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| Assemblymember Carol Liu's Testimony at the Orange County Public Hearing |
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The following statement is Assemblymember Carol Liu's testimony at the Orange County Public Hearing Nov. 14, 2006 regarding Caltrans mismanagement of state properties. All tenants need to consider this required reading to understand how much she and her staff, Suzanne Reed and Julianne Hinds has done for the tenants. They have dedicated years of time, and effort for us in our on going Caltrans issues and treatment at the hands of Caltrans. Gratitude and appreciation can never be fully expressed for their years of hard work!
The Caltrans Tenant Association statement can be found here.
Assemblymember Spitzer, Supervisor Norby, I applaud the action you have taken to hold this special hearing regarding Caltrans Property Management and Sales practices and your commitment to reforming the system. I sincerely appreciate the opportunity to testify before you.
My staff has provided substantial documentation to your staff with respect to our casework and legislation attempting to address deficiencies in Caltrans’ property management practices. My intent today is to provide an overview of our experience and to offer some recommendations based on our six years of involvement in these issues.
Before I begin, I want to congratulate Kimberly Kindy and the Orange County Register for their in depth exposé on Caltrans’ property management practices. I also want to acknowledge Chip Jacobs and the Pasadena Weekly for the in depth series they published regarding Caltrans rental property management in the 710 Freeway gap corridor in my District two years ago.
As a newly elected Assemblymember in 2000, problems in Caltrans’ rental property management were some of the first constituent casework requests I received. Over the six years I have represented the 44th Assembly District, I would estimate that my Chief of Staff and my Senior Field Representative have spent at least 25% of their time addressing these issues.
I have authored four bills to study or rectify deficiencies as I perceive them, sought a Bureau of Audit investigation, convened a Task Force on rental management practices, and commissioned a California Library Research Report to address Caltrans property management practices. My efforts in this regard were not the first. Prior to my election, Caltrans was subjected to several audits that found its management practices to be sorely lacking. In spite of all of these efforts, very little has changed.
I want to note that during my tenure in the Assembly, I have enjoyed good communication and relations with the Directors of Caltrans and the Secretaries of Business, Transportation and Housing to whom I have appealed as a last resort. They have been receptive to my pleas and my concerns.
However, I believe that all of us “short-timers” have limited influence over entrenched bureaucratic institutions. Mid-level bureaucrats are more than willing and able to wait us out. They are confident that we will either give up or go away. Our ability to invoke change is further constrained by institutional history and the mantra of “this is the way it has always been done.”
But now, as we commence a new era of infrastructure development, change is needed more than ever. So, I congratulate you Mr. Spitzer and Mr. Norby on your commitment to stay the course in this inquiry. As I leave office, I’d like to offer some recommendations for policies and legislation you might consider as you proceed. They are:
Create a permanent Caltrans Oversight Subcommittee within the Assembly Transportation Committee to investigate concerns of poor performance or abuse.
Establish an Ombudsperson in the Department of Transportation to deal with constituent concerns. The ombudsperson should have the authority and resources needed to conduct independent investigations and be required to file an annual report to the Legislature.
Create a more accountable organizational structure within Caltrans. We have found that lines of authority among the Caltrans Director in Sacramento, District Directors, and the Right-of-Way Managers are blurred. It is not clear who reports to whom. This impedes responsiveness and accountability.
Require more transparency in the Caltrans decision-making process. Caltrans needs to be more willing to conduct and appear in public forums to explain their actions. Furthermore, while The Caltrans Right-of -Way Manual is publicly available, it is essentially an internal document, changed at will by Caltrans without public review or comment. This document needs to be presented for public scrutiny as it extends beyond internal administrative procedures to the implementation of Legislative policy and intent.
The state’s entire system of property acquisition and management needs to be reformed and consideration given to removing this function from Caltrans. Property and housing management is not Caltrans’ area of expertise.
I also firmly believe that properties not used for the purpose for which they were originally acquired, should and can be used to fulfill other state public policy goals, for example to create open space or provide affordable housing. I will provide the Committee with a Legislative Counsel Opinion concluding that Caltrans is not required by the Constitution or other law to receive fair market value when surplus properties are disposed if other public policy objectives are being met. After all, the state is not, and should not be, in the real estate speculation business. However, the parameters and procedures for surplus property disposal need to be clearly defined and then, systematically followed.
Policies governing the timing of property acquisition relative to the viability of a transportation project also need to be established. In my District, Caltrans acquired properties in the right-of-way of the still uncompleted 710 Freeway gap 35 years ago. Clearly this was premature. As a result, communities and neighborhoods have been disrupted and condemned to blight for decades. I know several of my constituents are here to share this experience with you first hand.
Finally, Caltrans property data and information need to be converted to a readily accessible electronic form. I have, and I know you have, been repeatedly told that information I requested is not available or would take too long to compile. Not only does lack of access to these data hinder the cost-effective management of these properties, but also, it thwarts the Legislature’s ability to oversee the process.
Once again, I want to thank you for these hearings. Though I am termed out, I am passionate about theses issues and more than willing to provide whatever assistance I can as you seek to reform the Caltrans property management and sales system. I wish you well and much success. Thank You.
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