BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1670 (Beall)
Hearing Date: 08/02/2010 Amended: 07/15/2010
Consultant: Mark McKenzie Policy Vote: T&H 8-0
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BILL SUMMARY: AB 1670 would authorize the California
Transportation Commission (CTC) to relinquish specified portions
of State Highway Route (SR) 82 and SR 130 to the City of San
Jose.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Caltrans improvements unknown one-time costs (minor to
millions) Special*
prior to relinquishment (see staff
comments)
Caltrans maintenance Unknown long-term savings following
Special*
and repair relinquishment
CTC administration minor costs to administer
agreementsSpecial*
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* 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 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 1670 would authorize CTC, upon a determination that the terms
and conditions are in the state's best interest, to relinquish
to the City of San Jose the portion of SR 82 from SR 101 to SR
880, and the portion of SR 130 that is located within the city
limits. The relinquished segments would cease to be a part of
the state highway system, and would be ineligible for future
adoption as a state highway. San Jose would be required to
ensure the continuity of traffic on the relinquished segment,
including and traffic signal progression.
The portions of SR 82 and SR 130 specified in the bill, locally
known as the Alameda and Monterey Highway and Alum Rock Avenue,
respectively, are local arterial streets in
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AB 1670 (Beall)
the San Jose city limits. Relinquishment of these segments
would allow San Jose to make pedestrian and multimodal
transportation improvements and other community enhancements
without the constraints of Caltrans' state highway design
standards, encroachment permit processes, and other state
requirements.
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 based on other relinquishments, one-time costs range from
minimal up to $1 million per centerline mile of roadway
depending on numerous factors such as roadway condition,
projected maintenance costs, and any planned capital projects.
The segment of SR 82 specified in the bill is approximately 11
miles long, so initial costs could be minimal but may be as high
as $11 million. The segment of Alum Rock Avenue is
approximately 2.5 miles long, so relinquishment costs could be
as high as $2.5 million. 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 City of San Jose. However, Caltrans
does not typically enter into negotiations until legislative
authority for relinquishment has been provided.