Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 767

Author:(Glazer) – As Amended Ver:June 27, 2019

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

SUMMARY:

This bill authorizes the Department of Parks and Recreation (DPR) to dispose of the Alameda-Tesla Expansion Area (expansion area) of the Carnegie State Vehicular Recreation Area (SVRA). Specifically, this bill:

1. Allows DPR to dispose of the 3,100-acres known as the expansion area to permanently preserve the land for conservation purposes, if DPR determines that disposing of it is in the public interest, after holding public meetings and consulting with stakeholders.
2. Authorizes the Department of General Services (DGS), if DPR makes the public interest determination required above, to sell the expansion area or otherwise dispose of the land upon any terms and conditions and subject to any reservations and exceptions DGS deems to be in the best interests of the state.
3. Requires DGS to sell the expansion area only to a local agency or nonprofit organization for use as a park or another open space purpose, as defined.
4. Requires the expansion area to be sold for not less than fair market value as appraised by DGS for use as dedicated open space. Requires the land to be sold for no less than the original purchase price based on the actual parcels included in the sale.
5. Requires any revenue from the disposition of the expansion area, upon appropriation by the Legislature, first to reimburse DGS for its services, then to be deposited in the OHV fund.

FISCAL EFFECT:

1. Unknown, potential foregone revenue resulting from the sale of the Alameda-Tesla Expansion Area portion of the Carnegie SVRA, to the extent the property is sold for less than fair market value. The sale price must be at least $9 million, so the impacts would be the difference between fair market value, as determined under current law for surplus state property, and the ultimate sale price, which must be found to be in the state’s best interests. (Off-Highway Vehicle Trust Fund).

However, the counting zoning ordinance was adopted by the voters and does not allow for any non-agricultural commercial or high-density development, thus limiting the growth in current fair market value of the property and the future fair market value of the property, without a vote of the public.

1. One-time costs to the Department of General Services (DGS) of approximately $50,000 to $75,000 for staff time related to the sale of the property. These costs would be passed on to DPR. (Off-Highway Vehicle Trust Fund).
   
2. One-time costs to DPR of approximately $40,000 to conduct up to four public hearings to consider whether disposing of the property is in the public interest. (Off-Highway Vehicle Trust Fund).
   
3. Unknown, potentially significant one-time costs for DPR to amend the SVRA general plan, as necessary, to account for the sale of the Alameda-Tesla Expansion Area. (Off-Highway Vehicle Trust Fund)
   

COMMENTS:

1. Purpose. According to the author:

Not only is the Alameda-Tesla Expansion Area rich with biological and cultural resources, but this planned expansion has been litigated for almost 20 years. My bill, SB 1316 would simply allow State Parks to sell the portion of the Carnegie SVRA known as the Alameda Tesla Expansion for conversation purposes, if State Parks determines that disposing of that land is in the public interest.

1. Background. DPR is authorized to plan, acquire and develop the expansion site for OHV use. Between 1996 and 1998, DPR purchased 3,100 acres adjacent to the Carnegie SVRA in Alameda County in seven acquisitions for $8,963,000 using money from the OHV Fund. The additional land was classified as SVRA lands and added to Carnegie SVRA. This additional land is known officially as the “Alameda-Tesla Expansion Area.”

This expansion has been controversial and opposed by both the local government and conservation groups, but supported by OHV users. It has received considerable input from OHV user groups, adjacent landowners and a variety of regulatory agencies. The expansion property also contains sensitive cultural and natural resources. For these reasons it took DPR nearly three attempts and almost 20 years to finally certify its EIR and adopt a general plan by October of 2016. This action has been challenged in three separate lawsuits that have yet to be decided.

In 2017, a group of 16 local legislators wrote the director of DPR to encourage the department to work with local stakeholders to explore the option of selling the land set aside for expansion. The director’s response noted that the expansion Area at Carnegie SVRA does not meet the statutory criteria to be considered surplus property.

1. Department of General Services. Existing law authorizes DGS to dispose of state real property declared surplus by the Legislature by sale, lease, exchange or any other manner, and upon terms deemed to be in the state’s best interests. If surplus property is not needed by any other state agency, it must first be offered to local agencies, then to nonprofit affordable housing sponsors, prior to being offered for sale to private entities or individuals. DGS is generally required to sell surplus property at fair market value, except in specified circumstances for affordable housing or parks and open-space purposes. If surplus state property is transferred to a local agency for less than fair market value for parks or open-space purposes, existing law requires that the property revert to the state if the property use changes to a non-park or open space purpose within a 25-year period following the property transfer.
2. Prior Legislation. SB 1316 (Glazer), which was held on suspense in the Assembly Appropriations Committee, was substantially similar to this bill.
3. Does the EIR Match Current DPR Policy? SB 249 (Allen), Chapter 459, Statutes of 2017 was passed a year after the expansion area EIR was certified and general plan was adopted. The bill established standards to improve environmental protections and reporting requirements for all SVRAs. SB 249 was passed with support from OVH users and environmental interests as a way to balance the interests of both groups. If the expansion area were to be developed, this would be DPR’s first opportunity under the new policies.

It is unclear if the current plan and EIR are consistent. It is also unclear if the new policies in SB 249 might be able to develop the park in a way that protects wildlife, provides minimal, non-intrusive OHV activity, provides passive recreational opportunities and receives community support—all goals of SB 249. If not, perhaps this property is not appropriation for an OHV expansion.

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

Date of Hearing: July 3, 2019

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Cottie Petrie-Norris, Chair

SBPCA Bill Id:SB 767

Author:(Glazer) – As Amended Ver:June 27, 2019

SENATE VOTE: 28-10

SUBJECT: Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

SUMMARY: Permits the Department of Parks and Recreation (State Parks) to dispose of a portion of the Carnegie State Vehicular Recreation Area (SVRA) known as the Alameda-Tesla Expansion Area (Expansion Area), if specified conditions are met. Specifically, this bill:

1. Allows State Parks to dispose of the 3,100-acres known as the Expansion Area and to permanently preserve the land for conservation purposes if, after holding a public hearing and consulting with stakeholders, State Parks determines that disposing of it is in the public interest.
2. Provides that State Parks may dispose of the Expansion Area without following requirements in existing law that apply to the sale of state-owned surplus property.
3. Permits the Department of General Services (DGS), if State Parks makes the public interest determination required above, to sell the Expansion Area or otherwise dispose of the land upon any terms and conditions and subject to any reservations and exceptions DGS deems to be in the best interests of the state.
4. Requires DGS to sell the Expansion Area only to a local agency or nonprofit organization for use as a park or other open-space purpose for no less than the original purchase price based on the actual parcels to be included in the sale.
5. Defines "park or other open-space" for purposes of this bill.
6. Requires any revenue from the disposition of the Expansion Area to, upon appropriation by the Legislature, first be used to reimburse DGS for any cost or expense incurred in the disposition of the land, and then any remaining revenue to be deposited in the Off-Highway Vehicle Trust Fund (OHV Fund).

EXISTING LAW:

1. Creates the Division of Off-Highway Motor Vehicle Recreation within State Parks to provide planning, acquisition, development, conservation, and restoration of lands in SVRAs.
2. Establishes the OHV Fund to be the repository of certain moneys, including fees received by State Parks for the use of OHV recreation in SVRAs.
   
3. Establishes a process administered by DGS for the disposal of state-owned property that has been declared surplus to an agency's needs.
   

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. One-time costs to DGS of approximately $50,000 to $75,000 for staff time related to the sale of the property. These costs would be passed on to State Parks. (OHV Fund)
   
2. One-time costs to State Parks of approximately $40,000 to conduct up to four public hearings to consider whether disposing of the property is in the public interest. (OHV Fund)
   
3. Unknown, potentially significant foregone revenues related to the sale of the Expansion Area, to the extent the property is sold for less than fair market value for use as a permanent land conservation purpose, as specified. The sale price must be at least $9 million, so the impacts would be the difference between fair market value, as determined under current law for surplus state property, and the ultimate sale price, which must be found to be in the state’s best interests. (OHV Fund)

COMMENTS: This bill authorizes, but does not require, State Parks to dispose of the 3,100-acre Expansion Area in the Carnegie SVRA and to permanently preserve the land for conservation purposes. The Carnegie SVRA is located in both San Joaquin and Alameda counties. The 3,100 acres that are the subject of this bill lie entirely in Alameda County.

This bill allows State Parks to dispose of the Expansion Area if State Parks determines that doing so is in the public interest after holding a public hearing and consulting with stakeholders. DGS would also have to deem it to be in the best interests of the state. DGS would then be required to sell the property only to a local agency or nonprofit organization for use as a park or another open-space purpose. The sale price would have to at least be the original purchase price based on the actual parcels to be included in the sale.

State Parks reports that, to date, none of the Expansion Area is, or ever has been, open to the public for any purpose. In October 2016, State Parks approved the General Plan (GP) for the entire Carnegie SVRA after a comprehensive public input process that began in February 2012. The GP includes State Parks' current and proposed uses for the Expansion Area. It states that State Parks has used comprehensive mapping criteria to determine that 2,000 acres of the Expansion Area are appropriate for OHV use while the remaining 1,100 acres have been identified by State Parks as unsuitable for OHV recreation due to the presence of sensitive cultural and natural resources. State Parks' uses for the Expansion Area as described in the GP appear to conflict with the approach that would be authorized under this bill.

Although permissive in nature, this bill creates an alternative process for disposing of state-owned land for a specific purpose when the affected agency identifies an existing use for it. Current law generally provides for the disposal of state-owned property when the affected agency declares it surplus to the agency's needs. Under current law, the property is then transferred to DGS, which is required to determine if it is needed by any other state agency. If it does not have state agency re-use, the property must then be offered to local agencies, then to nonprofit affordable housing sponsors, prior to being offered for sale to private entities or individuals. A similar vetting process does not exist in this bill.

State Parks purchased the Expansion Area using money from the OHV Fund.  According to existing law in the Public Resources Code, the money from this fund is required to be used to support State Parks in carrying out its OHV program and for activities that support conserving and restoring land in the SVRA system.  If all of the conditions in this bill are met, the entire 3,100 acres of the property would be designated for open-space and parks purposes unrelated to OHV recreation.

Supporters argue this bill is a local measure intended to preserve potential parkland with highly sensitive natural and cultural resources and revenue from a sale would be returned to the OHV Fund.

Opponents contend that the purchase of this land using OHV funds necessitates its use as a motorized park and this property should be managed at the state level regardless of local considerations.

PRIOR LEGISLATION: SB 1316 (Glazer) of 2018 was substantially similar to this bill. It was held on the Assembly Appropriations Committee Suspense File.

DOUBLE-REFERRAL: This bill was previously heard in the Assembly Water, Parks, and Wildlife Committee on June 18, 2019, with a vote of 9-4.

REGISTERED SUPPORT / OPPOSITION:

Support

Alameda County Board of Supervisors
Alameda County Resource Conservation District
Alameda Creek Alliance
Altamont Landfill Open Space Committee
California Native Grasslands Association
California Native Plant Society
California Native Plant Society, East Bay Chapter
California Wildlife Foundation
Castro Valley Huddle
Center for Biological Diversity
Citizens Committee to Complete the Refuge
City of Livermore
Confederated Villages of Lisjan
County of Alameda
Davis-King & Associates
Delta-Sierra Group, Mother Lode Chapter
East Alameda County Ranchers
East Bay Regional Park District
Friends of Livermore
Friends of Open Space and Vineyards
Friends of Tesla Park
Friends of the Arroyo
Greenbelt Alliance
Livermore Area Recreation and Park District
Livermore Heritage Guild
Livermore Hill Hikers
Metropolitan Horsemen's Association
Mount Diablo Audubon Society
The Nature Conservancy
Northern Valley Yokuts Tribe and Nototomne Cultural Preservation
Ohlone Audubon Society
Regional Parks Association
San Joaquin Audubon Society
Save Mount Diablo
SAVE THE FROGS!
Sierra Club California
Sierra Club San Francisco Bay Chapter
Society of American Indians
Tesla Road Residents Alliance
Tri-Valley Conservancy
Tri-Valley Trailblazers

Oppose

American Brotherhood Aimed Towards Education of California, Inc.
American Motorcyclist Association
Bay Area Riders Forum
California Off-Road Vehicle Association
California Motorcycle Dealers Association
Coalition for Public Access
District 36 Motorcycle Sports Committee, Inc.
Off Road Business Association
Off Road Vehicle Legislative Coalition
Specialty Equipment Market Association

Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600

Date of Hearing: June 18, 2019

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Eduardo Garcia, Chair

SBPCA Bill Id:SB 767

Author:(Glazer) – As Introduced Ver:February 22, 2019

SENATE VOTE: 28-10

SUBJECT: Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

SUMMARY: This bill would authorize, but not require, the sale of a state property should it be determined to be in the public interest. Specifically, this bill:

1. Authorizes the Department of Parks and Recreation (State Parks) to dispose of the portion of the Carnegie State Vehicular Recreation Area (SVRA) known as the “Alameda-Tesla Expansion Area,” to permanently preserve that land for conservation purposes, if State Parks, after holding a public hearing and consultations with stakeholders, determines that disposing of the land is in the public interest.
2. Authorizes, after determination by State Parks, the Department of General Services (DGS) to sell the land or otherwise dispose of the land.
3. Authorizes DGS to transfer the land to a local agency for not less than the original parcel price based on the actual parcels to be included in the sale.
4. Defines “open space” to mean a use of the land’s natural resources that is consistent with a conservation purpose, including preservation of native biological diversity, wildlife habitats, and cultural resources, the enjoyment of scenic beauty, and non-motorized public recreation.
5. Requires any revenue from the disposition of the land to be deposited in the Off-Highway Vehicle (OHV) Fund.

EXISTING LAW:

1. Creates, through the Off-Highway Motor Vehicle Recreation Act of 2003 (Act), the Division of Off-Highway Motor Vehicle Recreation (division) within State Parks. The division plans and acquires lands in State Vehicular Recreation Areas (SVRA) which are units within the state park system. [Public Resources Code (PRC) §5090.41 et. seq.]
2. Creates the Off-Highway Vehicle Trust Fund (Fund) as a repository for certain transportation related revenues, which includes revenues for various purposes related to off-highway vehicles. The Fund is also used to support the division and to conduct its other activities including the acquisition, development, conservation and restoration of lands within state vehicular recreation areas (SVRA). (PRC §5090.60-5090.61)
3. Declares public safety, the appropriate use of lands, and the conservation of lands as the highest priorities for management of SVRAs. (PRC §5090.35)
4. Provides a mechanism in the Government Code (beginning at Sec. 11011) for the disposal of surplus lands that are administered by the Department of General Services (DGS), including any surplus lands owned by State Parks. (Government Code §11011 et seq.)

FISCAL EFFECT: Unknown, this bill is keyed fiscal.

COMMENTS:

Author’s Statement:

Tesla Park is an extraordinary part of the San Francisco East Bay Area’s natural and cultural history. Named for the historic 19th Century town of Tesla, the park is identified by local agencies, officials, and community organizations as a preservation priority because it is located in the transition of biotic zones and a habitat corridor. It holds exceptional and irreplaceable natural and cultural features that are vital to San Francisco East Bay Area regional conservation objectives, including as a habitat for Tule Elk, Golden Eagle, Red-Legged Frogs and Tiger Salamanders. The East Bay Chapter of the California Native Plant Society has designated Tesla Park area as one of its top Botanical Priority Protection Areas

My bill, SB 767 addresses an almost 20 year controversy by simply giving the Department of Parks and Recreation the option to sell the portion of the Carnegie State Vehicular Recreation Area known as the “Alameda-Tesla Expansion” for conservation purposes, if the department determines that disposing of that land is in the public interest.

Rather than continuing the local controversy and ongoing litigation, SB 767 provides the path to resolve the local dispute in a manner that is wise and fair – good for the State, good for the public, and good for the environment.

It does not speak to the activity of off road riding and it does not take away the current off highway vehicle park. This bill would simply empower the Department of Parks and Recreation to decide the future of this proposed expansion area.

Background: In 1971, the Off-Highway Motor Vehicle Recreation Program was established to manage off-highway vehicle recreation in a manner that ensures the public has access to this form of recreation while also protecting California’s natural and cultural resources. The program is administered as a division (OHV division) within State Parks. The OHV division manages 9 State Vehicle Recreation Areas (SVRAs) and provides state funding support for non-state off-highway vehicle (OHV) facilities through a grants program. The OHV division is aided in implementing the program by a nine member Off-Highway Motor Vehicle Recreation Commission, which is appointed jointly by the Governor, the Senate and the Assembly.

The program is funded by fees collected from users of SVRAs, vehicle registration fees, and fuel taxes associated with off-highway motor vehicle recreation. These funds are deposited into the Off-Highway Vehicle Trust Fund. Upon appropriation by the Legislature, up to 50 percent of the fund may be used for a grants program and the remaining is generally available to the division for implementing the program and managing SVRAs.

History of the Property. Carnegie SVRA was added to the State Park system as an SVRA in July 1980. The park is named for the former town of Carnegie which was a mining and brick-making town at the turn of the 20^th century. The site was operated as a private motorcycle park from 1970 until 1979, before the department purchased it using OHV Trust Funds. Legislative action (PRC Section 5006.48) authorized State Parks to plan, acquire, and develop the site for OHV use. From 1996 to 1998, State Parks used OHV Funds to acquire an additional 3,100 acres of adjacent property in Alameda County to provide additional OHV recreation opportunities. This additional acreage is known as the “Alameda-Tesla Expansion Area.” The expansion was classified as SVRA lands and added to Carnegie SVRA. An acquisition Environmental Impact Report (EIR) was not conducted prior to the purchase of the Alameda-Tesla Expansion Area.

Acquiring the Expansion and Updating the General Plan. The OHV division has traditionally approved the statutorily-required general plans that guide the management of state properties. In 2016, after two prior EIRs, the commission approved a General Plan and certified the EIR which incorporated the Alameda-Tesla Expansion Area into the Carnegie SVRA General Plan.

Several issues were raised during the General Plan for which State Parks issued statements of overriding consideration. These included air quality issues, traffic, historic sites, tribal issues and others. Several lawsuits have been filed against the expansion including from the County of Alameda challenging the CEQA approvals. These have not been resolved.

Legislators Request State Parks Consider Sale. On July 20, 2017, a coalition of 16 local legislators (Senate and Assembly) wrote to the Director of State Parks encouraging the department to work with local stakeholders to explore the option of selling the land set aside for expansion. The letter discusses the “protracted and expensive process, with more than $9 million in acquisition costs—plus the expense of the EIR. With four lawsuits challenging the EIR, additional legal costs will likely add hundreds of thousands of dollars to this bill.”

The letter acknowledged that circumstances may have changed in the 20 years since the purchase and that a greater understanding of the historic and preservation values of the land may be now known. They list a number of reasons to recapture the project costs of the acquisition (by negotiating with a willing seller to acquire the property for conservation), most of which were outlined in the acquisition EIR including that scientific studies have long documented the rare ecological value of the area which contains an abundance of highly sensitive natural resources, including native biological diversity, a critical linkage habitat corridor, unique vegetation assemblages and wildlife habitats. The area also holds important cultural resources from the historic Tesla town site and mine complex to exceptional historic Californian features.

The Director of State Parks responded to this letter stating, “the Expansion Area at Carnegie SVRA does not meet the statutory criteria to be considered surplus property and therefore transferred to the Department of General Services.” The letter discusses the process for development of the General Plan and EIR for Carnegie SVRA, and the public process used to get to this point. However, the State Parks director states, “While the General Plan and EIR are important milestones for Carnegie SVRA, they are not the final planning documents for the park. There will be additional opportunities for public comment as the Department complies with the CEQA process to develop road and trail plans for this property.”

In her response, the State Parks director specifically references Government Code §11011 which articulates the circumstances under which a state agency may request divestiture of state surplus property and the process the agency must follow when making this request. Significant criteria are as follows:

1. Land not currently being utilized, or currently being underutilized, by the state agency for any existing or ongoing state program.
2. Land for which the state agency has not identified any specific utilization relative to future programmatic needs.
3. Land not identified by a state agency within its master plans for facility development.

Local Government Opposition to Expansion. In addition to communication from the legislators regarding the expansion, the County of Alameda Board of Supervisors voted in 2015 unanimously to oppose the expansion of Carnegie. They cite a conflict with the county’s policies relative to environment and natural habitats. The board is one of several groups suing to stop the expansion of the park.

Necessity of the Bill—Does this Bill Require the Sale of Carnegie? This bill would allow (not mandate) the sale of the Alameda-Tesla expansion for conservation purposes if State Parks determines that disposing of the land is in the public interest.

Prior and Related Legislation: SB 249 (Allen) Chapter 459, Statutes of 2017, extended, indefinitely, the OHV Program and made various other changes to the Off-Highway Motor Vehicle Recreation Act. SB 1316 (Glazer, 2018) was substantially similar to this bill. SB 1316 died in Assembly Appropriations.

Double Referral: Various laws have authorized the DGS to dispose of specified surplus state property. These will be discussed in greater detail upon referral to the Assembly Accountability and Administrative Review Committee.

Considerations for Future Use of the Property: There are a number of alternatives available to the Legislature and the Administration with regard to the disposition of the expansion area, given that this issue has been ongoing for a number of years with little resolution on either side. These options would allow the state to retain the property for general park use. The Committee suggests the author consider any or all of the following options if this bill is unsuccessful:

1. Designate the Property as a State Recreation Area with Access Limitations. Certain lands owned by state (and sometimes local or federal agencies in partnership with the state) are used by specific groups in designated areas. For example, Auburn State Recreation Area (SRA) includes facilities for camping, hunting, fishing, whitewater rafting, hiking, biking and equestrian, and OHV use. Within Auburn SRA is Mammoth Bar OHV Area which is only open to OHV use (Ride Days) April 1st-September 30th (Sunday, Monday, and Thursday), and October 1st-March 31st (Sunday, Monday, Thursday, and Friday). Mammoth Bar remains open to non-motorized recreation activities on OHV closure days. Using a model like this, and with the engagement of the State Parks and Recreation Commission, a compromise might considered for the property.

2. Require State Parks to Designate a Greater Portion of the Expansion as Non-Motorized. Clearly there is an interest in retaining a significant portion of the expansion area as non-motorized. Hollister Hills SVRA provides an example of this by designating 300 acres within the Lower Ranch area of the park as multi-use trails for hiking, bicycling, bird watching and dog walking. Mudstone Ranch, also within Hollister Hills SVRA, includes 13 miles of multi-use trails, and is available for equestrian, hikers and mountain bikers and is closed to motorized use. The author could require State Parks to designate specific areas of the park as non-motorized or conservation.

Arguments in Support: Those in support of the bill argue that this is a local measure affecting highly sensitive natural and cultural resources located in Alameda County (where the expansion area is located). They argue this property, as included, is characterized as potential parkland in the regional park district maps. This bill would provide a mechanism to resolve the long-standing local controversy and return funds to the OHV division.

Arguments in Opposition: Those in opposition argue that this area of the state is long overdue for increased motorized recreation opportunities and that the purchase of this land using OHV funds necessitates its use as a motorized park. Others argue that this property should be managed at the state level regardless of local considerations. Some in opposition recognize the need for a reasonable and transparent discussion, or the subject will be returned to annually.

REGISTERED SUPPORT / OPPOSITION:

Support

5 East Alameda County Ranchers

Alameda County Resource Conservation District

Alameda Creek Alliance

Altamont Landfill Open Space Committee

California Native Grasslands Association

California Native Plant Society

California Native Plant Society - East Bay Chapter

California Wildlife Foundation

Center for Biological Diversity

Citizens Committee to Complete the Refuge

City of Livermore

Confederated Villages of Lisjan

County of Alameda

Davis-King & Associates

Delta-Sierra Group of the Sierra Club

East Bay Regional Park District

Friends of Livermore

Friends of Open Space and Vineyards

Friends of Tesla Park

Friends of the Arroyos

Greenbelt Alliance

Livermore Area Recreation and Park District

Livermore Heritage Guild

Livermore Hill Hikers

Metropolitan Horsemen's Association

Mount Diablo Audubon Society

Nature Conservancy, The

Nototomne Cultural Preservation

Ohlone Audubon Society, Inc.

Regional Parks Association

San Joaquin Audubon Society

Save Mount Diablo

SAVE THE FROGS!

Sierra Club California

Sierra Club San Francisco Bay Chapter

Society of American Indians

Tesla Road Residents Alliance

Tri-Valley Conservancy

Tri-Valley Trailblazers

Individuals (2)

Opposition

ABATE of California, Inc.

American Motorcyclist Association

Bay Area Riders Forum

California Motorcycle Dealers Association

California Off-Road Vehicle Association

Coalition for Public Access

District 36 Motorcycle Sports Committee, Inc.

Off Road Business Association

Off Road Vehicle Legislative Coalition

Specialty Equipment Market Association

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

 THIRD READING  

Bill No: SB 767

Author: Glazer (D), et al.

Introduced: 2/22/19

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 6-2, 4/9/19

AYES: Stern, Allen, Caballero, Hertzberg, Jackson, Monning

NOES: Jones, Borgeas

NO VOTE RECORDED: Hueso

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-3, 4/23/19

AYES: Dodd, Allen, Archuleta, Bradford, Galgiani, Glazer, Hill, Portantino, Rubio, Wiener

NOES: Wilk, Jones, Nielsen

NO VOTE RECORDED: Borgeas, Chang, Hueso

SENATE APPROPRIATIONS COMMITTEE: 4-2, 5/16/19

AYES: Portantino, Bradford, Hill, Wieckowski

NOES: Bates, Jones

SUBJECT: Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

SOURCE: Author

DIGEST:

This bill authorizes the Department of Parks and Recreation to dispose of a specified portion of the Carnegie State Vehicular Recreation Area to permanently preserve the land for conservation purposes; and provides that the sale of the property must be found to be in the public interest, and deemed to be in the best interests of the state, as specified, and the property may only be sold to a local agency or nonprofit organization at no less than the original purchase price.

ANALYSIS:

Existing law:

1. Creates, through the Off-Highway Motor Vehicle Recreation Act of 2003, the Division of Off-Highway Motor Vehicle Recreation (division) within State Parks. The division plans and acquires lands in state vehicular recreation areas (SVRAs) which are units within the state park system.
2. Creates the Off-Highway Vehicle Trust Fund (OHV Fund) as a repository for certain transportation related revenues, which includes revenues for various purposes related to off-highway vehicles. The OHV Fund is also used to support the division and to conduct its other activities including the acquisition, development, conservation and restoration of lands within SVRAs.
3. Declares public safety, the appropriate use of lands, and the conservation of lands as the highest priorities for management of SVRAs.
4. Provides a mechanism in the Government Code (beginning at Sec. 11011) for the disposal of surplus lands that are administered by the Department of General Services (DGS), including any surplus lands owned by the California Department of Parks and Recreation (DPR).
5. Establishes, since 1971, the Off-Highway Motor Vehicle Recreation program to manage off-highway vehicle recreation in a manner that ensures the public has access to this form of recreation while also protecting California’s natural and cultural resources. The program is administered as a division (OHV division) within DPR. The OHV division manages nine SVRAs and provides state funding support for non-state off-highway vehicle (OHV) facilities through a grants program. The OHV division is aided in implementing the program by a nine member Off-Highway Motor Vehicle Recreation Commission, which is appointed jointly by the Governor, the Senate and the Assembly.
6. Provides funding for the OHV program by fees collected from users of SVRAs, vehicle registration fees, and fuel taxes associated with off-highway motor vehicle recreation. These funds are deposited into the OHV Fund. Upon appropriation by the Legislature, up to 50% of the OHV Fund may be used for a grants program and the remaining is generally available to the division for implementing the program and managing SVRAs.

This bill:

1. Exempts DPR from specified provisions that apply to this sale of state-owned surplus property.
2. Authorizes DPR to permanently preserve the land for conservation purposes by sale of a perpetual recorded conservation easement deed restriction or fee title, if it determines that disposing of the land is in the public interest after holding public hearings and consulting with stakeholders.
3. Authorizes DGS, if DPR determines that disposing of the land is in the public interest, to sell the land or otherwise dispose of the land upon any terms and conditions and subject to any reservations and exceptions DGS deems to be in the best interests of the state.
4. Requires DGS to sell the land only to a local agency or nonprofit organization for use as a park or for another open-space purpose, and for no less than the original purchase price, as specified.
5. Defines “park or other open-space purpose” as use of the land’s natural resources that is consistent with a conservation purpose, including preservation of native biological diversity, wildlife habitats, and cultural resources, enjoyment of scenic beauty, and non-motorized public recreation.
6. Requires any revenue from the disposition of the land to be deposited in the OHV Fund.

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

According to the Senate Appropriations Committee, there are potential costs to the DGS as follows: (a) one-time costs to DGS of approximately $50,000 to $75,000 for staff time related to the sale of the property. These costs would be passed on to DPR. (OHV Fund); (b) One-time costs to DPR of approximately $40,000 to conduct up to four public hearings to consider whether disposing of the property is in the public interest. (OHV Fund); (c) Unknown, potentially significant one-time costs for DPR amend the SVRA general plan to account for the sale of the Alameda-Tesla Expansion Area. (OHV Fund); and (d) Unknown, potentially significant foregone revenues related to the sale of the Alameda-Tesla Expansion Area portion of the Carnegie SVRA, to the extent the property is sold for less than fair market value for use as a permanent land conservation purpose, as specified. The sale price must be at least $9 million, so the impacts would be the difference between fair market value, as determined under current law for surplus state property, and the ultimate sale price, which must be found to be in the state’s best interests. (OHV Fund)

SUPPORT: (Verified 5/16/19)

Alameda County Board of Supervisors

Alameda County Resource Conservation District

Alameda Creek Alliance

Altamont Landfill Open Space Committee

California Native Grasslands Association

California Native Plant Society

California Native Plant Society, East Bay Chapter

California Wildlife Foundation

Center for Biological Diversity

Citizens Committee to Complete the Refuge

City of Livermore

Confederated Villages of Lisjan

County of Alameda

Davis-King & Associates

Delta-Sierra Group of the Sierra Club

East Alameda County Ranchers

East Bay Regional Park District

Friends of Livermore

Friends of Open Space and Vineyards

Friends of Tesla Park

Friends of the Arroyos

Greenbelt Alliance

Livermore Area Recreation and Park District

Livermore Heritage Guild

Livermore Hill Hikers

Mount Diablo Audubon Society

Northern Valley Yokut Tribe

Ohlone Audubon Society, Inc.

Regional Parks Association

San Joaquin Audubon Society

Save Mount Diablo

SAVE THE FROGS!

Sierra Club California

Society of American Indians

Tesla Road Residents Alliance

The Nature Conservancy

Tri-Valley Conservancy

Tri-Valley Trailblazers Club

OPPOSITION: (Verified 5/16/19)

ABATE of California

American Motorcyclist Association

Bay Area Riders Forum

California Motorcycle Dealers Association

California Off-Road Vehicle Association

Coalition for Public Access

District 36 Motorcycle Sports Committee, Inc.

Off Road Business Association

Off Road Vehicle Legislative Coalition

Specialty Equipment Market Association

ARGUMENTS IN SUPPORT: According to the author’s office, “SB 767 addresses an almost 20 year controversy by simply giving DPR the option to sell the portion of the Carnegie SVRA known as the ‘Alameda-Tesla Expansion’ for conservation purposes, if DPR determines that disposing of that land is in the public interest. Rather, than continuing the local controversy and ongoing litigation, SB 767 provides the path to resolve the local dispute in a manner that is wise and fair – good for the state, good for the public, and good for the environment.”

Other supporters argue that this is a local measure affecting highly sensitive natural and cultural resources located in Alameda County (where the expansion area is located). They argue that local opposition has been strong for nearly 20 years, in which time scientific studies have long documented a variety of ecological and cultural resources that would not be conducive to off-highway vehicle use. In addition to the local agencies supporting the bill, other local agencies note the availability of funds from a local open space committee for the purchase of the property.

ARGUMENTS IN OPPOSITION: According to the California Motorcycle Dealers Association, “SB 767 unfairly provides that the expansion area be sold for, at least, the amount that the state paid for it, but does not guarantee a sale price at its current market value. The property’s value has likely increased exponentially over 21 years so selling it in a distress sale, would, at a minimum, deprive California of earned appreciation for no substantial reason.”

The Off Road Vehicle Legislative Coalition, “strongly opposes this bill that would deny opportunities for local Bay Area residents, including the elderly and disabled and motorized recreation enthusiasts. The land in question was purchased using funds from the OHV Fund, with agreement as to the future purpose of the land signed by adjacent landowners. SB 767 proposes the Alameda-Tesla Expansion Area should be under the control of the privileged instead of the proven stewardship of State Parks. The Transfer of the land from the State Parks to some sort of public/private Partnership would also serve to eliminate the security of state law insuring inclusiveness and access for all Californians.”

Prepared by: William Craven / N.R. & W. / (916) 651-4116

5/18/19 13:14:17

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 767 (Glazer) - Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

Bill Summary:

SB 767 would authorize the Department of Parks and Recreation (DPR) to dispose of a specified portion of the Carnegie State Vehicular Recreation Area (SVRA) to permanently preserve the land for conservation purposes. The sale of the property must be found to be in the public interest, and deemed to be in the best interests of the state, as specified, and the property may only be sold to a local agency or nonprofit organization at no less than the original purchase price.

Fiscal Impact:

• One-time costs to the Department of General Services (DGS) of approximately $50,000 to $75,000 for staff time related to the sale of the property. These costs would be passed on to DPR. (Off-Highway Vehicle Trust Fund)
  
• One-time costs to DPR of approximately $40,000 to conduct up to four public hearings to consider whether disposing of the property is in the public interest. (Off-Highway Vehicle Trust Fund)
  
• Unknown, potentially significant one-time costs for DPR amend the SVRA general plan to account for the sale of the Alameda-Tesla Expansion Area. (Off-Highway Vehicle Trust Fund)
  
• Unknown, potentially significant foregone revenues related to the sale of the Alameda-Tesla Expansion Area portion of the Carnegie SVRA, to the extent the property is sold for less than fair market value for use as a permanent land conservation purpose, as specified. The sale price must be at least $9 million, so the impacts would be the difference between fair market value, as determined under current law for surplus state property, and the ultimate sale price, which must be found to be in the state’s best interests. (Off-Highway Vehicle Trust Fund)

Background:

Existing law authorizes DGS to dispose of state real property declared surplus by the Legislature by sale, lease, exchange, or any other manner, and upon terms deemed to be in the state’s best interests. If surplus property is not needed by any other state agency, it must first be offered to local agencies, then to nonprofit affordable housing sponsors, prior to being offered for sale to private entities or individuals. DGS is generally required to sell surplus property at fair market value, except in specified circumstances for affordable housing or parks and open-space purposes. If surplus state property is transferred to a local agency for less than fair market value for parks or open-space purposes, existing law requires that the property revert to the state if the property use changes to a non-park or open space purpose within a 25 year period following the property transfer.

Existing law establishes the Division of Off-Highway Motor Vehicle Recreation (OHMVR) within DPR. The OHMVR Division is required to provide planning, acquisition, development, conservation, and restoration of lands in state vehicular recreation areas. Existing law establishes the Off-Highway Vehicle Trust Fund (OHV Fund). Monies deposited into the OHV Fund are generated by user fees associated with off-highway vehicle (OHV) recreation, including: fuel taxes from gasoline consumed during off-highway recreation on public lands, OHV registration fees, entrance fees generated at the SVRAs, and interest and miscellaneous income. Revenues in the OHV Fund are available, upon appropriation, for grants and cooperative agreements, as specified.

The Carnegie SVRA is located in Alameda and San Joaquin Counties approximately 60 miles southeast of San Francisco, 12 miles East of Livermore, and 12 miles southwest of Tracy. The Carnegie SVRA became a unit of the State park system in July 1980. The original 1,575 acre site, which had been used by OHVs since the 1940s, was operated as a private motorcycle park from 1970-1979 before being purchased by DPR using OHV funds.

Legislative Action authorized DPR to plan, acquire, and develop the site for OHV use. Over the course of several years between 1996 and 1998, DPR purchased 3,100 acres adjacent to the Carnegie SVRA in Alameda County in seven acquisitions for $8,963,000 using money from the OHV Fund. The additional land was classified as SVRA lands and added to Carnegie SVRA. This additional land is known as the “Alameda-Tesla Expansion Area.”

This expansion has been controversial and opposed by both the local government and conservation groups, but supported by OHV users. It has received considerable input from OHV user groups, adjacent landowners and a variety of regulatory agencies. The expansion property also contains sensitive cultural and natural resources. As such, it took the OHMVR Division nearly three attempts and almost 20 years to finally certify its EIR and adopt a general plan by October of 2016. This action has been challenged in three separate lawsuits that have yet to be decided.

In 2017, a group of 16 local legislators wrote the Director of DPR to encourage the department to work with local stakeholders to explore the option of selling the land set aside for expansion. The Director’s response noted that the Expansion Area at Carnegie SVRA does not meet the statutory criteria to be considered surplus property that may be sold.

Proposed Law:

SB 767 would authorize DPR to dispose of the Alameda-Tesla Expansion Area to permanently preserve the land for conservation purposes, if it determines that disposing of the land is in the public interest, and DGS specifies terms and conditions that are deemed to be in the best interests of the state. Specifically, this bill would:

• Authorize DPR to dispose of the property without following procedures and requirements in existing law that apply to the sale of state-owned surplus property.
• Authorize DPR to permanently preserve the land for conservation purposes by sale of a perpetual recorded conservation easement deed restriction or fee title, if it determines that disposing of the land is in the public interest after holding public hearings and consulting with stakeholders.
• Authorize DGS, if DPR determines that disposing of the land is in the public interest, to sell the land or otherwise dispose of the land upon any terms and conditions and subject to any reservations and exceptions DGS deems to be in the best interests of the state.
• Require DGS to sell the land only to a local agency or nonprofit organization for use as a park or for another open-space purpose, and for no less than the original purchase price, as specified.
• Define “park or other open-space purpose” as use of the land’s natural resources that is consistent with a conservation purpose, including preservation of native biological diversity, wildlife habitats, and cultural resources, enjoyment of scenic beauty, and nonmotorized public recreation.
• Require any revenue from the disposition of the land to be deposited in the OHV Fund.

Related Legislation:

SB 1316 (Glazer), which was held on the Assembly Appropriations Committee’s Suspense File last year, was substantially similar to this bill.

Staff Comments:

This bill authorizes the sale of the Alameda-Tesla Expansion Area property for at least the original purchase price of approximately $9 million, and requires it to be sold to a local agency or nonprofit organization exclusively for use as a park or other open-space purpose. The current fair market value is unknown, but to the extent the property is sold for a lower price than would otherwise have been paid through the process specified in existing law for disposing of surplus property, this bill would result in a forgone revenue loss. The magnitude of potential losses is unknown, but likely significant, as the value of the property has likely increased over the past 20-plus years since it was originally purchased. Staff notes that it is unlikely that the sale price would be sufficient to acquire an equivalent replacement property.

The analysis from the Senate Natural Resources and Water Committee’s notes the following:

In an interesting (but similarly contentious) chapter of Alameda County history, litigation over expansion of the Altamont landfill resulted in a settlement in which a percentage of the tipping fee is allocated as mitigation funds with open space preservation as one defined and eligible option for the use of these funds. The case was settled after the expansion was cut in half and the tipping fees were imposed. Under the settlement, 60 percent of the tipping fees are for open space preservation with another 20 percent for recycling programs, and 20 percent for other community amenities.

The settlement established an entity composed of the county, the cities of Livermore and Pleasanton, and the Sierra Club all of whom were plaintiffs in the case against the landfill. This entity is called the Altamont Landfill Open Space Committee (ALSOC). The percentage of the tipping fee is allocated on an 80%-20% basis between eastern and western Alameda County respectively. The fund for eastern Alameda County (where the SVRA is located) currently contains about $12 million which could be available for the bill’s purposes. ALSOC has voted to support this legislation.

Absent the bill, the state would likely incur additional ongoing litigation costs related to the final disposition of the Alameda-Tesla Expansion Area.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2019 - 2020 Regular

Bill No: SB 767 Hearing Date: 4/23/2019

SUBJECT: Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

DIGEST: This bill authorizes the Department of Parks and Recreation (DPR) to dispose of the portion of the Carnegie State Vehicular Recreation Area (SVRA) known as the “Alameda-Tesla Expansion Area” to permanently preserve the land for conservation purposes, as specified, if DPR determines that disposing of the land is in the public interest.

ANALYSIS:

Existing law:

1. Creates the Division of Off-Highway Motor Vehicle Recreation (OHMVR Division) within DPR.
2. Requires the OHMVR Division to provide planning, acquisition, development, conservation, and restoration of lands in state vehicular recreation areas.
3. Establishes the Off-Highway Vehicle Trust Fund (OHV Trust Fund) to be the repository of certain moneys, including fees received by DPR for the use of state vehicular recreation areas.
4. Requires revenues in the OHV Trust Fund to be available, upon appropriation, for grants and cooperative agreements, as specified.
5. Authorizes the Department of General Services (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 that DGS determines are in the best interest of the state.
6. Establishes criteria for state agencies to use in determining and reporting excess lands. A state agency must report land as surplus that is:
   1. Not currently utilized, or is underutilized, for any existing or ongoing programs;
   2. Land for which the agency cannot identify a specific utilization relative to future needs; and,
   3. Land not identified by the state agency within its master plan for facility development.
7. Requires DGS to dispose of surplus state real property in a specified manner, and prescribes the priority of disposition of the property before DGS may offer it for sale to private entities or individuals.
8. Authorizes DGS to sell surplus real property to a local agency or to a nonprofit affordable housing sponsor for affordable housing projects at a sales price less than fair market value if DGS determines that such a discount will enable housing for persons and families of low or moderate income
9. Authorizes DGS to transfer surplus state property to a local agency for less than fair market value if the local agency uses the surplus state real property for parks or open-space purposes.
10. Requires, unless otherwise specified by law, that the proceeds from the sale of surplus state property be used to pay the principal and interest on the Economic Recovery Bond Act of 2004.

This bill:

1. Authorizes DPR to dispose of the portion of the Carnegie State Vehicular Recreation Area known as the “Alameda-Tesla Expansion Area,” which encompasses approximately 3,100 acres in the County of Alameda to permanently preserve that land for conservation purposes, as specified, if the DPR, after holding a public hearing on the matter and in consultation with stakeholders, determines that disposing of the land is in the public interest.
2. Authorizes, if DPR determines that disposing of the land is in the public interest, DGS to sell the land or otherwise dispose of the land upon terms and conditions and subject to any reservation and exceptions that DGS deems to be in the best interests of the state.
3. Requires DGS to sell the land to a local agency or nonprofit organization for use as a park or other open space purpose.
4. Requires the land to be sold for no less than the original purchase price based on the actual parcels to be included in the sale.
5. Defines, “park or other open-space purpose,” for purposes of this bill, to mean a use of the land’s natural resources that is consistent with a conversation purpose, including preservation of native biological diversity, wildlife habitats, and cultural resources, the enjoyment of scenic beauty, and nonmotorized public recreation.
6. Requires any revenue from the disposition of the land to be deposited in the OHV Trust Fund.

Background

Purpose of the bill. According to the author’s office, “SB 767 addresses an almost 20 year controversy by simply giving DPR the option to sell the portion of the Carnegie SVRA known as the ‘Alameda-Tesla Expansion’ for conservation purposes, if DPR determines that disposing of that land is in the public interest. Rather, than continuing the local controversy and ongoing litigation, SB 767 provides the path to resolve the local dispute in a manner that is wise and fair – good for the state, good for the public, and good for the environment.”

Additionally, the author’s office states that the bill, “does not speak to the activity of off road riding and it does not take away the current off highway vehicle park. This bill would simply empower DPR to decide the future of this proposed expansion.”

Carnegie State Vehicular Recreation Area. The Carnegie SVRA is located in Alameda and San Joaquin Counties approximately 60 miles southeast of San Francisco, 12 miles East of Livermore, and 12 miles southwest of Tracy. The Carnegie SVRA became a unit of the State park system in July 1980. The original 1,575 acre site, which had been used by off-highway vehicles (OHVs) since the 1940s, was operated as a private motorcycle park from 1970-1979 before being purchased by DPR using OHV Trust funds.

Legislative action authorized DPR to plan, acquire, and develop the site for OHV use. Over the course of several years, DPR purchased 3,100 acres adjacent to the Carnegie SVRA in Alameda County for approximately $9 million using money from the OHV Fund. The additional land was classified as SVRA lands and added to Carnegie SVRA. This additional land is known as the “Alameda-Tesla Expansion Area.”

This expansion has been controversial as both local governments and members of the public have opposed the expansion. It has received considerable input from OHV user groups, adjacent landowners and a variety of regulatory agencies. The expansion property also contains sensitive cultural and natural resources. As such, it took the OHMVR Division three attempts and almost 20 years to finally certify its environmental impact report and adopt a general plan. This action has been challenged in three separate lawsuits that have yet to be decided.

On July 20, 2017, a coalition of 16 Bay Area legislators wrote a letter to DPR asking the Director of DPR to consider disposing of the property. The Director replied that such a sale does not comply with the statutory criteria under current law. In other words, current law does not allow for the disposition of the property because it is not surplus property. The Director also commented that the approval of the general plan and the environmental document are necessary steps to expanding the park but that additional project specific planning documents would be required over time, all of which would provide opportunities for public comment.

In 2018, SB 1316 (Glazer, 2018) was introduced to allow the sale of the property. Similar to this bill, the bill would have allowed the sale of the Alameda-Tesla Expansion Area notwithstanding the existing provisions in the Government Code pertaining to the sale of surplus property. The bill was ultimately held in the Assembly Appropriations Suspense File.

Off-Highway Vehicle Trust Fund. The OHMV Program receives no direct support from the state’s General Fund; all funding comes from the OHV Trust Fund. Monies deposited into the OHV Fund are generated by user fees associated with OHV recreation, including: fuel taxes from gasoline consumed during off-highway recreation on public lands, OHV registration fees, entrance fees generated at the SVRAs, and interest and miscellaneous income.

The funding model for the OHMV Program is based around users funding the program primarily through gas taxes and registration fees, rather than relying on SVRA entrance fees. Entrance fees collected at the SVRAs are kept at a reasonable level to promote OHV enthusiasts use of the managed recreation opportunities, and not create a barrier for low-income visitors.

Comparisons to surplus state property disposal. Under current law, DGS is authorized to transfer surplus state property to a local agency for less than fair market value if the local agency uses the surplus property for parks or open-space purposes. However, because the “Alameda-Tesla Expansion Area” is not surplus property, the current provision would not apply to this bill.

Instead, this bill establishes a minimum purchase price for the property by requiring the land to be sold for no less than the original purchase price of the property; approximately $9 million. However, while the bill sets a minimum purchase price, the bill also authorizes DGS to dispose of the property upon any terms that DGS determines to be in the best interest of the state.

As such, DGS could, if it determines is in the best interest of the state, dispose of the property at fair market value. Additionally, DGS, consistent with current law, could transfer the property to a local agency or nonprofit organization for less than fair market value if the purchaser uses the property as a park or other open-space purpose.

Additionally, current law requires net proceeds from any disposition of property to be paid into the Special Fund for Economic Uncertainties. This bill requires any revenue from the disposition of the Alameda-Tesla Expansion Area to be deposited into the HOV Fund in an effort to return funds to the HOV Fund.

It’s also important to note that the bill does not require the property to be sold. The bill simply authorizes the disposition of the property if DPR, after holding a public hearing, determines that disposing of the land is in the public interest, upon terms and conditions that DGS deems to be in the best interests of the state, and only to a local agency or nonprofit organization for use as a park or other open space purpose.

Prior/Related Legislation

SB 20 (Dodd, 2018) would extend the sunset date, which expired on January 1, 2015, to January 1, 2026, for the state to sell the area known as the Skyline Wilderness Park in the County of Napa. (Pending in the Senate Appropriations Committee)

SB 281 (Wiener, 2019) would, among other things, require DGS to enter into negotiations with the newly created Cow Palace Authority for the purchase of the Cow Palace. (Pending in the Senate Public Safety Committee)

SB 501 (Hurtado, 2019) would require DGS to transfer ownership of the Reedley Armory to the City of Reedley for the purpose of providing services that improve the quality of life for veterans and their families, as specified. (Pending in the Senate Governmental Organization Committee)

SB 1316 (Glazer, 2018) would have authorized DPR to dispose of the Alameda-Tesla Expansion Area of the Carnegie SVRA, as specified. (Held in the Assembly Appropriations Committee Suspense File)

SB 922 (Nguyen, 2018) would authorize, until January 1, 2029, DGS to dispose of surplus state property located within two miles of a campus of the University of California, California State University, or California Community Colleges by first offering the property to a local agency or a nonprofit organization for the development of affordable student housing. (Failed passage in the Senate Governmental Organization Committee)

SB 249 (Allen, Chapter 459, Statutes of 2017) extended, indefinitely, the OHV Program and made various other changes to the Off-Highway Motor Vehicle Recreation Act.

AB 1709 (Veterans Affairs, Chapter 304, Statutes of 2017) required that an armory be offered for sale to a local agency, as defined, prior to being offered for sale to private entities or individuals.

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

SUPPORT:

Alameda Creek Alliance

Alameda County Resource Conservation District

Altamont Landfill Open Space Committee

California Native Grasslands Association

California Native Plant Society

California Wildlife Foundation

Center for Biological Diversity

Citizens Committee to Complete Refuge

City of Livermore

Confederated Villages of Lisjan

County of Alameda

Davis-King & Associates

Delta-Sierra Group of the Sierra club

East Alameda County Ranchers

Friends of Livermore

Friends of Open Space and Vineyards

Friends of Tesla Park

Friends of The Arroyos

Greenbelt Alliance

Livermore Area Recreation and Park District

Livermore Heritage Guild

Livermore Hill Hikers

Nature Conservancy

Northern Valley Yokut Tribe

Mt. Diablo Audubon Society

Ohlone Audubon Society

Regional Parks Association

San Joaquin Audubon

Save Mount Diablo

SAVE THE FROGS!

Sierra Club California

Society of American Indians

Tesla Road Residents Alliance

Tri-Valley Trailblazers

OPPOSITION:

ABATE of California

American Motorcyclist Association

Bay Are Riders Forum

California Motorcycle Dealers Association

Coalition for Public Access

Off Road Business Association

Off Road Vehicle Legislative Coalition

Specialty Equipment Market Association

ARGUMENTS IN SUPPORT: According to Sierra Club California, “scientific studies have long documented the rare ecological value of the Tesla Park area. It contains an abundance of highly sensitive natural resources and unique biodiversity, including numerous threatened, endangered and listed species, designated critical habits, unusual vegetation assemblages, and a critical linkage habitat corridor for the Diablo Range. The area also holds important cultural resources from the historic Tesla town site and mine complex to exceptional Native American resources.”

Supporters also argue that SB 767 is an important local district measure affecting irreplaceable and highly sensitive natural and cultural resources located in Alameda County and the bill provides a mechanism to resolve the long-standing local controversy in a manner that is wise and fair to the public, state, and the environment.

ARGUMENTS IN OPPOSITION: According to the California Motorcycle Dealers Association, “SB 767 unfairly provides that the expansion area be sold for, at least, the amount that the state paid for it, but does not guarantee a sale price at its current market value. The property’s value has likely increased exponentially over 21 years so selling it in a distress sale, would, at a minimum, deprive California of earned appreciation for no substantial reason.”

The Off road Vehicle Legislative Coalition, “strongly opposes this bill that would deny opportunities for local Bay Area residents, including the elderly and disabled and motorized recreation enthusiasts. The land in question was purchased using funds from the OHV Fund, with agreement as to the future purpose of the land signed by adjacent landowners. SB 767 proposes the Alameda-Tesla Expansion Area should be under the control of the privileged instead of the proven stewardship of State Parks. The Transfer of the land from the State Parks to some sort of public/private Partnership would also serve to eliminate the security of state law insuring inclusiveness and access for all Californians.”

DOUBLE REFERRAL: Senate Natural Resources and Water (6-2) & Senate Governmental Organization Committee

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Henry Stern, Chair

2019 - 2020 Regular

Bill No: SB 767 Hearing Date: April 9, 2019

Subject: Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area

BACKGROUND AND EXISTING LAW

1. Creates, through the Off-Highway Motor Vehicle Recreation Act of 2003 (Act), the Division of Off-Highway Motor Vehicle Recreation (division) within State Parks. The division plans and acquires lands in state vehicular recreation areas (SVRA) which are units within the state park system.
2. Creates the Off-Highway Vehicle Trust Fund (Fund) as a repository for certain transportation related revenues, which includes revenues for various purposes related to off-highway vehicles. The Fund is also used to support the division and to conduct its other activities including the acquisition, development, conservation and restoration of lands within state vehicular recreation areas (SVRA).
3. Declares public safety, the appropriate use of lands, and the conservation of lands as the highest priorities for management of SVRAs.
4. Provides a mechanism in the Government Code (beginning at Sec. 11011) for the disposal of surplus lands that are administered by the Department of General Services (DGS), including any surplus lands owned by the California Department of Parks and Recreation (DPR).
5. Establishes, since 1971, the Off-Highway Motor Vehicle Recreation to manage off-highway vehicle recreation in a manner that ensures the public has access to this form of recreation while also protecting California’s natural and cultural resources. The program is administered as a division (OHV division) within the California Department of Parks and Recreation (DPR). The OHV division manages 9 State Vehicle Recreation Areas (SVRAs) and provides state funding support for non-state off-highway vehicle (OHV) facilities through a grants program. The OHV division is aided in implementing the program by a nine member Off-Highway Motor Vehicle Recreation Commission, which is appointed jointly by the Governor, the Senate and the Assembly.

1. Provides funding for the OHV program by fees collected from users of SVRAs, vehicle registration fees, and fuel taxes associated with off-highway motor vehicle recreation. These funds are deposited into the Off-Highway Vehicle Trust Fund. Upon appropriation by the Legislature, up to 50% of the fund may be used for a grants program and the remaining is generally available to the division for implementing the program and managing SVRAs.

PROPOSED LAW

This bill would authorize, but not require, the sale of a specific state property should it be determined to be in the public interest. This bill:

1. Authorizes DPR to dispose of the portion of the Carnegie State Vehicular Recreation Area (SVRA) known as the “Alameda-Tesla Expansion Area,” to permanently preserve that land for conservation purposes, if DPR, after holding public hearings and consultations with stakeholders, determines that disposing of the land is in the public interest.
2. Authorizes the Department of General Services (DGS), if DPR determines that disposing of the land is in the public interest, to sell the land or otherwise dispose of the land upon any terms and conditions and subject to any reservations and exceptions DGS deems to be in the best interests of the state.
3. Authorizes DGS to transfer the land to a local agency for no less than the original purchase price based on the actual parcels to be included in the sale.
4. Defines “ park or other open space purpose” to mean use of the land’s natural resources that is consistent with a conservation purpose, including preservation of native biological diversity, wildlife habitats, and cultural resources, enjoyment of scenic beauty, and non-motorized public recreation.
5. Requires any revenue from the disposition of the land to be deposited in the Off-Highway Vehicle (OHV) Fund.

ARGUMENTS IN SUPPORT

Those in support of the bill argue that this is a local measure affecting highly sensitive natural and cultural resources located in Alameda County (where the expansion area is located). They argue that local opposition has been strong for nearly 20 years, in which time scientific studies have long documented a variety of ecological and cultural resources that would not be conducive to OHV use. In addition to the local agencies supporting the bill, other local agencies note the availability of funds from a local open space committee for the purchase of the property.

ARGUMENTS IN OPPOSITION

The Off-Road Vehicle Legislative Coalition opposes the measure and makes several points including that the bill would deny opportunities for motorized recreation, that the land was purchased using funds from the Off Highway Vehicle Trust Fund, that there was no opposition to the purchase, and that the land has been ably managed by the OHMVD. This group also noted that SB 249 in 2018 by Senator Allen imposed additional environmental criteria on the operations of state OHV parks that exceed those required by any local government who may obtain this property under the bill. It states that the park will be accessible by a wide variety of people and if the park is sold that widespread public access may not be provided.

The California Motorcycle Dealers Association is concerned that the bill does not require the property to be sold, if it is sold, at its current market value. It believes the state would forgo significant appreciation funds.

COMMENTS

Double-referral The Rules Committee referred this bill to both the Committee on Natural Resources and Water and to the Committee on Governmental Organization. Therefore, if this bill passes this committee, it will be referred to the Committee on Governmental Organization, which will consider the issues within their jurisdiction.

History of the Property. Carnegie SVRA was added to the state park system as an SVRA in July 1980. The park is named for the former town of Carnegie which was a mining and brick-making town at the turn of the 20^th century. The site was operated as a private motorcycle park from 1970 until 1979, before the department purchased it using OHV Trust Funds. Legislative action (PRC Section 5006.48) authorized DPR to plan, acquire, and develop the site for OHV use. From 1996 to 1998, DPR used money from the OHV trust fund to acquire an additional 3,100 acres of adjacent property in Alameda County to provide additional OHV recreation opportunities. This additional acreage is known as the “Alameda-Tesla Expansion Area.” The expansion was classified as SVRA lands and added to Carnegie SVRA. An acquisition Environmental Impact Report (EIR) was not conducted prior to the purchase of the Alameda-Tesla Expansion Area.

Acquiring the Expansion and Updating the General Plan. The OHV division and the OHV Commission have traditionally approved the statutorily-required general plans that guide the management of SVRAs. In 2016, after two prior EIRs, the commission approved a General Plan and certified the EIR which incorporated the Alameda-Tesla Expansion Area into the Carnegie SVRA General Plan.

Several issues were raised during the General Plan process for which DPR issued statements of overriding consideration in order to minimize or avoid any otherwise required mitigation. These included air quality issues, traffic, historic sites, tribal issues and others. Several lawsuits have been filed against the expansion including from the County of Alameda challenging the CEQA approvals. These have not been resolved.

Legislators Request State Parks Consider Sale. On July 20, 2017, a coalition of 16 local legislators (Senate and Assembly) wrote to the director of DPR encouraging the department to work with local stakeholders to explore the option of selling the land set aside for expansion. The letter discusses the “protracted and expensive process, with more than $9 million in acquisition costs—plus the expense of the EIR. With four lawsuits challenging the EIR, additional legal costs will likely add hundreds of thousands of dollars to this bill.”

The letter stated that circumstances may have changed in the 20 years since the purchase and that a greater understanding of the historic and preservation values of the land may be now known. They list a number of reasons to recapture the project costs of the acquisition (by negotiating with a willing seller to acquire the property for conservation), most of which were outlined in the acquisition EIR. These include the scientific evidence that has documented the rare ecological value of the area which contains an abundance of highly sensitive natural resources, including native biological diversity, a critical linkage habitat corridor, unique vegetation assemblages and wildlife habitats. The area also holds important cultural resources from the historic Tesla town site and mine complex to exceptional historic Californian features.

The director of DPR responded to this letter stating, “the Expansion Area at Carnegie SVRA does not meet the statutory criteria to be considered surplus property and therefore transferred to the Department of General Services.” The letter discusses the process for development of the General Plan and EIR for Carnegie SVRA, and the public process used to get to this point. However, the letter stated, “While the General Plan and EIR are important milestones for Carnegie SVRA, they are not the final planning documents for the park. There will be additional opportunities for public comment as the Department complies with the CEQA process to develop road and trail plans for this property.”

In her response, the director specifically referenced Government Code §11011 which articulates the circumstances under which a state agency may request divestiture of state surplus property and the process the agency must follow when making this request. Significant criteria are as follows:

1) Land not currently being utilized, or currently being underutilized, by the state agency for any existing or ongoing state program.

2) Land for which the state agency has not identified any specific utilization relative to future programmatic needs.

3) Land not identified by a state agency within its master plans for facility development.

Local Government Opposition to Expansion. In addition to communication from the legislators regarding the expansion, the County of Alameda Board of Supervisors voted in 2015 unanimously to oppose the expansion of Carnegie. They cite a conflict with the county’s policies relative to environment and natural habitats. The board is one of several groups suing to stop the expansion of the park.

Is there money available to help with this purchase? In an interesting (but similarly contentious) chapter of Alameda County history, litigation over expansion of the Altamont landfill resulted in a settlement in which a percentage of the tipping fee is allocated as mitigation funds with open space preservation as one defined and eligible option for the use of these funds. The case was settled after the expansion was cut in half and the tipping fees were imposed. Under the settlement, 60 percent of the tipping fees are for open space preservation with another 20 percent for recycling programs, and 20 percent for other community amenities.

The settlement established an entity composed of the county, the cities of Livermore and Pleasanton, and the Sierra Club all of whom were plaintiffs in the case against the landfill. This entity is called the Altamont Landfill Open Space Committee (ALSOC). The percentage of the tipping fee is allocated on an 80%-20% basis between eastern and western Alameda County respectively. The fund for eastern Alameda County (where the SVRA is located) currently contains about $12 million which could be available for the bill’s purposes. ALSOC has voted to support this legislation.

Senator Glazer and Alameda County Supervisor Scott Haggerty wrote the director of the DPR and specifically asked that the department consider a sale which was rejected for the same reasons that were described earlier regarding the legislative coalition letter.

Does this bill require a sale of the OHV expansion area or a sale at a loss?

No. it authorizes, but does not require a sale. Some in the opposition have said that the bill forces a sale. The bill establishes a floor which is the original purchase price. If the property is sold, it would be pursuant to any terms and conditions that the Department of General Services deems to be in the best interests of the state. That determination almost always involves an appraisal process.

Is a negotiated solution possible? The author should be aware that at least a portion of the opposition has expressed an interest in a discussion of possible alternatives to this bill brokered by a neutral entity. This is clearly up to the author, and not the committee, although committee staff would help if so requested.

Prior Legislation: This bill is substantially similar to SB 1316 by Senator Glazer from 2018.

SUPPORT

Altamont Landfill Open Space Committee

Alameda County Resource Conservation District

Alameda Creek Alliane

California Native Plant Society

Center for Biological Diversity

Citizens Committee to Complete the Refuge

Davis-King & Associates

Delta-Sierra Group of the Sierra Club

East Alameda County Ranchers

Friends of Livermore

Friends of Tesla Park

Friends of the Arroyos

Greenbelt Alliance

Livermore Area Recreation and Park District

Livermore Hill Hikers

Mt. Diablo Audubon Society

Ohlone Audubon Society

Save Mount Diablo

Sierra Club California

Society of American Indians

Tesla Road Residents Alliance

The Nature Conservancy

Tri-Valley Trailblazers

OPPOSITION

ABATE

American Motorcyclists Association

Bay Area Riders Forum

California Motorcycle Dealers Association

Coalition for Public Access

Off Road Business Association (ORBA)

Off Road Vehicle Legislative Coalition

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