BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 810 (Ridley-Thomas) - State Highway Routes 1 and 187
          
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          |Version: May 28, 2015           |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: July 13, 2015     |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 810 would authorize the California Transportation  
          Commission (CTC) to relinquish specified segments of State  
          Highway Route (SR) 1 and SR 187 to the City of Los Angeles. 


          Fiscal  
          Impact:  Unknown one-time costs ranging from minor to  
          potentially over $10 million to the Department of Transportation  
          (Caltrans) prior to the relinquishment of the designated  
          segments of SR 1 and SR 187 to the City of Los Angeles (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  







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          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 810 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 the state highway system to  
          the City of Los Angeles if Caltrans and the City enter into a  
          relinquishment agreement:
                 The portion of SR 1 between the southern city limit of  
               Santa Monica (approximate postmile 33.3) and SR 105  
               (approximate postmile 25.9).
                 SR 187 between the route's western terminus at Lincoln  
               Boulevard (approximate postmile 3.5) and its eastern  
               terminus at Cadillac Avenue near SR 10 (approximate  
               postmile 8.9).  

          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.  The City of Los Angeles would be responsible  
          ensuring the continuity of traffic flow, including any traffic  
          signal progression, and for installing signs directing motorists  
          to the continuation of SR 1.

          The bill would also delete obsolete provisions related to the  
          construction of SR 187.












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          Related  
          Legislation:  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 instead be considered by the  
          Legislature as a policy bill rather than a trailer bill.
          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 the City  
          of Los Angeles County to assume direct control of the roughly  
          7.4 miles of SR 1, known locally as Lincoln Boulevard, in the  
          area between Santa Monica and SR 105, and the entirety of SR  
          187, known locally as Venice Boulevard.  Transferring control of  
          these roadways to Los Angeles 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  








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          factors such as roadway condition, projected maintenance costs,  
          and any planned capital projects.  The segments of SR 1 and SR  
          187 specified in the bill are a combined length of approximately  
          12.8 miles, so initial costs could be minimal but could exceed  
          $10 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 City of Los Angeles.  However, Caltrans does  
          not typically conduct the analysis and enter into negotiations  
          until legislative authority for relinquishment has been  
          provided.


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