BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 204|
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                              UNFINISHED BUSINESS


          Bill No:  SB 204
          Author:   Liu (D), et al.
          Amended:  8/24/12
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/12
            (pursuant to Senate Rule 29.10)
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton

           ASSEMBLY FLOOR  :  Not available


           SUBJECT :    Local alternative transportation improvement 
          program

           SOURCE  :     Author


           DIGEST  :   This bill provides for a local alternative 
          transportation improvement program (LATIP) for the State 
          Route (SR) 710 study area in Los Angeles County.

           Assembly Amendments  dealt the Senate version of the bill, 
          which dealt with K-12 education governance, and instead add 
          the current language.

           ANALYSIS  :    

           Existing law  :
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           1. Grants local authorities, acting jointly with 
             transportation planning agencies, authority to develop 
             and file LATIPs with the California Transportation 
             Commission (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.  

           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 Department of 
             Transportation Department (Caltrans) when an act of the 
             Legislature has deleted the portion of highway from the 
             state highway system.

          This bill:  

           1. Authorizes the Los Angeles County Metropolitan 

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             Transportation Authority (Metro), in consultation with 
             Caltrans and acting jointly with affected cities, to 
             develop and file with the CTC a LATIP to address 
             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.  

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           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.  

           9. Provides that funds in the account are available to 
             Metro for project designated in the LATIP, as approved 
             by the 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.

           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 

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          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, 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 

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          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, directs 
          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, 
          authorizes 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, 
          reinstates the opportunity for a LATIP to be developed for 
          the SR 238 corridor.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

           Loss of funds to the State Highway Account, potentially 
            over $200 million, that would otherwise be available for 
            projects on the state highway system, including for the 
            SR 710 tunnel alternative, absent this bill.  This bill 
            instead requires all proceeds from the sale of excess 
            properties to be used for soundwalls on SR 210, 
            replacement housing and relocation assistance, and local 
            transportation projects in the LATIP.

           Unknown administrative costs to CTC to approve the LATIP 
            and make findings that the plan includes feasible 
            funding, plans, and capacity to meet the requirements of 

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            the bill, including the provisions for housing relocation 
            assistance and replacement housing units, for which CTC 
            does not have current in-house expertise.

           Potential risks to federal funds for the SR 710 Gap 
            Closure Project by providing relocation assistance to 
            current tenants that are expressly ineligible under 
            federal law.

           SUPPORT  :   (Verified  8/29/12)

          Arroyo Verdugo Cities Steering Committee
          City of Alhambra
          City of Pasadena
          City of South Pasadena

           OPPOSITION  :    (Verified  8/29/12)

          City of La Canada Flintridge


          JJA:d  8/31/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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