BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 204
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          Date of Hearing:  June 25, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                       SB 204 (Liu) - As Amended:  June 7, 2012

           SENATE VOTE  :  Not relevant
           
          SUBJECT  :  Local alternative transportation improvement program:  
          State Route 710 in Los Angeles County

           SUMMARY  :  Provides for the development of a local alternative 
          transportation improvement program (LATIP) for the State Route 
          (SR) 710 study area in Los Angeles County.  Specifically,  this 
          bill  :  

          1)Authorizes the Los Angeles County Metropolitan Transportation 
            Authority (Metro), in consultation with the California 
            Department of Transportation (Caltrans), to develop and file a 
            LATIP with the California Transportation Commission (CTC) to 
            preserve funding to address transportation problems and 
            opportunities in the SR 710 study area.  

          2)Grants the CTC final approval authority regarding the content 
            and approval of the LATIP, so long as the content and approval 
            processes are consistent with the CTC's earlier processes 
            related to LATIPs for SR 84 and 238.  

          3)Directs the proceeds from the sale of excess properties, as 
            defined, in the SR 710 study area, less specified costs, to be 
            allocated by CTC to fund the approved LATIP.  These proceeds 
            are exempt from formulae, such as the north/south split and 
            county shares, that generally govern the distribution of 
            capital improvement dollars for transportation.  

          4)Restricts the use of these proceeds only for projects for 
            state highway purposes or for projects in the LATIP that are 
            also in the local voter-approved transportation sales tax 
            measure.  

          5)Defines the "SR 710 study area" to mean the portion of Los 
            Angeles County that is identified in the scoping process for 
            the SR 710 north gap closure project environmental assessment. 
             









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          6)Directs Caltrans to maintain a separate account of revenue 
            derived from the sale of excess properties in the SR 710 study 
            area.  

          7)Authorizes Metro, with the concurrence of the CTC (but not 
            Caltrans), to advance a project in the LATIP using its own 
            funds, prior to the availability of funds from the sale of 
            excess property being available.  

          8)Sets forth required elements of the LATIP, to include programs 
            to provide relocation assistance and replacement housing for 
            persons affected by implementation of the LATIP.  

          9)Prohibits state highway account funds or funds derived from 
            the sale of excess properties from being expended for planning 
            or implementing the housing provisions of the LATIP; also 
            prohibits excess property from being used for housing 
            purposes, except until after it is sold by Caltrans.  

           EXISTING LAW:
           
          1)Grants local authorities, acting jointly with transportation 
            planning agencies, authority to develop and file LATIPs with 
            the CTC to address transportation problems that were to be 
            served by construction of freeways on SR 84 and SR 238.  

          2)Directs the proceeds from the sale of excess properties, less 
            specified costs, to be allocated by CTC to fund the approved 
            LATIP.  These proceeds are exempt from formulae (such as the 
            north/south split and county shares) that generally govern the 
            distribution of capital improvement dollars for 
            transportation.  These proceeds are restricted, however, for 
            state highway purposes, or, in the case of SR 84, for projects 
            that are in the LATIP and in the local voter-approved 
            transportation sales tax measure.  

          3)Sets for provisions governing LATIPs to require that the 
            programs provide relocation assistance and replacement housing 
            for persons affected by implementation of the LATIP.  

           FISCAL EFFECT  :  Unknown but the sale of excess properties is 
          likely to generate hundreds of millions of dollars.  

           COMMENTS  :  SR 710 is a major north-south interstate freeway 
          running 23 miles through Los Angeles County.  The freeway runs 








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          from Long Beach to Alhambra, stopping short of the originally 
          planned terminus in Pasadena.  Construction of the segment 
          between Alhambra and Pasadena, through South Pasadena, has been 
          delayed for decades due to community opposition.   The freeway 
          gap is seen by many as a source of significant traffic 
          congestion in northeastern Los Angeles and the northwestern San 
          Gabriel Valley as there are no north-south freeways in this 
          area.  

          Over the past forty years, alternative concepts have been 
          proposed and evaluated to complete the SR 710 freeway and close 
          the 4.5 mile gap in the corridor.  To date, none of the 
          previously proposed and evaluated alternatives have been 
          successful in satisfying the regional mobility needs and 
          community/environmental concerns.  The previous alternatives 
          considered would traverse highly developed urbanized 
          neighborhoods and require substantial amounts of right-of-way 
          along the alignments.  

          Many members of the community were concerned with the impact of 
          these right-of-way intensive, surface alternatives and, 
          consequently, opposed the extension of the SR 710.  In response 
          to this reaction and to lessen the potential impact of 
          completing the SR 710, a tunnel concept was proposed for 
          assessment as a potential option to the surface alternatives.  
          Metro has completed the feasibility assessment of a tunnel 
          alternative to extend the SR 710 from its current terminus at 
          Valley Boulevard in the City of Los Angeles to Interstate 210 in 
          the City of Pasadena.  Generally, the study concluded that the 
          tunnel concept is feasible.  Although potential environmental 
          impacts were identified, preliminary assessments concluded that 
          these impacts could be minimized, eliminated, or mitigated.  The 
          report concluded that no insurmountable environmental issues 
          were identified that would preclude further consideration of the 
          tunnel alternative.  Metro is currently in the midst of an 
          environmental review of the SR 710 study area. Also under study 
          is consideration of funding construction and maintenance of the 
          project via a public-private partnership agreement.  

          In many ways, SB 204 is similar to provisions previously enacted 
          that directed the proceeds from the sale of excess homes to 
          locally selected alternative transportation programs in both the 
          Hayward SR 238 bypass corridor and in the SR 84 corridor 
          (between SR 238 and Interstate 880).  Similar to the SR 710 
          freeway gap closure project, Caltrans began acquiring properties 








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          in these corridors decades ago and, like the SR 710 freeway gap 
          closure project, the projects faced community opposition and 
          subsequently stalled for years.  Communities along these 
          corridors have endured years of uncertainty, less-than-exemplary 
          management of Caltrans-owned properties, and reduced tax rolls 
          from these long-stalled projects.  Like SR 84 and 238, exempting 
          the SR 710 freeway gap corridor from existing requirements to 
          return the proceeds of excess properties to the SHA for eventual 
          distribution elsewhere is warranted given these unique 
          circumstances.  

          It is important to note that SB 204 does not pre-determine the 
          results of the pending environmental study.  Its provisions 
          directing proceeds from the sale of excess property to Metro 
          will apply regardless of the outcome of whatever studies are 
          completed.   Furthermore, this bill does not affect the process 
          and procedures governing the sale of excess properties.  

           Amendments:   The bill currently requires Metro to secure the 
          concurrence of the CTC prior to advancing a project in the 
          LATIP.  For consistency with other LATIPs and to ensure 
          coordination and cooperation amongst the involved agencies, the 
          bill should be amended to require Metro also to secure the 
          concurrence of Caltrans in this regard.  The author has agreed 
          to take this amendment but, because of looming legislative 
          deadlines, the amendment will have to be taken in the Assembly 
          Appropriations Committee. 

          Additionally, the author intends to amend the bill in the future 
          (but not in this committee due to deadlines) to:  

          1)Trigger the start of Caltrans' excess property disposal 
            process when the draft EIR has been completed and the "locally 
            preferred alternative" is selected by Caltrans.  According to 
            the author, the purpose of this amendment is to provide a time 
            certain by which Caltrans would identify excess properties and 
            initiate the disposal process so that tenants, potentials 
            buyers, and the communities in which these properties are 
            located will have some reasonable expectations about the 
            timeframe within which the properties would be sold.  

          2)Prohibit proceeds from the sale of excess property to be used 
            to fund construction of the gap closure project.  According to 
            the author, current expectations are that the SR 710 gap 
            closure project will be funded via a public-private 








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            partnership agreement.  "The communities in which the 
            properties were acquired for the project as originally 
            conceived have been impacted by having these properties off 
            the tax rolls and in public, rather than private ownership for 
            over 50 years. It is appropriate that the broader community 
            benefit from the construction of truly local alternative 
            transportation improvement projects distributed throughout the 
            study area rather than being applied to the 710 project 
            itself."  

          Prior legislation:  AB 1836 (Hayashi), Chapter 291, Statutes of 
          2009, directed the proceeds from the sale of excess properties 
          in the SR 84 and SR 238 corridors to a special fund to be used 
          to implement LATIPs in the corridors.  

          AB 1462 (Torrico), Chapter 619, Statutes of 2005, authorized 
          designated local agencies in Alameda County to follow an 
          existing process to develop and file a LATIP with the CTC as a 
          means of resolving a local transportation dispute surrounding 
          proposed improvements on SR 84.  

          SB 509 (Figueroa), Chapter 611, Statutes of 2004, reinstated the 
          opportunity for a LATIP to be developed for the SR 238 corridor. 
           

           Double-referral:   Should this bill secure passage from the 
          Assembly Transportation Committee, it will be referred to the 
          Assembly Local Government Committee.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          City of Alhambra
           
            Opposition 
           
          None on file


           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093 











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