BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2730 (Alejo) - Department of Transportation: Prunedale Bypass: County of Monterey: disposition of excess properties ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 31, 2016 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 8, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2730 would reserve proceeds from the sale of any excess properties originally acquired by the Department of Transportation (Caltrans) for the Prunedale Bypass in Monterey County and require that the funds be used for other state highway projects in the State Route (SR) 101 Corridor in Monterey County. Fiscal Impact: Redirection of $5 -$12 million to projects in a specific highway corridor in Monterey County. Proceeds from the sale of excess Caltrans properties are currently used to offset General Fund payments for transportation-related debt service, so the redirection would result in a commensurate increase in General Fund costs. AB 2730 (Alejo) Page 1 of ? Background: Under existing law, whenever Caltrans determines that real property acquired for highway purposes is no longer necessary, that property may be sold or exchanged upon terms, standards, and conditions established by the California Transportation Commission (CTC). If a proposed state highway route location is rescinded, existing law requires Caltrans to sell any excess real property acquired for the rescinded route location and use the proceeds to fund the state highway project that is proposed as the alternative to the rescinded route. Proceeds from the sale of excess properties are deposited into the State Highway Account, and historically these funds have been programmed for use on other state highway projects. Existing law currently requires proceeds to be transferred to the Transportation Debt Service Fund to pay debt-service on transportation-related general obligation bonds, offsetting General Fund costs for debt service. 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. Caltrans indicates that there are currently 112 parcels totaling 304 acres that do not have a planned use. Proposed Law: SB 2730 would require the net proceeds from the sale of excess properties acquired by Caltrans for a replacement alignment for SR 101, known formerly as the Prunedale Bypass, to be reserved in the State Highway Account for programming and allocation by CTC through the State Transportation Improvement Program (STIP) for other state highway projects in the SR 101 corridor in Monterey County. These funds would be exempt from the existing "north/south split" and county share formulas that otherwise apply to STIP funding. Related AB 2730 (Alejo) Page 2 of ? Legislation: SB 791 (Corbett), Chap. 705/2008, directed proceeds from the sale of surplus properties in the SR 84 and SR 238 corridors that were originally purchased to construct the Hayward Bypass to "local alternative transportation improvement projects" within the same area, as specified. Staff Comments: Caltrans estimates the fair market value of the parcels subject to the bill's requirements could be $5 million to $12 million. Actual values would depend upon future appraisals and the sales prices realized at auction. Any administrative and appraisal costs incurred by Caltrans would be reimbursed from sales proceeds. -- END --