BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 218 (Melendez) - State Highway Route 74
          
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          |Version: February 2, 2015       |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: July 6, 2015      |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File. 







          Bill  
          Summary:  AB 218 would authorize the California Transportation  
          Commission (CTC) to relinquish a specified segment of State  
          Highway Route (SR) 74 to Riverside County.


          Fiscal  
          Impact:  Unknown one-time costs ranging from minor up to several  
          million to the Department of Transportation (Caltrans) prior to  
          the relinquishment of the designated segment of SR 74 to  
          Riverside County (State Highway Account).  These costs would be  
          offset in future years due to avoided maintenance costs on the  
          relinquished segment.









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          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 has typically involved 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.  In recent  
          years, however, Caltrans has not set aside funding to  
          rehabilitate relinquished highways.




          Proposed Law:  
            AB 218 would authorize CTC to relinquish to Riverside County  
          the portion of SR 74 located in the unincorporated area east of  
          the City of Lake Elsinore and west of the City of Perris,  
          pursuant to the terms of a specified cooperative agreement and  
          upon a determination that the relinquishment is in the state's  
          best interest.  This segment of SR 74 would cease to be a part  
          of the state highway system, and would be ineligible for future  
          adoption as a state highway.  The bill would require Riverside  
          County to maintain signs along the relinquished portion  
          directing motorist to the continuation of SR 74.


          Related  
          Legislation:  AB 1915 (Jeffries), Ch. 635/2008, authorized CTC  
          to relinquish the portions of SR 74 within the city limits of  
          Lake Elsinore and Perris to those respective jurisdictions.
          Staff notes that the Governor proposed budget trailer bill  
          language this year that is intended to broaden and streamline  
          the state process for relinquishing state highway routes that  
          are deemed to no longer serve an interregional purpose, and  
          instead operate primarily as regional or local routes.  The  








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          Senate Budget Subcommittee #2 rejected the trailer bill proposal  
          at its hearing on April 16, 2015, without prejudice, so that it  
          could be considered instead by the Senate Transportation and  
          Housing Committee.


          SB 254 (Allen), currently pending in the Assembly Transportation  
          Committee, is the legislative vehicle for the trailer bill  
          language.  That bill would establish procedures for the  
          administrative relinquishment of state highway segments that do  
          not serve an interregional purpose. 




          Staff  
          Comments:  Relinquishment of this segment would allow Riverside  
          County to assume direct control of the roughly 6 miles of  
          roadway in the unincorporated area between the eastern border of  
          Lake Elsinore and the western border of Perris.  Transferring  
          control of the roadway to the County allows for the construction  
          of 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 has not identified 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 74  
          specified in the bill is approximately 6 miles long, so initial  
          costs could be minimal but may be as high as several million  
          dollars.  The relinquishment of these segments would relieve  








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          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 Riverside County.  However, Caltrans does not  
          typically conduct the analysis and enter into negotiations until  
          legislative authority for relinquishment has been provided.



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