Roberti-Z’berg-Harris Urban Open-Space and Recreation Program, which requires DPR to make annual grants to cities, counties, and districts for recreational purposes, open-space purposes, or both, on the basis of population and need.
4. Requires, pursuant to the 1974 and 2000 Bond Acts and the Roberti-Z’berg-Harris grant program, that grantees that receive bond funds:
   1. Agree to use the property only for the purposes for which the grant was made.
   2. Not make any other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature.

This bill allows the County of Tehama to transfer Noland Park to the Evergreen Union School District if the following three conditions are met:

1. The county and the district must enter into an agreement with DPR that transfers any obligations of the county under the 1974 Bond Act, Proposition 12, the Roberti-Z’berg-Harris program, and grants entered into under those laws.
2. The district ensures that the property is maintained and operated in perpetuity for park purposes.
3. The recorded instrument transferring title from the county to the district contains an express condition and covenant that the property shall be used in perpetuity as a public park

Background

California voters have approved several bond acts that provide funding for acquiring parkland. In June 1974, voters approved the State Beach, Park, Recreational, and Historical Facilities Bond Act of 1974. Among other provisions, the act provided $90 million for grants to cities and counties for the acquisition and development of parkland through a grant program administered by the state Department of Parks and Recreation (DPR). Subsequently, voters approved Proposition 12, the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, at the statewide primary election in March of 2000. Proposition 12 made funds available to local governments for the Roberti-Z’berg-Harris Urban Open-Space and Recreation Program, which requires DPR to make annual grants to cities, counties, and districts for recreational purposes, open-space purposes, or both, on the basis of population and need.

Both the 1974 Bond Act and Proposition 12, as well as the Robert-Z’berg-Harris program, require that grant recipients must agree to use the property only for the purposes for which the grant was made. The grantee cannot make any other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. If the use of the property changes or the property is sold upon approval by the Legislature, the grantee must either return the funds to the state or use replacement funds for a purpose that is consistent with the original grant. The replacement funds can equal the amount of the grant, the fair market value of the real property, or the proceeds from the sale of the property, whichever is greater. Bond-funded grant programs incorporate these requirements into their grant contracts.

Since 2001, the Legislature has allowed several local governments to transfer park property acquired or developed with state bond funds to other public entities for uses other than parkland on the condition that the cities or entities provide replacement property.

Noland Park. In 1979, Tehama County received a grant of $29,425 from the 1974 Bond Act to acquire and develop Noland Park. The county received a subsequent grant of $32,000 from the Roberti-Z’berg-Harris program, funded by Proposition 12, to remove and replace outdated playground equipment and make other improvements to play areas within the park. Noland Park is located directly between the elementary and middle schools for the Evergreen Union School District, and in 1993 the county leased the park to the district for 20 years. Under the lease, the school district was responsible for all maintenance and was allowed to make capital improvements to the site; in return, the school district received the first right to use the facilities and schedule activities. Accordingly, over the course of the lease the district developed the park through upgrades of fencing, sprinklers, a track and soccer field, spending more than $189,000 in improvements and an additional $152,000 in maintenance. Since the lease’s expiration in 2013, it has been renewed on an annual basis. Local officials want to transfer the park to the school district so the district can continue to invest in the property.

Comments

Purpose of the bill. Since 1993, the county and district have cooperated to improve Noland Park and ensure that nearby communities have access to safe and modern park facilities. The district has invested over $360,000 in improvements and maintenance expenditures, and in return, children at the adjacent schools have access to the park, while the general public continued to be able to access the facilities. The school district has identified over $340,000 in additional improvements it would like to undertake at the park in the next 20 years. Transferring ownership in the property would encourage the district to plan for and make longer term capital investments in the park, but state law only allows such a transfer to occur if the Legislature specifically authorizes it. SB 1027 provides the needed legislative authorization.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/18/16)

County of Tehama (co-source)

Evergreen Union School District (co-source)

OPPOSITION: (Verified 4/18/16)

None received

Prepared by:

4/20/16 15:39:01

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

Parks: property transfer

Allows the County of Tehama to transfer property previously acquired with state bond funds.

Background

The Public Park Preservation Act of 1971 generally prohibits public entities, including local governments, from acquiring parkland for non-park purposes unless substitute parkland or equivalent compensation is provided.

Parks Grant Programs. California voters have approved several bond acts that provide funding for acquiring parkland. In June 1974, voters approved the State Beach, Park, Recreational, and Historical Facilities Bond Act of 1974. Among other provisions, the act provided $90 million for grants to cities and counties for the acquisition and development of parkland through a grant program administered by the state Department of Parks and Recreation (DPR). Subsequently, voters approved Proposition 12, the Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, at the statewide primary election in March of 2000. Proposition 12 made funds available to local governments for the Roberti-Z’berg-Harris Urban Open-Space and Recreation Program, which requires DPR to make annual grants to cities, counties, and districts for recreational purposes, open-space purposes, or both, on the basis of population and need.

Both the 1974 Bond Act and Proposition 12, as well as the Robert-Z’berg-Harris program, require that grant recipients must agree to use the property only for the purposes for which the grant was made. The grantee cannot make any other use or sale or other disposition of the property, except as authorized by a specific act of the Legislature. If the use of the property changes or the property is sold upon approval by the Legislature, the grantee must either return the funds to the state or use replacement funds for a purpose that is consistent with the original grant. The replacement funds can equal the amount of the grant, the fair market value of the real property, or the proceeds from the sale of the property, whichever is greater. Bond-funded grant programs incorporate these requirements into their grant contracts.

The Legislature has allowed several local governments to transfer park property acquired or developed with state bond funds to other public entities for uses other than parkland on the condition that the cities or entities provide replacement property:

• The City of Merced was allowed to transfer of up to 3 acres of park land to the Merced City School District (AB 1864, Matthews, 2006).
• The City of San Bernardino was allowed to transfer up to 12.5 acres of park land to the city’s redevelopment agency (AB 1457, Baca, 2006).
• The City of Huntington Park was allowed to transfer parkland to the Los Angeles Unified School District (AB 123, Nunez, 2007).
• The City of Los Angeles was allowed to transfer parkland and facilities to the Los Angeles Unified School District (AB 1732, Hall, 2010).
• The City of Escalon was allowed to sell park facilities after a proposed development did not occur, in order to acquire parkland closer to the city (SB 829, Galgiani, 2014).

The Legislature also authorized the City of San Jose to convert to a different use a parcel of parkland acquired with state bond funds on the condition that the city acquire another parcel of land adjacent to the park (AB 730, Diaz, 2001).

Noland Park. In 1979, Tehama County received a grant of $29,425 from the 1974 Bond Act to acquire and develop Noland Park. The county received a subsequent grant of $32,000 from the Roberti-Z’berg-Harris program, funded by Proposition 12, to remove and replace outdated playground equipment and make other improvements to play areas within the park. Noland Park is located directly between the elementary and middle schools for the Evergreen Union School District, and in 1993 the county leased the park to the district for 20 years. Under the lease, the school district was responsible for all maintenance and was allowed to make capital improvements to the site; in return, the school district received the first right to use the facilities and schedule activities. Accordingly, over the course of the lease the district developed the park through upgrades of fencing, sprinklers, a track and soccer field, spending more than $189,000 in improvements and an additional $152,000 in maintenance. Since the lease’s expiration in 2013, it has been renewed on an annual basis. Local officials want to transfer the park to the school district so the district can continue to invest in the property.

Proposed Law

SB 1027 allows the County of Tehama to transfer Noland Park to the Evergreen Union School District, regardless of the requirements of the Public Park Act of 1971, if two conditions are met. First, the County and the district must enter into an agreement with DPR that transfers any obligations of the county under the 1974 Bond Act, Proposition 12, the Roberti-Z’berg-Harris Act, and grants entered into under those laws. Second, the district must ensure that the property is maintained and operated in perpetuity for park purposes.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. Since 1993, the county and district have cooperated to improve Noland Park and ensure that nearby communities have access to safe and modern park facilities. The district has invested over $360,000 in improvements and maintenance expenditures, and in return, children at the adjacent schools have access to the park, while the general public continued to be able to access the facilities. The school district has identified over $340,000 in additional improvements it would like to undertake at the park in the next 20 years. Transferring ownership in the property would encourage the district to plan for and make longer term capital investments in the park, but state law only allows such a transfer to occur if the Legislature specifically authorizes it. SB 1027 provides the needed legislative authorization.

2. Public access. Under the current arrangement where the district leases the park, the county sets the ground rules for public access and use of the facilities. If the transfer occurs, the school district will get final say. While the county and the school district currently agree that public access should remain the same if the land is transferred as under the lease, opinions may differ in the future. Transferring ownership to the school district raises questions about whether the general public will continue to be able to enjoy the use of the park as it has over the past 30 years.

3. Trust but verify. SB 1027 requires the district to ensure that the property remains parkland in perpetuity, but it does not provide a specific mechanism for doing so. SB 829 (Galgiani, 2014) authorized the City of Escalon to sell parkland it had acquired using bond funds on the condition that it purchase replacement parkland that is accompanied by a deed restriction preventing the conversion of the land to other uses. The Committee may wish to consider amending SB 1027 to require the transferred property to contain a deed restriction—binding on future owners of the land—that prevents conversion of the land to uses other than parkland or open space.

4. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). SB 1027 contains findings and declarations explaining the need for legislation that applies only to the County of Tehama.

Support and Opposition

(3/24/2016)

Support: County of Tehama (co-sponsor); Evergreen Union School District (co-sponsor).

Opposition: Unknown.

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