BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 957 (Lowenthal) Hearing Date: 08/15/2011 Amended: 07/07/2011 Consultant: Mark McKenzie Policy Vote: T&H 9-0 _________________________________________________________________ ____ BILL SUMMARY: AB 957 would authorize the California Transportation Commission (CTC) to relinquish a portion of State Highway Route (SR) 225 to the City of Santa Barbara. The bill would also enact the following non-controversial changes related to transportation: Expand the Sacramento Regional Transit District (Sac RT) to include the cities of Citrus Heights, Elk Grove, Rancho Cordova, and West Sacramento. Delete obsolete provisions relating to the transition from the Sacramento Transit Board to Sac RT. Clarify that Sac RT is prohibited from imposing a property tax within its service area unless it is approved by 2/3 of the electorate in the affected area. Authorize Sac RT to set up trust accounts for its retirement system. Delete the requirement for the Department of Transportation (Caltrans) to provide quarterly reports to the Legislature and CTC on the status of specified seismic retrofit projects. Require the release of an impounded rental car that was used illegally as a taxicab or vehicle for hire in violation of local licensing requirements. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund SR 225, improvements unknown one-time cost (minor to millions)Special* prior to relinquishment (see staff comments) SR 225, maintenance unknown long-term savings followingSpecial* relinquishment Seismic reports annual savings of approximately $20Special* ____________ * State Highway Account AB 957 (Lowenthal) Page 1 _________________________________________________________________ ____ 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 957 would authorize CTC, upon a determination that the terms and conditions are in the state's best interest, to relinquish to the City of Santa Barbara the portion of SR 225 that is located within the city limits. 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 portion of SR 225 specified in the bill is known locally as Las Positas Road, Cliff Drive, and Castillo Street. Relinquishment of this segment would provide Santa Barbara with jurisdiction over what are now local roadways entirely within the city without the constraints of Caltrans' state highway design standards, encroachment permit processes, and other state requirements. 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 segment, but based on other relinquishments, one-time costs range from minimal up to $1 AB 957 (Lowenthal) Page 2 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 225 specified in the bill is approximately 4.8 miles long, so initial costs could be minimal but may be as high as $4.8 million. The relinquishment of these segments would relieve Caltrans of any future maintenance and repair costs, resulting in unknown long-term annual savings. Actual costs and savings would be more certain if legislation to authorize relinquishment followed, rather than preceded, an agreement between Caltrans and the City of Santa Barbara. However, Caltrans does not typically enter into negotiations until legislative authority for relinquishment has been provided. AB 957 would also delete Caltrans reporting requirements related to several seismic retrofit programs. The Seismic Retrofit and Local Bridge Seismic Retrofit programs are effectively complete, and the Toll Bridge Seismic Retrofit program reporting requirement this bill deletes is now obsolete, since that program is subject to an updated reporting requirement pursuant to AB 144 (Hancock), Chapter 71 of 2005. Caltrans indicates that elimination of the quarterly reports would result in savings of approximately $20,000 per year. The remaining provisions of this bill would have no state fiscal impact.