BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 2730|
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                                   THIRD READING 


          Bill No:  AB 2730
          Author:   Alejo (D), et al.
          Amended:  5/31/16 in Assembly
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 6/28/16
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/11/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  55-23, 6/2/16 - See last page for vote

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


          SOURCE:    Transportation Agency for Monterey County

          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.  








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          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.  


          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)Requires, generally, 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  
            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  








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            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 U.S. 101 or State Route  
            (SR) 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  
            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 project 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  








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            the long-planned Hayward Bypass on 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. 




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, redirection of  
          $5 to $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. 


          SUPPORT:   (Verified  8/12/16)


          Transportation Agency for Monterey County (source)
          Association of Monterey Bay Area Governments
          City of Del Rey Oaks
          City of Gonzales
          City of Greenfield
          City of Marina
          City of Monterey
          City of Pacific Grove
          City of Salinas
          City of Sand City
          City of Seaside








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          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:   (Verified8/12/16)


          Department of Finance


          ASSEMBLY FLOOR:  55-23, 6/2/16
          AYES:  Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla,  
            Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu,  
            Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,  
            Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin,  
            Jones-Sawyer, Levine, Lopez, Low, Mathis, McCarty, Medina,  
            Mullin, Nazarian, O'Donnell, Olsen, Quirk, Ridley-Thomas,  
            Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber,  
            Williams, Wood, Rendon
          NOES:  Travis Allen, Baker, Bigelow, Brough, Chang, Chávez,  
            Dahle, Beth Gaines, Grove, Hadley, Harper, Jones, Kim, Lackey,  
            Maienschein, Mayes, Melendez, Obernolte, Patterson, Steinorth,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Gallagher, Linder

          Prepared by:Manny Leon / T. & H. / (916) 651-4121
          8/15/16 20:30:03


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