BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 218 (Melendez) - State Highway Route 74 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 2, 2015 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 6, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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. AB 218 (Melendez) Page 1 of ? 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 AB 218 (Melendez) Page 2 of ? 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 AB 218 (Melendez) Page 3 of ? 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. -- END --