BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           993 (Huff)
          
          Hearing Date:  04/26/2010           Amended: As Introduced
          Consultant: Mark McKenzie       Policy Vote: T&H 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 993 would authorize the California  
          Transportation Commission (CTC) to relinquish a specified  
          portion of State Highway Route (SR) 66 to the City of Claremont.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Caltrans improvements  unknown one-time costs (minor to  
          $2,000)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: 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.

          SB 993 would authorize CTC, upon a determination that the terms  
          and conditions are in the state's best interest, to relinquish  
          to the City of Claremont the portion of SR 66 that is located  
          within the city limits or sphere of influence.  The relinquished  
          segment would cease to be a part of the state highway system,  
          and would be ineligible for future adoption as a state highway.

          The City of Claremont proposes to make improvements to SR 66,  
          locally known as Foothill Boulevard, as part of its  
          redevelopment plans that would allow for landscaping, street  
          furniture, and other design elements along the road that may  
          currently be inconsistent with state highway design standards.
          Page 2
          SB 993 (Huff)

          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 this particular state highway segment, 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.   
          This segment of Foothill Boulevard appears to be approximately 2  
          miles long, so initial costs could be minimal, but might be up  
          to $2 million.  The relinquishment of this segment, 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 Claremont.