BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: AB 2730 Hearing Date: 6/28/2016 ----------------------------------------------------------------- |Author: |Alejo | |----------+------------------------------------------------------| |Version: |5/31/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Manny Leon | |: | | ----------------------------------------------------------------- SUBJECT: Department of Transportation: Prunedale Bypass: County of Monterey: disposition of excess properties DIGEST: This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to various other highway projects in the State Highway 101 corridor in Monterey County, as specified. ANALYSIS: Existing law: 1)Allows the State Department of Transportation (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 California Transportation Commission (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 AB 2730 (Alejo) Page 2 of ? 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 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 State Highway Account (SHA) and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds. This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the SHA for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas. COMMENTS: 1)Purpose. The author introduced AB 2730 "to dedicate the revenues from the Prunedale Bypass right-of-way to serve their original purpose, which was to make transportation safety and congestion relief improvements in Monterey County. If this measure is signed into law, it will provide important funding for state highway improvements to the US 101 or State Route 156 corridors in Monterey County." 2)Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project intended to re-route State Highway 101 around the community of Prunedale to alleviate congestions caused by local and transient traffic. In preparation for the project and in an effort to preserve right-of-way related to the project, Caltrans purchased over 140 parcels of land totaling 353 acres. However, the Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans. Over the past several years, transportation agencies in this region have 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 AB 2730 (Alejo) Page 3 of ? Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project. This bill aims to utilize revenue from any excess property sold from the original Prunedale Bypass project to transportation improvement projects along the same corridor. Total revenue that could be generated from property sales could total anywhere from $5 million to $12 million. 3)Prior allocations. In prior years, the Legislature has taken action to retain funds in certain corridors from the sale of property from another transportation projects within the same region. Specifically, SB 791 (Corbett, Chapter 705, Statutes of 2008) authorized the use of revenues from the sale 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. It is important to note that AB 2730 provides Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. AB 2730 merely directs the proceeds from any of the Prunedale Bypass properties Caltrans does in fact sell to improvement projects within the State Highway 101 corridor. Related 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. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No AB 2730 (Alejo) Page 4 of ? Assembly Votes: Floor: 55-23 Appr: 14-3 Trans: 9-2 POSITIONS: (Communicated to the committee before noon on Wednesday, June 22, 2016.) SUPPORT: Transportation Agency for Monterey County (Sponsor) Association of Monterey Bay Area Governments City of Del Rey Oaks City of Greenfield City of Gonzales City of Marina City of Monterey City of Pacific Grove City of Salinas City of Sand City City of Seaside County of Monterey Grower-Shipper Association of Central California Monterey Bay Central Labor Council, AFL-CIO Monterey County Farm Bureau Monterey County Hospitality Association Monterey-Salinas Transit District Salinas Valley Chamber of Commerce OPPOSITION: Department of Finance -- END -- AB 2730 (Alejo) Page 5 of ?