BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2730


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          Date of Hearing:  April 18, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2730  
          (Alejo) - As Introduced February 19, 2016


          SUBJECT:  Department of Transportation:  Prunedale Bypass:   
          County of Monterey:  disposition of excess properties


          SUMMARY:  Declares properties originally purchased for the  
          Prunedale Bypass in Monterey County as excess; directs the  
          California Department of Transportation (Caltrans) to sell the  
          properties and direct the proceeds from the sale of the  
          properties to highway projects in Monterey County.   
          Specifically, this bill:


          1)Declares as excess properties that were originally acquired by  
            Caltrans for the Prunedale Bypass and no longer required by  
            Caltrans for the alternative project undertaken in place of  
            the bypass.  These alternative improvements are referred to as  
            the Prunedale Improvement project.


          2)Directs Caltrans to expeditiously dispose of these excess  
            properties.


          3)Directs proceeds from the sales of the excess properties, less  
            any reimbursements due to the federal government and all costs  
            associated with selling the properties, to be reserved in the  








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            State Highway Account (SHA) for programming and allocation by  
            the California Transportation Commission (CTC), with the  
            concurrence of the Transportation Agency for Monterey County  
            (TAMC), to other state highway projects in Monterey County.


          4)Exempts these proceeds from north/south split and county share  
            formulas.


          EXISTING LAW:  


          1)Allows Caltrans to acquire any real property that it considers  
            necessary for state highway purposes.  



          2)Allows Caltrans, whenever it determines that any real property  
            acquired by the state for highway purposes is no longer  
            necessary for those purposes, to sell or exchange it in the  
            manner and upon terms, standards, and conditions established  
            by the CTC.  



          3)Requires Caltrans, to the greatest extent possible, to offer  
            to sell or exchange excess real property within one year from  
            the date that it determines the property is excess.  



          4)Generally requires state and local agencies, prior to  
            disposing of excess lands, first to offer property for sale or  
            lease to local public agencies, housing authorities, or  
            redevelopment agencies within whose jurisdiction the property  
            is located.  Requires Caltrans to give priority first to  
            entities agreeing to use the land for low- or moderate-income  
            housing then to entities for open-space purposes, school  








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            facilities construction, enterprise zone purposes, and infill  
            opportunities, in that order.  



          5)Directs the proceeds from the sale of excess property to be  
            deposited first to the SHA and then transferred to the  
            Transportation Debt Service Fund to pay debt service on  
            general obligation transportation bonds.  



          FISCAL EFFECT:  Unknown


          COMMENTS:  The author introduced AB 2730 on behalf of TAMC.   
          TAMC is responsible for developing and maintaining a multimodal  
          transportation system in Monterey County.  TAMC is hopeful that  
          the proceeds from the sale of properties related to the  
          Prunedale Bypass can be directed to "much-needed and  
          long-deferred highway improvements."


          The Prunedale Bypass, a project to re-route State Highway 101  
          around the community of Prunedale, has been on the books since  
          the 1950s.  In an effort to preserve right-of-way related to the  
          planned project, Caltrans bought over 140 parcels totaling 353  
          acres.  The Prunedale Bypass has since been abandoned and is no  
          longer in the area's long-range plans.  


          In the meantime, the area has moved forward with incremental  
          improvements to address growing congestion and safety concerns.   
          The Prunedale Improvement Project is the most ambitious of these  
          incremental improvements.  The purpose of the project is to  
          improve safety along State Highway 101 and intersecting local  
          roadways, improve traffic flow along the corridor, and improve  
          accessibility to area homes, businesses, and services.  The  
          Prunedale Improvement Project represents only a portion of the  








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          broader improvements envisioned in the Prunedale Bypass project.


          Like the bypass project, other projects elsewhere in the state  
          have similarly languished and similarly left property unused for  
          decades.  In two of these cases, legislation was enacted to  
          facilitate the sale of the property and the return of the  
          proceeds to the corridor for which the properties were  
          originally purchased.  Specifically, SB 791 (Corbett), Chapter  
          705, Statutes of 2008, authorized the use of revenues from sales  
          of excess properties for projects in a local alternative  
          transportation improvement program that replaced the  
          long-planned Hayward Bypass on State Route (SR) 238 and  
          improvements to SR 84.  More recently, SB 416 (Liu), Chapter  
          468, Statutes of 2013, directed the revenue from the sale of  
          surplus properties in the SR 710 corridor in Los Angeles County  
          to local transportation improvements.  


          Committee comments and suggested amendments:  Although Caltrans  
          is supposed to declare unneeded properties as surplus as soon as  
          is practicable, it is reportedly holding onto the Prunedale  
          Bypass properties in anticipation that it may be able to use  
          them for future project mitigation purposes.  This bill could  
          force Caltrans to sell these properties before fully  
          understanding whether or not they may be needed for future,  
          planned improvements in the State Highway 101 corridor.


          Moreover, this bill strays some from situations addressed in SB  
          791 and SB 416 in that, in those bills, the proceeds from the  
          sale of surplus properties were directed back into the corridor  
          for which they were originally purchased.  AB 2730, on the other  
          hand, provides that the proceeds should be reserved for other  
          highway improvement projects anywhere in Monterey County.


          AB 2730 could be improved with amendments to delete the  
          requirement that Caltrans declare the properties as surplus and  








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          sell them immediately.  This will give Caltrans the opportunity  
          to fully vet the potential use of the properties and to hold on  
          to properties that it can potentially use in the foreseeable  
          future.  Furthermore, AB 2730 should direct the proceeds from  
          any of the Prunedale Bypass properties it does sell to  
          improvement projects within the State Highway 101 corridor,  
          similar to the other legislation.  This will ensure that AB 2730  
          does not set precedent beyond closing the books on these  
          decades' old projects. 


          Related legislation:  AB 2411 (Frazier), limits the use of  
          miscellaneous revenue generated by Caltrans, for example, from  
          the sale of surplus property, to transportation purposes only. 


          Previous legislation:  SB 416 (Liu), Chapter 468, Statutes of  
          2013, among other things, directed the proceeds from the sale of  
          properties in the SR 710 corridor to the SR 710 Rehabilitation  
          Account for the purpose of making required repairs to homes  
          being purchased by income-qualified residents in the corridor.


          SB 791 (Corbett) Chapter 705, Statutes of 2008, among other  
          provisions, authorized proceeds from the sale of surplus  
          property to be used to develop the local alternative  
          transportation improvements in the SR 84 and SR 238 corridors.  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Transportation Agency for Monterey County (Sponsor)









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          Association of Monterey Bay Area Governments


          City of Del Rey Oaks


          City of Greenfield


          City of Marina


          City of Pacific Grove


          City of Salinas


          City of Sand City


          City of Seaside


          County of Monterey


          Grower-Shipper Association of Central California 


          Monterey County Farm Bureau


          Monterey County Hospitality Association


          Monterey-Salinas Transit District









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          Salinas Valley Chamber of Commerce




          Opposition


          None on file




          Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093