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
          
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          |Version: May 31, 2016           |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Mark McKenzie       |
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          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  
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          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          rescinded, existing law requires Caltrans to sell any excess  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  
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          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.


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