BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 652 (Cooley) - State Highway Route 16:  relinquishment
          
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          |Version: June 16, 2015          |Policy Vote: T. & H. 10 - 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 652 would authorize the California Transportation  
          Commission (CTC) to relinquish specified portions of State  
          Highway Route (SR) 16 to the County of Sacramento and the City  
          of Rancho Cordova.


          Fiscal  
          Impact:  Unknown one-time costs ranging from minor up to $5-8  
          million to the Department of Transportation (Caltrans) prior to  
          the relinquishment of the designated segments of SR 16 (State  
          Highway Account).  These costs would be offset in future years  
          due to avoided maintenance costs on the relinquished segments.









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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 652 would authorize CTC, upon a determination that the  
          terms and conditions are in the best interests of the state, to  
          relinquish the following segments of SR16, as specified:
                 The westbound lanes of SR 16 between Sunrise Boulevard  
               and Grant Line Road to the City of Rancho Cordova.
                 The portion of SR 16 within the unincorporated area of  
               the county that is between Watt Avenue and 0.2 miles east  
               of Grant Line Road to Sacramento County, except the  
               westbound lands proposed for relinquishment to Rancho  
               Cordova.  

          The relinquished segments would cease to be a part of the state  
          highway system, and would be ineligible for future adoption as a  
          state highway.  Rancho Cordova and Sacramento County would be  
          responsible for installing signs directing motorists to the  
          continuation of SR 16 and for applying for approval of a  
          business route designation for the relinquished segments, as  
          specified.

          In addition, the bill requires Sacramento County to:
                 Maintain the Surface Transportation Assistance Act truck  








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               route designation.
                 Ensure the continuity of traffic flow, including any  
               traffic signal progression.
                 Administer the operation and maintenance of the roadway  
               consistent with professional traffic engineering standards.
                 Ensure that appropriate traffic studies or analyses will  
               be performed to substantiate decisions affecting traffic on  
               the roadway.

          Finally, the bill includes legislative intent that Sacramento  
          County notify and consult with the Amador County Transportation  
          Commission, the Counties of Amador, Calaveras, and Alpine, the  
          Cities of Plymouth, Amador City, Sutter Creek, and Jackson, and  
          other relevant parties about any proposed relinquishment of SR  
          16 to Sacramento County.


          Related  
          Legislation:  AB 1957 (Dickinson, Ch. 95/2014) authorized CTC to  
          relinquish to the City of Sacramento the portion of SR 16 within  
          the city limits and to relinquish to the County of Sacramento  
          the portion of SR 16 within the unincorporated area of the  
          county that is east of the city boundary and west of Watt  
          Avenue.  
          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  
          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.












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          Staff  
          Comments:  Relinquishment of this segment of SR 16 would allow  
          Sacramento County to assume direct control of the roughly 8.4  
          miles of roadway in the unincorporated area between South Watt  
          Avenue and Grant Line Road.  The County has planned major new  
          development along the corridor that consists of over 55,000 new  
          residential units and 19 million square feet of commercial  
          space.  In conjunction with the new development, the County  
          plans to convert the current two-lane highway into a six-lane  
          arterial throroughfare roadway with enhanced bicycle and  
          pedestrian facilities.  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 16  
          specified in the bill is approximately 8.4 miles long, so  
          initial costs could be minimal but may be as high as $5-8  
          million dollars to the extent historical costs would apply to SR  
          16.  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 Sacramento County.  However, Caltrans does not  
          typically conduct the analysis and enter into negotiations until  








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          legislative authority for relinquishment has been provided.


          Staff notes that SR 16 is defined in statute as an interregional  
          route with potentially greater significance to the state highway  
          system than other segments that are typically proposed for  
          relinquishment.  Opponents in the more rural areas east of  
          Sacramento County have raised concerns about the potential  
          impacts that the proposed development and changes to the roadway  
          would have on traffic flow coming into the Sacramento region  
          along SR 16.  While the addition of traffic control devices  
          along the corridor proposed for relinquishment and the  
          additional traffic expected as a result of the proposed  
          development will undoubtedly impact traffic flow, the  
          development will occur regardless of the relinquishment.   
          Decisions regarding the impacts that the proposed development  
          will have on traffic flow patterns are a local planning matter  
          for which input may be provided by all interested parties.  The  
          bill includes language to ensure decisions related to roadway  
          and traffic configurations are based upon sound data and  
          appropriate standards, and to encourage collaboration with  
          affected jurisdictions.  It should be noted that the eastern  
          terminus of the proposed relinquishment is at the outside border  
          of Sacramento County's future development boundary, which is  
          over 11 miles west of the Sacramento/Amador County line.




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