BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 204
                                                                  Page  1

          SENATE THIRD READING
          SB 204 (Liu)
          As Amended  August 24, 2012
          Majority vote

           SENATE VOTE  :Vote not relevant  
           
           TRANSPORTATION      12-0        LOCAL GOVERNMENT    7-1         
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonnie Lowenthal,         |Ayes:|Smyth, Alejo, Campos,     |
          |     |Jeffries, Achadjian,      |     |Davis, Gordon, Hueso,     |
          |     |Blumenfield, Bonilla,     |     |Knight                    |
          |     |Buchanan, Eng, Galgiani,  |     |                          |
          |     |Wagner, Norby,            |     |                          |
          |     |Portantino, Solorio       |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Norby                     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Gatto, Blumenfield,       |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Fuentes, Hall, Hill,      |     |                          |
          |     |Cedillo, Mitchell,        |     |                          |
          |     |Solorio                   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |     |                          |
          |     |Nielsen, Norby, Wagner    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Provides for 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) and acting jointly 
            with affected cities, to develop and file with the California 
            Transportation Commission (CTC) a LATIP to address 








                                                                  SB 204
                                                                  Page  2

            transportation problems and opportunities in the SR 710 study 
            area.  

          2)Grants CTC the final authority regarding content and approval 
            of the LATIP, so long as the content and approval are 
            consistent with the CTC's earlier processes related to LATIPs 
            for SR 84 and SR 238; requires the approval to include a 
            finding by the CTC that the plan includes feasible funding, 
            plans, and capacity to develop and implement the LATIP and the 
            associated relocation assistance requirements.  

          3)Directs CTC and Caltrans to declare as excess any properties 
            purchased for the construction of the SR 710 extension in 
            Pasadena, South Pasadena, Alhambra, and the City of Los 
            Angeles once a surface freeway alternative is eliminated or 
            once the draft environmental report and selection by Caltrans 
            of the locally preferred alternative for the project has been 
            completed, whichever occurs first.  Caltrans is then to 
            proceed expeditiously to release the excess properties for 
            sale.  

          4)Provides that tenants of nonresidential properties are to be 
            offered first right of refusal to purchase at fair market 
            value the property they rent, lease, or otherwise legally 
            occupy.  

          5)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, provided that at 
            least 25% of the proceeds are used to construct soundwalls 
            along SR 210.  These proceeds are exempt from formulae that 
            generally govern the distribution of capital improvement 
            dollars for transportation, such as the north/south split and 
            county shares.  

          6)Restricts the use of these proceeds for projects included in 
            the LATIP and for associated relocation assistance.  

          7)Prohibits the proceeds from the sale of excess properties from 
            being used to advance a tunnel alternative for SR 710.  

          8)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. 
             








                                                                  SB 204
                                                                  Page  3


          9)Provides that funds in the account are available to Metro for 
            project designated in the LATIP, as approved by the California 
            Transportation Commission (CTC).  

          10)Authorizes Metro, with the concurrence of the CTC and 
            Caltrans, to advance a project in the LATIP using its own 
            funds, prior to the availability of funds from the sale of 
            surplus property subject to terms and conditions that are 
            mutually agreeable to the CTC, Caltrans, Metro, and the cities 
            with which the LATIP was developed.

          11)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.  

           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)Dictates that priority for funding in the LATIPs is to go to 
            projects in the local voter-approved transportation tax 
            measure.  

          3)Grants CTC final authority over the content and approval of 
            LATIPs for SR 84 and SR 238 and prohibits it from approving 
            any such program submitted after January 1, 2010.  

          4)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.  

          5)Provides for the expansion or deletion of the state highway 
            system through a process whereby CTC makes a finding that it 
            is in the best interest of the state to include or delete a 
            specified portion of roadway to the system.  








                                                                  SB 204
                                                                  Page  4


          6)Provides for the relinquishment of a portion of state highway 
            to a city or county under an agreement between the local 
            jurisdiction and the Caltrans when an act of the Legislature 
            has deleted the portion of highway from the state highway 
            system.  

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, Caltrans owns 587 homes within the 710 corridor.  The 
          number of these homes to be declared surplus, and the resulting 
          state revenues from sale of these properties, will depend on the 
          type of project selected to replace the long-planned project for 
          which these homes were originally purchased by the state.  

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








                                                                  SB 204
                                                                  Page  5

          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, this bill 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 
          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 State Highway 
          Account for eventual distribution elsewhere is warranted given 
          these unique circumstances.  

          It is important to note that this bill does not pre-determine 
          the results of the pending environmental study.  Its provisions 
          directing proceeds from the sale of excess property to fund the 
          LATIP 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.  


          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 204
                                                                  Page  6


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

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


                                                                FN: 0005501