BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1670 (Beall)
          
          Hearing Date:  08/12/2010           Amended: 07/15/2010
          Consultant: Mark McKenzie       Policy Vote: T&H 8-0
          _________________________________________________________________ 
          ____
          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.
          _________________________________________________________________ 
          ____
                            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*
          ____________
          * State Highway Account
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  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 
          Page 2
          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.