BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 747 (Levine) - State Highway Route 131 relinquishment.
Amended: May 28, 2013 Policy Vote: T&H 10-0
Urgency: No Mandate: No
Hearing Date: June 24, 2013
Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 747 would authorize the California
Transportation Commission (CTC) to relinquish a specified
segment of State Highway Route (SR) 131 to the Town of Tiburon.
Fiscal Impact: Unknown one-time costs ranging from minor up to
$1 million to the Department of Transportation (Caltrans) prior
to the relinquishment of the designated segment of SR 131 to
Tiburon (State Highway Account). These costs would be offset in
future years due to avoided maintenance costs on the
relinquished segment.
Background: 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 typically involves a
one-time payment of State Highway Account funds to the local
entity, is in the best interests of the state. Historically,
Caltrans has annually set aside $12 million of State Highway
Operations and Protection Plan (SHOPP) funding for
rehabilitation necessary for highway relinquishments. For the
2013-14 fiscal year, however, Caltrans does not have funding
available to rehabilitate relinquished highways.
Proposed Law: AB 747 would authorize CTC, upon a determination
that the terms and conditions are in the state's best interest,
AB 747 (Levine)
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to relinquish to the Town of Tiburon the portion of SR 131 east
of the intersection with Lyford Drive within the town 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.
Staff Comments: Relinquishment of this segment would allow
Tiburon to assume direct control of the roadway and pursue any
improvements and enhancements 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," although there is no statutory obligation to do so.
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, but those costs are
based upon a cost-benefit analysis covering a ten-year period,
which is included in a Project Scope Summary Report prepared for
legislative relinquishments.
Caltrans does not currently have a specific cost estimate for
the relinquishment of this segment, but based on other
relinquishments, one-time costs may 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. The segment of SR 131
specified in the bill is approximately 1 mile long, so initial
costs could be minimal but may be as high as $1 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, the
completion of the cost-benefit analysis and an agreement between
Caltrans and the Town of Tiburon. However, Caltrans does not
typically conduct the analysis and enter into negotiations until
legislative authority for relinquishment has been provided.
AB 747 (Levine)
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