BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
344 (Caballero)
Hearing Date: 07/06/2009 Amended: 04/15/2009
Consultant: Mark McKenzie Policy Vote: T&H 11-0
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BILL SUMMARY: AB 344 would authorize the California
Transportation Commission (CTC) to relinquish a portion of State
Highway Route (SR) 146 to the City of Soledad, and a portion of
SRs 1 and 55 to the City of Newport Beach.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Caltrans improvements, SR 146unknown one-time costs, probably
Special*
(Soledad) less than $500 prior to
relinquishment
Caltrans improvements, unknown one-time costs, in the
range Special*
SR 1 and SR 55 (Newport Beach) of $500-$1,500 prior to
relinquishment
Caltrans maintenance unknown long-term maintenance and
Special*
repair savings following
relinquishment
CTC minor, absorbable costs to
reviewSpecial*
____________ agreements
*State Highway Account
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
The Legislature has provided statutory authorization to CTC to
relinquish a number of state highway segments to local
jurisdictions under specified conditions. Relinquishment
provides the recipient agency with greater control over local
transportation projects and relieves the Department of
Transportation (Caltrans) of any further responsibility to
improve, maintain, or repair infrastructure related to the
relinquished segment of state highway. Generally,
relinquishments are subject to terms and conditions of
agreements between Caltrans and a local jurisdiction seeking
control of a local highway segment. CTC must determine that the
agreement for relinquishment, which involves a one-time payment
of State Highway Account funds to the local entity, is in the
best interests of the state. Caltrans annually sets aside $12
million of State Highway Operations and Protection Plan (SHOPP)
funding for rehabilitation necessary for highway
relinquishments.
AB 344 would authorize CTC, upon a determination that the terms
and conditions are in the state's best interest, to relinquish
to the City of Soldad the portions of SR 146, and to the City of
Newport Beach the portions of SR 1 and SR 101, located within
the respective city's boundaries. The relinquished portions
would cease to be a part of the state highway system, and would
be ineligible for future adoption as a state highway.
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AB 344 (Caballero)
The City of Soledad proposes to assume responsibility for
maintenance and operation of the segment of SR 74 within the
city's limits, including roadway improvements that are
consistent with local standards. Specifically, Soledad intends
to add diagonal parking to portions of SR 146, which are
currently used elsewhere in the vicinity but are prohibited on
state highway segments because they are not consistent with
Caltrans' specifications. The City of Newport Beach proposes to
assume responsibility for the segment of SR 1 and SR 101 within
the city limits so that it can more efficiently schedule roadway
maintenance activities to better suit its residents' needs.
Staff notes that Caltrans usually provides State Highway Account
funding to a local entity that is assuming control over state
highway segments in order to bring the roadway up to a "state of
good repair." The actual amounts vary for each relinquished
highway segment and are determined by a negotiation of terms and
conditions between Caltrans and the local jurisdiction.
Caltrans does not currently have a specific cost estimate for
the relinquishment of these particular state highway segments,
but staff estimates that costs related to the relinquishment of
SR 146 would probably be less than $500,000, while costs for
relinquishing highway segments to Newport Beach could be in the
range of $500,000 to $1 million for the each segment. The
relinquishment of these segments, however, would relieve
Caltrans of any future maintenance and repair costs, resulting
in unknown long-term annual savings.
Staff notes that while long-term savings will eventually exceed
up-front costs, actual costs and savings to Caltrans for this
relinquishment would be more certain if legislation to authorize
relinquishment followed, rather than preceded, an agreement
between Caltrans and the Cities of Soledad and Newport Beach.