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.