DEPARTMENT OF THE NAVY
SOUTHWEST DIVISION
NAVAL FACILTIES ENGINEERING COMMAND
1220 PACIFIC HIGHWAYSAN DIEGO, CA 92132-5190

Date stamped 11 May 00
Date stamped received May 16, 2000

Mr. Charles V. Smioth
Chairman
Orange County Board of Supervisoprs
Orange County Hall of Administration
PO Box 687 Santa Ana CA 92702-0687

Dear Chairman Smith:

I am writing to apprise you of our intentions regarding the interim disposition of
Marine Corps Air Station El Toro.

As you know, the Community Services Program Lease (CSP) and the base year of
the Cooperative Agreement (CA) for caretaker services expire on July 1, 2000. The
CSP Lease was intended to be a short-term lease that would bridge the gap between
operational closure and execution of a master lease.

We have been discussing a master lease with the County for the past two years and we
have extended the CSP several times with the expectation that the County would agree to
enter into a master lease, However, we have not yet received all of the required
information or a firm commitment from the County that would allow us to enter into the
master lease. Additionally, at several recent meetings of the County Board of Supervisors,
the Board demonstrated a reluctance to make any commitments concerning the master
lease and interim use of the base.

We are very concerned about the prospect of continuing an open-ended commitment at
the current level of funding for maintenance on a closed base in the absence of a firm
commitment from the County setting forth its willingness to enter into a master lease. We
are also concerned about the status of retrocession of legislative jurisdiction at this base. In
the absence of any progress toward retrocession of legislative jurisdiction, we will not
award a master lease or enter into any other agreement, because the Federal Government
would retain law enforcement responsibility for the base property.

We attended the Board's workshop on May 3, 2000, where the Board discussed various
reuse planning options, the master lease, and retrocession. We hope that this workshop
and the follow-on Board hearing scheduled for May 16, 2000, will result in a clear
statement by the Board that it wants to complete the master lease application and enter
into a master lease by July 1, 2000. We remain of the view that a master lease can be
executed in the near future that would relieve the Marine Corps of the responsibility to
caretake a closed base and allow the local community to use facilities on the base. Thus,
we are preparing a Finding Of Suitability To Lease (FOSL) as well  as other required                documentation.  Although the County submitted an update to its lease application on February 2, 2000, we require additional information regarding the County's intended uses under the lease. Your staff indicated that this information would be included in the business plan, but we have not yet received that plan.

However, unless we receive a firm commitment from the County by May 31, 2000, to
complete the master lease negotiations and pursue retrocession during June 2000, we
will allow the CSP to terminate and secure the base on July 1, 2000. If the County
decides that it does not want to conclude a master lease, then advance notice must be
given to the County's tenants so that they can seek other space off the base.

We hope that the County takes action towards completing a master lease and gaining
retrocession. However, in light of the current status of the master lease, we will begin
the process of securing the installation by canceling existing licenses between the
Department of the Navy and other parties on the base. We will also start to identify
facilities and utilities that can be secured to reduce the Marine Corps' caretaker cost. If
you have any questions, please call me at (619) 532-0993 or Ms. Susanah Aguilera at
(619) 532-0765.

Sincerely,

KIMBERLY KESLER
Director, Base Closure Operations
By direction of the Commander

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