BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1670
                                                                  Page  1

          Date of Hearing:   April 14, 2010

                                Felipe Fuentes, Chair

                    AB 1670 (Beall) - As Amended:  April 5, 2010 

          Policy Committee:                               
          TransportationVote:14-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               


          This bill authorizes the California Transportation Commission  
          (CTC) to relinquish the following two segments of the state  
          highway system within the City of San Jose:

          1)The 11-mile portion of State Route (SR) 82, between Route 101  
            and Route 880.

          2)The 2.25-mile portion of SR 130.

           FISCAL EFFECT  

          1)Potentially moderate one-time costs (State Highway Account  
            [SHA]), potentially in the hundreds of thousands to millions  
            of dollars, depending on the outcome of negotiations between  
            Caltrans and the City and a determination by Caltrans that the  
            relinquishment is in the best interest of the state.  (See  
            Comment #1)

          2)Long-term maintenance and repair savings to Caltrans, if the  
            CTC exercises its authority to relinquish these highway  


           1)Background  .  Legislation is required before any segment of  
            state highway can be relinquished to another governmental  
            entity.  Relinquishment provides the recipient agency with  
            more control over a local transportation project and relieves  
            Caltrans of any further responsibility to improve, maintain,  
            or repair infrastructure related to the relinquished segment  


                                                                  AB 1670
                                                                  Page  2

            of state highway.

            According to Caltrans, in recent years the initial cost of  
            relinquishments has ranged from $0 to over $1 million per  
            centerline mile.  These costs are driven by a number of  
            factors, including roadway condition, projected maintenance  
            costs and any planned capital projects.

            The actual cost of a particular relinquishment is negotiated  
            directly with the local agency, but must be based on a  
            cost-benefit analysis using a 10-year analysis period.  Prior  
            to this analysis, the baseline cost is assumed to be $0.  All  
            proposed costs beyond the baseline are subject to review and  
            approval by the Department's Relinquishment Advisory Committee  
            to ensure statewide consistency in application of the  
            established evaluation criteria.

           2)Purpose  .  SR 82 and SR 130, commonly referred to as the  
            Alameda and Monterey Highway (SR 82) and Alum Rock Avenue (SR  
            130), serve primarily as urban arterials.  The City is seeking  
            control of these highway segments so that it may pursue  
            economic development and community enhancements without the  
            constraints of Caltrans' design and operations requirements.  

            According to the author's office, the City and Caltrans have  
            engaged in discussions regarding the proposed relinquishments  
            and Caltrans has indicated its initial support.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081