BILL ANALYSIS Ó AB 1957 Page 1 Date of Hearing: April 30, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1957 (Dickinson) - As Amended: March 6, 2014 Policy Committee: TransportationVote:15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the California Transportation Commission (CTC) to relinquish, to the City of Sacramento and to the County of Sacramento, the portions of State Route 16 west of Watt Avenue that fall within each entity's jurisdiction. FISCAL EFFECT 1)Potentially moderate one-time costs (State Highway Account [SHA]) depending on the outcome of negotiations between Caltrans and the City and County and a determination by Caltrans that the relinquishment is in the best interest of the state. (See Comment #1) 2)Moderate long-term maintenance and repair savings to Caltrans, if the CTC exercises its authority to relinquish the highway segment. COMMENTS 1)Background . Legislation is required before any segment of state highway can be relinquished to another governmental entity. Relinquishment provides the recipient agency with more control over a local transportation project and relieves Caltrans of further responsibility to improve, maintain, or repair infrastructure related to the relinquished state highway segment. According to Caltrans, in recent years the initial cost of relinquishments has ranged from $0 to over $1 million per centerline mile. These costs are driven by a number of AB 1957 Page 2 factors, including roadway condition, projected maintenance costs and any planned capital projects. The actual cost of a particular relinquishment is negotiated directly with the local agency, but must be based on a cost-benefit analysis using a 10-year analysis period. Prior to this analysis, the baseline cost is assumed to be $0. All proposed costs beyond the baseline are subject to review and approval by the Department's Relinquishment Advisory Committee to ensure statewide consistency in application of the established evaluation criteria. 2)Purpose . The City of Sacramento is seeking relinquishment of the portion of SR 16 located between Watt Avenue and the City boundary from the state because it believes controlling this segment will allow it to make improvements that better accommodate future development plans in the area. Approximately one-half mile of the two-mile section proposed for relinquishment lies within the County. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081